AIG Invests $2 Billion: Focusing on Future Expansion to Avoid Previous Liabilities

American International Group (AIG) has agreed to pay $2 billion to obtain the renewal rights for the majority of

Group’s global retail insurance business, a move that significantly broadens its client portfolio while avoiding Everest’s legacy liabilities, as reported by . The deal, which is expected to be finalized by early 2026, supports CEO Peter Zaffino’s ongoing efforts to reshape the company into a more streamlined and responsive insurer. By acquiring future business opportunities without taking on previous claims, AIG will benefit from Everest’s customer connections and international presence, without the burden of pre-existing policy risks, according to Fortune.

This partnership addresses strategic needs for both companies. Everest, having miscalculated claims expenses in its U.S. casualty insurance operations, is now dealing with capital limitations and challenges in managing loss reserves. For AIG, the agreement boosts the growth of its general insurance division, which has already gained traction under Zaffino’s leadership. In 2024, AIG’s insurance premiums reached $23.9 billion, up 6% from the previous year, and new business climbed 9% to $4.5 billion, Fortune notes. The company’s first and second quarter results for 2025 further highlight its progress, with new premiums totaling $4.5 billion and $6.9 billion, respectively.

The deal also underscores a growing connection between the two organizations. Everest recently appointed Anthony Vidovich, who spent three decades at AIG, as its new executive vice president and general counsel, according to

. Vidovich, formerly head of legal affairs for AIG’s insurance unit, will now direct Everest’s legal and regulatory initiatives, joining a leadership team that increasingly features former AIG executives. Bermuda Reinsurance Magazine reports that Everest CEO Jim Williamson commended Vidovich’s expertise in complex regulatory matters, describing him as “an outstanding asset” to Everest’s expansion plans.

AIG’s robust financial position enables it to complete such transactions without seeking outside funding. After surviving a $182 billion government rescue during the 2008 financial crisis, the company has since overhauled its operations, reduced risk exposure by more than $1 trillion, and adopted AI-powered solutions for underwriting and claims, Fortune observes. Its recent Q2 2025 earnings of $1.1 billion—a sharp turnaround from a $4 billion loss in 2024—highlight the effectiveness of these changes. In contrast, Everest is valued at about $14.5 billion, while AIG’s market capitalization stands at $44 billion, reflecting the insurer’s ambitious scale.

The structure of the agreement is also attractive to investors. By purchasing renewal rights, AIG sidesteps the financial impact of old liabilities, a lesson learned from its previous involvement with credit default swaps. Everest keeps all obligations from before the transaction, allowing AIG to concentrate on future opportunities without complicating its financial statements, Fortune explains. This strategy is consistent with Zaffino’s focus on prudent underwriting and operational excellence, which has helped AIG’s stock outperform the market by 5.36% annually over the last five years, according to a

.

Major investors have noticed AIG’s turnaround. While Ethic Inc. trimmed its holdings by 12.5% in the second quarter of 2025, other firms such as Pinnacle Associates and Monument Capital Management increased their stakes, signaling faith in AIG’s direction, according to a

. Analysts forecast earnings per share of 6.24 for 2025 and a dividend yield of 2.3%, suggesting AIG is well-placed to maintain its growth trajectory.

Acquiring Everest’s renewal rights is more than just a financial move—it represents a new approach for insurers in the post-pandemic era. By focusing on future expansion rather than legacy issues, both AIG and Everest are reshaping risk management in an industry still dealing with the aftermath of previous crises, Fortune concludes.