AIG to Keep Broker/Dealer Unit

In one of his first decisions at the helm of American International Group Inc., new Chief Executive Officer Robert Benmosche has decided to keep an investment advisory unit that was slated to be sold under the company's restructuring plan, a company spokeswoman confirmed.

Benmosche has decided the company should keep the independent broker/dealer business that was formerly known as AIG Financial Advisors, the spokeswoman said. The broker/dealer has been renamed Sagepoint Financial Inc. (BestWire, Jan. 12, 2009).

AIG has been rebranding its business to distance it from the AIG name, which is now seen by some to be tarnished after AIG almost slipped into bankruptcy in September, and has been kept solvent by a federal rescue that now totals up to $182.5 billion in loans and other aid (BestWire, Aug. 4, 2009).

AIG had put the Sagepoint Financial business up for sale, but no transaction ever came to fruition.

Benmosche took office Aug. 10, succeeding Edward Liddy, former chief executive of AIG. Liddy, also the former head of Allstate Corp., came out of retirement to take over the insurance giant in September 2008 after the federal bailout.

Most AIG insurance companies currently have a Best's Financial Strength Rating of A (Excellent) with a negative outlook.

Shares of AIG were $26.64 in afternoon trading on Aug. 19, up 8.51% from the previous close.