(Reuters) – Bailed-out insurer American International Group Inc will sell its shares in Asian insurer AIA Group Ltd after a lock-up period expires in early September, Chief Executive Bob Benmosche said on Wednesday.
Benmosche said the shares “will be liquidated after Sept. 4,” according to a transcript of AIG‘s annual shareholder meeting on its website. He said the sale would help decrease volatility in AIG‘s earnings.
AIG spun off two-thirds of AIA in 2010 as part of a package of asset sales to repay its $182 billion U.S. government rescue. Fluctuations in AIA’s share price have caused large swings in AIG‘s earnings since then, with quarterly gains or losses of more than $1 billion commonplace.
Since that sale, which included the lock-up provision, AIA shares have fallen 2.8 percent. At current levels the remaining stake is worth $7.6 billion.