People close to the situation said that AIG had begun contacting potential bidders for American International Assurance (AIA), after receiving expressions of interest from around 40 companies, private equity groups and sovereign wealth funds.
They said that the preferred option would be to sell a minority stake in AIA for around $20bn but added that, given AIG's troubled situation and the frozen credit markets, a full sale or even a listing could not be ruled out.
Among the companies that could be interested in buying parts or the whole of AIA, which has been one of AIG's cornerstones for over a century, are the UK insurer Prudential and Chinese and European rivals.