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AIG Insurance Company

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AIG traces its roots to 1919, when American Cornelius Vander Starr
established a general insurance agency, American Asiatic Underwriters, in
Shanghai, China. Since then, an enterprising spirit, ingenuity, and tenacity
have built the company into one of the world’s leading insurers. Today, AIG
is focused on what it has been known for since the beginning: the willingness
and ability to provide insurance coverage to meet the diverse needs of its
clients.


1919-1929 AIG traces its roots to an insurance organization started by
Cornelius Vander Starr in a two- room office in Shanghai, China
http://www.aig.com/our-95-year-history_3171_437854.html

1919 Cornelius Vander Starr establishes a general insurance company, American
Asiatic Underwriters, in Shanghai, China

1925 American Asiatic Underwriters expands beyond mainland China by opening
branches in Hong Kong, Indo-China (Vietnam), and the Philippines.

1926 The first US office, American International Underwriters (AIU), opens in
New York City.

1930-1939The organization expands its Asian presence and begins operations in Latin America.

1931 C.V. Starr invests in a second life insurance operation, international
Assurance Company, in Hong Kong.

1937 First Latin American market operation opens in Cuba.

1939 Company headquarters relocates from Shanghai, China, to New York City.

1940-1949 After World War II, operations begin in new markets across the
globe, including Japan and Germany.

1946 Soon after World War II, C.V. Starr opens American International
Underwriters offices, in Japan and Germany to provide insurance for the US
military.



1949 C.V.Starr's insurance organization ceases operations in the People's
Republic of China and relocates to Hong Kong.

1950 -1959 Growth continues in the US through the acquisition of a general
insurer, and worldwide with the opening of operations in Australia and the
UK.


1951 AIU establishes its first Middle Eastern operation, in Lebanon.

1952 The acquistion of general insurer Globe and Rutgers Insurance Group,
which includes American Home brand, expands the company's domestic market
presence.

1953 AIU opens offices in the United Kingdom.

1954 Operations begin in South Korea.

1957 AIU opens in Australia.

1960-1969 American International Group, INC. (AIG) is formed as a unifying
umbrella organization and it begins a new era as a public company.

1961 Worldwide personal accident and health division established.

1966 The company begins writing Directors and Officers (D&O)
liability insurance coverage and later becomes a leading provider.

1967 American International Group (AIG) incorporates in Delaware.


1968 Maurice R. Greenberg succeeds C.V. Starr as company leader.

1969 AIG stock begins publicly trading.

1970- 1979 AIG introduces new energy, transportation, and entertainment
products to serve the needs of specialized industries.


1973 AIG enters Sweden.

1975 AIG is the first US insurance organization to establish a direct
business relationship with the People's Republic of China following a visit
by President and CEO Maurice R. Greenberg.

1977 AIG establishes a joint venture operation in Egypt.


1979 AIG forms joint venture operations with Eastern European insurers in
Hungry, Poland, and Romania.

1980- 1989 AIG lists its shares on the New York Stock Exchange and expands
its business lines to include mortgage insurance.

1980 A pollution liability program is introduced.

1981 AIG acquires mortgage insurer United Guaranty Corporation (UGC).

1984 (Oct 10) AIG begins trading on the New York Stock Exchange.

1987 AIG is the first foreign organization to list on the Tokyo Stock
Exchange.

1990-1999 AIG returns to its roots in China when it receives the first oreign
insurance license granted in over 40 years by the Chinese government. In the
US, the company acquires a leading retirement saving provider.

1992 Lloyd's of London and AIG reach an agreement to establish the first
insurance company underwriting operation located at Lloyd's.

1992 The People's Republic of China grants AIG a license to operate a life
and non-life insurance business i Shanghai.
1994 AIG receives a joint venture license to operate in Russia.

1995 AIG internet site, www.aig.com, launches.

1997 American Home, an AIG subsidiary, receives a license to market
automobile insurance to Japanese consumers.

1997 AIG launches microinsurance, a global operations, with the Foundation
for International Community Assistance (FINCA), in Uganda.

1999 AIG aquires Sun America, Inc., a leading retirement and financial
services company.

2000- 2009 AIG strengthens its position in the US life insurance market, but
by the end of the decade, a global financial crisis begins, and the US
government steps in to support the company.

2001 Tata   and AIG form a joint venture general insurance company in India.

2001 AIG acquires American General Corporation .

2003 Purchasing 9.9% of capital shares, AIG invests in the People's Insurance
Company of China (PICC)

2005 Martin J. Sullivan is appointed AIG President and CEO.

2005 AIG receives a general insurance license in Vietnam.

2005 The company's Disaster Rlief Fund aids Hurricane Katrina recovery and
humanitarian efforts.


2006 AIG aquires Travel Guard ,a provider of travel insurance programs and
emergency travel assistance.

2007 AIG acquires Matrix Direct, Inc., a direct marketer of term life
insurance.

2008 AIG Chairman Robert Willumstad becomes CEO.

2008 a FINANCIAL CRISIS HITS THE us, THE GOVERNMENT PROVIDES SUPPORT TO aig,
AND eDWARD m. Liddy becomes AIG Chairman and Chief Executive Officer.

2009Robert H. Benmosche is named AIG President and CEO.

2009 AIG befins using social media, with the company's first tweet on
Twitter, by Matrix Direct.

2010-present AIG restructures itself, fully repays assistance from US
government plus a profit, restores its reputation, and relaunches its brand.

2011 AIG executes its plan to repay the US government and position the US
Treasury to exit its ownership stake in AIG.

2011 The company expands in Japan by acquiring Fuji Fire and Marine, a
property casualty insurer.

2011 AIG supports relief efforts following a major earthquake and tsunami
in Japan.

2012 AIG rebrands and introduces a new logo.

2014 Peter D. Hancock is named AIG President and CEO.


http://www.aig.com/our-95-year-history_3171_437854.html


A.I.G. Lists Banks It Paid With U.S. Bailout Funds


By MARY WILLIAMS WALSH

Published: March 15, 2009


Amid rising pressure from Congress and taxpayers, the American International Group on Sunday released the names of dozens of financial institutions that benefited from the Federal Reserve’s decision last fall to save the giant insurer from collapse with a huge rescue loan.

Mark Lennihan/Associated Press

With public anger rising, A.I.G. disclosed some financial institutions that benefited from the federal bailouts meant to prop up the troubled insurance giant.

Financial companies that received multibillion-dollar payments owed by A.I.G. include Goldman Sachs ($12.9 billion), Merrill Lynch ($6.8 billion), Bank of America ($5.2 billion), Citigroup ($2.3 billion) and Wachovia ($1.5 billion).

Big foreign banks also received large sums from the rescue, including Société Générale of France and Deutsche Bank of Germany, which each received nearly $12 billion; Barclays of Britain ($8.5 billion); and UBS of Switzerland ($5 billion).

A.I.G. also named the 20 largest states, starting with California, that stood to lose billions last fall because A.I.G. was holding money they had raised with bond sales.

In total, A.I.G. named nearly 80 companies and municipalities that benefited most from the Fed rescue, though many more that received smaller payments were left out.

The list, long sought by lawmakers, was released a day after the disclosure that A.I.G. was paying out hundreds of millions of dollars in bonuses to executives at the A.I.G. division where the company’s crisis originated. That drew anger from Democratic and Republican lawmakers alike on Sunday and left the Obama administration scrambling to distance itself from A.I.G.

“There are a lot of terrible things that have happened in the last 18 months, but what’s happened at A.I.G. is the most outrageous,” Lawrence H. Summers, an economic adviser to President Obama who was Treasury secretary in the Clinton administration, said Sunday on “This Week” on ABC. He said the administration had determined that it could not stop the bonuses.

But some members of Congress expressed outrage over the bonuses. Representative Elijah E. Cummings, a Democrat of Maryland who had demanded more information about the bonuses last December, accused the company’s chief executive, Edward M. Liddy, of rewarding reckless business practices.

“A.I.G. has been trying to play the American people for fools by giving nearly $1 billion in bonuses by the name of retention payments,” Mr. Cummings said on Sunday. “These payments are nothing but a reward for obvious failure, and it is an egregious offense to have the American taxpayers foot the bill.”

An A.I.G. spokeswoman said Sunday that the company would not identify the recipients of these bonuses, citing privacy obligations.

Ever since the insurer’s rescue began, with the Fed’s $85 billion emergency loan last fall, there have been demands for a full public accounting of how the money was used. The taxpayer assistance has now grown to $170 billion, and the government owns nearly 80 percent of the company.

But the insurance giant has refused until now to disclose the names of its trading partners, or the amounts they received, citing business confidentiality.

A.I.G. finally relented after consulting with the companies that received the government support. Mr. Liddy said in a statement on Sunday: “Our decision to disclose these transactions was made following conversations with the counterparties and the recognition of the extraordinary nature of these transactions.”

Still, the disclosure is not likely to calm the ire aimed at the company and its trading partners.

The Fed chairman, Ben S. Bernanke, appearing on “60 Minutes” on CBS on Sunday night, said: “Of all the events and all of the things we’ve done in the last 18 months, the single one that makes me the angriest, that gives me the most angst, is the intervention with A.I.G.”

He went on: “Here was a company that made all kinds of unconscionable bets. Then, when those bets went wrong, they had a — we had a situation where the failure of that company would have brought down the financial system.”

In deciding to rescue A.I.G., the government worried that if it did not bail out the company, its collapse could lead to a cascading chain reaction of losses, jeopardizing the stability of the worldwide financial system.

The list released by A.I.G. on Sunday, detailing payments made between September and December of last year, could bolster that justification by illustrating the breadth of losses that might have occurred had A.I.G. been allowed to fail. Some of the companies, like Goldman Sachs and Société Générale, had exposure mainly through A.I.G.’s derivatives program. Others, though, like Barclays and Citigroup, stood to lose mainly because they were customers of A.I.G.’s securities-lending program, which does not involve derivatives.

But taxpayers may have a hard time accepting that so many marquee financial companies — including some American banks that received separate government help and others based overseas — benefiting from government money.

The outrage that has been aimed at A.I.G. could complicate the Obama administration’s ability to persuade Congress to authorize future bailouts.

Patience with the company’s silence began to run out this month after it disclosed the largest loss in United States history and had to get a new round of government support. Members of Congress demanded in two hearings to know who was benefiting from the bailout and threatened to vote against future bailouts for anybody if they did not get the information.

“A.I.G.’s trading partners were not innocent victims here,” said Senator Christopher J. Dodd, the Connecticut Democrat who presided over one recent hearing. “They were sophisticated investors who took enormous, irresponsible risks.”

The anger peaked over the weekend when correspondence surfaced showing that A.I.G. was on the brink of paying rich bonuses to executives who had dealt in the derivative contracts at the center of A.I.G.’s troubles.

Representative Barney Frank, Democrat of Massachusetts and chairman of the House Financial Services Committee, implicitly questioned the Treasury Department’s judgment about the whether the bonuses were binding.

“We need to find out whether these bonuses are legally recoverable,” Mr. Frank said in an interview on "Fox News Sunday."

Many of the institutions that received the Fed payments were owed money by A.I.G. because they had bought its credit derivatives — in essence, a type of insurance intended to protect buyers should their investments turn sour.

As it turned out, many of their investments did sour, because they were linked to subprime mortgages and other shaky loans. But A.I.G. was suddenly unable to honor its promises last fall, leaving its trading partners exposed to potentially big losses.

When A.I.G. received its first rescue loan of $85 billion from the Fed, in September, it forwarded about $22 billion to the companies holding its shakiest derivatives contracts. Those contracts required large collateral payments if A.I.G.’s credit was downgraded, as it was that month.

Among the beneficiaries of the government rescue were Wall Street firms, like Goldman Sachs, JPMorgan and Merrill Lynch that had argued in the past that derivatives were valuable risk-management tools that skilled investors could use wisely without any intervention from federal regulators. Initiatives to regulate financial derivatives were beaten back during the administrations of Presidents Bill Clinton and George W. Bush.

Goldman Sachs had said in the past that its exposure to A.I.G.’s financial trouble was “immaterial.” A Goldman Sachs representative was not reachable on Sunday to address whether that characterization still held. When asked about its exposure to A.I.G. in the past, Goldman Sachs has said that it used hedging strategies with other investments to reduce its exposure.

Until last fall’s liquidity squeeze, A.I.G. officials also dismissed those who questioned its derivatives operation, saying losses were out of the question.


Edmund L. Andrews and Jackie Calmes contributed reporting.

http://www.nytimes.com/2009/03/16/business/16rescue.html?ref=business&_r=0