AIG 2005 Annual Report Download - page 41

AIG ■2005 Annual Report 39
In 2005, AIG Consumer Finance Group, Inc.
(CFG) had record results, with strong growth
in operating income. CFG built upon its
leadership presence in Poland by expand-
ing personal loan branches and launching
a new home equity product. AIG Bank
Polska S.A., CFG’s Polish loan financing
unit, won the Laurel Award, which
recognizes the number one financial
institution in the country. In Argentina,
CFG expanded its sales finance business
and, in Mexico, CFG opened its first
branch to offer personal loans, growing to
a total of six branches by year end. In
Asia, the group focused on growing its auto
loans, credit card and personal loan
products. During the year, CFG established
business operations in China to focus on
sales financing.
Imperial A.I. Credit Companies extended
its leadership position as the largest finan-
cier of insurance premiums in North
America. Its life insurance financing busi-
ness, focused on high-net-worth individu-
als, celebrated its 10th anniversary with
uninterrupted growth.
Airbus A350. Both aircraft types reflect
new technology providing maximum fuel
efficiency and minimum environmental
impact.
ILFC continues to enhance its market
leadership position by focusing on global
expansion. During the past year, ILFC
made significant strides in the Middle
Eastern, European and Asian aviation
markets, and is particularly well positioned
for growth in China, where it is estimated
that less than 11 percent of the country’s
1.3 billion population has ever flown on
an aircraft.
AIG’s Capital Markets businesses are
conducted through AIG Financial Products
Corp. and its subsidiaries (AIGFP), which
enter into a broad range of financial deriva-
tives transactions and invest in a wide
range of debt and equity securities. AIGFP
offers its institutional and high-net-worth
clients standard and customized financial
solutions for their corporate finance, finan-
cial risk management and investment
needs. Capital Markets is well regarded in
the industry for its intellectual capital and
its proven track record. It consistently
combines high counterparty credit quality
with market risk lower than its capital mar-
kets peers.
In 2005, Capital Markets’ results were
affected favorably by growth in their credit
derivatives, commodity index and currency-
linked products.
American General Finance, Inc. (AGF)
and its subsidiaries provide loans, retail
financing and other credit-related products
to approximately two million families in
45 states, Puerto Rico and the Virgin
Islands. In 2005, AGF reported strong net
finance receivable growth due primarily to
non-conforming real estate loan volume, a
growing Internet-based business, as well
as the acceleration of several e-commerce
initiatives.
Financial Services
AIG’s Financial Services Group is global in
scope, with diverse businesses that emphasize
efficient use of capital and regularly generate
above average returns in the markets
they serve. The Group achieves significant
competitive advantage from the risk manage-
ment acumen and international client relation-
ships of the AIG companies.
AIG’s Financial Services businesses are
recognized as leaders and innovators in the
markets they serve, and their collective
performance in 2005 again reinforced this
reputation.
International Lease Finance Corporation
(ILFC) leases commercial jet aircraft to 146
airlines spanning the globe. ILFC estimates
that every 15 seconds, one of its aircraft
takes off or lands somewhere in the world.
ILFC benefited from improved market
conditions in 2005, reporting operating
income of $679.5 million – an increase of
5.8 percent for the year. In a high energy
cost environment, ILFC gains a major
competitive advantage by offering the most
advanced fuel-efficient aircraft available.
Another key strength lies in ILFC’s success
in leasing new aircraft well in advance of
delivery. At year-end 2005, ILFC had
leased all planes due for delivery in 2006
and approximately 66 percent of planes
due in 2007. In 2005, ILFC was the first
lessor to order the new Boeing 787, and
one of the first lessors to order the new
Joel L. Epstein
President
AIG Consumer Finance Group, Inc.
William N. Dooley
Senior Vice President
Financial Services
Joseph J. Cassano
President
AIG Financial Products Corp.
Frederick W. Geissinger
President
American General Finance, Inc.
Steven Udvar-Hazy
President
International Lease
Finance Corporation