AIG 2015 Annual Report Download - page 106

ITEM 7 / RESULTS OF OPERATIONS / CONSUMER INSURANCE
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106
PERSONAL INSURANCE
(in millions)
2015 and 2014 Comparison
Personal Insurance net premiums written decreased in 2015 compared to 2014 due to the strengthening of the U.S. dollar
against the Major Currencies. Excluding the effect of foreign exchange, net premiums written increased in 2015 compared to
2014, as the business continued to grow through multiple product and distribution channels. The following paragraphs discuss
the changes in net premiums written on a constant dollar basis, which exclude the effect of foreign exchange.
Accident & Health net premiums written increased in 2015 compared to 2014, primarily due to production increases in
Accident and Health in Japan, partially offset by the decrease in Accident and Health in the U.S., due to continued underwriting
discipline.
Personal Lines net premiums written increased in 2015 compared to 2014. These increases were primarily due to increased
production in personal property business in the U.S. and Japan and in the automobile business in all regions, partially offset by
decreased production of warranty service programs. The increase in the U.S. personal property business in 2015 was
attributable to new business sales and improved retention in the AIG Private Client Group, whereas in Japan the increase was
due to new business sales as a result of the recent increase in new housing starts and heightened demand before the duration
restriction on long-term fire insurance became effective in October 2015. In addition, the increase in U.S. personal property
business in 2015 reflected changes to optimize our reinsurance structure to retain more favorable risks, while continuing to
manage aggregate exposure.
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. The following paragraphs discuss the changes in net premiums written on a constant
dollar basis, which exclude the effect of foreign exchange.