American International Group, the insurer that is currently owned by the US government following the 2008 bailout, has announced that the US Department of the Treasury has added Donald H Layton and Ronald A Rittenmeyer to serve on its board.

Layton is the former chairman and chief executive officer of E*Trade Financial Corporation and ex-vice chairman of JP Morgan & Chase Co. Rittenmeyer is the retired chairman, president and CEO of global IT service provider EDS and has also served as managing director of private equity firm The Cypress Group.

The Treasury has the right to appoint directors to AIG's board under the terms of the series E fixed rate non-cumulative perpetual preferred stock and the series F fixed rate non-cumulative perpetual preferred stock issued by the company to the department in 2009. The agreement was made in the event that AIG does not pay dividends on those series for a total of four quarterly periods.

"We worked closely with the Treasury Department to help identify these new directors," Harvey Golub, the chairman of AIG said in a statement. "We anticipate that their experience and perspective will be invaluable as we make progress toward creating enterprise value and work towards becoming a fully independent company."

AIG is working to repay the $182.3 billion bailout fund the government granted in exchange for a majority stake in the company. The new appointments complement the departure of Dennis Dammerman in February due to health reasons.

The insurer has already spun off a number of assets as part of its capital-raising programme. Abu Dhabi-based Aabar Investments in April completed its acquisition of AIG Private Bank and has renamed the entity Falcon Private Bank. Aabar Investments paid SFr288 million (around $269 million) for the bank and also assumed outstanding loans amounting to SFr63 million.