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AIG (American International Group)
🏢 Overview
AIG is a multinational finance and insurance corporation. In 2017, Berkshire Hathaway and AIG entered into a massive retroactive reinsurance agreement.
📅 Timeline of Affiliation
2017: The $10.2 Billion Reinsurance Deal
- Berkshire reinsured up to $20 billion of long-tail losses that AIG had incurred on past business.
- In exchange, AIG paid Berkshire a world-record premium of $10.2 billion.
- This massive infusion of cash significantly boosted Berkshire's float, bringing it to $114.5 billion at the end of 2017.
- Source: 2017 Letter
🔗 Links
- Entities: Berkshire Hathaway
- Concepts: Retroactive Reinsurance, Insurance Float, Insurance Principles
- Sources: 2017 Letter
📚 Historical Mentions & Citations (1)
Click a reference document below to expand and read the exact paragraph(s) containing this concept in the archive.
📜2017 LetterExcerpt Available▼
2017 LetterExcerpt Available
Our 2017 volume was boosted by a huge deal in which we reinsured up to $20 billion of long-tail losses that AIG had incurred. Our premium for this policy was $10.2 billion, a world’s record and one we won’t come close to repeating. Premium volume will therefore fall somewhat in 2018.