The American International Group, Inc. (AIG) is a leading multinational insurance corporation based in New York, United States. AIG has over 80 million customers across 130 countries. The company has about 65,000 employees. AIG is renowned and well recognized, it serves 98% of the Fortune 500 companies, 96% of the Fortune 1000 and insures 40% of the richest people in America.
AIG operates via its subsidiaries;
- roperty casualty: this section of the corporation provides insurance services to customers in commercial, institutional and individual level.
- Then, AIG life and retirement: this section of AIG provides life insurance and basic retirement financial services to customers in the United States.
- And finally, the United guaranty corporation (UGC): this section of the corporation is solely about mortgage insurance and mortgage guaranty insurance.
The company also provides global capital markets services such as; direct investment and retained interests.
AIG Scandals and Financial Crisis
AIG has endured a series of fraud accusations and investigations from the Securities and Exchange Commission (SEC), U.S justice dept. and the New York state Attorney General’s office. In 2005 the company faced investigations after an accounting scandal was uncovered in their books.
The 2007-2008 financial crisis hit the company very hard. The government bailed AIG out with $180 billion after it became obvious that the company made so many errors resulting in its liquidation. AIG became the recipient of the largest government bailout in US history.
It was clear that the company’s woes were as a result of its failures in corporate governance especially as regards to its risk management practices.
The primary cause of its problem was its large sales of credit default swaps. The company made
By September 2008, the company started selling off its assets to repay its debt to the government. Although it faced many difficulties mainly because of the global depreciation of valuation in the insurance business.
As of 2016, AIG has sold many of its assets including the UGC. Now, they have fully repaid its debt to the US government in full.
The company provides a wide range of insurance products to its customers. The products cover individual and group insurance needs of customers. The AIG individual & family insurance package includes;
- Life insurance
- AIG direct
- Travel insurance
- AIG home protection plan
- And the auto insurance plan
The AIG group insurance product includes;
- The AIG employee assistance program
- AIG higher education plan
- Then, the AIG insurance for corporate accident
- And finally, AIG medical coverage
To get full details on any or all the AIG insurance products, please visit their website