May 16, 2012 / 3:53 PM / in 6 years

AIG to sell AIA shares after lock-up ends in September

(Reuters) - Bailed-out insurer American International Group Inc (AIG.N) will sell its shares in Asian insurer AIA Group Ltd (1299.HK) after a lock-up period expires in early September, Chief Executive Bob Benmosche said on Wednesday.

Benmosche said the shares “will be liquidated after September 4,” according to a transcript of AIG’s annual shareholder meeting on its website. He said the sale would help decrease volatility in AIG’s earnings.

    AIG spun off two-thirds of AIA in 2010 as part of a package of asset sales to repay its $182 billion U.S. government rescue. Fluctuations in AIA’s share price have caused large swings in AIG’s earnings since then, with quarterly gains or losses of more than $1 billion commonplace.

    AIG sold part of the stake in March, raising around $6 billion and leaving it with 18.6 percent of AIA, one of Asia’s three largest insurers.

    Since that sale, which included the lock-up provision, AIA shares have fallen 2.8 percent. At current levels the remaining stake is worth $7.6 billion.

    Reporting By Ben Berkowitz; Editing by Gerald E. McCormick and John Wallace

    0 : 0
    • narrow-browser-and-phone
    • medium-browser-and-portrait-tablet
    • landscape-tablet
    • medium-wide-browser
    • wide-browser-and-larger
    • medium-browser-and-landscape-tablet
    • medium-wide-browser-and-larger
    • above-phone
    • portrait-tablet-and-above
    • above-portrait-tablet
    • landscape-tablet-and-above
    • landscape-tablet-and-medium-wide-browser
    • portrait-tablet-and-below
    • landscape-tablet-and-below