NEW YORK (CNN/Money) - General Electric Co. has pulled plans for an initial public offering of its property and casualty insurance business but could look to sell the unit in the future, a person familiar with the situation told CNN/Money.

Fairfield, Conn.-based GE had planned to offer a 20 percent stake in Employers Reinsurance Corp. (ERC), which insures big commercial buildings as well as taking on risks of policies issued by other insurers. An IPO of the unit had been valued at $8 billion to $10 billion, the Wall Street Journal reported in March.

The offering would have followed the strong insurance offering from Travelers Property Casualty Corp., a unit of Citigroup (C: Research, Estimates), which gained nearly 6 percent in its March market debut.

GE, a diversified manufacturer, entertainment and financial services conglomerate, had gone as far as hiring bankers and attorneys for the ERC offering but postponed such plans when the market for new issues turned sour. Earlier this week, Merck & Co. pulled plans for an IPO of its Medco prescription benefits unit, citing market conditions. St. Paul Cos. also chose to delay the IPO from Platinum Underwriters Holdings Ltd., its reinsurance unit.

The financial condition of Employers Re also didn't help. GE on Friday posted improved second-quarter results that include a $350 million charge for ERC due to prior-year loss events. The company previously took a $400 million loss in third-quarter 2001 due to insurance costs related to the Sept. 11 terrorist attack.

For the meantime, GE is committed to turning the business around but could look to sell the unit in the future, the source said. GE Chairman CEO Jeff Immelt signaled such plans in May when he spoke at an Electrical Products Group Conference. At the time, Immelt said the ERC business was turning around but he was not sure the unit was a GE business "for all-time."

GE (GE': Research, Estimates), which saw its shares gain nearly four percent Friday in afternoon trading, declined comment.