AIG 2011 Annual Report Download - page 130

Other Operations Results
The following table presents pre-tax income for AIG’s Other operations:
Percentage Change
(in millions) 2011 2010 2009 2011 vs. 2010 2010 vs. 2009
Mortgage Guaranty $ (73) $ 373 $ (1,688) NM% NM%
Global Capital Markets (7) 193 603 NM (68)
Direct Investment book 622 1,242 1,506 (50) (18)
Retained interests:
Change in the fair value of the MetLife
securities prior to their sale (157) 665 - NM NM
Change in fair value of AIA securities 1,289 (638) - NM NM
Change in fair value of ML III(a) (646) 1,792 419 NM 328
Corporate & Other:
Interest expense on FRBNY Credit Facility(b) (72) (4,107) (10,381) 98 60
Other interest expense (2,001) (2,380) (2,676) 16 11
Other corporate expenses (703) (1,370) (3,253) 49 58
Loss on extinguishment of debt (2,847) (104) - NM NM
Net realized capital gains (losses) (30) 500 750 NM (33)
Net gain (loss) on sale of divested businesses (74) 17,098 (1,271) NM NM
Total Corporate & Other (5,727) 9,637 (16,831) NM NM
Divested businesses -2,540 2,159 NM 18
Consolidation and eliminations -89 (361) NM NM
Total Other operations $ (4,699) $ 15,893 $ (14,193) NM% NM%
(a) Corporate & Other contributed its equity interest in ML III to an AIG subsidiary reported above, during the second quarter of 2009.
(b) Includes interest expense of $2 million, $75 million and $89 million for 2011, 2010 and 2009, respectively, allocated to discontinued operations
in consolidation.
Mortgage Guaranty
The main business of the subsidiaries of UGC is the issuance of residential mortgage guaranty insurance, both
domestically, and to a lesser extent, internationally, that covers mortgage lenders from the first loss for credit
defaults on high loan-to-value conventional first-lien mortgages for the purchase or refinance of one- to
four-family residences.
The following table presents pre-tax income for Mortgage Guaranty:
Percentage Change
Years Ended December 31,
(in millions) 2011 2010 2009 2011 vs. 2010 2010 vs. 2009
Underwriting results:
Net premiums written $ 801 $ 756 $ 911 6% (17)%
(Increase) decrease in unearned premiums (9) 219 119 NM 84
Net premiums earned 792 975 1,030 (19) (5)
Claims and claims adjustment expenses incurred 834 500 2,869 67 (83)
Underwriting expenses 183 295 2 (38) NM
Underwriting profit (loss) (225) 180 (1,841) NM NM
Investing and other results:
Net investment income 132 149 168 (11) (11)
Net realized capital gains (losses) 20 44 (15) (55) NM
Pre-tax income (loss) $ (73) $ 373 $ (1,688) NM% NM%
116 AIG 2011 Form 10-K