Names in the News: American International Group
Publication Date: February 2006
Publisher(s): National Institute on Money in State Politics (U.S.)
Author(s): Megan Moore
In mid-February, financial and insurance powerhouse American International Group (AIG) entered into a $1.64 billion settlement amid charges of "fraud, bid-rigging and improper accounting." The settlement stemmed from a lawsuit brought by the New York Attorney General's office in cooperation with the New York State Insurance Department and the U.S. Department of Justice. The agreement is the largest reached by a single company, and the money will go to investors, policyholders and various state and federal agencies.
AIG provides property, casualty and life insurance as well as retirement and asset management through numerous member companies. The company and more than 30 affiliates have spent more than $4.9 million influencing state politics since the 2000 election cycle.
Nearly half of AIG campaign contributions came from 21st Century Insurance, an auto insurance provider that offers coverage in eight states and gave $2.4 million. The second-highest amount of contributions came from American International Group, which gave $1.3 million. AIG SunAmerica, a retirement savings company, gave more than $100,000, as did Variable Annuity Life Insurance, American General Financial Group and American General Corp, all of which were acquired in 2001 and hit the $100,000 level of giving after their acquisition by AIG.