AIG 2007 Annual Report Download - page 36

34 AIG 2007 Annual Report
Celebrating its 60th year in 2007, The Philippine American Life
and General Insurance Company (Philamlife) continued its tradi-
tion of industry leadership, innovation and dedication to improving
the lives of Filipinos. Philamlife—the largest life insurance company
in the Philippines—was once again named a Platinum Trusted Brand
by Reader’s Digest Asia, making it the only financial institution in the
nation to receive this award for four consecutive years. Philamlife also
became the first company in the world to win the Life Office
Management Association’s Excellence in Education Award 13 times.
In 2007, Philamlife registered excellent new business growth.
The distribution reach of Philamlife for its products remains
unmatched in the country’s life insurance industry. Its network of
7,000 agents is the largest in the country. In addition, the company
focused on alternative distribution channels, including bancassur-
ance, telemarketing and direct marketing.
AIG International Retirement Services (AIGIRS) is committed
to leveraging AIG companies’ presence in local markets worldwide to
build a global retirement services business.
In Asia, an aging population and the concern of individuals
about the adequacy of corporate and government pensions to fund
retirements are driving the need for retirement savings, investment
and income-generating products. AIGIRS introduced an innovative
lifetime guaranteed minimum withdrawal benefit variable annuity
product in Japan and AIG’s first variable annuity product in Korea.
In Europe, AIGIRS benefited from strong sales of its fixed and
variable annuity products in key growth regions.
Operating through AIG’s various foreign life companies and
partners around the globe, the AIG Group Management Division
(GMD) provides group employee benefits, credit insurance, and
pension products and services to corporate customers in more than
80 countries. In 2007, each of GMD’s three core businesses had
strong premium growth. GMD also focused on high-growth new and
As America’s 79 million baby boomers approach retirement, they are creating
a dynamic market for financial services. AIG’s newest national advertising cam-
paign highlights its leadership position in retirement services. The campaign’s
central message resonates among consumers and financial advisors who serve
them: Americans are living longer, healthier lives and are seeking innovative
products and income solutions to ensure that they never outlive their money.
Foreign Life Insurance & Retirement Services
(billions of dollars)
2003 2004 2005 2006 2007
30.0
17.9 23.1 24.2 26.6
22.0
45.2
51.1 56.4
67.5
(a) Represents aggregate business activity presented on a non-GAAP basis.
(b) Includes GAAP premiums and other Life Insurance revenue.
Premiums, Deposits
and Other
Considerations
Premiums and Other
Considerations
(a)
(b)
ALICO Middle East, headquartered in Dubai, continued to
enjoy steady premium and profit growth. It benefited from strong
local presence in the region’s 14 countries and a multiproduct,
multidistribution channel that includes agents, brokers, bancassur-
ance and direct marketing partners.
ALICO’s joint venture in Brazil, Unibanco AIG Seguros S.A.,
recorded strong, double-digit revenue growth. This was achieved
through continuing improvements to products with a focus on
mortality and health insurance, pension and retirement; more cross-
selling; and an expansion of the direct marketing channel.
In 2007, AIG Edison Life Insurance and AIG Star Life
Insurance in Japan made good progress toward completing the
integration of their operations, including moving their respective
headquarters to a single location in Tokyo. They continue to be on
track to emerge in 2009 as a single entity to be known as AIG Life.
This project is a growth strategy designed to merge two mid-tier
insurance companies into a bigger and stronger company that will
be better positioned to compete more effectively in the increasingly
competitive Japanese life insurance market.
Nan Shan Life Insurance Company, Ltd., in Taiwan has
earned the “Quadruple Crown Award” from Risk Management,
Insurance & Finance magazine for the “Most Renowned Company,”
“Best Insurance Company,” “Best Claim Service” and “Insurance
Company with the Best Agents.” It is the only insurance company
ever to win this award. Nan Shan has now won the “Best Agents”
award for 15 years in a row. In 2007, Nan Shan continued to achieve
success with the shift from traditional life to investment linked
product sales, which grew substantially over the prior year. Also in
2007, Nan Shan became the first insurance company to receive
permission from the Taiwan Financial Supervisory Commission
to enter the wealth management business. It also signed a strategic
partnership with SinoPac Holdings, a leading Taiwan-based
financial holding company providing banking and other financial
services with branch/representative offices in China, Southeast
Asia and the United States, to focus on retirement services and
asset management.
REVIEW OF OPERATIONS—LIFE INSURANCE & RETIREMENT SERVICES, CONTINUED