As it became known Monday, AIG named former Prudential plc chief executive and experienced Asia hand Mark Tucker, as the head of its Asian life insurance business, AIA. AIG will now push ahead with an AIA (initial public offering) IPO, which bankers have said could raise about $15 billion.

Unexpected removal of AIA CEO Mark Wilson shows AIG CEO Robert Benmosche is stamping his authority on the bailed-out US insurer and follows a boardroom battle at AIG that culminated in its chairman Harvey Golub quitting last week.

Benmosche and Golub were at loggerheads over the future of AIA and that acrimony intensified after British insurer Prudential's $35.5 billion bid for AIA collapsed last month.

American International Group is looking to sell down a stake in its crown jewel to repay US taxpayers after receiving a $182.3 billion bailout package.

The appointment of Tucker could arouse talk that he may now look into bidding for Prudential, or its Asian operations.

Tucker's new role also quashes speculation that he may be brought in to replace Prudential chairman Harvey McGrath, who has faced calls to quit from some shareholders in the wake of the failed AIA bid, which cost Prudential 450 million (or $688 million) in fees.