AIG is hiving off its general insurance businesses including AIG UK into a new holding company, to be called AIU Holdings.
The massive restructuring, under which AIG will sell off various other parts of its business, follows the announcement of a $61.7bn loss in the fourth quarter of 2008, the largest loss in American corporate history.
The company, best-known on this side of the Atlantic for sponsoring Manchester United, has 11 UK offices and operations that include a life and pensions business.
It operates under three main brands in the UK - AIG UK, AIG Life and AIG Direct.
The formation of AIU Holdings will help protect and enhance the value of these businesses, and position them for the future as more independently run, transparent companies. Effectively they have isolated the insurance operations.