American International Group is to sell AIG Private Bank to Aabar Investments PJSC, a global investment company based in Abu Dhabi.

AIG Private Bank, which will be renamed and headquartered in Switzerland, will operate out of branches and representative offices in Hong Kong, Shanghai, Singapore and Dubai. It will continue to focus on providing wealth management services to high net worth individuals in Switzerland, Western and Eastern Europe, Asia and the Middle East.

Aabar Investments is a global investment company listed on the Abu Dhabi Securities Exchange whose mandate is to invest across industry sectors with significant long-term growth potential.

"We have looked very thoroughly at AIG Private Bank and are impressed by the professionalism and dedication of the management team and staff. This transaction represents a great opportunity to leverage AIG Private Bank’s expertise in wealth management and to further develop it in our region. AIG Private Bank provides us with a platform with the potential for significant long-term growth and value creation,”  said HE Khadem Al Qubaisi, chairman of Aabar and future designated chairman of the bank in a statement.

Eduardo Leemann, chief executive and his senior management team will remain with the bank. He said that the acquisition gives the bank new opportunities to expand its operations, especially in the Middle East.

AIG was saved from collapse in September by accepting an $85 billion federal loan. The US government has acquired a majority stake in AIG in what is effectively a debt-for-equity swap.

Investors in AIG Life bonds have formed a victims action group to take legal action against the company after it froze redemptions.