American International Group Inc., commonly known as AIG, is one of the largest multinational insurance and financial services corporations in the world. The company was founded in Shanghai, China in 1919 by an American businessman named Cornelius Vander Starr. Despite its initial overseas roots, AIG relocated its headquarters to New York City in 1939, where it remains today. The company has a significant presence in about 80 countries and jurisdictions around the globe, making it truly international in its reach.
AIG is best known for its extensive range of insurance products including general insurance, life insurance, retirement solutions, and other financial services. As of 2021, the company consists of two main segments: General Insurance, and Life and Retirement.
The General Insurance division includes categories such as commercial, personal insurance, U.S. and international field operations, Global specialty, and Reinsurance. AIG is considered a market leader for commercial and other types of property-casualty insurance. This division provides insurance for businesses of all sizes, individuals, and other institutions, offering a range of products like workers’ compensation, liability for management and professional liability, and more.
The Life and Retirement segment provides insurance and investment-oriented products and services in the US. It offers retirement products to individuals and groups, including fixed and variable annuities, and financial planning and broker-dealer services. It also provides term life and universal life insurance.
AIG's rich history includes both substantial growth and major challenges. The most significant obstacle came during the 2008 global financial crisis when AIG faced severe liquidity issues due to its exposure to the subprime mortgage crisis. To avoid a complete collapse, AIG accepted a federal bailout of $182 billion, an act that provoked significant controversy. It took AIG until 2012 to fully repay these loans, marking an important milestone in its recovery effort.
Despite this setback, AIG continues to be a dominant player in the global insurance industry. The company's resilience and ability to adapt to changes have proved key to maintaining its extensive global operations, serving millions of customers with a wide range of insurance and financial products. Today, under the leadership of CEO Peter Zaffino, AIG continues to focus on improving its operations, risk management, and financial position while providing high-quality service to its clients around the world.