AIG (American International Group) is a corporate insurance and financial service-providing firm. Cornelius Vander Starr founded the financial services-providing company in 1919. Today, we’ll discuss the SWOT analysis of AIG; it outlines strengths and weaknesses; opportunities, and threats that the company has to face; as a business strategy analysis example company.
Products and services portfolio of AIG
- Mutual funds
- Investment management services
- Mortgage loans
- Life insurance services
- Home insurance services
- Travel insurance services
- Commercial Insurance
- Vehicle insurance services
- Health insurance services
- General insurance services
Industry-Focused area of AIG
- Financial services
- Insurance services
Statistical facts and figures of AIG
- Annual revenue – 46.80 billion USD (2023)
- Net income – 3.614 billion USD (2023)
- Employees – 25200
- Asset net worth – 539.3 billion USD (2023)
Competitors and rival companies of AIG
- Marsh McLennan
- Allianz Group
- MetLife
- Liberty Mutual Insurance
- Swiss Re
- Berkshire Hathaway
- Loews
- Aflac
- Aviva
- Morgan Stanley
- BNY Mellon
The SWOT analysis of AIG would analyze the internal strengths and weaknesses of the company; and external opportunities and threats that the brand has to face. Here’s AIG SWOT analysis as a business strategy analysis example company as follows;
Strengths of AIG
Some of the main internal strengths in the AIG SWOT analysis example company as business strategy analysis are as follows;
Large Network
AIG (American International Group) has established a very large network and the company is operating its financial service business in over 80 countries across the globe. The worldwide network helps the company to strengthen its market position and diversify the risk factor.
Portfolio
AIG has a very large financial product and service portfolio comprising of a wide range of financial, property, retirement, and insurance services. The large service portfolio helps the company to target various segments of the customer market and offer them financial solutions.
Recognized Brand
AIG has been operating its business in the financial service industry for the past over 100 years. The company has a long history of serving customers and it has allowed the company to earn the trust and confidence of the customers and market. In fact, the company has also won various awards and nominations that further strengthen the company’s market position;
- Top 50 Companies for Diversity List
Advanced Analytical Tools
AIG invests a significant amount of capital resources in the technological development of advanced analytical tools and measures. They help the company to accurately measure the risk, predicting patterns, trends, and rewards. As a result, it helps the company to make the right financial decisions and reduce the risk rate.
Marketing & Sponsorships
AIG employs various media channels and marketing campaigns for the promotion of its brand and services. The company has also sponsored various mega sporting events over the years; they’re as follows;
- Manchester United FC
- Women British Open Golf Tournament
- AIG Women’s Open
Weaknesses of AIG
Some of the main internal weaknesses in the AIG SWOT analysis example company as business strategy analysis are as follows;
Financial Issues
The US government gave 180 billion dollars in loans and bailed out the company during the financial crisis of 2007-08. Such types of massive bailouts and financial crises aren’t good for the company’s reputation in the long term.
Controversy & Scandals
The US Security and Exchange Commission and the Justice Department launched an investigation into the company’s finances and accounting scandal. They found the company guilty of an accounting scandal and imposed a penalty of 1.6 billion USD in 2005.
Over-reliance on Business Services
Many business and financial experts have pointed out that AIG is heavily relying on financial services as its main source of revenue. It is good when the country’s economy is growing, but it becomes a highly risky strategy to rely on a few services for a company’s growth.
Lack of Stable Management
AIG keeps on changing its management from time to time. The lack of stable leadership and company management creates uncertainty in the workplace environment and decreases the morale and confidence level of employees.
Opportunities for AIG
Some of the main available opportunities in the AIG SWOT analysis example company as business strategy analysis are as follows;
Acquisition
AIG has acquired various firms and businesses over the years. The company should keep acquiring new firms and businesses as a part of its expansion strategy. The diversity in the business portfolio helps the company to decrease the risk rate.
Tech Investment
AIG should keep investing in the latest and advanced analytical tools; AI, ML, and data processing technology; it would help the company to make the right business decision by accurately predicting market trends and patterns.
Market Expansion
AIG should keep expanding its business in new regions and markets across the world. It allows the company to strengthen its market position by targeting customers globally; instead of relying on a few markets.
Portfolio Growth
AIG should amplify the growth of all the financial services, rather than just a few of them. It comprises adding unique value and offers in the services to attract the attention of customers.
Threats to AIG
Some of the main potential threats in the AIG SWOT analysis example company as business strategy analysis are as follows;
Economic Downturn
The global economy is going through the recession phase, and people are limiting their spending. When people have no job and limited income, they won’t spend their income on insurance or financial services.
Legal Issues
AIG has a long history of lawsuits and other financial issues. It resulted in the form of heavy fines and punitive charges and ultimately caused financial losses and legal expenses. Most importantly, it is jeopardizing the company’s reputation in the market.
Competition
The insurance and financial service market has become highly competitive. There are multiple financial companies offering the same types of services; their market presence is decreasing the company’s market share.
Conclusion: AIG SWOT Analysis Example Company |SWOT Analysis of AIG |Business Strategy Analysis
After an in-depth study of the SWOT analysis of AIG; we have realized that AIG is the world’s leading financial service-providing company. If you are learning about AIG SWOT analysis example company; then you should keep in mind the abovementioned internal strengths and weaknesses; external opportunities and threats as brand strategy analysis.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
