The US Treasury will sell nearly 164 million of the AIG shares it acquired following the US Government’s bailout of the insurer in the global financial crisis of 2008.

It expects to raise $US5 billion ($4.73 billion) from selling the shares at $US30.50 ($28.85) each in a public offering, and AIG itself will buy $US3 billion ($2.84 billion) of them.

The US Government stake in AIG has been reduced as the insurer emerges from the financial crisis. The latest sale will take its stake from 61% to 55%.

It needs to get about $US28.72 ($27.17) a share to break even on the investment.

The bailout cost $US182 billion ($172 billion) and 86% of this has now been repaid, with interest, fees and other gains added to the principal.

AIG’s shares closed at $US31.16 ($29.48) prior to the announcement.