Mostofi, on the Chartis Rebranding to AIG
Chartis, which acquired Service Net in early 2012 and then integrated it into its U.S. Warranty Division, announced in November that it would rebrand as AIG (American International Group) – a brand that took heat as America was in the throes of the late-2008 financial crisis, when AIG became a recipient of government bailout money. But since then, AIG has paid American taxpayers back and then some, with a positive return of $15 billion, and is positioned to leverage the brand’s global presence to full effect, James Mostofi, president of AIG’s U.S. Warranty Division, said.
The embracement anew of the AIG name signals that the company has recovered from the financial crisis, Mostofi said. “The AIG name is well respected and stands for strength, innovation, trust and integrity. We do believe that, and that is the reason why we are rebranding.”
Mostofi said that gaining Service Net, now a subsidiary of AIG Warranty, has been a “tremendous benefit” to the company. “When you combine AIG’s global presence and large size with the flexibility of Service Net’s great administration platform, you get a compelling overall package for warranty and similar products.”
The use of the AIG name affords the company the ability to provide warranties around the world in a unified manner – something Mostofi said “is a distinction that really fits well for large, global multinationals that have products, sales and service throughout the world.”
One such entity is Best Buy Co., a multi-channel global retailer whose relationship with AIG dates back to 1995 and which has just renewed an agreement for AIG Warranty to serve as the exclusive provider of Best Buy’s Geek Squad Protection plans and other customer-service-related service contracts.
“We ultimately support our clients’ brands by enabling them to maximize lifetime value for their customers, whether that be a large CE retailer like Best Buy or a large manufacturer of consumer electronics and appliances like LG. We’re the provider of those warranties, even though you usually never see our name,” Mostofi said. “To some extent, clients like that certainly get the benefit of our global reach and our large and secure platform and underwriting capabilities. They also have the added option to utilize our brand to the extent they think it can complement their own.”