AIG UK hived off after parent company reports $61.7bn loss

AIG is hiving off its general insurance businesses including AIG UK into a new holding company, to be called AIU Holdings.

The massive restructuring, under which AIG will sell off various other parts of its business, follows the announcement of a $61.7bn loss in the fourth quarter of 2008, the largest loss in American corporate history.

The insurer reported a net loss of $99.3bn for the full year of 2008, compared to net income of $6.2bn for 2007.

The US government has offered AIG a $30bn lifeline, on the condition that it restructure the company, effectively disbanding it.

Chairman and chief executive Edward Liddy said: “AIG is executing one of the most extensive corporate restructuring programmess in history. The formation of AIU Holdings will help protect and enhance the value of these key businesses, and position them for the future as more independently run, transparent companies.”

AIU Holdings will include AIG’s Commercial Insurance Group, Foreign General Unit and other property and casualty operations. A minority stake in the business could be offered for sale at a later date, AIG said.