AIG, which has significant operations in Connecticut, is poised to absorb up to $5 billion in losses for a dozen insurance units, according to a Bloomberg News report.

The losses came after the insurance units' securities-lending accounts suffered $13 billion worth of writedowns related to the subprime mortgage collapse, Bloomberg said.

The $5 billion commitment is up from a previous commitment of $500 million, according to Christopher Swift, AIG's vice president for life and retirement services.