AIG 2006 Annual Report Download - page 25

Annual Report 2006 AIG 23
Life Insurance &
Retirement Services
Serving millions of customers around the
world, AIG’s growing global Life Insurance
businesses make up the most extensive
network of any life insurer. Strategies
for enhancing growth focus on developing
new markets, expanding distribution
channels and broadening product
offerings. AIG has one of the premier
Retirement Services businesses in the
United States. It also has an extensive
international retirement services network
to meet the growing needs of groups and
individuals in countries worldwide.
Foreign Life Insurance &
Retirement Services
AIG’s Foreign Life Insurance & Retirement
Services operations are conducted principally
through the following market-leading
companies:
•American International Assurance Company,
Limited is AIG’s flagship life insurance company
for Southeast Asia and the leading life insurer in
the region. Its extensive network of branches,
subsidiaries and affiliates spans Australia,
Brunei, China, Guam, Hong Kong, India,
Indonesia, Macau, Malaysia, New Zealand,
Singapore, South Korea, Thailand and Vietnam.
Asset Management
AIG’s Asset Management businesses
include institutional and retail asset man-
agement, broker-dealer services, private
banking,and institutional spread-based
investments, as well as the management
of AIG insurance invested assets.
Businesses in the group leverage AIG’s
deep knowledge of markets around the
world and expertise in a wide range of
asset classes.
•AIG Global Investment Group (AIGGIG) manages
equities, fixed income, private equity, hedge
funds of funds and real estate investments for
institutional, individual and high-net-worth
•American Life Insurance Company (ALICO) is
among the largest international life insurance
companies in the world, with operations in more
than 50 countries. ALICO’s operations stretch
from Japan to Europe, the Middle East, Latin
America, South Asia and the Caribbean.
•AIG Star Life Insurance Co., Ltd. and AIG Edison
Life Insurance Company contribute to AIG’s
growing life insurance presence in Japan through
the sale of life, accident and health, and
retirement services products via agents, brokers
and bank partners.
•Nan Shan Life Insurance Company, Ltd. is
Taiwan’s second-largest life insurer.
•The Philippine American Life and General
Insurance Company is the largest and most
profitable life insurance company in the
Philippines.
Domestic Life Insurance &
Retirement Services
In the United States, AIG’s Domestic Life
Insurance & Retirement Services businesses
offer a comprehensive range of life insurance,
annuity, and accident and health products for
financial and estate planning, and wealth trans-
fer.They use a full complement of distribution
channels, including banks, national and regional
brokerage firms, independent financial planning
firms, independent and national marketing
organizations, brokerage general agencies,
independent insurance producers and general
agents, and worksite specialists. The principal
Domestic Life Insurance & Retirement Services
operations include the following:
investors around the world. AIGGIG ranks
among the top six institutional asset managers
in the world.
•AIG Private Bank Ltd., AIG’s Zurich-based private
banking subsidiary, specializes in providing asset
management and private banking services to a
worldwide clientele.
•AIG SunAmerica Asset Management Corp. man-
ages and/or administers retail mutual funds, as
well as the underlying assets of AIG SunAmerica
and AIG VALIC variable annuities sold to individ-
uals and institutional investors throughout the
United States.
•AIG Advisor Group, Inc. broker-dealers provide
abroad range of financial products and support
services to independent financial advisors
serving the retirement planning needs of clients
in the United States.
•AIG American General, one of the fastest growing
major life insurance organizations in the United
States, distributes a broad range of life insurance,
annuity, and accident and health products.
•AIG Annuity Insurance Company is the largest
issuer of fixed annuities in the United States
and the leading provider of annuities sold
through banks.
•AIG VALIC is the nation’s leading provider of
group retirement plans to primary and secondary
educational organizations, the third largest
to healthcare groups and the third largest to
institutions of higher education.
•AIG SunAmerica Retirement Markets, Inc. is one
of the nation’s leading distributors of individual
variable annuities.
’02 ’03 ’04 ’05 ’06
5.55
6.57
7.88
9.06
9.94
Life Insurance & Retirement Services
Operating Income
*
(billions of dollars)
* Before realized capital gains(losses).
’02 ’03 ’04 ’05 ’06
0.99 1.09
1.62
1.99
1.75
Asset Management Operating Income
*
(billions of dollars)
* Excludes the effects of FIN46(R),EITF 04-5
andFAS133.
* Excludes realized capital gains(losses),
other income(deductions),
FIN46(R),EITF 04-5and FAS 133.
2006 Consolidated
Revenues by
Major Business
Segment
*
General Insurance 43.0%
Domestic 32.5%
Foreign 10.5%
Financial Services 8.6%
Life Insurance & Retirement Services 43.9%
Domestic 14.8%
Foreign 29.1%
Asset Management 4.5%