With the AIG name continuing to be dragged through the mud (whether by the media, politicians or its own executives notwithstanding), the move to separate the financial giant's successful property-casualty business from the bloodletting going on at the parent company seems like a smart move.
Our readers seem to agree. In a totally unscientific survey conducted on the AA&B Web site, 51 percent of respondents said the creation of AIU will help stabilize the business, while 26 percent said no and 23 percent voted maybe.
Our readers added the following comments:
Their P&C operations remain strong with good performance. This move should calm the market some with regard to their insurance operations.
The news media has made such a poor image of AIG that our customers will take a higher price for a product that is identical in terms, limits and coverages. I do hope that the public will soon see what the insurance industry is reading.
Most carriers think AIG's business is either stuff nobody else wants or is priced too cheap. Right now, you can have any piece of AIG business if you can just match the price and coverages. Most insureds, if they had a choice, would move to another company.
Confidence in the “brand” has been dampened.
I certainly hope it will restore customer confidence.
If they can truly legally get out from under AIG as a separate free-standing entity and not have any obligation for AIG debts, it can work.
The AIG name has an unfavorable connotation.
It depends on if they sell it and move on. If they spin and keep some control, they will fail.
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