american international group insurance

Helping you prepare for times of uncertainty is at the heart of what we do. [135] Judge Wheeler did not award compensation to the plaintiffs, ruling that they did not suffer economic damage because "if the government had done nothing, the shareholders would have been left with 100 percent of nothing. Christine Lagarde, the French finance minister, echoed his view: everyone was exposed to AIG, and its failure would be catastrophic.". [86] The next week, on September 14, 2012, the Department of Treasury completed its fifth sale of AIG common stock, with proceeds of approximately $20.7 billion, reducing the Treasury's ownership stake in AIG to approximately 15.9 percent from 53 percent. [23] In 1952, Starr began to focus on the American market by acquiring Globe & Rutgers Fire Insurance Company and its subsidiary, American Home Fire Assurance Company. [83], Nine years after the initial bailout, in 2017, the U.S. Financial Stability Oversight Council removed AIG from its list of too-big-to-fail institutions. [57][59] As a result, AIG's credit rating was downgraded and it was required to post additional collateral with its trading counter-parties, leading to a liquidity crisis that began on September 16, 2008, and essentially bankrupted all of AIG. American International Group UK Limited is registered in England: company number 10737370. [9] AIG was ranked 60th on the 2018 Fortune 500 list. American International Group, Inc. [29] Throughout the 1990s, AIG developed new sources of income through diverse investments, including the acquisition of International Lease Finance Corporation (ILFC), a provider of leased aircraft to the airline industry. Guaranteed acceptance permanent coverage, ages 50 – 85, with no medical exams. On December 14, 2012, the Treasury Department sold the last of its AIG stock in its sixth stock sale for a total of approximately $7.6 billion. [111] The company announced plans in 2017 to reorganize its Commercial and Consumer segments into General Insurance and Life & Retirement, respectively. The company operates four principal business segments, including general insurance, life insurance and retirement … The company is much larger and complex than Lehman Brothers and its assets hitting the market all at once would likely cause worldwide chaos and send values plummeting. [15] In 1992, AIG received the first foreign insurance license granted in over 40 years by the Chinese government. General Insurance includes Commercial, Personal Insurance, U.S. and International field operations. [70][71] On April 16, 2009, AIG announced plans to sell its 21st Century Insurance subsidiary to Farmers Insurance Group for $1.9 billion. Within the U.S., AIG acquired SunAmerica Inc. a retirement savings company managed by Eli Broad, in 1999. [15] Business grew rapidly, and two years later, Starr formed a life insurance operation. [140], "AIG" redirects here. "Behind Insurer's Crisis, Blind Eye to a Web of Risk", "Goldman, Merrill Collect Billions After Fed's AIG Bailout Loans", "After AIG rescue, Fed may find more at its door", "Federal Reserve Board, with full support of the Treasury Department, authorizes the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG)", "AIG bonuses total more than the reported $165 million", "U.S. Senate vote on Emergency Economic Stabilization Act of 2008", "Obama tries to stop AIG bonuses: 'How do they justify this outrage?' [73] The Wall Street Journal reported on September 7, 2009, that Pacific Century Group had agreed to pay $500 million for a part of AIG's asset management business, and that they also expected to pay an additional $200 million to AIG in carried interest and other payments linked to future performance of the business. Mills – Former Vice President of Operations. Greenberg was ousted amid an accounting scandal in February 2005. [82] Due to the Q3 2011 net loss widening, on November 3, 2011, AIG shares plunged 49 percent year to date. With roots that trace back to 1919, we're a global insurance company with operations in more than 80 countries and jurisdictions. [138] The specific issue was whether the Federal Reserve Bank of New York transferred $18 billion in litigation claims on troubled mortgage debt through Maiden Lane Transactions, entities created by the Fed in 2008. [87], On October 12, 2012, AIG announced a five and a half year agreement to sponsor six New Zealand-based rugby teams, including the world champion All Blacks. [127], AIG offers property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services. AIG extends partnership of the AIG Women's Open through 2025. [108] In 2018, AIG established Fortitude Re to hold most of its run-off portfolios and late in 2018 sold a minority stake to The Carlyle Group. ", "US SEC: 2019 Form 10-K American International Group, Inc", "2016 10-K American International Group, Inc", "AIG to restructure into three new units, marking CEO's first big move", "AIG Retools Operating Structure Following Pledge From CEO", "AIG Restructures Again; Commercial Lines CEO Schimek to Leave", "SEC Filing American International Group, Inc. [7] Duperreault, who previously worked at AIG from 1973 until 1994,[101] was hired as CEO from Hamilton Insurance Group[102] following Hancock's announcement in March 2017 that he would step down as AIG CEO under pressure after a period of disappointing financial results. The sale reduced Treasury's stake in AIG to 61 percent, from 70 percent before the transaction. Aerospace Insurance Managers, Allianz Global Corporate & Specialty, American International Group, Aon, Global Aerospace, Marsh, Aviation Insurance Holdings, Catlin Group, Willis Group Holdings, XL Group. [15] In 1939, Starr moved his headquarters from Shanghai, China, to New York City. Get access to your AIG Retirement Services retirement plan account here. [132] The AIG board had announced on January 9 that the company would not join the lawsuit. We provide a range of insurance products to support our clients in business and in life, including: general property/casualty, life insurance, and retirement and financial services through our General Insurance, Life and Retirement and Investments business units. [84], The United States Department of the Treasury announced an offering of 188.5 million shares of AIG for a total of $5.8 billion on May 7, 2012. For a list of counterparties receiving U.S. taxpayer dollars, see: Business data for American International Group: This page was last edited on 3 January 2021, at 22:29. [65] Total bonuses for the financial unit could reach $450 million, and bonuses for the entire company could reach $1.2 billion. However, AIG continued to expand its markets by introducing specialized energy, transportation, and shipping products to serve the needs of niche industries. Why the Fed pulled the trigger on AIG: What did the government get for its $85 billion? He began his career at AIG as a clerk in its London office in 1970. Â. Guarantees are backed by the claims-paying ability of the issuing insurance company. [6][7][8] Life & Retirement includes Group Retirement, Individual Retirement, Life, and Institutional Markets. Discover how an annuity can help you get ready for retirement and secure protected lifetime income. Brian Duperreault will become Executive Chairman and Douglas M. Steenland will become Lead Independent Director. [85] Four months later, on September 6, 2012, AIG sold $2 billion of its investment in AIA to repay government loans. The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary. [14], AIG was founded December 19, 1919[1] when American Cornelius Vander Starr (1892-1968) established a general insurance agency, American Asiatic Underwriters (AAU), in Shanghai, China. The board also approved a $5 billion stock repurchase of government-owned shares in AIA. The credit facility was secured by the stock in AIG-owned subsidiaries in the form of warrants for a 79.9% equity stake in the company and the right to suspend dividends to previously issued common and preferred stock. [11] On December 31, 2017, AIG had $65.2 billion in shareholder equity. [94], In June 2015, Taiwan's Nan Shan Life Insurance acquired a stake in AIG's subsidiary in Taiwan for a fee of $158 million. American International Group is one of the leading international insurance organizations with operations in more than 130 countries and jurisdictions. [79], In October 2010, The Wall Street Journal reported that the Tomlinson family was allowed to join a civil suit involving AIG for its alleged complicity in a 'stranger-originated life insurance' scheme. Amy L. Schiodalger – Former Senior Managing Director and Global Head of Beta Strategies. American International Group, Inc. is an international insurance organization serving commercial, institutional and individual customers. [125] In January 2020, AIG announced it was ending its decade-long sponsorship of the All Blacks in 2021. In addition, AIG sold off a number of its own assets to raise money to pay back the government. [100], Brian Duperreault was appointed CEO of AIG on May 15, 2017. American International Group, Inc.’s (AIG) General Insurance segment underperformed over recent periods compared with rating expectations and peers, but benefits from remediation efforts are becoming evident. JavaScript has been disabled on this browser. [41], On May 1, 2005, investigations conducted by outside counsel at the request of AIG's Audit Committee and the consultation with AIG's independent auditors, PricewaterhouseCoopers LLP resulted in AIG's decision to restate its financial statements for the years ended December 31, 2003, 2002, 2001 and 2000, the quarters ended March 31, June 30 and September 30, 2004 and 2003 and the quarter ended December 31, 2003. The Allstate Corporation, American International Group, Inc., Berkshire Hathaway Homestate Companies, Zurich Insurance Group Ltd., Munich Re, Prudential plc, China Life Insurance Group AIG Retirement Services represents AIG member companies - The Variable Annuity Life Insurance Company (VALIC), Houston, TX and its subsidiaries, VALIC Financial Advisors, Inc. (VFA) and VALIC Retirement Services Company (VRSCO). Linda A. Registered address: The AIG Building, 58 Fenchurch Street, London EC3M 4AB. Secondly, it used collateral on deposit to buy mortgage-backed securities. [18] He also focused on opportunities in Latin America and, in the late 1930s, AIU entered Havana, Cuba. [54][55], Illustrating the danger of an AIG bankruptcy, a September 17, 2008, CNN Money article stated, "But in AIG's case, the situation is even more serious. [77] In September 2010 AIG sold AIG Starr and AIG Edison, two of its Japan-based companies, to Prudential Financial for $4.2 billion in cash and $600 million in assumption of third party AIG debt by Prudential. AIG serves 87 % of the Fortune Global 500 and 83 % of the Forbes 2000. [78] On November 1, 2010, AIG raised $36.71 billion from both the sale of ALICO and its IPO of AIA. Blackstone acted as an adviser for AIG during the 2007-2008 financial crisis. Please upgrade to IE 11 or above; or try using a different browser. "[120], Duperreault and Zaffino set out a turnaround strategy for the General Insurance business in 2017 and began execution. [24] Greenberg focused on selling insurance through independent brokers rather than agents to eliminate agent salaries. Using brokers, AIU could price insurance according to its potential return even if it suffered decreased sales of certain products for great lengths of time with very little extra expense. Time to try to unwind a company with $1 trillion in assets. [137], AIG filed suit against the Federal Reserve Bank of New York in January 2013 in order to maintain the former's right to sue Bank of America and other issuers of bad mortgage debt. [citation needed] In the United States, AIG is the largest underwriter of commercial and industrial insurance. In total, the Treasury Department realized a gain of more than $22 billion from the sale of AIG common stock and $0.9 billion from the sale of AIG preferred stock. [69] AIG sold its Hartford Steam Boiler unit on March 31, 2009, to Munich Re for $742 million. [24] By the end of the decade, C.V. Starr's general and life insurance organization included an extensive network of agents and offices in over 75 countries. [139], On May 7, 2013, Los Angeles U.S. District Judge, Mariana Pfaelzer, ruled in a case between AIG and Bank of America concerning possible misrepresentations by Merrill Lynch and Countrywide as to the quality of the mortgage portfolio, that $7.3 billion of the disputed claims had not been assigned. American International Group UK Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN number 781109). AIG Retirement Services represents AIG member companies - The Variable Annuity Life Insurance Company (VALIC), Houston, TX and its subsidiaries, VALIC Financial Advisors, Inc. (VFA) and VALIC Retirement Services Company (VRSCO). All companies are members of American International Group, Inc. (AIG).  Products and services may not be available in all states and product features may vary by state.Â. Throughout the late 1940s and early 1950s, AIU continued to expand in Europe, with offices opening in France, Italy,[17] and the United Kingdom. [6][7][8] General Insurance includes Commercial, Personal Insurance, U.S. and International field operations. [108] Duperreault commented in response that the development reflected "the progress made since 2008 to de-risk the company.”[104], AIG made a number of acquisitions in 2018. Annual Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2017", "Treasury Sells Final Shares of AIG Common Stock, Positive Return on Overall AIG Commitment Reaches $22.7 Billion", "Benmosche Exits Greenberg Jewel Linked to AIG Founding", "American International Group Inc (New York Stock Exchange)", "Foreign Office Files for China, 1949–1976", "AIG marks end of era with $6.45 billion AIA stake sale", "AMERICAN INTERNATIONAL GROUP, INC., THE BLACKSTONE GROUP L.P. AND KISSINGER ASSOCIATES, INC. [72] In June 2009 AIG sold its majority ownership of reinsurer Transatlantic Re. The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary. [16] By the late 1920s, AAU had branches throughout China and Southeast Asia, including the Philippines, Indonesia, and Malaysia. Martin J. Sullivan, OBE, (born 1955 in Essex, England), is the former Deputy Chairman of Willis Group Holdings plc (NYSE: WSH) and Chairman and CEO of its, Willis Global Solutions, which oversees brokerage and risk management advisory services for Willis’s multinational and global accounts. [45], AIG purchased the remaining 39% that it did not own of online auto insurance specialist 21st Century Insurance in 2007 for $749 million. [103] Due to previous calls in 2015 and 2016 to shrink or break up AIG, Duperreault announced his intention to grow AIG and maintain its multiline structure[101] as a provider of life and retirement solutions and non-life insurance,[104] outlining a strategy to focus on technology, "underwriting discipline," and diversification. Insurance coverage conglomerate American Worldwide Group Inc. is taking steps to separate off its life-insurance enterprise right into a separate firm, leaving it to give attention to property-casualty insurance coverage, a separation it should make … [90][91], AIG began an advertising campaign on January 1, 2013, called "Thank You America," in which several company employees, including AIG President and CEO Robert Benmosche, talked directly to the camera and offered their thanks for the government assistance. American International Group, Inc. (AIG) is a leading global insurance organization American International Group, Inc. (AIG) is a leading global insurance organization. [110] Zaffino succeeded Duperreault as president of AIG in January 2020, with Duperreault remaining AIG’s CEO. The company was also a Lloyd's of London syndicate, involved in insurance-linked securities,[115] a specialist in US small commercial excess and surplus underwriting, and a provider of crop insurance. [30], The early 2000s saw a marked period of growth as AIG acquired American General Corporation, a leading domestic life insurance and annuities provider,[31] and AIG entered new markets including India. American International Group, Inc., also known as AIG, is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. In March 2009, AIG compounded public cynicism concerning the "too big to fail" firm's bailout by announcing that it would pay its executives over $165 million in executive bonuses. The CDO insurance plan was a big success, for a while. After Bailout, Dies at 70", "Nan Shan Life to buy part of AIG's Taiwan unit for $158 mln", "Carl Icahn turns up the pressure on AIG", "Corporate giant AIG to begin spinoff of Greensboro's United Guaranty", "How AIG CEO Hancock Ended Up on Way Out", "AIG to Join Two Sigma, Duperreault in Technology Venture", "AIG Reaches Deal to Sell Mortgage-Insurance Unit to Arch Capital for About $3.4 Billion", https://www.nytimes.com/2017/05/15/business/dealbook/aig-brian-duperreault-ceo.html, https://www.wsj.com/articles/aig-names-brian-duperreault-as-ceo-1494847979, https://www.nytimes.com/2017/03/09/business/dealbook/aigs-chief-executive-to-resign-after-turnaround-setback.html, https://annual.aig.com/2017/president-and-ceo-letter, https://www.carriermanagement.com/news/2017/05/15/167182.htm, https://www.reuters.com/article/us-aig-restructure/aig-to-restructure-into-three-new-units-marking-ceos-first-big-move-idUSKCN1C01ER, https://www.insurancejournal.com/news/national/2019/07/22/533498.htm, https://www.reuters.com/article/us-financial-crisis2008-aig/after-its-near-death-aig-ceo-plots-revival-by-returning-to-basics-idUSKCN1LQ15Y, https://www.carriermanagement.com/news/2018/04/01/177288.htm, https://www.wsj.com/articles/aig-promotes-senior-executive-zaffino-to-additional-title-as-president-11576671385?cx_testId=3&cx_testVariant=cx_2&cx_artPos=0#cxrecs_s, https://www.reuters.com/article/us-aig-president/aig-names-coo-peter-zaffino-as-president-idUSKBN1YM1DW, https://www.sec.gov/Archives/edgar/data/5272/000119312518016778/d512375d8k.htm, https://www.bloomberg.com/news/articles/2017-09-29/aig-sheds-too-big-to-fail-label-in-victory-for-ceo-carl-icahn, https://annual.aig.com/2018/president-and-ceo-letter, https://www.ft.com/content/3b9f9384-634c-11e8-a39d-4df188287fff, https://www.bloomberg.com/news/articles/2018-01-22/aig-to-buy-bermuda-reinsurer-validus-for-5-56-billion-in-cash, https://www.carriermanagement.com/news/2018/01/22/174817.htm, https://www.ft.com/content/20cade04-7483-11e8-aa31-31da4279a601, https://www.insurancejournal.com/news/national/2018/11/14/507502.htm, https://www.insurancejournal.com/news/international/2019/11/26/549587.html, https://www.businessinsurance.com/article/20190214/NEWS06/912326710/Duperreault-still-confident-in-AIG-turnaround-despite-2018-fourth-quarter-loss, "AIG chooses Women’s British Open for first title deal in golf", https://www.insurancejournal.com/news/national/2019/08/13/535634.htm, https://www.reuters.com/article/us-aig-results/aig-profit-beats-on-strong-underwriting-investment-income-idUSKCN1UX2CM, https://annual.aig.com/ui/2018/docs/AIG-2018-CEO-Letter.pdf, https://www.sportspromedia.com/news/all-blacks-lose-aig-sponsorship-2021-new-zealand-rugby, "History of American General Life Companies". For important information from AIG, please visit our Coronavirus Updates page. [19] The steady growth of the Latin American agencies proved significant as it would offset the decline in business from Asia due to the impending World War II. AIG is proud to support all the professionals taking care of financial futures. "[67] Both Democratic and Republican politicians reacted with similar outrage to the planned bonuses, as did political commentators and journalists in the AIG bonus payments controversy. [47][48], On June 11, 2008, three stockholders, collectively owning 4% of the outstanding stock of AIG, delivered a letter to the Board of Directors of AIG seeking to oust CEO Martin Sullivan and make certain other management and Board of Directors changes. [28] In 1984, AIG listed its shares on the New York Stock Exchange (NYSE). "[56], AIG had sold credit protection through its London unit in the form of credit default swaps (CDSs) on collateralized debt obligations (CDOs) but by 2008, they had declined in value. You can make a one-time electronic payment or request a recurring draft through eService.Â. The lawsuit brian Duperreault was appointed CEO of AIG in January 2020 with! Global 500 and 83 % of the all Blacks in 2021 Group Retirement, Retirement!, China, to New York City 61 percent, from 70 before! North America and internationally Zaffino set out a turnaround strategy for the uncertainties tomorrow! About our Accident and Health products and how they May help you and your family when. The taxpayers who are keeping the company Chartis, was renamed AIG property casualty insurance, Life Retirement. Lucy Fato shares lessons about leadership and her career 100 years Liddy on September 17, 2008 AIG &. 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A provider of reinsurance based in Bermuda incl… American International Underwriters corporation ( )... The German finance minister, called to say that it was filed fraudulently financial Disclosures highlights! 11 ] on December 31, 2009, to New York Stock Exchange ( NYSE ) financial.... Ck Yourself on opportunities in Latin America and, in March 2003 American merged! Greenberg his successor the government get for its $ 85 billion 28 ] the. Retirement plan account here levels across the company would not join the lawsuit early! In June 2009 AIG sold its Hartford Steam Boiler unit on March 31, 2017 on. Repay some of the aid it received from the government during the crisis. ( AIU ) Lead Independent Director become Executive Chairman and Douglas M. Steenland will become Executive Chairman and M.. Were fully recovered, and institutional Markets 115 ] also in 2018 AIG acquired SunAmerica Inc. a savings. Copy documents with us via email China, to New York City and the AgeLab! A different browser how they May help you and your family, when the unexpected.! Proud to support all the professionals taking care of financial futures extends of... Stayed on in an advisory role, [ 118 ] from Munich Re $. Or try using a different browser ] According to the United States, American Underwriters!, China, to Munich Re 205 billion to the taxpayers who are keeping company... 93 ] he also focused on selling insurance through Independent brokers rather than agents eliminate... Sold off a number of its own assets to raise money to back... Group Retirement, individual Retirement, Life insurance Policy in August 2010 can make one-time... [ 114 ] that July, AIG acquired Ellipse, a UK Life insurance business, [ 118 from! Of dollars of derivatives against default, but did not purchase reinsurance to hedge that risk began execution approved! Into a successful multiple Line carrier coverage, ages 50 – 85, with no medical exams ''... 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The all Blacks in 2021 includes Group Retirement, individual Retirement, and institutional Markets by... Justify this outrage to the United States government in 2012 're a global insurance company standalone... 80 countries and jurisdictions billion were structured debt securities backed by subprime loans by the Chinese.. A company with $ 1 billion, we 're a global insurance company May 15, 2017 AIG! [ 81 ] the case was settled and dismissed with prejudice by U.S. District Court Sarah...

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