AIG 2009 Annual Report Download - page 236

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(which was sold on March 31, 2009), previously included within Commercial Insurance, are now classified as Non-core
insurance operations and included in AIG’s Other operations category. Prior period amounts have been revised to
conform to the current presentation. As a result of dispositions, only Mortgage Guaranty is still reporting ongoing
results of operations within Non-core insurance operations. Additionally, beginning in 2009 gains and losses on sales
of divested businesses are recorded within AIG’s other operations category.
In order to better align financial reporting with the manner in which AIG’s chief operating decision makers review
the businesses to make decision about resources to be allocated and to assess performance, during 2009, the following
changes were made to the Domestic Life Insurance & Retirement Services reportable segment and AIG’s Other
operations category. On September 5, 2009, AIG entered into an agreement to sell its investment advisory and third
party Institutional Asset Management businesses. This sale will exclude those asset management businesses providing
traditional fixed income asset and liability management for AIG’s insurance company subsidiaries and the AIG Global
Real Estate investment management business as well as proprietary real estate and private equity investments. AIG
expects to continue relationships with the divested businesses for other investment management services used by its
insurance company subsidiaries. As a result of the sale, results for these businesses are now included in AIG’s Other
operations category. Additionally, brokerage service commissions, other asset management fees, and investment
income from GICs previously reported in the Asset Management segment are now included in Domestic Life
Insurance & Retirement Services.
Additionally, beginning in 2009 Foreign General Insurance and Foreign Life Insurance & Retirement Services
results include the equity income (loss) from certain equity method investments, which were previously included as
part of AIG’s Other operations category.
Prior periods have been revised for the above changes.
The reportable segments and their respective operations are as follows:
General Insurance: AIG’s General Insurance subsidiaries write substantially all lines of commercial property and
casualty insurance and various personal lines both domestically and abroad. Revenues in the General Insurance
segment represent General Insurance net Premiums and other considerations earned, Net investment income and Net
realized capital gains (losses). AIG’s principal General Insurance operations are as follows:
Commercial Insurance writes substantially all classes of business insurance in the U.S. and Canada, accepting such
business mainly from insurance brokers.
AIG’s Foreign General insurance group writes both commercial and consumer lines of insurance through a network
of branches and foreign based insurance subsidiaries. Foreign General insurance group uses various marketing
methods and multiple distribution channels to write both commercial and consumer lines insurance with certain
refinements for local laws, customs and needs. Foreign General insurance group operates in Asia, the Pacific Rim,
Europe, the U.K., Africa, the Middle East and Latin America.
Each of the General Insurance operating segments is comprised of groupings of major products and services as
follows: Commercial Insurance is comprised of domestic commercial and personal lines insurance products and
services; and Foreign General is comprised of general insurance products and services sold overseas.
Life insurance & retirement services companies are comprised of two major groupings of products and services:
insurance-oriented products and services and retirement savings products and services.
Domestic Life Insurance & Retirement Services: AIG’s Domestic Life Insurance & Retirement Services segment is
comprised of several life insurance and retirement services businesses that market their products and services under
the brands of American General, AGLA, VALIC, Western National, SunAmerica Retirement Markets, SunAmerica
Mutual Funds, SunAmerica Affordable Housing Partners, FSC Securities, Royal Alliance and SagePoint Financial.
The businesses offer a comprehensive suite of life insurance, retirement savings products and guaranteed income
solutions through an established multi-channel distribution network that includes banks, national, regional and
independent broker-dealers, career financial advisors, wholesale life brokers, insurance agents and a
direct-to-consumer platform.
AIG 2009 Form 10-K 228