AIG Property/Casualty Unit, AIU Holdings, Names CFO

AIU Holdings Inc. has named Robert S. Schimek chief financial officer, the company said.

AIU Holdings said in a statement that Schimek, who joined American International Group Inc.?s commercial insurance unit in 2005, will ?assume a central role in the positioning of the company for the sale of a minority stake in the business, including a potential public offering of shares.?

AIU Holdings Inc. is a holding company created by AIG to contain its Commercial Insurance, Foreign General Insurance, and Private Client Group units. AIG is expediting plans to establish AIU Holdings as an independent entity by transferring AIU's equity to a special purpose vehicle under an agreement with the Federal Reserve Bank of New York, in preparation for the potential sale of a minority stake in the business and possible public offering of shares.

A federal rescue program, which has grown to up to $182.5 billion in loans and other assistance, has kept AIG solvent since September 2008, while it seeks to reorganize and sell assets to repay the federal aid (BestWire, April 21, 2009).

AIG this week said it entered into an agreement with the Federal Reserve to create separate special purpose vehicles to hold the equity of two Asian life insurance subsidiaries, American International Assurance Co. Ltd. and American Life Insurance Co. (BestWire, June 25, 2009).

Schimek previously was a partner at Deloitte & Touche LLP.

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

Shares of AIG were $1.44 in afternoon trading on June 26, down 1.4% from the previous close.