American International Group said it has closed the sale of its interest in reinsurer Transatlantic Holdings, Inc., reducing its holdings in the company to 14 percent and netting the New York-based insurer $1.14 billion.

A House Republican financial regulation plan, due to be unveiled tomorrow, would require congressional authorization for aid to troubled non-banks such as American International Group but would not disturb state insurance regulation.

The rating reflects the company's continued underwriting and operating profitability, solid capitalization and well-established local market presence in California.