American International Group (AIG) reported a net loss of $4.0 billion for the fourth quarter ended December 31, 2012, compared with net income of $21.5 billion in the prior year quarter. Full year 2012 net income was $3.4 billion compared with $20.6 billion for the full year of 2011.

AIG said fourth quarter results included after-tax storm Sandy losses of $1.3 Billion and a $4.4 billion net loss on the sale of up to 90% of International Lease Finance to an investor group.

Commenting on the sale, AIG said the transaction, which is subject to required regulatory approvals, including all applicable U.S. and Chinese regulatory reviews and approvals, is expected to close in the second quarter of 2013.

AIG also said that during the fourth quarter of 2012, the U.S. Department of the Treasury completed a registered public offering of its remaining shares of AIG Common Stock for proceeds of approximately $7.6 billion, marking the full repayment of America’s financial support of AIG.

Since 2008, through asset sales and other actions by AIG, the Federal Reserve, and Treasury, the U.S. Government recovered its full $182.3 billion commitment to AIG, plus a combined positive return of $22.7 billion. Treasury continues to hold warrants to purchase approximately 2.7 million shares of AIG common stock, the sale of which is expected to provide an additional positive return to taxpayers.

To read the AIG news release click here.