AIG 2013 Annual Report Download - page 98

The following table presents AIG Property Casualty results(*):
Commercial Insurance
Underwriting results:
Net premiums written $ 20,300 $ 21,055 3% (4)%
(Increase) decrease in unearned premiums 500 748 NM (33)
Net premiums earned 20,800 21,803 (1) (5)
Claims and claims adjustment expenses incurred 16,696 18,332 (11) (9)
Acquisition expenses 3,453 3,184 (4) 8
General operating expenses 2,543 2,136 2 19
Underwriting loss (1,892) (1,849) 95 (2)
Net investment income 2,769 3,118 (10) (11)
Pre-tax operating income $ 877 $ 1,269 173% (31)%
Consumer Insurance
Underwriting results:
Net premiums written $ 14,150 $ 13,762 (4)% 3%
Increase in unearned premiums (198) (7) (63) NM
Net premiums earned 13,952 13,755 (5) 1
Claims and claims adjustment expenses incurred 8,498 8,900 (8) (5)
Acquisition expenses 3,483 3,274 (3) 6
General operating expenses 2,130 1,979 (1) 8
Underwriting loss (159) (398) 65 60
Net investment income 451 354 (18) 27
Pre-tax operating income (loss) $ 292 $ (44) 9% NM%
Other
Underwriting results:
Net premiums written $ (14) $ 23 57% NM%
Decrease in unearned premiums 135 108 (31) 25
Net premiums earned 121 131 (28) (8)
Claims and claims adjustment expenses incurred 591 717 (98) (18)
Acquisition expenses – 6 NM NM
General operating expenses 466 266 (20) 75
Underwriting loss (936) (858) 68 (9)
Net investment income 1,560 781 54 100
Pre-tax operating income (loss) 624 (77) 236 NM
Net realized capital gains 211 957 80 (78)
Legal settlement 17 – (24) NM
Other income (expense) – net 2 (5) NM NM
Pre-tax income $ 854 $ 875 183% (2)%
Total AIG Property Casualty
Underwriting results:
Net premiums written $ 34,436 $ 34,840 –% (1)%
(Increase) decrease in unearned premiums 437 849 NM (49)
Net premiums earned 34,873 35,689 (3) (2)
Claims and claims adjustment expenses incurred 25,785 27,949 (12) (8)
Acquisition expenses 6,936 6,464 (3) 7
General operating expenses 5,139 4,381 (1) 17
Underwriting loss (2,987) (3,105) 85 4
Net investment income 4,780 4,253 10 12
Pre-tax operating income 1,793 1,148 168 56
Net realized capital gains 211 957 80 (78)
Legal settlement 17 – (24) NM
Other income (expense) – net 2 (5) NM NM
Pre-tax income $ 2,023 $ 2,100 154% (4)%
* Certain 2013 severance expenses totaling $263 million for AIG Property Casualty are included in AIG’s Other Operations. As these expenses are
related to an overall AIG initiative to centralize work streams into lower cost locations, and create a more streamlined organization, they have not
been allocated to the AIG Property Casualty segment.
AIG Property Casualty Results
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AIG 2013 Form 10-K80
ITEM 7 / RESULTS OF OPERATIONS / AIG PROPERTY CASUALTY
Percentage Change
Years Ended December 31,
(in millions) 2013 2012 2011 2013 vs. 2012 2012 vs. 2011
$ 20,842
(205)
20,637
14,828
3,329
2,582
(102)
2,500
$ 2,398
$ 13,552
(323)
13,229
7,799
3,376
2,109
(55)
372
$ 317
$(6)
93
87
12
–
373
(298)
2,395
2,097
380
13
(72)
$ 2,418
$ 34,388
(435)
33,953
22,639
6,705
5,064
(455)
5,267
4,812
380
13
(72)
$ 5,133
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