About American International Group, Inc.

No question about it -- AIG is BIG. Based in the US but with operations reaching around the globe, American International Group (AIG) is one of the world's largest insurance firms. Its subsidiaries provide general property/casualty insurance, life insurance and retirement services, and financial services to some 90 million commercial, institutional, and individual customers in more than 130 countries around the world. Commercial property/special risks products account for about 15% of the group's revenue. Best Buy, HP, and Nortek are among AIG's customers. The company traces its roots to 1919, when Cornelius Vander Starr established American Asiatic Underwriters in Shanghai.


AIG operates through four reportable segments: Commercial Insurance (property/special risks and liability and financial lines), Consumer Insurance (group retirement, individual retirement, life insurance, and personal insurance), Corporate, and Other. The Commercial Insurance and Consumer Insurance segments each account for about 45% of AIG's revenues.

Property/special risks policies are sold to commercial and individual clients around the world. Property products include commercial, industrial, and energy-related coverage and services for both natural and man-made disasters. Special risks products include aerospace, political risk, portfolio solutions, trade risk, marine, and surety insurance.

Domestic life insurance and retirement services businesses include VALIC, American General Life, and The United States Life Insurance Company in the City of New York. The group also offers single and flexible premium deferred fixed annuities and single premium immediate and delayed-income annuities and variable annuities and other income products.

AIG companies serve more than 90 million customers, which includes commercial, institutional, and individual customers.

Geographic Reach

AIG and its subsidiaries have approximately 180 offices in the US, as well as 500 offices in 70 international countries in the Americas, Europe, Africa, the Middle East, and the Asia/Pacific region. About 70% of AIG's annual revenues come from sales in the domestic market.

The company organizes its operations into three major geographic regions: Americas, Asia/Pacific, and Europe, Middle East, and Africa (EMEA).

Sales and Marketing

AIG markets its retail products directly to individual consumers through independent and career insurance agents, retail banks, direct-to-consumer platforms, and national, regional, and independent broker-dealers.

The group distributes its products every way possible -- from specialty brokers, independent agents, financial advisors, banks, direct to the consumer, and through affinity groups. AIG maintains direct sales groups consisting of representatives affiliated with its VALIC and American General subsidiaries.

Mortgage guaranty products are marketed to a variety of mortgage originators and through mortgage lenders, finance agencies, and credit unions. Institutional market products are primarily sold through specialized marketing and consulting firms and structured settlement brokers.

Financial Performance

Revenue has been slipping down at AIG for the past few years. It decreased 11% to $52.4 billion in 2016 due to declines in premiums (primarily commercial premiums), policy fees, and other income, as well as some $1.5 billion in net realized capital losses.

Net income has also been declining. In 2016 the company posted a loss of $84 million (versus net income of $2.2 billion in 2015). In addition to the lower revenue, factors such as losses from continuing operations drove that net loss.

Cash flow from operations followed suit, declining 17% to $2.4 billion, primarily due to that year's net loss.


AIG has divested nearly all of its non-insurance operations. In mid-2016, AIG sold broker-dealer unit AIG Advisory Group to a group of investors (Lightyear Capital and PSP Investments). At the end of the year, the group sold mortgage insurance unit United Guaranty Corporation to Arch Capital for $3.4 billion. Other divestitures included a controlling stake in managing general agent NSM, its minority stake in Ascot Underwriting Holdings, and a portion of its life settlement portfolio. The company has agreed to sell other assets, as well.

In 2016, AIG agreed to sell its local operations in Argentina, Chile, Colombia, Uruguay, Venezuela, and Turkey, as well as the renewal rights for the local business written by its Central and Eastern European operations, to Fairfax Financial Holdings for some $240 million. AIG plans to work with Fairfax to support its multinational customers operating in these countries. The company then agreed to sell its Japan life insurance business to Pacific Century Group's insurance unit FWD Group. It will continue to offer property/casualty coverage in Japan.

These divestitures fall short of the major breakup for which some shareholders are pushing. Until mid-2017, the group was dubbed a systemically important financial institution (SIFI), making AIG subject to increased scrutiny by regulators. Other non-bank SIFI's have been downsizing, refocusing on core operations and removing themselves from the heightened oversight. However, AIG has thus far resisted pressure to undergo a major split.

In September 2017, new management announced another major restructuring. AIG will have three primary segments: General Insurance, Life and Retirement, and Technology. (The Commercial and Consumer Insurance businesses will no longer be separate.) The change reflects a greater focus on AIG's underwriting capabilities rather than the relationship AIG shares with its customers.

Going forward, the company's primary goals include growth of assets under management, increasing life insurance in-force, and enhancing return on equity by simplifying the legal entity structure and improving operational efficiencies. AIG is particularly focused on improving its business portfolio by using enhanced data and analytics to provide better pricing and underwriting.

Other key strategic efforts include leveraging its extensive distribution organization of more than 300,000 financial professionals, expanding its relationships with key distribution partners, and adopting a more customer-centric approach.

AIG is also focused on expansion in the Chinese-American market. It has been recruiting several hundreds of life insurance agents to address the needs of that community.

Mergers and Acquisitions

With its reorganization all but complete, AIG has once again begun building up operations through acquisitions. In 2015 the company bought the UK-based Ageas Protect Limited from Belgian insurer Ageas Group for some €250 million. The newly acquired unit became part of AIG's Global Consumer business, which offers personal accident, health, and travel coverage, as well as customized insurance plans for wealthy individuals.

Also that year, AIG bought Laya Healthcare, the second-largest health insurer in Ireland, for an undisclosed amount. Laya Healthcare became part of AIG's Health business.

The company acquired managing general agent and administrator NSM Insurance Group for an undisclosed price in 2015. The following year, AIG sold a controlling stake in NSM to investment firm ABRY Partners. AIG and ABRY now work jointly to expand NSM's platform.

In early 2018 AIG agreed to buy Bermuda-based reinsurance firm Validus for $5.56 billion. Coming shortly after AIG's being deemed no longer "too big to fail", the deal points to the group's plans to begin expansion activities in full force. It also marks the company's re-entry into the Lloyd's insurance market.

Company Background

AIG held the spotlight for staggering losses and government bailouts during the Great Recession. In exchange for $161.3 billion in bailouts, at one point the US government held more than 90% of the company. An exit plan of repayments and stock sales gradually shrunk that number. By 2013 the US Treasury sold all of its AIG shares.

Having crawled its way back from the edge of an abyss, AIG streamlined operations and was rewarded with nice black ink on its ledgers.

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American International Group, Inc.

175 Water St Rm 1800
New York, NY 10038-4969
Phone: 1 (212) 770-7000


  • Employer Type: Public
  • Stock Symbol: AIG
  • Stock Exchange: NYSE
  • President, CEO, and Director: Brian Duperreault
  • EVP and CIO: Martha J. Gallo
  • Chairman: Douglas M. Steenland
  • 2016 Employees: 56,400

Major Office Locations

  • New York, NY

Other Locations

  • Birmingham, AL
  • Foley, AL
  • Huntsville, AL
  • Mobile, AL
  • Tuscaloosa, AL
  • Little Rock, AR
  • Phoenix, AZ
  • Tempe, AZ
  • Aliso Viejo, CA
  • Bakersfield, CA
  • Benicia, CA
  • Coalinga, CA
  • Daly City, CA
  • El Cajon, CA
  • Los Angeles, CA
  • Mount Shasta, CA
  • Murrieta, CA
  • San Diego, CA
  • San Jose, CA
  • Victorville, CA
  • Walnut Creek, CA
  • Woodland Hills, CA
  • Berthoud, CO
  • Centennial, CO
  • Fort Collins, CO
  • Greeley, CO
  • Pueblo, CO
  • Maitland, FL
  • Miami, FL
  • Pensacola, FL
  • Tampa, FL
  • Wellington, FL
  • Alpharetta, GA
  • Atlanta, GA
  • Blakely, GA
  • Carrollton, GA
  • Fort Oglethorpe, GA
  • Macon, GA
  • Washington, GA
  • Shelley, ID
  • Bement, IL
  • Champaign, IL
  • Glenview, IL
  • O Fallon, IL
  • Oak Lawn, IL
  • Plainfield, IL
  • Schaumburg, IL
  • South Holland, IL
  • Spring Valley, IL
  • Crown Point, IN
  • Indianapolis, IN
  • Seymour, IN
  • Hugoton, KS
  • Pittsburg, KS
  • Wichita, KS
  • Hazard, KY
  • Hopkinsville, KY
  • Paintsville, KY
  • Pineville, LA
  • Baltimore, MD
  • Cumberland, MD
  • Allen Park, MI
  • Farmington Hills, MI
  • Flint, MI
  • Marquette, MI
  • Monroe, MI
  • Warren, MI
  • Westphalia, MI
  • East Grand Forks, MN
  • Forest Lake, MN
  • Rochester, MN
  • Worthington, MN
  • Independence, MO
  • Saint Louis, MO
  • Springfield, MO
  • Corinth, MS
  • Tupelo, MS
  • Dunn, NC
  • Statesville, NC
  • Wilmington, NC
  • Warren, NH
  • Berkeley Heights, NJ
  • Cresskill, NJ
  • Jersey City, NJ
  • Moorestown, NJ
  • Neptune, NJ
  • Ridgewood, NJ
  • West Deptford, NJ
  • Las Vegas, NV
  • Reno, NV
  • Brooklyn, NY
  • Latham, NY
  • Amherst, OH
  • Canton, OH
  • Cincinnati, OH
  • Maumee, OH
  • Ontario, OH
  • El Reno, OK
  • Muskogee, OK
  • Oklahoma City, OK
  • Hillsboro, OR
  • Medford, OR
  • Clarks Summit, PA
  • Conshohocken, PA
  • Johnstown, PA
  • Mc Kees Rocks, PA
  • New Kensington, PA
  • Pittsburgh, PA
  • Reading, PA
  • Washington, PA
  • Bluffton, SC
  • Conway, SC
  • Florence, SC
  • Greenville, SC
  • Leesville, SC
  • Walterboro, SC
  • Sioux Falls, SD
  • Brentwood, TN
  • Cleveland, TN
  • Franklin, TN
  • Greeneville, TN
  • Kingsport, TN
  • Morristown, TN
  • Nashville, TN
  • Springfield, TN
  • Addison, TX
  • Amarillo, TX
  • Austin, TX
  • Bay City, TX
  • Bryan, TX
  • Dallas, TX
  • Fort Worth, TX
  • Houston, TX
  • Irving, TX
  • Lewisville, TX
  • Longview, TX
  • Midland, TX
  • Tyler, TX
  • Chesapeake, VA
  • Covington, VA
  • Franklin, VA
  • Mechanicsville, VA
  • South Prince George, VA
  • Bellevue, WA
  • Lynden, WA
  • Port Townsend, WA
  • Seattle, WA
  • Spokane, WA
  • Appleton, WI
  • Middleton, WI
  • Bridgeport, WV
  • Fairmont, WV
  • Huntington, WV
  • Ciudad De Buenos Aires, Argentina
  • Montréal, Canada
  • Vancouver, Canada
  • Beijing, China
  • Ahmedabad, India
  • Bengaluru, India
  • Chennai, India
  • Kolkata, India
  • Mumbai, India
  • New Delhi, India
  • Pune, India
  • Vadodara, India
  • Chuo-Ku, Japan
  • Sumida-Ku, Japan
  • Hermosillo, Mexico
  • Moscow, Russia
  • Sharjah, United Arab Emirates
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