AIG has grossed about $US452 million ($492.3 million) from a further sell-down of its stake in reinsurer Transatlantic Holdings.

The sale of the 8.47 million shares, 2 million of which were bought back by Transatlantic, leaves AIG with a shareholding of 725,969 or 1.1%.

AIG held a 59% stake until June last year when it sold 29.9 million shares for $US1.14 billion ($1.24 billion) as part of ongoing efforts to pay back American taxpayers for a 2008 bailout package worth up to $US180 billion ($196 billion).

The underwriters for the offering, Goldman, Sachs & Co, Wells Fargo Securities and BofA Merrill Lynch now have a 30-day option to buy the insurer’s remaining shares in Transatlantic.