American International Group sells stakes in AIA Group
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Insurance company American International Group (AIG) is expected to completely sell its shares of American International Assurance (AIA), Asia's third-largest insurer and previous long-term member company of AIG.
In mid-December 2012 AIG became a fully private enterprise once more, after the US Treasury sold their remaining shares in the company. The US government had acquired the company through a $182bn bailout during the financial crisis in 2008. AIG has since been looking to sell their non-core assets to repay the debt.
Hong Kong-based AIA is currently well positioned for growth in Asian markets, with shares rising more than 60 percent in value since 2010. It is thought that this rise in value reflects the struggle of investors to purchase stock amidst the low liquidity of the Hong Kong market.
In September 2012, AIG sold a portion of their AIA shares at 26.50 Hong Kong dollars apiece. Based on those share prices, AIG's remaining 13.7 stake in AIA is expected to sell for $6.7bn.
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