American International Group

American International Group, Inc.
	File:American International Group logo.svg AIG logo
Company type	Public
Industry	Finance, Insurance
Founded	December 19, 1919; 106 years ago in Shanghai, China
Founder	Cornelius Vander Starr
Headquarters	New York City, United States
Area served	Worldwide (more than 80 countries)
Key people	Peter Zaffino (Chairman and CEO)
Products	General insurance, life insurance, retirement solutions, investment management, mortgage lending, mutual funds
Number of employees	25,200 (2023)
Website	www.aig.com

American International Group, Inc. (AIG) is a global finance and insurance enterprise based in the United States, with operations spanning more than 80 countries. As of 2023, the workforce numbered around 25,200 employees. The company’s operations are organized into three primary divisions: general insurance, life & retirement, and an independent technology-driven subsidiary. The General Insurance segment provides both commercial and personal insurance products across domestic and international markets. Meanwhile, Life & Retirement offers group and individual retirement solutions, life insurance policies, and services for institutional clients.

AIG’s main headquarters are situated in New York City, supported by numerous offices worldwide that facilitate its broad operational reach. The firm serves 87% of the Fortune Global 500 companies and 83% of those listed in the Forbes 2000, underscoring its extensive market presence. In 2018, AIG was ranked 60th on the Fortune 500 list; according to the 2016 Forbes Global 2000 rankings, it was the 87th largest publicly traded company globally.

From a financial perspective, AIG reported revenues of $27.25 billion for 2024, with an operating income of $3.87 billion but recorded a net loss of $1.43 billion. The company’s total assets were valued at $161.3 billion, while shareholder equity rose to $45.52 billion. Globally, it employs approximately 22,000 professionals and includes subsidiaries such as TATA AIG within its corporate structure.

Established in 1919 by entrepreneur Cornelius Vander Starr in Shanghai, China, AIG has grown through strategic leadership and acquisitions to become a dominant force in the financial services sector. Its strategy emphasizes diversification across various insurance categories including general insurance, health coverage, auto insurance, travel protection, homeowners insurance, life insurance, mortgage lending, investment management, and mutual funds.

AIG has earned recognition in the industry through sponsorships like the AIG Women's Open golf tournament and has been listed among DiversityInc's Top 50 Companies for Diversity for six straight years as of 2023.

During the financial crisis of 2008, AIG received a substantial $180 billion bailout from the Federal Reserve due to significant exposure to unhedged credit default swaps. The federal government temporarily took control of the company; however, by 2012 AIG had reimbursed $205 billion to the U.S. government, resulting in a positive return for taxpayers.

Leadership includes Chairman and CEO Peter Zaffino, who has spearheaded recent organizational restructuring aimed at improving operational efficiency and fostering business expansion through a more streamlined corporate framework. This leadership approach strengthens AIG’s competitive positioning in global insurance markets and investment management services.

1919–1945: early years

On December 19, 1919, American businessman Cornelius Vander Starr (1892–1968) founded American Asiatic Underwriters (AAU), a general insurance agency based in Shanghai, China. The company experienced swift growth; within two years Starr introduced a life insurance division. By the late 1920s, AAU had established branches across China and Southeast Asia including locations in the Philippines, Indonesia, and Malaysia. In 1926, Starr launched his first U.S. office under the name American International Underwriters Corporation (AIU) while simultaneously expanding into Latin American markets; by the late 1930s AIU had set up operations in Havana, Cuba. Expansion into Latin America helped counterbalance declines in Asian markets caused by World War II. In 1939 Starr moved AIG’s headquarters from Shanghai to New York City to position the company for global operations centered in the United States.

1945–1959: Expansion in International and Domestic Markets

Following the conclusion of World War II, American International Underwriters (AIU) extended its operations into Japan and Germany to provide insurance coverage for American military personnel stationed abroad. During the late 1940s and early 1950s, AIU further broadened its footprint across Europe by establishing offices in France, Italy, and the United Kingdom. In 1952, Starr focused on strengthening its presence in the U.S. market through the acquisition of Globe & Rutgers Fire Insurance Company along with its subsidiary, American Home Fire Assurance Company. By the end of the decade, C.V. Starr’s insurance network had expanded to encompass more than 75 countries worldwide.

1959–1979: Corporate Restructuring and Focused Expertise

In 1960, C.V. Starr enlisted Hank Greenberg to spearhead the creation of an international accident and health insurance division. Two years later, Greenberg restructured a U.S.-based holding company into a successful multiline insurer, shifting distribution from traditional agents to independent brokers to lower expenses and allow for more adaptable pricing models. In 1967, American International Group, Inc. (AIG) was established as a consolidated organization overseeing most of Starr’s insurance operations. Starr appointed Greenberg as his successor in 1968, and AIG went public in 1969.

Throughout the 1970s, geopolitical developments necessitated AIG to reduce its activities in regions such as the Middle East and Southeast Asia. Despite these challenges, the company pursued growth by introducing specialized insurance solutions tailored to energy, transportation, and maritime sectors.

1979–2000: Exploring New Markets and Strategic Shifts

During the 1980s, AIG expanded both its global reach and product offerings by incorporating coverage options like pollution liability and political risk insurance. The company listed on the New York Stock Exchange in 1984. In the 1990s, AIG diversified its income sources through acquisitions including International Lease Finance Corporation (ILFC), a prominent aircraft leasing firm. In 1992, AIG became the first foreign insurer granted a license by China in over four decades. On the domestic front, it acquired SunAmerica Inc., a retirement savings company, in 1999.

Expansion

The early years of the 2000s witnessed substantial expansion as AIG acquired American General Corporation, a leading U.S. provider of life insurance and annuities, while also entering emerging markets such as India. In 2000, AIG collaborated with Blackstone Group and Kissinger Associates to establish a strategic advisory venture delivering high-level financial consulting services. AIG maintained an investment stake in Blackstone from 1998 until divesting in 2012; notably, Blackstone provided advisory support to AIG during the financial crisis of 2008.

In 2003, American General merged with Old Line Life Insurance Company. Throughout that decade, AIG made significant investments aimed at Russia’s economic recovery following its financial crisis, with CEO Maurice Greenberg engaging directly with Russian officials to foster stronger economic relations.

In November 2004, AIG resolved regulatory matters with the U.S. Securities and Exchange Commission and Department of Justice by agreeing to pay $126 million related to issues involving non-traditional insurance products; this resolution was part of ongoing cooperation with regulatory investigations.

Accounting scandal

In 2005, AIG became the subject of fraud investigations conducted by the Securities and Exchange Commission, the U.S. Department of Justice, and the New York State Attorney General's Office. Amid this controversy, CEO Maurice "Hank" Greenberg was removed from his position in February 2005. The inquiry by the New York Attorney General culminated in a $1.6 billion penalty levied against AIG and criminal charges filed against several company executives.

On May 1, 2005, after an internal audit and discussions with PricewaterhouseCoopers LLP, AIG revised its financial reports spanning multiple years and quarters from 2000 through 2004 to rectify accounting inaccuracies. This process caused a postponement in releasing third-quarter earnings in November 2005 as the company finalized these restatements.

The scandal had a profound effect on AIG’s financial results and organizational framework, triggering leadership restructuring and heightened regulatory oversight.

Martin J. Sullivan assumed the role of CEO in 2005, having begun his career at AIG as a clerk in London in 1970. During his tenure, AIG took on substantial mortgage-related exposure by insuring derivatives without sufficient reinsurance coverage and investing collateral in mortgage-backed securities. The downturn in the mortgage market during 2007–2008 compelled AIG to cover insurance claims and collateral deficits.

In 2007, AIG completed the acquisition of the remaining 39% stake in online auto insurer 21st Century Insurance for $749 million. Facing financial difficulties during the 2008 economic downturn, AIG rebranded this insurance division as 21st Century Insurance.

On June 11, 2008, shareholders representing 4% of AIG’s stock demanded the dismissal of CEO Sullivan along with changes to the board. Sullivan stepped down on June 15 following significant financial losses and a decline in stock value. He was succeeded by Robert B. Willumstad, who had been chairman since 2006; however, Willumstad was replaced by Ed Liddy on September 17, 2008, under governmental insistence. Later, on August 3, 2009, Bob Benmosche was appointed CEO to follow Liddy’s retirement earlier that year.

2008 liquidity crisis and government bailout

Towards the end of 2008, the U.S. government intervened with an $180 billion bailout of AIG, effectively taking control amid fears that its collapse would jeopardize major financial institutions such as Goldman Sachs, Morgan Stanley, Bank of America, Merrill Lynch, and numerous European banks. The Financial Crisis Inquiry Commission later identified AIG’s downfall as primarily resulting from extensive sales of credit default swaps (CDSs) lacking sufficient collateral or risk controls—a clear failure in corporate governance. The deregulation of over-the-counter derivatives further diminished regulatory oversight, amplifying these risks.

AIG’s Financial Products division, led by Joseph Cassano in London, had insured $441 billion worth of securities through CDSs, including $57.8 billion tied to subprime mortgage loans. As these assets depreciated sharply, AIG faced mounting collateral calls that triggered a liquidity crisis beginning September 16, 2008. The Federal Reserve Bank of New York established an $85 billion secured credit facility to avert collapse; this arrangement included warrants for a 79.9% equity stake and suspension of dividend payments. This intervention represented the largest government bailout ever provided to a private enterprise in U.S. history.

In March 2009, public outrage erupted when AIG announced executive bonuses totaling over $165 million despite receiving federal assistance. Political figures such as President Barack Obama criticized these payments as inappropriate considering taxpayer support. This controversy intensified examination of AIG’s governance practices and risk management culture.

To repay government loans and streamline its operations amid challenging market conditions, AIG began divesting assets. Notable sales included the Hartford Steam Boiler unit to Munich Re for $742 million (March 2009), the sale of 21st Century Insurance to Farmers Insurance Group for $1.9 billion (April 2009), majority shares in reinsurer Transatlantic Re (June 2009), and portions of its asset management arm (PineBridge Investments) to Pacific Century Group for $500 million (2010). In March 2010, AIG sold American Life Insurance Co. (ALICO) to MetLife for $15.5 billion in cash and stock.

Additional disposals involved selling an 80% stake in American General Finance to Fortress Investment Group (August 2010), Japan-based subsidiaries AIG Starr and AIG Edison to Prudential Financial for $4.8 billion (September 2010), and Taiwanese insurer Nan Shan Life for $2.16 billion (January 2011). Proceeds from these transactions contributed significantly towards repaying bailout funds; by November 2010, AIG had generated $36.7 billion through asset sales and initial public offerings.

Despite these measures, AIG posted increasing losses in 2011 which led to a nearly 50% decline in its share price and prompted a board-approved $1 billion share repurchase initiative. Nearly a decade after the bailout, in 2017, the U.S. Financial Stability Oversight Council removed AIG from its list of systemically important financial institutions deemed too big to fail.

This era underscores AIG’s strategic transition through asset divestiture and corporate restructuring aimed at regaining financial stability and reducing reliance on government support while managing intense public scrutiny and regulatory pressure.

2012–2016: contemporary period

On May 7, 2012, the U.S. Department of the Treasury sold 188.5 million AIG shares, generating $5.8 billion and decreasing its ownership from 70% to 61%. In September of that year, AIG divested $2 billion worth of its AIA holdings to repay government loans and authorized a $5 billion buyback of government-held AIA stock. Later that month, the Treasury completed its fifth transaction involving AIG shares, raising around $20.7 billion and reducing its stake from 53% to approximately 15.9%. All government funding was fully recovered, resulting in a combined gain near $15.1 billion.

In October 2012, AIG signed a sponsorship deal lasting five and a half years with six New Zealand rugby teams, including the reigning world champion All Blacks, boosting its brand exposure in global markets.

By December 2012, the Treasury disclosed total financial support to AIG amounting to $182.3 billion through loans and equity investments, with AIG repaying $205 billion overall, producing a profit of $22.7 billion for the government. The final Treasury sale of AIG stock that month brought in about $7.6 billion, culminating in more than $22 billion in profits from common stock sales and an additional $0.9 billion from preferred shares. Also in December, CEO Robert Benmosche announced his resignation due to lung cancer.

In January 2013, AIG launched the "Thank You America" initiative, during which CEO Benmosche openly recognized the government's support. Peter Hancock took over as CEO in September 2014; Benmosche continued as an advisor until his passing in February 2015.

June 2015 saw Taiwan's Nan Shan Life Insurance acquire a stake in AIG’s Taiwan subsidiary for $158 million, representing a strategic investment within the Asia-Pacific region. Later that year, activist investor Carl Icahn called for AIG’s breakup, describing it as "too big to succeed." In January 2016, AIG announced plans for an initial public offering of 19.9% of United Guaranty Corp., its Greensboro-based mortgage insurance business. Icahn secured a position on the board and persisted in pushing for the company’s division.

AIG also established a joint venture with Hamilton Insurance Group and Two Sigma Investments focused on insuring small- and medium-sized enterprises; industry veteran Brian Duperreault was appointed chairman with Richard Friesenhahn serving as CEO. In August 2016, United Guaranty was sold to Bermuda’s Arch Capital Group for $3.4 billion as part of efforts to simplify AIG’s portfolio amid strategic restructuring.

2017

Brian Duperreault was named AIG’s CEO on May 15, 2017. Having previously been with AIG from 1973 until 1994, he was recruited from Hamilton Insurance Group following Peter Hancock’s resignation in March 2017 due to unsatisfactory financial performance. Contrary to earlier calls for dismantling the company, Duperreault focused on expanding AIG while preserving its multiline business approach, emphasizing life and retirement services alongside property and casualty insurance. His strategy prioritized technology adoption, underwriting rigor, and diversification.

Between 2017 and early 2019, AIG underwent reorganization into three distinct business units and brought on numerous senior leaders. Duperreault appointed Peter Zaffino as Chief Operating Officer and later elevated him to CEO of General Insurance. In January 2020, Zaffino succeeded Duperreault as president of AIG while Duperreault remained CEO. The firm restructured its Commercial and Consumer segments into General Insurance and Life & Retirement divisions.

In September 2017, the Financial Stability Oversight Council removed AIG’s designation as a nonbank systemically important financial institution (SIFI), reflecting substantial progress in reducing risk since the financial crisis of 2008. This development highlighted improved financial health and strategic direction under Duperreault’s leadership.

2018–2023

Throughout 2018, AIG focused on strategic acquisitions to enhance its competitive standing. In July, it acquired Validus Holdings Ltd., a Bermuda-based reinsurance firm and Lloyd's of London syndicate known for its specialization in US small commercial excess and surplus underwriting as well as crop insurance. This deal added significant underwriting capabilities, particularly in the areas of property and catastrophe risk. That same year, AIG also bought Ellipse, a UK life insurance company previously owned by Munich Re. Furthermore, AIG launched Fortitude Re to oversee run-off portfolios, initially selling a minority interest to The Carlyle Group; by the end of 2019, Carlyle and T&D Holdings had taken majority ownership, leaving AIG with a 3.5% holding.

Under the leadership of CEO Brian Duperreault and President Peter Zaffino, AIG initiated a comprehensive turnaround plan for its General Insurance division beginning in 2017. By 2019, the leadership had restructured the business operations, introduced updated risk management and underwriting protocols, and revamped reinsurance purchasing strategies. That year also saw the rollout of "AIG 200," a multi-year program aimed at modernizing processes through digital innovation and operational integration. These initiatives helped deliver consecutive quarters of underwriting profitability alongside robust expansion in the Life and Retirement segment led by CEO Kevin Hogan.

In January 2020, AIG announced it would conclude its decade-long sponsorship of the All Blacks rugby team by 2021. On March 1, 2021, Peter Zaffino replaced Duperreault as CEO while Duperreault assumed the role of executive chairman; Zaffino was appointed board chairman in January 2022.

As part of a strategic move to separate its Life and Retirement business via an IPO in 2022, AIG sold a 9.9% stake in this new entity to Blackstone Group for $2.2 billion in July 2021. Blackstone also secured a long-term asset management contract covering approximately one-quarter of AIG’s life and retirement assets. This spin-off led to the creation of Corebridge Financial as an independent company, which raised $1.68 billion in what became the largest U.S. IPO of 2022.

In February 2023, AIG collaborated with Stone Point Capital to establish Private Client Select Insurance Services (PCS), an independent managing general agency dedicated to serving high-net-worth clients by transitioning AIG’s private client group. Subsequently, in May 2023, AIG agreed to divest its subsidiary Crop Risk Services to American Financial Group for $240 million and sold Validus Re—including AlphaCat and Talbot Treaty reinsurance businesses—to RenaissanceRe for $2.985 billion paid in cash and common shares.

2024

In March 2024, British regulatory authorities approved Aviva’s acquisition of AIG Life Ltd's UK operations for £460 million.

Business

AIG stands as a leading financial services provider in both Australia and China, offering products such as credit protection. Within the United States, it holds the position of largest underwriter of commercial and industrial insurance coverage. Its extensive product range encompasses property casualty insurance, life insurance policies, retirement solutions, mortgage insurance, and various other financial offerings. In 2012, AIG rebranded its global property-and-casualty division as AIG Property Casualty and its life insurance and retirement segment as AIG Life and Retirement while preserving other brand identities in select markets.

Sponsorships

Between 2006 and 2010, AIG served as the official shirt sponsor for the English football team Manchester United F.C., a timeframe marked by considerable success under the management of Sir Alex Ferguson. In 2019, AIG expanded into golf sponsorship by becoming the title sponsor of the Women's British Open. This partnership was extended through 2025, leading to the tournament being renamed the AIG Women's Open. By 2022, the event featured the largest prize fund in women's major golf, amounting to $7.3 million—a 125% increase since 2018. In 2023, AIG reaffirmed its commitment to sponsor the tournament until 2030, further raising the total prize money to $9 million.

Subsidiaries

AIG Europe S.A.
American General Life Insurance Company
American Home Assurance Company
Lexington Insurance Company
National Union Fire Insurance Company of Pittsburgh, PA
The United States Life Insurance Company in the City of New York
The Variable Annuity Life Insurance Company (VALIC)
American International Group UK Ltd.
AIG General Insurance Co. Ltd.
Validus Reinsurance, Ltd.

AIG Bailout Litigation

Starr International Co v U.S. Federal Circuit Court of Appeals

In 2011, Maurice ("Hank") Greenberg and lead attorney David Boies initiated a $40 billion lawsuit against the U.S. Government, contending that AIG was compelled to accept exorbitant interest rates and an 80% government equity stake while being denied access to discounted federal loans. The AIG board opted not to participate in this legal action.

The trial, overseen by Judge Thomas Wheeler and lasting 37 days, included testimonies from prominent figures such as former Federal Reserve Chairman Ben Bernanke and Treasury Secretaries Timothy Geithner and Henry Paulson. Boies characterized the government's equity demands as "extortionate," whereas government counsel argued shareholders were entitled to such terms. JPMorgan banker Jimmy Lee testified that private capital was unavailable to AIG at the time. Paulson admitted that although bailout conditions were harsh, they were necessary. The judge concluded that the Federal Reserve’s equity acquisition constituted an illegal exaction but declined to award damages, reasoning shareholders suffered no financial harm since without intervention their investments would have been worthless.

Both parties appealed; however, the Court of Appeals ruled Greenberg lacked standing because AIG itself did not file suit.

AIG Inc. et al. v. Maiden Lane II LLC

In 2013, AIG filed suit against the Federal Reserve Bank of New York concerning approximately $18 billion in mortgage-related claims transferred via Maiden Lane entities established during the bailout process. AIG argued these transfers obstructed recovery efforts from insured banks. The lawsuit was later withdrawn without prejudice following progress in related cases.

AIG Inc. v. Bank of America Corporation LLC

Also in 2013, a court determined that $7.3 billion in contested claims had not been assigned in AIG’s lawsuit against Bank of America concerning alleged misrepresentations in mortgage portfolios by Merrill Lynch and Countrywide. The dispute was resolved in 2014 when Bank of America agreed to pay $650 million to AIG, concluding the litigation.

Board of directors

As of July 2023, AIG’s board features seasoned executives with varied leadership experience, strengthening its strategic direction and influence within global markets. Notable members include:

Paola Bergamaschi – former executive at State Street, Credit Suisse, and Goldman Sachs
James Cole Jr. – chairman and CEO of The Jasco Group
John Rice – ex-vice chairman of GE and former president and CEO of GE Global Growth Organization
W. Don Cornwell – former chairman and CEO of Granite Broadcasting Corporation
Linda A. Mills – previous vice president of operations at Northrop Grumman Corporation
Diana M. Murphy – managing director at Rocksolid Holdings; past president of the USGA
Peter R. Porrino – former executive vice president and CFO at XL Group Ltd (Axa XL)
Therese M. Vaughn – former CEO of the National Association of Insurance Commissioners
Vanessa A. Wittman – previous CFO at Glossier, Dropbox, and Marsh McLennan
Peter Zaffino – chairman and CEO of AIG

This diverse board composition underscores AIG’s commitment to robust governance practices, financial excellence, and leadership across international operations.

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