American International Group's (AIG) Growth and Future: The Greenberg Factor



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Code : LDS0011

Year :
2005

Industry :Banking, Insurance and Financial Services

Region : USA

Teaching Note:Not Available

Structured Assignment :Not Available

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Abstract: American International Group (AIG) is the world's leading global insurance and financial services organisation. Maurice ‘Hank’ Greenberg's charismatic leadership and product innovation transformed a small international insurance company into a global financial powerhouse. But due to new corporate governance regulations, his prominence started declining. In addition, since 2004, AIG is facing regulatory probes over its non-traditional reinsurance plans and its accounting methods. This led to an end of Greenberg's era of more than three decades.

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Pedagogical Objectives:

  • To discuss the non-traditional reinsurance plans and accounting methods
  • To discuss AIG's future without the leadership of Greenberg and whether he was to be blamed for the crisis faced by the company.

    Keywords :American International Group (AIG), Maurice Hank Greenberg, Marsh and McLennan Companies, Finance Case Study, American Insurance Regulatory System, Insurance bid rigging and price fixing, Cornelius Vander Starr, Mergers acquisitions and expansions, Insurance scandal and probe, Autocratic management style, Conflict of interests and investor confidence, Fraud and anti-competitive activities, Secretive culture leadership style, Corporate governance regulations, American insurance industry

    Contents :
    » AIG’s Start and Growth
    » AIG’s Rise - Greenberg Factor
    » AIG’s Troubles – Greenberg’s Role
    » AIG’s Future


    Case Introduction >>


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