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.

"We won't exactly be the AIG of old, but we'll have a very secure position," Mr. Liddy said.

Selling life insurance operations is a reversal for Mr. Liddy, who previously said keeping that business was a priority. The firm has already borrowed about $61 billion on its credit line, two weeks after agreeing to the U.S. rescue that gave the government a majority stake.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.