Citigroup Inc. filed plans for an initial public offering of its Primerica Inc. life insurance unit late Thursday, and said it will sell the rest of the unit after it goes public.

Divesting Primerica is part of Citi's effort to simplify its operations and raise cash. The bank, one of the hardest hit during the credit crisis and recession, has reported huge losses in the past two years as its investments and consumer loans and credit cards soured.

Citi will sell all the Primerica shares being offered in the IPO, and receive all proceeds from the stock sale.

Primerica has about 100,000 sales representatives selling life insurance and investment products like mutual funds, mostly to middle-income households. It earned $244.7 million on $1.09 billion in revenue in the first six months of this year, down from profit of $269.1 million on $1.19 billion revenue in the first six months of 2008.

The unit has its roots in a company called A.L. Williams & Assoc., formed in 1977 to market term life insurance using independent sales representatives. The company expanded rapidly to become one of the country's largest life insurance sellers, and went public in 1982. Citi acquired the company in the late 1980s.

Citigroup received $45 billion in loans from the U.S. government, which now owns a 34 percent stake in the bank. It has also received guarantees to protect against losses on more than $300 billion in risky assets.

As part of its efforts to recover, Citigroup is selling a wide range of the assets it acquired over the years as it became one of the world's largest players in banking, insurance and financial services.

Last month, Citi sold its commodities trading unit and its Japanese brokerage. It has also sold some of its credit card assets.

In September, CEO Vikram Pandit confirmed the bank plans to eventually sell the remaining stake in its Smith Barney brokerage venture to Morgan Stanley, which owns the other half. It is also reportedly looking to sell off branches in certain parts of the country.