AIG kicks off sale of Asian life assurance unit-FT

LONDON, Jan 22 (Reuters) - American International Group Inc (AIG.N) has kicked off the sale of its Asian life assurance unit in the hope of raising up to $20 billion to help repay a U.S. government loan, the Financial Times reported on Thursday.

The U.S. insurer sent a sales memorandum for American International Assurance (AIA) to a group of selected potential bidders, the newspaper quoted "people close to the situation" as saying.

AIG declined comment on the report.

The Financial Times said AIA is regarded as a jewel in AIG's crown. It has 20 million policyholders in 13 countries and last year made an aggregate operating profit of about $2 billion.

Analysts estimate the sale of a minority stake could fetch up to $20 billion, it said.

The newspaper said AIG had sought bids for 49 percent of AIA, but would be willing to look at offers for the entire unit. AIG could also opt for a full listing of the division if it does not achieve a high enough price, the report said.

Prospective bidders include China Life (601628.SS), HSBC (HSBA.L) (0005.HK), British insurer Prudential Plc (PRU.L) and U.S. life insurer Prudential Financial Inc (PRU.N), the report said.

Canada's Manulife Financial (MFC.TO) and Germany's Allianz (ALVG.DE) have also requested information, it added.

First-round bids are due towards the end of February, it said.