AIG 2012 Annual Report Download - page 85

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Results of Operations
The following section provides a comparative discussion of our Results of Operations on a reported basis for the
three-year period ended December 31, 2012. Factors that relate primarily to a specific business segment are
discussed in more detail within that business segment. For a discussion of the Critical Accounting Estimates that
affect the Results of Operations, see the Critical Accounting Estimates section of Item 7. MD&A, in this Annual
Report on Form 10-K.
The following table presents AIG’s condensed consolidated results of operations:
Revenues:
Premiums $ 38,990 $ 45,319 (3)% (14)%
Policy fees 2,705 2,710 3 –
Net investment income 14,755 20,934 38 (30)
Net realized capital gains (losses) 701 (716) 33 NM
Other income 2,661 4,582 35 (42)
Total revenues 59,812 72,829 10 (18)
Benefits, claims and expenses:
Policyholder benefits and claims incurred 33,450 41,392 (4) (19)
Interest credited to policyholder account
balances 4,467 4,487 (2) –
Amortization of deferred acquisition costs 5,486 5,821 4 (6)
Other acquisition and insurance expenses 8,458 10,163 9 (17)
Interest expense 2,444 6,742 (5) (64)
Net loss on extinguishment of debt 2,847 104 (100) NM
Net (gain) loss on sale of properties and
divested businesses 74 (19,566) (97) NM
Other expenses 2,470 3,439 10 (28)
Total benefits, claims and expenses 59,696 52,582 (6) 14
Income from continuing operations before
income tax expense (benefit) 116 20,247 NM (99)
Income tax expense (benefit) (19,424) 6,993 NM NM
Income from continuing operations 19,540 13,254 (60) 47
Income (loss) from discontinued operations,
net of income tax expense (benefit) 1,790 (969) NM NM
Net income 21,330 12,285 (83) 74
Less: Net income attributable to
noncontrolling interests 708 2,227 (63) (68)
Net income attributable to AIG $ 20,622 $ 10,058 (83)% 105%
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AIG 2012 Form 10-K68
Percentage Change
Years Ended December 31,
(in millions) 2012 2011 2010 2012 vs. 2011 2011 vs. 2010
$ 38,011
2,791
20,343
929
3,582
65,656
31,977
4,362
5,709
9,235
2,319
9
2
2,721
56,334
9,322
1,570
7,752
(4,052)
3,700
262
$ 3,438
ITEM 7 / RESULTS OF OPERATIONS