AIG 2010 Annual Report Download - page 249

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The reportable segments and their respective operations are as follows:
Chartis: AIG’s General Insurance subsidiaries, branded as Chartis, are multi-line companies writing
substantially all lines of property and casualty insurance in the U.S. and internationally. Revenues in Chartis
represent general insurance Premiums and other considerations, Net investment income and Net realized capital
gains (losses). AIG’s principal general insurance operations are as follows:
Chartis U.S. writes substantially all classes of business insurance in the U.S. and Canada accepting such business
mainly from insurance brokers.
Chartis International writes both commercial and consumer lines of insurance through a network of branches
and foreign based insurance subsidiaries. It also writes a small amount of life insurance (primarily traditional life
products), particularly in the newly acquired Japanese business, Fuji Fire & Marine Insurance Company Limited
(Fuji). Chartis International 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. Chartis
International is established around four regional centers, Asia Pacific, Emerging Markets, Europe and the Far
East.
Each of the Chartis operating segments is comprised of groupings of major products and services as follows:
Chartis U.S. is comprised of commercial and personal lines insurance products and services sold in the U.S. and
Canada; and Chartis International is comprised of general insurance products and services sold overseas.
SunAmerica: SunAmerica offers a comprehensive suite of products and services to individuals and groups
including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities,
mutual funds and financial planning. SunAmerica offers its products and services through a diverse, multi-channel
distribution network that includes banks, national, regional and independent broker-dealers, affiliated financial
advisors, independent marketing organizations, independent and career insurance agents, structured settlement
brokers, benefit consultants and direct-to-consumer platforms.
The SunAmerica segment is presented as two operating segments — Domestic Life Insurance, which focuses on
mortality and morbidity based protection products, and Domestic Retirement Services, which focuses on investment,
retirement savings and income solutions.
Financial Services: AIG’s Financial Services subsidiaries engage in diversified activities including commercial
aircraft leasing and the remaining Capital Markets’ portfolios, which are conducted through ILFC and AIGFP,
respectively. Following the classification of AGF as discontinued operations in the third quarter of 2010 (see
Note 4 to the Consolidated Financial Statements), AIG’s remaining consumer finance businesses are now reported
in AIG’s Other operations category as part of Divested businesses.
The remaining capital markets derivatives business continues to be reported in the Financial Services segment
as part of Capital Markets results.
Prior periods have been revised to conform to the current period presentation for the above changes.
Other Operations: AIG’s Other operations includes results from Parent & Other operations, after allocations to
AIG’s business segments, Mortgage Guaranty operations, Asset Management operations, and results from those
divested businesses not included in Discontinued operations.
AIG’s Parent & Other operations consist primarily of interest expense, intercompany interest income that is
eliminated in consolidation, restructuring costs, expenses of corporate staff not attributable to specific reportable
segments, expenses related to efforts to improve internal controls and the financial and operating platforms,
corporate initiatives, certain compensation plan expenses, corporate-level net realized capital gains and losses,
certain litigation-related charges and net gains and losses on sale of divested businesses and properties that did
not qualify for discontinued operations accounting treatment. In addition, fair value gains or losses on AIG’s
AIG 2010 Form 10-K 233