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Tuesday, 25 November 2008 17:09

AIG Auto Unit Getting Name Change

American International Group, as part of the firm's move to liquidate assets, will change the name of its AIG Direct auto insurance unit back to 21st Century Insurance.

The name change for the auto unit will take place in January. AIG Direct is the company's direct personal lines automobile insurance operations. AIG Agency Auto provides personal lines insurance through a network of independent agencies and brokerages throughout the United States, and AIG Hawaii.

Last month Anthony J. DeSantis, the chief operating officer of AIG Direct, was named president and chief executive officer of American International Group's personal auto group replacing Bruce Marlow. 6.6 percent of the workforce was reduced.

By some estimates the sale of the auto division could raise $2 billion and the aircraft leasing $10 billion.

AIG was forced to sell an 80 percent interest to the government to obtain billions in loans after losses at its financial products unit pushed it to the brink of bankruptcy.The sales are aimed at repaying $150 billions in loans.

In another move, AIG was reported to be near completion of arrangements to sell off its aircraft leasing unit, International Lease Finance Corp. in Los Angeles. Spokesperson Peter Tulupman said he could not comment.