AIG 2008 Annual Report Download - page 77

Segment Results
The following table summarizes the operations of each operating segment. See also Note 3 to the
Consolidated Financial Statements.
2008 2007 2006 2008 vs. 2007 2007 vs. 2006
Years Ended December 31, Percentage Increase/(Decrease)
(In millions)
Total Revenues:
General Insurance .............. $ 44,676 $ 51,708 $ 49,206 (14)% 5%
Life Insurance & Retirement
Services.................... 3,054 53,570 50,878 (94) 5
Financial Services .............. (31,095) (1,309) 7,777 — —
Asset Management ............. (4,526) 5,625 4,543 — 24
Other ....................... (81) 457 483 — (5)
Consolidation and eliminations .... (924) 13 500 — (97)
Total .......................... $ 11,104 $110,064 $113,387 (90) (3)
Net realized capital gains (losses):
General Insurance .............. $ (5,023) $ (106) $ 59 — —
Life Insurance & Retirement
Services.................... (44,347) (2,398) 88 — —
Financial Services .............. (498) (100) (133) — —
Asset Management ............. (8,758) (1,000) (125) — —
Other ....................... 3,142 12 217 — (95)
Total .......................... $ (55,484) $ (3,592) $ 106 — —
Operating Income (loss):
General Insurance .............. $ (5,746) $ 10,526 $ 10,412 — 1
Life Insurance & Retirement
Services.................... (37,446) 8,186 10,121 — (19)
Financial Services .............. (40,821) (9,515) 383 — —
Asset Management ............. (9,187) 1,164 1,538 — (24)
Other ....................... (15,055) (2,140) (1,435) — —
Consolidation and eliminations .... (506) 722 668 — 8
Total .......................... $(108,761) $ 8,943 $ 21,687 —% (59)%
General Insurance Operations
AIG’s General Insurance subsidiaries are multiple line companies writing substantially all lines of property
and casualty insurance and various personal lines both domestically and abroad and constitute the AIG Property
Casualty Group (formerly known as Domestic General Insurance) and the Foreign General Insurance Group.
As previously noted, AIG believes it should present and discuss its financial information in a manner most
meaningful to its financial statement users. Accordingly, in its General Insurance business, AIG uses certain
regulatory measures, where AIG has determined these measurements to be useful and meaningful.
A critical discipline of a successful general insurance business is the objective to produce profit from
underwriting activities taking into account costs of capital. AIG views underwriting results to be critical in the
overall evaluation of performance.
Statutory underwriting profit is derived by reducing net premiums earned by net losses and loss expenses
incurred and net expenses incurred. Statutory accounting generally requires immediate expense recognition and
AIG 2008 Form 10-K 71
American International Group, Inc., and Subsidiaries