April 21, 2009
Dear Business Colleagues:
On March 2, 2009, AIG announced its intent to form AIU Holdings, Inc. and to position the company for the future as a more independent, transparent organization. Today, significant steps have been taken to accelerate the separation of AIU Holdings, Inc.
First, AIU Holdings is being transferred into a Special Purpose Vehicle (SPV). This helps accelerate the separation of our well capitalized insurance companies from the challenges faced by AIG, and better positions AIU Holdings for the potential sale of a minority stake, which may include a public offering of shares. It also helps preserve franchise value for policyholders.
In addition, AIU Holdings' interests in ILFC, United Guaranty and Transatlantic will be purchased by AIG. In combination with the pending sale of 21st Century, these transactions help prepare AIU Holdings’ balance sheet for separation and further improve the quality of its already formidable capital position.
We greatly appreciate your support, and will work hard to continue to offer the market strong capacity, global product and service capabilities, excellent claims service, a broad and innovative risk appetite, and a track record of proven underwriting expertise.
For your information, I have included a link to an announcement that describes these developments and to a fact sheet on AIU Holdings.
Thank you,
Kristian P. Moor
Presidentcc: John Q. Doyle, President and Chief Executive Officer, Property Casualty Group, AIU Holdings