AIG 2011 Annual Report Download - page 248

American International Group, Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents Chartis operations by operating segment:
Commercial Consumer Total
(in millions) Insurance Insurance Other 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.
234 AIG 2011 Form 10-K