Chartis

From Wikipedia, the free encyclopedia - View original article

Chartis
TypeFormer subsidiary of American International Group
IndustryInsurance
Founded2009
Headquarters175 Water Street, 17th Floor
New York City, New York 10038, United States of America
Fax: 212-458-7081
Area servedWorldwide, 130 countries
Key peoplePeter Hancock, CEO [1]
Nicholas C. Walsh, Vice-Chairman
Robert S. Schimek, CFO
Peter Eastwood, Chief Executive Officer, Chartis U.S.
ProductsCommercial Insurance, Property Casualty Insurance[2]
Revenue$30.7 billion (2009) Net Written Premiums
Employees32,000
Websitechartisinsurance.com
 
Jump to: navigation, search
Chartis
TypeFormer subsidiary of American International Group
IndustryInsurance
Founded2009
Headquarters175 Water Street, 17th Floor
New York City, New York 10038, United States of America
Fax: 212-458-7081
Area servedWorldwide, 130 countries
Key peoplePeter Hancock, CEO [1]
Nicholas C. Walsh, Vice-Chairman
Robert S. Schimek, CFO
Peter Eastwood, Chief Executive Officer, Chartis U.S.
ProductsCommercial Insurance, Property Casualty Insurance[2]
Revenue$30.7 billion (2009) Net Written Premiums
Employees32,000
Websitechartisinsurance.com

Chartis Inc. was a subsidiary of American International Group formed in 2009 to oversee the property-casualty insurance arm of AIG in preparation for a possible initial public offering or spin-off. The company ultimately cancelled those plans, and rebranded the unit back to "AIG" in most markets in late 2012.[3]

History[edit]

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 an 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: [4]

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[when?] 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."[5]

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.[3]

Affiliated companies[edit]

AIG Casualty Company; American Home Assurance Company; American International South Insurance Company; Audubon Insurance Company; Commerce and Industry Insurance Company; Chartis Direct; Granite State Insurance Company; Illinois National Insurance Co.; National Union Fire Insurance Company of Pittsburgh, Pa.; New Hampshire Insurance Company; The Insurance Company of the State of Pennsylvania; AIG Excess Liability Insurance Company Ltd.; American International Specialty Lines Insurance Company; Landmark Insurance Company; Lexington Insurance Company; National Union Fire Insurance Company of Vermont; American International Life Assurance Company of New York; and AIG Life Insurance Company; Service Net, LLC.

See also[edit]

References[edit]

  1. ^ http://cachef.ft.com/cms/s/0/76fd9fee-5bce-11e0-b8e7-00144feab49a.html
  2. ^ "American International Group, Inc. | Newsroom". Ir.aigcorporate.com. Retrieved 2011-08-31. 
  3. ^ a b American International Group (2012-11-11). "AIG Returns Core Insurance Operations to AIG Brand, Reveals New Brand Promise". businesswire.com. Retrieved 2013-07-15. 
  4. ^ [1][dead link]
  5. ^ Zuill, Lilla (2009-03-23). "AIG considering AIU IPO". Reuters.com. Retrieved 2011-08-31. 

External links[edit]