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American International Group, Inc. ('''AIG''') (; ) is a major American Insurance Corporation based in New York City . It has its European HQ in Croydon in London , England and its Asian HQ in Hong Kong , China . AIG is the sixth-largest company in the world according to the 2007 Forbes Global 2000 list. The company became a component of the Dow Jones Industrial Average on April 8 , 2004 . It is also the sponsor of Manchester United F.C. On December 11, 2006 it was announced that a division of AIG would purchase from Dubai Ports World disputed North American ports . HISTORY AIG's history dates back to 1919 by when Cornelius Vander Starr set up an insurance agency in Shanghai , China . Starr was the first Westerner in Shanghai to sell insurance to the Chinese. When his business was successful there, he expanded to Asia , Latin America , Europe , and the Middle East . In 1962, Starr gave management of the company's unsuccessful U.S. holdings to Maurice R. "Hank" Greenberg , who shifted the company's U.S. focus from personal insurance to high-margin corporate coverage. Greenberg focused on selling the insurance through independent Broker s rather than agents because Greenberg wanted to avoid selling insurance at prices which occasionally became too low (to cover the future payouts) given marketplace competition; a company with agents must pay their salary even while selling little to no insurance. Instead, with brokers, AIG could price insurance properly even if it suffered decreased sales of certain products for long lengths of time with very little extra expense. In 1968, Starr named Greenberg his successor. The company Went Public in 1969. Greenberg resigned as the company's CEO in February 2005 amid concern from the board about regulatory inquiries. On 6 April 2006 , AIG president and chief executive Martin J. Sullivan , announced American International Group (AIG) as the new shirt sponsors of English Football team Manchester United , in a British record shirt sponsorship deal of £ 56.5 million (£14.1 million a year) over four years. HOLDINGS in Hong Kong]] AIG owns ILFC , the world's largest aircraft leasing company, with hundreds of aircraft ranging from Airbus A319 s to Boeing 747 s. Through various subsidiaries, AIG owns about 62% of 21st Century Insurance Group (see http://finance.yahoo.com/q?s=TW) AIG owns American International Assurance known as AIA. It is an insurance company based in Hong Kong and has offices in Asia-Pacific region. AIG directly owns 9.9% of People's Insurance Company Of China (PICC). Through three subsidiaries plus its direct ownership, AIG actually owns 19.8 percent. AIG owns Stowe Mountain Resort and a private golf course in Vermont. AIG's connection to Stowe started when C.V. Starr, the company's founder, invested in the resort in 1946. Maurice R. Greenberg has a home in Stowe and still skis. Stowe is AIG's sole ski business. At Stoic Old Stowe, a New Era Since May 2007, AIG also owns most of the Bulgarian Telecommunications Company and the third Bulgarian mobile operator, Vivatel . {Link without Title} BUSINESS AIG is the world's leading international and AIG VALIC , and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed on the New York Stock Exchange , as well as stock exchanges in London , Paris , Switzerland and Tokyo . AIG are also the principle sponsor of English football team Manchester United and the Japan Open Tennis Championships . BUSINESS MODEL A major focus of AIG's insurance business model is the concept of an ''underwriting profit''. For example, an auto insurer collects money every month from its customers in the form of premium. Should a customer have a covered auto accident, the company pays out a claim. In the time between the receipt of each premium payment and the paying of the claim, the money received by the insurer can be invested. Returns from Investment s are the primary source of profits for an insurance company. If the amount of premiums taken in is greater than the claims paid out even before taking into account investment returns the excess additional profit is called an "underwriting profit". Greenberg believed that it was necessary for an insurance company to make an underwriting Profit , even though typically most insurance companies do not. LITIGATION In November 2004, AIG reached US$ 126 million settlement with the U.S. Securities And Exchange Commission and the Justice Department partly resolving a number of regulatory matters, but the company still must cooperate with investigators continuing to probe the sale of a "non-traditional insurance product." The settlement concerned a so-called " Finite Insurance " product. ACCOUNTING FRAUD CLAIMS In 2005 AIG came under investigation for accounting Fraud . Timeline
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