AIG to rename auto unit, eliminate jobs

NEW YORK - American International Group Inc., the insurer bailed out by the government, will remove AIG from the name of a US auto unit and cut 6.6 percent of jobs there to improve chances of finding a buyer for the operation.

AIG will start calling its aigdirect.com business 21st Century Insurance in January, reverting to the brand of a California-based car insurer acquired last year, said a spokesman for AIG. The company will also close offices in 12 cities, AIG said in an Oct. 21 letter to workers. The unit had about 5,500 employees as of September 2007.

"They probably weighed the benefits and costs and figured that it has more worth labeled as 21st Century than as AIG Direct," said Jeremy Bowler, a director at J.D. Power and Associates who studies insurer brands.

AIG is selling businesses including auto insurance, US life coverage, and a plane-leasing unit to repay the government loan that saved it from bankruptcy in September.

AIG will launch TV commercials, as well as a revamped logo and website on Jan. 5.