American International Group, Inc. (AIG) (NYSE: AIG, TYO: AIGT.T) - the largest American insurance company. Headquarters - New York.
Founded in 1919 by Cornelius Vander Starr in Shanghai (China). Subsequently, the company's operations spread throughout the world.. IN 1969 year the company went public.
Head of the company - Edward Liddy.
AIG is a leading international insurance organization, based in the USA, and one of the largest commercial and industrial insurance underwriters in America. Companies, its constituent, provide various types of insurance in about 130 countries (including in Russia). Based on the results of activities 1999 of the year AIG ranked # 1 in net profit among all US-based organizations, specializing in insurance and financial services, And 17 – e place among all American public corporations. According to the leading international rating agencies “Moody’s” And “Standard & Poor’s”, AIG's strong financial position is reflected in its highest credit rating (AAA)
Activity
The company is ranked # 2 in the world for real estate and accident insurance and # 1 in the United States for life insurance. In addition to insurance and reinsurance, AIG is engaged in financial services, pension savings and asset management. The company also works in the field of consumer finance. (American General Finance).
AIG owns ILFC - the world's largest company, specialized in aviation leasing. Besides, AIG owns a ski resort and golf club in New York State.
The company has more 92 000 staff and 50 million clients in 130 countries. Revenue for 2005 year - $98,6 billion. Net profit for January - September 2005 of the year - $10,023 billion. Capitalization - $172,3 billion, equity - $80,61 billion.
Net losses of AIG in the first half of the year 2008 d were $13,162 billion. For the same period a year earlier
the company received a net profit of $8,407 billion.
Financial crisis 2008 of the year
Large losses of the company amid bankruptcy of Lehman Brothers, cause negative expectations for the future of AIG, formed on the market by September 2008 of the year. In these conditions, the US government decided to provide the insurance giant with a loan in $85 billion (but in general - about $182,5 billion), in return for which the state will be transferred 79,9 % insurance company shares. As expected, this will save the company from bankruptcy.
At the beginning 2009 a scandal erupted over the past year over the payment of extremely generous bonuses and bonuses to many of the company's employees, including those, who brought the company to a critical state. In the context of the ongoing economic crisis, this fact caused the outrage of the American public and politicians.. According to initial reports, the company paid its employees $165 million in premiums and bonuses. In response to this, Congress passed a law, according to which each recipient of these premiums should be taxed in the amount of 90 percentage of bonus received. 21 Martha 2009 it turned out, that the amount of bonuses paid was even greater, than intended - $218 million
Statistics:
State-owned companies
Founded: 1967
The number of employees: 81,000
Total Assets: $ 492,98 billion (2001)
Stock exchanges: New York London Paris Tokyo Swiss
Symbol: AIG
NAIC: 523120 securities Brokerage; 523920 Portfolio management; 524126 Direct ownership and personal injury insurance; 524113 Direct Life Car Insurance riers; 524130 reinsurance carriers; 524210 Insurance agents and brokerage; 532411 commercial air, railway, water transport and equipment Rent and lease; 551112 offices of other companies of the holding
Key dates:
1919: Cornelius Vander Starr uniforms American Eyestik Underwriters, one or two insurance clerks in Shanghai, China.
1926: Starr opens a New York office called American International Underwriters.
1939: In most countries of the world on the brink of war, Starr moves his headquarters from Shanghai to New York.
1948: Starr begins uniting his fragmented network of insurance companies to form two Bermuda-based organizations: American International Underwriters Overseas, Ltd and American International Reinsurance Company, Inc (air conditioning).
1949: After the capture of communist China, Starr moves its regional headquarters to Hong Kong.
1952: air conditioner profits controlled by American Home Supply Company.
1960-1990s: Several acquisitions completed, including the National Union Fire Insurance Company of Pittsburgh, Pennsylvania, New Hampshire, and insurance company.
1967: As part of a major reorganization, American International Group, Inc (AIG) is being formed to become a holding company for various insurance companies; Maurice R.. Greenberg becomes President and CEO of AIG.
1968: Starr dies and Greenberg adds the chairmanship to his duties.
1969 year: AIG goes public.
1976: AIG is organized in four main areas: foreign general insurance, Brokerage Division Internal General Insurance Division, Agencies Division of Internal General Insurance and Life Insurance Division.
1987: Financial Services Group is forming, Consolidation Firms Growing Financial Services Operations.
1999 year: SunAmerica ink, plays an important role in pensions and mutual funds, purchased for $ 18.3 billion.
2001 year: AIG acquires American General Corporation by $ 23 billion. AIG loss reports $ 820 million. as a result of events 11 September.
history of the company:
American International Group, Inc (AIG) is the holding company for a network of subsidiaries, engaged primarily in the field of insurance and insurance activities, bound, including property, losses, a life, Financial services, pension savings products, asset management and aircraft leasing. AIG operates in more than 130 countries and jurisdictions, and its total revenue make it the largest US-based international insurance organization, and one of the largest insurance companies in the world. AIG is the leading commercial and industrial insurance underwriter in the United States and the second largest in the United States in the life insurance sector.. Corporations, whose early roots are in Asia, had an active history of mergers, acquisitions and consolidations, and also known under the leadership of P. Maurice “Hank” Greenberg in the late 1960s at the beginning of the 21st century, the company grew into a global insurance giant.
Origins In Chinese Insurance Agency
IN 1919 27-year-old businessman, USA, Kornelius Vander Starr, opened two rooms, two clerks of an insurance agency in Shanghai, China, and named him American Eyeshic Underwriters (AAU). EUK, which later became part of the American International Underwriters (AIA), originally served as an underwriter for insurance companies, which branches were established in Shanghai. During a trip to New York in 1921 year Starr added dealerships of other American companies to his operations, including Globe & Rutgers Company. Later that decade, Starr brought the Pittsburgh dealership, state of Pennsylvania, company, National Union Fire Insurance, on your phone.
Starr's next endeavor is, to get a general life insurance agency of authority, but he didn't find, American companies are willing to take the risk, because there was no life expected statistics available for the Chinese population. IN 1921 Starr overcame this hurdle by starting their own company, Asia Life Insurance Company (ALICO). ALIKO's most popular product was 20-year Subsidized policy with courses, Starr's personal observations, that in general Chinese enjoy more life, than their western counterparts.
IN 1926 Starr opened a New York office called American International Underwriters as an insurance writer for US, owned risks outside North America. Like his Chinese counterpart, AIA also acts as an agent for American insurers. Starr sees modest revenues in Chinese operations by the end of the decade, and branches for general and life insurance have been established throughout the Shanghai area. IN 1931 Starr joined British and Chinese businessmen in a partnership and established the International Provision Company (INTASCO).
AIA has created the foundation for Latin American businesses in 1932 year, when George Moszkowski, who ran the New York company, negotiated the purchase of the Central American and Caribbean portfolios in the US of the insurer for withdrawal from foreign operations. AIA operations in Central America have remained modest throughout the decade.
To, during and after World War II, AIA was able to take advantage of the global economic and political situation. In most countries of the world on the brink of war, in 1939 year Starr moved his headquarters to New York, temporarily close Shanghai office. After fighting broke out, operations dominant italian, german, and British institutions were cut, and AIA expanded to Central America. IN 1940 AIA established by regional headquarters in Cuba, and a half dozen offices in South America soon followed. AIA's Central American business has grown with the local economy, such neutral countries during the war.
At the end of World War II, an office was opened in Shanghai, led by K. TO. Tse. Several years after profitable until the late 1940s, when future external activities in Shanghai grew lackluster. IN 1949 year key personnel and documents by air from Shanghai and regional headquarters moved to Hong Kong. In the end 1950 operations in China were closed.
Meanwhile, many surrounding countries rebuilding from war. What to improve the economic situation, AIA entered Japan and West Germany, selling insurance to occupying American troops. AIA in pre-war operations in Europe had only small agencies in France, Belgium and the Netherlands, but post-war conditions, as a result of hard funding for local insurers, hosted by AIA is able to expand its European businesses. At the same time, the expansion of American business overseas created opportunities for AIA in “house-stranger” business.
IN 1947 Starr began reorganizing, aimed at reviving war operations and laying the foundation for future growth. Starr's first move would be to announce the incorporation of the Philippine division of an American life insurance company, Philippine American Life Insurance Company (Philam life), in 1947 year. US businessman Earl Carroll was named to the head of a new company, which grew rapidly, mainly through the sale of Subsidized policies. This policy provided farmers and small traders with funds to build their savings in a country with several banks.. Sales proceeds are often reinvested in the local economy.
We start working in partnership, INTASCO, which until this time was supported by a relatively small life insurance business, was reorganized into 1948 year, when Starr took control of the business. He added: “American” in the name of the company, changed the company to the abbreviated name of the AIA, and it is assigned to the territory of Southeast Asia in Malaysia, Singapore and Thailand, as well as home base in front of Hong Kong.
Starr started the same year, uniting its somewhat fragmented network of insurance companies, starting with the creation of two Bermuda based structures. The first one, American International Underwriters Overseas, Ltd (AIUO), became the parent of all companies created by AIA agency abroad. Secondly, American International Reinsurance Company, Inc (air conditioning), was designed to conduct primarily companies, life insurance. Air Conditioning also took control of the investment program companies and as a reinsurer of these subsidiaries. The last of Starr in the trio of new organizations of American Underwriters International Association (AIUA), established in 1949 year as a partnership of American insurance companies, which were presented by AIA. AIUA foreseen business combination stipulated in percentage and total assets, stored overseas to meet local regulations.
Perhaps, most dramatic reorganization occurred in Starr's oldest life insurance company, ALICO. After lying dormant for ten years, the company was renamed American Life Insurance Company and established Caribbean, The Middle East and some African countries is growing. ALIKO life insurance market for the population, previously unattractive for insurers.
Rapid expansion in the 1950s
1950-s were a period of rapid expansion for AIA. Branches were established in Western Europe, Middle East, North Africa and Australia. By the end of the decade, AIA operates in 75 countries. 1950s also marked the emergence of Starr companies in domestic markets.
IN 1952 Air Conditioner acquired most of the interest in Rutgers' Globe & Insurance Company, and the average US fire insurance company is again represented by AIA. GLOBE & Rutgers insurance subsidiary of Pennsylvania, came with the purchase. Founded in 1794 year, Pennsylvania subsidiary is the second oldest Joint Stock Insurance Company in the United States. American Home Company Warranties, which was founded in 1853 year, was also included in the package. Globus & Rutgers subsequently merged with the American House and adopted his name.
Starr and colleagues joined the American Home Council, but left the company mainly under the old management. Profits on new subsidiary have fluctuated significantly for several years. Net loss in the amount 1,4 million. Doll. USA was registered in 1957 year, after which, from net profit more than $ 950,000 next year. As part of efforts to stabilize income, air conditioner sold to American Home Business Agency to another insurer in 1962 year. In the same year, Starr named Maurice R. Greenberg, as an American President of the House, and the company has shaped American international life, providing a company in New York to specialize in term and insurance group. Greenberg began his insurance career ten years ago with Continental Injured Companies. IN 1960 year he joined American International and was entrusted with the task of developing overseas accident and health enterprise.
At Leading American Home, Greenberg focused on broker sales, allowing the company to issue its own policies and maintain underwriting management. The company focuses on commercial and industrial risks, which was attended by negotiations, rather than government-controlled rates. American Home has also developed substantial reinsurance facilities, in order to cover a large share of the main risks and control of the insurance assessment. Greenberg launch of new products and services, such, as accident insurance, which highlights franchises. Meanwhile, American Home Avoid Health Insurance. In the new sales system, caught up in intermediaries, offering high deductibles, what traditional insurers avoid, but, that some large corporations, in order to reduce costs.
Late 1960s: creation of modern AIG
In the late 1960s, the American International corporate structure began to resemble its current form., how it became an important commercial and industrial property and insurer's losses. Although the new company is organizing relationships through further acquisitions and reorganizations, the insurance group has begun capitalizing on innovative products and entering new markets.
Procurements during this period included oversight for the National Union Fire Insurance Company from Pittsburgh, state of Pennsylvania, which was presented by AIA with 1927 of the year, and New Hampshire Insurance Companies. In the first, which was under threat of high underwriting losses, was converted the same way, like an american home, and then related to it in the amalgamation agreement. Commercial and industrial insurance company, small property insurer, specializing in high risk protection and reinsurance companies by Transatlantic were acquired during this period.
Fully owned by American International Group, Inc was formed in 1967 year of air conditioner. AIG marks the beginning of a major corporate reorganization, the company was created for holding promotions of other domestic companies, including American House and New Hampshire. ALIKO was soon added to AIG in stocks. Greenberg was elected President and CEO of AIG in 1967 year. Starr died the next year, seeing only the beginning of a new era for the insurance empire he was created.
IN 1969 year, after going public, AIG acquired most of the interests in the National Union, New Hampshire, and American home, pay for its increase in stakes in three companies with AIG holdings. IN 1970 AIA and its subsidiaries and became wholly owned by the subsidiaries of AIG.
Throughout the 1960s, AIA's overseas business grew, despite the loss of his big Cuban business following Fidel Castro's takeover of that country. Since it entered most major markets a decade earlier, expansion during this time was limited to growth in areas with established territory. In an attempt to strengthen the AIG overseas position, on 18 months the program was launched in 1972 year the creation of a regional system of benefits for executives in Europe, Africa, Central America, South America, in the Middle East, Far East and the United States. In the same year, subsidiary ALICO AIG became the first foreign company to grant a license to sell insurance to Japanese citizens in Japan.
In the early 1970s, AIG expanded its specialization by creating a number of new groups. Subsidiaries, created by AIG during this time included AI Credit Corporation to fund general insurance premiums through affiliate and nonaffiliate insurers; North American managers, Inc sell insurance in the USA for foreign companies; AIG oil rig, Inc, in the organization and management of insurance for offshore oil and gas drilling rigs; AIG Risk Management, Inc, to provide worldwide risk management services; AIG Data Center, Inc, as well as the American International Insurance Company in Ireland, Ltd during this period also AIG acquired all of the remaining shares in New Hampshire and the National Union of Companies.
AIG profits took off in the 1970s, the growth rate is complicated by about 20 Percent, with AIG, net income exceeded $ 50 million. in 1975 year. High premiums in new market areas for oil rigs and pension funds, management, and the use of limited partnership high risk insurance contributed to the growth.
Consolidation and reorganization continued in 1976 year, when AIA terminated the written policy of insurance companies, it's not on its own. In the same year, the company was organized in four main areas: foreign general insurance, Brokerage Division Internal General Insurance Division, Agencies Division of Internal General Insurance and Life Insurance Division. The following year, subsidiary Transatlantic Reinsurance was reorganized as one of the main reinsurers with shares sold seven other companies. AIG to cover its parent company, air conditioning, in 1978 year, completion of a nine-year consolidation plan to simplify the corporate structure.
IN 1979 year entered AIG Eastern Europe and started joint ventures with public insurers in Hungary, Poland and Romania. In subsequent years, similar operations were launched in China and Yugoslavia.. In the late 1970s there were AIG 20 percent of annual income growth and an increase in its size almost tenfold. IN 1979 year AIG reported over $ 250 million. net profit.
Diversification and Consolidation in the 1980s
During the 1980s, AIG ventured into medical services, and also acquired a number of financial and investment sources, as well as real estate holdings. Acquisitions included United Warranties Corporation Residential Mortgage Insurance Companies; at Swiss banks Uberseebank AG; Тичино Insurance Company On Вита, Switzerland based life insurer; Southeast Aviation Underwriters – later renamed AIG Aviation, Inc – one airline, the aviation and space program of the insurer and Jurgovan & Blair, medical service organization of business consulting. IN 1981 year AIG, in combination with Presidio Oil Company acquired the majority of the interest in 109 natural gas wells.
IN 1984 year the company introduced its first profit declines, largely due to underwriting losses including as a result of a major hurricane. Some of AIG's specialized companies, such, like an AIG oil rig, energy AIG, AIG Entertainment and AIG Political Risk, which were created during the previous 15 years, were merged into 1984 year under the name AIG Special Institutions, Inc In the same year, a special AIG Division was presented to take risks, such, as extortion, kidnapping, and demand a ransom.
IN 1985 year AIG profits jumped, moreover, the company exceeds 1983 earnings and placement of net income from $ 420 million. IN 1987 year AIG exceeded $ 1 billion. net profit. In the same year, AIG was authorized by the South Korean government to begin life insurance operations, the end of the 15-year struggle to break into the Korean market. AIG becomes the second foreign insurance company in South Korea, with its biggest international competitors, CIGNA corporation, subject to approval at the beginning of the year.
Two important AIG executives, National Union of President Joseph P. DeAlessandro and American Home President Dennis Busti left AIG in 1987 year for other companies. Maurice Greenberg, a son, Jeffrey W. Greenberg, was moved from the AIA chairmanship to the North American division and named the new President of the National Union, while Joseph R. Wiedemann was named an American Home by the President. Wiedemann was president of AIG's Boston-based subsidiary Lexington insurance company.
AIG to expand its trading markets in 1987 year, when it became the first foreign insurance company to list on the Tokyo Stock Exchange. The following year, AIG was listed on the London International Stock Exchange. Additional listings include Paris and Switzerland, added to 1990 year.
AIG continues diversification moves to 1988 year, formation of Hong Kong based venture capital to introduce US fast food franchising in the Asian market. Venture marked the first occasion, when the US institutional investor – AIG Financial Investment Corporation in Asia – moved to overseas franchise market.
In the same year, AIG also faced some difficulties.. He took part in the, which is considered one of the largest, insurance-related arbitral awards in history. Corporation “Enron” was awarded in the amount $ 162 million. claim from insurers Peruvian properties, which were expropriated, and AIG was forced to pay almost two-thirds of the sentence.
Throughout the 1980s, AIG acts as one of the two main sources of environmental liability damage (EMC) insurance. At the beginning 1989 Greenberg suggested creating hazardous waste, clearing tax account on 2 percent premium fee accrued on all commercial and casualty and property policies, with insurers, which corresponds to the amount. Greenberg suggested tax could help finance EPA cleanup of Superfund sites and eventually bring more EMC insurers in writing, however, the criticism of the plan is selfish.
Late 1980s to mid 1990s: Continued diversification of financial services
The late 1980s saw continued consolidation at AIG. The Financial Services Group was formed in 1987 year to consolidate specialized financial transactions. ATOON, AIG general insurance company in the European continent, was created later this year to consolidate activities in Europe, and prepare for the elimination of trade barriers between European countries in 1992 year. Headquarters in Paris, UNAT in Territory Expansion, included France, Belgium, The Netherlands, Sweden, Norway and Denmark.
IN 1989 year AIGlobal was formed to provide a single source of integrated property and loss of life, as well as insurance group, and also promote corporate financial services for multinational companies. In the same year, International Healthcare and Jurgovan & Blair were merged to form American International Healthcare, Inc, international consulting and company management for medical services.
With 1987 in the mid-1990s, AIG continues its diversification of financial services. IN 1987 year joint venture, AIG Financial Products Corp, was created to structure complex financial transactions, including interest rates and currency swaps. IN 1988 AIG acquired ownership of 30 percent AO Asesores Bursatiles, spanish brokerage, and have invested in certain investment and venture capital operations in the United Kingdom and Hong Kong. AIG Trading Corporation, joint participation in commodity operations, was created at the beginning 1990 of the year, and later that year, AIG acquired a lease from the International Finance Corporation, which is mainly engaged in the acquisition of new and used commercial jet aircraft and the leasing of such aircraft to domestic and foreign airlines (later she became a leader in such leasing). IN 1994 AIG Combined Risks LLC was established in London investment bank, risk-giving managerial decisions, corporate finance, reinsurance, as well as derivative financial instruments. All of these companies have been put under the umbrella of the AIG Financial Services Group. IN 1994 year operating income for the group increased from $ 404,9 million.
IN 1990 Transatlantic Holdings, Inc holding company formed by Transatlantic Reinsurance Company, and another reinsurer, Putnam Reinsurance Company Goes Secondary Offer Public. AIG continues to occupy about 41 percent by Transatlantic Holdings after open subscription.
In June 1990 AIG agreed to buy Fischbach Corporation for 43 million. Doll. USA. Fischbach, Florida based contractor, is the AIG of the fulfillment of the client's debt obligations, who began to experience financial difficulties. If Fischbach failed, AIG can, were forced to pay hundreds of millions of dollars to the company, with which Fischbach had a contract. After the purchase, AIG sold 51 Fischbach percent for contractor Peter Kiewit Sons Inc.
IN 1992 AIG received a lot of bad publicity over the Memo, written by Jeffrey Greenberg, who by then became executive vice president of AIG. Released that day, when the hurricane “Andrew reached the shores of Florida, in the memo, directed by the president of AIG subsidiaries, seemingly, testify to, that AIG underwriters should be encouraged to seek an increase in the hurricane fee”: “Start by calling your underwriters and explaining the meaning of the hurricane. This is an opportunity to get a price increase now. We must be the first, and it begins with the creation in the psychology of our people. You are welcome, get it moving today “. When the memo was made public it was prompted by research in both Florida and Louisiana, and denunciations insurance from the watchdog group, and also consumer activist Ralph Nader AIG, who is accused of trying to start a cycle “Price gouging”. Maurice Greenberg save, but, that the contents of this memo were taken out of context and are part of AIG's broader discussion of the long required pace of increasing commercial insurance.
In the early 1990s, AIG continued to expand outside the United States, thereby increasing their non-American income to 52 percent of the total in 1994 year. Asia and the states of the former Soviet Union were especially targets during this period. Under the leadership of Maurice Greenberg son Evan, AIG Asia Pacific Division has reentered the Chinese market in 1992 year, when it became the first insurance company to obtain a license there since the communist revolution in 1949 year. Two years later, AIG also became the first insurance company, to return to Pakistan, when it set up a subsidiary of ALIKO to sell life and related insurance (Pakistani government nationalized all insurance companies in 1972 year). At the beginning 1995 AIG reached agreement with Tata Group of India to work together for life, and on nonlife insurance business in India, when these insurance markets were open to private and foreign investment. Meanwhile, AIG is still the largest foreign insurer in Japan.
For the West, Russia and Uzbekistan were added to the AIG empire in 1994 year. Through joint ventures with local companies, AIG established commercial insurance of political risks and insurance operations in the Republic of Uzbekistan. Later, in 1994 AIG obtained a license for its joint venture in Russia, Russian-American insurance company, which will offer commercial insurance companies, Russian and foreign firms, working in Russia.
IN 1994 AIG also branched out into complementary insurance lines in the US market. AIG made initial $ 216 million. investment in 20 century industry, private auto insurer in California, who suffered heavy losses in the Northridge earthquake and were on the verge of bankruptcy. AIG has committed to invest additional capital if certain conditions are met. AIG has also stepped up its rescue Alexander & Alexander Services, Inc (A AND A), a New York-based independent insurance broker. AIG в $ 200 million. investment, designed to ensure the IA to reorganize and increase profitability.
IN 27 years since, Maurice Greenberg took over the director of the founders of the company, Greenberg has been guided by AIG in its position as a leader in its field with total assets to achieve $ 114,35 billion. in 1994 year. In branch, which rocked several huge natural disasters in the late 1980s and early 1990s, AIG's return on capital has remained remarkably stable throughout the period, beginning with 11.75 to 18.83 percent interest, mainly due to the geographic and operational diversity of the projected Greenberg .
Major acquisitions at the turn of the millennium
In the late 1990s, AIG made a number of significant acquisitions and investments as part of Greenberg continues to expand the drive. IN 1996 the company spent more than 100 million. Doll. USA for the purchase of STS Credit LLC, midsize Hong Kong company, specialized in consumer and commercial finance. Two years later, AIG spent 150 million. Doll. USA on 7 percent of shares in the Blackstone group, buyout of shares in a company, and also agreed to invest $ 1,2 billion in future Blackstone repurchase funds. Besides, in 1998 year most AIG gained control of 20th century industry, and also took control of the company board, how its influence in the enterprise has increased. Two years later, the 20th century changed its name to 21 century insurance group.
Holding eminent posts in two key areas of activity – general and life insurance – for decades, and also with recently created significant financial services, business, AIG next tried to add a fourth leg to its retirement savings and asset management activities. The first major move in this direction occurred at the beginning 1999 of the year, when SunAmerica Inc. was acquired for $ 18.3 billion. Los Angeles-based, SunAmerica is a major player in the hot variable pension field, a retirement savings product, similar to mutual funds, but with the peculiarities of insurance and tax incentives. SunAmerica has also been involved in the more traditional fixed-pension area, as well as management of mutual funds. IN 1997 year she was $ 2,1 billion. proceeds, $ 379 million. net income, and $ 40 billion. in assets. In synergy, that could have been obtained through the acquisition were fairly obvious: AIG will access the SunAmerica network for more than 9000 US brokers, who could sell AIG life insurance and other products, while SunAmerica's retirement savings products can be sold through AIG's huge life insurance sales force in Asia, Europe and South America.
In November 2000 AIG acquired HSB Group Inc. for about $ 1,2 billion. HSB is the parent company of the Hartford Steam Boiler Inspection and Insurance Company, which specializes in the insurance of steam boilers and other mechanical and electrical equipment. also in 2000 AIG became the first US insurance company to obtain a license to establish a subsidiary in Vietnam. Early next year, A bankruptcy court in Japan named AIG to be the exclusive sponsor of the reorganization of the troubled Chieda Mutual Life Insurance Company, 12-m largest insurer in Japan. This led to the acquisition of Tieda later that year., which was renamed AIG Life Insurance Star Co., Ltd., transition further added, that AIG already has a strong position in Japan.
In August 2001 AIG completed the acquisition of the largest ever – in fact, largest insurance takeover of all – in $ 23 billion. purchase of an American General Corporation. This deal is a logical follow-up to the acquisition of SunAmerica as the Houston-based American general had a strong position in fixed and variable annuities and mutual funds.. But American general, that total assets exceed $ 120 billion, Also a major player in the US life insurance and consumer financial markets, and the acquisition of AIG becomes the number two life insurance firm in the United States, trailing only Prudential Financial, Inc Life Insurance was and is now far from AIG's largest business segment, which accounts for 48,3 percent of 2001 before income deduction, with total insurance contribution 25,5 percent, Financial services, 17,1 percent, as well as pension savings and asset management, 9.1 percent.
