AIG 2012 Annual Report Download - page 5

■ We said we would return to profitability and recommit to
focusing on customers. 2012 marks the third straight year
of full-year profits. Even with Storm Sandy – the second
largest catastrophic event for AIG in the U.S. – we earned
a profit in 2012. And we have realigned our Property
Casualty and Life and Retirement businesses to be more
streamlined and refocused on seamlessly serving our
commercial and consumer customers.
A closer look at our results in 2012 shows the benefit of the work
we’ve done and the progress we’ve made:
■ AIG Property Casualty reported improved operating income
and continued to experience positive pricing trends. With
$34.4 billion of net premiums written in 2012, AIG Property
Casualty is the number one U.S.-based commercial insurer in
the U.S. and Canada, the largest U.S.-based property
casualty insurer in Europe, and the number one foreign
property casualty insurer in Japan and China.
■ AIG Life and Retirement assets under management grew
significantly in 2012. And, even with interest rates at
continued historic lows, AIG Life and Retirement is a market
leader delivering innovative, compelling retirement products
that provide meaningful, long-term peace of mind to our
customers while making sense for AIG.
■ United Guaranty reported new insurance written of
$37.5 billion for 2012 compared to $18.8 billion in
2011, and has experienced improving credit trends.
■ Our investment portfolio performance improved through the
use of yield enhancements within our risk appetite, including
the purchases of securities acquired through the Federal
Reserve Bank of New York’s auction of Maiden Lane III LLC
assets.
■ Our balance sheet is stronger as a result of the issuance of
unsecured notes and monetization of non-core assets –
including our agreement to sell our largest non-core asset,
International Lease Finance Corporation, our leading aircraft
leasing business, and the sale of our remaining shares of
AIA Group Limited.
While a new era for AIG has begun, our work is not done.
We have more promises to keep.
We are committed to building on our successes and demonstrat-
ing what the new AIG can do. Every day, we are working to
reestablish AIG as the trusted partner of companies, families, and
society. We are focused on expense reduction to cut costs, and
to strengthen our businesses; stronger businesses will improve our
credit ratings and further increase investor interest in AIG. We are
focused on rolling out better technology and new operations plat-
forms to help leverage shared services to make us more efficient,
which in turn will help us cut costs and streamline work processes.
We are committed to developing and retaining our best talent,
promoting diversity, and encouraging and empowering employ-
ees to work together. We are smarter than ever before, making
more informed decisions by using and analyzing the enormous
amount of data we have across the company.
That is the power of the new AIG and our promise for the future.
Yes, we have been met with challenges, but we have met those
challenges together – hitting every major milestone on our jour-
ney. So when we say we are going to do something, you can
have confidence that the people of AIG will get it done.
Bring on tomorrow.
Robert H. Benmosche February 21, 2013
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