American International Group operates in over 130 countries.[1] The Company's business consists of four core areas: General Insurance, Life Insurance & Retirement Services, Financial Services and Asset Management.[2]
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AIG Life (Australia) underwrites over one million life insurance policies in Australia held through industry pension plans. The general insurance arm offers mainly corporate insurance and is among the top 10 insurers in Australia.[3]
AIG owns 19.8% of People's Insurance Company of China (PICC) through direct and indirect holdings. PICC P&C is China's largest insurer of casualty insurance.
AIG owns a controlling share pack of Beijing Panam International Aviation Academy or BPIAA. BPIAA was established in 2004 as the largest privately-owned flight training academy in China. Its bases located in Wuhai, Bautou, Shijajuan and Handan. In 2008, following the global crisis and economic recession, BPIAA has stopped its operation awaiting company re-purchase from other, more capable investors.
AIG's American International Assurance operations include 2.2 million policy holders.[4]
AIG's AIU Insurance unit has run a P&C insurance in the country since 1946, and is now the largest foreign nonlife insurer with 14,000 agents nationwide.[5] In retail auto and L&H space, AIG owns a number of sizable players including ALICO Japan, AIG Star, AIG Edison, and American Home. The three L&H companies combined serve over 10 million customers (policies) in-force and generated 1,992 billion yen (about $20 billion) for the fiscal year ending in March 2008. The five AIG companies employs about 26,000 staff locally.[6]
AIG is the minority partner with the Tata Group in two insurance companies in India, holding 26 percent each in Tata AIG Life Insurance Co Ltd and Tata AIG General Insurance Co Ltd.[7]
There are three companies under AIG brands in Indonesia: AIG LIFE; AIA, which sells life insurance; and AIU, which sells general insurance. AIG LIFE currently is voted the best insurance company in Indonesia by the Bisnis Indonesia newspaper. In Indonesia, various major banks, both international and local, are part of their distribution channel, such as ABN AMRO (now RBS bank), Bank Central Asia (one of the biggest banks in Indonesia), and Commonwealth Bank.
AIG operates in Pakistan through two subsidiaries: New Hampshire Insurance Company and American Life Insurance Company (ALICO). The group's principal office is in Karachi and it has branch offices in Lahore, Islamabad, Faisalabad and Sialkot. AIG has been selling automobile insurance in Pakistan since 1949. In March 2010, New Hampshire Insurance became the first company in Pakistan to offer terrorism insurance, in collaboration with Allied Bank Ltd.[8]
ALICO first started its operation in Pakistan in 1952 and continued until 1972, when the life insurance industry was nationalised. By that time, ALICO had issued 72,000 policies and had invested more than $36 million in the country’s economy. After denationalisation, ALICO became the first foreign life insurer that to be granted a license to operate in Pakistan in 1994. It began operations on May 25, 1995 with a paid up capital of Rs130 million ($4.2 million). ALICO Pakistan has been listed on the Karachi Stock Exchange since June 15, 1995.
AIG owns Philippine American Life and General Insurance Company (Philamlife), the Philippines' biggest insurance company. It has a total asset of P170 billion ($3.6 billion). Philamlife serves over a million customers and maintains the widest network of over 200 offices and sales agencies nationwide.[9]
Philamlife, on October 3, 2008, announced it is among the assets being sold by AIG to pay off debt to the U.S. government: "it had been identified for possible divestment along with some of its affiliates." AIG identified Philamlife as one of "extremely valuable" assets intended for sale. Philamlife president and CEO Jose Cuisia Jr. said in a statement: "Philamlife remains to be (a) stable and strongly capitalized organization. Our policy owners and clients can be assured that their interests are protected because of the company's financial strength. A change of ownership will not in anyway diminish policy owners' benefits and security. We will remain focused on daily execution of our business and continue to provide our policy owners and clients with the highest levels of service. Philamlife, the largest and most profitable insurance company in the country and the undisputed market leader for over 60 years, is a crown jewel for AIG and will surely attract local and international interest."[10] Cuisia said groups expressed interest to buy Philamlife, including the Yuchengco family which owns Rizal Commercial Banking Corporation. Another possible contender is the formidable Ayala Corporation that owns Bank of the Philippine Islands, Globe Telecom, and Ayala Land among others. Philamlife has total assets of 170 billion pesos ($3.6 billion), also has interests in banking, asset management and outsourcing.[11] But contrary to the report, Philamlife doesn't have any interest on AIG BPSI, an AIG owned outsourcing company based in the Philippines, that services other subsidiary companies of AIG like American General and others.
AIA Singapore is a wholly owned subsidiary of AIG in Singapore. It has more than two million policies in force, more than 3,800 financial services consultants and 800 employees in its Singapore offices. General manager Mark O'Dell resigned on September 18, 2008 in response to policy holders queuing up to cash in their policies in the face of concern of the future of AIG.[12]
AIG operates in the UK with the brands AIG UK, AIG Life and AIG Direct. It has about 3,000 employees, and sponsored the Manchester United football club, paying them the largest amount by a sponsor in history.[13]
In response to redemption demands, AIG Life (UK) suspended redemptions of its AIG Premier Bond money market fund on September 19, 2008 in order to provide an orderly withdrawal of assets.[14]
AIG owns more than two dozen companies licensed to offer insurance in California, according to the California Insurance Commissioner. They include 21st Century Casualty Co.; 21st Century Insurance Co.; AIG Casualty Co.; AIG Centennial Insurance Co.; AIG Premier Insurance Co.; AIU Insurance Co.; American General Indemnity Co.; American Home Assurance Co.; American International Insurance Co. of California Inc.; Birmingham Fire Insurance Co. of Pennsylvania; Commerce And Industry Insurance Co.; GE Auto & Home Assurance Co.; GE Indemnity Insurance Co.; Granite State Insurance Co.; Hartford Steam Boiler Inspection and Insurance Co.; Insurance Co. of the State of Pennsylvania; Landmark Insurance Co.; National Union Fire Insurance Co. of Pittsburgh, Pa; New Hampshire Insurance Co.; Pacific Assurance; Putnam Reinsurance Co.; Transatlantic Reinsurance Co.; United Guaranty Commercial Insurance Co. of North Carolina; United Guaranty Credit Insurance Co.; United Guaranty Residential Insurance Co.; and Yosemite Insurance Co.[15]
Twenty AIG subsidiaries are licensed to do business in Pennsylvania, including National Union Fire Insurance Co. in Pittsburgh, believed to be the second largest AIG underwriter in the nation. Other subsidiaries include New Hampshire Insurance, Insurance Company of the State of Pennsylvania, Granite State Insurance and New Hampshire Indemnity.[16]
AIG writes property and casualty insurance, life and annuity, and workers' compensation insurance in West Virginia. It has 4.7% of the life insurance market and 2.7% of the property and casualty market, as of the end of 2007.[17]
Since 2001 AIG has owned American General Finance Inc., an Evansville, Indiana firm with $29 billion of mortgage backed assets and more than 1,500 branches nationwide.[18][19]
AIG owns International Lease Finance Corporation (ILFC) , the world's largest aircraft leasing company, with hundreds of aircraft including the full range of Boeing and Airbus jetliners, as well as the McDonnell Douglas MD-11 and MD-80 Series. Total assets under lease are $55 billion as of June 30, 2008. Estimates of its value range from $5 billion to $14 billion based on a comparison with rivals.[20][21]
AIG was one of the owners of London City Airport, along with GE and Credit Suisse. The airport was purchased for £750m in 2006 and AIG reportedly sold its 50% stake for an undisclosed sum on September 30, 2008.
AIG/Lincoln was established in 1997 as a strategic partnership between AIG Global Real Estate Investment Corporation, New York, a subsidiary of AIG - American International Group, New York, and Lincoln Property Company, a Dallas based commercial real estate manager...[22][23] It has developed or is currently developing over 2.2 million square meters of real estate in Poland, Hungary, Romania, Czech Republic, Germany, Italy, Spain, Switzerland, Austria and Russia.
As of August 2007, AIG Investments (through its member company AIG Capital Partners, Inc.) acquired a 90% stake in Bulgarian Telecommunications Company (BTC) from Viva Ventures Holding GmbH and certain minority shareholders. At the time, the estimated value of BTC was 1.7 billion euros ($2.3 billion).[24]
As of March 16, 2007, AIG Investments, a division of AIG, completed the purchase of 100% of the stock of P&O Ports North America from Dubai-based Dubai Ports World. At the time, the estimated price was $700m, though AIG did not disclose the exact figure because the number was too low to be deemed significant to the company's asset base.[25]
On July 2, 2007, Marine Terminals Corporation became part of the AIG Global Investment Group through its acquisition by AIG Highstar Capital. MTC provides the shipping community with a comprehensive network of stevedoring, terminal operating and related cargo handling services. Terms were not disclosed.[26]
AIG owns Stowe Mountain Resort, its only ski business.
AIG's connection to Stowe started when C.V. Starr, the company's founder, invested in the resort in 1946. A $300m, 10 year expansion was started in 2005.[27]
AIG owns Ocean Finance, a British provider of home owner loans, mortgages and remortgages.[28]
AIG was the principal sponsor of English football team Manchester United[29] and the Japan Open Tennis Championships .
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