2007 Annual Report - AIG.com

More documents

Recommendations

Info

It is not enough for our shareholders merely to earn a steady return; we want you to earn superior returns and to be proud that you invest in AIG. In January 2008, the Board of Directors elected Stephen F. Bollenbach a director. Steve recently retired as Co-Chairman and Chief Executive Officer of Hilton Hotels Corporation, and possesses deep experience in managing complex global businesses. We look forward to his contributions. 2008 Outlook and Priorities We harbor no illusions about the challenges ahead in 2008. The U.S. residential housing market is expected to remain weak throughout the year. Uncertainty persists about credit markets and the U.S. economy in general, and competition is increasing in many of our markets. However, while challenges limit some opportunities, they create others. These headwinds may require us to tack a different course, but we expect to achieve success nevertheless. Our five-year goal is to grow adjusted earnings per share by an average of 10 to 12 percent annually, and a significant portion of management compensation is linked to the achievement of this goal. We are confident that we have the right strategies and resources to succeed. AIG’s financial strength is formidable by any measure, and our capital position is solid. We have established, well-run businesses in every corner of the globe. We must remain disciplined in our underwriting, refusing to chase rates down in softening markets. We must continually enhance distribution and improve cost efficiency. Yet, we will invest where we need to invest, especially to build out areas of infrastructure that are critical to growth. We will conduct our business responsibly, working constructively with regulators, minimizing our impact on the environment and cultivating a diverse workforce that acts in harmony with our core values. It is not enough simply to profit from our transactions with customers; we want them to manage risk effectively and to succeed in their endeavors. It is not enough to thrive in the markets where we operate; we want those markets to grow and produce wealth and opportunity for everyone in them. It is not enough for our employees simply to earn a living; we also want them to be personally satisfied in the work they do. And it is not enough for our shareholders merely to earn a steady return; we want you to earn superior returns and to be proud that you invest in AIG. AIG is a remarkable company, thanks to the support of many. I would like to thank the Board of Directors for its wise counsel; our customers and business partners for their loyalty; all of our dedicated employees around the world, who truly make AIG the great company that it is; and you, our shareholders, for your support and confidence in investing in AIG. Sincerely, Martin J. Sullivan President and Chief Executive Officer March 14, 2008 10 AIG 2007 Annual Report
WHAT WE SEE The ability to see and seize opportunities in the markets we serve has always differentiated AIG from its peers. Where others may see little or no potential, we see new ways to deliver solutions to our 74 million customers worldwide. AIG has many strengths in markets around the world. Our 116,000 employees and over 700,000 agents, brokers and sales representatives strive to exceed client expectations with market-leading products and services. In the following pages, we share with you, our shareholders, what we see and what we do every day to help our clients achieve success—in both local and global markets. AIG 2007 Annual Report 11
Page 1 and 2: AMERICAN INTERNATIONAL GROUP, INC.
Page 3 and 4: FINANCIAL HIGHLIGHTS (in millions,
Page 5 and 6: overall financial condition, althou
Page 7 and 8: Group Executive Committee We are ad
Page 9 and 10: AIG’s life insurance network is t
Page 11: We have also begun to address the e
Page 15 and 16: The Major Accounts Practice within
Page 17 and 18: Around the world, the middle class
Page 19 and 20: WE SEE GROWTH OPPORTUNITIES IN EMER
Page 21 and 22: To grow the strength of the AIG glo
Page 23 and 24: Since 2003, the AIG Disaster Relief
Page 25 and 26: RESPECT Respect encompasses how we
Page 27 and 28: Life Insurance & Retirement Service
Page 29 and 30: Domestic Brokerage Group— Gross P
Page 31 and 32: In the summer of 2007, widespread f
Page 33 and 34: in gross premiums written. It launc
Page 35 and 36: It grew new business premiums from
Page 37 and 38: emerging markets for its services,
Page 39 and 40: ILFC—Revenues by Region Total = $
Page 41 and 42: AIG Investments acquired a 94 perce
Page 43 and 44: and changing interest rates, as wel
Page 45 and 46: American International Group, Inc.
Page 55 and 56: UNITED STATES SECURITIES AND EXCHAN
Page 63 and 64:
American International Group, Inc.
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Page 139 and 140:
Page 141 and 142:
Page 143 and 144:
Page 145 and 146:
Page 147 and 148:
Page 149 and 150:
Page 151 and 152:
Page 153 and 154:
Page 155 and 156:
Page 157 and 158:
Page 159 and 160:
Page 161 and 162:
Page 163 and 164:
Page 165 and 166:
Page 167 and 168:
Page 169 and 170:
Page 171 and 172:
Page 173 and 174:
Page 175 and 176:
Page 177 and 178:
Page 179 and 180:
Page 181 and 182:
Page 183 and 184:
Page 185 and 186:
Page 187 and 188:
Page 189 and 190:
Page 191 and 192:
Index of Notes to Consolidated Fina
Page 193 and 194:
Page 195 and 196:
Page 197 and 198:
Page 199 and 200:
Page 201 and 202:
Page 203 and 204:
Page 205 and 206:
Page 207 and 208:
Page 209 and 210:
Page 211 and 212:
Page 213 and 214:
Page 215 and 216:
Page 217 and 218:
Page 219 and 220:
Page 221 and 222:
Page 223 and 224:
Page 225 and 226:
Page 227 and 228:
Page 229 and 230:
Page 231 and 232:
Page 233 and 234:
Page 235 and 236:
Page 237 and 238:
Page 239 and 240:
Page 241 and 242:
Page 243 and 244:
Page 245 and 246:
Page 247 and 248:
Page 249 and 250:
Page 251 and 252:
Page 253 and 254:
Page 255 and 256:
Page 257 and 258:
Page 259 and 260:
Page 261 and 262:
Page 263 and 264:
Page 265 and 266:
Page 267 and 268:
Page 269 and 270:
Page 271 and 272:
Page 273 and 274:
Page 275 and 276:
SHAREHOLDER INFORMATION Corporate H
show all

2007 Annual Report - AIG.com

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?