American General is a wholly-owned subsidiary of American multinational insurance and finance organization, AIG (American International Group). The company deals with life, retirement, property-casualty and mortgage insurance in the United States market.
American General got started in 1926
The original company came into existence with the efforts of Gus Sessions Wortham, a native of Houston, Texas.
He with his father established the John L. Wortham & Son Agency insurance firm which later got merged in multi-line underwriting for both casualty and fire insurance.
In 1924, after his father's death, Gus was backed by several business associates to form the nation's first multi-line insurance company on 8th May 1926. This company got named as the American General Insurance Company starting its operation on 7th June 1926.
The company enjoyed great success during its first year of operation managing out well to pay dividends despite economic downturns. In 1939, its first subsidiary was formed, the American General Investment
The company made profits and acquired Seaboard Life Insurance Company in 1945. In 1964 with the acquisition of Maryland Casualty Company they ruled the country as a major casualty and property insurer in almost 50 states.
In the 1980s, the company successfully integrated 20 companies changing its name to American General Corporation. In 1994, its capitalization growth became $5.7 billion and the company decided to make a merge with AIG in August 2001.
During the great recession, AIG weathered a major accounting scandal and to keep from defaulting accepted the government bailout in 2008. Now, AIG got remodeled and American General is a wholly-owned subsidiary of American International Group, Inc. with 7,500 employees.
What does American General offer as the product?
Under AIG, American General Life Insurance Company offers life insurance policies including guaranteed whole life, universal life, term life, and variable universal life insurance.
The policy gets insurer the death benefits during the life of the policyholder. With various features, one can get the required needs in the plan with full flexibility.
The customers get death benefits up to $10 million with the return of premium option on term policies. Even no medical exam is required to opt for guaranteed whole life and universal life insurances.
Their term life insurance offers high payouts and flexible term lengths whereas universal insurance allows a handy cash value to policyholders. They are now among the second-largest issuer of life insurance and third-largest writer of annuities in the United States. They also manage investments for institutions and individuals.
Is American General and AIG the same?
American General is part of AIG as they are the issuing company for insurance products. They carry out financial obligations of insurance products in the market.
They look upon the features and availability of policy in a specific state with varying rates. American General offers life insurance and annuities in all states of the United States except New York.
Is the company well-rated in the market?
Yes, American General Life Insurance Company is well-rated in the market. They got a high rating from top agencies like Moody's, AM Best and Standard & Poors for its solid financial footing.