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AIG Paper

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AIG Paper
Abstract

AIG traces its root to 1919, when American Cornelius Vander Starr established a general insurance agency, American Asiatic Underwriters, in Shanghai, China. Since then, an enterprising spirit, ingenuity, and tenacity have built the company into one of the world’s leading insurers. Today, AIG is focused on what it has been known for since the beginning: the willingness and ability to provide insurance coverage to meet the diverse needs of its clients. American International Group, Inc. (AIG) is an international insurance company, serving customers in more than 130 countries. AIG companies serve commercial, institutional and individual customers through property-casualty networks of any insurer. In addition, AIG companies are providers of life insurance and retirement services in the United States. AIG’s segments include Charities, Sun America Financial Group (Sun America), Aircraft Leasing and Other Operations. On February 1, 2011 and August 18, 2011, the Company divested its Japan-based life insurance subsidiaries, AIG Star Life Insurance Company Ltd. (AIG Star) and AIG Edison Life Insurance Company (AIG Edison), and Nan Shan Life Insurance Company, Ltd. (Nan Shan). On October 7, 2011, ILFC completed the acquisition of Aero Turbine from AerCap, Inc. Aero Turbine is a providers of aircraft engines, aircraft and engine parts and supply chain solutions. On December 3, 2012, the Company 's life and retirement business, AIG Life and Retirement, acquired Woodbury Financial Services, Inc. from The Hartford Financial Services Group Inc. the real question is what is wrong with AIG. In this paper we will discuss the problems with the practices that caused them to reorganize.

There’s nothing fundamentally wrong with the core insurance business units of American International Group Inc. (AIG). Nothing at all. What imploded the venerable insurance giant was an accumulation of misplaced bets on credit default swaps. By the best estimates of the International


Cited: How AIG 's Collapse Began a Global Run on the Banks By Porter Stansberry Saturday, October 4, 2008 By Shah Gilani, Capital Wave Strategist, Money Morning September 22, 2008 http://moneymorning.com/2008/09/22/credit-deaultf-swaps-2/
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