AIG 2010 Annual Report Download - page 7

AIG 2010 Annual Report 5
franchises that complement our core
insurance businesses.
UGC made important contributions
to our 2010 results. There is no doubt
that being an insurer of rst and
second lien mortgages will continue to
have its ups and downs – a continuing
industry-wide issue – but new busi-
ness is promising. UGC is writing its
highest-quality book of business ever,
and is effectively managing its legacy
business. During 2010, UGC posted its
rst protable quarter in years, proving
that discipline and hard work can make
a difference even in the most challeng-
ing businesses.
ILFC made substantial progress in
2010 to fund its own operations.
Beginning in March, ILFC raised
more than $14 billion during the year
through a variety of funding sources
and other liquidity initiatives, enabling
it to pay off loans from AIG and the
U.S. government. And with the addi-
tion of aviation industry veteran Henri
Courpron as Chief Executive Ofcer,
ILFC has continued to rework its op-
erations, and remains the international
leader in the leasing and remarketing
of commercial jet aircraft to airlines
around the world.
Our People: A Foundation for
Growth
At AIG, we know that our ability to
create shareholder value is inextrica-
bly tied to the ability of our 63,000
employees around the globe to provide
customers with industry-leading
ing relationships with its distribution
partners and has built positive mo-
mentum for continuing sales growth.
SunAmerica Financial Group has now
been reinstated by 14 of the 16 distri-
bution partners
that suspended
sales of its xed
or variable annu-
ity products as a
result of the AIG
crisis. These are
huge wins.
Despite sig-
nicantly lower
individual xed
annuity sales in
2010 due to the
impact of very
low interest rates industry-wide,
SunAmerica Financial Group suc-
ceeded in increasing total sales over
2009 levels. This success highlights the
advantages of our diversied product
portfolio, multi-channel distribution
network, and strong relationships with
producers. Improved sales from life in-
surance, payout annuities, group retire-
ment products, and individual variable
annuities offset the decline in indi-
vidual xed annuity deposits. Addition-
ally, SunAmerica’s Western National
maintained its number one ranking for
xed annuity sales in the bank channel
and is well positioned to capitalize on a
rising interest rate environment.
Also in 2010, we saw signicant prog-
ress in our investments in the valuable
SunAmerica
Financial Group
has now been
reinstated by 14
of the 16 distri-
bution partners
that suspended
sales of its xed
or variable
annuity products
as a result of the
AIG crisis.
products and great customer support.
We know from our experiences over
the past couple of years that even when
AIG was at its lowest reputational
point, at the end of the day, having
AIG people behind the products we
offer was a distinct competitive advan-
tage. It is because of their entrepre-
neurial spirit, deep product experience,
and industry knowledge that our busi-
nesses are poised for growth.
While we lost some business in 2009
because of the cloud hanging over
AIG, in 2010, we saw key indicators
of strength – such as surrender levels
and employee
retention –
return to pre-
crisis levels.
Customers who
stayed with
AIG have told
me personally
that they did so
because of their
relationships
with the people here. They know that
AIG’s people are empowered to make
the decisions necessary to serve as their
true partners.
Clearly, the key to our success has been
our employees. Even in the darkest
days of the crisis, the people who make
up AIG never gave up. Instead, they
persevered and are bringing AIG back
to its former prominence.
At AIG, our
63,000 employ-
ees around the
globe provide
customers with
industry-leading
products and
great customer
support.