SEGMENT INFORMATION

6 Months Ended

Jun. 30, 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. Commencing in 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.

AIG Life and Retirement fully implemented these changes during the first quarter of 2013 and now presents its operating 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.

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 period amounts 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. Prior to the first quarter of 2013, AIG Life and Retirement was presented as two operating segments: Life Insurance and Retirement Services.

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

	2013						2012
Three Months Ended June 30, (in millions)	Total Revenues			Pre-tax Income (Loss) from continuing operations			Total Revenues			Pre-tax Income (Loss) from continuing operations
AIG Property Casualty
Commercial Insurance	$	5,696		$	535		$	6,051		$	745
Consumer Insurance		3,347			91			3,564			192
Other		723			542			405			24
Total AIG Property Casualty		9,766			1,168			10,020			961
AIG Life and Retirement
Retail		3,439			1,177			2,501			341
Institutional		2,609			542			1,927			436
Total AIG Life and Retirement		6,048			1,719			4,428			777
Other Operations
Mortgage Guaranty		243			75			224			48
Global Capital Markets		232			175			10			(25	)
Direct Investment book		815			720			584			485
Retained Interests		–			–			813			813
Corporate & Other		411			(701	)		251			(1,435	)
Consolidation and elimination		(10	)		1			(13	)		(2	)
Total Other Operations		1,691			270			1,869			(116	)
AIG Consolidation and elimination		(190	)		(10	)		(96	)		47
Total AIG Consolidated	$	17,315		$	3,147		$	16,221		$	1,669

	2013						2012
Six Months Ended June 30, (in millions)	Total Revenues			Pre-tax Income (Loss) from continuing operations			Total Revenues			Pre-tax Income (Loss) from continuing operations
AIG Property Casualty
Commercial Insurance	$	11,469		$	1,576		$	11,944		$	1,390
Consumer Insurance		6,853			244			7,176			426
Other		1,403			952			698			55
Total AIG Property Casualty		19,725			2,772			19,818			1,871
AIG Life and Retirement
Retail		6,442			2,173			4,900			825
Institutional		4,346			1,116			3,430			814
Total AIG Life and Retirement		10,788			3,289			8,330			1,639
Other Operations
Mortgage Guaranty		474			119			424			56
Global Capital Markets		505			402			170			63
Direct Investment book		1,226			1,032			928			733
Retained Interests		–			–			3,860			3,860
Corporate & Other		813			(1,699	)		513			(2,093	)
Consolidation and elimination		(19	)		2			(23	)		1
Total Other Operations		2,999			(144	)		5,872			2,620
AIG Consolidation and elimination		(309	)		62			(302	)		5
Total AIG Consolidated	$	33,203		$	5,979		$	33,718		$	6,135