American International Group, Inc. (AIG), a Delaware corporation, is a holding
company, which through its subsidiaries, is engaged in a broad range of insurance
and insurance-related activities in the United States and abroad. AIG's primary
activities include both General and Life Insurance operations. Other significant
activities include Financial Services, and Retirement Services & Asset Management.
The principal General Insurance company subsidiaries are American Home Assurance
Company (American Home), National Union Fire Insurance Company of Pittsburgh,
Pa. (National Union), New Hampshire Insurance Company (New Hampshire), Lexington
Insurance Company (Lexington), The Hartford Steam Boiler Inspection and Insurance
Company (HSB), Transatlantic Reinsurance Company, American International Underwriters
Overseas, Ltd. (AIUO)'and United Guaranty Residential Insurance Company. Significant
Life Insurance operations include those conducted through American Life Insurance
Company (ALICO), American International Reinsurance Company, Ltd. (AIRCO), American
International Assurance Company, Limited together with American International
Assurance Company (Bermuda) Limited (AIA), Nan Shan Life Insurance Company,
Ltd. (Nan Shan), AIG Star Life Insurance Co., Ltd. (AIG Star Life), AIG Annuity
Insurance Company (AIG Annuity), the AIG American General Life Companies (AIG
American General), and SunAmerica Life Insurance Company (SunAmerica Life).
AIG's Financial Services operations are conducted primarily through International
Lease Finance Corporation (ILFC), AIG Financial Products Corp. and its subsidiaries
(AIGFP), and American General Finance, Inc. and its subsidiaries (AGF), while
Retirement Services & Asset Management operations include The Variable Annuity
Life Insurance Company (VALIC), AIG SunAmerica Asset Management Corp. (SAAMCo),
AIG SunAmerica Life Assurance Company and AIG Global Asset Management Holdings
Corp. (formerly known as AIG Global Investment Group, Inc.) and its subsidiaries
and affiliated companies (AIG Global Investment Group).
AIG's General Insurance subsidiaries are multiple line companies writing substantially
all lines of property and casualty insurance. Domestic General Insurance operations
are comprised of the Domestic Brokerage Group (DBG), which includes the operations
of HSB; Transatlantic Holdings, Inc. (Transatlantic); Personal Lines, including
21st Century Insurance Group (21st'Century); and United Guaranty Corporation
(UGC).
AIG's Life Insurance subsidiaries offer a wide range of traditional insurance
and financial and investment products both domestically and abroad. Traditional
products consist of individual and group life, annuity, endowment and accident
and health policies. Financial and investment products consist of fixed and
variable annuities, guaranteed investment contracts and pensions.
A significant portion of AIG's general and life operating revenues are derived
from AIG's insurance investment operations.
AIG's worldwide insurance investment policy places primary emphasis on investments
in high quality, fixed income securities in all of its portfolios and, to a
lesser extent, investments in marketable common stocks, in order to preserve
policyholders' surplus and generate net investment income. The ability to implement
this policy is somewhat limited in certain territories as there may be a lack
of qualified long term investments or investment restrictions may be imposed
by the local regulatory authorities.
AIG's Financial Services subsidiaries engage in diversified financial products
and services including aircraft leasing, capital market transactions, and consumer
and insurance premium financing.
AIG's Aircraft Finance Operations represent the operations of ILFC which engages
primarily in the acquisition of commercial jet aircraft and the leasing and
remarketing of such aircraft to airlines around the world. Also, ILFC provides,
for a fee, fleet management services to certain third-party operators.
AIGFP engages as principal in standard and customized interest rate, currency,
equity, and credit products with top tier corporations, financial institutions,
governments, agencies, institutional investors, and high net worth individuals
throughout the world. AIGFP also raises funds through municipal re-investment
contracts and other private and public security offerings, investing the proceeds
in a diversified portfolio of high grade securities and derivative transactions.
AIGTG engages in various commodity and foreign exchange trading and market making
activities.
IG's Retirement Services & Asset Management operations offer a wide variety
of investment products, including variable annuities and mutual funds, as well
as investment services, such as investment asset management. Such products and
services are offered to individuals and institutions both domestically and overseas.
The insurance industry is highly competitive. Within the United States, AIG's
General Insurance subsidiaries compete with approximately 3,000 other stock
companies, specialty insurance organizations, mutual companies and other underwriting
organizations. AIG's subsidiaries offering Life Insurance and Retirement Services
compete in the United States with approximately 1,800 life insurance companies
and other participants in related financial service fields. Overseas, AIG subsidiaries
compete for business with foreign insurance operations of the larger U.S.'insurers
and local companies in particular areas in which they are active.
AIG's Insurance, Financial Services and Asset Management operations operate
in a highly competitive and increasingly regulated environment, both domestically
and overseas. Principal sources of competition are banks, investment banks and
other non-bank financial institutions. The focus of AIG's operations has also
become more consumer-oriented, thereby increasing the risks of regulatory supervision
and intervention.