Tuesday, March 24, 2009

AIG Renaming Insurance Operations (?!)

AIG, AIU, RenameThe "AIG" brand name has apparently become too tainted over the past few months to appeal to customers. So yesterday, at the AIG headquarters in New York, the sign that proudly displayed the AIG logo is now blank. (Image: MSNBC) As most of my devoted readers would know, AIG has caused quite a bit of trouble in recent weeks. Whether dishing out bonuses to no-longer-serving executives or having the pleasure of being associated with Rush Limbaugh, AIG has stayed in the news. So, what i pseudo s this-publicly-owned company going to be called?

Well, since "AIG" is so tainted, they decided to call the new company AIU Holdings, LLC. Yes, AIG's major insurance division is now called AIU: American International Underwriters. Much better; problem solved. To be clear, AIG still exists as a parent company, but the property/casualty insurance division -- that covers items such as car, business, and home insurance -- is now AIU Holdings, LLC.

Who would ever associate AIU with AIG though? AIU sounds like a very different company. Not to mention how much better it is to say AIU than AIG. Sarcasm aside (that was sarcasm), what exactly is AIG trying to accomplish? Well, actually it may be simpler than it seems. As mentioned in the MSNBC report, AIU will eventually have its own initial public offering. This means that AIU will get to sell stock to the market and receive its own cash infusion. Not too shabby.

Here's MSNBC's television report on the renaming of AIG's major division:

This is going to be an interesting week...