Insurance sector giant, American International Group (AIG) is planning to sell its remaining stake in Asian insurer AIA and conclude the partnership that spanned for concluding its long term relationship with the company.

AIG sold its remaining 13.7 per cent stake in the Asian insurer for HK$30.50 per share and was able to raise HK$50 billion or about US$6.5bn. AIG had to sell most of its stake in the Asian company after it was bailed out by the US government following the financial crisis of 2008.

The company has sold its stake as well as other assets in its attempts to raise enough money to pay back the US government. The US government had injected about $182 billion to rescue the company from collapsing during the financial crisis.

AIG found itself in financial mess as it had insured US financial institutions against complex deals through derivative contracts such as credit default swaps. The collapse of the financial markets in 2008 increased the burden on the company and forced it to seek a bailout from the government.

AIG offers insurance protection to individuals, small firms, municipalities, personal pension plans and major companies in the US market.