SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2013

SEGMENT INFORMATION

SEGMENT INFORMATION

3. SEGMENT INFORMATION

We report the results of our operations through two reportable segments: AIG Property Casualty and AIG Life and Retirement. We evaluate performance based on revenues and pre-tax income (loss), excluding results from discontinued operations, because we believe this provides more meaningful information on how our operations are performing.

AIG Property Casualty Investment Income Allocation

Investment income is allocated to the Commercial Insurance and Consumer Insurance operating segments based on an internal investment income allocation model. The model estimates investable funds based primarily on loss reserves and allocated capital. Starting with the first quarter of 2013, AIG Property Casualty began applying similar duration and risk-free yields (plus an illiquidity premium) to the allocated capital of Commercial Insurance and Consumer Insurance as is applied to reserves.

AIG Life and Retirement Operating Segment Change

In 2012, AIG Life and Retirement announced several key organizational structure and management changes intended to better serve the organization's distribution partners and customers. Key aspects of the new structure include distinct product manufacturing divisions, shared annuity and life operations platforms and a unified all-channel distribution organization with access to all AIG Life and Retirement products.

In addition, during the first quarter of 2013, AIG Life and Retirement completed its previously announced reporting structure changes and now presents its results in the following two operating segments:

• Retail - product lines include life insurance and accident and health (A&H), fixed annuities, retirement income solutions (including variable and indexed annuities), brokerage services and retail mutual funds.

  Institutional - product lines include group retirement, group benefits and institutional markets. The institutional markets product line consists of stable value wrap products, structured settlement and terminal funding annuities, private placement variable life and annuities, guaranteed investment contracts (GICs), and corporate and bank-owned life insurance.

Prior to the first quarter of 2013, AIG Life and Retirement was presented as two operating segments: Life Insurance and Retirement Services. These changes align financial reporting with the manner in which AIG's chief operating decision makers review the business to assess performance and to allocate resources. Prior periods have been revised to reflect the new structure, which did not affect previously reported pre-tax income from continuing operations for AIG Life and Retirement.

The following table presents AIG's operations by reportable segment:

	2013						2012
Three Months Ended March 31, (in millions)	Total Revenues			Pre-tax Income from continuing operations			Total Revenues			Pre-tax Income from continuing operations
AIG Property Casualty
Commercial Insurance	$	5,773		$	1,041		$	5,893		$	645
Consumer Insurance		3,506			153			3,612			234
Other		680			410			293			31
Total AIG Property Casualty	$	9,959		$	1,604		$	9,798		$	910
AIG Life and Retirement
Retail		3,003			996			2,399			484
Institutional		1,737			574			1,503			378
Total AIG Life and Retirement	$	4,740		$	1,570		$	3,902		$	862
Other Operations
Mortgage Guaranty		231			44			200			8
Global Capital Markets		273			227			160			88
Direct Investment Book		411			312			344			248
Retained Interests		–			–			3,047			3,047
Corporate & Other		402			(998	)		262			(658	)
Consolidation and Elimination		(9	)		1			(10	)		3
Total Other Operations	$	1,308		$	(414	)	$	4,003		$	2,736
AIG Consolidation and Elimination		(119	)		72			(206	)		(42	)
Total AIG Consolidated	$	15,888		$	2,832		$	17,497		$	4,466