AIG to Remove Its Name From U.S. Auto Unit
Tuesday, November 25, 2008; D08
American International Group, the insurer bailed out by the government, will remove AIG from the name of a U.S. auto unit and cut 6.6 percent of jobs there to improve chances of finding a buyer for the operation.
In January, AIG will start calling its aigdirect.com business 21st Century Insurance, reverting to the brand of a California-based car insurer acquired last year, said Nicholas Ashooh, a spokesman for AIG. The company also will close offices in 12 cities, AIG said in an Oct. 21 letter to workers. The unit had about 5,500 employees as of September 2007.
AIG is selling businesses including auto insurance, U.S. life coverage, and a plane-leasing unit to repay the government loan that saved it from bankruptcy in September. Rebranding the auto unit will make the business more attractive to a prospective buyer, Tony DeSantis, head of AIG's personal auto group, said in a Nov. 17 letter. Ashooh confirmed the facts in the letter today in an interview.
AIG will launch new television commercials, a revamped logo and Web site on Jan. 5, according to the letter.
AIG, which has owned a stake in 21st Century since 1994, acquired the remaining 39 percent of shares for $813 million in September 2007.
-- Bloomberg News
