American International Group Inc filed an application with the Hong Kong Stock Exchange to list its Asian life insurance unit, AIA Group Ltd, a source familiar with the matter told Reuters on Thursday.

The application brings bailed-out AIG a step closer to AIA's initial public offering, which is expected to raise about $15 billion. The move is also a key part of AIG's restructuring.

The Hong Kong Exchange will review the application, also known as the A1 filing, in the coming weeks, though the source was not aware of any firm dates for the review.

AIG, which is nearly 80 per cent owned by the US government, is disposing of assets to repay taxpayers who committed $182.3 billion to prop up the insurer during the financial crisis.

The AIA IPO, which sources have said AIG is aiming to do by November, comes after AIG tried to unsuccessfully sell the business earlier this year to Britain's Prudential Plc for $35.5 billion.

An AIA spokeswoman declined to comment, while Hong Kong Exchange officials could not be reached for comment outside business hours.

AIG's shares were up 0.6 per cent at $35.88 in morning trading on the NYSE.

AIG Taiwan unit
The buyers of AIG's Taiwan unit will be constructive as they seek to pursue the $2.2 billion bid even after Taiwan's regulators rejected it, a top executive said on Thursday.

Robert Morse, CEO of Hong Kong investment firm Primus Financial, which partnered China Strategic in the bid, said the buyers were still considering an appeal over the rejection, and called the bid a "great opportunity" for the unit, Nan Shan.

Taiwan said on Tuesday AIG's plan to sell Nan Shan to battery maker China Strategic and Primus did not meet criteria on experience in the insurance business and ability to raise funds.