AIG traces its roots to 1919, when American Cornelius Vander Starr established a general insurance agency, American Asiatic Underwriters, in Shanghai, China. Since then, an enterprising spirit, ingenuity, and tenacity have built the company into one of the world’s leading insurers.

The first New Zealand office opened in Wellington and officially began to write business on September 28, 1970, as managing agents for the American Home Assurance Co. A second office was opened in Auckland, not long after.

Today, AIG is focused on what it has been known for since the beginning: the willingness and ability to provide insurance coverage to meet the diverse needs of its clients.

Some of the biggest issues facing our world today, like climate change, require the active collaboration of the public sector, the private sector, academia and non-governmental organizations. AIG serves as a trusted advisor to many of these stakeholders around the world based on our technical expertise in analyzing risk. We have an important role to play in addressing these complex challenges.

No two risks are the same. Each risk is unique and different industries and businesses have different risk appetites.  The role of insurance in risk mitigation and underwriting is an opportunity to apply our technical expertise to help manage today’s risks while supporting solutions to pressing societal problems. No two investments are the same. Each investment opportunity presents unique risks and rewards that we carefully analyze. We take these responsibilities very seriously.

Given the complexity of these issues, AIG does not publicly comment on underwriting decisions related to specific projects or specific investments. We are committed to promoting economic growth and sustainable solutions that benefit society today and for future generations.

Click here to read more about AIG's stance on sustainability.

AIG Insurance New Zealand Limited (Company) is a wholly owned subsidiary of American International Group, Inc. (AIG), headquartered in New York.

One of the largest insurance companies in the world, the AIG group has operated in the general insurance business in New Zealand since 1970. Until 2011 the business was a branch of a member of the AIG group based in the USA. On 1 December 2011 the branch business was transferred to the Company and the Company became the first licensed insurer under the Insurance (Prudential Supervision) Act 2010 (IPSA). With the issue of the licence the Company became subject to the IPSA regulatory regime administered by the Reserve Bank of New Zealand (RBNZ).

As at 30 June 2020, our solvency as filed with the Reserve Bank of New Zealand is as follows:

• minimum solvency capital: $35.6 million;
• actual solvency capital: $136.1 million;
• solvency margin: $100.5 million; and
• solvency result: 382.5%.

By comparison, our solvency results filed with the Reserve Bank of New Zealand as at 30 June 2019 were as follows:

• minimum solvency capital: $37.1 million;
• actual solvency capital: $105.0 million;
• solvency margin: $67.9 million; and
• solvency result: 283.0%.

Financial Strength Rating

The Insurance (Prudential Supervision) Act 2010 requires licensed insurers to have a current financial strength rating that is given by an approved rating agency. AIG Insurance New Zealand Limited has an A (Strong) insurer financial strength rating given by Standard & Poor’s (Australia) Pty Ltd. The rating scale, in summary form is:

The rating from 'AA' to 'CCC' may be modified by the addition of a plus (+) or minus (-) sign to show relative standing within the major rating categories.  A full description of the rating scale is available on Standard & Poor’s website.

Broker and Agent Compensation

AIG New Zealand Limited (“AIG”) values the role of insurance producers in advising and consulting with insurance buyers, and generally compensates them in recognition of their participation in the purchasing process. Please contact your insurance broker or agent to obtain information about the specific compensation they may receive in connection with the issuance of your policy.

Commissions

AIG compensates insurance brokers and agents through commissions of either a specific dollar amount or a percentage of premium set at the time of each purchase, renewal, placement or servicing of a particular insurance policy. From time to time, AIG may enter into agreements with producers to provide additional commission not contingent in nature. All such payments are subject to controls administered by AIG Legal, Compliance and business management.

Contingent Compensation

AIG may also pay contingent compensation to insurance brokers and agents in addition to commissions. Contingent compensation is typically based on criteria such as the volume of new sales, overall production volume, mix of business, or overall profitability of the policies placed by an insurance broker or agent. All such payments are subject to controls administered by AIG Legal, Compliance and business management.

Other Compensation

AIG may also enter into agreements to access information feeds or cause strategic interaction to facilitate business in exchange for a fee. Outside of specific insurance transactions, AIG may also obtain services for which it pays a fee.