AIG 2011 Annual Report Download - page 75

attributable to corporate initiatives and efforts to continue improving internal controls and financial and operating
technology platforms.
On October 18, 2011, the Financial Stability Oversight Council (the FSOC) published a second notice of
proposed rulemaking and related interpretive guidance under Dodd-Frank regarding the designation of non-bank
systemically important financial institutions (SIFIs). The new proposal sets forth a three-stage determination
process for designating non-bank SIFIs. In Stage 1, FSOC would apply a set of uniform quantitative thresholds to
identify the nonbank financial companies that will be subject to further evaluation. Based on its financial condition
as of December 31, 2011, AIG would meet the criteria in Stage 1 and would be subject to further evaluation by
the FSOC in the SIFI determination process. Because Stages 2 and 3 as proposed would involve qualitative
judgment by the FSOC, AIG cannot predict whether it would be designated as a non-bank SIFI under the
proposed rule. See Item 1. Business — Regulation and Item 1A. Risk Factors for additional information.
The remainder of MD&A is organized as follows:
Index Page
Results of Operations 61
Consolidated Results 62
Segment Results 71
Chartis Operations 71
Liability for Unpaid Claims and Claims Adjustment Expense 85
SunAmerica Operations 106
Aircraft Leasing Operations 113
Other Operations 115
Capital Resources and Liquidity 122
Overview 122
Liquidity Adequacy Management 122
Analysis of Sources and Uses of Cash 123
Liquidity of Parent and Subsidiaries 124
Debt 131
Credit Facilities 133
Contractual Obligations 135
Off-Balance Sheet Arrangements and Commercial Commitments 137
Dividends from Insurance Subsidiaries 138
Regulation and Supervision 138
Investments 139
Investment Strategies 139
Impairments 153
Other-Than-Temporary Impairments 154
Enterprise Risk Management 158
Overview 158
Credit Risk Management 160
Market Risk Management 166
Operational Risk Management 168
Business Unit Risk Management 169
Critical Accounting Estimates 177
AIG has incorporated into this discussion a number of cross-references to additional information included
throughout this Annual Report on Form 10-K to assist readers seeking additional information related to a
particular subject.
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, AIG changed its segments in the third quarter of 2011. AIG now reports the results of its operations
AIG 2011 Form 10-K 61
RESULTS OF OPERATIONS