AIG 2012 Annual Report Download - page 77

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PRE-TAX INCOME (LOSS) ($ millions)
$(93)
$1,820
$1,837
AIG PROPERTY CASUALTY
20112012 2010
$2,701
$2,956
$3,780
AIG LIFE AND RETIREMENT
20112012 2010
OTHER OPERATIONS
$17,611
2011
2010
2012
$(4,703)
$3,899
OPERATING INCOME (LOSS) ($ millions)
$(1,056)
2011
2010
2012
$1,218
$1,820
AIG PROPERTY CASUALTY
$4,056
2011 2010
2012
$3,277
$4,160
AIG LIFE AND RETIREMENT
$(491)
2011 2010
2012
$(1,774)
$4,124
OTHER OPERATIONS
Prior Period Revisions
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Prior period amounts have been revised to reflect the following:
Accounting for Deferred Acquisition Costs
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As discussed in Note 2 to the Consolidated Financial Statements, AIG retrospectively adopted an accounting
standard on January 1, 2012 that amended the accounting for costs incurred by insurance companies that can be
capitalized in connection with acquiring or renewing insurance contracts.
AIG Property Casualty Operating Segment Changes
..............................................................................................................................................................................................
To align financial reporting with changes made during 2012 to the manner in which AIG’s chief operating decision
makers review the businesses to assess performance and make decisions about resources to be allocated, certain
products previously reported in Commercial Insurance were reclassified to Consumer Insurance. These revisions did
not affect the total AIG Property Casualty reportable segment results previously reported.
In the fourth quarter of 2012, to increase the focus on the drivers of the losses and proactively mitigate reserve
development and legal costs, the management of certain environmental liability businesses written prior to 2004 was
moved from Commercial Insurance to a separate claims organization. To align financial reporting with the internal
management changes, this environmental (1987-2004) business is reported in the Other category. These revisions
did not affect our total reportable segment results previously reported.
Sale of ILFC and Discontinued Operations Presentation
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On December 9, 2012, AIG entered into an agreement to sell 80.1 percent of ILFC for approximately $4.2 billion in
cash, with an option for the purchaser to buy an additional 9.9 percent stake (the ILFC Transaction). The sale is
expected to close in 2013. At the closing of the transaction, in connection with the termination of intercompany
arrangements between AIG and ILFC, AIG will return $1.1 billion to ILFC. As a result, ILFC operating results, which
were previously presented in the Aircraft Leasing segment, have been classified as discontinued operations in all
periods, and associated assets and liabilities have been classified as held-for-sale at December 31, 2012. See
Note 4 to the Consolidated Financial Statements for further discussion.
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AIG 2012 Form 10-K60
ITEM 7 / EXECUTIVE SUMMARY