This would save AIG about $1 billion a year. AIG now pays 3 percentage points above three-month Libor on the $60 billion credit line. The additional equity commitment would give AIG the ability to issue preferred stock to the government later, the sources said. AIG will also give the U.S. Federal Reserve ownership stakes in American Life Insurance (Alico), which generates more than half of its revenue from Japan, and Hong Kong-based life insurance group American International Assurance Co (AIA) in return for reducing its debt, they said.