According to recent reports in the New York Times and Financial Times, A.I.G. plans to list its Asian life insurance unit, American International Assurance (“A.I.A.”), on the Hong Kong stock exchange by year’s end. The IPO, which is expected to raise as much as $20 billion, would be one of the largest public stock offerings in the exchange’s history. Analysts further report that A.I.G. will likely use some of the proceeds to repay its loans from the U.S. government bailout, which resulted in the U.S. government acquiring an 80 percent stake in the company. A.I.G. obtained approval from the federal government to list A.I.A. on the Hong Kong stock exchange earlier this summer and announced its plans in May of 2009.
A.I.A. reportedly has upwards of 20 million policy holders throughout Asia. According to the New York Times report, Deutsche Bank and Morgan Stanley will be preparing the public offering.