Identify Two Projects Or Events That Require An Investment In Aig Essay - 643 words

Identify two projects or events that require an investment in AIG American International Group, Inc. (AIG) is considered to be one of the major insurance corporations in the world. It was founded in 1919 by Edwin Cornelius Vander Starr in Shanghai, China and became the first western company that sold insurance to the Chinese. Later, the company enlarged the geography of its business and then extended the sphere of its building management and vendor selection. American International Group consists of several companies. Some of them are active in the areas of recycling and energy conservation. Recently AIG has invested in the rebuilding of some constructions that were conformed to the U.S.


Green Building Councils Leadership in Energy and Environmental Design (LEED) standards. At present AIG is engaged in the project that converted contaminated land in the center of Atlanta into a large office-retail-residential complex. Organizations that want to increase their participation in some processes (for example, in environmental projects) are supported with capital projects funding. The procedure of financing depends on the size and duration of the project and is based on the planning and budgeting phases of the project. Thats why the effective management is necessary for more complicated and larger projects; otherwise, there will be a lot of difficulties. Very often capital projects are affected by cost and time overruns. These facts will influence negatively the implementation of business strategy and will cause re-financing and even insolvency. The financing of a project depend on its main goals and can be in form of direct government support, industry-wide sponsorship or larger financial incentive. The project of building office-retail-residential complex demands great expenses.


Its economics should be based on how the project recovers the cost of the initial capital outlay. A capital expenditure includes the following costs: costs of capital, property taxes, insurance and constant dollar CRF (if a project is long-term typically over 10 yea ...................................................................................................................................................................................................................................................................................................................................................................

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Essay Tags: international group, american, insurance, investment, programme

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