AIG 2010 Annual Report Download - page 23

American International Group, Inc., and Subsidiaries
Business Strategy
Chartis leverages its global knowledge and experience in the property and casualty markets by competing in selected
commercial lines such as executive liability/ director’s and officer’s liability (D&O), large risk management programs
and commercial property. In recent years, Chartis has repositioned its Commercial Lines business mix by increasingly
complementing its portfolio of Fortune 1000 and multinational clients with small- and medium-sized enterprises. Its
global geographic footprint and local presence enable Chartis to provide multinational customers with insurance
programs across borders and continents.
Chartis also has a strong and growing consumer business. The consumer business underwrites lines such as
Accident & Health, property, auto and liability for high-net-worth individuals, extended warranty and travel insurance
products and services.
Chartis’ scale and diverse product offerings allow it to pursue cross-selling opportunities among its businesses. For
example, Chartis can provide primary casualty coverage for an account as part of its commercial casualty unit,
underwrite that account’s board of directors through its executive liability business and insure the personal needs of its
management through its Private Client Group as part of its Consumer segment.
Client Approach
Chartis clients benefit from its substantial underwriting capacity, long-term commitment to the markets and clients it
serves and tradition of product innovation and expertise. In 2010, Chartis introduced more than 200 products and
services worldwide.
Capital Deployment
Chartis’ scale and geographical diversification also allow the business to strategically deploy capital to pursue the
more attractive long-term opportunities around the world. Chartis regularly reviews and adjusts its business mix with
the goals of aligning risk profile with risk tolerance and meeting capital management objectives.
Chartis U.S.
The Chartis U.S. companies comprise the largest U.S.-domiciled commercial property and casualty group by 2010
net premiums written. Chartis U.S. distributes its products through independent retail and wholesale brokers, and
writes business on both an admitted and surplus line basis. Chartis U.S. business in the United States and Canada is
conducted through American Home, National Union, Lexington, the market leader in surplus lines, and certain other
property-casualty insurance company subsidiaries of Chartis U.S. Inc.
Chartis U.S.’s business strategy focuses on growing high-margin, less capital intensive lines of business, including
segments of consumer lines, specialty markets and its multinational business, while leveraging its distribution
relationships, innovation, national footprint and extensive product offering.
Chartis U.S. commercial lines include:
Casualty: Includes general liability, commercial automobile liability, excess casualty and workers’ compensation
coverages. Also includes insurance and risk management programs for large corporate customers and other customized
structured insurance products.
Property: Includes industrial and commercial property insurance products, which cover exposures to man-made and
natural disasters.
Specialty: Includes aviation, marine and energy, environmental, kidnap-ransom, export credit and political risk
coverages. It also offers various forms of professional liability insurance including D&O, fidelity, employment practices,
fiduciary liability and errors and omissions coverages. Chartis U.S. also offers products and services to U.S.-based
multinational clients doing business overseas and to foreign corporations doing business in the U.S. as part of its
Worldsource business.
AIG 2010 Form 10-K 7