AIG 2008 Annual Report Download - page 261

General Insurance premiums written and earned were as follows:
2008 2007 2006
Years Ended December 31,
(In millions)
Premiums written:
Direct ......................................... $ 49,422 $ 52,055 $ 49,609
Assumed ....................................... 7,239 6,743 6,671
Ceded ......................................... (11,427) (11,731) (11,414)
Total ............................................ $ 45,234 $ 47,067 $ 44,866
Premiums earned:
Direct ......................................... $ 50,110 $ 50,403 $ 47,973
Assumed ....................................... 7,336 6,530 6,449
Ceded ......................................... (11,224) (11,251) (10,971)
Total ............................................ $ 46,222 $ 45,682 $ 43,451
For the years ended December 31, 2008, 2007 and 2006, reinsurance recoveries, which reduced loss and loss
expenses incurred, amounted to $8.4 billion, $9.0 billion and $8.3 billion, respectively.
Life Reinsurance
Life reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to
these treaties are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned
over the contract period in proportion to the protection provided. Amounts recoverable from life reinsurers are
estimated in a manner consistent with the assumptions used for the underlying policy benefits and are presented as a
component of reinsurance assets.
Life Insurance & Retirement Services premiums were as follows:
2008 2007 2006
Years Ended December 31,
(In millions)
Gross premiums .................................... $39,153 $34,585 $32,247
Ceded premiums ................................... (1,858) (1,778) (1,481)
Premiums ........................................ $37,295 $32,807 $30,766
Life Insurance recoveries, which reduced death and other benefits, approximated $908 million, $1.1 billion
and $806 million, respectively, for the years ended December 31, 2008, 2007 and 2006.
Life Insurance in force ceded to other insurance companies was as follows:
2008 2007 2006
At December 31,
(In millions)
Life Insurance in force ceded .......................... $384,538 $402,654 $408,970
Life Insurance assumed represented less than 0.1 percent, 0.1 percent and 0.1 percent of gross Life Insurance in
force at December 31, 2008, 2007 and 2006, respectively, and Life Insurance & Retirement Services premiums
assumed represented 0.2 percent, 0.1 percent and 0.1 percent of gross premiums and other considerations for the
years ended December 31, 2008, 2007 and 2006, respectively.
AIG’s Domestic Life Insurance and Domestic Retirement Services operations utilize internal and third-party
reinsurance relationships to manage insurance risks and to facilitate capital management strategies. Pools of highly-
AIG 2008 Form 10-K 255
American International Group, Inc., and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)