Who is AIG?
American International Group, Inc. (AIG) is a leading provider of insurance and retirement solutions. Headquartered in New York City, AIG has principal offices for its international operations located in London, Hong Kong and La Defénse. AIG companies serve commercial, institutional and individual customers in more than 130 countries and employs 63,000. Through its multiple company segments, AIG also provides services in the life insurance and retirement services industries. AIG is divided into three major segments. These segments include The Chartis segment, SunAmerica Financial Group, and Aircraft Leasing. The Chartis segment offers a broad range of casualty and liability insurance products on various commercial, institutional, and individual levels. The SunAmerica Financial Group offers life insurance and retirement services including, term and universal life, accident and health, variable and fixed annuities, as well as mutual funds and other financial planning products. The final segment, Aircraft Leasing, acquires and leases commercial jet aircrafts to various airlines.
AIG first started out in Shanghai by a young American entrepreneur named Cornelius Vander Starr in 1919. He founded the AAU, or American Asiatic Underwriters, which was a small insurance agency that represented a few American insurance companies based in Shanghai. Seven years later, in 1926, Starr founded the American International Underwriters (AIU) in New York, which was his first office in America. By 1933, Starr decided to move his companies’ headquarters to New York permanently because of World War II. AIU rapidly expanded across 75 countries during the 1950’s. As it’s known today, AIG, was formed in the 1960s, when American Home began to be an important commercial and industrial property and casual insurer. Through out the 1980s and into the 90s AIG continued diversification of financial services. During the financial crisis of the 2000s, AIG, the world's largest insurance company and a major participant in the global trade of derivatives and other financial instruments, was encountering severe liquidity problems, primarily as a result of losses on its mortgage-related investment portfolio and collateral calls on CDs and other financial contracts. By mid-September 2008, these liquidity pressures brought the firm to the verge of collapse. The United States government bailed out AIG to protect the U.S. and global economies and the American people from the devastating effects that its disorderly failure would have caused in the economic environment. In late 2012, AIG finished paying off its government debt, and Fed sold off its last position in AIG to completely remove itself from the company. The company has also begun to make a concerted effort to sell of its holdings in the Aircraft leasing department in an attempt to become more focused on its core competencies. IPO: December 17, 1969
Re- IPO: May, 2011 at $29/ Share
Exchange: NYSE 1984
Recent Business and Development:
AIG has invested a large amount of capital into an agreement with RiskAnalytics LLC to provide cyber risk mitigation services. This will supply AIG clients with a new layer of protection designed to reduce exposure to computer hackers. Every time someone buys a cyber-liability policy from AIG, free with that insurance purchase comes an annual subscription to AutoShun, which is a hardware appliance populated with RiskAnalytics’ shun list. AIG policyholders also get Cyber Edge Risk Tool, which is an online software and service framework designed to help clients train employees in cyber threat prevention and manage the human element involved. This shows that AIG is committed to keeping up with the current trends and also creates an incentive for web site owners to use AIG Cyber Liability Insurance. Recently, AIG signed a 10-year contract worth $55 million with Europe’s leading bank...
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