American International Group Inc., as part of its effort to repay an $85 billion government loan, will sell its life insurance and retirement operations in the United States, Europe, Latin America, and Japan.

AIG, once the world's largest insurer, will refashion itself into a global property and casualty company with a stake in an overseas unit that sells life policies in Asia, Edward Liddy, the company's chief executive, said Friday in a conference call. AIG may also sell its plane-leasing unit, consumer finance division, U.S. auto insurer, a reinsurance business, and an asset manager, he said.

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