NEW YORK (Bloomberg) — American International Group Inc., the insurer forced to peddle businesses to repay an $85 billion government loan, is seeking to sell its US life insurance and annuities units, people familiar with the situation said.

The largest US insurer hired JPMorgan Chase & Co. to find buyers, said three people, all of whom declined to be identified because the negotiations are private. France's Axa SA, Swiss Reinsurance Co. and ING Groep NV of the Netherlands are potential bidders, one of the people said.

Selling the units would be a reversal for new chief executive officer Edward Liddy, who last month said he wanted to keep as many insurance operations as possible. AIG has already agreed to sell its 50 percent ownership of London City Airport to help raise cash.

The New York-based firm is seeking to sell assets after tapping $44.6 billion of the $85 billion federal credit line. On September 16, to stave off collapse, AIG agreed to give the government a 79.9 percent stake in the company in exchange for the loan.

Liddy, who replaced Robert Willumstad as CEO amid the US takeover, may reveal which businesses are for sale on a conference call scheduled for today. AIG spokesman Nicholas Ashooh and JPMorgan's Tasha Pelio didn't return calls seeking comment.

The division that includes the US life and annuities units may sell for $21.9 billion to $28.2 billion, Credit Suisse Group AG analyst Thomas Gallagher said.