NEW YORK (

TheStreet

) --

AIG

(AIG) - Get Report

could soon begin the process to list its Asian life assurance unit in Hong Kong, a report says.

AIG is expected to file a draft prospectus for a listing of

American International Assurance

before Christmas, the

Financial Times

reports, beginning a three-month process that would mean the unit could be listed by the second quarter of 2010.

The initial public offering of AIA is forecast to raise between $10 billion to $20 billion and would be one of the world's largest IPOs, the

Financial Times

reports.

The listing could help AIG start to repay the more than $80 billion that it owes the U.S. government, which owns 80% of the insurance company.

AIA has 20 million policyholders in 13 countries and recorded an aggregate operating profit of about $2 billion last year, according to the newspaper.

AIG appointed

Deutsche Bank

(DB) - Get Report

and

Morgan Stanley

(MS) - Get Report

in June as joint global coordinators of the deal, which is expected to generate hundreds of millions of dollars in fees.

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-- Reported by Joseph Woelfel in New York.

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