AIG 2014 Annual Report Download - page 74

ITEM 2 / EXECUTIVE OVERVIEW

57
The reclassifications and revisions affected previously reported captions as follows:
Years Ended December 31, 2013 2012
As As As As
Previously Increase Currently Previously Increase Currently
Reported (Decrease) Reported Reported (Decrease) Reported
Premiums $ 37,350 $ 149 $ 37,499 $ 38,047 $ 142 $ 38,189
Policy fees 2,535 (195) 2,340 2,349 (157) 2,192
Net realized capital gains (losses) 1,744 195 1,939 930 157 1,087
Other income 6,819 47 6,866 4,848 51 4,899
Total 48,448 196 - 48,644 46,174 193 46,367
General operating and other expenses 13,368 196 13,564 12,820 193 13,013
Net income attributable to AIG 9,085 - 9,085 3,438 - 3,438
Pre-tax operating income 9,561 (171) 9,390 10,082 (144) 9,938
After-tax operating income 6,762 (112) 6,650 6,635 (93) 6,542
Executive Summary
Financial Performance
Commercial Insurance pre-tax operating income increased in 2014 compared to 2013 primarily due to improved underwriting
results in the Property Casualty and Mortgage Guaranty operating segments partially offset by reduced net investment income
in the Property Casualty and Institutional Markets operating segments.
Consumer Insurance pre-tax operating income decreased in 2014 compared to 2013 primarily due to lower net investment
income, primarily from lower income from alternative investments, and additional reserves for IBNR death claims related to
continued enhancement of claims procedures. These items more than offset favorable performance from our businesses in
2014 compared to 2013, which included growth in policy fees and assets under management primarily from strong sales of
variable and index annuities in Retirement, effective crediting rate management, and higher underwriting income in Personal
Insurance, primarily from improved loss experience and lower general operating expenses.
Our investment portfolio performance improved in 2014 compared to 2013 due to positive performance on bonds for which
we elected the fair value option, driven by movements on interest rates.
Net realized capital gains declined in 2014 compared to 2013 due to lower capital gains from sales of investments related to
capital loss carryforward utilization and higher fair value losses on embedded derivatives related to variable annuity guarantee
features, net of hedges.
Our Performance – Selected Indicators
Years Ended December 31,
(in millions, except per share data and ratios) 2014 2013 2012
Results of operations data:
Total revenues $64,406 $ 68,874 $ 71,214
Income from continuing operations 7,574 9,008 3,699
Net income attributable to AIG 7,529 9,085 3,438
Net income per common share attributable to AIG (diluted) 5.20 6.13 2.04
After-tax operating income attributable to AIG 6,630 6,650 6,542
After-tax operating income per common share attributable
to AIG (diluted) 4.58 4.49 3.88