AIG 2015 Annual Report Download - page 71

ITEM 7 / EXECUTIVE OVERVIEW
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Personal Insurance
The need for full life cycle products and coverage, increases in personal wealth accumulation, and awareness of insurance
protection and risk management continue to support the growth of the Personal Insurance industry. Our Personal Insurance
operations focus on group and corporate clients, together with individual customers within national markets. We expect the
demand for multinational cross-boundary coverage and services to increase due to the internationalization of clients and
customers. AIG’s global presence provides Personal Insurance a distinct competitive advantage.
In Japan, the competition for auto insurance has intensified, in part driven by a decline in new car sales and the existence of
fewer major insurers. Growth in property insurance generally reflects increases in new housing starts and heightened demand
before the duration restriction on long-term fire insurance became effective in October 2015. In the U.S., we compete in the
high net worth market and will continue to take advantage of market consolidation and expand our innovative products and
services to distribution partners and clients. Outside of Japan and the U.S., our Personal Insurance operating segment
continues to invest selectively in markets where we believe higher potential for sustainable profitability exists.
Strategic Initiatives
Customer — Strive to be our clients’ most valued insurer. Through our unique franchise, which brings together a broad
portfolio of retirement, life insurance and personal insurance products offered through multiple distribution networks,
Consumer Insurance aims to provide customers with the products and services they desire, delivered through the
channels they prefer.
Information-driven Strategy — Utilize customer insight, analytics and the application of science to optimize customer
acquisition, product profitability, product mix, channel performance and risk management capabilities.
Sharpen Consumer Focus — Invest in areas where Consumer Insurance can grow profitably and sustainably. Target
growth in select markets according to market size, growth potential, market maturity and customer demographics and
narrow our footprint in less profitable markets with insufficient scale.
Operational Effectiveness — Simplify processes and enhance operating environments to increase competitiveness,
improve service and product capabilities and facilitate delivery of our target customer experience.
Investment Strategy — Maintain a diversified, high quality portfolio of fixed maturity securities that largely matches the
duration characteristics of the related insurance liabilities, and pursue selective yield-enhancement opportunities that meet
liquidity, risk and return objectives.
Profitability and Capital Management — Deliver solid earnings through disciplined pricing, sustainable underwriting
improvements, expense reductions and diversification of risk, and increase capital efficiency within insurance entities to
enhance return on equity.
Customer
In striving to be our clients’ most valued insurer, we have implemented initiatives to better serve our target segments. Our
focus on ease of doing business for consumers and producers includes enhancements to our platforms and services. We are
working to expand relationships with key distribution partners to offer our products across multiple distribution channels.