AIG : Everything you need to know

AIG: Everything you need to know

About AIG

American International Group (AIG) is a global insurance company that started in China in 1919, when an American named Cornelius Vander Starr launched an insurance agency, American Asiatic Underwriters, in Shanghai. The company eventually expanded its presence across the globe, and today, its key business units include general insurance, life and retirement, and investments.

Through its insurance offerings tailored for businesses, AIG provides products and services that include traditional insurance, specialised solutions, and excess and surplus lines insurance to help businesses address emerging risks. The company’s clients range from large, international, and mid-sized companies to small businesses, entrepreneurs, and non-profits found around the world.

AIG in the news

• 2018: AIG acquires Validus Holdings, a provider of reinsurance, primary insurance, and asset management services
• February 2019: AIG reports a catastrophe-driven net loss of US$622 million for the fourth quarter of 2018, down significantly from US$6.7 billion in the prior-year quarter
• June 2019: AIG CEO reaching out to shareholders over compensation package after they only narrowly approved his multi-million-dollar compensation package
• June 2019: AIG consolidates reinsurance operations into one global business and names CEO
• July 2019: AIG taps cybersecurity expert as deputy CISO
• August 2019: AIG establishes key financial officer role, appointing Sabra Purtill to the newly created role of deputy CFO, head of treasury, investor & rating agency relations, and corporate development
• September 2019: AIG transitions to affirmative cyber coverage across all commercial lines
• November 2019: AIG makes £1.39 billion in Fortitude Group Holdings sale
• December 2019: AIG appoints Peter Zaffino as president
• February 2020: AIG outlines US$500 million accelerated share repurchase
• May 2020: AIG breaks record with new Lloyd's syndicate
• June 2020: AIG finalises sale of Fortitude Group Holdings
• October 2020: AIG appoints Peter S. Zaffino as chief executive officer
• October 2020: AIG to exit from life and retirement business
• February 2021: AIG lines up mega business sale
• March 2021: AIG names Claude E. Wade as global head of operations
• July 2021: AIG publishes ESG report for the first time
• September 2021: AIG names Clara Brady as new underwriting chief for international casualty
• September 2021: AIG’s Peter Zaffino to take on additional role
• November 2021: AIG finalises sale of equity stake in L&R business to Blackstone
• December 2021: AIG selects respected economist Constance Hunter as global head of strategy and ESG
• December 2021: AIG appoints industry veteran Graham Fulcher to newly created role of international general insurance chief actuary
• January 2022: AIG unveils new net zero commitments

Key people

Peter Zaffino – chairman & CEO

Peter Zaffino joined AIG in July 2017 as global chief operating officer. He was appointed as the insurance giant’s president in December 2019 and took on the additional role of chief executive officer in March 2021. In January 2022, he also became the chairman of the board of directors.

Zaffino boasts more than 30 years of experience in the insurance and reinsurance sector, taking on leadership roles at several industry behemoths. He joined AIG after his almost two-year stint as chairman of the risk and insurance businesses at Marsh McLennan, where he also served as CEO from 2011. Prior to this, he was president and CEO of Guy Carpenter between 2008 and 2011.

Zaffino earned a BA in economics from Boston College and an MBA in finance from New York University’s Leonard N. Stern School of Business. He is a member of the boards of The Michael J. Fox Foundation for Parkinson’s Research and the New York Police and Fire Widows’ and Children’s Benefit Fund.

Culture

AIG takes its involvement in sustainability seriously, creating a leadership solely devoted to this in July 2019, and naming Jennifer Waldner to fill the role. Waldner has accountability for implementing AIG’s sustainability strategy in her new role, and she also helps to develop a reporting structure. She likewise leads a cross-functional team to drive global sustainability initiatives, while ensuring that AIG’s sustainability strategy is properly executed throughout the organisation, a release said.

“The creation of a chief sustainability officer position reflects AIG’s ongoing commitment to sustainability as an insurer, investor, employer and corporate citizen, along with our efforts to take a thoughtful, coordinated approach across our global footprint,” said AIG executive vice president and AIG Life Holdings vice-chair Thomas B. Leonardi in a statement.

Leonardi added that Waldner’s expertise on sustainability matters and understanding of AIG’s business “uniquely position her for success in this important role.”

“I look forward to working with colleagues around the world to evolve AIG’s sustainability strategy and to enhance our reporting approach,” commented Waldner.

Waldner’s appointment came as AIG issued its first Task Force on Climate-related Financial Disclosures (TCFD) report. The report contained information on the company’s environmental, social, and human capital initiatives.