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Chartis IPO on Hold According to Reports

Source: Business Insurance

Posted on 22 Dec 2009

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In a report in Bloomberg this morning, citing people familiar with the matter, American International Group Inc. (AIG) has reportedly paused preparations for an initial public offering of property/casualty unit Chartis Inc.

Reports are saying that AIG Chief Executive Officer Robert Benmosche has signaled that he wants to hold onto the unit, telling employees he considers Chartis a core holding.

A spokesman for AIG could not be immediately reached.

New York-based AIG said in April it was accelerating the separation of the unit to prepare for a sale or public offering of a minority stake, although no date had been set.

Chartis executives, including CEO Kristian Moor, had met earlier this year with financial advisers about a public offering, but preparations stopped after Mr. Benmosche took charge, Bloomberg reported.

According to the report, Mr. Benmosche is evaluating other options for the unit.

Since Mr. Benmosche took over the insurer in August, he has moved to slow the pace of asset sales to try to try to generate higher values for the units in an effort to repay the $182 billion federal aid package AIG received in 2008. Chartis has 34,000 employees and approximately 40 million clients in 160 countries and jurisdictions.