American International Group (AIG) has the world covered. New York City-based AIG is a global insurance presence, offering life insurance, property/casualty lines, mortgage guaranty, financial services, and jet leasing in the US and internationally (foreign insurance premiums account for more than a third of sales). AIG has been expanding its role in asset management, mostly through acquisitions (including the purchase of retirement specialist SunAmerica) and joint ventures. The company has a long history of insurance operations in the Far East and supported China's accession to the World Trade Organization. Chairman and CEO Maurice Greenberg owns more than 20% of AIG.

AIG is one of the few insurers that makes an underwriting profit instead of depending on investments to stay in the black, largely due to the legendary Greenberg. Greenberg had taken steps to ensure his legacy continues by naming his second son, Evan, as his successor (eldest son Jeff is president at Marsh & McClennan Companies). Evan resigned, and a new heir has not yet become apparent.

AIG wooed insurer American General away from rival suitor Prudential plc to bolster its share of the lucrative US retirement planning market. The combination of the two companies will result in 1,500 jobs being cut in both AIG and American General positions.

AIG's planned purchase of the financial units of the South Korean Hyundai Group fell through when the company failed to agree on investment terms with the Korean financial supervisory commission.

Former ice cream parlor owner Cornelius Starr founded property/casualty insurer American Asiatic Underwriters in Shanghai in 1919. After underwriting business for other insurers, Starr began selling life insurance policies to the Chinese in 1921 (foreign companies were loath to do so despite the longevity of the Chinese). In 1926 he opened a New York office specializing in foreign risks incurred by American companies. As WWII loomed, Starr moved his base to the US; when the war cut off business in Europe, he focused on Latin America. After a brief postwar return to China, the company was kicked out by the communist government.

In the 1950s the company began providing disability, health, and life insurance and pension plans for employees who moved from country to country. Starr chose his successor, Maurice Greenberg, in 1967 and died the next year. Greenberg, who had come aboard in 1960 to develop overseas operations, took over the newly formed American International Group, a holding company for Starr's worldwide collection of insurance concerns. Greenberg's policy of achieving underwriting profits forced the company to use tight fiscal discipline. AIG went public in 1969.

By 1975 AIG was the largest foreign life insurer in much of Asia and the only insurer with global sales and support facilities. AIG's underwriting policies saved it when price wars from 1979 to 1984 brought heavy losses to most insurers. In 1987 AIG became the second US-owned insurer (after Chubb) to enter the traditionally closed South Korean market.

The 1980s saw AIG begin investment operations in Asia, increase its presence in health care, and form a financial services group. It bought International Lease Finance Corporation, which leases and remarkets jets to airlines, in 1990. AIG soon moved into parts of Eastern Europe.

The company resumed its Chinese operations in 1993 after triumphing over stiff opposition from state-owned monopolies.

With a strong presence in many developing nations, AIG began cross-selling an array of financial products in those markets. In 1995 the company formed the Asian Infrastructure Fund, a mutual fund for individual investors. The following year AIG acquired SPC Credit, a consumer and commercial finance company with offices in the Philippines, Taiwan, and Thailand.

In 1998 AIG bought SunAmerica for $18.3 billion, giving the company access to a sales-driven distribution network and greater flexibility in the consolidating financial services industry.

In 1999, AIG continued to live up to the "international" in its name. The company won licenses to begin insurance businesses in Azerbaijan, Romania, Bulgaria, and Sri Lanka. As part of a crackdown on foreign insurers, the Chinese government in 1999 stopped AIG from selling what it considered group policies -- historically the sole province of Chinese companies -- though a U.S.-China pact reached later that year will allow foreign firms gradual entrance to the group-policy market.

Chairman and CEO; Chairman, Transatlantic Holdings: Maurice R. Greenberg, age 76
Senior Vice Chairman, General Insurance, and Director: Thomas R. Tizzio, age 64, $1,134,700 pay
Vice Chairman, CFO, and Chief Administrative Officer: Howard I. Smith, age 57, $1,011,924 pay
Vice Chairman and Co-COO: Martin J. Sullivan, age 48
Vice Chairman and Co-COO: Edmund S. W. Tse, age 64, $1,180,742 pay
Vice Chairman, External Affairs, and Director: Frank G. Wisner, age 64
Vice Chairman, Investments and Financial Services, and Director: Edward E. Matthews, age 70, $1,180,000 pay
EVP and Chief Investment Officer: Win J. Neuger, age 52
EVP; CEO, AIG Companies in Japan and Korea: Donald P. Kanak, age 49
EVP, Domestic General Insurance: Kristian P. Moor, age 42
EVP, Life Insurance: R. Kendall Nottingham, age 63
EVP, Life Insurance; Vice Chairman and Group Executive, Life Insurance; Chairman, American General Life Insurance: Rodney O. Martin, age 48
EVP, Retirement Savings; Vice Chairman, SunAmerica: John A. Graf
EVP, Retirement Savings and Director; President and CEO, SunAmerica: Jay S. Wintrob, age 45
EVP, Senior Casualty Actuary, and Senior Claims Officer: Robert M. Sandler, age 60
SVP, Administration: Lawrence W. English, age 60
SVP, Financial Services: William N. Dooley, age 49
SVP, Human Resources: Axel I. Freudmann, age 55
SVP, Investments; Vice Chairman and Group Executive, Investment Management; President and CEO, American General Investment Management: Richard W. Scott, age 47

Headquarters:  70 Pine St., New York, NY 10270
Web Site:  http://www.aig.com
Phone:  212-770-7000
Fax:  212-509-9705
American International Group's subsidiaries operate througho
ut the US and in about 130 other countries.
Ticker symbol:  AIG
Exchange:  NYSE

AEGON
AXA
Allianz
Allmerica Financial
American Family Insurance
Aon
Berkshire Hathaway
CIGNA
CNA Financial
Fortis (NL)
GeneralCologne Re
ING
Jefferson-Pilot
John Hancock Financial Services
Kemper Insurance
Legal & General Group
Liberty Mutual
Lloyd's of London
MGIC Investment
MassMutual
Meiji Life Insurance
MetLife
Millea Holdings
New York Life
Prudential
Prudential plc
Reliance Group Holdings
SAFECO
State Farm
Allstate
Chubb
The Hartford
St. Paul Companies
Travelers

                               1992     1993     1994     1995
Assets ($ mil.)            79,835.2101,014.8114,346.1134,136.4
Net income ($ mil.)         1,656.9  1,938.8  2,175.5  2,510.4
Income as % of assets         2.08%    1.92%    1.90%    1.87%
Earnings per share ($)         0.83     0.97     1.08     1.25
Stock price - FY high ($)     12.82    15.87    15.95    22.67
Stock price - FY low ($)       8.66    11.63    12.94    15.22
Stock price - FY close ($)    12.25    13.89    15.52    21.96
P/E - high                       16       16       15       18
P/E - low                        11       12       12       12
Dividends per share ($)        0.05     0.06     0.07     0.07
Book value per share ($)       6.38     7.59     8.23     9.93
Employees                    33,000   33,000   32,000   34,500
                                  1996        1997        1998
Assets ($ mil.)              148,431.0   163,970.7   194,398.0
Net income ($ mil.)            2,897.3     3,332.3     3,766.0
Income as % of assets            1.95%       2.03%       1.94%
Earnings per share ($)            1.45        1.68        1.91
Stock price - FY high ($)        27.63       41.02       54.76
Stock price - FY low ($)         20.92       25.28       34.62
Stock price - FY close ($)       25.70       38.71       51.56
P/E - high                          19          24          29
P/E - low                           14          15          18
Dividends per share ($)           0.09        0.10        0.09
Book value per share ($)         11.15       12.21       13.79
Employees                       36,600      40,000      48,000
                                  1999        2000        2001
Assets ($ mil.)              268,238.0   306,577.0   492,982.0
Net income ($ mil.)            5,055.0     5,636.0     5,363.0
Income as % of assets            1.88%       1.84%       1.09%
Earnings per share ($)            2.15        2.41        2.02
Stock price - FY high ($)        75.29      103.75       98.31
Stock price - FY low ($)         51.03       52.40       66.00
Stock price - FY close ($)       72.12       98.56       79.40
P/E - high                          35          43          47
P/E - low                           23          22          31
Dividends per share ($)           0.13        0.14        0.16
Book value per share ($)         14.34       16.91       19.94
Employees                       55,000      61,000      81,000
2001 Year-End:
 Equity as % of assets: 10.58%
Return on assets: 1.34%
Return on equity: 11.69%
Long-term debt ($ mil.): 53,839.0
No. of shares (mil.): 2,615.4
Dividend yield: 0.20%
Dividend payout: 7.92%
Market value ($ mil.): 207,665.3
Sales ($ mil.): 55,459.0