American International Group (AIG)

Abstract

This paper tends to discuss various aspects related to American International Group (AIG) and how it has shaped up over the years. This paper also throws light on some of its key competitors operating in different sectors along with its different subsidiaries.

Table of Contents

Abstractii

Introduction1

Discussion1

History1

Profitability2

Subsidiaries3

Primary Competitors3

Conclusion4

American International Group (AIG)

Introduction

American International Group (AIG) tends to operate in the field of insurance, although they tend to cover general insurance along with Life insurance and does offer services after retirement. American International Group (AIG) tends to operate from New York serving as its headquarters and stretches out to Far East. American International Group (AIG) currently holds 63, 000 people as its employee. Today AIG stands as the World's leading insurance and financial organization with their branches stretched out to serve individual, commercial and institutional customers. AIG tends to operate through three divisions such as Chartis, Sun America and Financial services. AIG growth can be gauged by the fact they are also affianced in the business of commercial aircraft leasing.

Discussion

History American International Group (AIG) tends to extract its roots form the year 1919 where an American Entrepreneur named Cornelius Vander Starr founded a diminutive insurance company in china. The agency was called American Asiatic Underwriters (AAU); however, he later on went to introduce the idea of life insurance in china through another insurance agency named Asia Life. He is considered as the pioneer of life insurance in china where his idea gained a lot of popularity among the Chinese people. Only in 10 years of its operation group expanded its offices and agencies throughout china along with countries like Indonesia, Malaysia, and Philippines to be among the prominent ones. The American Entrepreneur first entered the American market in 1926 by setting up an office of American International Underwriters (AIU). However by 1930's AIU ascertained its regional headquarter in Cuba but soon, they were forced to move their headquarters from china to New York due to worsening of the political situation in the country (Michael & Robert, 2005). It was in the year 1959 when the group decided to stretch itself across Western Europe and simultaneously started its operations in Middle East, Australia and North Africa. Within 10 years, the group had established offices and agencies across China and in Hong Kong, Indonesia; Jakarta, Indonesia; Kuala Lumpur, Malaysia; and the Philippines. Mr. Starr made his first move into the US market with the formation of American ...