AIG looks to spin off Asian insurance unit

[May 18, 2009]  HONG KONG (AP) -- American International Group is planning to spin off its Asian life insurance unit in an initial public offering as the faltering U.S. company seeks to repay billions in government bailout funding.

AIG is taking steps to list American International Assurance Company -- also known as AIA Group -- on an Asian stock exchange in a move that would turn the firm into a separate entity with its own board and management team, AIG said in a statement Sunday.

Timing of the listing depends on market conditions and regulatory approval, the company said.

AIA is among the region's leading insurers with more than 20 million customers and more than $60 billion in assets.

Last week, AIG Chief Executive Ed Liddy told Congress the insurance giant is making progress toward repaying U.S. taxpayers by selling many of its foreign assets, and does not need more bailout money.

New York-based AIG has received $182.5 billion in financial support from the government since its near collapse in September threatened the stability of the global financial system and worsened the economic recession.

[Associated Press]

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