(Reuters) - Insurer American International Group, or AIG, is looking to move into residential property loans with plans to make what company representatives called direct investments in mortgages, the Financial Times reported Sunday.

The newspaper's website reported that AIG's Chief Investment Officer Doug Dachille has told investors that increasing AIG's allocation to residential mortgages was one of his "key initiatives."

AIG currently has less than $4 billion invested in residential mortgages, according to the FT, which represents less than 1 percent of its $515 billion balance sheet.

(Reporting by Dion Rabouin; Editing by Alan Crosby)