AIG 2015 Annual Report Download - page 68

ITEM 7 / EXECUTIVE OVERVIEW
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Institutional Markets
Institutional Markets is expected to continue growing its assets under management from the structured settlement business
and the stable value wrap business, as well as from disciplined growth through the pursuit of select opportunities related to
pension buyouts. Volatility in the earnings of our alternative investment portfolio will continue to affect Institutional Markets’
results.
Strategic Initiatives
Customer — Strive to be our clients’ most valued insurer by offering innovative products, superior service and access to
an extensive global network.
Sharpen Commercial Focus — Achieve ROE in excess of target across our businesses primarily through improvements
in our loss ratio. Improve our business portfolio through risk selection by using enhanced data, analytics and the
application of science to deliver superior risk-adjusted returns. Exit or remediate targeted sub-segments of
underperforming portfolios that do not meet our risk acceptance or profitability objectives.
Drive Efficiency — Reorganize our operating model into “modular”, more self-contained business units to enhance
decision making, transparency and accountability, driving performance improvement and strategic flexibility over time;
increase capital fungibility and diversification, streamline our legal entity structure, optimize reinsurance, improve tax
efficiency and reduce expenses.
Invest to Grow — Grow our higher-value businesses while investing in transformative opportunities, continuing initiatives
to modernize our technology and infrastructure, advancing our engineering capabilities, innovating new products and client
risk services and delivering a better client experience.
Customer
Our vision is to be our clients’ most valued insurer. We expect that investments in underwriting, claims services, client risk
services, science and data will continue to differentiate us from our peers and drive a superior client experience. For example,
during the fourth quarter, AIG increased global commercial property limits to $2.5 billion per occurrence from $1.5 billion, in response
to increased demand for capacity and services from clients managing complex global risks and increasing property values. This
increase was the result of recent investments in engineering and analytical capabilities, which in turn allowed us to secure meaningful
support from a panel of long-standing reinsurers.
Sharpen Commercial Focus
Exit or remediate targeted underperforming portfolios
Commercial Insurance is focused on the products where we have the most potential to deliver value. Experience and
emerging data indicate that there are consistently under-performing sub-segments of our business. We will grow where we
see opportunity and we will exit or remediate underperforming portfolios. We will continue to further enhance our risk selection
process and refine technical pricing through enhanced tools and analytics to achieve this goal.