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AIG ups the ante on AIA separation

First it split off its general insurance operations, and now troubled insurer AIG has announced plans to accelerate the restructure of its life insurance unit American International Assurance (AIA) through a public listing in Asia.

AIG will undertake an initial public offering (IPO) and has appointed its global financial adviser the Blackstone Group to manage the process.

The insurer intends to position AIA as an independent entity by appointing a separate management team and board.

“We believe that a public listing for AIA would be in the best interests of all stakeholders, including US taxpayers, policyholders, employees and distribution partners,” AIG Chairman and CEO Edward Liddy said.

AIA operates in 13 markets in Asia and the Pacific, including Australia and NZ. The life insurance specialist is thought to be worth more than $30 billion and the listing would allow AIG to repay a significant amount of its multi-billion dollar debt with the US Government.

AIG has also announced it will sell most of its 59% stake in US reinsurer Transatlantic Holdings through a secondary sale of stock that is expected to fetch about $US1 billion ($1.3 billion).