AIG goes to Spin Off Key Units

American International Group said yesterday that it will accelerate the divorce of its global property and casualty insurance businesses from the parent company as part of an effort to restructure itself and rebrand its more profitable divisions.

Last month, AIG announced the creation of AIU Holdings as a holding company for some of AIG's most successful insurance operations. When fully formed, officials said, the new company would employee 44,000 people and serve 40 million customers in 130 countries.

Now, AIG says it will speed up its strategy to make AIU Holdings an independent entity with its own board of directors, management team and brand name. In a news release yesterday, the company said it would transfer AIU Holdings into a special purpose vehicle, or SPV, in order to accelerate the sale of a minority stake in the operation, which eventually could include public offerings.

In addition, AIG will buy parts of the AIU business, including stakes in an aircraft leasing operation, a reinsurer and mortgage guarantor. The move is part of a larger effort designed to help repay the government's investment. The most recent federal rescue of AIG, unveiled in March, involves a combination of cash investments, debt relief and guarantees from the Treasury Department and Federal Reserve. The total commitment stands at about $180 billion.