Finance · Profile from Finance Research Companion
American International Group (AIG)
The insurer founded by Cornelius Vander Starr in Shanghai in 1919, built by Maurice "Hank" Greenberg (CEO 1968–2005) into the world's most valuable insurance company, that lost its AAA rating in the 2005 accounting scandal, and then, in September 2008, nearly brought down the global financial system because a small London-based derivatives unit, AIG Financial Products, had written credit default swaps on ~$500bn of securities, including ~$78bn of super-senior mortgage CDO tranches, with no reserves and collateral triggers tied to AIG's own rating. The Federal Reserve and Treasury committed ~$182.3bn to rescue it; counterparties such as Goldman Sachs and Société Générale were paid in full; Treasury sold its last shares in December 2012 and reported a combined positive return of ~$22.7bn. A decade of disposals followed, ending with the 2022 IPO of its life and retirement arm, Corebridge Financial, and AIG's final Corebridge share sale in May 2026, leaving a focused commercial property-casualty insurer.
At a glance
- Founded
- 1919, Shanghai, as American Asiatic Underwriters, by Cornelius Vander Starr; American International Group, Inc. incorporated 1967; listed 1969
- Headquarters
- New York (1271 Avenue of the Americas since the late 2010s; formerly 70 Pine Street and 175 Water Street)
- Ownership / structure
- NYSE-listed (AIG); holding company American International Group, Inc.; insurance subsidiaries including National Union Fire Insurance Co. of Pittsburgh, Lexington Insurance (excess and surplus lines), AIG UK and AIG Europe; ~35% stake in Convex Group and 9.9% of Onex Corporation (from February 2026)
- Leadership (late 2026)
- Eric Andersen, President and CEO (from 1 June 2026; formerly president of Aon); Peter Zaffino, Executive Chair (CEO 2021–May 2026)
- Segment
- Insurer: commercial property-casualty (North America Commercial, International Commercial), global personal lines (high-net-worth and accident and health)
- Scale
- General Insurance gross premiums written ~$35.8bn and net premiums written ~$23.7bn in 2025; combined ratio 90.1% (accident-year ex-cat 88.3%) (company, reported)
- Rescue
- Up to ~$182.3bn committed by the Fed and Treasury, 2008–09; Treasury held ~92% of the common stock (January 2011); final sale 11–14 December 2012; combined positive return ~$22.7bn (Treasury)
- Signature moves (incl. failures)
- Greenberg era and global expansion (1968–2005); founding AIG Financial Products (1987); the 2005 accounting scandal and Greenberg's ouster; the super-senior CDS losses and collateral calls (2007–08); the September 2008 federal rescue; Maiden Lane II and III; asset sales, recapitalisation and the Treasury exit (2010–12); Starr v. United States (2011–18); underwriting turnaround and the Berkshire reserve cover (2017–21); the Corebridge IPO and sell-down (2022–26)
10 strategic moves analysed
Each one gets a full strategy file in the companion: context, the decision, the financing, what happened, and the lesson.
1968
Greenberg Era and Global Expansion
Leadership change / expansion (organic growth and acquisitions)
1987
AIG Financial Products Founding
Launch (new business unit / joint venture)
2005
Accounting Scandal and Greenberg Ouster
Regulatory settlement / governance failure / leadership change
2007
Super Senior CDS Losses and Collateral Calls
Failure (derivatives losses and liquidity crisis)
2008
Maiden Lane II and III
Bailout / asset purchase (special-purpose vehicles)
2008
September Federal Rescue
Bailout
2010
Asset Sales Recapitalisation and Treasury Exit
Divestiture / restructuring / government exit
2011
Starr v United States
Litigation (shareholder suit against the government's bailout terms)
2017
Underwriting Turnaround and Berkshire Reserve Cover
Restructuring (reserve transfer, leadership change and underwriting overhaul)
2022
Corebridge IPO and Sell Down
IPO / divestiture (staged separation)