AIG 2011 Annual Report Download - page 96

Consumer Insurance
Consumer Insurance Results
The following table presents Consumer Insurance results:
Percentage Change
Years Ended December 31,
(in millions) 2011 2010 2009 2011 vs. 2010 2010 vs. 2009
Underwriting results:
Net premiums written $ 13,341 $ 11,056 $ 9,096 21% 22%
Increase in unearned premiums (17) (97) (41) 82 (137)
Net premiums earned 13,324 10,959 9,055 22 21
Claims and claims adjustment expenses incurred 8,797 6,686 5,315 32 26
Underwriting expenses 4,857 4,171 3,690 16 13
Underwriting profit (loss) (330) 102 50 NM 104
Net investment income 354 301 351 18 (14)
Pre-tax income $24$ 403 $ 401 (94)% -%
Consumer Insurance Net Premiums Written
2011 and 2010 comparison
Consumer Insurance net premiums written increased in 2011 compared to 2010 primarily due to the effect of
including Fuji results for a full year, the improvement in foreign currency exchange rates, primarily the Japanese
Yen, and further growth in the strategic higher value lines of business. Excluding the effects of the Fuji
acquisition, Consumer Insurance net premiums written increased 3 percent in 2011, primarily due to:
• A&H net premiums written increased by approximately 10 percent. Excluding the effects of the Fuji
acquisition, A&H net premiums written increased by approximately seven percent primarily as a result of the
execution of Chartis’ growth strategies in key lines and the effect of foreign exchange. The Far East region
continued to implement favorable marketing programs and benefited from rate increases implemented in
2010. Growth was also demonstrated in key geographic markets such as Asia Pacific, including China,
EMEA, including Continental Europe, and Israel, and in targeted areas, such as direct marketing and travel
insurance.
• Personal Lines net premiums written increased by approximately 25 percent. Excluding the effects of the Fuji
acquisition, Personal Lines net premiums decreased one percent, primarily as a result of Chartis’ decisions to
not renew certain programs in the U.S. and Canada region that did not meet performance targets. Personal
Lines continued to grow in key markets, including Japan and Latin America and in key lines, such as
specialized personal lines products.
• Life net premiums written increased primarily as a result of the full year effect of the Fuji acquisition and as
a result of the execution of new business strategies at Fuji Life Insurance Company Ltd.
2010 and 2009 comparison
Consumer Insurance net premiums written increased in 2010 compared to 2009 primarily due to the acquisition
of Fuji.
82 AIG 2011 Form 10-K