Aig And All American Life Insurance: Who's The Owner?

American International Group, Inc. (AIG) is a leading global insurance organisation with operations in more than 80 countries. AIG offers life insurance, property-casualty insurance, retirement products, and other financial services. AIG American General Life Insurance Company is AIG's primary life insurance carrier operating in the United States. It is unclear whether AIG owns All American Life Insurance Co. However, AIG does have a subsidiary called American General Life Insurance Company.

AIG's history and growth

American International Group, Inc. (AIG) is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. AIG was founded on December 19, 1919, by American Cornelius Vander Starr, who established a general insurance agency called American Asiatic Underwriters (AAU) in Shanghai, China. Within two years, Starr had formed a life insurance operation and, by the late 1920s, AAU had branches across Southeast Asia. In 1926, Starr opened his first US office, the American International Underwriters Corporation (AIU), and also began to focus on opportunities in Latin America.

In the post-war period, AIU entered Japan and Germany, providing insurance for American military personnel. Throughout the 1950s, the company continued to expand in Europe and, in 1959, Starr hired Hank Greenberg to develop an international accident and health business. In 1967, American International Group, Inc. (AIG) was incorporated as a unifying umbrella organization for most of C.V. Starr's general and life insurance businesses. The company went public in 1969.

AIG continued to expand and diversify its operations throughout the 1970s, 1980s, and 1990s, offering a range of specialized products and acquiring new companies. In 2000, AIG acquired American General Corporation, a leading domestic life insurance and annuities provider, and entered new markets, including India.

In 2005, AIG became embroiled in a series of fraud investigations and Greenberg was ousted amid an accounting scandal. The company suffered significant losses during the 2007-2008 financial crisis and was bailed out by the federal government for $180 billion. AIG has since recovered its reputation and position as a solid global provider of insurance products, offering life insurance, property-casualty insurance, retirement products, and other financial services.

AIG's subsidiaries and acquisitions

American International Group, Inc. (AIG) is a multinational finance and insurance corporation with a presence in over 80 countries. AIG operates through three core businesses: general insurance, life and retirement, and a standalone technology-enabled subsidiary.

AIG's subsidiaries include:

• American General Life Insurance Company
• American Home Assurance Company
• Lexington Insurance Company
• National Union Fire Insurance Company of Pittsburgh, PA
• The United States Life Insurance Company in the City of New York
• The Variable Annuity Life Insurance Company (VALIC)
• American International Group UK Ltd.
• AIG General Insurance Co. Ltd.
• Validus Reinsurance, Ltd.

In 2018, AIG acquired Validus, a reinsurance platform, Glatfelter Insurance, a specialty programs provider, and Ellipse, a company offering income protection, group life, and critical illness insurance products. AIG's most recent acquisition was in August 2022, when it acquired Denver Agency, a P&C insurance broker.

AIG's acquisitions and subsidiaries are part of its strategy to expand its global presence and enhance its product offerings.

AIG's financial crisis and bailout

In 2008, the American International Group, Inc. (AIG), a global insurance giant, was on the brink of collapse. The crisis centred on its London-based division, AIG Financial Products (AIGFP), which sold insurance against investment losses.

In the late 1990s, AIGFP discovered a new way to make money through a financial product known as a collateralized debt obligation (CDO). CDOs bundle various types of debt, from very safe to very risky, and sell them to investors. Many of the CDOs that AIGFP insured were backed by subprime mortgages—those issued to people who were unlikely to be able to repay them.

When foreclosures on these home loans rose in 2007, AIGFP was forced to pay out on its insurance policies, incurring around $25 billion in losses. This, along with accounting issues, lowered AIG's credit rating, forcing the company to post collateral for its bondholders, which worsened its financial situation.

AIG was considered "too big to fail" as its collapse would have impacted the entire global economy. Many mutual funds, pension funds, and hedge funds invested in AIG, and the company insured billions of dollars for investment banks such as Goldman Sachs. Money market funds, generally considered safe investments for individuals, were also at risk as they had invested in AIG bonds.

In September 2008, the US government stepped in to save AIG from collapse. The Federal Reserve initially loaned AIG $85 billion in exchange for 79.9% of the company's equity. The terms of the deal were later reworked, and the Federal Reserve and the Treasury Department provided a total bailout package of $180 billion (some sources state $182 billion).

AIG's bailout was controversial, with critics questioning the use of taxpayer money and the payment of bonuses to company officials. However, the bailout ultimately benefited taxpayers, as the government made $22.7 billion in interest on the deal.

AIG survived the financial crisis and repaid its debt to US taxpayers in 2012. In 2017, nine years after the bailout, AIG was removed from the list of "too big to fail" institutions.

AIG's insurance products and services

American International Group, Inc. (AIG) is a leading global insurance organization that provides a wide range of property casualty insurance and other financial services. AIG offers world-class products and expertise to businesses and individuals in approximately 190 countries and jurisdictions through its operations and network partners. The company is committed to using its insights and thought leadership to manage risks and make a positive impact in the communities it serves.

Life Insurance Solutions

AIG offers a range of life insurance solutions to meet the diverse needs of its customers. Their life insurance division, AIG Direct, provides personalized and cost-effective policies, including term life, whole life, guaranteed issue whole life, quality of life, and universal life insurance. AIG Direct has licensed agents who help customers choose the right policy for their families, with flexible coverage and customizable term lengths at affordable rates.

Property Casualty Insurance

AIG provides property casualty insurance to protect individuals and businesses from financial losses due to damage or liability. This includes coverage for aerospace, commercial auto, general liability, property, and workers' compensation claims. AIG's property casualty insurance helps businesses and individuals manage risks and protect their assets.

Retirement Products

AIG Life and Retirement, formerly known as SunAmerica, offers a broad suite of retirement solutions and insurance products to help individuals build confidence and take action toward their retirement goals. AIG's retirement products provide financial security and peace of mind for the future.

Travel Insurance

AIG offers travel insurance plans for individuals and families, providing coverage for trip cancellations, medical expenses, emergency travel, and more. Their travel insurance products are designed to give travelers peace of mind and protection against unexpected events while away from home.

Private Client Insurance

AIG Private Client Insurance, accessed through Private Client Select Insurance Services LLC, offers customized solutions for high-net-worth customers. This service addresses complex risks and provides specialized coverage for individuals with significant assets and unique needs.

Mortgage Insurance

AIG provides mortgage insurance to protect lenders and borrowers in the event of financial losses or default on mortgage loans. This insurance helps mitigate the risks associated with mortgage lending and provides financial security for homeowners.

Other Financial Services

In addition to its core insurance businesses, AIG offers other financial services to meet the diverse needs of its customers. These services include investment management, credit security mechanisms, and risk management solutions for businesses. AIG's financial services are designed to help individuals and businesses protect their financial well-being and manage their risks effectively.

AIG's leadership and corporate structure

American International Group, Inc. (AIG) is an American multinational finance and insurance corporation with operations in over 80 countries. AIG's corporate headquarters are in New York City, and the company serves 87% of the Fortune Global 500 and 83% of the Forbes 2000.

• Paola Bergamaschi, former executive at State Street, Credit Suisse, and Goldman Sachs
• James Cole Jr., chairman and CEO of The Jasco Group
• John Rice, former vice chairman of GE and former president and CEO of the GE Global Growth Organization
• W. Don Cornwell, former chairman and CEO of Granite Broadcasting Corporation
• Linda A. Mills, former vice president of operations at Northrop Grumman Corporation
• Diana M. Murphy, managing director of Rocksolid Holdings and former president of USGA
• Peter R. Porrino, former executive vice president and CFO of XL Group Ltd
• Therese M. Vaughn, former CEO of the National Association of Insurance Commissioners
• Vanessa A. Wittman, former CFO of Glossier, Dropbox, and Marsh McLennan
• Peter Zaffino, chairman and CEO of AIG

The Executive Leadership Team includes:

• Chairman & Chief Executive Officer
• EVP, Chief Executive Officer, North America Insurance
• EVP, Chief Risk Officer
• EVP, Chief Marketing & Communications Officer
• EVP, Reinsurance and Risk Capital Optimization
• EVP, General Counsel
• EVP, Chief Executive Officer, International Insurance
• EVP, Chief Human Resources & Diversity Officer
• EVP, Chief Information Officer
• EVP, Chief Financial Officer
• EVP, Global Chief Underwriting Officer
• Chief of Staff to AIG Chairman & CEO
• EVP, Chief Digital Officer and Global Head of Business Operations & Claims

AIG's leadership has undergone several changes over the years, with the most recent CEO change occurring in March 2021 when Peter Zaffino succeeded Brian Duperreault. Zaffino also became chairman of the AIG board in January 2022.

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