AIG plans public offering of life insurance unit

Despite rumors it may be for sale, American International Group announced it is accelerating steps to position its American Life Insurance Co. as an independent entity, seeking an initial public offering and public listing.

In March, the insurer said it would spin off ALICO, with its board of directors and management team separate from the one at AIG.

In a statement, AIG Chairman and CEO Edward Liddy noted that the separation of ALICO from the parent insurer could help the company repay billions it has received in federal loans and investments resulting from the company’s failing operation.

“We continue to consider all strategic options through a robust, structured and disciplined process,” Liddy said. “At this stage, we expect that a public offering for ALICO will be beneficial to all stakeholders, including U.S. taxpayers, policyholders, employees and distribution partners.”

AIG’s announcement comes amidst published reports that the insurer is continuing talks with MetLife regarding the sale of the life insurance unit. New York-based MetLife, recently announced plans to realign its institutional and individual businesses, as well as its Auto & Home unit, under one organization.

ALICO operates in 45 countries with 19 million customers, with more than 40,000 agents and distribution partners and assets under management of more than $89 billion, according to AIG.

“[This] announcement represents a roadmap for our independence,” Rodney O. Martin Jr., chairman and CEO of ALICO, said. “Our ability to weather current economic conditions across all of our markets demonstrates the strength of our operations, diversification of our platform, confidence of our customers and support of our distribution partners.”