AIG 2007 Annual Report Download - page 5

AIG 2007 Annual Report 3
BusinessWeek named AIG one
of the 100 Best Global Brands,
a testament to the brand’s growing
value in markets all over the world.
overall financial condition, although it is
possible that realized losses could be mate-
rial to AIG’s consolidated results of oper-
ations for an individual reporting period.
Full year results also include pretax net
realized capital losses of $3.59 billion.
Consolidated assets increased in 2007
to $1.061 trillion, up from $979.41 billion
in 2006. At year end, book value per share
stood at $37.87, down from $39.09
at the end of 2006. Shareholders’ equity
also declined to $95.80 billion from
$101.68 billion at the end of 2006. AIG
recorded total revenues during the year of
$110.06 billion, 2.9 percent below 2006
revenues. Revenues, shareholders’ equity
and book value per share were adversely
affected by realized capital losses and
the net unrealized market valuation loss
recorded by AIGFP.
2007 Highlights
We overcame the challenges of 2007 to
make progress on several fronts. We were
pleased when the China Insurance
Regulatory Commission approved our
application to establish a Wholly Owned
Foreign Enterprise (WOFE) under the
name AIG General Insurance Company
China Limited (AIG General). Soon
after, we opened a new AIG General
headquarters in Shanghai and consoli-
dated our Chinese general insurance
operations there to capture efficiencies
and provide a platform to establish new
branches in other areas of China. AIA
China continued to expand on the
provincial licenses granted in 2006,
opening 29 new sales and service centers
in 2007, for a total of 104 centers in 19
cities. In addition, AIG InvestmentsSM
received approval to set up a representative
office in Tianjin, our first operation in
China’s third-largest city.
In Korea, we obtained preliminary
approval from the Financial Supervisory
Service to offer mortgage reinsurance
through AIG United Guaranty Insurance
(Asia) Limited. We signed a memoran-
dum of understanding with the Bank
of Investment and Development of
Vietnam for the expansion of our business
cooperation agreement in that rapidly
growing country. The agreement will
allow us to expand beyond our existing
relationship in life insurance to include
a wide range of areas such as general
insurance, consumer finance, asset
management and banking services.
We are rapidly building a consumer
finance franchise in India to complement
our Tata AIG Life and General Insurance
partnership. In 2007, we established a
presence in housing finance and consumer
durable finance. In addition, we are
strengthening our presence in asset man-
agementand real estate development.
In the Middle East, American Life
Insurance Company (ALICO) received
a license to operate a retail life insurance
business in the Qatar Financial Centre.
ALICO is the first life insurance company
to receive an expanded license, which is
in addition to a wholesale life insurance
license first obtained in February 2007.
Our acquisition of the German
insurer Württembergische und Badische
Versicherungs-AG (WüBa) reaffirmed our
commitment to growth in the German
marketplace, and greatly enhanced
our insurance offerings to small and
midsize companies.
We advanced our strategy in the auto
insurance sector when we acquired the out-
standing shares of 21st Century Insurance
Group that we did not already own.
In 2007, AIG received approval from
the China Insurance Regulatory
Commission to establish a wholly
owned general insurance subsidiary
in China(pictured, Shanghai skyline).
The AIG Private Client Group’s
Wildfire Protection Unit®uses the
latest fire-mitigation technology to
help protect policyholders’ proper-
ties in the western United States.