AIG 2011 Annual Report Download - page 88

The following table presents Chartis net premiums written by major line of business:
Percentage Change
Years Ended December 31,
(in millions) 2011 2010 2009 2011 vs. 2010 2010 vs. 2009
Commercial Insurance:
Casualty $ 9,819 $ 9,945 $ 10,492 (1)% (5)%
Property 3,928 3,172 3,526 24 (10)
Specialty 3,545 3,342 3,467 6 (4)
Financial lines 4,177 4,007 3,976 4 1
Total Commercial Insurance 21,469 20,466 21,461 5 (5)
Consumer Insurance:
Accident & health 6,006 5,442 5,015 10 9
Personal lines 6,579 5,281 4,081 25 29
Life insurance 756 333 - 127 NM
Total Consumer Insurance 13,341 11,056 9,096 21 22
Other 30 90 96 (67) (6)
Total net premiums written $ 34,840 $ 31,612 $ 30,653 10% 3%
The following table presents the effect of the acquisition of Fuji on Chartis net premiums written:
Years Ended December 31,
(in millions) 2011 2010
Chartis Net Premiums Written:
Commercial Insurance, excluding Fuji $ 21,125 $ 20,381
Consumer Insurance, excluding Fuji 9,713 9,394
Other 30 90
Total net premiums written, excluding Fuji 30,868 29,865
Fuji Commercial Insurance 344 85
Fuji Consumer Insurance 3,628 1,662
Total Fuji net premiums written* 3,972 1,747
Total Commercial Insurance 21,469 20,466
Total Consumer Insurance 13,341 11,056
Total Other 30 90
Total net premiums written $ 34,840 $ 31,612
* For the year ended December 31, 2011, results reflect the effects of the full year of Fuji operations, while the corresponding 2010 period reflects
the effects of Fuji for only two quarters, because Chartis began consolidating Fuji’s operating results on July 1, 2010.
2011 and 2010 Comparison
Chartis’ net premiums written increased in 2011 compared to 2010 due to the Fuji acquisition, the improvement
in foreign currency exchange rates, primarily in the Japanese Yen, and further growth in the strategic higher value
lines of business. These increases were partially offset by the decline in Commercial Casualty business in 2011 and
more specifically the effects of risk management initiatives in workers’ compensation and certain other lines of
business in Chartis. They also reflect Chartis’ continued commitment to maintain price discipline in lines where
market rates are unsatisfactory. Excluding the effects of the Fuji acquisition, Chartis’ net premiums written
increased in 2011 by 3.4 percent compared to 2010.
The year ended December 31, 2011 reflects net premiums written related to Fuji of $4.0 billion compared to
$1.7 billion in 2010. The year ended December 31, 2011 also reflects the effects of overall improvements in ratable
exposures (i.e., asset values, payrolls and sales), general pricing improvement and retrospective premium
adjustments on loss-sensitive contracts.
74 AIG 2011 Form 10-K