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