AIG 2005 Annual Report Download - page 95

AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
exercised in attempting to determine reserve adequacy for these Life Insurance & Retirement Services operations presented on
claims based simply on this survival ratio. a major product basis for 2005, 2004 and 2003 were as
follows:
AIG’s survival ratios for asbestos and environmental claims,
separately and combined were based upon a three-year (in millions) 2005 2004(a) 2003(a)
average payment. These ratios for the years ended Decem-
GAAP Premiums:
ber 31, 2005, 2004 and 2003 were as follows:
Domestic Life:
Life insurance $ 2,108 $ 1,888 $ 1,751
Gross Net
Home service 801 812 834
Group life/health 1,012 1,128 1,046
2005
Payout annuities
(b)
1,473 1,484 1,272
Survival ratios:
Total 5,394 5,312 4,903
Asbestos 15.9 19.8
Domestic Retirement Services:
Environmental 6.9 6.2
Group retirement
Combined 13.0 14.2
products 351 313 250
2004
Individual fixed
Survival ratios:
annuities 100 59 53
Asbestos 10.7 13.5
Individual variable
Environmental 6.5 6.8
annuities 467 407 331
Individual fixed
Combined 9.1 10.5
annuities —
2003
runoff
(c)
72 80 86
Survival ratios:
Total 990 859 720
Asbestos 4.7 4.5
Total Domestic 6,384 6,171 5,623
Environmental 4.7 4.1
Combined 4.7 4.3 Foreign Life:
Life insurance 15,631 14,938 13,204
Personal accident &
Life Insurance & Retirement Services Operations
health 5,002 4,301 3,126
Group products
(d)
1,925 2,215 1,267
AIG’s Life Insurance & Retirement Services subsidiaries offer a
Total 22,558 21,454 17,597
wide range of insurance and retirement savings products both
Foreign Retirement
domestically and abroad. Insurance-oriented products consist of
Services:
individual and group life, payout annuities, endowment and
Individual fixed
accident and health policies. Retirement savings products
annuities 361 395 255
consist generally of fixed and variable annuities. See also
Individual variable
Note 2 of Notes to Consolidated Financial Statements.
annuities 97 68 21
Domestically, AIG’s Life Insurance & Retirement Services
Total 458 463 276
operations offer a broad range of protection products, including
Total Foreign 23,016 21,917 17,873
life insurance, group life and health products, including
Total GAAP Premiums $ 29,400 $ 28,088 $ 23,496
disability income products and payout annuities, which include
Net investment income:
single premium immediate annuities, structured settlements and
Domestic Life:
terminal funding annuities. Home service operations include an
Life insurance $ 1,411 $ 1,287 $ 1,179
array of life insurance, accident and health and annuity
Home service 605 608 616
products sold through career agents. In addition, home service
Group life/health 142 123 121
Payout annuities 912 801 699
includes a small block of run-off property and casualty
coverage. Retirement services include group retirement prod-
Total 3,070 2,819 2,615
ucts, individual fixed and variable annuities sold through
Domestic Retirement Services:
banks, broker dealers and exclusive sales representatives, and
Group retirement
products 2,233 2,201 2,055
annuity runoff operations which include previously-acquired
Individual fixed
‘‘closed blocks’’ and other fixed and variable annuities largely
annuities 3,393 3,100 2,567
sold through distribution relationships that have been
Individual variable
discontinued.
annuities 217 239 239
Overseas, AIG’s Life Insurance & Retirement Services
Individual fixed
operations include insurance and investment-oriented products
annuities —
runoff
(c)
1,046 1,076 1,266
such as whole and term life, investment linked, universal life
and endowments, personal accident and health products, group
Total 6,889 6,616 6,127
products including pension, life and health, and fixed and
Total Domestic 9,959 9,435 8,742
variable annuities. (continued)
AIG m Form 10-K 43