2007 Annual Report - AIG.com

It grew new business premiums from bancassurance by 88 percent
year-on-year and set up a unit to advance banking relationships across
China through strategic partnerships. AIA China also worked with
Alibaba Group, China’s largest e-commerce provider, to jointly develop
insurance distribution through the e-business channel. It introduced
several new products and also launched new investment funds on its
investment linked products to provide more choices to customers
and better meet their needs.
India’s booming economy provided our joint venture Tata
AIG Life Insurance Company Limited with a strong platform for
continued expansion. During 2007, Tata AIG Life launched four
new products, including unit-linked and group retirement products.
The launch of a new advertising campaign helped extend brand
recognition for all AIG businesses in the country.
In 2007, AIA operations in both Australia and New Zealand
continued to diversify their distribution channels, expanding the
reach of the independent financial advisor, agency and institutional
business-to-business channels. AIA operations were re-branded
as AIG Life in both Australia and New Zealand to leverage the
AIG brand.
Operating in more than 50 countries that span from Japan
through Europe, the Middle East, South Asia, Latin America and
the Caribbean, American Life Insurance Company (ALICO) has
been a consistent contributor to the success of AIG Life Insurance &
Retirement Services. ALICO’s businesses offer traditional life,
accident and health, group employer and employee insurance for
large and small organizations, pensions and annuities.
In 2007, ALICO reported record growth in premiums, deposits
and other considerations. These results were achieved by introducing
new products through its distribution channels, especially from
direct agency sales, brokers, independent financial advisors and
group sales. It also continued to invest in existing agents, and built
additional agency and specialist sales forces.
ALICO’s largest country operation is in Japan, where it markets an
array of life, medical and annuity products through multiple distribution
channels, including independent and career agents, direct
marketing and banks. Despite challenging market conditions, ALICO
Japan reaffirmed its position as a leading life insurer, being the fifth
largest in total premium and sixth largest in total assets. With deregulation
in late 2007 permitting the sale of all life and medical insurance
products through bancassurance, Japan’s four largest banking groups
selected ALICO Japan’s products for sale to their customers.
ALICO’s Central and Eastern Europe operations had an excellent
year as Bulgaria, Cyprus, the Czech Republic, Hungary, Poland,
Romania, Slovakia, Ukraine and Russia all reported double-digit
revenue and operating income growth. Operations in most of the
countries in the region also increased their market share. ALICO’s
bancassurance company in Bulgaria, formed through a joint venture
with the National Bank of Greece, completed its first full year
of operations. ALICO also entered new business ventures in this
region, which included a private pension company in Romania.
In continental Western Europe, ALICO achieved record premium
and profit growth. This was achieved by direct life insurance sales via
sponsoring partners, direct sales to the public, credit life and growth
in the broker distribution channels. ALICO opened a new branch
in Germany to sell various life, and accident and sickness protection
products. The U.K./Ireland region achieved strong growth in
premiums, deposits and other considerations. ALICO also continued
to focus on the region’s ultra-high-net-worth market and collaborated
with its partners to cross sell AIG’s broad range of products.
In December 2007, ALICO became the first life insurance company in Qatar to
receive an expanded license to operate a retail life business, having already
obtained a wholesale life insurance license (pictured, Qatar Financial Centre).
AIG 2007 Annual Report 33