As a major insurance company, AIG (American Insurance Group) specialises in commercial and consumer claims. From liability protection and property insurance to planning for retirement and life insurance, this company deals with virtually every insurance aspect. A smaller division of the firm also provides future damages cover for companies under acquisition or in the process of closure. American International Group also deals with estate investments and its international reputation attracts a whole raft of Fortune Global 500 companies into its portfolio.
Since its foundation in 1919, the Shanghai-based company went on to open several Asia based offices and branches in Latin America and the USA followed. At the beginning of the Second World War, the founder Cornelius Starr made the astute and history changing decision to relocate the company’s headquarters to New York.
By the beginning of the 21st century, AIG was already one of the largest insurance companies in the USA. Despite this seemingly secure position, the company took a very heavy hit during the 2007-2008 financial crises due to its deep involvement in the property insurance sales sector. The much reported sub-prime mortgage issues of 2017 saw the company sustaining colossal losses that subsequently resulted in a $180 billion bail-out from the US government.
- Despite receiving widespread criticism in a government report identifying insufficient hedging of the company’s precarious situation during the crisis of 2007, American International Group actually managed to fully repay its government loan. A restructuring of its debts has further lead to on-going consolidation and it is now rated as one of the safest places to invest.
- While there is every possibility that the Federal Reserve may consider increasing interest rates, it is widely argued that companies such as AIG would be among those to benefit from such a move.
- Sales of homes would also increase under a stronger US economy and this, in turn, is likely to lead to homeowners making an increase in property insurance cover too. All of these factors are potentially positive in adding to the value of companies such as AIG.
Because asset trading on corporations like American International Group requires the best technology and platforms in the areas of quickly opening and closing trades, users are advised to deal with specialists. The use and availability of tools and tracking software are also essential trading components for assisting in making the best-informed trading decisions.