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

AIG sold American Life Insurance Company (ALICO) to MetLife last year for $16.8 billion, before expenses. AIG said it made an aggregate of $9.6 billion before expenses from its sale of equity securities in MetLife.

AIG said $3 billion of the proceeds was placed in escrow. The bailed-out insurer said it added $300,000 from an earlier transaction involving MetLife to come up with $6.9 billion to give Treasury, which has loaned AIG about $68 billion through the Troubled Asset Relief Program (TARP).

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