American International Group

American International Group. It is a leading global insurance and financial services organization, with operations in more than 80 countries and jurisdictions. Founded in Shanghai in 1919, the company has grown into one of the world's largest insurers, though its prominence was severely tested during the financial crisis of 2007–2008. Its diverse portfolio includes property, casualty insurance, life insurance, and a range of other financial products through numerous subsidiaries.

History

The company was founded on December 19, 1919, in Shanghai, China, by entrepreneur Cornelius Vander Starr. Starr's first venture was an insurance agency, American Asiatic Underwriters, which initially focused on selling fire insurance to the local Chinese community. The firm expanded rapidly throughout Asia, opening offices in Manila, Hanoi, and Jakarta, and later diversified into life insurance by establishing Life Insurance Company in 1921. Following the Chinese Communist Revolution, the corporate headquarters were moved to New York City in 1949. Under the leadership of Maurice R. Greenberg, who succeeded Starr in 1968, the firm pursued an aggressive global expansion strategy, acquiring companies like SunAmerica and International Lease Finance Corporation, and became a publicly traded entity on the New York Stock Exchange in 1984. This period saw significant growth in its reinsurance operations and the development of complex financial derivatives through its Financial Products division.

Business segments

The organization's operations are divided into several core business segments. The General Insurance segment provides commercial and personal insurance lines, including property, casualty insurance, mortgage insurance, and specialty insurance such as aviation and cyber insurance. The Life and Retirement segment offers a suite of products including life insurance, annuities, and retirement services, largely through the legacy SunAmerica brand. The company also maintains a separate Investments segment, which manages a substantial portfolio of fixed income securities, public equity, and private equity holdings. These segments are supported by a network of underwriting hubs and distribution channels worldwide, including independent brokers, financial advisors, and direct marketing.

Financial crisis and bailout

During the financial crisis of 2007–2008, the firm faced imminent collapse due to massive losses in its Financial Products division, which had sold vast quantities of credit default swaps insuring mortgage-backed securities. The U.S. Treasury and the Federal Reserve intervened with an unprecedented bailout in September 2008, initially providing an $85 billion credit line. The total government commitment eventually swelled to over $182 billion, making it the largest rescue of a private company in history. As part of the agreement, the Federal Reserve Bank of New York created special Maiden Lane vehicles to purchase troubled assets, and the U.S. government took a nearly 80% equity stake. The company repaid the bailout in full by 2012, following a series of asset sales, including the initial public offering of Asian insurer AIA Group and the divestiture of International Lease Finance Corporation.

Corporate governance

The company is governed by a Board of Directors elected by shareholders, with Peter Zaffino serving as Chairman and Chief Executive Officer. Key board committees include the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee. Following the bailout, the firm underwent significant governance reforms under pressure from regulators like the Securities and Exchange Commission and the Federal Reserve Bank of New York. These changes included enhanced risk management oversight, the separation of the Chairman and CEO roles for a period, and the appointment of several new independent directors. The firm's major institutional shareholders have included entities like The Vanguard Group, BlackRock, and State Street Corporation.

Operations and subsidiaries

The firm operates through a vast network of subsidiaries and branches across the globe. Its major operating units include AIG Property Casualty, which handles commercial lines; AIG Life and Retirement; and AIG Financial Products, which has been largely wound down. Notable wholly-owned subsidiaries have included United Guaranty Corporation, a mortgage insurance provider, and Validus Holdings, a Bermuda-based reinsurance group. Internationally, it operates through brands like AIG Europe and has significant presence in markets such as Japan, Latin America, and the United Kingdom. The company's headquarters are located at 175 Water Street in the Financial District of New York City.

Category:Companies listed on the New York Stock Exchange Category:Insurance companies of the United States Category:Financial services companies based in New York City