A.I.G. Said to Plan Hong Kong Listing for Asian Life Insurance Unit

SHANGHAI — American International Group, the troubled insurance giant, has decided to submit plans later this month to raise billions of dollars next year by listing its Asian life insurance unit on the Hong Kong stock exchange, people briefed on the plans said Thursday.

The planned listing of American International Assurance is expected to help A.I.G. repay some of the huge debts it owes the United States government, which took an 80 percent stake in the company following a series of massive bailouts this year.

Analysts say the Hong Kong listing could raise as much as $20 billion, which would make it one of the largest public stock offerings in history.

The decision to submit a plan this month for a public listing was first reported in the Financial Times on Thursday.

A.I.A., which has more than 20 million policy holders in dozens of countries throughout Asia, is considered one of the bright spots in A.I.G.’s troubled portfolio.

This week, A.I.G. agreed to give a stake in the Asian unit to the New York Federal Reserve in exchange for forgiving a $16 billion loan that was threatening to damage A.I.G.’s credit rating.

Earlier this year, A.I.G. tried to auction off its Asian assets, but later scrapped the idea in favor of a public stock offering.

Deutsche Bank and Morgan Stanley have been selected to prepare the public offering, according to people familiar with the deal.