American International Group is one of the renowned companies in the insuranceindustry around the world. The company holds 11
position in the Forbes 1000 companies list(One source, 2011) and it is listed at number 29 as the largest public company in the ForbesGlobal 2000 companies list (Forbes, 2011). It is world¶s largest insurance company to date. Itsuffered financial crisis and took help from the governmental funding but still its subsidiarieshave managed to provide revenue over general property, casualty insurance, life insurance andretirement services etc. from its individual customers in the US and more than 130 countriesaround the world (Hoovers, 2011). After taking governmental bailout, the company engaged inrestructuring its business operations to support its financial condition and enhance the value of its business by meeting the capital requirements and repayment obligations (AIG, 2011). To meetits restructuring objectives it has formed four main priorities to amend its business processes.
The year 2008 was not a favorable one for American International Group. As of September 2008, the company suffered huge financial setback in terms of downgrading creditratings. The company had no choice but to liquidate. The Federal Reserve bank of United Statescame forward as a savior of AIG group and laid about $ 85 billion to the company to help it meetits credit requirements and to prevent the company¶s collapse. This credit was provided ine
change of company¶s 80% equity (Andrew et al, 2008; Kaiser, 2008; FR
, 2008). AIG startedselling its assets in order to pay off some of its debt requirement to the government in 2008. Theglobal industry for insurance has suffered huge setback in 2008 that weakened the financial position of the company further. The US government then decided to aid the company by morefunding in order to stop it suffering from bankruptcy (