AIG 2009 Annual Report Download - page 17

American International Group, Inc., and Subsidiaries
Domestic Life Insurance & Retirement Services Operations
AIG’s Domestic Life Insurance & Retirement Services segment, rebranded as SunAmerica Financial Group in
December 2009, is comprised of several life insurance and retirement services businesses that market their products
and services under the brands of American General, AGLA, VALIC, Western National, SunAmerica Retirement
Markets, SunAmerica Mutual Funds, SunAmerica Affordable Housing Partners, FSC Securities, Royal Alliance and
SagePoint Financial. The businesses offer a comprehensive suite of life insurance, retirement savings products and
guaranteed income solutions through an established multi-channel distribution network that includes banks, national,
regional and independent broker-dealers, career financial advisors, wholesale life brokers, insurance agents and a
direct-to-consumer platform.
AIG’s Domestic Life Insurance businesses offer a broad range of protection products, including individual term and
universal life insurance and group life and health products. In addition, Domestic Life Insurance offers a variety of
payout annuities, which include single premium immediate annuities, structured settlements and terminal funding
annuities.
Domestic Retirement Services businesses offer group retirement products and individual fixed and variable
annuities. Certain previously acquired closed blocks and other fixed and variable annuity blocks that have been
discontinued are reported as ‘‘runoff’’ annuities. Domestic Retirement Services also maintains a runoff block of
Guaranteed Investment Contracts (GICs) that were written in (or issued to) the institutional market place prior to
2006.
Results for certain brokerage service, mutual fund, GIC and other asset management activities previously reported
in the Asset Management segment are now included in Domestic Life Insurance & Retirement Services.
Foreign Life Insurance & Retirement Services Operations
AIG’s Foreign Life Insurance & Retirement Services operations include insurance and investment-oriented
products such as whole and term life, investment linked, universal life and endowments, personal accident and health
products, group products, including pension, life and health, and fixed and variable annuities. The Foreign Life
Insurance & Retirement Services products are sold through independent producers, career agents, financial
institutions and direct marketing channels.
AIG’s principal Foreign Life Insurance & Retirement Services operations include ALICO, AIG Star Life, AIG
Edison Life, AIA and Philamlife ,which is now an AIA subsidiary. ALICO is incorporated in Delaware and all of its
business is written outside the United States. ALICO has operations either directly or through subsidiaries in Europe,
including the U.K., Latin America, the Caribbean, the Middle East, and Japan. AIA operates primarily in China
(including Hong Kong), Singapore, Malaysia, Thailand, Korea, Australia, New Zealand, Vietnam, Indonesia and
India. The operations in India are conducted through a joint venture, Tata AIG Life Insurance Company Limited.
Philamlife is the largest life insurer in the Philippines. AIG Star Life and AIG Edison Life operate in Japan.
On October 12, 2009, AIG entered into an agreement to sell its 97.57 percent share of Nan Shan Life Insurance
Company, Ltd. (Nan Shan), for approximately $2.15 billion. As a result of this transaction, Nan Shan qualified as a
discontinued operation and met the criteria for ‘‘held-for-sale’’ accounting in the fourth quarter of 2009. See Note 2 to
the Consolidated Financial Statements for further discussion.
Reinsurance Operations
Chartis subsidiaries operate worldwide primarily by underwriting and accepting risks for their direct account and
securing reinsurance on that portion of the risk in excess of the limit which they wish to retain. This operating policy
differs from that of many insurance companies that will underwrite only up to their net retention limit, thereby
requiring the broker or agent to secure commitments from other underwriters for the remainder of the gross risk
amount.
9 AIG 2009 Form 10-K