2007 Annual Report - AIG.com

in gross premiums written. It launched a “Blue Ocean” initiative,
focused on creating uncontested market space and capturing new
demand, to grow its business by developing new markets and
delivering new products.
Despite softening rates and intense competition in 2007, the
general insurance operations in the U.K./Ireland region delivered
good production growth. In 2007, AIG Europe (UK) Limited was
selected “Underwriter of the Year”at the British Insurance Awards
for its innovative and profitable strategies in directors and officers
liability coverage for companies trading on the London Stock
Exchange’s Alternative Investment Market. The acquisition of Direct
Travel Insurance Services Limited in 2007 will further complement
AIG’s accident and health insurance business in this region.
In Central Europe and the Commonwealth of Independent States,
AIU continued its steady growth in property, casualty and consumer
lines. It also introduced a directors and officers product for corporate
customers in key countries. In 2007, accident and health distribution
channels were expanded, using innovative forms of delivery to
meet the growing market demand for insurance through corporate
sponsors, employers and airlines.
In the Middle East, Mediterranean and South Asia region,
AIG MEMSA Insurance Company Limited continued to grow by
launching a new operation in Oman and opened a new branch in
Qatar. AIG Travel achieved strong premium growth through partnership
relationships throughout the Middle East. AIG Greece recorded
strong premium growth, which was significantly higher than the
market average. It continued to grow its personal lines, small business
and financial lines businesses, while developing a new market in
specialized products, such as crisis management and environmental
insurance. AIG Sigorta A.S. in Turkey sharpened its market segmentation
strategy, focused on product innovation and customer service,
and further solidified its leadership positions in accident and health,
financial lines, liability and marine cargo insurance.
During 2007, AIG companies in Africa continued to grow their
business. AIG Kenya Insurance Company Limited, one of the
largest general insurance businesses in the country, received permission
from the country’s insurance regulator to write microfinance
institutions (MFI) business. It actively focused on enrolling MFIs
and launched the Small Business Solutions insurance package
for small and midsize enterprises. AIG South Africa Limited grew
its business of insuring small and medium enterprises.
Executing its strategy of writing businesses that offer the greatest
growth potential and highest profit margins, AIU Latin America
Division (AIU LAD) had strong premium growth over the prior
year. The division’s strategic focus is on personal accident, warranty,
personal property and financial lines products. With more than
15 million clients, AIU LAD is one of the leading multinational
insurers in the region. While registering double-digit growth in
several commercial lines of business, the division also expanded
its consumer lines by diversifying product offerings, accelerating
automation and expanding distribution channels into bancassurance,
retail and direct marketing. In Brazil, Unibanco AIG Seguros S.A.
earned several accolades for market leadership, including
“The Insurance Company of the Year” award from a leading insurance
publication, Mercado de Seguros.
Foreign General Insurance—Premiums Written
(billions of dollars)
12.3
7.6
14.5
9.1
15.6
10.0
17.5
11.4
19.8
2003 2004 2005 2006 2007
13.1
Gross
Premiums
Written
Net
Premiums
Written
AIG 2007 Annual Report 31