AIG 2012 Annual Report Download - page 98

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2012 and 2011 Comparison
The Americas net premiums written decreased primarily due to the restructuring of the Commercial Insurance
Casualty book of business primarily in workers’ compensation and loss-sensitive business, slightly offset by rate
increases. These decreases were partially offset by continued growth in Consumer Insurance, which was primarily
attributable to increases to group accident, personal property, and private client group and warranty lines. Additional
premium recognized on the loss-sensitive book of business was $54 million for the year ended December 31, 2012
compared to additional premium of $172 million in the prior year.
Asia Pacific net premiums written increased for the year ended December 31, 2012 primarily due to an increase in
Consumer Insurance reflecting growth of personal property business, group personal accident insurance, and direct
marketing business in Japan. The expansion in Asia Pacific countries outside Japan also continued in the year
ended December 31, 2012, supported by growth in individual personal accident insurance, direct marketing and
personal lines products. Commercial Insurance increased in the region primarily due to organic growth and rate
increases in Property and moderate organic growth in Specialty and Financial lines.
EMEA net premiums written decreased primarily due to the impact of foreign exchange. The continued execution of
underwriting discipline and the reduction in certain casualty lines that did not meet internal performance targets were
offset by rate strengthening initiatives on new and renewal business for Commercial Insurance. Consumer Insurance
experienced modest growth in travel, warranty, and specialty personal lines products while focused on re-building its
direct marketing programs that it previously shared with American Life Insurance Company (ALICO).
2011 and 2010 Comparison
The Americas net premiums written increased slightly as a result of modest growth in Commercial Insurance offset
by a small decrease in Consumer Insurance. The increase in Commercial Insurance was primarily due to the pricing
improvements in Property and Specialty, which was slightly offset by a decrease in Casualty due to the strategic
initiative in workers’ compensation. The decrease in Consumer insurance was primarily due to underwriting actions
taken in private client group to meet performance targets and a decrease in warranty lines new business in the U.S.
and Canada, partially offset by continued growth in travel business and A&H direct marketing in Latin America.
Asia Pacific net premiums written increased as a result of the effect of the full year consolidation of Fuji. Excluding
the effect of the Fuji acquisition, net premium written increased 13 percent. The increase in Commercial Insurance
was due to rate increases in Property, primarily in Japan. Consumer Insurance business in Asia Pacific countries
outside Japan also expanded, supported by growth in nearly all lines of business, particularly individual personal
accident insurance, travel, and auto products.
In EMEA, the increase in Commercial Insurance was primarily related to growth in specialty products in line with our
strategic initiative to grow higher value lines. Excluding the impact of foreign exchange, Consumer Insurance
decreased as the business was focused on rebuilding the direct marketing programs that we previously shared with
ALICO and the non-renewal of certain business to retain underwriting discipline. These decreases were largely offset
by growth in group accident insurance, automobile and specialty personal lines products.
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AIG 2012 Form 10-K 81
ITEM 7 / RESULTS OF OPERATIONS