American International Group (AIG) Chairman and Chief Executive Edward Liddy said Friday that AIG policy holders are “secure.”

AIG’s insurance businesses are “strong and well capitalized,” said Liddy during a conference call to provide investors and Wall Street with an update on its turnaround in the wake of an $85 billion loan from the Federal Reserve.

Liddy, who said AIG has a $61 billion balance on the $85 billion loan, told analysts and investors that the company will retain its U.S. property and casualty operations, its foreign general insurance business and ownership interest in foreign life insurance. In the case of its foreign life insurance business, Liddy said AIG wants to keep its majority interest in AIA, which is one of those units.

AIG plans to sell all of its other assets, including its financial products and securities lending businesses. The asset sales come amid a credit crunch that could prevent buyers from stepping into the fray. Nevertheless, Liddy said AIG is selling businesses that are “highly attractive” to buyers and that he wouldn’t be surprised to see non traditional buyers, potentially including sovereign wealth funds.

If AIG is able to monetize the value of assets in financial products and services lending businesses, the New York insurer may sell fewer assets, said Liddy. AIG will emerge as a “smaller and more nimble” company with long term growth prospects, said the executive.

While the $85 billion loan to AIG was characterized as a lifeline by Liddy, he did say the facility is a “very positive vote of confidence” in the company. “This will be a formable company that emerges from this,” said Liddy. AIG will emerge with a capital structure that is “fit to fight,” he said.