PIG could mean the “People’s Insurance Group” since we own it and all. Of course their logo would be a giant piggy bank where your money checks in, but it doesn’t check out! Despite owning 80% of the company, the American people probably won’t get to pick the new name of the company. Oh well.
The AIG name itself is so poorly regarded that the company has no choice but to re-brand. To you and I this seems like a fruitless effort, same people and same business model right? That’s true. But the company that was Wachovia ceased to be Wachovia back in the early 2000s. First Union bought them and took the name because First Union’s brand was tarnished. Of course First Union managed to destroy Wachovia’s brand too, but I digress. The decision to rebrand is a no-brainer, and in 10 years you’ll have no idea you’re house is insured by them, nor will you really care.
There are two main questions raised in a rebranding move:
When Will The Company’s Name Change?
No one knows for sure. It would be a mistake to do it now though. Since the AIG brand can’t get any worse, they’ll hold on to that for as long as the company is under the watchful eye of the government and media. Only once we leave them alone (via distraction with an economic recover) will AIG even attempt a rebranding.
What Will AIG’s New Name Be?
AIG has recently announced one of their more profitable groups is already getting a name change. AIU Holdings is their attempt to segregate a good group from the bad company. It’s not unlikely that they will take the AIU name for the whole company if it works out for the smaller group.
As a holding company you’d probably never see the AIU brand. Holding companies work best by staying in the shadows, where you’ve only ever heard of their brands. A perfect business case for this is VF Corp. You probably haven’t heard of VF, but you’ve heard of the brands they own: Eastpak, Jansport, Reef, Nautica, The North Face, Wrangler, Lee, and Seven Jeans among many others.
AIG could adopt this model and protect each business unit with their own brand. It would be nearly impossible to taint the entire company. There’s evidence this might work for them, as 21st Century Insurance has recently emerged from the ashes of this recession. 21st Century Insurance was previously AIG Direct. On their about page, 21st Century only mentions AIG once, and it’s faded fine print at the very bottom.
But AIG may not go this route. Controlling that many brands is a marketing nightmare, and no other financial companies really do that. Perhaps instead they’ll take on a brand new name. New name, new logo, and a catchy slogan. Something like InsureStarr or Starr Insurance Company. Starr is for Cornelius Vander Starr – the guy that started the company 90 years ago.
We won’t know what will really happen with AIG’s naming. One thing I will be sure of is that they will do a good job of making you forget the new name makes them different from the old company. We shall see.
Photo: agusprayudhi
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
