AIA to be seperated from AIG

Once separated the United States Federal Reserve will have a stake in the business, however it is planned that AIA will be sold, possibly through an initial public offering (IPO) of shares to investors.

Money used from the sale will be used by AIG to repay loans to the US government.

"The ultimate success of our restructuring plan centres on ensuring that the unique businesses that make up AIG can thrive on their own," AIG chairman and chief executive Edward Liddy said in a statement.

"While this process may take up to several years to complete, we will ultimately create stronger, sounder businesses worthy of investor, customer, and regulatory confidence."