The federal government and beleaguered American International Group Inc. are considering a plan to split the company into at least three separate divisions, according to the Financial Times.

Citing sources close to the situation, the paper said the radical restructuring would entail the government trading its current 80% ownership in AIG for stakes in three new companies carved out of the financial services conglomerate.

According to the paper, one unit would be built around AIG’s Asian operations, a second unit would be formed from its international life insurance business and a third from its U.S. personal lines business. A possible fourth unit may be cobbled together from AIG's other businesses.

The impetus for the split is AIG's ongoing financial troubles, the paper says. Already shackled with large loans to repay, the insurer is widely expected to report fourth quarter losses of approximately $60 billion on Monday.

The company has also had a tough time raising cash by divesting itself of some of its large assets, say sources.

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