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American International Group 
Insurance and reinsurance / Insurance and Financial Services
At a Glance | Core Facts | Company Due Diligence: | Industry Due Diligence: | Competitors | Stock Swings | News | Income | Balance | Cash Flow | Growth | Enterprise | Ratios | Metrics | Dividends | Risks | SWOT | Porter's Five Forces | PEST | Score Positive | Clusters | Reports | WebCompany at a Glance
Overview
The American International Group, commonly known as AIG, is a multinational insurance corporation headquartered in New York City. It is one of the largest insurance companies in the world and operates in more than 80 countries. AIG offers a wide range of insurance products and services, including life insurance, property and casualty insurance, and retirement and financial services.
History
AIG was founded in 1919 by Cornelius Vander Starr as American Asiatic Underwriters (AAU). Starr's initial focus was on providing insurance to expatriates and local Chinese residents. In the 1920s, AAU expanded to other parts of Asia and eventually became known as American International Underwriters (AIU). In 1939, the company changed its name to American International Group to reflect its growing global presence.
Over the next few decades, AIG continued to expand its operations and services, including the development of specialized insurance products for industries such as aerospace and energy. In the 1960s, AIG expanded into Europe and Latin America and became a publicly traded company in 1969.
In the 1970s, AIG expanded into the Middle East and Africa, and in the 1980s it entered the Japanese market. In 1993, AIG acquired American General Corporation, a leading life insurance company in the United States.
Recent Years
In 2008, AIG faced financial difficulties due to the global financial crisis and was on the brink of collapse. The U.S. government intervened with a bailout package of $182 billion in exchange for a 79.9% ownership stake in the company. This became the largest government bailout in U.S. history.
After the financial crisis, AIG underwent a restructuring and divested many of its businesses to repay the government bailout. The company also underwent significant leadership changes, with Brian Duperreault taking over as CEO in 2017.
Today, AIG continues to be a leading insurance company and has successfully managed to repay the government bailout and regain its financial stability. The company remains committed to its global expansion and expanding its product and service offerings.
History
AIG was founded in 1919 by Cornelius Vander Starr as American Asiatic Underwriters (AAU). Starr's initial focus was on providing insurance to expatriates and local Chinese residents. In the 1920s, AAU expanded to other parts of Asia and eventually became known as American International Underwriters (AIU). In 1939, the company changed its name to American International Group to reflect its growing global presence.
Over the next few decades, AIG continued to expand its operations and services, including the development of specialized insurance products for industries such as aerospace and energy. In the 1960s, AIG expanded into Europe and Latin America and became a publicly traded company in 1969.
In the 1970s, AIG expanded into the Middle East and Africa, and in the 1980s it entered the Japanese market. In 1993, AIG acquired American General Corporation, a leading life insurance company in the United States.
Recent Years
In 2008, AIG faced financial difficulties due to the global financial crisis and was on the brink of collapse. The U.S. government intervened with a bailout package of $182 billion in exchange for a 79.9% ownership stake in the company. This became the largest government bailout in U.S. history.
After the financial crisis, AIG underwent a restructuring and divested many of its businesses to repay the government bailout. The company also underwent significant leadership changes, with Brian Duperreault taking over as CEO in 2017.
Today, AIG continues to be a leading insurance company and has successfully managed to repay the government bailout and regain its financial stability. The company remains committed to its global expansion and expanding its product and service offerings.
What is special about the company?
There are a few key factors that set American International Group (AIG) apart from other companies:
1. Global Presence: AIG is a multinational company with operations in more than 80 countries, making it one of the largest and most geographically diversified insurers in the world.
2. History and Experience: AIG has been in operation for over 100 years, with a long history of providing insurance and financial services to individuals and businesses around the world. This experience has allowed AIG to develop a strong understanding of the global market and its customers.
3. Diversified Portfolio: AIG offers a wide range of insurance products and services, including life insurance, property and casualty insurance, and financial services such as retirement planning and asset management. This diversification helps to mitigate risk and provides stability to the company.
4. Innovativeness: AIG has a reputation for being a leader in innovation within the insurance industry. They have been at the forefront of developing new products and services to meet the changing needs of consumers and businesses.
5. Large Scale Operations: AIG is a large and influential player in the insurance industry, with significant market share in many countries. This allows them to negotiate favorable terms with their suppliers, partners, and customers, and have a strong competitive advantage.
6. Reputation: Despite facing financial challenges in the past, AIG has maintained a strong reputation in the industry. They are known for their financial stability, customer service, and ethical business practices.
In summary, AIG's global presence, long history, diversified portfolio, innovation, scale of operations, and reputation make it a unique and significant player in the insurance industry.
1. Global Presence: AIG is a multinational company with operations in more than 80 countries, making it one of the largest and most geographically diversified insurers in the world.
2. History and Experience: AIG has been in operation for over 100 years, with a long history of providing insurance and financial services to individuals and businesses around the world. This experience has allowed AIG to develop a strong understanding of the global market and its customers.
3. Diversified Portfolio: AIG offers a wide range of insurance products and services, including life insurance, property and casualty insurance, and financial services such as retirement planning and asset management. This diversification helps to mitigate risk and provides stability to the company.
4. Innovativeness: AIG has a reputation for being a leader in innovation within the insurance industry. They have been at the forefront of developing new products and services to meet the changing needs of consumers and businesses.
5. Large Scale Operations: AIG is a large and influential player in the insurance industry, with significant market share in many countries. This allows them to negotiate favorable terms with their suppliers, partners, and customers, and have a strong competitive advantage.
6. Reputation: Despite facing financial challenges in the past, AIG has maintained a strong reputation in the industry. They are known for their financial stability, customer service, and ethical business practices.
In summary, AIG's global presence, long history, diversified portfolio, innovation, scale of operations, and reputation make it a unique and significant player in the insurance industry.
What the company's business model?
American International Group (AIG) is a multinational insurance company that provides a wide range of insurance products and services to individuals, businesses, and other organizations. The company's business model is focused on risk management and it operates in three main segments: General Insurance, Life & Retirement, and Other Operations.
The General Insurance segment offers property and casualty insurance products that protect individuals and businesses against financial loss. This includes coverage for auto, homeowners, commercial property, and liability. AIG also offers specialty insurance products such as cyber, aerospace, marine, and energy insurance.
The Life & Retirement segment provides life insurance, annuities, and retirement products to help individuals and institutions plan for their financial future. These products include permanent and term life insurance, variable and fixed annuities, and group retirement plans.
The Other Operations segment consists of mortgage insurance and other financial services that support the company's core insurance business. This includes mortgage guaranty insurance, institutional investment products, and regulatory capital.
In addition to its insurance products, AIG also offers risk consulting and other services to help businesses better manage their overall risk exposure. The company's business model relies on analyzing and understanding risk, and using this information to provide tailored insurance solutions to its customers.
Overall, AIG's business model is focused on providing insurance and risk management solutions to individuals, businesses, and other organizations to help them protect themselves and plan for their financial future.
The General Insurance segment offers property and casualty insurance products that protect individuals and businesses against financial loss. This includes coverage for auto, homeowners, commercial property, and liability. AIG also offers specialty insurance products such as cyber, aerospace, marine, and energy insurance.
The Life & Retirement segment provides life insurance, annuities, and retirement products to help individuals and institutions plan for their financial future. These products include permanent and term life insurance, variable and fixed annuities, and group retirement plans.
The Other Operations segment consists of mortgage insurance and other financial services that support the company's core insurance business. This includes mortgage guaranty insurance, institutional investment products, and regulatory capital.
In addition to its insurance products, AIG also offers risk consulting and other services to help businesses better manage their overall risk exposure. The company's business model relies on analyzing and understanding risk, and using this information to provide tailored insurance solutions to its customers.
Overall, AIG's business model is focused on providing insurance and risk management solutions to individuals, businesses, and other organizations to help them protect themselves and plan for their financial future.
Interesting facts about the company
1. The American International Group (AIG) is a multinational insurance corporation headquartered in New York City. It was founded in 1919 as the American Asiatic Underwriters by Cornelius Vander Starr.
2. The company’s name was changed to American International Group in 1967 as it expanded its operations beyond Asia to Europe and the Americas.
3. AIG is one of the largest insurance companies in the world, with operations in more than 80 countries and jurisdictions. It provides a wide range of insurance products and services, including life insurance, property and casualty insurance, and retirement and financial services.
4. AIG was one of the primary players in the subprime mortgage crisis of 2007-2008. The company had heavily invested in mortgage-backed securities and suffered significant financial losses when the housing market collapsed.
5. As a result of the financial crisis, AIG received a bailout package of $182 billion from the US government, making it the largest government bailout in history.
6. In 2012, AIG fully paid back the government bailout, with interest, six years ahead of schedule.
7. AIG has a long history of notable acquisitions, including the purchase of American General Corporation in 2001 and SunAmerica Inc. in 1999, which helped expand the company’s presence in the life insurance industry.
8. In 2017, Brian Duperreault became the new CEO of AIG, bringing with him a successful track record in the insurance industry and a focus on restructuring and improving the company’s financial performance.
9. AIG has been recognized as one of the world’s most ethical companies by the Ethisphere Institute for four consecutive years (2017-2020).
10. In addition to insurance and financial services, AIG is also a prominent sponsor in the sports world. The company has sponsored events and teams in sports such as golf, rugby, and soccer, and was the primary sponsor of the New Zealand All Blacks rugby team from 2012-2018.
See Company Due Diligence:
2. The company’s name was changed to American International Group in 1967 as it expanded its operations beyond Asia to Europe and the Americas.
3. AIG is one of the largest insurance companies in the world, with operations in more than 80 countries and jurisdictions. It provides a wide range of insurance products and services, including life insurance, property and casualty insurance, and retirement and financial services.
4. AIG was one of the primary players in the subprime mortgage crisis of 2007-2008. The company had heavily invested in mortgage-backed securities and suffered significant financial losses when the housing market collapsed.
5. As a result of the financial crisis, AIG received a bailout package of $182 billion from the US government, making it the largest government bailout in history.
6. In 2012, AIG fully paid back the government bailout, with interest, six years ahead of schedule.
7. AIG has a long history of notable acquisitions, including the purchase of American General Corporation in 2001 and SunAmerica Inc. in 1999, which helped expand the company’s presence in the life insurance industry.
8. In 2017, Brian Duperreault became the new CEO of AIG, bringing with him a successful track record in the insurance industry and a focus on restructuring and improving the company’s financial performance.
9. AIG has been recognized as one of the world’s most ethical companies by the Ethisphere Institute for four consecutive years (2017-2020).
10. In addition to insurance and financial services, AIG is also a prominent sponsor in the sports world. The company has sponsored events and teams in sports such as golf, rugby, and soccer, and was the primary sponsor of the New Zealand All Blacks rugby team from 2012-2018.
See Company Due Diligence:
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