Is AIG (American International Group, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, AIG is Not Halal (Haram) and is not considered permissible for Muslim investors. It failed 2 of 4 compliance screens. American International Group, Inc.'s core business activity was found to be non-compliant. Its cash & securities ratio of 97.50% exceeds the ≤33% threshold.

American International Group, Inc. (AIG) is a major global insurance organization providing property, casualty, life, and retirement solutions. The company serves commercial, institutional, and individual customers worldwide, offering products ranging from general liability and environmental coverage to trade credit and aerospace insurance. For Muslim investors using AAOIFI standards, AIG is classified as Not Halal (Haram) and should be avoided. The company fails the primary business activity screen because conventional insurance contracts inherently involve prohibited elements such as gharar (excessive uncertainty) and riba (interest-based investments of premiums). Beyond its non-compliant core business, AIG also fails the cash and securities screen, with these liquid, interest-bearing assets accounting for 97.5% of its market capitalization against a 33% limit. However, the company does maintain a passing debt-to-market cap ratio of 23.3% and keeps its direct interest income to revenue ratio low at 0.72%. Because AIG operates entirely in the conventional insurance space rather than the permissible Takaful (Islamic cooperative insurance) model, there is no scholarly debate regarding its non-compliance. Muslim investors seeking exposure to the risk management sector must look for dedicated Takaful operators instead. American International Group, Inc. operates in the Financial Services sector under the Insurance - Diversified industry and is headquartered in New York City, NY, US. The company is led by CEO Peter Salvatore Zaffino and employs approximately 22,200 people.

AIG was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. AIG passed 2 of these 4 screens.

AIG was last screened on 2026-04-29. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.