AIG on Monday announced that it had sold its Swiss-based private bank to an investor group from Abu Dhabi, its first significant disposal since it was taken over by the US government in a massive bail-out.

Aabar Investments PJSC, a quoted investment group linked to the Abu Dhabi government, said it paid SFr307m ($253m) for the private bank, and would also assume outstanding loans of up to a maximum of SFr100m.