AIG 2014 Annual Report Download - page 115

ITEM 7 / RESULTS OF OPERATIONS / CONSUMER INSURANCE

98
PERSONAL INSURANCE
(in millions)
2014 and 2013 Comparison
Personal Insurance net premiums written decreased in 2014, compared to 2013, primarily due to the impact of foreign
exchange as the U.S. dollar strengthened against the Japanese yen. Excluding the effect of foreign exchange, net premiums
written increased in 2014 compared to 2013 as the business continued to grow through multiple product and distribution
channels, including direct marketing.
A&H net premiums written decreased in 2014 compared to 2013. The decrease was primarily due to our focus on maintaining
underwriting discipline in certain classes of business in the U.S., partially offset by growth in Japan and Latin America.
Personal Lines net premiums written, excluding the effect of foreign exchange, increased in 2014 compared to 2013. The
increase was primarily due to increased rates and improved retention in AIG Private Client Group and continued growth of
automobile business outside of Japan, partially offset by declines in the U.S. warranty service programs.
2013 and 2012 Comparison
Personal Insurance net premiums written decreased in 2013, compared to 2012, primarily due to the impact of foreign
exchange as the U.S. dollar strengthened against the Japanese yen. Excluding the impact of foreign exchange, net premiums
written increased in 2013 compared to 2012 as the business continued to build momentum through multiple distribution
channels.
A&H net premiums written, excluding the effect of foreign exchange, increased slightly in 2013 compared to 2012, primarily
due to our focused strategy to grow sales through the direct marketing distribution channel, individual A&H in Asia Pacific, and
the travel business which continued to increase in most geographies across the globe.
Personal Lines net premiums written, excluding the effects of foreign exchange, increased in 2013 compared to 2012. The
increases were driven by growth in AIG Private Client Group and the warranty service programs, automobile products and the
continued execution of our strategic initiative to grow higher value lines of business. In addition, the impact of excess of loss
ceded premiums and of the catastrophe bond issuances reduced net premiums written by $58 million compared to 2012.