AIG Repays Approximately $6.9B to United States Treasury

American International Group, Inc. AIG announced today that it had paid in full the liquidation preference and accrued return on one of the special purpose vehicles created as part of the government's assistance to AIG and made a substantial payment on the preferred interests in another SPV.

AIG's payments to the U.S. Department of the Treasury came after AIG closed Tuesday on the previously announced sale of all MetLife, Inc. equity securities AIG received when it sold American Life Insurance Company to MetLife last year. The aggregate proceeds of the sale, before expenses, were approximately $9.6 billion. Existing agreements with MetLife relating to the ALICO sale require that $3 billion of that amount to be placed into escrow as substitute collateral for the MetLife common equity units sold.

In addition, approximately $300 million previously held for costs and expenses by the ALICO SPV has been paid to the Treasury, bringing the total amount of funds paid today to the Treasury to $6.9 billion.