AIG is struggling to sell some of its non-core assets, its boss has admitted.

The beleaguered insurer has to dispose of the companies to repay a $156bn (£102bn) loan from the US government.

Ed Liddy, chief executive of AIG, said at a Hong Kong conference: “These are difficult times to undertake divestitures.”

AIG will almost certainly sell a large part of its Asian assets, which could fetch £6.7bn. Its stake in life insurer AIA could be worth about £13bn. It could also sell its American personal lines business for £6bn.

“Given the size and complexity of our businesses, however, we recognise that an announcement on these are a couple of months or more into the future,” Liddy said.