AIG Hawaii Insurance Co. said it will change its name to Farmers Insurance Hawaii Inc. at the start of next year to reflect its new ownership under Farmers Insurance Group.

AIG Hawaii was sold in July as owner American International Group Inc. took steps to repay some of the billions owed in government bailout money.

"There's been a lot of excitement as we begin final preparations to become Farmers Insurance Hawaii," Robin Campaniano, president and chief executive officer of AIG Hawaii, said in a news release.

Customers should notice no difference in service, he said. All branches statewide will remain open and fully staffed.

"Through this transition we are emerging as an even stronger company," Campaniano said.

Even before the offer from Farmers, AIG Hawaii had been contemplating a name change on its own given the stigma of being associated with its parent company, which had severe financial problems and needed a Federal Reserve-led rescue to avoid collapse last year.

In October, AIG put its auto group on the market as it looked for ways to pay off some of the bailout, which totaled about $182.5 billion at that time.

Farmers Insurance Group is the third-largest personal lines insurer in the nation, with more than 15 million customers and more than $16.7 billion in gross written premium as of June 2009. The company also has a financial strength rating of "A" by Standard and Poor's and A.M. Best.

Farmers is owned by Zurich Financial Services Group, a Swiss company that serves customers in 170 countries and has business customers in Hawai'i.

Farmers Insurance Group also allowed its newest member company to retain "Hawaii" in its name — making Farmers Insurance Hawaii the only Farmers member company in the nation to have a state designation in its name and logo.

AIG Hawaii and its affiliate companies have 300 employees statewide and offices on O'ahu, Maui, the Big Island and Kaua'i.