American International Group has chosen Hong Kong for Asian life insurance unit AIA Group Ltd's planned listing, in a move that could fetch as much as $10 billion, the Wall Street Journal reports.

In a statement issued on 3 November, chief executive Bob Benmosche reportedly said that preparations for the initial public offering are under way, the proceeds from which will be used to repay its bailout debt with the US government.

"AIA's roosts are in Asia, and a listing in Hong Kong is a natural choice," Mr Benmosche was quoted to have said.

It can be recalled that AIG had announced a listing for AIA in May this year, but the plan had then been put on hold. There remains no definite date for the latest decision, the news service said, although AIA Group CEO and president Mark Wilson reportedly noted that the schedule would depend on regulatory approvals and market conditions.

AIG had already placed both American Life Insurance Co and AIA under special purpose vehicles Tuesday to prepare.