(Bloomberg) -- American International Group Inc. is seeking asmuch as $507 million through the sale of part of its holding inPICC Property & Casualty Co., China’s biggest non-lifeinsurer.

AIG, the largest commercial insurer in the U.S., is offeringabout 254 million shares of PICC at HK$15 ($1.93) to HK$15.48apiece, according to terms obtained by Bloomberg. The price rangerepresents a 2% to 5.1% discount to PICC’s closing price ofHK$15.80 in Hong Kong on Monday.

Foreign investors have been selling holdings in Chinese insurersas their shares surged on rising investment returns. Singapore’sstate investment company, Temasek Holdings Pte, cut its stake inPing An Insurance Group Co. in December.

AIG, which has shrunk by half since its U.S. bailout in 2008through asset sales, is seeking to generate funds to buy back morethan $1 billion of its bonds and continue repurchasing stock.

Last month, Chief Executive Officer Peter Hancock said theinsurer wouldn’t be rushed into selling international holdings suchas its stake in plane-lessor AerCap Holdings NV. AIG raised a totalof about $35 billion when it finished exiting Hong Kong-based AIAGroup Ltd. in 2012.

PICC shares have surged 55% in the past year, outpacing the 12%gain in the benchmark Hang Seng Index. AIG held about 1.47 billionshares of PICC before the sale, or 31.9% of the company, accordingto data compiled by Bloomberg.

Goldman Sachs Group Inc. is among banks arranging the sale, theterms show.

--With assistance from Doni Bloomfield and Sonali Basak inNew York.

Copyright 2018 Bloomberg. All rightsreserved. This material may not be published, broadcast, rewritten,or redistributed.