A Brief History of American International Group, Inc. (AIG)

American International Group, Inc. (AIG) is a global finance and insurance corporation with a storied history that began in the early 20th century. The company's origins can be traced back to a humble start and its evolution into one of the world's foremost insurance companies.

1919: Founding

AIG was founded in Shanghai, China, by Cornelius Vander Starr under the name American Asiatic Underwriters (AAU). Vander Starr’s vision was to create a high-quality insurance company that could provide services internationally.

1926: Expansion into the United States

Vander Starr moved his headquarters to New York City, making it the base for his operations in the American market. This move marked the beginning of AIG's significant expansion within the United States.

1967: Formation of AIG

The company reorganized under the name American International Group, Inc. (AIG), consolidating its various international operations into a single corporate entity.

1984: Public Offering

AIG went public in 1984, listing its shares on the New York Stock Exchange. This step provided the company with the capital needed for further global expansion and diversification.

1999: Acquisition of SunAmerica

In a major strategic move, AIG acquired SunAmerica Inc., a retirement services company, further diversifying its portfolio and strengthening its position in the financial services sector.

2008: Financial Crisis and Bailout

During the 2008 financial crisis, AIG faced severe financial difficulties, largely due to its exposure to credit default swaps and other financial products. The U.S. government intervened with a bailout package worth $182.5 billion to prevent the company from collapsing. This intervention was among the largest in U.S. history and marked a significant chapter in AIG's history.

2010: Restructuring and Repayment

Following the bailout, AIG underwent a significant restructuring process. By 2010, the company began repaying its debt to the U.S. government, and by 2012, it had fully repaid the bailout funds, a milestone that symbolized its recovery.

• 2011: New focus on core businesses

AIG pivoted its strategy to focus on its core businesses of property-casualty insurance and life insurance, selling off non-core assets to streamline operations.

• 2017: Leadership Changes

Brian Duperreault was appointed as CEO, bringing renewed focus and stability to the company.

• 2018: Acquisitions and Growth

AIG acquired Validus Holdings, Ltd., a global provider of insurance and reinsurance, marking a significant step in its strategy to enhance its market position.

Who Owns American International Group, Inc. (AIG)

American International Group, Inc. (AIG) is a publicly traded multinational insurance corporation. As a publicly traded company, AIG is owned by its shareholders. These shareholders include a mix of institutional investors, mutual funds, and individual investors. Here are the key points about AIG's ownership:

• Institutional Investors: A significant portion of AIG's shares is owned by institutional investors such as investment firms, pension funds, and endowments. These institutions collectively hold a substantial percentage of the company's stock, exerting considerable influence over company decisions.

• Mutual Funds: Mutual funds are another major category of AIG's shareholders. Managed by professional portfolio managers, these funds pool money from numerous individual investors to purchase shares in AIG and other companies.

• Individual Investors: Individual investors, including retail investors and company insiders, also own shares of AIG. These investors may purchase stock through brokerage accounts or participate in employee stock ownership plans.

• Top Shareholders: Some of the top institutional shareholders of AIG include firms like The Vanguard Group, BlackRock, and State Street Corporation. These entities are known for their extensive investment portfolios and significant stakes in numerous publicly traded companies.

• Executive and Board Ownership: Members of AIG's executive team and board of directors may also own shares in the company, aligning their interests with those of the shareholders and potentially influencing corporate governance.

Overall, the ownership of American International Group, Inc. is dispersed among a diverse group of institutional and individual investors, with significant stakes held by major investment firms and mutual funds.

American International Group, Inc. (AIG) Mission Statement

The mission statement of American International Group, Inc. (AIG) encapsulates the company’s commitment to delivering solutions that help clients manage risk effectively. Established as a global insurance organization with a history spanning multiple decades, AIG aims to provide financial stability and security for its customers. The mission statement underscores the following core objectives:

• Client-Centric Approach: AIG is deeply committed to understanding and meeting the unique needs of its clients. This involves creating customized insurance products and services designed to offer the best possible protection and value.
• Innovation: AIG consistently seeks innovative solutions to address emerging risks in an ever-changing world. Leveraging technology and industry expertise, AIG aims to stay ahead of the curve in the insurance sector.
• Integrity and Accountability: Operating with high ethical standards, integrity, and accountability is at the heart of AIG’s business practices. The company prioritizes transparency and trustworthiness in all its operations.
• Excellence in Execution: Delivering exceptional service is a keystone of AIG’s mission. The company strives to exceed client expectations through meticulous attention to detail, professionalism, and a commitment to excellence.
• Community Impact: AIG recognizes its role in the broader community and is dedicated to making a positive impact. This includes engaging in corporate social responsibility initiatives that support sustainable development and community well-being.

These principles guide AIG in its pursuit of creating a safer and more resilient world for individuals, businesses, and communities. By adhering to these foundational elements, AIG positions itself as a trusted partner in risk management and insurance solutions.

How American International Group, Inc. (AIG) Works

American International Group, Inc. (AIG) is a leading global insurance organization. AIG provides a wide range of insurance products and services to individuals, businesses, and other institutions. Founded in 1919, AIG has a long history of innovation and leadership in the insurance industry. The company operates through various subsidiaries and offers its products in more than 80 countries and jurisdictions. Here is how the company works:

AIG operates through two primary business units:

• General Insurance: This includes Commercial and Personal Insurance. The Commercial Insurance segment provides property, liability, and financial lines insurance products to businesses of all sizes. The Personal Insurance segment offers automobile, homeowner, and other types of insurance to individuals.
• Life and Retirement: This segment offers a broad range of life insurance, retirement, and institutional products. It includes individual and group retirement products, life insurance, and fixed and variable annuities.

Each of these business units has its own management and operational structures tailored to meet the needs of their respective markets and customers.

AIG distributes its products and services through a variety of channels to ensure they reach a broad audience:

• Agents and Brokers: Independent agents and brokers play a key role in distributing AIG's insurance products. They help clients understand their insurance needs and recommend the appropriate AIG products.
• Direct-to-Consumer: AIG employs direct marketing approaches, including online platforms, to reach consumers directly. This channel allows customers to purchase insurance products without intermediaries.
• Corporate Partnerships: AIG partners with other financial institutions and corporations to offer insurance products as part of broader service packages.

AIG invests significantly in risk management to ensure the sustainability and profitability of its operations. This involves:

• Underwriting: AIG employs sophisticated underwriting practices to assess and price risk accurately. This helps to ensure that the company takes on appropriately priced risks.
• Reinsurance: AIG transfers portions of its risk to other insurance companies, known as reinsurers, to mitigate potential losses from large claims.
• Claims Management: Efficient claims management processes are crucial for maintaining customer satisfaction and controlling costs. AIG has a robust claims handling system to ensure timely and fair settlements.

AIG's financial strength is an important aspect of its operations:

• Capital Adequacy: AIG maintains substantial capital reserves to cover its policyholder obligations and support its business activities.
• Credit Ratings: The company is rated by major credit rating agencies, which provide an independent assessment of its financial health and stability. These ratings are key indicators for customers and investors regarding AIG's ability to meet its financial commitments.

How American International Group, Inc. (AIG) Makes Money

American International Group, Inc. (AIG) is a global insurance organization that offers a wide range of insurance products and services. The company earns revenue through various streams, primarily from underwriting activities and investment income. Key areas where AIG makes money include:

• Commercial Insurance:

AIG provides commercial insurance products to businesses of all sizes. These include property, casualty, liability, and financial lines insurance. The company earns premiums from policyholders and, in return, provides coverage against potential losses or damages.

• Personal Insurance:

AIG also offers personal insurance products such as auto, homeowners, umbrella, and accident insurance. The premiums collected from individual policyholders contribute significantly to AIG's revenue.

• Life and Retirement:

AIG offers life insurance, annuities, and retirement products that provide customers with income protection, savings, and investment solutions. The company earns money through premiums, fees, and investment income associated with these products.

• Investments:

AIG generates significant revenue from its investments. The company invests the premiums collected from policyholders into a diversified portfolio, including bonds, stocks, and other financial instruments. The returns on these investments add to the company's overall income.

• Reinsurance:

Through reinsurance agreements, AIG transfers portions of its risk to other insurance companies. This allows AIG to manage its risk exposure and earn additional revenue through reinsurance premiums.

Overall, AIG's diversified approach to insurance and investments enables it to generate substantial revenue from multiple sources, ensuring financial stability and growth.