AIG 2013 Annual Report Download - page 21

In this Annual Report on Form 10-K, unless otherwise mentioned or unless the context indicates
otherwise, we use the terms ‘‘AIG,’’ the ‘‘Company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ to refer to American
International Group, Inc., a Delaware corporation, and its consolidated subsidiaries. We use the term
‘‘AIG Parent’’ to refer solely to American International Group, Inc., and not to any of its consolidated
subsidiaries.
AIG’s Global Insurance Operations
We earn revenues primarily from insurance premiums, policy fees from universal life insurance and investment
products, income from investments and advisory fees.
Our operating expenses consist of policyholder benefits and claims incurred, interest credited to policyholders,
commissions and other costs of selling and servicing our products, and general business expenses.
Our profitability is dependent on our ability to price and manage risk on insurance and annuity products, to manage
our portfolio of investments effectively, and to control costs through expense discipline.
Mortgage Guaranty (United Guaranty Corporation or UGC), is a leading provider of private residential mortgage
guaranty insurance (MI). MI covers mortgage lenders for the first loss from mortgage defaults on high
loan-to-value conventional first-lien mortgages. By providing this coverage, UGC enables mortgage lenders to
remain competitive and enables individuals to purchase a house with a lower down payment.
Other Operations also include Global Capital Markets, Direct Investment book, Corporate & Other and Aircraft
Leasing.
HOW WE GENERATE REVENUES AND PROFITABILITY
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AIG 2013 Form 10-K 3
ITEM 1 / BUSINESS / AIG
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AIG Property Casualty AIG Life and Retirement
AIG Property Casualty is a leading provider of AIG Life and Retirement is a premier provider of
insurance products for commercial, institutional and protection, investment and income solutions for
individual customers through one of the world’s most financial and retirement security. It is among the
far-reaching property casualty networks. AIG Property largest life insurance, annuity and retirement services
Casualty offers one of the industry’s most extensive businesses in the United States. With one of the
ranges of products and services, through its broadest distribution networks and most diverse
diversified, multichannel distribution network, product offerings in the industry, AIG Life and
benefitting from its strong capital position. Retirement helps to ensure financial and retirement
security for more than 18 million customers.
During the first quarter of 2013, AIG Life and
Retirement implemented its previously announced
changes reflecting its new structure and now presents
its operating results in two operating segments —
Retail and Institutional. All prior period amounts
presented have been revised to reflect the new
structure.
Other Operations