AIG Raises Nearly $37 Billion to Repay Government

American International Group, Inc. AIG announced today that it has raised nearly $37 billion to repay the United States government through its sale of one insurance subsidiary, American Life Insurance Company (ALICO), and the initial public offering of a second, AIA Group Limited (AIA). AIG closed today the sale of ALICO to MetLife, Inc. (MetLife) for approximately $16.2 billion, including approximately $7.2 billion in cash and the remainder in MetLife securities. The $7.2 billion cash portion of the consideration includes an upward purchase price adjustment of approximately $400 million pursuant to the terms of the purchase agreement between MetLife and AIG. On October 22 and 29, respectively, AIG disclosed in regulatory filings that the gross proceeds from the initial public offer of AIA were $17.8 billion and the exercise of the over-allotment option for this offering increased the gross proceeds to $20.51 billion. Together, the AIA and ALICO transactions raised approximately $36.71 billion, $27.71 billion of which was in cash proceeds.