AIG 2005 Annual Report Download - page 7
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AIG ■2005 Annual Report 5
constructive dialogue with our regulators.
All of these initiatives reflect “best
practices”, keep us in the forefront of good
corporate governance and enhance AIG’s
leadership role as one of the world’s
largest, strongest and best governed com-
panies. In addition, the Board has created
two new committees to provide a sharper
focus on corporate governance and
corporate social responsibility – the
Regulatory, Compliance and Legal
Committee, and the Public Policy and
Social Responsibility Committee. These
steps, taken together, will strengthen
our corporate governance, increase trans-
parency and improve disclosure.
General Insurance
General Insurance, one of AIG’s
core businesses for decades, had
a good year in 2005 despite the
costs associated with catastrophes, remedi-
ation efforts, and the reserve charge.
General Insurance net premiums written
rose 3.1 percent to $41.87 billion.
Operating income for the year totaled
$1.98 billion before realized capital gains
and losses, compared to $2.95 billion
the previous year.
The Domestic Brokerage Group
(DBG) posted net premiums written
of $23.13 billion and a combined ratio of
113.83, including the effect of catastrophe
losses. Excluding such losses, DBG’s
combined ratio was 105.54, and further
excluding the fourth quarter reserve
charge, it was 96.12. We are the largest
provider of commercial property-casualty
insurance in the United States, with lead-
ing positions in a wide range of products
including directors and officers liability,
workers compensation, environmental
coverages, excess casualty, aviation, equip-
ment breakdown, surplus lines and ocean
marine. Financial strength, claims exper-
tise and responsiveness continue to be
significant differentiators for DBG. The
Group has cross-selling as a key strategy,
as well as expanding distribution into
regional and national brokers.
Our Domestic Personal Lines business
had solid results in 2005, outperforming
industry premium growth. The Private
Client Group had strong results, and
serves nearly one-third of the Forbes “400
Richest Americans.”
Left to right:
Martin J. Sullivan
President and
Chief Executive Officer
Win J. Neuger
Executive Vice President and
Chief Investment Officer
Kristian P. Moor
Executive Vice President
Domestic General Insurance
Edmund S.W. Tse
Senior Vice Chairman
Life Insurance
Steven J. Bensinger
Executive Vice President and
Chief Financial Officer