AIG – An Overview

AIG (American International Group) is an insurance corporation that offers auto insurance among other options. Its corporate headquarters is located in New York. It also maintains offices and operations in England, France and Hong Kong. AIG is considered to be the 29th largest public company in the world according to Forbes estimate. Following the company’s liquidity crisis, the U.S created a credit facility designed to increase the company’s financial support.

AIG – History

AIG history began with the most unlikely of starts; as an insurance agency in Shanghai, China. The insurance company was founded by Cornelius Vander Starr who sold insurance to the Chinese. The company remained in China until the start of the 50s when, following the advancement of the communist people’s liberation army, the company moved its headquarters to what would be its final home, New York. AIG

Ten years later, the management of the company’s holdings was entrusted with Maurice R. Hank Greenberg. Greenberg’s first step was to alter the company’s focus from sales of personal insurance to those of corporate coverage through the use of independent brokers. Greenberg’s methods increased the success of the company and contributed to him becoming Starr’s successor in 1968. The following year the company went public.

In 2005, AIG was the focus of several fraud investigations managed by the U.S Justice Department and Securities and Exchange Commission. The investigation led to the removal of Greenberg who was replaced by Martin J. Sullivan. Following massive losses and plummeting stocks, Sullivan resigned and was succeeded by Robert B. Willumstad. He would shortly after be replaced by Edward M. Liddy in 2008 and Robert Benmoshche in 2009.

In 2009, AIG sold the 21st Century Insurance Subsidiary to the Farmers Insurance Group.

AIG – Differentiating Factor

AIG’s restructuring program led to the sale of its stake in the 21st Century Insurance Company to the farmer group. It however still offers insurance products through the division, Chartis Insurance. Chartis Insurance is made up of over 40,000 employees and serves more than 70 million customers around the world. The company’s contribution earned it the Best Global Insurance Company award. Currently, the core focus of the company is to rebuild its value through its different arms one of which is its domestic life insurance businesses. In the last three years, the company has made massive strides in this direction.

AIG – Let’s Hear What Their Customers Say…

Prior to the company’s financial slump, AIG scored fairly well with most customers. Many clients appreciated the low premiums and the professionalism of the customer service. Some customers however complained about the company’s policies which were described as misleading. Like most insurance companies, there were also concerns about the delays in processing claims.

Conclusion

For decades, AIG was one of the leading insurance organizations in the country. The company provided retirement services and life insurance in the country. Currently the company is going through a restructuring phase that has seen it go through three different CEOS in almost as many years. Its service performance is however just as strong.

AIG Company Facts

Parent Company:
American International Group, Inc.

Subsidiaries:
AIG Direct
21st Century Insurance
AIG American General

Lines of Insurance:
Vehicle Coverage: Auto, Motorcycle, RV, ATV, PWC
Other Coverages: Life, Home, Retirement, Health

Coverage Options:

Licensed to sell insurance in:
AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY

A.M. Best Company Rating: A+
(Rating Explained)

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