AIG 2007 Annual Report Download - page 119

American International Group, Inc. and Subsidiaries
Foreign Life Insurance & Retirement Services Results
Foreign Life Insurance & Retirement Services results on a sub-product basis for 2007, 2006 and 2005 were as follows:
Premiums and Net Net Realized
Other Investment Capital Gains Total Operating
(in millions) Considerations Income (Losses) Revenues Income
2007
Life insurance $ 16,630 $ 7,473 $ 85 $24,188 $ 3,898
Personal accident 6,094 354 (3) 6,445 1,457
Group products 2,979 753 (76) 3,656 263
Individual fixed annuities 438 2,283 (171) 2,550 548
Individual variable annuities 460 986 (22) 1,424 31
Total $ 26,601 $ 11,849 $ (187) $38,263 $ 6,197
2006
Life insurance(a) $ 15,732 $ 5,937 $ 574 $22,243 $ 4,247
Personal accident 5,518 285 55 5,858 1,459
Group products 2,226 648 47 2,921 450
Individual fixed annuities 400 2,027 31 2,458 580
Individual variable annuities 290 861 — 1,151 145
Total $ 24,166 $ 9,758 $ 707 $34,631 $ 6,881
2005
Life insurance $ 15,643 $ 4,884 $ 94 $20,621 $ 3,195
Personal accident 5,002 255 (30) 5,227 1,292
Group products 1,925 613 (9) 2,529 322
Individual fixed annuities 361 1,728 29 2,118 398
Individual variable annuities 186 1,238 — 1,424 99
Total $ 23,117 $ 8,718 $ 84 $31,919 $ 5,306
Percentage Increase/(Decrease) 2007 vs. 2006:
Life insurance 6% 26% (85)% 9% (8)%
Personal accident 10 24 — 10 —
Group products 34 16 — 25 (42)
Individual fixed annuities 10 13 — 4 (6)
Individual variable annuities 59 15 — 24 (79)
Total 10% 21% —% 10% (10)%
Percentage Increase/(Decrease) 2006 vs. 2005:
Life insurance 1% 22% —% 8% 33%
Personal accident 10 12 — 12 13
Group products 16 6 — 16 40
Individual fixed annuities 11 17 7 16 46
Individual variable annuities 56 (30) — (19) 46
Total 5% 12% —% 8% 30%
(a) Includes the effect of an out of period UCITS adjustment in 2006, which increased net investment income by $237 million and operating income by
$166 million.
AIG transacts business in most major foreign currencies and considerations for the years ended December 31, 2007 and
therefore premiums and other considerations reported in 2006:
U.S. dollars vary by volume and from changes in foreign currency 2007 2006
translation rates. The following table summarizes the effect of
Growth in original currency* 7.6% 6.5%
changes in foreign currency exchange rates on the growth of the
Foreign exchange effect 2.5 (2.0)
Foreign Life Insurance & Retirement Services premiums and other
Growth as reported in U.S. dollars 10.1% 4.5%
* Computed using a constant exchange rate each period.
AIG 2007 Form 10-K 65