SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2011

SEGMENT INFORMATION

SEGMENT INFORMATION

 3. SEGMENT INFORMATION

    AIG reports the results of its operations through three reportable segments: Chartis, SunAmerica Financial Group (SunAmerica) and Aircraft Leasing. AIG evaluates performance based on pre-tax income (loss), excluding results from discontinued operations and net (gains) losses on sales of divested businesses, because AIG believes this provides more meaningful information on how its operations are performing.

    In order to align financial reporting with changes made during 2011 to the manner in which AIG's chief operating decision makers review the businesses to assess performance and make decisions about resources to be allocated, the following changes were made to AIG's segment information:

• •

  During the third quarter of 2011, Chartis completed the previously-announced reorganization of its operations and now presents its financial information in two operating segments — Commercial Insurance and Consumer Insurance, as well as a Chartis Other operations category. Prior to the third quarter of 2011, Chartis presented its financial information in two operating segments, Chartis U.S. and Chartis International.

  •

  Aircraft Leasing is now presented as a standalone reportable segment. It was previously reported as a component of the Financial Services reportable segment.

  •

  The derivatives portfolio of AIGFP, previously reported as Capital Markets, a component of the Financial Services reportable segment, is now reported with AIG Markets, Inc. (AIG Markets) as Global Capital Markets in AIG's Other operations.

    Prior periods have been revised to conform to the current period presentation for the above segment changes.

    The reportable segments and their respective operations are as follows:

    Chartis:    AIG's property and casualty operations are conducted through multiple-line companies writing substantially all commercial and consumer lines both domestically and abroad. Chartis offers its products through a diverse, multi-channel distribution network that includes agents, wholesalers, global and local brokers, and direct-to-consumer platforms. Beginning in the third quarter of 2010, Chartis includes the results of Fuji Fire & Marine Insurance Company Limited (Fuji), which writes primarily consumer lines in Japan. See Note 5 herein.

    SunAmerica:    SunAmerica offers a comprehensive suite of products and services to individuals and groups, including term life insurance, universal life insurance, accident and health (A&H) insurance, fixed and variable deferred annuities, fixed payout annuities, mutual funds and financial planning. SunAmerica offers its products and services through a diverse, multi-channel distribution network that includes banks, national, regional and independent broker-dealers, affiliated financial advisors, independent marketing organizations, independent and career insurance agents, structured settlement brokers, benefit consultants and direct-to-consumer platforms.

    The SunAmerica segment is presented as two operating segments — Domestic Life Insurance, which focuses on mortality and morbidity based protection products, and Domestic Retirement Services, which focuses on investment, retirement savings and income solutions.

    Aircraft Leasing:    AIG's commercial aircraft leasing business is conducted through ILFC.

    Other Operations:    AIG's Other operations include results from:

• •

  Mortgage Guaranty operations;

  •

  Global Capital Markets operations;

  •

  Direct Investment book results;

  •

  Retained Interests, which represents the fair value gains or losses on the AIA ordinary shares retained following the AIA initial public offering, the retained interest in ML III, and, prior to their sale on March 8, 2011, the MetLife securities that were received as consideration from the sale of ALICO;

  •

  Corporate & Other operations (after allocations to AIG's business segments); and

  •

  Divested businesses that did not qualify for discontinued operations accounting.

    Year-end identifiable assets presented in the following tables include assets of businesses held for sale at December 31, 2010 and 2009.

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

		Reportable Segments
																	Consolidation and Eliminations
(in millions)		Chartis			SunAmerica			Aircraft Leasing			Other Operations			Total						Consolidated
2011
	Total revenues	$	40,702		$	15,315		$	4,457		$	4,079		$	64,553		$	(316	)	$	64,237
	Other-than-temporary impairment charges(a)		274			977			-			29			1,280			-			1,280
	Net (gain) loss on sale of properties and divested businesses		-			-			-			74			74			-			74
	Interest expense(b)		7			-			1,427			2,490			3,924			(53	)		3,871
	Depreciation and amortization		6,831			1,062			1,948			42			9,883			-			9,883
	Pre-tax income (loss) from continuing operations		1,698			2,910			(1,005	)		(4,699	)		(1,096	)		31			(1,065	)
	Capital expenditures		234			75			604			655			1,568			-			1,568
	Year-end identifiable assets		178,959			268,835			39,038			186,002			672,834			(117,061	)		555,773
2010
	Total revenues	$	37,196		$	14,747		$	4,718		$	21,405		$	78,066		$	(540	)	$	77,526
	Other-than-temporary impairment charges(a)		577			1,958			-			504			3,039			-			3,039
	Net (gain) loss on sale of properties and divested businesses		(669	)		-			-			(17,098	)		(17,767	)		-			(17,767	)
	Interest expense(b)		1			-			1,397			6,881			8,279			(298	)		7,981
	Depreciation and amortization		7,256			899			2,035			1,130			11,320			-			11,320
	Pre-tax income (loss) from continuing operations		(116	)		2,712			(729	)		15,893			17,760			176			17,936
	Capital expenditures		213			57			266			620			1,156			-			1,156
	Year-end identifiable assets		172,708			260,947			43,158			315,206			792,019			(108,576	)		683,443
2009
	Total revenues	$	35,023		$	11,366		$	4,992		$	25,264		$	76,645		$	(1,198	)	$	75,447
	Other-than-temporary impairment charges(a)		903			3,821			-			1,972			6,696			-			6,696
	Net (gain) loss on sale of properties and divested businesses		-			-			-			1,271			1,271			-			1,271
	Interest expense(b)		-			-			1,222			13,305			14,527			(169	)		14,358
	Depreciation and amortization		7,005			1,140			2,022			1,907			12,074			-			12,074
	Pre-tax income (loss) from continuing operations		164			(1,179	)		1,385			(14,193	)		(13,823	)		(484	)		(14,307	)
	Capital expenditures		191			52			2,587			875			3,705			-			3,705
	Year-end identifiable assets		154,733			245,607			45,992			495,054			941,386			(93,801	)		847,585

(a)

Included in Total revenues presented above.

(b)

Interest expense for Other operations in 2010 and 2009 includes amortization of prepaid commitment fee asset of $3.5 billion and $8.4 billion, respectively.

The following table presents Chartis operations by operating segment:

(in millions)		Commercial Insurance		Consumer Insurance		Other			Total Chartis
2011
	Total revenues	$	25,544	$	13,678	$	1,480		$	40,702
	Claims and claims adjustment expenses incurred		18,953		8,797		199			27,949
	Underwriting expenses		5,847		4,857		268			10,972
	Pre-tax income (loss) from continuing operations		744		24		930			1,698
2010
	Total revenues	$	24,820	$	11,260	$	1,116		$	37,196
	Net (gain) loss on sale of properties and divested businesses		-		-		(669	)		(669	)
	Claims and claims adjustment expenses incurred		19,001		6,686		2,180			27,867
	Underwriting expenses		5,752		4,171		191			10,114
	Pre-tax income (loss) from continuing operations		67		403		(586	)		(116	)
2009
	Total revenues	$	26,989	$	9,406	$	(1,372	)	$	35,023
	Claims and claims adjustment expenses incurred		18,920		5,315		1,127			25,362
	Underwriting expenses		5,658		3,690		149			9,497
	Pre-tax income (loss) from continuing operations		2,411		401		(2,648	)		164

    Chartis manages its assets on an aggregate basis and does not allocate its assets, other than goodwill, between its operating segments. Investment income is allocated to the Commercial Insurance and Consumer Insurance segments based upon an internal capital model. The model estimates investable funds based upon the loss reserves, unearned premiums and a capital allocation for each operating segment. The investment income is calculated based on the estimated investable funds and the duration of the liabilities. Any difference between the calculated investment income and the actual investment income is included in Chartis Other.

The following table presents SunAmerica operations by operating segment:

(in millions)		Domestic Life Insurance		Domestic Retirement Services			Total Operating Segments			Consolidation and Eliminations			Total SunAmerica
2011
Total revenues:
	Insurance-oriented products	$	5,813	$	-		$	5,813		$	-		$	5,813
	Retirement savings products		2,469		6,006			8,475			-			8,475
	Asset management revenues		-		1,027			1,027			-			1,027
	Total revenues		8,282		7,033			15,315			-			15,315
Depreciation and amortization			456		606			1,062			-			1,062
Pre-tax income from continuing operations			1,404		1,506			2,910			-			2,910
Capital expenditures			42		33			75			-			75
Year-end identifiable assets			110,694		178,357			289,051			(20,216	)		268,835
2010
Total revenues:
	Insurance-oriented products	$	5,992	$	-		$	5,992		$	-		$	5,992
	Retirement savings products		2,335		6,150			8,485			-			8,485
	Asset management revenues		7		263			270			-			270
	Total revenues		8,334		6,413			14,747			-			14,747
Depreciation and amortization			629		270			899			-			899
Pre-tax income from continuing operations			1,394		1,318			2,712			-			2,712
Capital expenditures			28		29			57			-			57
Year-end identifiable assets			105,580		175,755			281,335			(20,388	)		260,947
2009
Total revenues:
	Insurance-oriented products	$	5,349	$	-		$	5,349		$	-		$	5,349
	Retirement savings products		1,993		3,611			5,604			-			5,604
	Asset management revenues		17		396			413			-			413
	Total revenues		7,359		4,007			11,366			-			11,366
Depreciation and amortization			534		606			1,140			-			1,140
Pre-tax income (loss) from continuing operations			619		(1,798	)		(1,179	)		-			(1,179	)
Capital expenditures			17		35			52			-			52
Year-end identifiable assets			100,600		165,436			266,036			(20,429	)		245,607

    AIG's Aircraft Leasing operations consist of a single operating segment.

    AIG Global Real Estate Investment Corp. and Institutional Asset Management, previously reported as components of the Direct Investment book and Asset Management operations, respectively, are now reported in Corporate & Other.

The following table presents the components of AIG's Other operations:

(in millions)		Mortgage Guaranty			Global Capital Markets			Direct Investment Book			Retained Interests		Corporate & Other			Divested Businesses		Consolidation and Eliminations			Total Other Operations
2011
	Total revenues	$	944		$	266		$	1,004		$	486	$	1,415		$	-	$	(36	)	$	4,079
	Net (gain) loss on sale of properties and divested businesses		-			-			-			-		74			-		-			74
	Interest expense		-			-			367			-		2,143			-		(20	)		2,490
	Depreciation and amortization		53			-			(218	)		-		207			-		-			42
	Pre-tax income (loss) from continuing operations		(73	)		(7	)		622			486		(5,727	)		-		-			(4,699	)
	Capital expenditures		37			-			-			-		618			-		-			655
	Year-end identifiable assets		5,406			12,619			31,162			15,086		98,999			-		22,730			186,002
2010
	Total revenues	$	1,168		$	532		$	1,499		$	1,819	$	2,631		$	13,811	$	(55	)	$	21,405
	Net (gain) loss on sale of properties and divested businesses		-			-			-			-		(17,098	)		-		-			(17,098	)
	Interest expense		-			3			382			-		6,551			4		(59	)		6,881
	Depreciation and amortization		77			4			(317	)		-		342			1,024		-			1,130
	Pre-tax income (loss) from continuing operations		373			193			1,242			1,819		9,637			2,540		89			15,893
	Capital expenditures		10			-			-			-		503			107		-			620
	Year-end identifiable assets		6,073			31,038			29,291			23,939		91,155			110,070		23,640			315,206
2009
	Total revenues	$	1,183		$	1,109		$	1,950		$	419	$	3,058		$	18,481	$	(936	)	$	25,264
	Net (gain) loss on sale of properties and divested businesses		-			-			-			-		1,271			-		-			1,271
	Interest expense		-			3			425			-		13,267			19		(409	)		13,305
	Depreciation and amortization		94			13			(162	)		-		615			1,347		-			1,907
	Pre-tax income (loss) from continuing operations		(1,688	)		603			1,506			419		(16,831	)		2,159		(361	)		(14,193	)
	Capital expenditures		5			-			-			-		652			218		-			875
	Year-end identifiable assets		7,816			34,047			31,948			4,519		84,657			332,128		(61	)		495,054

The following table presents AIG's operations and long-lived assets by major geographic area:

		Geographic Area
(in millions)		United States		Asia		Other Foreign		Consolidated
2011
	Total revenues(a)	$	40,234	$	8,119	$	15,884	$	64,237
	Real estate and other fixed assets, net of accumulated depreciation		1,330		591		386		2,307
	Flight equipment primarily under operating leases, net of accumulated depreciation(b)		35,539		-		-		35,539
2010
	Total revenues(a)	$	40,993	$	20,411	$	16,122	$	77,526
	Real estate and other fixed assets, net of accumulated depreciation		1,896		557		392		2,845
	Flight equipment primarily under operating leases, net of accumulated depreciation(b)		38,510		-		-		38,510
2009
	Total revenues(a)	$	34,986	$	23,183	$	17,278	$	75,447
	Real estate and other fixed assets, net of accumulated depreciation		2,328		1,189		625		4,142
	Flight equipment primarily under operating leases, net of accumulated depreciation(b)		44,091		-		-		44,091

(a)

Revenues are generally reported according to the geographic location of the reporting unit.

(b)

ILFC derives more than 94 percent of its lease revenue from non-U.S. carriers.