American International Group (AIG)

AIG is a global insurer serving customers in more than 70 countries in both commercial and personal lines of insurance, life insurance and retirement services.

AIG reports the results of its businesses through three segments – General Insurance, Life and Retirement and Other Operations. General Insurance consists of two operating segments – North America and International. Life and Retirement consist of four operating segments – Individual Retirement, Group Retirement, Life Insurance and Institutional Markets. Its Other Operations are primarily comprised of corporate, its institutional asset management business, and consolidation and eliminations.

AIG traces its roots to 1919, when the company was established as a general insurance agency in Shanghai, China. Today, AIG is still very much focused on providing insurance coverage to meet the diverse needs of its clients.

In January 2018 AIG announced its acquisition of Validus, a leading global provider of insurance, reinsurance and asset management services, for $5.56bn. The acquisition allows AIG to grow its General Insurance business.

In June 2018 AIG announced its acquisition of Ellipse, a specialist provider of group life risk protection in the UK, from Munich Re.

In August 2018 AIG entered into a strategic partnership with The Carlyle Group to transform AIG-owned DSA Re into a sole provider of reinsurance, claims handling and run-off management services for long-term, complex risks to the global insurance industry.

In September 2018 AIG acquired Glatfelter Insurance Group, a full-service broker and insurance company providing services for specialty programs and retail operations. Glatfelter brings program underwriting capabilities that will accelerate the positioning of AIG general insurance business.

In March 2019 VALIC, a retirement plan provider changed its name to AIG Retirement Services to align with its parent brand AIG.

In September 2019 AIG announced that from 2020, all of its commercial P&C insurance policies will clearly confirm whether cyber exposures are covered or excluded from the policy.

In November 2019, AIG has sold its 76.6% stake in Fortitude Group Holdings to the newly created Carlyle-managed fund and R&D, for approximately $1.8bn. This transaction furthers AIG’s and Carlyle’s efforts to stand up Fortitude Re as an independent company and position it as a premier provider of retroactive reinsurance and legacy run-off management solutions for the global insurance industry.

In February 2020 AIG announced it will invest $1.3 billion over the next three years into its AIG 200 initiative. The AIG 200 is designed to improve core processes, technology infrastructure and services, and overall reduce the expense ratio and general operating expenses.

In October 2020, after carrying out a business review, AIG announced it was intending on separating its Life & Retirement business from AIG to establish two independent companies.

In October 2020, Peter Zaffino was appointed President of AIG. In March 2021, Peter Zaffino took over the CEO role from Brian Duperreault. Meanwhile Duperreault became the Executive Chair.

In February 2022 AIG announced that its full-year 2021 total revenues were $52.1bn, up from $43.7bn in 2021. Income after tax was $4.4bn, compared to $2.2bn in 2020. AIG attributed the increase in income primarily to the strong underwriting results in General Insurance, where net written premiums grew 13% in 2021, driven by global commercial lines growth of 18% for the full year.