AIG also sold insurance on multi-sector collateralized debt obligations, backed by real estate assets, ultimately losing more than $30 billion. These activities were apparently motivated by a belief that AIG's real estate bets would not suffer defaults and were "money-good." We find that these...
Validus Acquisition To Drive Growth In AIG's General Insurance Segment The Validus acquisition looks like a sound decision as the deal adds businesses that the company had never ventured into or had pulled out from, thereby expanding its general insurance portfolio. This should generate additional pr...
The only difference was that this type of insurance received little regulation and, astoundingly, because of its sterling AAA rating, it didn’t require any collateral. According to the Financial Crisis Inquiry Commission, which was created by Congress to understand—and ostensibly prevent—another ...
A key player in the financial crisis was insurance giant American International Group (AIG), which sold a huge volume of credit default swaps supposedly protecting buyers of mortgage-backed securities from losses due to default. But AIG had nowhere near
Insurance giantAmerican Int’l Group(AIG) offered on Thursday to pay $15.7 billion in cash to repurchase a portfolio of residential mortgage-backed securities, or RMBS, the U.S. government had taken off the insurer’s hands during the height of the financial crisis. The securities were acquire...
Benmosche, a former MetLife CEO, came out of retirement in 2009—tasked with bringing AIG back from the dead, after the $182 billion taxpayer buyout of the insurance giant. "Had we not acted, I believe the financial system as we know it today would not be here today," Benmosche said ...
A financial crisis hits the U.S., the government provides support to AIG. 2006 AIG acquires Travel Guard, a provider of travel insurance programs and emergency travel assistance. 2001 Tata Group and AIG form a joint venture, Tata AIG General Insurance Company, in India. ...
American International Group Inc. (AIG) is a large multinational insurance company offering life insurance, property-casualty insurance, retirement products, and other financial services in more than 80 countries.1 AIG was at the center of the financial crisis storm in 2008, receiving a$182 bil...
This paper provides a case study of affiliate risk, based on the experience of insurance companies that were part of the American International Group, Inc (AIG) during the global financial crisis of 2007/08. This case study raises many questions about the effectiveness of risk management and ...
In 2008, AIG, the global insurance business, was one of the institutions that was determined to be too big to fail, and received a bailout from the U.S. government. The firm survived the financial crisis and paid back its debt to U.S. taxpayers. Is AIG Financially Stable? Yes, AIG ...