AIG 2009 Annual Report Download - page 85

American International Group, Inc., and Subsidiaries
Commercial Insurance Investing Results
Net investment income for Commercial Insurance increased in 2009 compared to 2008 primarily due to
improvement in returns from partnership investments of $691 million. Net investment income in 2008 declined
substantially from 2007 due primarily to losses incurred on partnership investments, which resulted in a year over year
decline in returns from partnerships of $1.8 billion.
Net realized capital losses for Commercial Insurance declined in 2009 compared to 2008 due to lower
other-than-temporary impairments on investments as 2008 results reflected significant other-than-temporary
impairment charges related to the deterioration in the fixed income markets.
See Consolidated Results for further discussion on Net investment income and Net realized capital gains (losses).
Foreign General Insurance Results
The following table presents Foreign General Insurance results:
Percentage Increase/
(Decrease)
Years Ended December 31,
(in millions) 2009 2008 2007 2009 vs. 2008 2008 vs. 2007
Underwriting results:
Net premiums written $12,291 $14,390 $13,051 (15)% 10%
Decrease (increase) in unearned premiums 205 (303) (702) - -
Net premiums earned 12,496 14,087 12,349 (11) 14
Claims and claims adjustment expenses incurred 7,424 7,838 6,243 (5) 26
Change in deferred acquisition costs 11 (33) (227) - -
Other underwriting expenses 5,091 5,235 4,562 (3) 15
Underwriting profit (loss) (30) 1,047 1,771 - (41)
Net investment income 505 625 1,465 (19) (57)
Net realized capital gains (losses) 149 (1,080) (166) - -
Pre-tax income $ 624 $ 592 $ 3,070 5% (81)%
Foreign General Insurance Underwriting Results
Foreign General Insurance Net Premiums Written
The following table presents Foreign General Insurance net premiums written by line of business:
Percentage Increase/
(Decrease)
Years Ended December 31,
(in millions) 2009 2008 2007 2009 vs. 2008 2008 vs. 2007
A&H products $ 3,724 $ 3,907 $ 3,495 (5)% 12%
Specialty lines 2,327 2,463 2,166 (6) 14
Personal lines 2,243 3,169 2,924 (29) 8
Casualty 1,679 1,968 1,726 (15) 14
Marine & Energy 700 771 694 (9) 11
Lloyds 635 623 829 2 (25)
Property 530 569 471 (7) 21
Aviation 261 305 296 (14) 3
Other 192 615 450 (69) 37
Total $12,291 $14,390 $13,051 (15)% 10%
77 AIG 2009 Form 10-K