AIG United Guaranty - the Canadian arm of AIG Inc. - will be part of a new offshoot company of AIG that has a separate management team and corporate identity.
AIU Holdings Inc. is launching as a global property casualty holding company to serve commercial and individual customers in 130 countries. AIG's Commercial Insurance Group (CIG) - reporting $21 billion in net premiums for 2008 - will play a major role in the newly formed company, according to Andrew Charles, president and CEO of AIG UG.
"I want to reassure our partners that AIG United Guaranty Canada is a strong and well-capitalized company," he said. "We believe a competitive market dynamic has greatly benefitted our industry through lower premiums, the elimination of application fees and prudent mortgage insurance solutions."
AIU Holdings would be one of the largest property and casualty companies in the world, with more than 44,000 employees and 500 products worldwide.