AIG 2010 Annual Report Download - page 102

American International Group, Inc., and Subsidiaries
Chartis International Results
The following table presents Chartis International results:
Percentage Increase/
(Decrease)
Years Ended December 31,
(in millions) 2010 2009 2008 2010 vs. 2009 2009 vs. 2008
Underwriting results:
Net premiums written $14,365 $12,280 $13,288 17% (8)%
(Increase) decrease in unearned premiums (67) 203 (190) - -
Net premiums earned 14,298 12,483 13,098 15 (5)
Claims and claims adjustment expenses incurred 9,353 7,419 7,269 26 2
Underwriting expenses 5,443 5,096 4,870 7 5
Underwriting profit (loss) (498) (32) 959 - -
Investing and other results:
Net investment income 934 502 586 86 (14)
Net realized capital gains (losses) 147 149 (990) (1) -
Gain on sale of properties 669 -- - -
Bargain purchase gain 332 -- - -
Pre-tax income $ 1,584 $ 619 $ 555 156% 12%
Chartis International Underwriting Results
Chartis International Net Premiums Written
The following table presents Chartis International net premiums written by line of business:
Percentage Increase/
(Decrease)
Years Ended December 31,
(in millions) 2010 2009 2008 2010 vs. 2009 2009 vs. 2008
Consumer lines:
Accident & health $ 4,006 $ 3,722 $ 3,828 8% (3)%
Personal lines 3,513 2,232 2,399 57 (7)
Life insurance 334 -- - -
Total consumer lines 7,853 5,954 6,227 32 (4)
Commercial lines:
Casualty 2,257 2,202 2,590 2 (15)
Property 1,423 1,378 1,532 3 (10)
Specialty 2,832 2,746 2,939 3 (7)
Total commercial lines 6,512 6,326 7,061 3 (10)
Total net premiums written $14,365 $12,280 $13,288 17% (8)%
Chartis International net premiums written increased in 2010 compared to 2009 primarily due to:
• the acquisition of Fuji. Beginning on July 1, 2010, Fuji’s net premiums were included in Chartis
International. Fuji’s net premiums written were $1.8 billion in 2010, of which $1.7 billion relates to
Consumer lines and $91 million relates to Commercial lines. In addition, Chartis International’s Life
insurance business included in Consumer lines is produced by Fuji.
• increased stabilization of developed economies after the financial crisis that began in 2008. This increased
stabilization resulted in an improved pricing, increased new business submissions and improved policyholder
persistency in both Consumer and Commercial lines. However, the effects of the improved environment
were partially offset by Chartis International’s decision not to renew a credit card indemnification program
within Specialty business in Commercial lines that did not meet certain profitability targets.
86 AIG 2010 Form 10-K