AIG Auto Insurance

American international group is a multinational coverage business enterprise with greater than 88 million customers in one hundred thirty countries. AIG groups hire over sixty four,000 humans in 90 countries. The organization operates via three businesses: AIG property Casualty, AIG lifestyles and Retirement and United warranty company (UGC). AIG belongings Casualty gives coverage merchandise for industrial, institutional and character clients. AIG existence and Retirement gives existence insurance and retirement offerings inside the united states of america. UGC makes a speciality of loan guaranty insurance and loan insurance. AIG additionally specializes in global capital markets operations, direct funding and retained hobbies.

AIG was a critical participant within the economic disaster of 2008. It became bailed out by means of the federal government for $a hundred and eighty billion, and the government took manipulate. The monetary crisis Inquiry commission (FCIC) of the us government said AIG failed frequently as it offered massive quantities of insurance by not hedging its investment. Its large sales of credit score default swaps have been made without setting up starting collateral, setting by capital reserves, or hedging its

publicity — a profound failure in corporate governance, mainly its risk-management practices."


Martin J. Sullivan became CEO of the corporation. He began his profession at AIG as a clerk in its London workplace in 1970.[35] AIG then took on tens of billions of dollars of risk linked with mortgages. It credits tens of billions of dollars of derivatives against default, however did now not buy reinsurance to hedge that threat. Secondly, it used collateral on deposit to buy loan-sponsored securities. while losses hit the mortgage marketplace in 2007-2008, AIG needed to pay out coverage claims and additionally update the losses in its collateral money owed.

AIG purchased the remaining 39% that it did not personal of online auto coverage professional 21st Century coverage in 2007 for $749 million. With the failure of the determine company and the continuing recession in past due 2008, AIG rebranded its insurance unit to 21st Century insurance.



On June 15, 2008, after disclosure of financial losses and next to a falling inventory fee, Sullivan resigned and changed into changed via Robert B. Willumstad, Chairman of the AIG Board of directors in view that 2006. Willumstad turned into pressured by using the united states authorities to step down and turned into replaced with the aid of Ed Liddy on September 17, 2008. AIG's board of directors made Bob Benmosche CEO on August three, 2009 to update Mr. Liddy, who in advance in the yr announced his retirement.