American International Group, Inc. – aswell accepted as AIG – is an American bunch allowance association with added than 88 actor barter in 130 countries. AIG companies apply over 64,000 humans in 90 countries. The aggregation operates through three businesses: AIG Property Casualty, AIG Activity and Retirement and United Agreement Association (UGC). AIG Property Casualty provides allowance articles for commercial, institutional and alone customers. AIG Activity and Retirement provides activity allowance and retirement casework in the United States. UGC focuses on mortgage agreement allowance and mortgage insurance. AIG aswell focuses on all-around basic markets operations, absolute investment and retained interests.
AIG was a axial amateur in the banking crisis of 2008. It was bailed out by the federal government for $180 billion, and the government took control. The Banking Crisis Inquiry Commission (FCIC) of the US government assured AIG bootless primarily because it awash massive amounts of allowance after ambiguity its investment. Its astronomic sales of acclaim absence swaps were fabricated after putting up antecedent collateral, ambience abreast basic reserves, or ambiguity its acknowledgment — a abstruse abortion in accumulated governance, decidedly its risk-management practices.
AIG’s accumulated address are in New York City, its Europe, Middle East, and Africa (EMEA) address are in London, and its Asian address are in Hong Kong. The aggregation serves 98% of the Fortune 500 companies, 96% of Fortune 1000, and 90% of Fortune All-around 500, and insures 40% of Forbes 400 Richest Americans. AIG was ranked 40th better aggregation in the 2014 Fortune 500 list. According to the 2014 Forbes All-around 2000 list, AIG is the 42nd-largest accessible aggregation in the world. On March 31, 2015 AIG had a bazaar assets of $75.04 billion.
The aboriginal years: 1919 to 1945
AIG traces its roots aback to 1919, if American Cornelius Vander Starr (1892-1968) accustomed a accepted allowance agency, American Asiatic Underwriters (AAU), in Shanghai, China.[8] Business grew rapidly, and two years later, Starr formed a activity allowance operation.[9] By the backward 1920s, AAU had branches throughout China and Southeast Asia, including the Philippines, Indonesia, and Malaysia.[10] In 1926, Mr. Starr opened his aboriginal appointment in the United States, American All-embracing Underwriters Corporation (AIU).[11] He aswell focused on opportunities in Latin America and, in the backward 1930s, AIU entered Havana, Cuba.[12] The abiding advance of the Latin American agencies accepted cogent as it would account the abatement in business from Asia due to the approaching World War II.[8] In 1939, Mr. Starr confused his address from Shanghai, China, to New York City.
International and calm expansion: 1946 to 1959
After World War II, American All-embracing Underwriters (AIU) entered Japan[8] and Germany, to accommodate allowance for American aggressive personnel. Throughout the backward 1940s and aboriginal 1950s, AIU connected to aggrandize in Europe, with offices aperture in France, Italy,[10] and the United Kingdom. In 1952, Mr. Starr began to focus on the American bazaar by accepting Globe & Rutgers Fire Allowance Aggregation and its subsidiary, American Home Fire Assurance Company. By the end of the decade, C.V. Starr's accepted and activity allowance alignment included an all-encompassing arrangement of agents and offices in over 75 countries.
Reorganization and specialization: 1960 to 1979
In 1960, C.V. Starr assassin Maurice R. Greenberg to advance an all-embracing blow and bloom business.[18] Two years later, Mr.Greenberg reorganized one of C.V. Starr’s U.S. backing into a acknowledged assorted band carrier.[17] Greenberg focused on affairs allowance through absolute brokers rather than agents to annihilate abettor salaries. Using brokers, AIU could amount allowance according to its abeyant acknowledgment even if it suffered decreased sales of assertive articles for abundant lengths of time with actual little added expense. In 1967, American All-embracing Group, Inc. (AIG) was congenital as a accumulation awning alignment for a lot of of C.V. Starr’s accepted and activity allowance businesses. In 1968, Starr called Greenberg his successor. The aggregation went accessible in 1969.
The 1970s presented abounding challenges for AIG as operations in the Middle East and Southeast Asia were concise or accomplished altogether due to the alteration political landscape. However, AIG connected to aggrandize its markets by introducing specialized energy, transportation, and shipment articles to serve the needs of alcove industries. By 1979, with a growing workforce and a common arrangement of offices, AIG offered audience above abstruse and accident administration abilities in an more aggressive marketplace.
New opportunities and directions: 1980 to 1999
During the 1980s, AIG connected accretion its bazaar administration and common arrangement by alms a advanced ambit of specialized products, including abuse liability and political risk. In 1984, AIG listed its shares on the New York Stock Exchange (NYSE). Throughout the 1990s, AIG developed new sources of assets through assorted investments, including the accretion of All-embracing Lease Finance Corporation (ILFC), a provider of busy aircraft to the airline industry.[8] In 1992, AIG accustomed the aboriginal adopted allowance authorization accepted in over 40 years by the Chinese government. Within the U.S., AIG acquired Sun America Inc. a retirement accumulation company, in 1999.
Further amplification and decline: 2000 to 2012
The aboriginal 2000s saw a apparent aeon of advance as AIG acquired American Accepted Corporation, a arch calm activity allowance and annuities provider, and AIG entered new markets including India. In February 2000, AIG created a cardinal advising adventure aggregation with the Blackstone Group and Kissinger Associates "to accommodate banking advising casework to corporations gluttonous top akin absolute cardinal advice. AIG was an broker in Blackstone from 1998 to March 2012, if it awash all of its shares in the company. Blackstone acted as an adviser for AIG during the 2007-2008 banking crisis.
In November 2004, AIG accomplished a US$126 actor adjustment with the U.S. Securities and Exchange Commission and the Justice Department partly absolute a amount of authoritative matters, but the aggregation accept to still abet with board continuing to delving the auction of a non-traditional allowance product.
Accounting scandal
In 2005, AIG became affected in a alternation of artifice investigations conducted by the Securities and Exchange Commission, U.S. Justice Department, and New York State Attorney General's Office. Greenberg was ousted amidst an accounting aspersion in February 2005. The New York Attorney General's analysis led to a $1.6 billion accomplished for AIG and bent accuse for some of its executives.
On May 1, 2005, investigations conducted by alfresco admonition at the appeal of AIG's Audit Committee and the appointment with AIG's absolute auditors, PricewaterhouseCoopers LLP resulted in AIG's accommodation to recapitulate its banking statements for the years concluded December 31, 2003, 2002, 2001 and 2000, the abode concluded March 31, June 30 and September 30, 2004 and 2003 and the division concluded December 31, 2003. On November 9, 2005, the aggregation was said to accept delayed its third-quarter balance address because it had to recapitulate beforehand banking results, to actual accounting errors.