AIG 2010 Annual Report Download - page 29

American International Group, Inc., and Subsidiaries
For further discussion regarding net loss reserves, see Management’s Discussion and Analysis of Financial
Condition and Results of Operations — Results of Operations — Segment Results — Chartis Operations —
Liability for Unpaid Claims and Claims Adjustment Expense.
SunAmerica Operations
SunAmerica offers a comprehensive suite of products and services to individuals and groups including term life,
universal life, accident and health (A&H), fixed and variable deferred annuities, fixed payout annuities, mutual
funds and financial planning. SunAmerica offers its products and services through a diverse, multi-channel
distribution network that includes banks, national, regional and independent broker-dealers, affiliated financial
advisors, independent marketing organizations, independent and career insurance agents, structured settlement
brokers, benefit consultants and direct-to-consumer platforms.
The SunAmerica segment has two operating segments: Domestic Life, which focuses on mortality-and morbidity-
based protection products, and Domestic Retirement Services, which focuses on investment, retirement savings and
income solutions.
Business Strategy
SunAmerica’s strategy is to increase sales of its products and services in a disciplined manner that drives
consistent, profitable earnings growth and efficient use of capital. To do so, SunAmerica will seek to take
advantage of the growing need for insurance solutions to help Americans achieve their protection, investment,
retirement savings and retirement income goals. With its comprehensive platform of products and services offered
through a diverse multi-channel distribution network, SunAmerica is well positioned to help a wide array of
customers meet their goals. SunAmerica plans to further expand its distribution network by adding more
distribution firms, increasing the number of individual agents and financial advisors who sell its products and
seeking to increase the productivity of those agents and advisors already selling its products — especially those in
its affiliated group of career and independent agents and financial advisors. SunAmerica will pursue a disciplined
approach to pricing, product feature development, risk management, asset/liability management and expense
control. SunAmerica will work to enhance operational efficiencies and service levels through prudent investments
in technology, leveraging resources and enhancing utilization of lower cost operations centers.
Domestic Life
SunAmerica’s Domestic Life operations are conducted through the American General business unit:
American General is a leading provider of individual term and universal life insurance solutions to middle-
income and high-net-worth customers. Primary products include term, universal and whole life insurance, A&H,
fixed and indexed deferred annuities, fixed payout annuities, private placement variable annuities, structured
settlements, terminal funding, corporate-owned life insurance, bank-owned life insurance and group benefits.
American General distributes its products through independent marketing organizations, independent and career
insurance agents, structured settlement brokers, benefit consultants and direct-to-consumer platforms, including its
wholly owned Matrix Direct platform.
Domestic Retirement Services
SunAmerica’s Domestic Retirement Services operations consist of five business units:
VALIC is a leading provider of defined contribution retirement savings plans sponsored by education,
not-for-profit and government organizations. Primary products include fixed and variable group annuities, and
group mutual funds. VALIC also offers group administrative and compliance services, and individual annuity and
mutual fund products. VALIC utilizes career and independent financial advisors to provide enrollment support
and comprehensive financial planning services.
AIG 2010 Form 10-K 13