American International Group, Inc. (AIG) is a multinational finance and insurance corporation with offices in more than 80 countries. As of January 1, 2019, it employs more than 49,600 people worldwide. As of 2016, it is the largest private employer in the United States. As of January 1, 2019, it has more than ten thousand employees. The company provides financial services to individuals and companies around the world. Learn more about AIG and the different types of insurance it offers.
The American International Group started as AIRCO in 1967, and the company acquired ALICO, New Hampshire, and National Union. Those three companies were part of the AIG group at the time. AIG then acquired the majority of shares of these companies and renamed them AIG. In 1969, AIG purchased majority interests in American Home, New Hampshire, and ALICO, and in 1973, the company became a wholly owned subsidiary of AIG.
In addition to the stock sale, AIG made several notable acquisitions in the 1990s, including Validus, a reinsurance platform, Glatfelter Insurance, and Ellipse, a provider of group life and critical illness insurance. In addition to these acquisitions, AIG’s CEO, Evan Greenberg, announced that the company hoped to shift its business mix to other markets in 2019. However, the firm did not mention any mergers or acquisitions, but it has stated its plans to restructure its business model.
American International Group Insurance Providers
AIG’s corporate structure began to take shape in the late 1960s, when it began entering eastern Europe. It merged with several state-owned insurers in Romania, Poland, and Hungary. It also expanded to China and Yugoslavia. By the end of the 1970s, AIG’s size had grown tenfold and its revenues grew by twenty percent annually. The company reported a net income of $250 million for the year 1979.
In the final quarter of 2018, AIG reported after-tax catastrophe losses of $630 million. While Life and Retirement continued to be a stable source of earnings, AIG’s General Insurance division remained weak. In its Form 10-K for the year 2018, AIG emphasized its efforts to improve underwriting capabilities and deliver long-term profitable growth. It also repositioned its risk limits to reduce volatility. AIG’s recent losses have prompted investigations in the United States and Louisiana.
AIG’s first foreign subsidiaries were in Switzerland and Japan. The company’s subsidiaries, including National Union, American Home, and Allied Insurance, were acquired by the company in 1986. Among the many acquisitions since then, AIG has added new companies and expanded its operations in both countries. AIG has been a profitable business since the 1960s and is profitable today. AIG is one of the largest and most diversified companies in the world.