AIG 2013 Annual Report Download - page 313

AIG is responding to requests for information and documents by the New York Department of Financial Services
(NYDFS), the Manhattan District Attorney’s Office, and other governmental authorities relating to AIG’s formerly
wholly owned subsidiaries, ALICO and Delaware American Life Insurance Company (DelAm), and other related
business units, which were sold by AIG to MetLife in November 2010. The inquiries relate to whether ALICO, DelAm
and their representatives conducted insurance business in New York over an extended period of time without a
license, and whether certain representations by ALICO concerning its activities in New York were accurate. See
Guarantees — Asset Dispositions — ALICO Sale below.
Although we regularly review the adequacy of the established Liability for unpaid claims and claims adjustment
expense, there can be no assurance that our loss reserves will not develop adversely and have a material adverse
effect on our results of operations. Estimation of ultimate net losses, loss expenses and loss reserves is a complex
process, particularly for long-tail casualty lines of business, which include, but are not limited to, general liability,
commercial automobile liability, environmental, workers’ compensation, excess casualty and crisis management
coverages, insurance and risk management programs for large corporate customers and other customized structured
insurance products, as well as excess and umbrella liability, directors and officers and products liability. Generally,
actual historical loss development factors are used to project future loss development. However, there can be no
assurance that future loss development patterns will be the same as in the past. Moreover, any deviation in loss cost
trends or in loss development factors might not be identified for an extended period of time subsequent to the
recording of the initial loss reserve estimates for any accident year. There is the potential for reserves with respect to
a number of years to be significantly affected by changes in loss cost trends or loss development factors that were
relied upon in setting the reserves. These changes in loss cost trends or loss development factors could be
attributable to changes in global economic conditions, changes in the legal, regulatory, judicial and social
environment, changes in medical cost trends (inflation, intensity and utilization of medical services), underlying policy
pricing, terms and conditions, and claims handling practices.
We occupy leased space in many locations under various long-term leases and have entered into various leases
covering the long-term use of data processing equipment.
The following table presents the future minimum lease payments under operating leases:
2014 $ 348
2015 264
2016 217
2017 176
2018 127
Remaining years after 2018 345
Total $ 1,477
Rent expense was $414 million, $445 million and $482 million for the years ended December 31, 2013, 2012 and
2011, respectively. These amounts include $15 million, $16 million and $13 million attributable to businesses held for
sale for the years ended December 31, 2013, 2012 and 2011, respectively. The year ended December 31, 2011
includes $24 million for discontinued operations.
At December 31, 2013, ILFC had committed to purchase 335 new aircraft with aggregate estimated total remaining
payments of approximately $21.7 billion, which includes 12 aircraft through sale-leaseback transactions with airlines,
deliverable from 2014 through 2022. ILFC had also committed to purchase one used aircraft and nine new spare
engines. ILFC will be required to find lessees for any aircraft acquired and to arrange financing for a substantial
Other Contingencies
Liability for unpaid claims and claims adjustment expense
Commitments
Flight Equipment Related to Business Held for Sale
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AIG 2013 Form 10-K 295
ITEM 8 / NOTE 15. CONTINGENCIES, COMMITMENTS AND GUARANTEES
(in millions)
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