Have you ever wondered about the true longevity of a global financial powerhouse like AIG? It's a company name that resonates with many, especially given its prominent role in the 2008 financial crisis, but its origins stretch back much further than most might realize. Let's embark on a journey through time to uncover just how long AIG has been in business, tracing its remarkable path from a humble beginning in China to becoming a major player on the world stage.
How Long Has AIG Been in Business? A Step-by-Step Historical Deep Dive
The short answer is: AIG has been in business for over a century. More precisely, it was founded in 1919. This makes AIG a venerable institution in the financial world, having weathered numerous global events, economic shifts, and industry transformations. But to truly appreciate its longevity, we need to delve into the key milestones that shaped its incredible journey.
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| How Long Has Aig Been In Business |
Step 1: The Genesis in Shanghai – 1919
Ready to travel back in time? Imagine the bustling streets of Shanghai in the early 20th century. This vibrant global hub was the unlikely birthplace of what would become AIG.
The Visionary Founder: Cornelius Vander Starr, a 27-year-old American entrepreneur with a keen eye for opportunity, established a general insurance agency called American Asiatic Underwriters (AAU).
A Modest Start: It began as a small, two-room office with just two clerks, primarily serving American expatriates and local businesses in China. This initial venture laid the groundwork for AIG's future international reach.
Beyond General Insurance: Within two years, Starr expanded AAU's offerings to include life insurance, demonstrating an early understanding of diverse market needs.
Step 2: Global Expansion and Diversification – The Early Decades (1920s-1950s)
Starr's vision was never confined to a single market. He meticulously built a network that would eventually span continents.
Sub-heading 2.1: Spreading Across Asia and Beyond
Tip: Don’t just glance — focus.
Branching Out: By the late 1920s, AAU had established branches throughout China and Southeast Asia, including the Philippines, Indonesia, and Malaysia.
First U.S. Footprint: In 1926, Starr opened his first office in the United States, named American International Underwriters Corporation (AIU). This was a significant step, signaling a growing focus on the American market while still serving U.S.-owned risks outside of North America.
Latin American Ventures: Starr also saw potential in Latin America, with AIU entering Havana, Cuba, in the late 1930s. This strategic move proved crucial as it helped offset business declines in Asia during World War II.
Sub-heading 2.2: Navigating World War II and Post-War Growth
Headquarters Relocation: In 1939, with the escalating conflict in Asia, Starr wisely moved his headquarters from Shanghai to New York City.
Post-War Opportunities: After World War II, AIU seized opportunities in newly accessible markets, entering Japan and Germany to provide insurance for American military personnel. This period saw continued expansion across Europe.
Strengthening U.S. Presence: The 1950s marked a deliberate pivot towards the American market. In 1952, Starr acquired Globe & Rutgers Fire Insurance Company, further solidifying his domestic operations. By the end of the decade, Starr's enterprises boasted an extensive network in over 75 countries.
Step 3: Formalizing the Giant – The Birth of AIG (1960s-1970s)
While Starr had built a vast network of insurance companies, a formal umbrella organization was yet to emerge.
The Arrival of Hank Greenberg: A pivotal moment came in 1960 when C.V. Starr hired Maurice "Hank" Greenberg, who would go on to play a transformative role in the company's history. Greenberg revolutionized sales approaches, focusing on independent brokers to increase efficiency and profitability.
A Unifying Structure: In 1967, American International Group, Inc. (AIG) was formally incorporated as a unifying holding company for most of C.V. Starr's diverse insurance businesses. This marked the official birth of the entity we know today as AIG.
Leadership Transition: Upon Starr's passing in 1968, Greenberg was named his successor, embarking on a remarkable 37-year tenure that would see AIG's market capitalization skyrocket.
Going Public: In 1969, AIG went public, providing significant capital for further expansion and acquisitions. The 1970s saw AIG continue to innovate, introducing specialized products for niche industries like energy, transportation, and shipping.
Step 4: Era of Global Dominance and Diversification (1980s-2000s)
AIG's growth accelerated dramatically, reaching unprecedented levels of influence and global reach.
NYSE Listing: In 1984, AIG listed its shares on the New York Stock Exchange (NYSE), further enhancing its visibility and access to capital markets.
Expanding Product Lines: The company continuously expanded its market distribution and worldwide network, offering a wider range of specialized products, including pollution liability and political risk insurance.
Strategic Investments: The 1990s saw AIG diversify its income streams through various investments. A notable acquisition was International Lease Finance Corporation (ILFC), a major provider of leased aircraft to the airline industry.
Re-entry into China: In a significant diplomatic and business achievement, AIG received the first foreign insurance license granted in over 40 years by the Chinese government in 1992, marking a triumphant return to its roots.
Focus on Retirement Savings: Towards the end of the millennium, AIG acquired SunAmerica Inc., a prominent retirement savings company, further broadening its financial services portfolio.
Step 5: The Financial Crisis and Beyond (2008-Present)
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The global financial crisis of 2008 posed the most significant challenge in AIG's long history, threatening its very existence.
QuickTip: Read with curiosity — ask ‘why’ often.
The Bailout: Due to its massive exposure to credit default swaps tied to subprime mortgages, AIG faced a severe liquidity crisis in 2008. To prevent a systemic collapse of the financial system, the U.S. government provided AIG with an unprecedented bailout, ultimately totaling over $180 billion. This period was incredibly tumultuous and led to significant public scrutiny and internal restructuring.
Asset Divestitures: Following the bailout, AIG embarked on a massive program of asset divestitures, selling off non-core businesses globally to repay the government funds. Notable sales included AIA and Alico.
Rebuilding and Repositioning: In the years that followed, AIG focused on rebuilding its core insurance operations, strengthening its balance sheet, and implementing more rigorous risk management practices. The company has worked diligently to regain its standing and demonstrate its resilience.
Continued Evolution: AIG continues to adapt to the evolving global financial landscape, optimizing its portfolio and focusing on sustainable growth in its core general insurance and life and retirement businesses. For instance, in 2022, AIG's life and retirement business unit, Corebridge Financial, began publicly trading as a separate company, demonstrating its commitment to strategic portfolio management.
From its founding in 1919 to the present day, AIG's journey spans over 105 years. It is a testament to enduring entrepreneurial spirit, adaptability, and the fundamental role of insurance in a dynamic global economy.
Frequently Asked Questions (FAQs) about AIG's History
Here are 10 common "How to" questions related to AIG's long business history, with quick answers:
How to calculate how long AIG has been in business?
Simply subtract the founding year (1919) from the current year (2025). years. (Though the founding itself happened in late 1919, so depending on the exact date within the year, it's slightly over 105 years).
How to find out who founded AIG?
AIG was founded by Cornelius Vander Starr.
QuickTip: Focus on one paragraph at a time.
How to understand AIG's original business model?
AIG began as an insurance agency (American Asiatic Underwriters) in Shanghai, initially underwriting for other insurance companies before expanding to offer its own insurance products.
How to trace AIG's international expansion?
AIG's international expansion began shortly after its founding in Asia, then extended to the United States (1926), Latin America, Europe, and eventually, a significant re-entry into China.
How to identify the key leader who expanded AIG significantly?
Maurice "Hank" Greenberg is credited with transforming AIG into a global giant during his long tenure from 1968 to 2005.
How to explain AIG's role in the 2008 financial crisis?
AIG became deeply entangled in the 2008 financial crisis primarily due to its exposure to credit default swaps related to subprime mortgages, requiring a massive government bailout.
Reminder: Reading twice often makes things clearer.
How to find information about AIG's recovery post-2008?
Information about AIG's recovery typically highlights its extensive asset divestitures, repayment of government aid, and strategic restructuring of its core businesses.
How to learn about AIG's presence in different countries today?
AIG maintains a global presence, serving businesses and individuals in over 200 countries and jurisdictions through its operations, licenses, and network partners.
How to understand the current structure of AIG?
AIG is a leading global insurance organization providing a wide range of property casualty insurance and other financial services, having recently separated its life and retirement business into Corebridge Financial.
How to find significant historical milestones in AIG's timeline?
Key milestones include its founding in 1919, the establishment of AIG as a holding company in 1967, its NYSE listing in 1984, the 2008 financial crisis bailout, and the recent spin-off of Corebridge Financial.
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