NU Online News Service, March  9, 9:33 p.m.EST

American International Group Inc. (AIG) said it repaid nearly $7billion to the Department of the Treasury, using money raised fromthe sale of its equity stake in MetLife Inc.earlier this month.

AIG sold American Life Insurance Company (ALICO) toMetLife last year for $16.8 billion before expenses. AIGsaid it made an aggregate of $9.6 billion before expenses from itssale of equity securities in MetLife.

AIG said $3 billion of the proceeds was placed in escrow. Thebailed-out insurer said it added $300,000 from an earliertransaction involving MetLife to come up with $6.9 billion to giveTreasury, which has loaned AIG about $68 billion through theTroubled Asset Relief Program (TARP).

A statement from the Treasury said taxpayers have recovered 70percent of TARP disbursements with the latest payment from AIG.

Tim Massad, acting assistant secretary for financial stability,said Treasury expects its investments in private companies toresult in "little to no cost to taxpayers."

TARP has received back $287 billion of the $411 billion loanedout to AIG, banks, the auto industry and others at the height ofthe financial crisis.

Treasury said its remaining preferred equity interest in AIG is$11.3 billion after the $6.9 billion repayment.

"Based on current market prices, Treasury estimates thattaxpayers will ultimately recover every dollar that the U.S.government invested in AIG," the Treasury statement said.

In 2011, AIG said it has paid back about $36 billion of its 2008bailout, when more than $180 billion of taxpayer money was madeavailable to the insurer to avoid collapse.

Upon the closing of its recapitalization plan with Treasury,AIG paid back $20.7 billion in direct debt to the Federal ReserveBank of New York (FRBNY). The insurer returned $6.1 billion torepay a portion of interest in a portion of a special purposevehicle holding ALICO and gave Treasury $2.2 billion in February tofurther reduce the SPV balances.