2007 Annual Report - AIG.com

Domestic Brokerage Group—
Gross Premiums Written by Line of Business
Total = $31.8 billion
Workers’ Compensation 16.5%
General Liability/Auto Liability 15.8%
Property 14.1%
Management/Professional Liability 11.2%
Commercial Umbrella/Excess 9.7%
Programs 4.7%
A&H Products 4.2%
Multinational P&C 4.1%
Environmental 2.9%
Boiler and Machinery 2.9%
Aviation 2.1%
All Other 11.8%
more than 40 years. It benefited from its strong financial position
as over 90 percent of its largest board and corporate customers
renewed contracts in 2007.
DBG companies are consistent, longstanding lead underwriters
in most lines of business in which they participate. This provides
them with an ability to anticipate emerging risks, which is a hallmark
of AIG Excess Casualty, DBG’s market-leading commercial umbrella
insurance provider. From this leadership position, AIG Excess
Casualty can quickly recognize developing liability trends and
respond with intelligent underwriting solutions.
Perhaps no attribute defines DBG better than innovation.
In 2007, DBG companies introduced an average of one new insurance
product or service every week, including several groundbreaking
products to address global warming risks. DBG’s Lexington
Insurance Company, the leading U.S.-based excess and surplus
lines insurer, introduced Upgrade To Green SM Residential to help
policyholders rebuild damaged homes to green standards using
ENERGY STAR ® or equivalent energy-efficient and environmentally
friendly materials. Lexington’s accumulated expertise in specialized
industries has also served as a foundation for product innovation
and risk solutions for such key sectors as healthcare, real estate,
higher education, agriculture and construction.
AIG pioneered pollution liability insurance 27 years ago, and
AIG Environmental is leading the way today with a new breed of
environmentally friendly insurance products. Its Sustain-a-Build SM
coverage encourages environmentally responsible construction and
building projects through premium discounts for operations that
qualify for the U.S. Green Building Council’s Leadership in Energy
and Environmental Design (LEED ® ) certification program.
Sustain-a-Build joins a portfolio of AIG Environmental products
focused on pollution remediation and contaminated property clean up.
DBG’s innovations have produced an extensive portfolio of
insurance products and services. And nowhere is the significance of
this range of offerings more evident than at AIG Risk Management
(AIGRM), a provider of risk management solutions for the largest
U.S. corporations. In 2007, AIGRM expanded its integrated insurance
program approach, comprising primary casualty, excess workers’
compensation, surety, risk financing and captive management
programs, in concert with loss control and claims services, to serve
new industries and market segments. The result is a significant
opportunity with construction, transportation, public entity, real
estate and midsize organizations that require a comprehensive way
to manage risk.
AIG’s Deliver the Firm strategy is ingrained in every DBG unit.
AIG Worldsource, which serves the needs of U.S. and Canadian
customers overseas and foreign businesses with risks in the United
States and Canada, is no exception. The unit is the primary facilitator
for delivery of AIG Passport SM services. AIG Passport taps AIG’s
global network to provide multinational customers with local
insurance worldwide, while offering DBG a competitive edge in
an increasingly global liability environment.
AIG’s Domestic Accident & Health Division also demonstrates
DBG’s commitment to the Deliver the Firm strategy. With more
than 40 years of experience in managing specialized accident and
health risks for consumer, commercial and affinity group customers,
the division recorded excellent premium growth in 2007, in part
because it integrated products such as accidental death and accidental
medical coverages into policies offered by other DBG operating units,
a unified solution that appeals to many customers. The unit’s
growth also reflects its success in building strong direct marketing,
travel insurance, and school and student insurance businesses.
Several thousand independent insurance brokerage firms do
business with DBG every year. Expanding these relationships is a
business imperative well exemplified by AIG Specialty Workers’
Compensation, the nation’s leading private writer of this insurance to
midsize and small businesses. The unit’s Internet-based eComp platform
was enhanced in 2007 to offer greater quote-to-bind capabilities
and improved service. eComp ranks among the top e-commerce sites,
quoting an average of over $4 million in new business daily.
The mission of AIG Small Business ® is to be the insurer of choice
for the more than 25 million small businesses in the United States.
Using aggregation technologies and select distribution channels,
the unit is able to provide the full range of DBG’s specialty products,
opening the door to greater opportunities in this sector.
AIG Global Marine and Energy and AIG Aviation bring
extensive experience to some of the world’s most complex commercial
sectors. In 2007, AIG Global Marine and Energy, which serves
customers in the United States and internationally, launched an
Alternative Energy practice to deliver insurance, engineering and
financial resources to respond to risks posed by alternative and
renewable energy technologies and climate change. The Marine unit
also teamed with AIG Private Client Group to service the recreational
marine exposures of the nation’s high-net-worth individuals.
AIG Aviation weathered challenging market conditions by focusing
on intelligent risk selection and by delivering a broad range of AIG
products to this market.
AIG 2007 Annual Report 27