Giant US insurer AIG is predicting 12% growth in new premiums for its Asian operations during the third quarter of this year.

New premiums for financial services subsidiary AIA are expected to reach $US503 million ($524 million) during the three months ending August – an increase of 12%.

AIG has issued the preliminary figures as it prepares to float AIA on the Hong Kong Stock Exchange to raise up to $US15 billion ($15.6 billion). The Australian AIA business is included in the sale.

Total premium income for the Asian business is put at $US3.3 billion ($3.4 billion) for the quarter, with Thailand leading growth, up 14.2% to $US683 million ($711 million).

The company also reported strong growth for AIA’s smaller markets that include Australia and NZ, which were up 19.7% to $US452 million ($471 million).

In a statement released to the Kong Kong Stock Exchange, AIG is predicting AIA will deliver a $US2 billion ($2.08 billion) profit for the year ending November.

The float is understood to be the biggest ever to occur on the Hong Kong exchange and AIA is predicted to start trading on October 29.

It is understood AIG will retain about 50% of the stock, although under Hong Kong listing rules it would be allowed to sell up to 70% of the company.

Marketing for the float is expected to start today, and AIG will be seeking some cornerstone investors who will be allocated between 15% to 20% of the stock being offered.