And, although fixed-income annuity policies are expected to grow, AIG will most likely fall further behind with other annuity products that are proving to be a hard to sell for rivals. Looking at the losses, it's hard to see how fourth-quarter results fulfilled CEO Robert Benmosche's statement that AIG "made great progress during the year in executing our strategic restructuring plan, by stabilizing and strengthening AIG's insurance businesses." Sucking out over $25 billion in future income will hardly strengthen Chartis or SunAmerica. It appears that the insurers will remain relatively weak for the foreseeable future. This will mean taxpayers shouldn't expect bailout money to be repaid anytime soon. AIG's remaining insurance units will bear the brunt of the repayments, holding back development of the business. -- Reported by Gavin Magor in Jupiter, Fla.