AIG

American International Group, Inc. (AIG) was founded in 1919 by Cornelius Vander Starr in Shanghai, China. Starr initially established the company as an insurance agency to cover foreign businesses and expatriates in China, tapping into the growing international trade market. As the company grew, it expanded into other markets, providing various insurance products. Over the years, AIG developed into a major American multinational finance and insurance corporation, with operations spanning the globe and a wide array of financial services offerings.

During the financial crisis of 2007-2008, American International Group (AIG) faced severe liquidity issues due to its exposure to credit default swaps and other risky financial instruments. On September 16, 2008, the Federal Reserve announced an $85 billion bailout to rescue AIG from imminent collapse. This government intervention aimed to stabilize the financial system, as AIG's failure could have had dire consequences on the global economy. The bailout involved the government taking a 79.9% equity interest in AIG in exchange for providing the emergency loan.

On October 29, 2010, American International Group (AIG) announced the sale of two substantial subsidiaries - American Life Insurance Company (ALICO) and AIA Group Limited. AIG sold ALICO to MetLife for approximately $15.5 billion and later conducted an initial public offering for AIA Group, raising about $20.51 billion. These sales were part of AIG's efforts to repay the U.S. government following the 2008 bailout. The divestment of these assets was crucial for AIG's restructuring plans to return to financial health and independence from government assistance.

On December 11, 2012, American International Group (AIG) announced it had fully repaid the $182.3 billion that the U.S. government provided as part of its bailout during the 2008 financial crisis. Through asset sales, restructuring, and improved operations, AIG managed to repay the taxpayers in full, plus a positive return of over $22 billion. This marked a significant turnaround, as AIG successfully restructured its operations to become more streamlined and financially secure. The completion of this repayment restored its standing and independence in the financial markets.

In March 2017, activist investor Carl Icahn acquired a significant stake in American International Group (AIG), exerting pressure on the insurer to split into smaller companies to improve shareholder value. Icahn's involvement resulted in changes to AIG's board and management, and renewed focus on streamlining operations. The investment reflected a broader trend among activists influencing corporate governance in large publicly traded firms. Icahn argued that splitting AIG would remove its designation as a systemically important financial institution, reducing regulatory burdens and enhancing profitability.

On May 1, 2018, American International Group (AIG) completed its acquisition of Validus Holdings, Ltd., a global provider of reinsurance, primary insurance, and asset management services, for $5.56 billion. This acquisition marked AIG's first major deal since the 2008 financial crisis, signaling its renewed expansion strategy in specialty lines and reinsurance markets. Validus's capabilities in marine, energy, and agriculture markets complemented AIG's existing portfolio, enabling it to better serve clients with a broader range of products and expertise.

On October 26, 2020, American International Group (AIG) announced that it would split into two separate companies: one focusing on its life and retirement business and the other on general insurance. This strategic decision was aimed at simplifying AIG's structure and improving operational focus. The separation was planned as a way to unlock shareholder value and streamline operations, allowing each entity to pursue distinct priorities and growth opportunities. AIG's commitment to a corporate restructuring was part of its ongoing effort to enhance competitiveness and financial performance.

On March 1, 2021, American International Group (AIG) officially appointed Peter Zaffino as its Chief Executive Officer, succeeding Brian Duperreault. Zaffino's leadership came during a pivotal time as AIG continued its restructuring efforts to split into two units and improve its financial performance. Zaffino was tasked with driving the strategic transformation of AIG, focusing on enhancing operational efficiency and shareholder value. Prior to becoming CEO, Zaffino served as AIG's President and Global Chief Operating Officer, bringing significant experience in insurance and risk management.

On June 1, 2021, American International Group (AIG) sold a 9.9% equity stake in its Life and Retirement business to the private equity giant Blackstone Group for $2.2 billion. This transaction was part of AIG's broader efforts to restructure and streamline its business, following its decision to separate its life and retirement units from its core operations. Blackstone's investment was aimed at leveraging its asset management capabilities to enhance the growth and competitiveness of AIG's life insurance offerings, while providing AIG with additional capital to focus on its general insurance business.

On August 1, 2022, American International Group (AIG) launched the initial public offering (IPO) of Corebridge Financial, the stand-alone entity for its life and retirement business, on the New York Stock Exchange. This IPO was a major step in AIG's restructuring plan to separate its life and retirement units from its general insurance operations. The launch marked the culmination of a multiyear effort to streamline AIG's operations and focus more intensively on its core property and casualty insurance business. The move was intended to unlock shareholder value and provide greater strategic flexibility.