AIG plans to put its 15.4 million of IPC Holdings Ltd. common shares in a public offering, subject to market conditions.

The 24 percent stake in IPC would bring in over $400 million.

?We have had a long and successful investment in IPC and remain confident in its business model and management team. Our registration request is a part of our ongoing management of our business portfolio and strategic redeployment of capital,? said Martin Sullivan, president and chief executive officer of AIG. ?IPC has a track record of disciplined underwriting since its founding in 1993. We look forward to continuing our successful business relationships with IPC, including as one of its clients.?

AIG, which is paying $1.64 billion to settle allegations of improper accounting and sales accounting, was the sponsoring shareholder of IPC in 1993 and will continue to provide IPC with investment management, administrative and other services following the sale. S. George Cubbon, president and chief executive officer of American International Company, Ltd., will remain on IPC?s board of directors.

AIG does not provide financial support to IPC, and the sale of the shares will not affect IPC?s capital structure, financial condition or policyholders, IPC said in a release. As a result, A.M. Best yesterday maintained its financial strength rating of ?A? and issuer credit ratings of ?a? for the reinsurance subsidiaries of IPC Holdings Ltd.

?Our financial condition remains healthy and our balance sheet, through our recent capital raising efforts, is strong,? said Jim Bryce, president and chief executive officer of IPC. ?We are on excellent footing to capitalise on the favourable market conditions.?

The sale is expected to give IPC more flexibility to manage its capital, including possible share repurchases. IPC?s by-laws prohibit share repurchases that would result in AIG having 25 percent ownership of common shares and, with certain exceptions, other shareholders having ten percent. Any future share repurchases are subject to approval of IPC?s board of directors although no repurchases are currently contemplated or authorised.