Article: AIG realigns P/C units in bid to keep clients; Company separates insurance operations from troubled parent.(News)(American International Group Inc.)(property and casualty insurance)

Byline: JUDY GREENWALD

NEW YORK-American International Group Inc. will likely continue to lose business and employees as it pursues its plan to spin off its property/casualty units into a separate holding company, observers say.

But just how bad those losses will be, and how policyholders will perceive the attempt to separate the property/casualty units from the troubled holding company is uncertain.

The creation of that holding company, AIU Holdings Inc., is part of a major corporate restructuring program announced last week, when AIG reported a $61.66 billion loss for the fourth quarter of 2008. AIG said it may launch an initial public ...

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