Implementation and Uses of Economic Capital ... - ERM Symposium
Implementation and Uses of Economic Capital ... - ERM Symposium
Implementation and Uses of Economic Capital ... - ERM Symposium
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<strong>Economic</strong> <strong>Capital</strong> at AIG<br />
By focusing on business applications, AIG’s economic capital modeling<br />
has leapfrogged many <strong>of</strong> the traditional approaches to EC<br />
Later 90's<br />
Banks<br />
Group<br />
Early 00's 2006<br />
European<br />
Insurers<br />
European<br />
Insurers'<br />
disclosures focus<br />
on group level:<br />
. Allianz<br />
. AXA<br />
. Generali<br />
. ING<br />
. Munich Re<br />
. Pru UK<br />
. Swiss Re<br />
2005 2006 2007<br />
Foreign<br />
Life Insurance &<br />
Retirement<br />
Services<br />
Japan <strong>and</strong><br />
Other Asia<br />
ALICO<br />
AIG Edison<br />
AIG Star Life<br />
A6<br />
APLO<br />
AIA China<br />
Nan Shan<br />
Philam<br />
AIRCO Life<br />
AIG Life & AI<br />
Life<br />
Domestic<br />
Domestic<br />
General<br />
DLC DRS<br />
DBG<br />
Personal Lines<br />
UGC<br />
HSB<br />
AGL AIG Annuity 21st Century<br />
AGLA VALIC<br />
Sun America<br />
TRH<br />
AIG Canada (Ex. GIC)<br />
General<br />
Insurance<br />
ILFC AG Finance<br />
AIG CEF AIG CFG<br />
AIG Credit FSB<br />
Wealth AM (AIG<br />
Private Bank)<br />
Retail AM<br />
(SAAMCo, AIG<br />
Advisors)<br />
Important for<br />
<strong>Capital</strong> fungibility<br />
Regulatory capital dialogue<br />
Underst<strong>and</strong>ing business<br />
Performance metrics – “fit for purpose”<br />
Foreign<br />
General<br />
AIG decided very early on<br />
to focus on business<br />
units/legal entities/pr<strong>of</strong>it<br />
centers, not just group.<br />
AIG<br />
<strong>Capital</strong><br />
Markets<br />
AIG FP<br />
Parent<br />
Financial<br />
Services<br />
Comm.<br />
Finance<br />
Consumer<br />
Finance<br />
Asset<br />
Management<br />
Asset<br />
Management<br />
Institutional AM<br />
(AIGGIG)<br />
Spread-Based<br />
Investment<br />
SALIC (GIC)<br />
AIG MIP<br />
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