American International Group is selling its external fund management unit to Pacific Century Group of Hong Kong for approximately $500 million.

The move is part of the insurer's efforts to repay the US government after receiving an $182.5 billion bailout package from the US Federal Reserve. According to a statement, the purchase price comprises a cash payment of $300 million on closing, plus future considerations depending on the company's performance.

This is the firm's first major sale since Robert Benmosche took over as chief executive officer in August. So far, AIG has announced the sale of around $9.3 billion worth of assets to finance its debt.

AIG has already spun off a number of assets as part of its capital-raising programme. Abu Dhabi-based Aabar Investments in April completed its acquisition of AIG Private Bank and has renamed the entity Falcon Private Bank. Aabar Investments paid SFr288 million ($253 million) for the bank and also assumed outstanding loans amounting to SFr63 million.