AIG 2014 Annual Report Download - page 242

ITEM 8 / NOTE 3. SEGMENT INFORMATION
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Property Casualty products are primarily distributed through a network of independent retail and wholesale brokers, and
through an independent agency network. Mortgage Guaranty products and services are provided to mortgage lenders
including mortgage banks, credit unions and finance agencies. Institutional Markets products are marketed primarily through
specialized marketing and consulting firms and structured settlement brokers.
Consumer Insurance
The Consumer Insurance segment is presented as three operating segments:
• Retirement – consists of the product lines Fixed Annuities, Retirement Income Solutions, Group Retirement, and Retail
Mutual Funds and Advisory Services, previously included in AIG Life and Retirement’s Retail and Institutional operating
segments.
• Life – consists of businesses previously included in AIG Life and Retirement’s Retail operating segment as well as the
international life business previously included in AIG Property Casualty’s Consumer operating segment.
• Personal Insurance – consists of Personal Lines and Accident & Health product lines previously reported as a component
of AIG Property Casualty’s Consumer operating segment.
Retirement and Life products are distributed through a unified multi-channel distribution network that includes banks, broker-
dealers, independent marking organizations, financial advisors, independent insurance agents and career agents. Personal
insurance products are distributed primarily through agents and brokers, as well as through direct marketing and partner
organizations.
Investment income is allocated between the Property Casualty and Personal Insurance operating segments based on an
internal investment income allocation model. The model estimates investable funds based primarily on loss reserves and
allocated capital.
The run-off insurance businesses previously reported in AIG Property Casualty’s Other category are now presented in
Corporate and Other.
Corporate and Other
Our Corporate and Other includes results from:
• Direct Investment book
• Global Capital Markets
• Retained Interests, which represent the fair value gains or losses, prior to their sale in 2012, of the AIA Group Limited (AIA)
ordinary shares retained following the AIA initial public offering; the MetLife, Inc. (MetLife) securities that were received as
consideration from the sale of American Life Insurance Company (ALICO); and the fair value gains or losses, prior to the
FRBNY liquidation of Maiden Lane III LLC (ML III) assets, on the retained interest in ML III
• AIG Parent, Run-off Insurance Lines, and Other, and
• Aircraft Leasing through May 14, 2014, the date of our sale of ILFC.
Certain of our management activities, such as investment management, enterprise risk management, liquidity management
and capital management, and our balance sheet reporting, are conducted on a legal entity basis. We group our insurance-
related legal entities into two categories: Non-Life Insurance Companies, and Life Insurance Companies.
Non-Life Insurance Companies include the following major property casualty and mortgage guaranty companies: National
Union Fire Insurance Company of Pittsburgh, Pa.(National Union); American Home Assurance Company (American Home);
Lexington Insurance Company (Lexington); Fuji Fire and Marine Insurance Company Limited (Fuji Fire); American Home
Assurance Company, Ltd. (American Home Japan); AIG Asia Pacific Insurance, Pte, Ltd.; AIG Europe Limited and United
Guaranty Residential Insurance Company (UGRIC).