AIG believed that what it insured would never have to be covered. While the financial-products section of the company was facing extreme difficulty, the vastly smaller retail-insurance components were still very much in business.
No matter the issue, one thing is clear. On September 16,in exchange of the money it pumped into the company, the U. But when foreclosures rose to incredibly high levels, AIG had to pay out on what it promised to cover.
Greenberg to develop an international accident and health business. New opportunities and directions[ edit ] During the s, AIG continued expanding its market distribution and worldwide network by offering a wide range of specialized products, including pollution liability  and political risk.
However, since then, terms of the initial deal have been reworked. To learn more about bailouts such as this one, be sure to read our related article, Top 6 U. Get a free 10 week email series that will teach you how to start investing.
Delivered twice a week, straight to your inbox. Or, if it did, it would be in insignificant amounts. Reorganization and specialization[ edit ] InC. In addition, AIG sold off a number of its own assets to raise money to pay back the government.
It insured tens of billions of dollars of derivatives against default, but did not purchase reinsurance to hedge that risk. Willumstad was forced by the US government to step down and was replaced by Ed Liddy on September 17, AIG was incorporated as a unifying umbrella organization for most of C.
In it had spent approximately 20 million dollars on lobbying. The chances of having to pay out on this insurance were highly unlikely, and for a while, the CDO insurance plan was highly successful. However, AIG continued to expand its markets by introducing specialized energy, transportation, and shipping products to serve the needs of niche industries.
Sullivan became CEO of the company in An Introduction to learn more about the derivative that took AIG down. When losses hit the mortgage market inAIG had to pay out insurance claims and also replace the losses in its collateral accounts.American International Group, Inc., also known as AIG, is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions.
Fallen Giant: The Amazing Story of Hank Greenberg and the History of AIG. Hoboken, NJ: Wiley. Fallen Giant: The Amazing Story of Hank Greenberg and the History of AIG - Kindle edition by Ronald Shelp, Al Ehrbar. Download it once and read it on your Kindle device, PC, phones or tablets.
Use features like bookmarks, note taking and highlighting while reading Fallen Giant: The Amazing Story of Hank Greenberg and the History of AIG/5(42). For decades, AIG was the world's biggest insurer, a company known around the world for providing protection for individuals, companies, and others.
But in September, the company would have gone. The spring of launched of a series of events that would lead, ultimately, to the near collapse of the insurer AIG four years later. In his book, Fallen Giant, Ron Shelp, who worked with its long-time CEO, follows AIG from its founding as a small insurance venture in China through its growth into a global powerhouse.
AIG - The Fallen Giant 1. F A L L E N G I A N T Case Study of American International Group, Inc. J E N N I F E R D E M A R S. Buttimes have certainly changed, and now, in the Second Editionof Fallen Giant, author Ronald Shelp-who worked alongsideGreenberg and within the AIG organization for many years-with thehelp of Al Ehrbar, sheds light on both AIG, the company, and HankGreenberg, the man/5(42).Download