AIG-RajeevDhawan.pptVIP

American International Group;Agenda;Industry Analysis;Managing Risk: Life is Full of Gambles;Managing Risks…;The Markets for Insurance;Risk vs. Return Principle #1: Tradeoffs;Role of Insurance Industry in the Economy;Problems in Spreading Risk;Come on… this is real reason why Insurance is NEEDED!;Insurance Categories…;Babe Ruth: Specialty Coverage Sickness Policy;Industry Size;Top 6 Insurance by Market CapFebruary 2005;Leading Writers of P/C Insurance2003 ($000);Leading Insurers by Revenues 2003 ($ 000s);Demand Factors;Demand Factor: Rising Employee Benefits Costs…;Demand Factors:Weather, Global Warming…;Demand Factors:Hurricane Season!;The Economy Demand Factors ;New Private Housing Starts(Millions of Units);U.S. Homeownership Rate,1990 to 2003;Average Expenditures on Homeowners Ins.: US ;Homeowners Insurance Expenditure as a % of Median Home Price;Motor Vehicle Retail Sales (Millions of Units);Average Expenditures on Auto Insurance: US;Insurance is the Biggest Concern of Small Business Owners;Cost of Risk per $1,000 of Revenues: 1990-2002E;Insurance Industry: Critical Factors;Risk Management: 3 Pillars and Allocation of Capital;Comparing GDP to Insurance Industry…;Size of Industry;Commercial Lines Net Written Premium as % of GDP;P/C Financial Asset Distribution1998-2003($ Billions);Employment in Insurance 1994-2003 (000s);Leading Causes of CEO Insomnia: Profit Woes Underwriting Performance Reserving Issues (In)Solvency Issue Reinsurance Concerns Pricing Discipline Scarcity of Capital Nightmare on Wall Street Abuse of the Civil Justice System;P/C Net Income After Taxes1991-2002 ($ Millions);ROE: P/C vs. All Industries 1987–2003F;Underwriting Gain (Loss)1975-2002;Terrorism:Sept. 11 Industry Loss Estimates($ Billions);WC Reserve Deficiencies Rose Through 2001, Dropped in 2002;P/C Company Insolvency Rates,1993 to 2002;Reason for P/C Insolvencies(218 Insolvencies, 1993-2002);Policyholder Surplus: 1975-2002;Net Investment Income;Interest Rates: L