AIG Moves Closer to AIU IPO

NEW YORK ( TheStreet) -- American International Group ( AIG) is making moves to go forward with an IPO for AIU.

As part of the move, the troubled insurer renamed its property-casualty business under the name Chartis on Monday.

AIG said it formed a special purpose vehicle that will consist of Chartis' commercial insurance, foreign general insurance and private client group businesses.

The company will now use Chartis in place of AIG or AIU for most of its property-casualty branding. This is yet another move to distance the unit from flailing parent AIG.

The company also named Kristian Moor chief executive of AIU. He previously served as president of the unit, and retains that title.

In March, AIG announced plans to separate AIU, which was valued at about $38 billion in 2008.

The sell-off is, of course, intended to help AIG repay its $180 billion loan guarantee, of which $85 billion in loans have been committed.

--Reported by Jeanine Poggi in New York City.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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