Chartis - History

History

See also: American International Group – Financial crisis

As part of the financial crisis of 2007–2008, AIG suffered a liquidity crisis resulting in it being bailed out by the Federal Reserve, and the United States Department of the Treasury receiving warrants to acquire a controlling stake in the company. Following the crisis, AIG began to sell off various assets in order to pay off its government loans. The AIG brand was stripped from most of the company's remaining operations, which were rebranded under either previous names or new monikers as the company sought to distance these operations from the crisis.

On July 27, 2009, AIG announced it intended to form a Special Purpose Vehicle (SPV) for Commercial Insurance, Foreign General and the Private Client Group which would be placed into the SPV and renamed Chartis in preparation for a IPO or other equity offer. AIG CEO Robert Benmosche later changed his mind and now intends to keep Chartis as he deems the business core to AIG's future earnings potential. As of the end of 2009, Chartis had combined statutory surplus of over $38 billion worldwide. Initially Chartis was named AIU Holdings (AIU standing for American International Underwriters) but the name did not distance it far enough away from its parent AIG's issues, so management decided to go to a full rebranding. Chartis is made up of the three former AIG units: commercial insurance, foreign general insurance, and private client group.

Kristian Moor, a former AIG executive vice president who headed the property-casualty group, was named Chartis' Chief Executive Officer. Moor joined AIG's National Union in 1981.

Since the summer of 2009, Chartis has divested its related party holdings to AIG for the following entities and business:

  • International Lease Finance Corporation
  • AIG Capital Corp.

Chartis has already sold its stakes in Hartford Steam Boiler Inspection and Insurance Company, 21st Century Insurance, and Transatlantic Reinsurance Holdings as these assets were deemed non-core to Chartis' future business plans. HSB went to Munich Re, 21st Century went to Zurich Insurance Group, and Transatlantic ended up with Alleghany Corporation.

It was thought that AIG might announce an IPO or other equity offering of approximately 20% of AIU and keep an 80% interest in the company that it could later sell. AIG representatives said the company was positioning Chartis to be more independent down the road by assembling an independent board and, perhaps, eventually an initial public offering.

According to the company, the Chartis name derives from the Greek word for map, underscoring "the franchise's disciplined-yet-flexible approach to navigating changing marketplaces and complex risks worldwide."

By late 2012, AIG had repaid its government loans, and decided to resume actively marketing under the AIG brand. By November 2012, the Chartis name had been discontinued in most markets in favour of AIG.

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