American International Group plans to spin off its Asian life insurance unit in an initial public offering to help repay billions of dollars in U.S. government loans.

Shares of American International Assurance Company, known as AIA Group, will be traded on an Asian exchange, though no information was provided about which exchange or the size of the offering. Those details will be based on market conditions and regulatory approval.

In early March, New York-based AIG said it was considering a possible spinoff or sale of AIA Group.

Earlier this month, Dow Jones Newswires said AIG was planning to raise between $5 billion to $10 billion through a sale of between one-quarter and one-third of AIA Group.

AIA Group has more than 20 million customers and $60 billion in assets.

AIG has been selling assets in recent months to help repay the U.S. government, which helped bail out the struggling insurer in September as the credit crisis mushroomed.