Float would aid payback to US government

Chartis, AIG’s rebranded property and casualty business, is aiming for a stock market listing by the end of next year.

Chartis Europe chief executive Julio Portalatin said: “We will be in a position to adequately evaluate the value that we can get from an IPO (initial public offering) sometime before the end of 2010. It’s not a 2009 event.”

The flotation would help pay back the $180bn (£108.6bn) in state aid received from the US government following its parent’s collapse a year ago.

Portalatin said that Chartis was in a strong position for any possible listing.

“Chartis Europe continues to do very well. We’re financially strong,” he said. “If you look at customer retention, it’s still very high: north of 90%.

“We like to think that we have a lot of employees who are very dedicated and loyal, and when their backs are up against the wall, they’ll come out fighting.

“You’ll find that the fighting spirit lives very strongly.”

Portalatin revealed ambitions to expand the company into markets such as Russia and Scandinavia.

AIG created Chartis in July this year. As well as the UK general insurance business, the company includes commercial insurance and private client divisions from the US.

Last week, AIG UK chief executive Lex Baugh outlined his plans for the business in an exclusive interview with Insurance Times.