Branding experts weigh makeover of AIG's name.

Experts agree something needs to be clone with the American International Group Inc. brand. Some believe the insurer, bailed out last year by the U.S. government with a multibillion dollar rescue package, can rebrand itself over time under its current name. Others view the once highly regarded brand as "dead."

That's a far cry from once gracing BusinessWeek's annual list of the top 100 global brands. In 2007, AIG ranked 47th overall and first among insurance companies, with an estimated $7.5 billion brand value.

Branding expert Nick Nichols, of Las Vegas public relations firm and Internet branding agency LVPR, said the brand is beyond saving. Until it's officially comatose, however, they should reinvent themselves and first think if they need to have a new name and point-of-view or tagline that talks about the positives of what the company will do versus what's happened in the past.

Other experts, like speaker and author Liz Goodgold, believe AIG has no choice but to regroup under a new name.

"AIG has become the Enron of brand names," she said. "The brand name is what people remember and that name is forever tainted."

Several major AIG subsidiaries have been moving in that direction in the past year. This includes the formation of Chartis, which holds AIG's commercial units, in 2009. AIG Direct's automobile insurance business was renamed 21st Century Insurance--the name the automobile insurance company used until MG acquired 100% of the company in 2007. The Farmers Insurance Group of Cos. acquired 21st Century in July.

AIG's long-standing Asia-Pacific life insurance subsidiary, American International Assurance Co. Ltd., reinforced its independent identity with an aggressive branding effort launched in May.

In June, AIG Annuity was rebranded as Western National Life Insurance Co., which previously had been the unit's name for 50 years. Judith Alexander, director of sales and marketing for Beacon Research, said the firm's sources consider that a wise move.

"Banks are extremely risk-averse," she said. "We have heard that banks increasingly did not want to be associated with Western National, then AIG Annuity, as concerns mounted about its corporate parent."

In one of its largest moves, in July, AIG unveiled a new brand for its property/casualty business under the name Chartis--previously known as AIU Holdings, which was a transitional title.

John Doyle, executive vice president of Chartis and president and chief executive officer of Chartis U.S., said AIU was "never intended to be our long-term brand. After consulting with thousands of our brokers, our customers and our employees, we made the decision to reintroduce ourselves as Chartis." He said that announcement was well-received, adding, "It has united our business under one global brand."

But are these rebranding efforts enough to help detoxify the AIG brand?

In order for AIG to rebrand what was once the moniker of the largest global insurer, Goodgold said, "They'll have to weigh the brand equity and negative image versus the unknown. Companies want a new name when they have two things against them: insurmountable negative publicity and negative connotation. AIG hit both of those key criteria."

Goodgold noted that ValuJet Airlines went through a major rebranding effort in 1996 after one of its planes crashed into the Florida Everglades, killing 110 on board. Today, the company is going strong as AirTran Airways.

"All the changes AIG is making with a new CEO, board and regulations will start the building blocks of a new brand" Goodgold said. "Now is the time to make that change."

But Scott Piergrossi, vice president of creative development for the identity consultancy Brand Institute, lauds AIG for not rushing into a makeover campaign.

"Over the short-term, there's little AIG can do from a branding perspective to alleviate the current public outrage. It makes greater sense to continue daily business, focus on delivering all elements of its mission and wait to make any macrobranding decisions until the future direction of the organization becomes clearer."

To create positive rebranding steps, Goodgold said AIG must be both "genuine and authentic." Otherwise, she said, "a new brand is just whitewashing."

Kelly O'Keefe, director of executive education at Virginia Commonwealth University Brandcenter, believes it's possible for AIG to restore itself under its current name.

"It first has to fix its troubles. Then AIG has to show consumers it's a solid and secure company."

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AIG's New Special Purpose Vehicles

Operating Entities

Chartis               AIA              Alico

SPV *                 SPV **           SPV **

* To hold the equity of the operating company,
pending regulatory approval

Government Takeover of Toxic Assets

Maiden Lane II        Maiden Lane
                      III

$39.3B mortgage-      $62.1B from
backed securities     collateralized
from AIG's security   debt
lending               obligation
program

Securities purchased at a discount to
face value.

Operated by outside money managers
for the Fed. AIG holds equity stake;
majority owned by the Fed.

** The Fed will have equity stakes in the SPVs of AIA and Alico.
To pay back the Fed, there could be IPOs, sales, etc.

AIG Inc.

Four Main Operating Arms

Chartis          Domestic     International Life    Financial Services
                 Life &
                 Retirement

Domestic and     Sun-         Alico--American       International Lease
international    America      Life Insurance Co.    Finance Corp.
commercial
P/C and high-
net-worth
personal lines

                 America      AIA-American          Consumer Finance
                 General      international
                 Life         Assurance

                 Broker       AIG Star (Japan)      United Guarantee
                 Dealers:                           Corp. (Mortgage
                 Sagepoint                          Guaranty)

                 FSC          AIG Edison (Japan)    Financial Products

                 Royal        Nan Shan (Taiwan)
                 Alliance

                 Valic

                 Western
                 National