AIG 2005 Annual Report Download - page 38

36 Review of Operations
Life Insurance & Retirement Services
Continued
development process. Philam Plans,
Philamlife’s pre-need subsidiary, topped
industry sales for the fourth consecutive
year, with an overall market share of
23 percent. More than 300,000 Filipino
families are Philam Plans customers.
Philam Plans is also the dominant provider
of education plans in the Philippines, with
a 32 percent market share of sales.
AIG International Retirement Services
(AIGIRS) had good results in 2005, its third
year of operations. Following its success in
Japan and Korea, AIGIRS reported strong
growth in China in annuity deposits via
the bancassurance channel. AIGIRS
successfully expanded its product portfolio
and distribution in 2005, and entered
into key agreements with bank partners in
Indonesia, Vietnam, Singapore and
Thailand. In Italy, AIGIRS reported strong
growth in investment linked products,
where part of the premium goes into an
investment fund.
The Group Management Division (GMD)
is the primary distribution arm for AIG’s
international employee benefits, credit,
and pension products and services. GMD
continued its strong performance in 2005
by maintaining its leadership position as
either the number one or two provider
of group benefits in Hong Kong, Malaysia,
Singapore, Taiwan and Thailand as meas-
ured by market share, and the number one
issuer of new group life policies in Japan.
GMD covers over 84,000 corporate clients,
including 70 of the U.S. Forbes 100.
tributed to this output, particularly with
the launch of an innovative multi-currency
fixed annuity product that increased new
annuity deposits substantially in its first
year. Also in Japan, AIG Edison Life Insurance
Company (AIG Edison Life) grew premiums at
a double-digit rate in 2005. Since being
acquired in 2003, AIG Edison Life has
been making significant contributions to
AIG’s Japan operation by introducing sev-
eral new and innovative products per year
and steadily improving agency productivity.
Nan Shan Life Insurance Company, Ltd.
(Nan Shan) in Taiwan reported 20 percent
growth in total premiums, deposits and
other considerations for 2005. Nan Shan
garnered several awards for its outstanding
service in the Taiwan market from
Risk Management, Insurance & Finance
magazine. These awards include “The
Most Renowned Insurance Company,”
“The Best Insurance Company,” “The
Best Claim Service” and “The Insurance
Company with the Best Agents.” Nan
Shan has earned the distinction of “The
Insurance Company with the Best Agents”
for 13 consecutive years. Early in 2005,
the Vietnam Ministry of Finance
gave approval for Nan Shan to establish
a representative office in Hanoi.
The Philippine American Life and General
Insurance Company (Philamlife) has been
the premier life insurance organization in
the Philippines for over five decades, con-
sistently ranking number one in premiums,
assets and net income. In 2005, Philamlife
launched its first variable life insurance
product and was named a Platinum
SuperBrand by Reader’s Digest Asia’s
SuperBrands Survey for the second con-
secutive year. Philamlife also was granted
ISO 9001:2000 certification for branch
servicing and re-certification of its product
In the United Kingdom, ALICO
reported excellent growth in operating
income for the year and was named “Best
Specialist Group” in the Individual
Pensions category of Standard & Poor’s
Fund Awards 2005.
In Greece, ALICO ranked first among
foreign-owned life insurers in 2005 in
terms of profits, total insured benefits,
excess interest benefit and productivity.
In Cyprus, Russia, the Slovak Republic
and the Ukraine, ALICO maintained lead-
ing rankings in terms of market share. In
Poland, ALICO earned the “Clients’
Golden Laurel 2005” Award, which recog-
nizes the most valuable brands in the
Polish financial services market. In 2005,
ALICO’s Polish subsidiary, First American-
Polish Life Insurance and Reinsurance
Company, received permission to establish
branch offices in Latvia and Lithuania.
ALICO’s Middle East region continues
to show steady growth. ALICO benefits
from having a leading agency presence
in the Middle East. In Jordan, ALICO is
the top life insurance company in terms of
total life premiums written and total assets.
In Brazil, Unibanco AIG Seguros,
S.A. had strong results for the year. The
majority of ALICO’s profits in Brazil were
generated from retail life and personal
accident products, employee benefits
growth through middle market initiatives,
and growth in its pension and retirement
business.
In Japan, AIG Star Life Insurance Co., Ltd.
had record results, increasing premium,
deposits and other considerations by
approximately 85 percent for the year.
Annuity expansion significantly con-