NU Online News Service, June 28, 12:37 p.m. EDT
Chartis, the property and casualty unit of American International Group, will revert back to the AIG name, according to internal memos at the insurer, NU has learned.
AIG had rebranded its P&C unit as Chartis in 2009, and at one time considered making Chartis a separately traded, publicly held company.
In May of this year at the UBS Global Financial Service Conference, John Q. Doyle, CEO of global-commercial business at Chartis, said there were no lingering reputation issues for the P&C business, and he said Chartis’ international operations were
“begging us to rebrand as AIG.”
Doyle added that there is “no reputational issue in our P&C business, anywhere.”
The latest news of a switch back to the AIG name would involve both Chartis’ domestic and international operations. AIG leadership has set several goals for Chartis, including a return on equity of 10-to-12 percent and a combined ratio in the 90 to 95 range by 2015.
AIG’s property and casualty business looked to distance itself from its parent corporation with the
name change to Chartis
about three years ago. The financially-troubled AIG parent became caught up in losses from investments in credit default swaps and in September 2008 received more than $180 billion in government loans and credits to avoid collapse.
Robert H. Benmosche, CEO of AIG, declared about a year ago that the corporation’s
crisis was over
and that it was independent of government support.
AIG has taken major steps to reduce the government’s stake in the company. In early June the Federal Reserve Bank of New York announced two major loan facilities that enabled AIG to avoid collapse
have been fully repaid.
Written by Phil Gusman, reporting by Chad Hemenway