American International Group (AIG) has repaid $US2.15 billion ($2.06 billion) to the US Government following the sale of Taiwan’s Nan Shan life group.

The US Treasury has an outstanding investment of $US51 billion ($48.8 billion) in AIG following its $US181 billion ($173.5 billion) bailout of the insurer in the global financial crisis.

Assistant Secretary for Financial Stability Tim Massad says it is another important milestone in AIG’s “remarkable turnaround”. 

“We continue to make progress in recovering the taxpayers’ investments in AIG,” he said.