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• AIG 53% Rate It
• HIG 100% Rate It
• MET 67% Rate It
• PRU 100% Rate It
• STT 0% Rate It

At some point this month, the U.S. government will look to unload part of its massive stake in AIG ( AIG ), one of the largest insurance companies in the world. Early estimates are that the stake will be anywhere from $7 to 30 billion in size, with most people settling on an estimated $20 billion value. The size of this sale is bigger than the market caps of many of its competitors like The Hartford ( HIG ) and is close to MetLife ( MET ) and Prudential ( PRU ).

Ou r price estimate for AIG stands at $27.49 , which is below the government's reported break even price of around $28.50. Below we look at some of the biggest drivers to AIG's value.

2 Most Important Divisions - A Snapshot

1) Property & Casualty Insurance - 47% of the company's stock value

AIG's property & casualty insurance is branded as 'Chartis' and offers a broad range of commercial and consumer insurance products and services worldwide. It is the company's most valuable business division. AIG collected $32.5 billion in premiums for property and casualty insurance in 2010 and held 7.4% market share in the highly fragmented property and casualty insurance market.

See the top forecasts for the property & casualty insurance

2) Investment of Insurance Premiums - 41% of the company's stock value

Insurance companies like AIG collect premiums from their insurance customers which they then invest to generate income and appreciation in the value of assets.  Insurance companies invest in bond markets, stock markets as well as alternative assets like real estate and mortgage-backed securities.

Insurance companies use their invested assets to pay for the insurance claims of their customers and to generate additional income that can be paid out as dividends to their shareholders. AIG's investment income is expected to increase by 4% annually which will make this division one of the most valuable for AIG.

See the top forecasts for the investment of insurance premiums

See our full analysis of AIG here

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