AIG, Former CEO Greenberg, CFO Smith Agree to Binding Arbitration

American International Group, Inc., its former Chairman and Chief Executive Officer Maurice R. Greenberg, and its former Chief Financial Officer Howard I. Smith jointly announced today that they have agreed on terms for binding arbitration of various legal disputes between AIG, on the one hand, and Greenberg and Smith, on the other
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AIG to Rebrand US Auto Insurance Unit to 21st Century Insurance, and Cut Jobs

American International Group, which has been bailed by the U.S. government, plans to remove its name from the AIG unit of U.S. auto insurance, aigdirect.com and rebrand it as a 21st Century Insurance in January 2009. Auto unit also plans to cut 6.6% of its workforce.

According to media reports, Nicholas Ashooh, spokesman for American International Group (AIG), said that the change of name is to reverse at AIG, which has acquired 21st Century in 2007. The company expects to launch the new logo and website on 5 January 2009.

Bloomberg announced that the auto insurance unit employed around 5500 workers by the end of September 2007. Earlier, in a statement to its employees, AIG said that it plans to close offices in 12 cities.

AIG New Jersey Subsidiary Is Sound

New Jersey residents covered by American International Group's auto insurance subsidiary should not worry about their health carrier, says the state Department of Banking and Insurance Commissioner Steven M. Goldman.

"AIG's auto insurance subsidiary in New Jersey - American International Insurance New Jersey - is well-capitalized and well able to live up to their claims," Goldman said last week. "I urge policy-holders, not to make any decisions, rash, if you have a policy issued by AIG insurance company."

AIG sole subsidiary in New Jersey has about 76,000 customers and auto insurance account for about $ 80 million in 2007 bonuses, according to Goldman.

The collapse of complex mortgage-related transactions by AIG conglomerte stung to the core business of insurance. On 17 September, the Federal Reserve announced it taking control of the company at $ 85 billion rescue to prevent collapse.

"Your insurance and annuity policies are written by AIG insurance companies," said Goldman. "These companies are strong financially, and their assets are protected by state regulatory authorities." -

2008 NJBIZ. Provided by ProQuest LLC. All rights Reserved.