'AIG Asia unit listing to raise up to $20 bn'

Troubled insurance giant American International Group (AIG) is in advance stages to list its Asian life insurance unit on the Hong Kong stock exchange next year, in a move to raise up to $20 billion, says a media report.

AIG is in advanced preparations for a listing of American International Assurance (AIA), in an attempt raise billions of dollars that would be used to start repaying the more than $80 billion that the company owes the US government, the Financial Times reported. The daily said that listing of AIA is expected to raise $10-20 billion.

The planned listing of AIA may help AIG to repay the debts it owes to the US government. Attributing to people familiar with the matter, the report said it expect AIA to file a draft prospectus with stock exchange authorities before the Christmas triggering a formal three-month process that would set the path for a listing in the second quarter of 2010.

“AIA and its advisers are working round the clock to submit the filing before Christmas,” the report, citing one person familiar with the matter, said, adding “Nobody involved wants this to hang around for much longer.”

AIG Chief Executive Officer Robert Benmosche said earlier this week that the listing of AIA was one of his top priorities. He said he expected the Asian division to be listed by the end of 2010.