Tags: aig | bailout | insurer | us | treasury

AIG Repays $972M to US; Still Owes $50B

Tuesday, 01 November 2011 04:55 PM EDT

American International Group Inc., 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.

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

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.

The Treasury holds a 77 percent stake in AIG after selling about $5.8 billion of shares in May. The 2008 rescue swelled to $182.3 billion as the Treasury and Federal Reserve Bank of New York propped up the insurer after losses on mortgage-related investments.

“We continue to make steady progress toward our goal of America’s taxpayers recouping their entire investment in AIG,” Robert Benmosche, chief executive officer of the insurer, said in a separate statement.

© Copyright 2025 Bloomberg News. All rights reserved.


FinanceNews
American International Group Inc., 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. The payment was made mostly with proceeds from New York- based AIG s sale of...
aig,bailout,insurer,us,treasury
199
2011-55-01
Tuesday, 01 November 2011 04:55 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Newsmax2 Live
 
On Now:6:00a ET • FBI: Abuse of Power
Coming Up:7:00a ET • CENSORED! Losing Our First Freedoms
Get Newsmax Text Alerts

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© 2025 Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved