American International Group#Bailout litigation

File:North China Daily News Building Shanghai Simon Fieldhouse.jpg on the Bund, Shanghai (elevation): the original home of what became AIG; now the AIA building.]]

File:AIG New York building at dusk.jpg was known as the American International Building.]]

AIG was founded December 19, 1919 when American Cornelius Vander Starr (1892–1968) established a general insurance agency, American Asiatic Underwriters (AAU), in Shanghai, China.{{cite news|last=Laing|first=Jonathan R.|title=Are the Glory Years Over? – Much Slower Growth Seems in the Offing for AIG|newspaper=Barron's|date=July 8, 1991}} Business grew rapidly, and two years later, Starr formed a life insurance operation.{{cite news|last=Tracer|first=Zachary|title=Benmosche Exits Greenberg Jewel Linked to AIG Founding.|url=https://www.bloomberg.com/news/articles/2010-10-22/aig-divests-greenberg-s-asian-jewel-that-thiam-failed-to-acquire-timeline|access-date=February 21, 2013|newspaper=Bloomberg Businessweek|date=December 18, 2012|archive-date=January 21, 2016|archive-url=https://web.archive.org/web/20160121190814/http://www.bloomberg.com/news/articles/2010-10-22/aig-divests-greenberg-s-asian-jewel-that-thiam-failed-to-acquire-timeline|url-status=live}} By the late 1920s, AAU had branches throughout China and Southeast Asia, including the Philippines, Indonesia, and Malaysia.{{cite news|title=AIG Europe – History|newspaper=Marketline|date=February 18, 2004}} In 1926, Starr opened his first office in the United States, American International Underwriters Corporation (AIU).{{cite news|last=Bandler|first=James|title=Hank's Last Stand|url=https://money.cnn.com/2008/09/26/magazines/fortune/bandler_greenberg.fortune/index.htm.|access-date=February 21, 2013|newspaper=Fortune|date=October 7, 2008}} He also focused on opportunities in Latin America and, in the late 1930s, AIU entered Havana, Cuba.{{cite news | title=American International Group Inc (New York Stock Exchange) | url=https://www.reuters.com/finance/stocks/companyProfile?symbol=AIG.N | publisher=Thomson Reuters | work=Company profile | location=New York| access-date=March 18, 2009| archive-url=https://web.archive.org/web/20090220123409/https://www.reuters.com/finance/stocks/companyProfile?symbol=AIG.N| archive-date=February 20, 2009 | url-status=live}} The steady growth of the Latin American agencies proved significant as it would offset the decline in business from Asia due to the impending World War II. In 1939, Starr moved his headquarters from Shanghai, China, to New York City.{{cite news | title=AIG: What does this US giant do? | url=http://news.bbc.co.uk/2/hi/business/7621574.stm | date=September 17, 2008 |work=BBC | access-date=March 18, 2009| archive-url=https://web.archive.org/web/20090320013252/http://news.bbc.co.uk/2/hi/business/7621574.stm| archive-date=March 20, 2009 | url-status=live}}{{cite web|title=Foreign Office Files for China, 1949–1976 |url=http://www.adam-matthew-publications.co.uk/digital_guides/fo_china_part_1/Publishers-Note.aspx |publisher=Adam Matthew Publications |work=Part 1: Complete Files for 1949: Publisher's Note |access-date=March 18, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20081013085518/http://www.adam-matthew-publications.co.uk/digital_guides/fo_china_part_1/Publishers-Note.aspx |archive-date=October 13, 2008 }}

After World War II, American International Underwriters (AIU) entered Japan and Germany,{{cite news|title=80 Years of Growth and Diversification; the AIG Story|newspaper=Business Insurance|date=April 12, 1999}} to provide insurance for American military personnel. Throughout the late 1940s and early 1950s, AIU continued to expand in Europe, with offices opening in France, Italy, and the United Kingdom.{{cite news|last=Collins|first=Stuart|title=Greenberg Hails London Role|newspaper=Insurance Day|date=May 28, 2003}} In 1952, Starr began to focus on the American market by acquiring Globe & Rutgers Fire Insurance Company and its subsidiary, American Home Fire Assurance Company.{{cite book|last=Ehrbar|first=Al|title=Fallen Giant The Amazing Story of Hank Greenberg and the History of AIG|year=2006|publisher=John Wiley & Sons, Inc.|location=Hoboken, New Jersey|isbn=0-471-91696-X|pages=[https://archive.org/details/fallengiantamazi00rons/page/82 82–83 and 91]|url=https://archive.org/details/fallengiantamazi00rons/page/82}} By the end of the decade, C.V. Starr's general and life insurance organization included an extensive network of agents and offices in over 75 countries.

In 1960, C.V. Starr hired Hank Greenberg to develop an international accident and health business.{{cite news|title=Greenberg Joining C.V. Starr & Co. in Development Capacity|newspaper=Insurance Advocate|date=December 17, 1960}} Two years later, Greenberg reorganized one of C.V. Starr's U.S. holdings into a successful multiple line carrier. Greenberg focused on selling insurance through independent brokers rather than agents to eliminate agent salaries. Using brokers, AIU could price insurance according to its potential return even if it suffered decreased sales of certain products for great lengths of time with very little extra expense. In 1967, American International Group, Inc. (AIG) was incorporated as a unifying umbrella organization for most of C.V. Starr's general and life insurance businesses.{{cite news|last=Bowers|first=Barbara|title=Building a Global Platform|newspaper=Best's Review/Life-Health Edition|date=August 1998}} In 1968, Starr named Greenberg his successor. The company went public in 1969.{{cite book | title=Hoover's Handbook of American Business | url=https://books.google.com/books?id=0okYAAAAIAAJ&q=%22AIG+went+public+in+1969%22 | edition=9th | year=1999 | page=134 | publisher=Hoover's Business Press | location=Austin, TX | isbn=978-1-57311-045-7 | access-date=March 18, 2009 | archive-date=July 16, 2023 | archive-url=https://web.archive.org/web/20230716083110/https://books.google.com/books?id=0okYAAAAIAAJ&q=%22AIG+went+public+in+1969%22 | url-status=live }}

File:AIG Headquarters.jpg

The 1970s presented many challenges for AIG as operations in the Middle East and Southeast Asia were curtailed or ceased altogether due to the changing political landscape. However, AIG continued to expand its markets by introducing specialized energy, transportation, and shipping products to serve the needs of niche industries.{{cite book|last=Cunningham|first=Lawrence A|title=The AIG Story|year=2013|publisher=John Wiley & Sons, Inc.|location=Hoboken, New Jersey|isbn=978-1-118-34587-0|pages=14–15}}

During the 1980s, AIG continued expanding its market distribution and worldwide network by offering a wide range of specialized products, including pollution liability and political risk. In 1984, AIG listed its shares on the New York Stock Exchange (NYSE).{{cite news|last=Barreto|first=Elzio|title=AIG marks end of era with $6.45 billion AIA stake sale|url=https://www.reuters.com/article/us-aia-aig-idUSBRE8BG01020121218|access-date=March 7, 2013|newspaper=Reuters|date=December 16, 2012|archive-date=January 29, 2016|archive-url=https://web.archive.org/web/20160129045829/http://www.reuters.com/article/us-aia-aig-idUSBRE8BG01020121218|url-status=live}} Throughout the 1990s, AIG developed new sources of income through diverse investments, including the acquisition of International Lease Finance Corporation (ILFC), a provider of leased aircraft to the airline industry. In 1992, AIG received the first foreign insurance license granted in over 40 years by the Chinese government. Within the U.S., AIG acquired SunAmerica Inc. a retirement savings company managed by Eli Broad, in 1999.{{cite news|title=Insurers Set $17.8 Billion Stock Deal|newspaper=The New York Times|date=August 21, 1998|url=https://www.nytimes.com/1998/08/21/business/insurers-set-17.8-billion-stock-deal.html|access-date=2019-06-25|archive-date=September 14, 2019|archive-url=https://web.archive.org/web/20190914201439/https://www.nytimes.com/1998/08/21/business/insurers-set-17.8-billion-stock-deal.html|url-status=live}}

File:Los Angeles Valley, Warner Center, AIG Towers.jpg.]]

The early 2000s saw a marked period of growth as AIG acquired American General Corporation, a leading domestic life insurance and annuities provider,{{cite news|title=AIG Closes American General Acquisition|newspaper=National Underwriter Life & Health|date=August 30, 2001}} and AIG entered new markets including India.{{cite news|title=Tata-AIG to Kick off with IT Products|newspaper=Business Line Internet Edition|url=http://www.hindu.com/businessline/2001/02/12/stories/14124102.htm|date=February 11, 2001|access-date=July 10, 2013|archive-date=July 10, 2013|archive-url=https://archive.today/20130710212624/http://www.hindu.com/businessline/2001/02/12/stories/14124102.htm|url-status=dead}} In February 2000, AIG created a strategic advisory venture team with the Blackstone Group and Kissinger Associates "to provide financial advisory services to corporations seeking high level independent strategic advice".{{cite web|url=http://ir.aigcorporate.com/phoenix.zhtml?c=76115&p=irol-newsArticle&ID=231037&highlight |title=AMERICAN INTERNATIONAL GROUP, INC., THE BLACKSTONE GROUP L.P. AND KISSINGER ASSOCIATES, INC. ANNOUNCE A NEW STRATEGIC ADVISORY VENTURE}} AIG was an investor in Blackstone from 1998 to March 2012, when it sold all of its shares in the company. Blackstone acted as an adviser for AIG during the 2008 financial crisis.{{cite web| url=https://dealbook.nytimes.com/2012/03/02/a-i-g-sheds-stake-in-blackstone/| title=A.I.G. Sheds Stake in Blackstone| author=De La Merced, Michael J.| date=March 2, 2002| work=The New York Times Deal Book| access-date=March 5, 2017| archive-date=September 22, 2015| archive-url=https://web.archive.org/web/20150922233259/http://dealbook.nytimes.com/2012/03/02/a-i-g-sheds-stake-in-blackstone/| url-status=live

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In March 2003 American General merged with Old Line Life Insurance Company.{{cite web|url=https://www.rootfin.com/do-you-have-an-old-line-life-insurance-policy/|title=Do You Have An Old Line Life Insurance Policy?|website=www.rootfin.com|access-date=December 28, 2017|archive-date=December 28, 2017|archive-url=https://web.archive.org/web/20171228232254/https://www.rootfin.com/do-you-have-an-old-line-life-insurance-policy/|url-status=live}}

In the early 2000s, AIG made significant investments in Russia as the country recovered from the 1998 Russian financial crisis. In July 2003, Maurice Greenberg met with Putin to discuss AIG's investments and improving U.S.-Russia economic ties, in anticipation of Putin's meeting with U.S. President George W. Bush later that year."{{cite news |last1=Semenenko |first1=Igor |title=AIG, Interros Set Up $500M Funds |url=http://old.themoscowtimes.com/business/article/tmt/236859.html |access-date=13 February 2019 |agency=The Moscow Times |date=30 July 2003 |archive-date=March 27, 2019 |archive-url=https://web.archive.org/web/20190327090100/http://old.themoscowtimes.com/business/article/tmt/236859.html |url-status=live }}

In November 2004, AIG reached a $126 million (~${{Format price|{{Inflation|index=US-GDP|value=126000000|start_year=2004}}}} in {{Inflation/year|US-GDP}}) settlement with the U.S. Securities and Exchange Commission and the Justice Department partly resolving a number of regulatory matters, and the company needed to continue to cooperate with investigators continuing to probe the sale of a non-traditional insurance product.{{cite web|url=http://www.insurancejournal.com/news/national/2004/11/24/47993.htm |title=AIG Forks Up $126 million to SEC on PNC Deals |date=November 24, 2004 |publisher=Insurance Journal |access-date=September 18, 2008| archive-url=https://web.archive.org/web/20080829181256/http://www.insurancejournal.com/news/national/2004/11/24/47993.htm| archive-date=August 29, 2008 | url-status=live}}

In 2005, AIG became embroiled in a series of fraud investigations conducted by the Securities and Exchange Commission, U.S. Justice Department, and New York State Attorney General's Office. Greenberg was ousted amid an accounting scandal in February 2005.{{cite web |url=https://www.nbcnews.com/id/wbna14704060 |title=Two charges against AIG's Greenberg dropped |website=NBC News |access-date=July 11, 2011 |archive-date=December 13, 2013 |archive-url=https://web.archive.org/web/20131213232218/http://www.nbcnews.com/id/14704060/ |url-status=live }}{{cite news |last=Zuill |first=Lilla |url=https://www.reuters.com/article/ousiv/idUSTRE5222EV20090303 |title=AIG's meltdown has roots in Greenberg era |work=Reuters |access-date=July 11, 2011 |date=March 3, 2009 |archive-date=March 7, 2009 |archive-url=https://web.archive.org/web/20090307133921/http://www.reuters.com/article/ousiv/idUSTRE5222EV20090303 |url-status=live }} The New York Attorney General's investigation led to a $1.6 billion fine for AIG and criminal charges for some of its executives.{{cite web | url = http://seattletimes.com/html/businesstechnology/2008676239_apgenreaigtrial.html | title = AIG executive sentenced to 4 years in prison | publisher =The Seattle Times | access-date = May 22, 2014 | archive-date = May 22, 2014 | archive-url = https://web.archive.org/web/20140522125334/http://seattletimes.com/html/businesstechnology/2008676239_apgenreaigtrial.html | url-status = live }}

On May 1, 2005, investigations conducted by outside counsel at the request of AIG's Audit Committee and the consultation with AIG's independent auditors, PricewaterhouseCoopers LLP resulted in AIG's decision to restate its financial statements for the years ended December 31, 2003, 2002, 2001 and 2000, the quarters ended March 31, June 30 and September 30, 2004, and 2003 and the quarter ended December 31, 2003.{{cite web |url=https://www.sec.gov/Archives/edgar/data/5272/000095012305005362/y08505exv99w1.txt |title=AIG Nears Completion of Internal Review; Will Restate Results Provides Update on Internal Review and Timing |access-date=August 27, 2017 |archive-date=June 4, 2017 |archive-url=https://web.archive.org/web/20170604125200/https://www.sec.gov/Archives/edgar/data/5272/000095012305005362/y08505exv99w1.txt |url-status=live }}

On November 9, 2005, the company was said to have delayed its third-quarter earnings report because it had to restate earlier financial results, to correct accounting errors.{{cite web |url=http://www.highbeam.com/doc/1P1-115058504.html |archive-url=https://web.archive.org/web/20131105225406/http://www.highbeam.com/doc/1P1-115058504.html |url-status=dead |archive-date=2013-11-05 |title= AIG to Again Restates Previous Results }}

Martin J. Sullivan became CEO of the company in 2005. He began his career at AIG as a clerk in its London office in 1970.{{cite news|first1=Edmund L. |last1=Andrews |first2=Michael J. |last2=de la Merced |first3=Mary |last3=Williams Walsh |title=Fed's $85 billion Loan Rescues Insurer |date=September 16, 2008 |url=https://www.nytimes.com/2008/09/17/business/17insure.html |work=The New York Times |access-date=September 17, 2008 |archive-url=https://web.archive.org/web/20110430061807/http://www.nytimes.com/2008/09/17/business/17insure.html |archive-date=April 30, 2011 |url-status=live }} AIG then took on tens of billions of dollars of risk associated with mortgages. It insured tens of billions of dollars of derivatives against default, but did not purchase reinsurance to hedge that risk. Secondly, it used collateral on deposit to buy mortgage-backed securities. When losses hit the mortgage market in 2007–2008, AIG had to pay out insurance claims and also replace the losses in its collateral accounts.Maurice R. Greenberg and Lawrence A. Cunningham, The AIG Story (2013)

AIG purchased the remaining 39% that it did not own of online auto insurance specialist 21st Century Insurance in 2007 for $749 million.{{cite news |url=https://www.latimes.com/archives/la-xpm-2007-sep-28-fi-aig28-story.html |title=AIG buys 21st Century Insurance |work=Los Angeles Times |date=September 28, 2007 |access-date=February 21, 2020 |archive-date=March 5, 2016 |archive-url=https://web.archive.org/web/20160305231303/http://articles.latimes.com/2007/sep/28/business/fi-aig28 |url-status=live }} With the failure of the parent company and the continuing recession in late 2008, AIG rebranded its insurance unit to 21st Century Insurance.{{cite web|url=http://www.tradingmarkets.com/.site/news/Stock%20News/2053392/|archive-url=https://web.archive.org/web/20081220061735/http://www.tradingmarkets.com/.site/news/Stock%20News/2053392/|url-status=dead|archive-date=December 20, 2008|title=AIG rebrand US auto insurance unit 21st Century Insurance, and cut jobs|date=November 26, 2008|access-date=December 3, 2008}}{{cite web|url=http://www.ifawebnews.com/articles/2008/11/26/news/property/doc492c16082e4df440597990.txt|archive-url=https://web.archive.org/web/20190217030458/http://www.ifawebnews.com/articles/2008/11/26/news/property/doc492c16082e4df440597990.txt|url-status=dead|archive-date=February 17, 2019|title=AIG renaming auto insurance division, cutting jobs|date=November 26, 2008|access-date=December 3, 2008}}

On June 11, 2008, three stockholders, collectively owning 4% of the outstanding stock of AIG, delivered a letter to the Board of Directors of AIG seeking to oust CEO Martin Sullivan and make certain other management and Board of Directors changes.{{cite news |url=https://www.bloomberg.com/apps/news?pid=20601103&sid=asOzAMceAsiY |title=AIG Investors Seek Ouster of Chief Executive Sullivan |date=June 11, 2008 |publisher=Bloomberg News |access-date=July 21, 2008 |archive-date=July 16, 2023 |archive-url=https://web.archive.org/web/20230716083615/https://www.bloomberg.com/politics?pid=20601103&sid=asOzAMceAsiY |url-status=live }}

On June 15, 2008, after disclosure of financial losses and subsequent to a falling stock price, Sullivan resigned and was replaced by Robert B. Willumstad, Chairman of the AIG Board of Directors since 2006. Willumstad was forced by the US government to step down and was replaced by Ed Liddy on September 17, 2008.{{cite news | title=Former AIG CEO Willumstad foregoes some stock awards | url=https://www.reuters.com/article/ousivMolt/idUSTRE4BT5CL20081230 | date=December 30, 2008 | publisher=Thomson Reuters | location=New York | access-date=March 18, 2009 | first=Lilla | last=Zuill | archive-date=September 11, 2020 | archive-url=https://web.archive.org/web/20200911154143/https://www.reuters.com/article/ousivMolt/idUSTRE4BT5CL20081230 | url-status=live }} AIG's board of directors named Bob Benmosche CEO on August 3, 2009, to replace Liddy, who earlier in the year announced his retirement.{{cite news |url=https://www.washingtonpost.com/wp-dyn/content/article/2009/08/03/AR2009080302562.html |title=The Washington Post, "AIG Names Robert Benmosche New President and CEO" |newspaper=The Washington Post |date=August 3, 2009 |access-date=July 11, 2011 |first=Brady |last=Dennis |archive-date=November 11, 2012 |archive-url=https://web.archive.org/web/20121111144236/http://www.washingtonpost.com/wp-dyn/content/article/2009/08/03/AR2009080302562.html |url-status=live }}

{{Further|Subprime mortgage crisis|2008 financial crisis}}

In late 2008, the federal government bailed out AIG for $180 billion, and technically assumed control, because many believed its failure would endanger the financial integrity of other major firms that were its trading partners--Goldman Sachs, Morgan Stanley, Bank of America and Merrill Lynch, as well as dozens of European banks.On The Brink, Henry M. Paulson, Jr., 2010, p. 233,[https://books.google.com/books?id=OB5Ne0JlQWIC&pg=PT81&q=%22Peer%20Steinbr%C3%BCck%2C%20the%20German%20finance%20minister%2C%20called%20to%20say%20that%20it%20was%20unthinkable%20AIG%20could%20go%20down.%20Christine%20Lagarde%2C%20the%20French%20finance%20minister%2C%20echoed%20his%20view%3A%20everyone%20was%20exposed%20to%20AIG%2C%20and%20its%20failure%20would%20be%20catastrophic.%22 "Tuesday, September 16, 2008 . . . Peer Steinbrück, the German finance minister, called to say that it was unthinkable AIG could go down. Christine Lagarde, the French finance minister, echoed his view: everyone was exposed to AIG, and its failure would be catastrophic."] {{Webarchive|url=https://web.archive.org/web/20230716083614/https://books.google.com/books?id=OB5Ne0JlQWIC&pg=PT81&q=%22Peer%20Steinbr%C3%BCck%2C%20the%20German%20finance%20minister%2C%20called%20to%20say%20that%20it%20was%20unthinkable%20AIG%20could%20go%20down.%20Christine%20Lagarde%2C%20the%20French%20finance%20minister%2C%20echoed%20his%20view%3A%20everyone%20was%20exposed%20to%20AIG%2C%20and%20its%20failure%20would%20be%20catastrophic.%22 |date=July 16, 2023 }}{{Cite news|url=https://www.thenation.com/article/aig-bailout-scandal/|title=The AIG Bailout Scandal|last=Greider|first=William|date=2010-08-06|work=The Nation|access-date=2019-11-24|language=en-US|issn=0027-8378|archive-date=December 21, 2019|archive-url=https://web.archive.org/web/20191221145245/https://www.thenation.com/article/aig-bailout-scandal/|url-status=dead}} In January 2011, the Financial Crisis Inquiry Commission issued one of many critical governmental reports, deciding that AIG failed and was rescued by the government primarily because its enormous sales of credit default swaps were made without putting up the initial collateral, setting aside capital reserves, or hedging its exposure, which one analyst considered a profound failure in corporate governance, particularly its risk management practices. Other analysts believed AIG's failure was possible because of the sweeping deregulation of over-the-counter (OTC) derivatives, including credit default swaps, which effectively eliminated federal and state regulation of these products, including capital and margin requirements that would have lessened the likelihood of AIG's failure.{{cite book|url=https://archive.org/details/conciseencyclope0000rose|url-access=registration|title=The Concise Encyclopedia of The Great Recession 2007–2012|author=Rosenberg|first=Jerry M.|publisher=Scarecrow Press|year=2012|isbn=9780810883406|page=[https://archive.org/details/conciseencyclope0000rose/page/244 244]}}{{cite book|author1=Asli Yüksel Mermod|author2=Samuel O. Idowu|title=Corporate Social Responsibility in the Global Business World|url=https://books.google.com/books?id=KVqRAAAAQBAJ&pg=PA127|year=2013|publisher=Springer |page=127|isbn=9783642376207}}

Illustrating the danger of an AIG bankruptcy, a September 17, 2008, CNN Money article stated, "But in AIG's case, the situation is even more serious. The company is much larger and complex than Lehman Brothers and its assets hitting the market all at once would likely cause worldwide chaos and send values plummeting. Experts question whether there are even enough qualified buyers out there to digest the company and its subsidiaries."[https://money.cnn.com/2008/09/17/news/companies/aig_explainer/index.htm Why the Fed pulled the trigger on AIG: What did the government get for its $85 billion? Time to try to unwind a company with $1 trillion in assets.] {{Webarchive|url=https://web.archive.org/web/20200111165242/https://money.cnn.com/2008/09/17/news/companies/aig_explainer/index.htm |date=January 11, 2020 }} CNN Money, Tami Luhby, Sept. 17, 2008.

AIG had sold credit protection through its London unit in the form of credit default swaps (CDSs) on collateralized debt obligations (CDOs) but by 2008, they had declined in value.{{cite news|last=Morgenson|first=Gretchen|title=Behind Insurer's Crisis, Blind Eye to a Web of Risk|url=https://www.nytimes.com/2008/09/28/business/28melt.html|access-date=September 29, 2008|newspaper=The New York Times|date=September 29, 2008|archive-date=August 15, 2021|archive-url=https://web.archive.org/web/20210815053023/https://www.nytimes.com/2008/09/28/business/28melt.html|url-status=live}}Ng, Serena, and Mollenkamp, Carrick "[https://www.wsj.com/articles/SB10001424052748704201404574590453176996032 Goldman Fueled AIG's Gambles] {{Webarchive|url=https://web.archive.org/web/20170825141634/https://www.wsj.com/articles/SB10001424052748704201404574590453176996032 |date=August 25, 2017 }}", The Wall Street Journal, December 12, 2009 AIG's Financial Products division, headed by Joseph Cassano in London, had entered into credit default swaps to insure $441 billion worth of securities originally rated AAA. Of those securities, $57.8 billion were structured debt securities backed by subprime loans.{{cite news|last=Pittman|first=Mark|title=Goldman, Merrill Collect Billions After Fed's AIG Bailout Loans|url=https://www.bloomberg.com/apps/news?pid=newsarchive&sid=aTzTYtlNHSG8|access-date=October 12, 2008|newspaper=Bloomberg News|date=September 29, 2008|archive-date=February 25, 2012|archive-url=https://web.archive.org/web/20120225125314/http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aTzTYtlNHSG8|url-status=live}} As a result, AIG's credit rating was downgraded and it was required to post additional collateral with its trading counter-parties, leading to a liquidity crisis that began on September 16, 2008, and essentially bankrupted all of AIG. The New York United States Federal Reserve Bank (led by Timothy Geithner who would later become Treasury secretary) stepped in, announcing creation of a secured credit facility, initially of up to $85 billion to prevent the company's collapse, enabling AIG to deliver additional collateral to its credit default swap trading partners. The credit facility was secured by the stock in AIG-owned subsidiaries in the form of warrants for a 79.9% equity stake in the company and the right to suspend dividends to previously issued common and preferred stock.{{cite news|last=Andrews|first=Edmund L|title=Fed's $85 billion Loan Rescues Insurer|url=https://www.nytimes.com/2008/09/17/business/17insure.html|access-date=September 28, 2008|newspaper=The New York Times|date=September 16, 2008|archive-date=April 30, 2011|archive-url=https://web.archive.org/web/20110430061807/http://www.nytimes.com/2008/09/17/business/17insure.html|url-status=live}}{{cite news |title=Federal Reserve Board, with full support of the Treasury Department, authorizes the Federal Reserve Bank of New York to lend up to $85 billion to the American International Group (AIG) |url=http://www.federalreserve.gov/newsevents/press/other/20080916a.htm |access-date=September 16, 2008 |newspaper=United States Federal Reserve Board of Governors |archive-date=September 25, 2008 |archive-url=https://web.archive.org/web/20080925104637/http://www.federalreserve.gov/newsevents/press/other/20080916a.htm |url-status=live }} The AIG board accepted the terms of the Federal Reserve rescue package that same day, making it the largest government bailout of a private company in U.S. history.{{cite web | last =Schmidt | first =Krista | title =History of U.S. Gov't Bailouts | publisher =Pro Publica | date =April 15, 2009 | url =https://www.propublica.org/special/government-bailouts | access-date =December 28, 2014 | archive-url =https://web.archive.org/web/20141227155510/http://www.propublica.org/special/government-bailouts | archive-date =December 27, 2014 | url-status =dead | df =mdy-all }}{{cite book |last1=Stein |first1=Jerome |chapter-url=https://books.google.com/books?id=9FJYvim-52QC&q=largest%20bailouts%20in%20us%20history%20aig&pg=PA99 |title=Stochastic Optimal Control and the U.S. Financial Debt Crisis |chapter=AIG in the Crisis |publisher=Springer Science & Business Media |year=2012 |page=99 |isbn=9781461430797 |access-date=December 29, 2014 |quote=The AIG liquidity crisis led to the largest government bailout of a private company in US history, totaling $182 billion. |archive-date=July 16, 2023 |archive-url=https://web.archive.org/web/20230716083614/https://books.google.com/books?id=9FJYvim-52QC&q=largest%20bailouts%20in%20us%20history%20aig&pg=PA99 |url-status=live }}

In March 2009, AIG compounded public cynicism concerning the "too big to fail" firm's bailout by announcing that it would pay its executives over $165 million in executive bonuses.{{cite news |url=https://www.latimes.com/archives/la-xpm-2009-mar-22-na-aig-more-bonuses22-story.html |title=AIG bonuses total more than the reported $165 million |first=David G. |last=Savage |work=Los Angeles Times |date=March 22, 2009 |access-date=June 19, 2020 |archive-date=June 22, 2020 |archive-url=https://web.archive.org/web/20200622033724/https://www.latimes.com/archives/la-xpm-2009-mar-22-na-aig-more-bonuses22-story.html |url-status=live }} Total bonuses for the financial unit could reach $450 million, and bonuses for the entire company could reach $1.2 billion. Newly inaugurated President Barack Obama, who had voted for TARP as a Senator{{cite news|title=U.S. Senate vote on Emergency Economic Stabilization Act of 2008|url=https://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00213|access-date=July 11, 2011|newspaper=Senate.gov|date=June 29, 2011|archive-date=May 29, 2020|archive-url=https://web.archive.org/web/20200529050212/https://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=110&session=2&vote=00213|url-status=live}} responded to the planned payments by saying "[I]t's hard to understand how derivative traders at AIG warranted any bonuses, much less $165 million in extra pay. How do they justify this outrage to the taxpayers who are keeping the company afloat?"{{cite news|url=http://www.cnn.com/2009/POLITICS/03/16/AIG.bonuses/|title=Obama tries to stop AIG bonuses: 'How do they justify this outrage?' - CNN.com|website=CNN|language=en|access-date=April 17, 2017|archive-date=June 23, 2017|archive-url=https://web.archive.org/web/20170623085156/http://www.cnn.com/2009/POLITICS/03/16/AIG.bonuses/|url-status=live}} Both Democratic and Republican politicians reacted with similar outrage to the planned bonuses, as did political commentators and journalists in the AIG bonus payments controversy.

AIG began selling some assets to pay off its government loans in September 2008 despite a global decline in the valuation of insurance businesses, and the weakening financial condition of potential bidders.{{cite news|url=http://uk.reuters.com/article/americasDealsNews/idUKTRE51N6DW20090224 |title=AIG may rethink asset sales in tough markets |publisher=Reuters UK |access-date=March 2, 2009 |last=Bansal |first=Paritosh |date=February 24, 2009 |archive-url=https://web.archive.org/web/20090228114450/http://uk.reuters.com/article/americasDealsNews/idUKTRE51N6DW20090224 |archive-date=February 28, 2009 |url-status=dead }} In December 2009, AIG formed international life insurance subsidiaries, American International Assurance Company, Limited (AIA) and American Life Insurance Company (ALICO), which were transferred to the Federal Reserve Bank of New York, to reduce its debt by $25 billion.{{Cite web |url=http://ir.aigcorporate.com/phoenix.zhtml?c=76115&p=irol-newsArticle&ID=1360144&highlight= |title=AIG closes two transactions that reduce debt that IAG owes Federal Reserve Bank of New York by $25 billion |access-date=February 17, 2018 |archive-date=April 15, 2016 |archive-url=https://web.archive.org/web/20160415134312/http://ir.aigcorporate.com/phoenix.zhtml?c=76115&p=irol-newsArticle&ID=1360144&highlight= |url-status=dead }} AIG sold its Hartford Steam Boiler unit on March 31, 2009, to Munich Re for $742 million.{{cite web |author=Essen |first=Yvette |date=December 22, 2008 |title=Munich Re buys AIG's Hartford Steam Boiler for $742m |url=https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/3901571/Munich-Re-buys-AIGs-Hartford-Steam-Boiler-for-742m.html |url-access=subscription |url-status=live |archive-url=https://ghostarchive.org/archive/20220112/https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/3901571/Munich-Re-buys-AIGs-Hartford-Steam-Boiler-for-742m.html |archive-date=January 12, 2022 |work=The Daily Telegraph}}{{cbignore}}{{cite web|url=http://www.hsb.com/cmsfiles/Munich_Re_Press_Rls_HSB_Close41200933752.pdf |title=Munich Re concludes purchase of Hartford Steam Boiler |access-date=May 13, 2017 |url-status=dead |archive-url=https://web.archive.org/web/20111004175417/http://www.hsb.com/cmsfiles/Munich_Re_Press_Rls_HSB_Close41200933752.pdf |archive-date=October 4, 2011 }} On April 16, 2009, AIG announced plans to sell its 21st Century Insurance subsidiary to Farmers Insurance Group for $1.9 billion.{{cite news|last=Lifsher|first=Marc|title=AIG selling 21st Century Insurance to Farmers Insurance|url=https://www.latimes.com/archives/la-xpm-2009-apr-17-fi-aig-21st-century17-story.html|access-date=February 6, 2013|newspaper=Los Angeles Times|date=April 17, 2009|archive-date=April 7, 2013|archive-url=https://web.archive.org/web/20130407201826/http://articles.latimes.com/2009/apr/17/business/fi-aig-21st-century17|url-status=live}} In June 2009 AIG sold its majority ownership of reinsurer Transatlantic Re.{{cite web|url=http://www.postonline.co.uk/post/news/1271261/aig-confirms-sale-transatlantic-re-shares|title=AIG confirms sale of Transatlantic Re shares|work=postonline.co.uk|date=June 2009|access-date=July 13, 2012|archive-date=March 14, 2013|archive-url=https://web.archive.org/web/20130314031233/http://www.postonline.co.uk/post/news/1271261/aig-confirms-sale-transatlantic-re-shares|url-status=live}} The Wall Street Journal reported on September 7, 2009, that Pacific Century Group had agreed to pay $500 million for a part of AIG's asset management business, and that they also expected to pay an additional $200 million to AIG in carried interest and other payments linked to future performance of the business.{{cite news |last=Carew |first=Rick |url=https://www.wsj.com/articles/SB125226030606889371 |title=Li Is Back In Game With AIG Purchase |work=The Wall Street Journal |date=September 7, 2009 |access-date=July 11, 2011 |archive-date=May 1, 2015 |archive-url=https://web.archive.org/web/20150501235058/http://www.wsj.com/articles/SB125226030606889371 |url-status=live }}

AIG then sold its American Life Insurance Co. (ALICO) to MetLife Inc. for $15.5 billion in cash and MetLife stock in March 2010.{{cite news|last=Ellis|first=Blake|title=AIG in $15.5 billion unit sale to MetLife|url=https://money.cnn.com/2010/03/08/news/companies/AIG_sells_Alico_MetLife/|access-date=February 6, 2013|newspaper=CNNMoney|date=March 8, 2010|archive-date=December 16, 2013|archive-url=https://web.archive.org/web/20131216190828/http://money.cnn.com/2010/03/08/news/companies/AIG_sells_Alico_MetLife/|url-status=live}} Bloomberg L.P. reported on March 29, 2010, that after almost three months of delays, AIG had completed the $500 million sale of a portion of its asset management business, branded PineBridge Investments, to the Asia-based Pacific Century Group.{{cite news |last=Son |first=Hugh |url=https://www.bloomberg.com/apps/news?pid=20601203&sid=ahXYCmtEBAJc |title=AIG Completes Sale of PineBridge Investments to Pacific Century |publisher=Bloomberg News |date=March 29, 2010 |access-date=July 11, 2011 |archive-date=July 16, 2023 |archive-url=https://web.archive.org/web/20230716083616/https://www.bloomberg.com/politics?pid=20601203&sid=ahXYCmtEBAJc |url-status=live }} Fortress Investment Group purchased 80% of the interest in financing company American General Finance in August 2010.{{cite web |url=http://www.courierpress.com/news/2010/aug/11/80-percent-american-general-finance-sold-aig/ |title=Update: American General Finance sold to Fortress Investment Group " Evansville Courier & Press |publisher=Courierpress.com |access-date=December 16, 2013 |archive-date=March 3, 2014 |archive-url=https://web.archive.org/web/20140303222456/http://www.courierpress.com/news/2010/aug/11/80-percent-american-general-finance-sold-aig/ |url-status=live }} In September 2010 AIG sold AIG Starr and AIG Edison, two of its Japan-based companies, to Prudential Financial for $4.2 billion in cash and $600 million in assumption of third party AIG debt by Prudential.{{cite web|url=http://www.marketwatch.com/story/aig-sells-star-edison-units-to-prudential-2010-09-30|title=AIG to sell Star, Edison to Prudential|publisher=MarketWatch|access-date=July 11, 2011|archive-date=October 3, 2010|archive-url=https://web.archive.org/web/20101003134230/http://www.marketwatch.com/story/aig-sells-star-edison-units-to-prudential-2010-09-30|url-status=live}} On November 1, 2010, AIG raised $36.71 billion from both the sale of ALICO and its IPO of AIA. Proceeds went to repay some of the aid it received from the government during the 2008 financial crisis.{{cite news|last=Bernard|first=Stephen|title=AIG set to repay $37 billion in bailout money|url=http://www.washingtontimes.com/news/2010/nov/1/aig-set-repay-37-billion-bailout-money/|access-date=February 6, 2013|newspaper=The Washington Times|date=November 1, 2010|archive-date=December 24, 2013|archive-url=https://web.archive.org/web/20131224094325/http://www.washingtontimes.com/news/2010/nov/1/aig-set-repay-37-billion-bailout-money/|url-status=live}}

AIG sold its Taiwanese life insurance company Nan Shan Life to a consortium of buyers for $2.16 billion in January 2011.{{cite news|last=Wassener|first=Bettina|title=A.I.G. to Sell Taiwan Unit for $2.16 Billion|url=https://dealbook.nytimes.com/2011/01/12/a-i-g-to-sell-nan-shan-to-taiwan-group/|access-date=February 6, 2013|newspaper=The New York Times|date=January 12, 2011|archive-date=September 1, 2012|archive-url=https://web.archive.org/web/20120901112311/http://dealbook.nytimes.com/2011/01/12/a-i-g-to-sell-nan-shan-to-taiwan-group/|url-status=live}} Due to the Q3 2011 net loss widening, on November 3, 2011, AIG shares plunged 49 percent year to date. The insurer's board approved a share buyback of as much as $1 billion.{{cite web |url=http://www.businessweek.com/news/2011-11-04/aig-posts-loss-on-writedowns-tied-to-aia-mortgage-declines.html |archive-url=https://web.archive.org/web/20111104222834/http://www.businessweek.com/news/2011-11-04/aig-posts-loss-on-writedowns-tied-to-aia-mortgage-declines.html |url-status=dead |archive-date=November 4, 2011 |title=AIG Posts Loss on Writedowns Tied to AIA, Mortgage Declines |date=November 4, 2011}}

Nine years after the initial bailout, in 2017, the U.S. Financial Stability Oversight Council removed AIG from its list of too-big-to-fail institutions.{{cite web|url=https://www.investopedia.com/articles/economics/09/american-investment-group-aig-bailout.asp|title=Falling Giant: A Case Study of AIG|access-date=November 18, 2017|archive-date=November 14, 2017|archive-url=https://web.archive.org/web/20171114114121/https://www.investopedia.com/articles/economics/09/american-investment-group-aig-bailout.asp|url-status=live}}

The United States Department of the Treasury announced an offering of 188.5 million shares of AIG for a total of $5.8 billion on May 7, 2012. The sale reduced Treasury's stake in AIG to 61 percent, from 70 percent before the transaction.{{cite news|last=Buhayar|first=Noah|title=U.S. Treasury Sells $5.8 Billion of AIG Stock|url=https://www.bloomberg.com/news/2012-05-07/u-s-treasury-sells-5-billion-of-aig-stock.html|access-date=February 6, 2013|newspaper=Bloomberg L.P.|date=May 7, 2012|archive-date=May 20, 2013|archive-url=https://web.archive.org/web/20130520160422/http://www.bloomberg.com/news/2012-05-07/u-s-treasury-sells-5-billion-of-aig-stock.html|url-status=live}} Four months later, on September 6, 2012, AIG sold $2 billion of its investment in AIA to repay government loans. The board also approved a $5 billion stock repurchase of government-owned shares in AIA.{{cite news|title=AIG to sell $2 billion in AIA shares, repay US government|url=http://www.nypost.com/p/news/business/aig_to_sell_billion_in_aia_shares_845luJvZD0xSexN1lfALyN|access-date=February 6, 2013|newspaper=New York Post|date=September 6, 2012|archive-date=October 15, 2012|archive-url=https://web.archive.org/web/20121015210654/http://www.nypost.com/p/news/business/aig_to_sell_billion_in_aia_shares_845luJvZD0xSexN1lfALyN|url-status=live}} The next week, on September 14, 2012, the Department of Treasury completed its fifth sale of AIG common stock, with proceeds of approximately $20.7 billion, reducing the Treasury's ownership stake in AIG to approximately 15.9 percent from 53 percent. Government commitments were fully recovered, and Treasury and the FRBNY to date had received a combined positive return of approximately $15.1 billion.{{cite news|last=Tara LaCapra|first=Lauren|title=Treasury sells big chunk of AIG stock at a profit|url=https://www.reuters.com/article/us-aig-treasury-idUSBRE88A00F20120911|access-date=February 6, 2013|newspaper=Reuters|date=September 11, 2012|archive-date=October 16, 2012|archive-url=https://web.archive.org/web/20121016014249/http://www.reuters.com/article/2012/09/11/us-aig-treasury-idUSBRE88A00F20120911|url-status=live}}

On October 12, 2012, AIG announced a five and a half year agreement to sponsor six New Zealand–based rugby teams, including the world champion All Blacks. The AIG logo and the Adidas logo, the league's primary sponsor, were displayed on the league's team jerseys.{{cite news|last=Baynes|first=Dan|title=AIG Sponsors Jersey of Rugby World Champion All Blacks Team|url=https://www.bloomberg.com/news/2012-10-12/aig-becomes-jersey-sponsor-of-rugby-world-champion-all-blacks.html|access-date=February 27, 2014|newspaper=Bloomberg L.P.|date=October 12, 2012|archive-date=March 4, 2014|archive-url=https://web.archive.org/web/20140304120401/http://www.bloomberg.com/news/2012-10-12/aig-becomes-jersey-sponsor-of-rugby-world-champion-all-blacks.html|url-status=live}}

The U.S. Department of the Treasury in December 2012 published an itemized list of the loans, stock purchases, special purpose vehicles (SPVs) and other investments engaged in with AIG, the amount AIG paid back and the positive return on the loans and investments to the government.{{cite web |url=http://www.treasury.gov/initiatives/financial-stability/TARP-Programs/aig/Pages/status.aspx |title=Investment in AIG |publisher=US Department of Treasury |access-date=February 5, 2013 |archive-date=March 3, 2013 |archive-url=https://web.archive.org/web/20130303072623/http://www.treasury.gov/initiatives/financial-stability/TARP-Programs/aig/Pages/status.aspx |url-status=live }} The Treasury said that it and the Federal Reserve Bank of New York provided a total $182.3 billion to AIG, which paid back a total $205 billion, for a total positive return, or profit, to the government of $22.7 billion. In addition, AIG sold off a number of its own assets to raise money to pay back the government. On December 14, 2012, the Treasury Department sold the last of its AIG stock in its sixth stock sale for a total of approximately $7.6 billion. In total, the Treasury Department realized a gain of more than $22 billion from the sale of AIG common stock and $0.9 billion from the sale of AIG preferred stock. The same month, Robert Benmosche announced that he would be stepping down from his position as president and CEO due to his advancing lung cancer.{{cite news|title=AIG Chief Is Being Treated for Cancer|url=https://www.wsj.com/articles/SB10001424052702303467004575574703836744636|access-date=March 20, 2018|newspaper=The Wall Street Journal|date=October 26, 2010|archive-date=March 28, 2018|archive-url=https://web.archive.org/web/20180328095059/https://www.wsj.com/articles/SB10001424052702303467004575574703836744636|url-status=live}}{{cite news|url=http://www.businessweek.com/articles/2012-12-13/charlie-rose-talks-to-aig-chief-robert-benmosche|archive-url=https://web.archive.org/web/20121216173802/http://www.businessweek.com/articles/2012-12-13/charlie-rose-talks-to-aig-chief-robert-benmosche|url-status=dead|archive-date=December 16, 2012|title=Charlie Rose Talks to AIG Chief Robert Benmosche|newspaper=Bloomberg News|date=December 14, 2012|publisher=Bloomberg L.P.|access-date=March 20, 2018}}

AIG began an advertising campaign on January 1, 2013, called "Thank You America," in which several company employees, including AIG President and CEO Robert Benmosche, talked directly to the camera and offered their thanks for the government assistance.{{cite news|last=Irwin|first=Neil|title=AIG to America: Thanks, guys!|url=https://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/31/aig-to-america-thanks-guys/|access-date=June 4, 2013|newspaper=The Washington Post|date=December 31, 2012|archive-date=February 26, 2013|archive-url=https://web.archive.org/web/20130226193741/http://www.washingtonpost.com/blogs/wonkblog/wp/2012/12/31/aig-to-america-thanks-guys/|url-status=live}} Peter Hancock succeeded Benmosche as president and CEO of AIG in September 2014.{{cite news|last1=Russolillo|first1=Steven|title=Meet Peter Hancock, AIG's New CEO|url=https://blogs.wsj.com/moneybeat/2014/06/10/meet-peter-hancock-aigs-new-ceo/|access-date=March 20, 2018|work=The Wall Street Journal|date=June 10, 2014|archive-date=April 4, 2018|archive-url=https://web.archive.org/web/20180404073750/https://blogs.wsj.com/moneybeat/2014/06/10/meet-peter-hancock-aigs-new-ceo/|url-status=live}} While Benmosche stayed on in an advisory role, he died in February the following year.{{cite news|last1=Kandell|first1=Jonathan|title=Robert Benmosche, Rescuer of A.I.G. After Bailout, Dies at 70|url=https://www.nytimes.com/2015/02/28/business/dealbook/robert-benmosche-ex-metlife-chief-who-rescued-aig-dies-at-70.html|access-date=March 20, 2018|work=The New York Times|date=February 27, 2015|archive-date=May 27, 2018|archive-url=https://web.archive.org/web/20180527202542/https://www.nytimes.com/2015/02/28/business/dealbook/robert-benmosche-ex-metlife-chief-who-rescued-aig-dies-at-70.html|url-status=live}}

In June 2015, Taiwan's Nan Shan Life Insurance acquired a stake in AIG's subsidiary in Taiwan for a fee of $158 million.{{cite web |author=Emily Chan |url=https://www.reuters.com/article/taiwan-insurance-idUSL3N0YX36720150611 |title=Nan Shan Life to buy part of AIG's Taiwan unit for $158 mln |publisher=Reuters |date=June 11, 2015 |access-date=June 11, 2015 |archive-date=March 11, 2016 |archive-url=https://web.archive.org/web/20160311083151/http://www.reuters.com/article/taiwan-insurance-idUSL3N0YX36720150611 |url-status=live }} Later that year, activist investor Carl Icahn called for a breakup of AIG, describing the company as "too big to succeed".{{cite news|last1=Nasr|first1=Reem|title=Carl Icahn turns up the pressure on AIG|url=https://www.cnbc.com/2015/11/23/carl-icahn-letter-aig-should-be-broken-up-it-is-too-big-to-succeed.html|access-date=March 20, 2018|work=CNBC|date=November 23, 2015|archive-date=April 4, 2018|archive-url=https://web.archive.org/web/20180404073213/https://www.cnbc.com/2015/11/23/carl-icahn-letter-aig-should-be-broken-up-it-is-too-big-to-succeed.html|url-status=live}} AIG announced plans for an initial public offering of 19.9 percent of United Guaranty Corp., a Greensboro, North Carolina–based provider of mortgage insurance for lenders in January 2016.{{cite news|url=http://www.greensboro.com/business/local_business/corporate-giant-aig-to-begin-spinoff-of-greensboro-s-united/article_bda0eb0e-13cd-5d25-8b75-c6ad20e92c33.html|title=Corporate giant AIG to begin spinoff of Greensboro's United Guaranty|work=News & Record|date=January 26, 2016|access-date=February 24, 2016|archive-date=January 23, 2020|archive-url=https://web.archive.org/web/20200123192214/https://www.greensboro.com/business/local_business/corporate-giant-aig-to-begin-spinoff-of-greensboro-s-united/article_bda0eb0e-13cd-5d25-8b75-c6ad20e92c33.html|url-status=live}} Later that year, Icahn won a seat on the board of directors and continued to pressure the company to split up its major divisions.{{cite news|last1=Basak|first1=Sonali|title=How AIG CEO Hancock Ended Up on Way Out|url=https://www.insurancejournal.com/news/national/2017/03/10/444115.htm|access-date=March 20, 2018|work=Insurance Journal|date=March 10, 2017|archive-date=April 4, 2018|archive-url=https://web.archive.org/web/20180404073239/https://www.insurancejournal.com/news/national/2017/03/10/444115.htm|url-status=live}} AIG also began a joint venture with Hamilton Insurance Group and Two Sigma Investments to serve the insurance needs of small- to medium-sized enterprises. Industry veteran Brian Duperreault became the chairman of the new entity, and Richard Friesenhahn, the executive vice president of U.S. casualty lines at AIG, became CEO.{{cite news|last1=Basak|first1=Sonali|title=AIG to Join Two Sigma, Duperreault in Technology Venture|url=https://www.bloomberg.com/news/articles/2016-04-26/aig-to-join-with-two-sigma-in-tech-driven-insurance-venture|access-date=May 7, 2016|work=Bloomberg L.P.|date=April 26, 2016|archive-date=April 30, 2016|archive-url=https://web.archive.org/web/20160430073122/http://www.bloomberg.com/news/articles/2016-04-26/aig-to-join-with-two-sigma-in-tech-driven-insurance-venture|url-status=live}} In August 2016, AIG sold off United Guaranty, its mortgage-guarantee unit, to Arch Capital Group, a Bermuda-based insurer, for $3.4 billion.{{Cite news|url=https://www.wsj.com/articles/aig-nears-deal-to-sell-mortgage-insurance-unit-to-arch-capital-for-about-3-4-billion-1471280311|title=AIG Reaches Deal to Sell Mortgage-Insurance Unit to Arch Capital for About $3.4 Billion|last1=Scism|first1=Leslie|date=August 16, 2016|last2=Lublin|first2=Joann S.|newspaper=The Wall Street Journal|issn=0099-9660|access-date=August 18, 2016|archive-date=August 17, 2016|archive-url=https://web.archive.org/web/20160817212241/http://www.wsj.com/articles/aig-nears-deal-to-sell-mortgage-insurance-unit-to-arch-capital-for-about-3-4-billion-1471280311|url-status=live}}

Brian Duperreault was appointed CEO of AIG on May 15, 2017. Duperreault, who previously worked at AIG from 1973 until 1994,{{Cite news|url = https://www.nytimes.com/2017/05/15/business/dealbook/aig-brian-duperreault-ceo.html|title = 'I Am Here to Grow A.I.G.,' its New C.E.O., Brian Duperreault, Pledges|newspaper =The New York Times|date = May 15, 2017|last1 = Bray|first1 = Chad|access-date = August 27, 2020|archive-date = November 12, 2020|archive-url = https://web.archive.org/web/20201112033418/https://www.nytimes.com/2017/05/15/business/dealbook/aig-brian-duperreault-ceo.html|url-status = live}} was hired as CEO from Hamilton Insurance Group{{Cite news|url = https://www.wsj.com/articles/aig-names-brian-duperreault-as-ceo-1494847979|title = New AIG CEO Brian Duperreault Says He Won't Break up the Company|newspaper =The Wall Street Journal|date = May 15, 2017|access-date = August 27, 2020|archive-date = August 18, 2020|archive-url = https://web.archive.org/web/20200818231637/https://www.wsj.com/articles/aig-names-brian-duperreault-as-ceo-1494847979|url-status = live}} following Hancock's announcement in March 2017 that he would step down as AIG CEO under pressure after a period of disappointing financial results.{{Cite news|url = https://www.nytimes.com/2017/03/09/business/dealbook/aigs-chief-executive-to-resign-after-turnaround-setback.html|title = A.I.G.'s Chief Executive to Resign After Turnaround Setback|newspaper =The New York Times|date = March 9, 2017|last1 = Bray|first1 = Chad|access-date = August 27, 2020|archive-date = April 14, 2021|archive-url = https://web.archive.org/web/20210414141039/https://www.nytimes.com/2017/03/09/business/dealbook/aigs-chief-executive-to-resign-after-turnaround-setback.html|url-status = live}} Due to previous calls in 2015 and 2016 to shrink or break up AIG, Duperreault announced his intention to grow AIG and maintain its multiline structure as a provider of life and retirement solutions and non-life insurance,{{cite web|url=https://annual.aig.com/2017/president-and-ceo-letter|title=President and CEO Letter|access-date=August 27, 2020|archive-date=March 17, 2022|archive-url=https://web.archive.org/web/20220317060518/https://annual.aig.com/2017/president-and-ceo-letter|url-status=dead}} outlining a strategy to focus on technology, "underwriting discipline," and diversification.{{cite web|url=https://www.carriermanagement.com/news/2017/05/15/167182.htm|title=New AIG CEO Brian Duperreault: 'I Didn't Come Here to Break the Company Up'|access-date=August 27, 2020|archive-date=November 18, 2020|archive-url=https://web.archive.org/web/20201118025713/https://www.carriermanagement.com/news/2017/05/15/167182.htm|url-status=live}}

2017{{Cite web |url=https://www.reuters.com/article/us-aig-restructure/aig-to-restructure-into-three-new-units-marking-ceos-first-big-move-idUSKCN1C01ER |title=AIG to restructure into three new units, marking CEO's first big move |work=Reuters |access-date=January 30, 2018 |archive-date=September 25, 2017 |archive-url=https://web.archive.org/web/20170925171008/http://www.reuters.com/article/us-aig-restructure/aig-to-restructure-into-three-new-units-marking-ceos-first-big-move-idUSKCN1C01ER |url-status=live }} through early 2019{{cite news | url=https://www.insurancejournal.com/news/national/2019/07/22/533498.htm | title=AIG Names Ling Chief Human Resources Officer | newspaper=Insurance Journal | date=July 22, 2019 | last1=Simpson | first1=Andrew G. | access-date=August 27, 2020 | archive-date=September 19, 2020 | archive-url=https://web.archive.org/web/20200919194918/https://www.insurancejournal.com/news/national/2019/07/22/533498.htm | url-status=live }} saw AIG hire a number of new upper level executives.{{Cite web |url=https://www.reuters.com/article/us-financial-crisis2008-aig/after-its-near-death-aig-ceo-plots-revival-by-returning-to-basics-idUSKCN1LQ15Y |title=After its near-death, AIG CEO plots revival by returning to basics |work=Reuters |access-date=August 27, 2020 |archive-date=November 9, 2020 |archive-url=https://web.archive.org/web/20201109040710/https://www.reuters.com/article/us-financial-crisis2008-aig/after-its-near-death-aig-ceo-plots-revival-by-returning-to-basics-idUSKCN1LQ15Y |url-status=live }} In 2017, Duperreault named Peter Zaffino as AIG COO,{{cite web|url=https://www.carriermanagement.com/news/2018/04/01/177288.htm|title=AIG CEO Duperreault Has Hired or Promoted at Least 13 Senior Execs in First Year|access-date=August 27, 2020|archive-date=January 18, 2021|archive-url=https://web.archive.org/web/20210118161058/https://www.carriermanagement.com/news/2018/04/01/177288.htm|url-status=live}} later also naming him CEO of AIG's General Insurance business.{{Cite news|url = https://www.wsj.com/articles/aig-promotes-senior-executive-zaffino-to-additional-title-as-president-11576671385?cx_testId=3&cx_testVariant=cx_2&cx_artPos=0#cxrecs_s|title = AIG Promotes Senior Executive Zaffino to Additional Title as President|newspaper =The Wall Street Journal|date = December 18, 2019|last1 = Scism|first1 = Leslie|access-date = August 27, 2020|archive-date = April 14, 2021|archive-url = https://web.archive.org/web/20210414101735/https://www.wsj.com/articles/aig-promotes-senior-executive-zaffino-to-additional-title-as-president-11576671385?cx_testId=3&cx_testVariant=cx_2&cx_artPos=0#cxrecs_s|url-status = live}} Zaffino succeeded Duperreault as president of AIG in January 2020, with Duperreault remaining AIG's CEO.{{Cite web |url=https://www.reuters.com/article/us-aig-president/aig-names-coo-peter-zaffino-as-president-idUSKBN1YM1DW |title=AIG names COO Peter Zaffino as president |work=Reuters |access-date=August 27, 2020 |archive-date=August 1, 2020 |archive-url=https://web.archive.org/web/20200801131328/https://www.reuters.com/article/us-aig-president/aig-names-coo-peter-zaffino-as-president-idUSKBN1YM1DW |url-status=live }} The company announced plans in 2017 to reorganize its Commercial and Consumer segments into General Insurance and Life & Retirement, respectively.{{cite web |url=https://www.sec.gov/Archives/edgar/data/5272/000119312518016778/d512375d8k.htm |title=Form 8-K |publisher=Sec.gov |date= |accessdate=2022-03-16 |archive-date=April 14, 2021 |archive-url=https://web.archive.org/web/20210414074142/https://www.sec.gov/Archives/edgar/data/5272/000119312518016778/d512375d8k.htm |url-status=live }} In September 2017, the Financial Stability Oversight Council{{Cite news|url = https://www.bloomberg.com/news/articles/2017-09-29/aig-sheds-too-big-to-fail-label-in-victory-for-ceo-carl-icahn|title = AIG Sheds Too-Big-to-Fail Label in Victory for CEO, Icahn|newspaper =Bloomberg News|date = September 29, 2017|access-date = August 27, 2020|archive-date = April 14, 2021|archive-url = https://web.archive.org/web/20210414074942/https://www.bloomberg.com/news/articles/2017-09-29/aig-sheds-too-big-to-fail-label-in-victory-for-ceo-carl-icahn|url-status = live}} determined that AIG was no longer considered a nonbank systemically important financial institution (SIFI). Duperreault commented in response that the development reflected "the progress made since 2008 to de-risk the company."

AIG made a number of acquisitions in 2018.{{cite web|url=https://annual.aig.com/2018/president-and-ceo-letter|title=AIG's 2018 Annual Report: CEO Letter to Shareholders|access-date=August 27, 2020|archive-date=April 14, 2021|archive-url=https://web.archive.org/web/20210414100622/https://annual.aig.com/2018/president-and-ceo-letter|url-status=dead}}{{cite web|url=https://www.aig.com/content/dam/aig/america-canada/us/documents/investor-relations/2019/aig-2018-annual-report.pdf |title=AIG 100 2018 Annual Report |archive-url=https://web.archive.org/web/20220221161124/https://www.aig.com/content/dam/aig/america-canada/us/documents/investor-relations/2019/aig-2018-annual-report.pdf |archive-date=February 21, 2022 |page=7 }} That July, AIG acquired Validus Holdings Ltd., a provider of reinsurance based in Bermuda. The company was also a Lloyd's of London syndicate, involved in insurance-linked securities,{{Cite news|url=https://www.ft.com/content/3b9f9384-634c-11e8-a39d-4df188287fff |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/3b9f9384-634c-11e8-a39d-4df188287fff |archive-date=December 10, 2022 |url-access=subscription|title=AIG: The long struggle to repair its reputation|newspaper=Financial Times|date=June 17, 2018|last1=Ralph|first1=Oliver|last2=Gray|first2=Alistair}} a specialist in US small commercial excess and surplus underwriting, and a provider of crop insurance.{{Cite news|url = https://www.bloomberg.com/news/articles/2018-01-22/aig-to-buy-bermuda-reinsurer-validus-for-5-56-billion-in-cash|title = AIG's Validus Deal Signals CEO Reversing Course on Retrenchment|newspaper =Bloomberg News|date = January 22, 2018|access-date = August 27, 2020|archive-date = April 14, 2021|archive-url = https://web.archive.org/web/20210414080450/https://www.bloomberg.com/news/articles/2018-01-22/aig-to-buy-bermuda-reinsurer-validus-for-5-56-billion-in-cash|url-status = live}}{{cite news|url=https://www.carriermanagement.com/news/2018/01/22/174817.htm|title=After Validus, AIG CEO Duperreault Envisions Select, Strategic Acquisitions|newspaper=Carrier Management|access-date=August 27, 2020|archive-date=January 20, 2021|archive-url=https://web.archive.org/web/20210120062122/https://www.carriermanagement.com/news/2018/01/22/174817.htm|url-status=live}} The deal "brought in fresh underwriting talent," particularly in property risk and catastrophe risk. Also in 2018 AIG acquired Ellipse, a UK life insurance business,{{Cite news|url=https://www.ft.com/content/20cade04-7483-11e8-aa31-31da4279a601 |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/20cade04-7483-11e8-aa31-31da4279a601 |archive-date=December 10, 2022 |url-access=subscription|title=AIG scoops up UK life insurance business from Munich Re|newspaper=Financial Times|date=June 20, 2018|last1=Gray|first1=Alistair}} from Munich Re. In 2018, AIG established Fortitude Re to hold most of its run-off portfolios and late in 2018 sold a minority stake to The Carlyle Group.{{cite web|url = https://www.insurancejournal.com/news/national/2018/11/14/507502.htm|title = AIG, Carlyle Complete Deal Creating Run-Off Reinsurer, Fortitude Re|date = November 14, 2018|access-date = August 27, 2020|archive-date = September 24, 2020|archive-url = https://web.archive.org/web/20200924222828/https://www.insurancejournal.com/news/national/2018/11/14/507502.htm|url-status = live}} In November 2019, a Carlyle-managed fund and T&D Holdings acquired a majority interest in Fortitude Re, leaving AIG with a 3.5% stake "subject to required regulatory approvals and other customary closing conditions."{{cite web |title=AIG to Sell Most of Fortitude Re to Carlyle, T&D Holdings for $1.8 Billion |date=November 26, 2019 |url=https://www.insurancejournal.com/news/international/2019/11/26/549587.html |archive-url=https://web.archive.org/web/20230727011000/https://www.insurancejournal.com/news/international/2019/11/26/549587.htm |archive-date=July 27, 2023 |url-status=live}}

Duperreault and Zaffino set out a turnaround strategy for the General Insurance business in 2017 and began execution. In 2019, Duperreault stated that the new executive team had restructured the business, implemented new risk and underwriting guidelines, and "overhauled its reinsurance buying strategy."{{cite web|url=https://www.businessinsurance.com/article/20190214/NEWS06/912326710/Duperreault-still-confident-in-AIG-turnaround-despite-2018-fourth-quarter-loss|title=Duperreault still confident in AIG turnaround despite Q4 loss|access-date=August 27, 2020|archive-date=April 14, 2021|archive-url=https://web.archive.org/web/20210414101505/https://www.businessinsurance.com/article/20190214/NEWS06/912326710/Duperreault-still-confident-in-AIG-turnaround-despite-2018-fourth-quarter-loss|url-status=live}}

In 2019, Duperreault and Zaffino announced "AIG 200", a multi-year program to improve operations by shedding legacy processes and excess manual interventions, modernizing and digitizing workflows, and unifying operations.{{cite web|url = https://www.insurancejournal.com/news/national/2019/08/13/535634.htm|title = AIG CEO Duperreault 'Encouraged' by Hardening Market, Plans Operational Overhaul|date = August 13, 2019|access-date = August 27, 2020|archive-date = August 11, 2020|archive-url = https://web.archive.org/web/20200811014205/https://www.insurancejournal.com/news/national/2019/08/13/535634.htm|url-status = live}} Also during that month, AIG reported its second consecutive quarter of underwriting profits,{{Cite web |url=https://www.reuters.com/article/us-aig-results/aig-profit-beats-on-strong-underwriting-investment-income-idUSKCN1UX2CM |title=AIG profit beats on strong underwriting, investment income |work=Reuters |access-date=August 27, 2020 |archive-date=August 1, 2020 |archive-url=https://web.archive.org/web/20200801131343/https://www.reuters.com/article/us-aig-results/aig-profit-beats-on-strong-underwriting-investment-income-idUSKCN1UX2CM |url-status=live }} and AIG's Life and Retirement business, led by CEO Kevin Hogan, delivered "solid growth" and returns despite a volatile credit and equity market.{{cite web |title=CEO Letter to Shareholders |date=2018 |url=https://annual.aig.com/ui/2018/docs/AIG-2018-CEO-Letter.pdf|archive-url=https://web.archive.org/web/20220412005340/https://annual.aig.com/ui/2018/docs/AIG-2018-CEO-Letter.pdf |archive-date=April 12, 2022 }} In January 2020, AIG announced it was ending its decade-long sponsorship of the All Blacks in 2021.{{cite web|url=https://www.sportspromedia.com/news/all-blacks-lose-aig-sponsorship-2021-new-zealand-rugby|title=All Blacks to lose AIG as sponsor after 2021|date=January 14, 2020|access-date=March 20, 2020|archive-date=March 20, 2020|archive-url=https://web.archive.org/web/20200320205943/https://www.sportspromedia.com/news/all-blacks-lose-aig-sponsorship-2021-new-zealand-rugby|url-status=live}}

On March 1, 2021, Peter Zaffino succeeded Brian Duperreault as AIG's CEO, with Duperreault becoming executive chairman of the board.{{cite web|url = https://www.insurancejournal.com/news/national/2021/02/16/601321.htm|title = Zaffino to Succeed Duperreault as CEO of AIG March 1|date = February 16, 2021|access-date = March 3, 2021|archive-date = February 17, 2021|archive-url = https://web.archive.org/web/20210217090714/https://www.insurancejournal.com/news/national/2021/02/16/601321.htm|url-status = live}} Then, in January 2022, Zaffino also became chairman of the AIG board.{{cite web |title=AIG names CEO Zaffino as chairman |url=https://www.reuters.com/business/aig-names-ceo-zaffino-chairman-2021-09-08/ |website=Reuters |access-date=3 October 2023}}

As part of AIG's 2020 plan to form an independent company of its life and retirement insurance business with a 2022 IPO, the company announced, in July 2021, that Blackstone Group would acquire 9.9% of the new unit for $2.2 billion cash. Blackstone and AIG also entered a long-term asset management agreement for about one quarter of AIG's life and retirement portfolio, set to increase in subsequent years.{{cite news |url=https://www.reuters.com/business/aig-sell-10-stake-life-retirement-business-blackstone-2021-07-14/ |title=AIG to sell life and retirement unit stake to Blackstone, another with IPO |access-date=8 March 2022 |work=Reuters |date=15 July 2021 |archive-date=March 8, 2022 |archive-url=https://web.archive.org/web/20220308201911/https://www.reuters.com/business/aig-sell-10-stake-life-retirement-business-blackstone-2021-07-14/ |url-status=live }} After the spin-off, Corebridge Financial became an independent entity, raising $1.68 billion in the largest U.S. IPO of 2022.{{cite news |author=Echo Wang|url=https://www.reuters.com/business/aig-sell-10-stake-life-retirement-business-blackstone-2021-07-14/ |title=AIG unit Corebridge raises $1.68 bln in year's largest IPO|access-date=2023-10-10 |publisher=Reuters |date=2022-09-14}}{{cite web|url=https://www.statista.com/statistics/251168/largest-ipos-in-the-united-states/|title=Largest initial public offerings (IPOs) in the United States in 2022, by deal size|website=Statista|access-date=8 March 2022}}

In February 2023, AIG and Stone Point Capital entered into an agreement to establish an independent managing general agency and relocate AIG's current private client group to the independent new company, Private Client Select Insurance Services (PCS).{{cite news|url=https://www.insurancejournal.com/news/national/2023/02/14/707776.htm|title=AIG, Stone Point Capital to Form Independent MGA for High Net Worth Business|access-date=2023-10-10|publisher=Insurance Journal}}{{cite news|author=Luke Gallin|url=https://www.reinsurancene.ws/aig-partners-with-stone-point-to-launch-high-net-worth-mga/|title=AIG partners with Stone Point to launch high net worth MGA|access-date=2023-10-10|publisher=Reinsurance News}} That May, AIG agreed to sell subsidiary Crop Risk Services to American Financial Group for $240 million,{{cite news|url=https://www.insurancejournal.com/news/national/2023/05/03/719097.htm|title=American Financial Group to Acquire Crop Risk Services From AIG for $240M|date=2023-05-03|access-date=2023-10-10|publisher=Insurance Journal}} as well as Validus Re, including AlphaCat and the Talbot Treaty reinsurance business, to RenaissanceRe for $2.985 billion, in cash and RenaissanceRe common shares.{{cite news|url=https://www.reuters.com/markets/deals/renaissancere-buy-validus-re-near-3-bln-deal-2023-05-22/|title=Insurer RenaissanceRe to buy AIG unit Validus Re in near $3 bln deal|access-date=2023-10-10 |publisher=Reuters |date=2023-05-22}}

In March 2024, British regulators cleared the sale of the UK arm of AIG Life Ltd to British insurer Aviva for £460 million.{{cite news|url=https://law360.com/articles/1818567/uk-watchdog-clears-aviva-s-460m-takeover-of-aig-life/|title=UK Watchdog Clears Aviva's £460M Takeover Of AIG Life|access-date=2024-04-05 |date=2024-03-28}}

In Australia and China, AIG is identified as a large financial institution and provider of financial services including credit security mechanisms.{{Cite web |title=ADBI Working Paper Series, Prudential Discipline for Financial Firms: Micro, Macro, and Market Structures |url=https://www.adb.org/sites/default/files/publication/156031/adbi-wp176.pdf |website=adb.org}}{{Cite web |title=American International Group, Inc., Resolution Plan, Public Section |url=https://www.fdic.gov/resources/resolutions/resolution-authority/resplans/plans/aig-165-1512.pdf |website=fdic.gov}} In the United States, AIG is the largest underwriter of commercial and industrial insurance.{{cite web|url=http://www.aigag.com/life/life.nsf/contents/aboutus_whyaigag_history|title=History of American General Life Companies|publisher=AIGAG.com|archive-url=https://web.archive.org/web/20110707095336/http://www.aigag.com/life/life.nsf/contents/aboutus_whyaigag_history|archive-date=July 7, 2011 |url-status=live|access-date=July 11, 2011}}

AIG offers property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services.{{cite web|url=http://www.aig.com/Chartis/internet/US/en/2012%20AIG%20Annual%20Report%20(lower)_tcm3171-484181.pdf|title=AIG 2012 Annual Report 10-K|publisher=American International Group|access-date=October 14, 2013|archive-date=July 13, 2013|archive-url=https://web.archive.org/web/20130713063915/http://www.aig.com/Chartis/internet/US/en/2012%20AIG%20Annual%20Report%20%28lower%29_tcm3171-484181.pdf|url-status=dead}} In the third quarter of 2012, the global property-and-casualty insurance business, Chartis, was renamed AIG Property Casualty. SunAmerica, life-insurance and retirement-services division, was renamed AIG Life and Retirement; other existing brands continue to be used in certain geographies and market segments.{{cite news|url=https://www.wsj.com/articles/SB10001424052702304830704577495092980975870|title=AIG Brand Revived|last=Ng|first=Serena|date=June 28, 2012|newspaper=The Wall Street Journal|access-date=October 14, 2013|archive-date=December 18, 2015|archive-url=https://web.archive.org/web/20151218031556/http://www.wsj.com/articles/SB10001424052702304830704577495092980975870|url-status=live}}

AIG was the shirt sponsor of the English football club Manchester United F.C. between 2006 and 2010. AIG was the first American shirt sponsor of the club and AIG shirts were worn for one of the most concentrated periods of success in the club's history, coinciding with Sir Alex Ferguson's third great United team, which won three Premier League titles, as well as the Champions League, in the space of four seasons.{{Cite web |last=Spencer |first=Jamie |date=2021-03-08 |title=Man Utd in talks over new £70m a season shirt sponsor |url=https://www.90min.com/posts/man-utd-in-70m-a-season-talks-over-new-shirt-sponsor |access-date=2023-03-12 |website=90min.com |language=en-GB |archive-date=March 12, 2023 |archive-url=https://web.archive.org/web/20230312212828/https://www.90min.com/posts/man-utd-in-70m-a-season-talks-over-new-shirt-sponsor |url-status=live }}

In 2019, AIG signed a five-year contract to be the title sponsor of Women's British Open, its first deal in golf.[https://sponsorship.sportbusiness.com/news/aig-chooses-womens-british-open-for-first-title-deal-in-golf/?_ga=2.142736053.1891403634.1593905991-1710603840.1593905991 "AIG chooses Women's British Open for first title deal in golf"] {{Webarchive|url=https://web.archive.org/web/20200707013311/https://sponsorship.sportbusiness.com/news/aig-chooses-womens-british-open-for-first-title-deal-in-golf/?_ga=2.142736053.1891403634.1593905991-1710603840.1593905991 |date=July 7, 2020 }} / Nov. 29, 2018 / Sports Business In 2020, the contract was extended to 2025 and the championship was rebranded as the AIG Women's Open,{{cite news|url=https://www.bbc.com/sport/golf/53497474|title=Women's Open drops 'British' from title in sponsorship rebrand|work=BBC Sport|date=22 July 2020|access-date=April 19, 2022|archive-date=April 19, 2022|archive-url=https://web.archive.org/web/20220419162120/https://www.bbc.com/sport/golf/53497474|url-status=live}} with the largest major women's golf prize fund in 2021, totaling $US5.8 million.{{cite web|url=https://www.golfdigest.com/story/aig-womens-british-open-richest-womens-tournament-overall-prize-money-payou|title=AIG Women's Open becomes richest event in women's golf with $1.3 million purse increase|date=18 August 2021}}{{Dead link|date=July 2023 |bot=InternetArchiveBot |fix-attempted=yes }} The AIG Women's Open set a new benchmark in 2022 of $7.3 million for women's major championship golf prize payouts,{{Cite web|title=Women's Open payout: Anna Nordqvist collects $870k|url=https://www.golfchannel.com/news/womens-open-payout-anna-nordqvist-collects-870k|website=golfchannel.com|publisher=Golf Channel|date=22 August 2021|accessdate=16 May 2023|archive-date=May 17, 2023|archive-url=https://web.archive.org/web/20230517013727/https://www.golfchannel.com/news/womens-open-payout-anna-nordqvist-collects-870k|url-status=live}}{{Cite web|title=AIG Women's Open, record for prize money|url=https://www.tennisworldusa.org/other_news/golf/101422/aig-womens-open-record-for-prize-money/|website=www.tennisworldusa.org|publisher=Tennis World|date=23 August 2021|accessdate=16 May 2023|archive-date=May 17, 2023|archive-url=https://web.archive.org/web/20230517013725/https://www.tennisworldusa.org/other_news/golf/101422/aig-womens-open-record-for-prize-money/|url-status=live}} increasing the tournament's purse 125% since 2018.{{Cite web|title=Backed by AIG, Women's Open purse up 26% this year at Muirfield|url=https://www.golfchannel.com/news/backed-aig-womens-open-purse-26-year-muirfield|website=golfchannel.com|publisher=Golf Channel|date=3 August 2022|accessdate=16 May 2023|archive-date=May 17, 2023|archive-url=https://web.archive.org/web/20230517014535/https://www.golfchannel.com/news/backed-aig-womens-open-purse-26-year-muirfield|url-status=live}}

In 2023, AIG announced it will continue as the title sponsor of the event through 2030, along with another increase in the total purse to $9 million.{{cite web |title=AIG Women's Open becomes latest women's major to increase prize money payouts to record levels |url=https://www.golfdigest.com/story/aig-womens-open-increases-prize-money-payout-for-2023-to-9-million-23-percent-jump-from-2022 |website=GolfDigest.com |access-date=3 October 2023}}

{{main|Holdings of American International Group}}

• AIG Europe S.A.{{cite web|url=https://www.aig.com/content/dam/aig/america-canada/us/documents/investor-relations/2019/aig-2018-annual-report.pdf |title=AIG 100 2018 Annual Report |archive-url=https://web.archive.org/web/20220221161124/https://www.aig.com/content/dam/aig/america-canada/us/documents/investor-relations/2019/aig-2018-annual-report.pdf |archive-date=February 21, 2022 |page=142 }}
• American General Life Insurance Company
• American Home Assurance Company
• Lexington Insurance Company
• National Union Fire Insurance Company of Pittsburgh, PA
• The United States Life Insurance Company in the City of New York{{cite web|url=http://www.aig.com/content/dam/aig/america-canada/us/documents/investor-relations/december-31-2016-10k.pdf|title=2016 10-K|website=AIG.com|page=143|access-date=March 3, 2017|archive-date=April 6, 2017|archive-url=https://web.archive.org/web/20170406111920/http://www.aig.com/content/dam/aig/america-canada/us/documents/investor-relations/december-31-2016-10k.pdf|url-status=dead}}
• The Variable Annuity Life Insurance Company (VALIC)
• American International Group UK Ltd.
• AIG General Insurance Co. Ltd.
• Validus Reinsurance, Ltd.

• Starr International Co v U.S. Federal Circuit Court of Appeals

Maurice ("Hank") Greenberg, with lead lawyer David Boies, independently sued the U.S. Government for $40 billion (US) in the United States Court of Federal Claims in 2011.{{cite web|last1=Zeitlin|first1=Matthew|title=John Stewart to Former AIG Chief Hank Greenberg: "Go F*ck Yourself!"|url=https://www.buzzfeed.com/matthewzeitlin/jon-stewart-to-former-aig-chief-hank-greenberg-go-fck-yourse|publisher=Buzzfeed|access-date=February 5, 2016|archive-date=March 27, 2016|archive-url=https://web.archive.org/web/20160327165100/http://www.buzzfeed.com/matthewzeitlin/jon-stewart-to-former-aig-chief-hank-greenberg-go-fck-yourse|url-status=live}}{{Cite web |last=Bronson |first=Caitlin |date=June 17, 2015 |title=Former AIG chief wins $40bn case – but how much will he collect? |url=https://www.insurancebusinessmag.com/us/news/breaking-news/former-aig-chief-wins-40bn-case--but-how-much-will-he-collect-22905.aspx}} In Starr v. United States, the plaintiffs argued that the government denied AIG access to discounted federal loans that would have enabled the company to pay off creditors; instead, AIG was forced to pay a high interest rate and hand the government an 80 percent equity stake in the company.{{Cite web |last=Dayen |first=David |date=September 29, 2014 |title=Don't Laugh Off Hank Greenberg's Ridiculous AIG Lawsuit |url=https://newrepublic.com/article/119611/hank-greenbergs-aig-lawsuit-why-im-kinda-rooting-it |website=The New Republic}} The AIG board had announced on January 9 that the company would not join the lawsuit.{{cite web |url=https://www.cnbc.com/id/100367805 |title=As public fumes, AIG says will not sue US over bailout |publisher=Reuters |access-date=February 6, 2013 |archive-url=https://web.archive.org/web/20130217025557/https://www.cnbc.com/id/100367805 |archive-date=February 17, 2013 |url-status=dead }}

The trial judge was Thomas Wheeler.{{Cite news |last=Thompson |first=Mary |date=November 21, 2014 |title=Testimony to end, but AIG case far from over |url=https://www.cnbc.com/2014/11/20/testimony-to-end-but-aig-case-far-from-over.html |url-status=live |access-date=March 25, 2025 |work=CNBC |pages=1}} In his opening, David Boies called the United States' demand for a 79.9% equity stake a "grab" at "an extortion rate."{{Cite news |last=Scism |first=Leslie |date=2014-09-29 |title=Trial in $40 Billion Lawsuit Against AIG Bailout Begins |url=https://www.wsj.com/articles/BL-LB-49374 |access-date=2025-02-08 |work=Wall Street Journal |language=en-US |issn=0099-9660}}{{Cite news |last=Cassidy |first=John |date=2014-09-30 |title=The A.I.G. Trial Is A Comedy |url=https://www.newyorker.com/news/john-cassidy/aig-trial-comedy |access-date=2025-02-08 |work=The New Yorker |language=en-US |issn=0028-792X}} In response, government lawyer Kenneth Dintzer sought to paint Mr. Greenberg and the A.I.G. shareholders as ingrates with a sense of “entitlement” that "knows no bounds."{{Cite web |last=Kessler |first=Aaron M. |date=2014-09-30 |title=A.I.G. Trial Witnesses Will Be Central Cast From 2008 Crisis |url=https://archive.nytimes.com/dealbook.nytimes.com/2014/09/29/a-i-g-trial-witnesses-will-be-central-cast-from-2008-crisis/ |access-date=2025-02-08 |website=DealBook |language=en}} The trial lasted thirty-seven days and included testimony from Former Chairman of the Federal Reserve Ben Bernanke, and former Secretaries of the Treasury Timothy Geithner, Henry Paulson.{{cite news|last1=Scism|first1=Leslie|title=Closing Arguments Loom in AIG Bailout Trial|url=https://blogs.wsj.com/law/2015/04/21/closing-arguments-loom-in-aig-bailout-trial/|newspaper=The Wall Street Journal|access-date=February 5, 2016|archive-date=February 5, 2016|archive-url=https://web.archive.org/web/20160205163804/http://blogs.wsj.com/law/2015/04/21/closing-arguments-loom-in-aig-bailout-trial/|url-status=live}}{{Cite news |title=AIG Lawsuit Presents Different Versions Of 2008 Bailout |url=https://www.npr.org/2014/10/10/355187956/aig-lawsuit-presents-different-versions-of-2008-bailout |access-date=2025-02-08 |work=NPR |language=en}} Jimmy Lee (banker) testified that AIG had no hope of obtaining private financing.{{Cite news |last=Wilson |first=Daniel |date=November 13, 2014 |title=AIG Had No Hope Of Private Lifeline, JPMorgan Banker Says |url=https://www.law360.com/securities/articles/596151/aig-had-no-hope-of-private-lifeline-jpmorgan-banker-says |url-status=live |access-date=March 25, 2025 |work=Law 360}}{{Cite news |last=Scism |first=Leslie |date=November 13, 2014 |title=J.P. Morgan Deal Maker Lee to Take Stand in Greenberg’s AIG Suit |url=https://www.wsj.com/articles/j-p-morgan-dealmaker-lee-to-take-stand-in-greenbergs-aig-suit-1415901193 |url-status=live |work=Wall Street Journal |pages=1}} Former secretary Paulson testified that the terms of the bail out were meant to be punitive.{{Cite web |last=Kessler |first=Aaron M. |date=2014-10-06 |title=Paulson Testifies That 'Punitive' A.I.G. Terms Were Also Necessary |url=https://archive.nytimes.com/dealbook.nytimes.com/2014/10/06/paulson-takes-the-stand-in-a-i-g-trial/ |access-date=2025-02-08 |website=DealBook |language=en}} John J. Studzinski testified that he advised the AIG Board when it decided to accept the bailout. After closing arguments by Boies and Dintzer,{{Cite news |title=Closing Arguments Begin In AIG Bailout Case |url=https://www.npr.org/2015/04/22/401540507/closing-arguments-begin-in-aig-bailout-case |access-date=2025-02-08 |work=NPR |language=en}}{{Cite news |last=Scism |first=Leslie |date=2015-04-21 |title=Closing Arguments Loom in AIG Bailout Trial |url=https://www.wsj.com/articles/BL-MBB-35863 |access-date=2025-02-08 |work=Wall Street Journal |language=en-US |issn=0099-9660}} Judge Thomas C. Wheeler ruled that the terms of the Federal Reserve loan to AIG had been an illegal exaction, as the Federal Reserve Act did not authorize the New York Fed to nationalize a corporation by owning its stock.[http://cdn.harvardlawreview.org/wp-content/uploads/2016/01/859-866-Online.pdf Recent Cases: Court of Federal Claims Holds that Government Acquisition of Equity Share in AIG Effected an Illegal Exaction] {{Webarchive|url=https://web.archive.org/web/20160205175119/http://cdn.harvardlawreview.org/wp-content/uploads/2016/01/859-866-Online.pdf |date=February 5, 2016 }}, 129 Harv. L. Rev. 859 (2016).{{Cite web |last=hlr |date=2016-01-11 |title=Starr International Co. v. United States |url=https://harvardlawreview.org/print/vol-129/starr-international-co-v-united-states/#:~:text=Recently,%20in%20Starr%20International%20Co,so%20effected%20an%20illegal%20exaction. |access-date=2025-02-08 |website=Harvard Law Review |language=en-US}} Judge Wheeler did not award compensation to the plaintiffs, ruling that they did not suffer economic damage because "if the government had done nothing, the shareholders would have been left with 100 percent of nothing."{{cite news |last=Sorkin |first=Andrew|url=https://www.nytimes.com/2015/06/16/business/dealbook/surprise-ruling-finds-bailout-shorted-aig.html®ion=Header&action=click&contentCollection=Home%20Page&pgtype=article |title=In A.I.G. Case, Surprise Ruling That Could End All Bailouts |work=The New York Times |date=June 15, 2015 |access-date=June 16, 2015 }}

Greenberg and the U.S. Government appealed to the Court of Appeals for the Federal Circuit, which ruled that Greenberg had no legal right to challenge the bailout because that right belonged to AIG, which in this case, chose not to sue.{{cite web|title=Greenberg's Starr to Appeal AIG Bailout Case to Supreme Court|url=https://www.insurancejournal.com/news/national/2017/05/10/450449.htm|website=Insurance Journal|date=May 10, 2017|access-date=May 4, 2018|archive-date=May 4, 2018|archive-url=https://web.archive.org/web/20180504155629/https://www.insurancejournal.com/news/national/2017/05/10/450449.htm|url-status=live}}

• AIG Inc. et al. v. Maiden Lane II LLC

AIG filed suit against the Federal Reserve Bank of New York in January 2013 in order to maintain the former's right to sue Bank of America and other issuers of bad mortgage debt.{{cite news|last1=Stempel|first1=Jonathan|title=AIG Sues The New York Fed|url=http://www.businessinsider.com/aig-sues-maiden-lane-ii-2013-1|access-date=April 18, 2018|work=Business Insider|date=January 12, 2013|archive-date=May 4, 2018|archive-url=https://web.archive.org/web/20180504155523/http://www.businessinsider.com/aig-sues-maiden-lane-ii-2013-1|url-status=live}} The specific issue was whether the Federal Reserve Bank of New York transferred $18 billion in litigation claims on troubled mortgage debt through Maiden Lane Transactions, entities created by the Fed in 2008.{{Cite news |date=2010-10-22 |title=AIG to raise $18bn from AIA share sale |url=https://www.bbc.com/news/business-11603977 |access-date=2024-03-11 |work=BBC News |language=en-GB}} This transaction, AIG argued, prevented them from recouping losses from insured banks. Owing to events which allowed AIG to proceed in another related case, AIG Inc. v. Bank of America Corporation LLC, AIG withdrew the Maiden Lane case "without prejudice" on May 28, 2013.

• AIG Inc. v. Bank of America Corporation LLC

On May 7, 2013, Los Angeles U.S. District Judge, Mariana Pfaelzer, ruled in a case between AIG and Bank of America concerning possible misrepresentations by Merrill Lynch and Countrywide as to the quality of the mortgage portfolio, that $7.3 billion of the disputed claims had not been assigned.{{cite news |last=Stempel |first=Jonathan |url=https://www.reuters.com/article/us-aig-newyorkfed-maidenlane-idUSBRE94T11020130530 |title=AIG drops a lawsuit versus New York Fed related to bailout |date=May 30, 2013 |work=Reuters |access-date=December 16, 2013 |archive-date=February 6, 2016 |archive-url=https://web.archive.org/web/20160206000429/http://www.reuters.com/article/us-aig-newyorkfed-maidenlane-idUSBRE94T11020130530 |url-status=live }} The two parties settled in July 2014, with Bank of America paying out $650 million to AIG, who in turn dismissed their litigation.{{cite news|last1=Freifeld|first1=Karen|title=BofA pays AIG $650 million to settle mortgage disputes|url=https://www.reuters.com/article/us-bankofamerica-mbs-settlement/bofa-pays-aig-650-million-to-settle-mortgage-disputes-idUSKBN0FL1B720140716|access-date=May 3, 2018|work=Reuters|archive-date=May 4, 2018|archive-url=https://web.archive.org/web/20180504225234/https://www.reuters.com/article/us-bankofamerica-mbs-settlement/bofa-pays-aig-650-million-to-settle-mortgage-disputes-idUSKBN0FL1B720140716|url-status=live}}

In July 2023, the AIG board includes:{{cite web | url=https://www.aig.com/about-us/leadership-and-governance/board-of-directors |archive-url=https://web.archive.org/web/20230208171059/https://www.aig.com/about-us/leadership-and-governance/board-of-directors |archive-date=February 8, 2023 |publisher=AIG|title=Board of Directors | access-date=July 17, 2023 | url-status=live }}{{cite news |date=2023 |title=Board of Directors |url=https://www.aig.com/home/about/leadership-and-governance |work=AIG |access-date=April 11, 2023 |url-status=live |archive-date=April 11, 2023 |archive-url=https://web.archive.org/web/20230411175820/https://www.aig.com/home/about/leadership-and-governance }}{{cite web|url=https://www.aig.com/about-us/leadership-and-governance/board-of-directors|title=Board of Directors | AIG|access-date=April 6, 2021|archive-date=December 24, 2017|archive-url=https://web.archive.org/web/20171224204350/http://www.aig.com/about-us/corporategovernance/board-of-directors|url-status=dead}}

• Paola Bergamaschi – former executive at State Street, Credit Suisse and Goldman Sachs
• James Cole Jr. – chairman and CEO, The Jasco Group
• John Rice – former vice chairman of GE, former president and CEO of the GE Global Growth Organization{{cite web | url=https://www.insurancebusinessmag.com/us/news/breaking-news/retired-ge-vice-chairman-joins-aigs-board-of-directors-398964.aspx | title=Retired GE vice chairman joins AIG's board of directors | access-date=June 30, 2022 | archive-date=July 6, 2022 | archive-url=https://web.archive.org/web/20220706011432/https://www.insurancebusinessmag.com/us/news/breaking-news/retired-ge-vice-chairman-joins-aigs-board-of-directors-398964.aspx | url-status=live }}
• W. Don Cornwell – former chairman and CEO, Granite Broadcasting Corporation
• Linda A. Mills – former vice president of operations, Northrop Grumman Corporation
• Diana M. Murphy – managing director, Rocksolid Holdings; former president, USGA{{cite news|title=Diana Murphy and Vanessa Wittman to Join AIG's Board of Directors|url=https://www.wsj.com/articles/diana-murphy-and-vanessa-wittman-to-join-aig-s-board-of-directors-1bf39f9e|work=The Wall Street Journal|date=February 27, 2023|access-date=April 11, 2023|archive-date=April 11, 2023|archive-url=https://web.archive.org/web/20230411180157/https://www.wsj.com/articles/diana-murphy-and-vanessa-wittman-to-join-aig-s-board-of-directors-1bf39f9e|url-status=live}}
• Peter R. Porrino – former executive vice president and CFO, XL Group Ltd
• Therese M. Vaughn – former CEO, the National Association of Insurance Commissioners
• Vanessa A. Wittman – former CFO, Glossier, Dropbox, Marsh McLennan
• Peter Zaffino – chairman and CEO, AIG

{{Portal|Companies}}

• Bailout
• 2008 financial crisis
• List of United States insurance companies

{{Reflist|2}}

• {{cite book|author=Angelides, Phil |title=Financial Crisis Inquiry Report|url=https://books.google.com/books?id=QIKfTVrhNfMC&pg=PA352|year=2011|publisher=DIANE Publishing|isbn=978-1-4379-8072-1}}
• {{cite book|last1=Cunningham|first1=Lawrence A.|last2=Greenberg|first2=Maurice R.|title=The AIG story|date=2013|publisher=John Wiley & Sons|location=Hoboken, N.J.|isbn=978-1118345870}}
• {{cite journal | last=Sjostrom | first=William K. Jr. | title=The AIG Bailout | date=November 2009 |journal=Washington and Lee Law Review |volume=66 | ssrn=1346552 }}
• {{cite news | title= An Insurance Giant, Brought Down | date= September 27, 2008 | url = https://www.nytimes.com/imagepages/2008/09/27/business/20080928_MELT_GRAPHIC.html | work=The New York Times | access-date =September 27, 2008 | archive-url= https://web.archive.org/web/20080930071745/http://www.nytimes.com/imagepages/2008/09/27/business/20080928_MELT_GRAPHIC.html| archive-date= September 30, 2008 | url-status= live}} (Graphic)
• [http://graphics8.nytimes.com/images/2008/09/17/business/17aig-graf01.jpg "Losses in Perspective"] New York Times. September 17, 2008. (Graphic of AIG quarterly net profit & losses over five years, comparing Finance vs. Insurance activities.)
• {{cite news |first = Bill| last = Marsh | title = A Tally of Federal Rescues | url = https://www.nytimes.com/imagepages/2008/09/28/weekinreview/20080928_MARSH_GRFK.html | work=The New York Times | date = September 28, 2008 | access-date =September 28, 2008 | archive-url= https://web.archive.org/web/20081001202707/http://www.nytimes.com/imagepages/2008/09/28/weekinreview/20080928_MARSH_GRFK.html| archive-date= October 1, 2008 | url-status= live}}
• {{cite news | first1 = R.M | last1 = Schneiderman | first2 = Philip |last2=Caulfield |first3=Celena |last3=Fang |first4=Elisabeth |last4=Goodridge |first5=Vikas |last5=Bajaj | title= How a Market Crisis Unfolded: Some of the key events in the upheaval | date= September 15, 2008 | url = https://www.nytimes.com/interactive/2008/09/15/business/20080915_TURMOIL_TIMELINE.html |work=The New York Times | access-date =September 17, 2008| archive-url= https://web.archive.org/web/20080916231720/http://www.nytimes.com/interactive/2008/09/15/business/20080915_TURMOIL_TIMELINE.html| archive-date= September 16, 2008 | url-status= live}} (Graphic and interactive timeline.)
• {{cite book |title=Fatal Risk: A Cautionary Tale of AIG's Corporate Suicide |last=Boyd |first=Roddy |year=2011 |publisher=Wiley |location=Hoboken, NJ |isbn=978-0-470-88980-0 }}
• {{cite book |title=Fallen Giant: The Amazing Story of Hank Greenberg and the History of AIG |last=Shelp |first=Ron |author-link=Ronald Shelp |year=2006 |publisher=Wiley |location=Hoboken, NJ |isbn=0-471-91696-X |url=https://archive.org/details/fallengiantamazi00rons }}
• For a list of counterparties receiving U.S. taxpayer dollars, see: [https://web.archive.org/web/20100110204144/http://www.businessweek.com/the_thread/economicsunbound/archives/2009/03/german_and_fren.html#more Business Week – List of Counterparties and Payouts]

{{Commons category|American International Group}}

• {{Official website|https://www.aig.com}}

{{Finance links

| name = American International Group, Inc.

| symbol = AIG

| sec_cik = 5272

| yahoo = AIG

| google = AIG:NYSE

}}

{{American International Group}}

{{Major insurance companies}}

{{ICISA members}}

{{authority control}}

Category:Life insurance companies of the United States

Category:Reinsurance companies

Category:Companies based in Manhattan

Category:Financial services companies based in New York City

Category:Holding companies based in New York City

Category:Insurance companies based in New York City

Category:Multinational companies based in New York City

Category:Publicly traded companies based in New York City

Category:American companies established in 1919

Category:Financial services companies established in 1919

Category:Holding companies established in 1919

Category:Chinese companies established in 1919

Category:1960s initial public offerings

Category:Companies listed on the New York Stock Exchange

Category:Former components of the Dow Jones Industrial Average

Category:Subprime mortgage crisis