American International Group (AIG) has repaid $6.9bn of its bailout to the US Department of the Treasury, using the proceeds from the sale of its stake in MetLife.
The repayment includes $300m, which was previously held by AIG for costs and expenses for the sale of ALICO to MetLife.
The aggregate proceeds of the sale, before expenses, were approximately $9.6bn.
AIG said that the remaining $3bn of proceeds from the sale of the MetLife equity units were placed in an indemnity escrow to secure obligations that may be owed to MetLife, as previously agreed to under the terms of the ALICO sale.
Following this repayment, US Treasury still holds about $11.3bn in preferred interests in AIG.
AIG president and CEO Robert Benmosche said that AIG will continue to take all the right steps to ensure that America’s taxpayers recoup in full their investment in AIG.
The US Treasury said that the $6.9bn repayment from AIG brings total troubled Asset Relief Program (TARP) repayments and income to $287bn- 70% of the $411bn that has been disbursed to date for TARP program.
Treasury added that based on current market prices, it estimates that taxpayers will ultimately recover every dollar that the US government invested in AIG.