AIG 2006 Annual Report Download - page 5

AIG 2006 Annual Report 3
We achieved a key goal in 2006—stabilizing AIG’s financial
ratings. All of the major ratings agencies have revised their outlook
on AIG and our core insurance subsidiaries to stable from negative.
Overall, AIG’s ratings continue to be among the highest of any
insurance and financial services organization in the world.Customers
and shareholders can be assured that enhancing AIG’s financial
strength and preserving its current ratings will continue to be an
overriding priority.
Putting Strategies Into Action
The theme of this year’s report, Putting Strategies Into Action,
describes how we are transforming our formidable attributes into
specific strategies and positive business results. Last year, I empha-
sized priorities such as staying customer focused; continuing to
expand distribution and geographic reach; controlling costs; identi-
fying new business opportunities, acquisitions and strategic
alliances; developing new products; and investing for growth.
In 2006, we saw those priorities bear fruit.
•We made several acquisitions that complement our existing
businesses and give us a stronger presence in important mar-
kets. Our acquisition of Central Insurance in Taiwan widens our
global presence in property-casualty insurance, and our acquisi-
tion of Ocean Finance in the United Kingdom gives us added
prominence in the consumer finance business.
•We expanded in growing markets like China. We secured licens-
es to offer group insurance throughout our China operations
and to offer both life and general insurance in Guangdong
province and life insurance in Jiangsu province, two of the top
three Chinese provinces in terms of total economic activity.
•We received regulatory approval from the Reserve Bank of India
to operate a wholly owned non-bank finance company that will
serve as a platform to build our asset management and con-
sumer finance franchise. We believe these businesses will com-
plement our Tata AIG Life and General Insurance joint ventures.
•Our Foreign General Insurance group set up operations in Dubai
to expand our presence in the Middle East, Mediterranean and
South Asia region. As part of this effort we also entered the
Islamic Shariah-compliant market with the launch of a new
regional company,AIG Takaful, headquartered in Bahrain. The
market for Shariah-compliant insurance and financial products is
underserved and we believe that we can meet the needs of that
market better than any other company.
•We announced key strategic investments in high-quality entities
like Kinder Morgan, London City Airport and P&O Ports North
America. These investments demonstrate our determination to
identify quality opportunities to build value and strength for our
policyholders and investors.
•We continued AIG’s tradition of innovation, launching dozens of
new products during the year,including 12 products in 12
months through our AIG Product Development area, a unit with-
out peer in the insurance industry.
With a presence in more than 130 countries and jurisdictions,
AIG is truly a global company. Building our brand around the world
supports our continued growth. That is one reason we launched a
major sponsorship initiative with Manchester United Football Club,
perhaps the best-known sports franchise in the world. It is already
apparent that recognition of the AIG brand is increasing quickly,and
we are actively pursuing ways to leverage this powerful marketing
tool to drive business growth in many AIG markets around the world.
Annual Report 2006 AIG 3
Martin J. Sullivan
President and
Chief Executive Officer