An industry participant in a conference call with AIG's largest global insurance
clients that was sponsored by insurance broker AON noted that executives from the new entity, to be known as AIU Holdings, Inc., stated that the change seeks to free the company from AIG's debt and bad investments, and help retain key employees and customers.

According to the call participants, AIU Holdings' executives noted that as a separate entity, the operating units that will compromise the new entity would have recorded $45 billion in revenue in 2008. This would have ranked the company at number 54 on the Fortune 500 list, and made it the largest property and casualty insurer in the world.

The eventual plan is to raise capital for AIU Holdings through either a public share offering or by raising money privately. The new entity currently carries no debt of its own and does not require any additional capital. Its policyholder surplus, capital above the amount necessary to pay claims to its insureds, stands at over $26 billion.

Source: Dow Jones, March 5, 2009

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