Tuesday, November 1, 2011

AIG Repays $972 Million to U.S. Treasury

American International Group Inc. (AIG), the bailed-out insurer, repaid an additional $972 million to the government, reducing its obligation to the U.S. Treasury Department to about $50 billion accordomg to Bloomberg.

The payment was made mostly with proceeds from New York- based AIG’s sale of American Life Insurance Co. to MetLife Inc. (MET) for about $16 billion last year, the Treasury said in an e- mailed statement today.

AIG was required to hold about $3 billion of the sale proceeds in escrow in case funds were needed to reimburse MetLife for Alico liabilities that emerge from taxes, Japan real estate bets and savings products offered to some European customers. The amount required to be held in escrow declines to zero in April 2013, AIG has said in a regulatory filing....

Read more at http://www.bloomberg.com/news/2011-11-01/aig-repays-972-million-to-u-s-treasury-using-proceeds-from-alico-sale.html

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