AIG has sold its Papua New Guinea operations in a management buyout.

PNG CEO Bruce Avenell bought the business, which will be renamed Alpha Insurance.

insuranceNEWS.com.au understands the PNG operation has been a marginal business for the giant American insurer for some years.

Earlier this month AIG sold its businesses in El Salvador, Guatemala, Honduras and Panama.

Head of Country Operations in Australasia Noel Condon says AIG will “continue to maintain our relationships with multinational clients in PNG through Alpha Insurance”.

“This agreement means our customers retain full policy and claims support under the leadership of Mr Avenell and his team,” he said.