SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2016

SEGMENT INFORMATION

SEGMENT INFORMATION

3. SEGMENT INFORMATION

We report our results of operations consistent with the manner in which our chief operating decision makers review the business to assess performance and allocate resources through two reportable segments: Commercial Insurance and Consumer Insurance as well as a Corporate and Other category. The Corporate and Other category consists of businesses and items not allocated to our reportable segments.

We evaluate performance based on revenues and pre-tax operating income (loss). Pre-tax operating income (loss) is derived by excluding certain items from net income (loss) attributable to AIG. See the table below for the items excluded from pre-tax operating income (loss).

The following tables present our operations by reportable segment:

	2016				2015
				Pre-Tax				Pre-Tax
Three Months Ended June 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues	Income (Loss)
Commercial Insurance
Property Casualty	$	5,540	$	791	$	6,233	$	1,192
Mortgage Guaranty		275		187		261		157
Institutional Markets		695		110		1,172		151
Total Commercial Insurance		6,510		1,088		7,666		1,500
Consumer Insurance
Retirement		2,209		741		2,465		804
Life		1,690		184		1,632		149
Personal Insurance		2,915		179		2,869		70
Total Consumer Insurance		6,814		1,104		6,966		1,023
Corporate and Other*		450		(544)		1,119		372
AIG consolidation and elimination		(205)		(28)		(116)		(27)
Total AIG consolidated operating revenues and pre-tax operating income		13,569		1,620		15,635		2,868
Reconciling items from Total revenues and Pre-tax operating income
(loss) to revenues and pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed
living benefits		120		120		(87)		(87)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		(64)		-		(28)
Other income - net		-		5		-		-
Loss on extinguishment of debt		-		(7)		-		(342)
Net realized capital gains		1,042		1,042		126		126
Income (loss) from divested businesses		-		225		(33)		(34)
Non-operating litigation reserves and settlements		7		7		76		49
Reserve development related to non-operating run-off insurance business		-		-		-		-
Restructuring and other costs		-		(90)		-		-
Other		(14)		-		(18)		-
Revenues and pre-tax income	$	14,724	$	2,858	$	15,699	$	2,552

	2016				2015
				Pre-Tax				Pre-Tax
Six Months Ended June 30,		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues	Income (Loss)
Commercial Insurance
Property Casualty	$	10,818	$	1,511	$	12,189	$	2,362
Mortgage Guaranty		536		350		525		302
Institutional Markets		1,314		116		1,796		298
Total Commercial Insurance		12,668		1,977		14,510		2,962
Consumer Insurance
Retirement		4,323		1,202		4,853		1,604
Life		3,287		289		3,245		320
Personal Insurance		5,736		401		5,731		44
Total Consumer Insurance		13,346		1,892		13,829		1,968
Corporate and Other*		656		(1,277)		2,161		534
AIG consolidation and elimination		(364)		(18)		(275)		(69)
Total AIG consolidated operating revenues and pre-tax operating income		26,306		2,574		30,225		5,395
Reconciling items from Total revenues and Pre-tax operating income
(loss) to revenues and pre-tax income (loss):
Changes in fair values of securities used to hedge guaranteed
living benefits		253		253		(43)		(43)
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		(24)		-		(82)
Other income - net		-		12		-		-
Loss on extinguishment of debt		-		(90)		-		(410)
Net realized capital gains (losses)		(64)		(64)		1,467		1,467
Income (loss) from divested businesses		-		223		(48)		(55)
Non-operating litigation reserves and settlements		41		38		91		56
Reserve development related to non-operating run-off insurance business		-		-		-		-
Restructuring and other costs		-		(278)		-		-
Other		(33)		-		(18)		-
Revenues and pre-tax income	$	26,503	$	2,644	$	31,674	$	6,328

* Corporate and Other includes income from assets held by AIG Parent and other corporate subsidiaries.