AIG 2011 Annual Report Download - page 26

The following table presents a reconciliation of premiums, deposits and other considerations to premiums:
Year Ended December 31,
(in millions) 2011
Premiums, deposits and other considerations $ 23,838
Deposits (21,376)
Other 51
Premiums $ 2,513
Aircraft Leasing operations include the results of ILFC (and, since the date of its acquisition by ILFC,
AeroTurbine, as discussed below). ILFC, one of the world’s leading aircraft lessors, acquires commercial jet
aircraft from various manufacturers and other parties and leases those aircraft to airlines around the world. ILFC
believes its scale, the breadth and mix of its aircraft portfolio and its long-standing relationships with a global
customer base that includes the majority of the world’s leading airlines allow it to lease aircraft under favorable
terms and maximize their utilization.
As of December 31, 2011, ILFC managed a lease portfolio of over 1,000 aircraft, including an owned fleet of
930 aircraft with a net book value of approximately $35.5 billion. ILFC reported $4.5 billion in revenues for 2011.
More than 94 percent of ILFC’s lease revenue came from non-U.S. carriers, and its fleet continues to be in high
demand from such carriers.
On September 2, 2011, ILFC Holdings, Inc., an indirect, wholly-owned subsidiary of AIG, which is intended to
become a holding company for ILFC, filed a registration statement on Form S-1 with the Securities and Exchange
Commission (SEC) for a proposed initial public offering. The number of shares to be offered, price range and
timing for any offering have not been determined. The timing of any offering will depend on market conditions
and no assurance can be given regarding the terms of any offering or that an offering will be completed. On
October 7, 2011, ILFC completed the acquisition of all the issued and outstanding shares of capital stock of
AeroTurbine from AerCap, Inc. for an aggregate cash purchase price of $228 million. AeroTurbine is one of the
world’s largest providers of certified aircraft engines, aircraft and engine parts and supply chain solutions.
ILFC continues to execute on its strategy to manage its fleet of aircraft by ordering new aircraft with high
customer demand and through potential sales or part-outs of its older aircraft which cannot be economically
leased to customers.
AIG’s Other operations include results from Mortgage Guaranty operations, Global Capital Markets operations,
Direct Investment book, Retained Interests, Corporate & Other operations (after allocations to AIG’s business
segments), and in periods prior to 2011, those divested businesses not included in Discontinued operations.
UGC’s main business is the issuance of residential mortgage guaranty insurance, both domestically and
internationally, that covers mortgage lenders for 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. UGC previously insured
second-lien and private student loans, but ceased insuring new business in these products in 2008, although certain
of the second-lien policies are subject to reinstatement.
Global Capital Markets consist of the operations of AIG Markets and the remaining derivatives portfolio of
AIGFP. AIG Markets acts as the derivatives intermediary between AIG companies and third parties, and executes
its derivative trades under International Swaps and Derivatives Association, Inc. (ISDA) agreements. The
12 AIG 2011 Form 10-K
AIRCRAFT LEASING
OTHER OPERATIONS
MORTGAGE GUARANTY
GLOBAL CAPITAL MARKETS