AIG 2006 Annual Report Download - page 169

American International Group, Inc. and Subsidiaries
Nan Shan in the Asia internal reporting unit and other operations
2. Segment Information
are included with ALICO, AIG Star Life and AIG Edison Life in the
Continued
Japan and Other reporting unit. Prior period amounts have been
Domestic Brokerage Group (DBG) writes substantially all reclassified to conform to the current period presentation.
classes of business insurance in the U.S. and Canada, accepting AIG’s principal Domestic Life Insurance & Retirement Services
such business mainly from insurance brokers. operations are American General Life Insurance Company
Transatlantic Holdings, Inc. (Transatlantic) subsidiaries offer rein- (AG Life), The United States Life Insurance Company in the City of
surance on both a treaty and facultative basis to insurers in the U.S. New York (USLIFE), American General Life and Accident Insurance
and abroad. Transatlantic structures programs for a full range of Company (AGLA and, collectively with AG Life and USLIFE, the
property and casualty products with an emphasis on specialty risks. Domestic Life Insurance internal reporting unit), AIG Annuity
AIG’s Personal Lines operations provide automobile insurance Insurance Company (AIG Annuity), The Variable Annuity Life
through AIG Direct, a mass marketing operation, Agency Auto Insurance Company (VALIC) and AIG Retirement Services, Inc (AIG
Division and 21st Century Insurance Group (21st Century), as well SunAmerica and, collectively with AIG Annuity and VALIC, the
as a broad range of coverages for high net-worth individuals Domestic Retirement Services internal reporting unit).
through the AIG Private Client Group. American International Reinsurance Company (AIRCO) acts
Mortgage Guaranty operations provide guaranty insurance primarily as an internal reinsurance company for AIG’s insurance
primarily on conventional first mortgage loans on single family operations.
dwellings and condominiums. Life Insurance & Retirement Services is comprised of two major
AIG’s Foreign General Insurance group accepts risks primarily groupings of products and services: insurance-oriented products and
underwritten through American International Underwriters (AIU), a services and retirement savings products and services.
marketing unit consisting of wholly owned agencies and insurance
companies. The Foreign General Insurance group also includes Financial Services: AIG’s Financial Services subsidiaries engage
business written by AIG’s foreign-based insurance subsidiaries. in diversified financial products and services including aircraft and
The Foreign General Insurance group uses various marketing equipment leasing, capital markets transactions, consumer
methods to write both business and consumer lines insurance finance and insurance premium finance.
with certain refinements for local laws, customs and needs. AIU AIG’s Aircraft Leasing operations represent the operations of
operates in Asia, the Pacific Rim, Europe, including the U.K., International Lease Finance Corporation (ILFC), which generates
Africa, the Middle East and Latin America. its revenues primarily from leasing new and used commercial jet
Each of the General Insurance sub-segments is comprised of aircraft to domestic and foreign airlines. Revenues also result
groupings of major products and services as follows: DBG is from the remarketing of commercial jets for its own account, and
comprised of domestic commercial insurance products and services; remarketing and fleet management services for airlines and for
Transatlantic is comprised of reinsurance products and services sold financial institutions.
to other general insurance companies; Personal Lines are comprised AIG’s Capital Markets operations are conducted through AIGFP.
of general insurance products and services sold to individuals; As Capital Markets is a transaction-oriented operation, current and
Mortgage Guaranty is comprised of products insuring against losses past revenues and operating results may not provide a basis for
arising under certain loan agreements; and Foreign General is predicting future per formance.
comprised of general insurance products sold overseas. AIG’s Capital Markets operations derive substantially all their
revenues from hedged financial positions entered in connection
Life Insurance & Retirement Services: AIG’s Life Insurance & with counterparty transactions rather than from speculative trans-
Retirement Services subsidiaries offer a wide range of insurance actions. These subsidiaries participate in the derivatives and
and retirement savings products both domestically and abroad. financial transactions dealer markets conducting, primarily as
Insurance-oriented products consist of individual and group life, principal, an interest rate, currency, equity, commodity, energy
payout annuities (including structured settlements), endowment and credit products business.
and accident and health policies. Retirement savings products Consumer Finance operations include American General Finance
consist generally of fixed and variable annuities. Inc. (AGF) as well as AIG Consumer Finance Group Inc. (AIGCFG). AGF
AIG’s principal overseas Life Insurance & Retirement Services and AIGCFG provide a wide variety of consumer finance products,
operations are American Life Insurance Company (ALICO), Ameri- including non-conforming real estate mortgages, consumer loans,
can International Assurance Company, Limited, together with retail sales finance and credit-related insurance to customers both
American International Assurance Company (Bermuda) Limited domestically and overseas, particularly in emerging markets.
(AIA), Nan Shan Life Insurance Company, Ltd. (Nan Shan), The
Philippine American Life and General Insurance Company (Philam- Asset Management: AIG’s Asset Management operations com-
Life), AIG Edison Life Insurance Company (AIG Edison Life) and prise a wide variety of investment-related services and investment
AIG Star Life Insurance Co. Ltd. (AIG Star Life). In 2006, the major products including institutional and retail asset management,
internal reporting units for the Foreign Life operations were broker-dealer services and institutional spread-based investment
realigned to better reflect the current management structure. business. Such services and products are offered to individuals
PhilamLife and other Life operations were classified as a reporting and institutions both domestically and overseas.
unit in 2005. In 2006, PhilamLife is included with AIA, AIRCO and
Form 10-K 2006 AIG 119