Failed in NY, try HK

19 May 2009 By John Foley Follow @johnsfoley

The crippled US insurer wants to float the Asian business it couldn t unload earlier this year. But if rivals weren t prepared to pay $20bn for it, why should the public? Chinese investor exuberance will be a help, but that might not overcome the economic headwinds.

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American International Group said it would accelerate plans to list its Asian life insurance operations, American International Assurance Company (AIA) as an independent entity. Without giving details, AIG said it aimed to float AIA on an Asian stock market.

AIG failed to sell a stake in AIA through an auction earlier this year. It has hired Blackstone to advise on the IPO, and has sent requests for initial proposals to a number of investment banks to act as bookrunners and underwriters.

AIA consists of insurance businesses in countries including China, Hong Kong, Australia, India and Singapore. It has around $60bn of assets, 20m customers and 250,000 agents, according to an AIG statement.

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