NEW YORK—American International Group Inc. reportedly has held talks with potential investors to sell part of American International Assurance Co.

AIG contacted several financial investors about selling its stake in its Asian life insurance business, including Temasek Holdings Ltd., China Investment Corp. and Abu Dhabi Investment Authority, which all expressed interest in buying stakes in AIA, according to the Financial Times.

Word of AIG’s interest in selling its interest in Hong Kong-based AIA came just before the life insurer’s planned initial public offering, which was expected to take place before the fourth quarter.

The newspaper reported that AIG may put as much as 30% of AIA with institutional investors and “wealthy tycoons” instead of offering them minor stakes in an IPO. An AIA IPO was estimated to raise about $15 billion, according to reports, which could help New York-based AIG repay its federal bailout loan.

British insurer Prudential P.L.C. previously bid $35.5 billion for AIA, but its shareholders rejected that price and AIG rejected a lower offer.