AIG 2015 Annual Report Download - page 14

ITEM 1 / BUSINESS / CONSUMER INSURANCE
14
Consumer Insurance
Consumer Insurance is focused on achieving improved returns by investing in markets where we can grow profitably and
sustainably. Our strategic plan is aligned with our vision to be our clients’ most valued insurer. We intend to enhance our
operational effectiveness and use of analytics to reduce expenses, increase profitability, and facilitate delivery of our target
customer experience.
Business Strategy
Customer: Through our unique franchise, which brings together a broad portfolio of
retirement, life insurance and personal insurance products offered through multiple
distribution networks, Consumer Insurance aims to provide customers with the
products and services they desire, delivered through the channels they prefer.
Information-Driven Strategy: Utilize customer insight, analytics and the application
of science to optimize customer acquisition, product profitability, product mix, channel
performance and risk management capabilities.
Sharpen Consumer Focus: Invest in areas where Consumer Insurance can grow
profitably and sustainably. Target growth in select markets according to market size,
growth potential, market maturity and customer demographics, and narrow our
footprint in less profitable markets with insufficient scale.
Operational Effectiveness: Simplify processes and enhance operating environments
to increase competitiveness, improve service and product capabilities and facilitate
delivery of our target customer experience.
Investment Strategy: Maintain a diversified, high quality portfolio of fixed maturity
securities that largely matches the duration characteristics of related insurance
liabilities with assets of comparable duration, and pursue selective yield-enhancement
opportunities that meet liquidity, risk and return objectives.
Profitability and Capital Management: Deliver solid earnings through disciplined
pricing, sustainable underwriting improvements, expense reductions and
diversification of risk, and increase capital efficiency within insurance entities to
enhance ROE.