AIG 2015 Annual Report Download - page 79

ITEM 7 / RESULTS OF OPERATIONS
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Foreign Currency Impact
Property Casualty, International Life and Personal Insurance businesses are transacted in most major foreign
currencies. The following table presents the average of the quarterly weighted average exchange rates of the
currencies that have the most significant impact on our businesses:
Years Ended December 31, Percentage Change
Rate for 1 USD 2015 2014 2013 2015 vs. 2014 2014 vs. 2013
Currency:
JPY
120.82 104.43 95.86 16 % 9 %
EUR
0.89 0.75 0.76 19 % (1)%
GBP
0.65 0.61 0.64 7 % (5)%
Unless otherwise noted, references to the effects of foreign exchange in the Commercial Insurance and Consumer Insurance
discussion of results of operations are with respect to movements in the three currencies included in the preceding table (the
Major Currencies).
COMMERCIAL INSURANCE
Commercial Insurance Results
The following table presents Commercial Insurance results:
Years Ended December 31, Percentage Change
(in millions) 2015 2014 2013 2015 vs. 2014 2014 vs. 2013
Revenues:
Premiums $22,521 $22,221 $22,096 1 % 1 %
Policy fees 199 187 113 665
Net investment income 5,474 6,393 6,653 (14) (4)
Benefits and expenses:
Policyholder benefits and losses incurred 20,017 16,575 17,002 21 (3)
Interest credited to policyholder account balances 408 410 413 - (1)
Amortization of deferred policy acquisition costs 2,342 2,512 2,418 (7) 4
General operating and other expenses* 3,775 3,794 4,049 (1) (6)
Pre-tax operating income $1,652 $5,510 $4,980 (70)% 11 %
* Includes general operating expenses, commissions and other acquisition expenses.
Commercial Insurance Results by Operating Segment
Commercial Insurance presents its financial information in three operating segments – Property Casualty, Mortgage Guaranty
and Institutional Markets. The following section provides a comparative discussion of Commercial Insurance Results of
Operations for 2015, 2014 and 2013 by operating segment.