AIG 2007 Annual Report Download - page 9

AIG 2007 Annual Report 7
AIG’s life insurance network is the
most extensive of any life insurance
organization. Our life businesses abroad
include market-leading companies such
as American International Assurance
Company, Limited, consistently rated
one of the most trusted brands in
Southeast Asia. ALICO operates in
more than 50 countries, with a strong
and growing presence in Japan, Europe,
the Middle East and Latin America.
The Philippine American Life and General
Insurance Company observed its 60th
anniversary and remains the premier
life insurer in the Philippines. Our
Taiwan life insurance unit, Nan Shan
Life Insurance Company,Ltd., once
again received recognition throughout
the year for its quality customer service.
In the United States, AIG American
General enhanced its position as a lead-
ing life insurer by introducing more than
25 new or revised products and riders in
2007. Its acquisition of direct marketer
Matrix Direct, Inc.,helped the company
expand beyond its traditional distribution
methods. AIG American General contin-
ues to place significant emphasis on
cross-selling efforts by developing coordi-
nated offerings with AIG Investments,
DBG and AIG Retirement.
Domestic retirement services opera-
tions continue to address the growing
need for asset accumulation, protection
and guaranteed income solutions. AIG
Annuity Insurance Company, the largest
issuer of fixed annuities in the United
States, responded to difficult market con-
ditions by launching new products and
by expanding distribution. AIG VALIC,
now operating as AIG Retirement,
achieved double-digit deposit growth and
a steady increase in fee income and assets
under management. AIG SunAmerica,
a leader in variable annuities, achieved
record fee income and assets under man-
agement by responding to the demand
for “income for life” solutions. The
launch of the “Live Longer Retire
Stronger” national advertising campaign
boosted recognition of AIG’s retirement
services capabilities while supporting our
global branding initiative.
Financial Services
The Financial Services group recorded
an operating loss of $9.52 billion for 2007
primarily due to the unrealized market
valuation losses related to the AIGFP
super senior credit default swap portfolio.
We continue to believe that AIGFP
will not realize significant losses from
this derivative business, which insures
against the default of certain securities.
Since its creation, AIGFP has been a
strong performer and is an important
component of AIG’s diverse portfolio
of businesses.
We continue to see good potential
across all product segments of our
Financial Services group. Together,
they diversify our revenues and comple-
ment our core insurance operations.
AIG was named one of “The Global
100” most sustainable companies
at the World Economic Forum in
Davos, Switzerland. AIG is develop-
ing environmentally sustainable
properties, such as Spruce Peak at
Stowe, Vt.,developed by AIG Global
Real Estate.
AIG’s International Lease Finance
Corporation (ILFC) has the largest
aircraft fleet in the world, as
measured by fleet value, and is
the largest single customer to date
for the new Boeing 787 Dreamliner.
The launch of the“Live
Longer Retire Stronger”
national advertising
campaign boosted
recognition of AIG’s
retirement services
capabilities while
supporting our global
brandinginitiative.