American International Group (AIG) is set to dispose of nearly 1.65 billion ordinary shares of AIA Group, which is expected to provide $6.4bn, and marks the US insurer's exit from the Hong Kong based underwriter.

The deal, which is subject to customary closing conditions, represents all of the remaining AIA ordinary shares owned by AIG, priced at HK$30.30 (nearly $3.91) per share.

The US underwriter said that it will invest the earnings for general corporate purposes.

The ordinary shares may not be offered or sold in the US, as these have not been and will not be registered under the Securities Act of 1933, as amended (the Securities Act).

Earlier this month, the US Treasury sold its remaining shares in AIG for $7.6bn, in a public offering, marking end of federal government ownership of the company.

AIG has been offloading all its businesses, except the US property and casualty business, foreign general insurance, and an ownership interest in some foreign life operations, to accumulate funds to pay back the government bailout of $182.3bn, it received during the 2008 financial crisis.