AIG 2009 Annual Report Download - page 72

American International Group, Inc., and Subsidiaries
Premiums and Other Considerations
2009 and 2008 Comparison
Premiums and other considerations decreased in 2009 compared to 2008 primarily due to:
• a reduction of $6.9 billion in 2009 from dispositions, including the sale of the Brazilian operations in 2008, sales
of HSB Group, Inc. (HSB), 21st Century and AIG Life Canada in 2009 and the deconsolidation of Transatlantic
in 2009;
• a decline in Commercial Insurance net premiums written due to reductions in workers’ compensation,
construction, real estate and transportation lines of business;
• a decrease in Foreign General Insurance due to the negative effect of foreign exchange and the sale of the
Brazilian operations in 2008 noted above;
• a decrease in Domestic Life Insurance premiums, primarily due to lower payout annuities and the sale of AIG
Life Canada; and
• a decrease in Foreign Life Insurance & Retirement Services primarily due to lower sales and deposits, the sale
of the Brazilian operations in 2008, the effect of foreign exchange translation, and the effect of equity markets
on investment-linked and annuity products globally.
2008 and 2007 Comparison
Premiums and other considerations increased in 2008 compared to 2007 primarily due to:
• growth in Foreign Life Insurance & Retirement Services resulting from increased production and favorable
foreign exchange rates;
• an increase in Foreign General Insurance due to growth in commercial and consumer lines driven by new
business from both established and new distribution channels, a decrease in the use of reinsurance and favorable
foreign exchange rates; and
• growth in Domestic Life Insurance due to an increase in sales of payout annuities sales and growth in life
insurance business in force.
These increases were partially offset by a decline in Commercial Insurance premiums primarily from lower U.S.
workers’ compensation premiums attributable to declining rates, lower employment levels and increased competition,
as well as a decline in other casualty lines of business.
AIG 2009 Form 10-K 64