AIG 2011 Annual Report Download - page 85

AIG presents and discusses its financial information in the following manner, which it believes is most
meaningful to its financial statement users. AIG analyzes the operating performance of its segments as follows:
• Chartis — underwriting profit (loss), which is derived by reducing net premiums earned by claims and claims
adjustment expenses incurred and underwriting expenses, and is before net investment income, net realized
capital gains (losses), bargain purchase gain and other income (expense) – net;
• SunAmerica and Aircraft Leasing — Operating income (loss), which is before net realized capital gains
(losses) and related DAC and SIA amortization; and
• Results from discontinued operations and net gains (losses) on sales of divested businesses are excluded
from these measures.
AIG believes that these measures allow for a better assessment and enhanced understanding of the operating
performance of each business by highlighting the results from ongoing operations and the underlying profitability
of its businesses. When such measures are disclosed, reconciliations to GAAP pre-tax income are provided.
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. See Note 3 to the Consolidated Financial
Statements for additional information on AIG’s segment changes.
Prior period amounts were reclassified to conform to the current period presentation for the above items.
Additionally, certain other reclassifications have been made to prior period amounts in the Consolidated
Statement of Operations and Consolidated Balance Sheet to conform to the current period presentation.
The following table summarizes the operations of each reportable segment. See also Note 3 to the Consolidated
Financial Statements.
Percentage Change
Years Ended December 31,
(in millions) 2011 2010 2009 2011 vs. 2010 2010 vs. 2009
Total revenues:
Chartis $ 40,702 $ 37,196 $ 35,023 9% 6%
SunAmerica 15,315 14,747 11,366 4 30
Aircraft Leasing 4,457 4,718 4,992 (6) (5)
Total reportable segments 60,474 56,661 51,381 7 10
Other Operations 4,079 21,405 25,264 (81) (15)
Consolidation and eliminations (316) (540) (1,198) 41 55
Total 64,237 77,526 75,447 (17) 3
Pre-tax income (loss):
Chartis 1,698 (116) 164 NM NM
SunAmerica 2,910 2,712 (1,179) 7 NM
Aircraft Leasing (1,005) (729) 1,385 (38) NM
Total reportable segments 3,603 1,867 370 93 405
Other Operations (4,699) 15,893 (14,193) NM NM
Consolidation and eliminations 31 176 (484) (82) NM
Total $ (1,065) $ 17,936 $ (14,307) NM% NM%
Chartis Operations
Chartis is a leading property-casualty and general insurance organization with over 44,000 employees serving
more than 70 million clients around the world. During 2011, Chartis completed a 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. Previously, Chartis presented its financial information
AIG 2011 Form 10-K 71
SEGMENT RESULTS