AIU Holdings reported the formation by American International Group, Inc. (AIG) of a special purpose vehicle (SPV) into which AIG intends to contribute the equity of AIU Holdings.
The company also reported the appointment of Kristian P. Moor as president and chief executive officer of the new company along with the the announcement of a new brand name, Chartis, for the new entity.
Chartis, headquartered in New York, includes Commercial Insurance, Foreign General Insurance, and Private Client Group operations. It has a combined statutory surplus of $32.1 billion worldwide at year-end 2008. Chartis serves more than 40 million clients in over 160 countries and jurisdictions.
AIU hopes that Chartis will be perceived as independent from the AIG name, which has been battered by problems that began with its financial products unit and resulted in a federal government bailout.
While the name will be new, the management team will be industry veterans and the employes working under the Chartis name will be those from the existing AIG/AIU Holdings units. The company said Moor will have a leadership team with an average of more than 20 years of insurance industry experience, according to the announcement.
Moor joined AIG’s National Union in 1981. He has previously served as executive vice president of AIG and president and chief executive officer of AIG Property Casualty Group, with responsibility for all of AIG’s commercial and personal lines property and casualty businesses in the U.S. and Canada.
“Chartis employees are our greatest asset and our new brand embodies their relentless pursuit of excellence through innovation and an unwavering commitment to meeting clients’ needs,” Moor said. “Today’s developments give us an even greater opportunity to build on our historic success.”
Chartis derives from the Greek word for map, which the company said underscores the company’s 90-year history as a global insurance pioneer. Its logo is a compass.
Beginning with today’s launch, the brands in the Chartis portfolio that go to market under the “AIG” and “AIU Holdings” names will begin to transition to the Chartis identity, although some might not switch right away. Chartis said it is prioritizing changes worldwide based on local considerations as well cost considerations and that a handful of its local subsidiaries might be retained as standalone brands due to local brand value. A spokesman for the company would not identify at this time which local subsidiaries might be slower to adopt the Chartis name.
AIG previously announced the SPV on April 21, 2009.
Edward Liddy, the current chairman and CEO of AIG who is stepping down, said the SPV formation is an “important milestone” in the giant insurer’s recovery effort. He said the businesses that comprise AIU Holdings “are well-capitalized with a track record of success due to their innovation, customer service, and global reach.”