American International Group has filed for an initial public offering (IPO) for its life & retirement business in the US as part of its strategy to streamline operations.

The insurance giant has also decided to rebrand the life & retirement business, known as SAFG, as Corebridge Financial, after it goes public.

AIG chairman and CEO Peter Zaffino said: “Today’s announcement represents continued progress as we prepare our Life & Retirement business to be a standalone company.”

The IPO could value the business, which may have $410bn in assets under management, at more than $20bn, the Financial Times reported.

The business comprises four operating parts – Individual Retirement, Group Retirement, Life Insurance and Institutional Markets.

The IPO filing indicated the business had total equity of $28.9bn as of the end of 2021, however, the size and price of share sale are yet to be finalised.

In 2021, the business posted net income of $7.4bn and generated revenue of $23bn, compared with net income of $642m and revenue of $15bn a year ago, according to the filing.

AIG noted that it intends to own over 50% stake in Corebridge Financial even after the listing.

The company first revealed plans to divest part of its life & retirement business through IPO in October 2020.

Recently, the insurer agreed to divest a 9.9% equity stake in the business in $2.2bn cash deal to private equity firm Blackstone.