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EXCERPTS
Product Segments
AIG carried out its operations through four product segments, namely, life insurance, general insurance, financial services, retirement savings and asset management.
LIFE INSURANCE
AIG was the second largest life insurance company in the US. Life insurance was AIG's largest product segment in terms of revenues generated and its operations were spread over more than 70 countries. This segment was highly successful because the company had a broad product range, trained its agents well, and used a variety of distribution channels like banks, retail stores and the Internet...
Geographic Segments
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AIG had subsidiaries in more than 130 countries. The company segmented its global operations into Domestic, Far East and Other Foreign operations (Refer Exhibit II). The Far East operations included the company's Chinese, Japanese and Korean operations. 'Other foreign operations' was further divided into nine geographic segments namely Africa, Australasia, Central Europe and CIS, Europe, Latin America, Middle East, South Asia, Southeast Asia and UK/Ireland.
DOMESTIC
The domestic segment comprised Canada and the US. This segment generated $36.83 billion in revenues, which accounted for 59.01% of AIG's total revenues in 2001 (Refer Table III)...
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Other Foreign Operations
This segment comprised all the other regions in which AIG operated. This was the smallest contributor to the company's revenues accounting for 13.58% of total revenues in 2001 (Refer Table VI). Some of the major regions in this segment were Africa, Australasia, South Asia, and UK/Ireland.
AFRICA
AIG had operations in five countries in Africa, namely Kenya, Nigeria, South Africa, Uganda and Zimbabwe. In Kenya, the company operated through American Life Insurance Company (Kenya) Ltd. (ALICO Kenya), and AIG Global Investment Company...
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Human Resources
AIG was known for its performance-based career advancement policy. Employees usually joined at an early age and left the company after several years of service. The company fostered an informal and open environment. The CEO, Greenberg, himself met employees at all levels to keep track of the developments in the company. The organizational culture of the company was described as dynamic, innovative, result-oriented and opportunity-driven. AIG believed that just the bi-weekly salary was not enough to motivate employees. In addition to the comprehensive basic benefits package (Refer Exhibit III), AIG also provided a wide range of supplementary benefits to its employees... |
Excerpts Contd... >>
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