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Jessica Alling
December 20, 2012

Insurance giant AIG (NYSE: AIG) seems to be taking the pay-it-forward mentality to heart. Just days after the U.S. government sold its remaining shares of the previously troubled company, AIG has done the same with its Chinese counterpart, AIA Group. But as American companies expand their Chinese exposure, investors are left asking: Why would AIG divest itself of the remaining AIA shares?

Long history, short ending
The AIG-AIA relationship spans more than 90 years, with the latter's business focusing on property and casualty coverage in 16 Asian markets. When AIG required a government bailout during the financial crisis, it was forced to divest a large portion of its AIA stake to raise repayment funds. Since 2010, AIG has continued to sell its AIA shares, with this last sale bringing its profits tally to approximately $35 billionĀ .

As one of the leading P&C insurers around the globe, AIG's final sale of AIA brings up some interesting questions. Though the initial sales helped AIG repay bailout funds, this last sale was not driven by the same motives, since the government's ownership of AIG was closed out last week.

Not jumping ship
There's been a lot of uncertainty about China lately -- with rampant fraud and a slowing economy, many investors are