According to a report by the Congressional Oversight Panel, AIG is considering holding an initial public offering (IPO) in Hong Kong for the Asian-based business.
"Treasury officials have indicated to the panel that they believe that AIG will be able to realize value equivalent to the $35.5 billion negotiated sale price through an alternate strategy, perhaps involving an IPO," it was said.
Andrew Williams, a spokesman for the Treasury, confirmed to Bloomberg that AIG's investment bankers believe that AIA would be valued at between $32 and $36 billion should an IPO take place.
Earlier this week, shareholders with Prudential criticized the company for their handling of the takeover bid, which cost the firm Â£450 million ($651 million) in wasted fees.
By Asim Shah