AIG kicks off sale of Asian life assurance unit-FT

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LONDON, Jan 22 - American International Group Inc <AIG.N> has kicked off the sale of its Asian life assurance unit in the hope of raising up to $20 billion to help repay a U.S. government loan, the Financial Times reported on Thursday.

 

 

The U.S. insurer sent a sales memorandum for American International Assurance to a group of selected potential bidders, the newspaper quoted "people close to the situation" as saying.

 

AIG declined comment on the report.

 

The Financial Times said AIA is regarded as a jewel in AIG's crown. It has 20 million policyholders in 13 countries and last year made an aggregate operating profit of about $2 billion.

 

Analysts estimate the sale of a minority stake could fetch up to $20 billion, it said.

 

The newspaper said AIG had sought bids for 49 percent of AIA, but would be willing to look at offers for the entire unit. AIG could also opt for a full listing of the division if it does not achieve a high enough price, the report said.

 

Prospective bidders include China Life <601628.SS>, HSBC <HSBA.L> <0005.HK>, British insurer Prudential Plc <PRU.L> and U.S. life insurer Prudential Financial Inc <PRU.N>, the report said.

 

Canada's Manulife Financial <MFC.TO> and Germany's Allianz <ALVG.DE> have also requested information, it added.

 

First-round bids are due towards the end of February, it said.

 

AIG, once the world's biggest insurer by market value, averted bankruptcy in September with an $85 billion federal government bailout. The rescue later swelled to about $152 billion.

 

AIG has said it plans to sell everything except its U.S. property and casualty business, foreign general insurance, and an ownership interest in some foreign life operations.