VIEWS: 9 PAGES: 4 POSTED ON: 4/22/2010
World leaders in insurance and ﬁnancial services, AIG has four principal business segments: General Insurance The largest U.S. underwriters of commer- cial and industrial insurance and the most extensive international property-casualty network, including personal lines business and mortgage guaranty insurance. Life Insurance & Retirement Services The most extensive global network of any life insurer, a leading U.S. life insurance organization and a premier retirement serv- ices franchise with a leadership position in the U.S. ﬁxed annuities market as well as a growing international network. At a Glance Financial Services A major presence in aircraft ﬁnance, capital markets, consumer ﬁnance and insurance premium ﬁnance. Asset Management Institutional and individual assets, retail funds and private banking through a growing global network. A M E R I C A N I N T E R N A T I O N A L G R O U P, I N C . A I G AT A G L A N C E General Insurance Financial Services AIG’s General Insurance operations include the largest U.S. underwriters of commercial AIG’s Financial Services businesses and industrial insurance, the most extensive international property-casualty network, specialize in aircraft and equipment leasing, a personal lines business with an emphasis on auto insurance and high-net-worth clients, capital markets, consumer ﬁnance and a mortgage guaranty insurance operation and a leading international reinsurer. AIG’s insurance premium ﬁnance. These busi- leadership is a result of its underwriting skill, innovative insurance solutions, ﬁnancial nesses complement AIG’s core insurance strength, superior service and responsive claims handling. The AIG claims operation operations and achieve a competitive gives clients access to a vast worldwide network of dedicated experts and top legal ﬁrms. advantage by capitalizing on opportunities throughout AIG’s global network. Domestic Brokerage Group United Guaranty Corporation The businesses in AIG’s Financial Services Group The principal units of the Domestic Brokerage United Guaranty Corporation subsidiaries provide are leaders in the markets they serve. Group (DBG) provide a wide range of commercial residential mortgage guaranty insurance for ﬁrst- s International Lease Finance Corporation (ILFC) and industrial coverages. and second-lien mortgages, private education loan is AIG’s aircraft leasing business. With a ﬂeet s AIG Executive Liability is the leading provider default insurance, and other ﬁnancial services to of more than 900 planes, ILFC is a market leader of directors and ofﬁcers, and employment ﬁnancial institutions and mortgage investors. in the leasing and remarketing of new advanced practices liability, and a premier underwriter of technology commercial jet aircraft worldwide. professional liability, ﬁdelity coverage, network ILFC is the largest single customer to date for security insurance and ﬁduciary coverages. the new Boeing 787 Dreamliner. Its products were previously marketed under s Capital Markets operations are conducted through the National Union Fire Insurance Company AIG Financial Products Corp., which engages in of Pittsburgh, Pa., brand. transactions, as principal, to provide clients with s Lexington Insurance Company is the leading risk management solutions and sophisticated U.S.-based excess and surplus lines carrier, hedging and investment products in standard and specializing in property, casualty, healthcare customized transactions involving commodities, and program risks. credit, currencies, energy, equities and rates. s AIG Excess Casualty is the leading provider Clients include top-tier corporations, ﬁnancial institutions, governments, agencies, institutional of commercial umbrella and excess casualty investors and high-net-worth individuals liability insurance. Transatlantic Holdings, Inc. throughout the world. s AIG Specialty Workers’ Compensation® is a Transatlantic Holdings, Inc. (TRH), is a majority- s AIG’s consumer ﬁnance business consists of market-leading workers’ compensation insurer owned subsidiary of AIG. TRH’s subsidiaries offer American General Finance, Inc. (AGF) and AIG for small and midsize businesses. reinsurance capacity on both a treaty and faculta- Consumer Finance Group, Inc.(CFG). AGF is one s AIG Risk Management® provides casualty risk tive basis worldwide—structuring programs for of the largest consumer ﬁnance organizations in the management products and services to large a full range of property and casualty products, United States, with a branch network in 45 states, commercial customers. with an emphasis on specialty risks. Puerto Rico and the U.S. Virgin Islands. AGF’s s AIG Environmental is the largest U.S. provider primary market is in the United States, but it of environmental liability coverages and services. Foreign General Insurance Group continues to explore opportunities in interna- s AIG Worldsource provides global insurance The Foreign General Insurance Group comprises tional markets. CFG, through its subsidiaries, programs for U.S.- and Canadian-based AIG’s international property-casualty operations. offers a broad range of consumer ﬁnance products, multinationals, as well as foreign companies with s American International Underwriters (AIU) is the primarily in emerging markets. As these markets operations in the United States and Canada. marketing unit for AIG’s overseas property-casualty continue to attract investment, CFG’s businesses s DBG also includes many specialty business units operations and the most extensive foreign network have signiﬁcant potential to expand operations that draw on the worldwide resources of AIG of any insurance organization. Stretching across in developing countries around the world and companies to meet client needs in the aviation, Asia and the Paciﬁc to Latin America, Europe, provide consumers with more products. transportation and construction industries, Africa and the Middle East, AIU markets a full s Imperial A.I. Credit Companies, Inc., is the the small business sector and the accident and range of property-casualty products to both largest insurance premium ﬁnance provider in health arena, as well as engineering services commercial and consumer clients. the United States. through AIG Consultants, Inc. s AIU Accident & Health Division is a leading s HSB Group, Inc., the parent company of The provider of accident, supplemental health and Hartford Steam Boiler Inspection and Insurance travel insurance to international businesses Company, HSB Engineering Insurance Limited, and consumers. and The Boiler Inspection and Insurance s AIU Commercial Lines Division is a market Company of Canada, is a leading worldwide leader in ﬁnancial lines in Europe, surpassing provider of equipment breakdown and engineered one billion dollars in premiums. lines insurance. s AIU Personal Lines Division operates globally Domestic Personal Lines to provide automobile, personal property and extended warranty coverages. It also provides AIG’s growing Domestic Personal Lines opera- products and services for the high-net-worth tions provide automobile insurance through segment, institutional and individual clients. aigdirect.com and AIG Agency AutoSM, and offer a broad range of coverages for high-net-worth The General Insurance segment also includes individuals through AIG Private Client Group. AIG Global Marine and Energy which serves the AIG is among the top 10 writers of automobile global insurance, risk management and loss control insurance, with historical growth rates exceeding needs of marine and energy clients, including industry averages. renewable operations such as biofuel, hydroelectric, geothermal, solar and wind. Life Insurance & Retirement Services Asset Management Serving millions of customers around the world, AIG’s growing global Life Insurance busi- AIG’s Asset Management businesses nesses make up the most extensive network of any life insurer. Strategies for enhancing include institutional and individual asset growth focus on developing new markets, expanding distribution channels and broadening management, broker-dealer services, private product offerings. AIG has one of the premier Retirement Services businesses in the banking and spread-based investment United States and also has an extensive international retirement services network—both programs, as well as the management of poised to meet the asset accumulation, protection and lifetime income needs of individuals AIG insurance invested assets. around the world. Foreign Life Insurance & Retirement Services Domestic Life Insurance & Retirement Services The businesses in AIG’s Asset Management AIG’s Foreign Life Insurance & Retirement In the United States, AIG’s Domestic Life Group leverage AIG’s deep knowledge of markets Services operations are conducted principally Insurance & Retirement Services businesses offer around the world and expertise in a wide range through the following market-leading companies: a comprehensive range of life insurance, annuity, of asset classes. s American International Assurance Company, and accident and health products for ﬁnancial s AIG Investments manages equities, ﬁxed income, Limited (AIA), is AIG’s ﬂagship life insurance planning, estate planning and wealth transfer. private equity, hedge fund of funds and real company for Southeast Asia and the leading life They use a full complement of distribution estate investments for institutional, individual insurer in the region. Its extensive network of channels, including banks, national and regional and high-net-worth investors around the world. branches, subsidiaries and afﬁliates spans Australia, brokerage ﬁrms, independent ﬁnancial planning AIG Investments ranks among the top seven Brunei, China, Guam, Hong Kong, India, ﬁrms, independent and national marketing money managers in the world by institutional Indonesia, Macau, Malaysia, New Zealand, organizations, brokerage general agencies, assets under management. Singapore, South Korea, Thailand and Vietnam. independent insurance producers and general s AIG Private Bank Ltd., AIG’s Zurich-based private agents, and worksite specialists. The principal banking subsidiary, provides personalized private operations include the following: banking and structured wealth management solu- s AIG American General, one of the largest life tions, including investment advisory and asset insurance organizations in the United States, management products to a worldwide clientele. distributes a broad range of life insurance, annuity, s AIG SunAmerica Asset Management Corp. manages and accident and health products. and/or administers retail mutual funds, as well s AIG Annuity Insurance Company is the largest as the underlying assets in AIG SunAmerica issuer of ﬁxed annuities in the United States and AIG Retirement variable annuities sold to and the leading provider of annuities sold through banks. s AIG Retirement (formerly branded as AIG VALIC) is the nation’s leading provider of group retirement plans to K-12 education and the third largest to s American Life Insurance Company (ALICO) healthcare and higher education institutions. is among the largest international life insurance s AIG SunAmerica Retirement Markets is one companies in the world, with operations in more of the nation’s leading distributors of individual than 50 countries. ALICO’s operations stretch variable annuities and income solutions. from Japan to Europe, the Middle East, Latin America, South Asia and the Caribbean. s AIG Star Life Insurance Co., Ltd., and AIG Edison Life Insurance Company contribute to AIG’s growing life insurance presence in Japan individuals and institutional groups throughout through the sale of life, accident and health, the United States. and retirement services products via agents, s The AIG Advisor Group, Inc., broker-dealers brokers and bank partners. provide ﬁnancial products, technology support s Nan Shan Life Insurance Company, Ltd., is and business-building programs to independent Taiwan’s second-largest life insurer in terms of ﬁnancial advisors serving the retirement total premium. planning needs of clients in the United States. s The Philippine American Life and General Insurance Company (Philamlife) is the largest and most proﬁtable life insurance company in the Philippines. ABOUT AIG FINANCIAL HIGHLIGHTS (in millions, except per share data and ratios) 2007 2006 % Change American International Group, Inc. (AIG), a world leader in Net income(a) $ 6,200 $ 14,048 (55.9) Net realized capital gains (losses), net of tax (2,386) 33 — insurance and ﬁnancial services, is Capital Markets other-than-temporary the leading international insurance impairments, net of tax(b) (418) — — organization, with operations in FAS 133 gains (losses), net of tax (304) (1,424) — more than 130 countries and Cumulative effect of an accounting change, net of tax — 34 — jurisdictions. AIG companies serve Adjusted net income (c) 9,308 15,405 (39.6) commercial, institutional and Net income, per common share —diluted 2.39 5.36 (55.4) individual customers through the Adjusted net income, per common share —diluted(c) 3.58 5.88 (39.1) most extensive worldwide property- Book value per common share 37.87 39.09 (3.1) Revenues(d)(e)(f) $ 110,064 $ 113,387 (2.9) casualty and life insurance networks Assets 1,060,505 979,410 8.3 of any insurer. In addition, AIG Shareholders’ equity 95,801 101,677 (5.8) companies are leading providers of General Insurance combined loss and expense ratio 90.33 89.06 retirement services, ﬁnancial services General Insurance combined loss and expense ratio, excluding catastrophe losses 89.73 89.06 and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock Net Income (a) Net Income per Book Value per Common Share exchanges in Ireland and Tokyo. (billions of dollars) Common Share —Diluted (dollars) 39.09 37.87 14.0 (dollars) 5.36 33.24 30.69 10.5 9.8 3.99 26.54 3.73 8.1 3.07 6.2 F O R F U R T H E R I N F O R M AT I O N , 2.39 C O N TA C T: AIG Communications Department 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 tel (212) 770-3099 fax (212) 425-3499 Revenues (d)(e) (f ) Assets Shareholders’ Equity (billions of dollars) (billions of dollars) (billions of dollars) American International Group, Inc. 113.4 1,060.5 101.7 108.8 110.1 95.8 70 Pine Street 97.8 979.4 853.0 86.3 New York, New York 10270 79.6 801.0 79.7 69.2 www.aig.com 675.6 AIG presents its operations and ﬁnancial information in the way it believes will be the most meaningful and useful, as well as most transparent, to the investing public and others who evaluate the performance of AIG. For a reconciliation of such measures to the most 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 comparable GAAP ﬁgures in accordance with SEC Regulation G, visit the Investor Information section of the AIG corporate Web site at www.aigcorporate.com. Certain reclassifications have been made to prior period amounts to conform to the current period presentation. (a) In 2007 and 2006, includes out of period increases (decreases) of $(399) million and $65 million, respectively. (b) Represents Capital Markets other-than-temporary impairments on securities available for sale. (c) In 2007 and 2006, includes out of period increases (decreases) of $(261) million and $85 million, respectively. (d) In 2007 and 2006, includes other-than-temporary impairment charges of $4.7 billion and $944 million, respectively. Also in 2007 and 2006, includes gains (losses) of $(1.44) billion and $(1.87) billion, respectively, from hedging activities that did not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains and losses. (e) In 2006, includes a $730 million increase in revenue for out of period adjustments related to the accounting for UCITS. (f) In 2007, includes an unrealized market valuation loss of $11.5 billion on AIGFP's super senior credit default swap portfolio. Design: Graphic Expression Inc, NYC; www.tgenyc.com
"AIG 2007 AR"