AIG meets Asian investors over $15bn AIA flotation

AIG has started talks with potential investors to sell stakes in AIA ahead of its planned flotation of the Asian life insurance business.

The bailed out US insurer, having failed to offload the American International Assurance operation to Prudential, is looking to sell it on to the Hong Kong stock market.

It emerged today that sovereign wealth funds, including Singapore-based Temasek, China Investment Corp and Abu Dhabi Investment Authority have expressed interest in buying cornerstone stakes in AIA.

AIG may place as much as 30% of AIA with institutional investors and wealthy tycoons rather than offer them minor stakes in a flotation, according to the Financial Times.

It is aiming to list AIA on the Hong Kong stock exchange by the fourth quarter and the IPO is expected to raise about $15 billion.

"Some preliminary talks have taken place in response to interest from some investors," one source said of the private discussions.

AIG is set to name Citigroup, Deutsche Bank, Goldman Sachs and Morgan Stanley as the joint global coordinators for the float.

Temasek declined to comment, while other institutions could not be reached immediately.

Chinese insurance companies and some of that country's largest banks are also looking at taking stakes and financing others, the FT said.

AIG spokeswoman Christina Pretto declined to comment.

A float of AIA could raise about $15 billion, and help AIG pay down sums owed to the US government.