NEW YORK, March 1 (Reuters) - American International Group Inc (AIG.N) plans to spin off up to 20 percent of its property-casualty business in an initial public offering, said a source with direct knowledge of developments on Sunday.
The plans also include renaming the property-casualty business to differentiate it from AIG, and it will be given its own board of directors, said the source.
More of that business could eventually be spun off to public investors, but 80 percent will be held by AIG's current investors from the outset, the source said.
AIG is also giving the U.S. government a preferred interest in its life operations Alico and American International Assurance, both of which are large players in Asia. The government's interest in these businesses will likely carry a 5 percent cumulative dividend, said the source.
Those businesses could still be sold to external buyers, with some bids having already been received, said the person.
Reporting by Lilla Zuill and Paritosh Bansal; Editing by Bernard Orr