AIG NZ charts new course in wake of parent's bailout

Matt Harris. Photo / Supplied

AIG New Zealand boss Matt Harris is hoping a new name will allow the company to take a positive step forward after months of negative publicity in the wake of the bailout of its US parent.

American International Group yesterday said it had spun off its property casualty and general insurance division into a special purpose vehicle and renamed it Chartis - the Greek word for map.

The company said the structural change would allow Chartis to operate as an independent company and give it the potential to dilute its ownership through an initial public offering.

New Zealand is one of 160 countries where the business is likely to be rebranded, although it won't take place here for several months.

Harris said the name change was not specifically designed to get away from the AIG name but admitted the company had suffered locally after the US Government was forced to pour US$85 billion ($128.7 billion) into rescuing the insurance giant in September last year.

Since then the US Government, which took an 80 per cent stake in AIG, has provided additional support totaling US$182.5 billion.

Harris said the company had managed to hold up in the face of the difficult economic times and he hoped the new branding would be a positive move for the company. "It really demonstrates our step towards independence."

When asked if the new structure meant the business was now up for sale, Harris said: "Not at all. Setting up a special purpose vehicle at a global level allows AIG Inc to dilute its ownership in the business."

Harris expected no change in the structure of the business.

AIG's life insurance business in New Zealand will continue to be run separately under the AIG name.