AIG 2005 Annual Report Download - page 37

AIG ■2005 Annual Report 35
for entire families and also launched a
flexible endowment life insurance product
that contributed to its strong results.
AIG Life Korea achieved excellent first
year premium growth, mainly due to
increases in universal life sales. AIG Life
Korea was also the market leader in banc-
assurance among all life insurers in Korea.
Since becoming the first U.S.-based
company to operate a life insurance busi-
ness in Vietnam in 2000, AIA has consis-
tently grown its operations, which include
a distribution network of more than
19,000 agents. AIA Vietnam successfully
expanded its product portfolio in 2005 and
is capitalizing on opportunities within
the bancassurance sector.
American Life Insurance Company (ALICO),
which is among the largest international
life insurance companies in the world,
had excellent results in 2005 in terms of
operating income. An intensified focus
on diversifying distribution channels
helped ALICO achieve its growth, while
cost controls enabled margins and profits
to expand.
In Japan, where it has its largest
operation, ALICO reported strong results.
ALICO Japan’s good performance is
attributable to increased sales of life prod-
ucts, continued growth in accident and
health profits, and increased annuity
assets under management. Both captive
and independent agency sales channels
grew at double-digit rates for the year,
despite a challenging market environment.
AIA ranked number one in the Hong
Kong market for both in-force and annual-
ized new business premiums, and garnered
several industry awards for its superior
performance.
In China, where AIA is one of the
leading foreign life insurers, premiums,
deposits and other considerations grew
37.2 percent in 2005. AIA was also named
the number one foreign insurance brand in
China by Horizon Marketing Group, Inc.,
a leading Chinese market research firm.
AIA continues to be the largest life
insurer in Singapore, with a market share
of 29.1 percent in 2005 based on in-force
annualized premiums. AIA Singapore
launched several new products throughout
the year and boosted sales of regular pre-
mium products through various campaigns.
In Thailand, AIA ranked number one
for both in-force and new business premi-
ums. AIA Thailand also launched the first
universal life policy in the country and
was voted the “Most Admired Brand in the
Life Insurance Category” in a BrandAge
survey for the third consecutive year.
AIA grew its Indonesian business
during the year and became the first AIG
company to obtain a license to provide life
products in compliance with Syariah laws
and principles regarding buying and selling.
In Malaysia, AIA received the Reader’s
Digest Superbrand Gold Award for insur-
ance in 2005.
Tata AIG Life Insurance Company,
Limited, one of India’s leading private insur-
ers, has a distribution network that encom-
passes 65 sales offices in 41 cities, as well as
approximately 36,000 agents and four
bancassurance partners. In 2005, Tata AIG
Life Insurance Company Limited became
the first insurance company to offer acci-
dental death and care insurance coverage
Foreign Life Insurance
& Retirement Services
AIG’s Foreign Life Insurance & Retirement
Services businesses offer a broad range of
insurance products in more than 70 countries.
In many of these locations, AIG companies are
among the best-known insurers and have been
serving local markets for more than 50 years.
(in millions) 2005 2004
Premiums, deposits and
other considerations(a) $42,712 $39,866
GAAP premiums 23,016 21,917
(a) Represents aggregate business activity during
the respective periods presented on a non-GAAP
basis.
In 2005, AIG’s Foreign Life companies
achieved excellent results by launching a
number of timely and innovative product
offerings in key regions. This was especially
true in Asia, where many of AIG’s Life
businesses are household names, well-
regarded over many years. The Foreign Life
companies capitalize on a diverse range of
distribution channels, including a strong
and highly professional agency force, banc-
assurance, worksite marketing and direct
marketing, among others. These channels
provide a powerful platform for growth.
American International Assurance Company,
Ltd. (AIA) continues to be the dominant life
insurer in Southeast Asia. In 2005, AIA
rolled out a number of campaigns aimed at
increasing recruitment and productivity
among agents in Hong Kong, which helped
increase sales of higher margin risk-based
products – a major corporate initiative.
Frank Chan
President and CEO
Nan Shan
Bruce R. Abrams
President and CEO
AIG Annuity and AIG VALIC
Gustavo Covacevich
President
International Retirement Services
and Group Management Division
Jose L. Cuisia, Jr.
President and CEO
Philamlife