AIU Spin-Off Renamed Chartis

American International Group's property and casualty business gained further distance from its beleaguered parent with the creation of a special-purpose vehicle and a second brand name change–to Chartis.

The New York-based insurer formed an SPV in which to fold the equity of its first rebranding initiative–AIU Holdings LLC. The new entity will consist of AIU's commercial insurance, foreign general insurance and private client group.

Kristian P. Moor was appointed president and chief executive officer of the new company.

"The SPV formation is an important milestone in our effort to enhance the value of our industry-leading property and casualty and general insurance businesses for the benefit of all stakeholders," said AIG Chair and CEO Edward Liddy.

In a separate announcement, AIU Holdings said it is rebranding again as Chartis. The company said the SPV, the naming of Mr. Moor and the latest rebranding "advance the organization toward its goal of operating independence."

Chartis, headquartered in New York, will be a global company, serving over 40 million clients in more than 160 countries and jurisdictions. The name Chartis–from the Greek word for map–underscores its global reach, the company said.

"We are excited by this new stage in our evolution, which will sharpen appreciation for the value of one of the most experienced and extensive insurance platforms in the world," Mr. Moore said in a statement.

In rebranding from AIG and AIU Holdings to Chartis, the company said it would prioritize changes "worldwide based on local considerations as well as the most cost-effective way to optimize the business value globally."

The company added that it is evaluating "a handful" of local subsidiaries to determine if they will be rebranded as Chartis or "retained as stand-alone brands due to local brand value."

Mr. Liddy noted during a stockholders meeting in June that the SPV might become a separately traded, publicly held company.

The financially troubled AIG parent company, which became caught up in losses from investments in credit default swaps, has received around $180 billion in government loans and credits. AIG is in the process of breaking off its assets to pay back the U.S. government.

In other AIG news, the company has not paid $2.4 million in bonuses to executives after being denied approval from U.S. Treasury Department.

George Madison, nominated to be Treasury's general counsel, told a Senate panel he was advised by the department that AIG did not make any of the bonus payments scheduled to be paid on or around July 15. He went on to say that the department did not approve the payments to senior executives.

An AIG representative said the company declined to comment.