AIG 2005 Annual Report Download - page 35

AIG ■2005 Annual Report 33
Award” from Reactions magazine for the
fourth consecutive year and AIG Medical
& Rehabilitation in the U.K. was highly
commended by Post magazine for outstand-
ing service.
In Central Europe and C.I.S., AIU
reported good premium growth and strong
profits. These results were driven by bal-
anced performance across all 13 regional
countries, particularly in Romania, where
AIU is a leader in the property and liability
markets. Russia and the Czech Republic
also contributed to AIU’s success in the
region during the year.
In the Middle East, AIU is the largest
foreign insurer in Pakistan and AIG
Sigorta A.S. is the largest accident and
health underwriter in Turkey. In 2005,
AIU’s Middle Eastern operations reported
solid premium and profit growth.
AIU achieved good results in its Latin
American region in 2005. In Brazil,
Unibanco AIG Seguros S.A. is the number
one insurer of corporate business, and the
largest provider of directors and officers
liability insurance. It won the Brokers
Relationship Marketing Award for “Best
Insurance Company in the Brazilian
Market” in 2005. Elsewhere in the region,
American International Insurance Com-
pany of Puerto Rico and La Meridional
Compania Argentina de Seguros S.A. were
the number one providers of casualty insur-
ance in their respective markets. La
Meridional also won the 2005 Gold Award
for the best direct marketing program.
American International Underwriters (AIU),
the marketing unit for AIG’s Foreign
General Insurance operations, has built its
market-leading worldwide presence upon
disciplined underwriting skills, a localized
approach to global insurance and a stead-
fast commitment to customer service.
These qualities are engrained within the
culture of the organization and, in 2005,
again helped drive AIU to strong growth
in the majority of its regions.
In 2005, Foreign General reported net
premiums written of nearly $10 billion,
and a combined ratio of 85.56, which
ranks among the best in the industry. A
major area of growth was in the consumer
segment, with strong production in
accident and health, and record profits in
personal lines.
A significant achievement for AIU in
2005 was the launch of a new segmenta-
tion strategy aimed at fostering more sys-
tematic and specialized relationships with
customers. The strategy aligns dedicated
management personnel with three cus-
tomer segments (major, commercial and
small-medium enterprises) to maximize
efficiency in meeting their specific product,
service and distribution needs. By getting
closer to the customer, AIU seeks to cross-
sell a full range of AIG company products
and services to each segment.
In Japan, American International
Underwriters Insurance Company (AIUI)
and American Home Assurance Company
(AHA) purchased the insurance portfolio
of the Royal & SunAlliance branch opera-
tions. AHA also opened an additional call
center in Toyama to add capacity while
lowering costs.
In mainland China, AIU’s strategic
alliance with PICC Property and Casualty
Insurance Company Limited (PICC) pro-
duced good results with new accident and
health product launches. This alliance pro-
vides AIU with access to PICC’s 104,000
agents and 4,500 branches throughout the
country.
Much like China, India is a region of
tremendous opportunity, with a growing
population in excess of one billion
people. AIG’s joint venture, Tata AIG
General Insurance Company Limited
(Tata AIG), reported premium growth in
all lines of business and loss ratios among
the lowest in the industry in 2005.
Tata AIG’s strong results were driven by
the opening of several new offices and the
launch of India’s first business travel
insurance program.
In Southeast Asia, AIU became the first
U.S.-based insurance organization to
receive a license to operate a wholly owned
general insurance company in Vietnam,
where it will market property-casualty
insurance products to both individuals and
businesses. The addition of Vietnam to its
regional franchise strengthens AIU’s posi-
tion as the largest general insurance
provider in Southeast Asia.
With offices in 13 continental European
countries, AIG Europe S.A. has one of the
most extensive general insurance networks
in the region. Specializing in asset protec-
tion insurance for major and multinational
companies throughout the continent,
AIG Europe S.A. achieved good premium
growth. In 2005, more than 80 percent
of the European Financial Times’ “Top 500
Companies” were AIG Europe S.A.
customers.
AIG’s General Insurance operations in
the U.K. provide insurance to nearly 1.5
million individuals. In 2005, AIG General
Insurance companies in the U.K. were
named “London’s Best Underwriting
Teams” by Reactions magazine. In addition,
AIG received the “Global Reactions
Robert M. Sandler
Executive Vice President
Domestic Personal Lines
Nicholas C. Walsh
Executive Vice President
Foreign General Insurance