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Created March 17, 2010 19:32
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<p>NEW YORK (Reuters) - American International Group&#xD;
Inc plans to spin off up to 20 percent of its&#xD;
property-casualty business in an initial public offering, said&#xD;
a source with direct knowledge of developments Sunday.</p>
<p>The plans also include renaming the property-casualty&#xD;
business to differentiate it from AIG, and it will be given its&#xD;
own board of directors, said the source.</p>
<p>More of that business could eventually be spun off to&#xD;
public investors, but 80 percent will be held by AIG's current&#xD;
investors from the outset, the source said.</p>
<p>AIG is also giving the U.S. government a preferred interest&#xD;
in its life operations Alico and American International&#xD;
Assurance, both of which are large players in Asia. The&#xD;
government's interest in these businesses will likely carry a 5&#xD;
percent cumulative dividend, said the source.</p>
<p>Those businesses could still be sold to external buyers,&#xD;
with some bids having already been received, said the person.</p>
<p>(Reporting by Lilla Zuill and Paritosh Bansal; Editing by&#xD;
Bernard Orr)</p>
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