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.

A panel on top of AIA Central, previously AIG Tower, flashes the company sign at Hong Kong's financial Central district February 12, 2010. REUTERS/Bobby Yip

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

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