SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2017

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.

We report our results of operations as follows:

• Commercial Insurance business is presented as two operating segments:

- Liability and Financial Lines

- Property and Special Risks

• Consumer Insurance business is presented as four operating segments:

- Individual Retirement

- Group Retirement

- Life Insurance

- Personal Insurance

• The Other Operations category consists of:

- Institutional Markets

- Income from assets held by AIG Parent and other corporate subsidiaries

- General operating expenses not attributable to specific reporting segments

- Interest expense

- United Guaranty — The sale of this business was completed on December 31, 2016

- Fuji Life — On November 14, 2016, we entered into an agreement to sell our Japan life insurance business, AIG Fuji Life Insurance Company, Ltd. (Fuji Life), to FWD Group, the insurance arm of Pacific Century Group. The sale of this business was completed on April 30, 2017.

• The Legacy Portfolio segment consists of:

- Legacy Property and Casualty Run-Off Insurance Lines

- Legacy Life Insurance Run-Off Lines

- Legacy Investments

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

The following table presents AIG’s continuing operations by operating segment:

Three Months Ended March 31,	2017				2016
				Pre-Tax				Pre-Tax
		Total		Operating		Total		Operating
(in millions)		Revenues		Income (Loss)		Revenues		Income (Loss)
Commercial Insurance
Liability and Financial Lines	$	2,848	$	574	$	3,311	$	569
Property and Special Risks		1,835		275		1,987		93
Total Commercial Insurance		4,683		849		5,298		662
Consumer Insurance
Individual Retirement		1,373		539		1,493		302
Group Retirement		718		243		629		191
Life Insurance		1,013		54		953		1
Personal Insurance		2,838		212		2,816		210
Total Consumer Insurance		5,942		1,048		5,891		704
Other Operations		1,090		(246)		998		(239)
Legacy Portfolio		1,084		342		681		(202)
AIG Consolidation and elimination		(64)		48		(131)		20
Total AIG Consolidated revenues and pre-tax operating income		12,735		2,041		12,737		945
Reconciling Items from revenues and pre-tax operating income to
revenues and pre-tax income (loss):
Changes in fair value of securities used to hedge guaranteed
living benefits		11		11		133		133
Changes in benefit reserves and DAC, VOBA and SIA related to
net realized capital gains		-		53		-		40
(Unfavorable) favorable prior year development and related amortization
changes ceded under retroactive reinsurance agreements		-		(14)		-		7
Gain (Loss) on extinguishment of debt		-		1		-		(83)
Net realized capital losses		(115)		(115)		(1,106)		(1,106)
Loss from divested businesses		-		(100)		-		(2)
Non-operating litigation reserves and settlements		10		6		34		31
Net loss reserve discount benefit (charge)		-		25		-		9
Restructuring and other costs		-		(181)		-		(188)
Other		(9)		-		(19)		-
Revenues and Pre-tax income (loss)	$	12,632	$	1,727	$	11,779	$	(214)