SEGMENT INFORMATION

9 Months Ended

Sep. 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, high net worth products, 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 September 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	$	5,760		$	610		$	5,927		$	371
Consumer Insurance		3,359			93			3,582			152
Other		489			326			640			426
Total AIG Property Casualty		9,608			1,029			10,149			949
AIG Life and Retirement
Retail		2,884			941			2,747			531
Institutional		1,760			300			2,000			358
Total AIG Life and Retirement		4,644			1,241			4,747			889
Other Operations
Mortgage Guaranty		236			43			218			6
Global Capital Markets		87			29			235			190
Direct Investment book		147			52			506			406
Retained Interests		–			–			857			857
Corporate & Other		217			(1,250	)		412			(566	)
Consolidation and elimination		(9	)		1			(15	)		(2	)
Total Other Operations		678			(1,125	)		2,213			891
AIG Consolidation and elimination		(104	)		34			(387	)		(171	)
Total AIG Consolidated	$	14,826		$	1,179		$	16,722		$	2,558

	2013						2012
Nine Months Ended September 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	$	17,229		$	2,186		$	17,871		$	1,761
Consumer Insurance		10,212			337			10,758			578
Other		1,892			1,278			1,338			481
Total AIG Property Casualty		29,333			3,801			29,967			2,820
AIG Life and Retirement
Retail		9,326			3,114			7,647			1,356
Institutional		6,106			1,416			5,430			1,172
Total AIG Life and Retirement		15,432			4,530			13,077			2,528
Other Operations
Mortgage Guaranty		710			162			642			62
Global Capital Markets		592			431			405			253
Direct Investment book		1,373			1,084			1,434			1,139
Retained Interests		–			–			4,717			4,717
Corporate & Other		1,030			(2,949	)		925			(2,659	)
Consolidation and elimination		(28	)		3			(38	)		(1	)
Total Other Operations		3,677			(1,269	)		8,085			3,511
AIG Consolidation and elimination		(413	)		96			(689	)		(166	)
Total AIG Consolidated	$	48,029		$	7,158		$	50,440		$	8,693