American International Group, Inc.

Transcription

1 Revisions to Quarterly Financial Supplements to reflect the effects of a change in accounting for deferred acquisition costs This report supplements the Quarterly Financial Supplements for the years 2011 and 2010 and should be read in conjunction with AIG s Annual Report on Form 10-K for the year ended December 31, 2011 filed with the Securities and Exchange Commission. All financial information in this document is unaudited.

2 SUMMARY OF REVISED REPORTING CHANGES Change in Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts The unaudited financial information contained in this financial supplement reflects the retrospective adoption of an accounting standard update on January 1, 2012 that amends the accounting for costs incurred by insurance companies that can be capitalized in connection with acquiring or renewing insurance contracts. All amounts contained in this financial supplement have been revised accordingly. Financial and other information included in AIG s earlier financial supplements for each of the quarters in the years 2011 and 2010 that is not affected by the adoption of the accounting standard and remains unchanged has been omitted from this financial supplement. Accordingly, readers of this financial supplement should also consult AIG s 2011 and 2010 quarterly financial supplements for financial and other information that is not affected by the adoption of the accounting standard. The following tables summarize the effect of the adoption of the accounting standard on Total AIG shareholders equity, Net income (loss) attributable to AIG and After-tax operating income (loss): (in millions) Impact to Total AIG Shareholders' Equity December 31, AIG Shareholders' equity as previously reported $ 104,951 $ 85,319 Impact of adoption of new standard on AIG Shareholders' equity (3,413) (6,463) AIG Shareholders' equity as currently reported $ 101,538 $ 78,856 Impact to Net Income (loss) Attributable to AIG 1Q11 2Q11 3Q11 4Q Q10 2Q10 3Q10 4Q Net income (loss) attributable to AIG as previously reported $ 269 $ 1,840 $ (4,109) $ 19,798 $ 17,798 $ 1,783 $ (2,656) $ (2,517) $ 11,176 $ 7,786 Impact of adoption of new standard on net income (loss) attributable to AIG 1,028 (4) 119 1,681 2, (206) (212) 2,677 2,272 Net income (loss) attributable to AIG as currently reported $ 1,297 $ 1,836 $ (3,990) $ 21,479 $ 20,622 $ 1,796 $ (2,862) $ (2,729) $ 13,853 $ 10,058 Impact to After Tax Operating Income (Loss) After Tax Operating Income (Loss) as previously reported $ 2,030 $ 1,276 $ (3,038) $ 1,558 $ 1,826 $ 637 $ 793 $ (114) $ (2,214) $ (898) Impact of adoption of new standard on After Tax Operating Income (Loss) 59 (36) (157) (66) (805) (958) After Tax Operating Income (Loss) as currently reported $ 2,089 $ 1,240 $ (2,996) $ 1,589 $ 1,922 $ 707 $ 636 $ (180) $ (3,019) $ (1,856) Segment Reporting Changes The historical Chartis financial information in this financial supplement has also been revised to reflect the reclassification of certain products that were previously reported in Commercial Insurance to Consumer Insurance. This change aligns financial reporting with the changes made during 2012 to the manner in which AIG s chief operating decision makers review the Chartis segment to assess performance and make decisions about resources to be allocated. These revisions did not affect the total Chartis segment results previously reported.

3 Effects of Adoption of Accounting Standard Full Year 2011 Full Year 2010 As Previously Effect of As Previously Effect of Reported Change As Revised Reported Change As Revised Statement of Operations: Total net realized capital gains (losses) $ 521 $ 20 $ 541 $ (175) $ 11 $ (164) Policyholder benefits and claims incurred 33, ,450 41,394 (2) 41,392 Interest credited to policyholder account balances 4, ,467 4, ,487 Amortization of deferred acquisition costs 8,019 (2,533) 5,486 9,134 (3,313) 5,821 Other acquisition and insurance expenses 6,091 2,367 8,458 6,775 3,388 10,163 Net loss (gain) on sale of properties and divested businesses (17,767) (1,799) (c) (19,566) Total benefits, claims and expenses 65,302 (144) 65,158 59,590 (1,719) 57,871 Income (loss) from continuing operations before income tax benefit (1,065) 164 (901) 17,936 1,730 19,666 Income tax expense (benefit) (18,036) (1,728) (a) (19,764) 5, (d) 6,736 Income (loss) from continuing operations 16,971 1,892 18,863 12, ,930 Income (loss) from discontinued operations, net of income tax expense 1, (b) 2,467 (2,064) 1,419 (e) (645) Net income 18,506 2,824 21,330 10,013 2,272 12,285 Net income attributable to AIG 17,798 2,824 20,622 7,786 2,272 10,058 Income (loss) per common share attributable to AIG - Diluted Book value per Common Share (1.80) (46.01) (a) Includes an adjustment to the deferred tax asset valuation allowance of $1.8 billion in the fourth quarter of (b) Represents an adjustment to the after-tax gain on the sale of Star and Edison in the first quarter of (c) Represents an adjustment to the pre-tax gain on the sale of AIA ordinary shares in the fourth quarter of (d) Includes the tax impact to the AIA gain adjustment of $1.0 billion in the fourth quarter of (e) Includes an adjustment to the after-tax gain on the sale of ALICO of $1.6 billion in the fourth quarter of 2010.

4 Revised Historical Quarterly Financial Supplement Contact: Liz Werner Investor Relations (212) Table of Contents. Page(s) Cautionary Statement Regarding Forward-Looking Information... 1 Non-GAAP Financial Measures... 2 Consolidated Results Consolidated Statement of Operations Consolidated Statement of Segment Operations After-tax Operating Income (Loss) Attributable to AIG Condensed Consolidating Balance Sheet STAT to GAAP reconciliation Debt and Capital Book Value per Common Share Chartis Chartis Operating Statistics Chartis - Operating Statistics by Business Chartis - Operating Statistics (U.S. & International) Worldwide Net Premiums Written by Line of Business & Region Net Premiums Written by Line of Business Chartis Notes SunAmerica Financial Group SunAmerica Financial Group Operating Statistics Domestic Life Insurance (American General) Operating Statistics Domestic Retirement Services Operating Statistics Domestic Retirement Services Product Statistics SunAmerica Financial Group Notes Other Other Operations Mortgage Guaranty Operating Statistics Parent Company Financial Statements Investment Information Net Realized Capital Gains (Losses)

5 Cautionary Statement Regarding Forward-Looking Information This Financial Supplement includes, and officers and representatives of (AIG) may from time to time make, projections, goals, assumptions and statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of These projections, goals, assumptions and statements are not historical facts but instead represent only AIG s belief regarding future events, many of which, by their nature, are inherently uncertain and outside AIG s control. These projections, goals, assumptions and statements include statements preceded by, followed by or including words such as believe, anticipate, expect, intend, plan, view, target or estimate. These projections, goals, assumptions and statements may address, among other things: the timing of the disposition of the ownership position of the United States Department of the Treasury (the Department of the Treasury) in AIG; the monetization of AIG s interests in International Lease Finance Corporation (ILFC); AIG s exposures to subprime mortgages, monoline insurers and the residential and commercial real estate markets, state and municipal bond issuers and sovereign bond issuers; AIG s exposure to European governments and European financial institutions; AIG s strategy for risk management; AIG s ability to retain and motivate its employees; AIG s generation of deployable capital; AIG s return on equity and earnings per share long-term aspirational goals; AIG s strategy to grow net investment income, efficiently manage capital and reduce expenses; AIG s strategy for customer retention, growth, product development, market position, financial results and reserves; and the revenues and combined ratios of AIG s subsidiaries. It is possible that AIG s actual results and financial condition will differ, possibly materially, from the results and financial condition indicated in these projections, goals, assumptions and statements. Factors that could cause AIG s actual results to differ, possibly materially, from those in the specific projections, goals, assumptions and statements include: actions by credit rating agencies; changes in market conditions; the occurrence of catastrophic events; significant legal proceedings; concentrations in AIG s investment portfolios, including its municipal bond portfolio; judgments concerning casualty insurance underwriting and reserves; judgments concerning the recognition of deferred tax assets; judgments concerning deferred policy acquisition costs (DAC) recoverability; judgments concerning the recoverability of aircraft values in ILFC s fleet; and such other factors as discussed in Part I, Item 1A. Risk Factors and throughout Part II, Item 7. Management s Discussion and Analysis of Financial Condition and Results of Operations in AIG s Annual Report on Form 10-K for the year ended December 31, AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any projections, goals, assumptions or other statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise. 1

6 Non-GAAP Financial Measures Throughout this financial supplement, AIG presents its operations in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use AIG s financial information in evaluating the performance of AIG. That presentation includes the use of certain non-gaap financial measures. The reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables. AIG believes that After-tax operating income (loss) permits a better assessment and enhanced understanding of the operating performance of its businesses by highlighting the results from ongoing operations and the underlying profitability of its businesses. After-tax operating income (loss) excludes net income (loss) from discontinued operations, net gain (loss) on sale of divested businesses, net income (loss) from divested businesses that did not qualify for discontinued operations accounting treatment, deferred income tax valuation allowance charges and releases, amortization of the Federal Reserve Bank of New York prepaid commitment fee asset, goodwill impairment charges arising from divestiture-related activities, net realized capital gains (losses), including the DAC offset for SunAmerica, non-qualifying derivative hedging activities and the bargain purchase gain on the Fuji acquisition. See pages 8 and 9 for the reconciliation of Net income (loss) attributable to AIG to After-tax operating income (loss). Additionally, in some cases, revenues, net income, operating income and related rates of performance are shown exclusive of the effect of tax benefits not obtained for losses incurred, the recognition of other-than-temporary impairments, restructuring-related activities, exchange of the Series C, E and F Preferred Stock, partnership income, other enhancements to income, credit valuation adjustments, unrealized market valuation gains (losses), the effect of catastrophe-related losses and prior year loss development, asbestos losses, returned or additional premiums related to prior year development, foreign exchange rates and aircraft impairments. In all such instances, AIG believes that excluding these items permits investors to better assess the performance of AIG s underlying businesses. AIG believes that providing information in a non-gaap manner is more useful to investors and analysts and more meaningful than the GAAP presentation. Although the investment of premiums to generate investment income (or loss) and realized capital gains or losses is an integral part of both life and general insurance operations, the determination to realize capital gains or losses is independent of the insurance underwriting process. Moreover, under applicable GAAP accounting requirements, losses can be recorded as the result of other than temporary declines in value without actual realization. In sum, investment income and realized capital gains or losses for any particular period are not indicative of underlying business performance for such period. Underwriting profit (loss) is utilized to report results for Chartis operations. Operating income (loss), which is before net realized capital gains (losses) and related DAC and sales inducement asset amortization and goodwill impairment charges, is utilized to report results for SunAmerica operations. Results from discontinued operations and net gains (losses) on sales of divested businesses are excluded from these measures. AIG believes that these measures allow for a better assessment and enhanced understanding of the operating performance of each business by highlighting the results from ongoing operations and the underlying profitability of its businesses. When such measures are disclosed, reconciliations to GAAP pre-tax income are provided. Life and retirement services production (premiums, deposits and other considerations and life insurance CPPE sales) is a non-gaap measure which includes life insurance premiums, deposits on annuity contracts and mutual funds. AIG uses this measure because it is a standard measure of performance used in the insurance industry and thus allows for more meaningful comparisons with AIG s insurance competitors. Additionally, the DAC offset adjustment is a common adjustment for non-gaap operating financial measures in the life insurance industry, and is a better measure of how AIG assesses the operating performance of SunAmerica s operations. 2

7 Consolidated Statement of Operations - Revised Historical 2011 Results (in millions, except per share data) 1Q11 2Q11 3Q11 4Q Revenues: Premiums $ 9,482 $ 9,898 $ 9,829 $ 9,781 $ 38,990 Policy fees ,705 Net investment income 5,569 4, ,594 14,755 Net realized capital gains (losses): (1) Total other-than-temporary impairments on available for sale securities (218) (181) (493) (324) (1,216) Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Accumulated other comprehensive income (loss) Net other-than-temporary impairments on available for sale securities recognized in net income (loss) (215) (125) (422) (286) (1,048) Other realized capital gains (losses) (433) ,589 Total net realized capital gains (losses) (page 51) (648) Aircraft leasing revenue 1,156 1,134 1,129 1,089 4,508 Other income (1) 1, ,758 Total revenues (1) 17,439 16,680 12,719 17,419 64,257 Benefits, claims and expenses: Policyholder benefits and claims incurred 8,959 8,086 8,333 8,072 33,450 Interest credited to policyholder account balances 1,106 1,114 1,146 1,101 4,467 Amortization of deferred acquisition costs 1,231 1,322 1,540 1,393 5,486 Other acquisition and insurance expenses 1,968 2,129 2,067 2,294 8,458 Interest expense 1, ,871 Aircraft leasing expenses , ,974 Loss (gain) on extinguishment of debt (2) 3, (484) 2,908 Net loss (gain) on sale of properties and divested businesses (2) 74 Other expenses ,470 Total benefits, claims and expenses 18,749 14,886 16,989 14,534 65,158 Income (loss) from continuing operations before income tax benefit (1,310) 1,794 (4,270) 2,885 (901) Income tax benefit (226) (296) (665) (18,577) (19,764) Income (loss) from continuing operations (1,084) 2,090 (3,605) 21,462 18,863 Income (loss) from discontinued operations, net of income tax benefit 2,585 (37) (221) 140 2,467 Net income (loss) 1,501 2,053 (3,826) 21,602 21,330 Less: Net income (loss) from continuing operations attributable to noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests Other (55) Total net income from continuing operations attributable to noncontrolling interests Net income from discontinued operations attributable to noncontrolling interests Total net income attributable to noncontrolling interests Net income (loss) attributable to AIG $ 1,297 $ 1,836 $ (3,990) $ 21,479 $ 20,622 Net income (loss) attributable to AIG common shareholders $ 485 $ 1,836 $ (3,990) $ 21,479 $ 19,810 Income (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ (1.34) $ 1.03 $ (1.99) $ $ 9.65 Income (loss) from discontinued operations $ 1.65 $ (0.03) $ (0.11) $ 0.07 $ 1.36 Diluted: Income (loss) from continuing operations $ (1.34) $ 1.03 $ (1.99) $ $ 9.65 Income (loss) from discontinued operations $ 1.65 $ (0.03) $ (0.11) $ 0.07 $ 1.36 Weighted average shares outstanding: Basic 1, , , , ,799.4 Diluted 1, , , , ,799.5 Notes: (1) Includes gains (losses) from hedging activities that did not qualify for hedge accounting, including the related foreign exchange gains and losses and other-than-temporary impairment charges. (2) Reflects a $3.3 billion charge in 1Q11, primarily consisting of the accelerated amortization of the prepaid commitment fee asset resulting from the termination of the FRBNY Credit Facility on January 14,

8 Consolidated Statement of Operations - Revised Historical 2010 Results (in millions, except per share data) 1Q10 2Q10 3Q10 4Q Revenues: Premiums $ 10,914 $ 11,073 $ 11,966 $ 11,366 $ 45,319 Policy fees ,710 Net investment income 5,200 5,041 5,231 5,462 20,934 Net realized capital gains (losses): Total other-than-temporary impairments on available for sale securities (200) (738) (459) (315) (1,712) Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Accumulated other comprehensive income (loss) (459) 209 (345) (217) (812) Net other-than-temporary impairments on available for sale securities recognized in net income (loss) (659) (529) (804) (532) (2,524) Other realized capital gains (losses) ,840 2,360 Total net realized capital gains (losses) (page 52) (329) (483) (660) 1,308 (164) Aircraft leasing revenue 1,243 1,180 1,186 1,140 4,749 Other income ,060 1,195 3,989 Total revenues 18,560 18,318 19,456 21,203 77,537 Benefits, claims and expenses: Policyholder benefits and claims incurred 8,593 8,740 10,050 14,009 41,392 Interest credited to policyholder account balances 1,107 1,132 1,122 1,126 4,487 Amortization of deferred acquisition costs 1,376 1, ,963 5,821 Other acquisition and insurance expenses 2,223 2,598 3,924 1,418 10,163 Interest expense 1,751 1,734 2,310 2,186 7,981 Aircraft leasing expenses 1, ,031 1,379 4,050 Loss on extinguishment of debt Net loss (gain) on sale of properties and divested businesses (1) 73 (205) (4) (19,430) (19,566) Other expenses 749 1, ,439 Total benefits, claims and expenses 16,876 17,083 19,277 4,635 57,871 Income from continuing operations before income tax expense (benefit) 1,684 1, ,568 19,666 Income tax expense (benefit) (465) ,755 6,736 Income (loss) from continuing operations 2, (356) 10,813 12,930 Income (loss) from discontinued operations, net of income tax expense (benefit) 295 (2,645) (1,869) 3,574 (645) Net income (loss) 2,444 (2,321) (2,225) 14,387 12,285 Less: Net income from continuing operations attributable to noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests ,818 Other Total net income from continuing operations attributable to noncontrolling interests ,173 Net income from discontinued operations attributable to noncontrolling interests Total net income attributable to noncontrolling interests ,227 Net income (loss) attributable to AIG $ 1,796 $ (2,862) $ (2,729) $ 13,853 $ 10,058 Net income (loss) attributable to AIG common shareholders $ 363 $ (2,862) $ (2,729) $ 2,848 $ 2,046 Income (loss) per common share attributable to AIG common shareholders: Basic: Income (loss) from continuing operations $ 2.26 $ (1.52) $ (6.23) $ $ Income (loss) from discontinued operations $ 0.42 $ (19.56) $ (13.85) $ 5.28 $ (1.04) Diluted: Income (loss) from continuing operations $ 2.26 $ (1.52) $ (6.23) $ $ Income (loss) from discontinued operations $ 0.42 $ (19.56) $ (13.85) $ 5.28 $ (1.04) Weighted average shares outstanding: Basic Diluted Notes: (1) Primarily consists of gain on sale of AIA ordinary shares in 4Q

9 Consolidated Statement of Segment Operations - Revised Historical 2011 Results (in millions, except per share data) 1Q11 2Q11 3Q11 4Q Chartis Net premiums written $ 9,166 $ 9,167 $ 8,659 $ 7,848 $ 34,840 Net premiums earned 8,651 9,033 9,043 8,962 35,689 Claims and claims adjustment expenses incurred 7,756 6,680 6,838 6,675 27,949 Underwriting expenses 2,498 2,712 2,737 2,923 10,870 Underwriting loss (1,603) (359) (532) (636) (3,130) Net investment income 1,179 1,142 1,024 1,003 4,348 Operating income (loss) (424) ,218 Net realized capital gains Other loss (1) - - (1) (4) (5) Pre-tax income (loss) (374) ,820 SunAmerica Financial Group Premiums ,513 Policy fees ,705 Net investment income 2,754 2,461 2,295 2,372 9,882 Other income (2) Total revenues 4,059 3,805 3,544 3,901 15,309 Benefits and expenses 2,888 3,082 3,073 2,989 12,032 Operating income 1, ,277 Benefit (amortization) of DAC, VOBA and SIA related to net realized capital gains (losses) 16 (48) (163) (132) (327) Net realized capital gains (losses) (220) Pre-tax income ,956 Aircraft Leasing Revenues 1,156 1,134 1,129 1,048 4,467 Expenses 1,039 1,048 2, ,462 Operating income (loss) (1,317) 119 (995) Net realized capital gains (losses) 3 1 (12) (2) (10) Pre-tax income (loss) (1,329) 117 (1,005) Other operations, operating income (loss) 2, (4,242) 977 (1,014) Other operations pre-tax income (loss) before net realized capital gains (losses) (1,562) 112 (4,244) 979 (4,715) Other operations, net realized capital gains (losses) (435) (25) Consolidation and elimination adjustments (26) (78) 31 Income (loss) from continuing operations before income tax expense (benefit) (1,310) 1,794 (4,270) 2,885 (901) Income tax benefit (3) (226) (296) (665) (18,577) (19,764) Income (loss) from continuing operations (1,084) 2,090 (3,605) 21,462 18,863 Income (loss) from discontinued operations, net of tax 2,585 (37) (221) 140 2,467 Net income (loss) 1,501 2,053 (3,826) 21,602 21,330 Less: Net income (loss) from continuing operations attributable to noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests Other (55) Total net income from continuing operations attributable to noncontrolling interests Net income from discontinued operations attributable to noncontrolling interests Total net income attributable to noncontrolling interests Net income (loss) attributable to AIG $ 1,297 $ 1,836 $ (3,990) $ 21,479 $ 20,622 Income (loss) per common share attributable to AIG common shareholders - diluted: Income (loss) from continuing operations $ (1.34) $ 1.03 $ (1.99) $ $ 9.65 Income (loss) from discontinued operations $ 1.65 $ (0.03) $ (0.11) $ 0.07 $ 1.36 Effective tax rates (page 8): Income (loss) from continuing operations 17.3% (16.5)% 15.6% N/M N/M See Accompanying Notes on Page 7 5

10 Consolidated Statement of Segment Operations - Revised Historical 2010 Results (in millions, except per share data) 1Q10 2Q10 3Q10 4Q Chartis Net premiums written $ 7,644 $ 7,792 $ 8,598 $ 7,578 $ 31,612 % Net premiums earned 7,641 7,733 8,597 8,550 32,521 Claims and claims adjustment expenses incurred 5,459 5,575 6,109 10,724 27,867 Underwriting expenses 2,301 2,543 2,522 2,736 10,102 Underwriting loss (119) (385) (34) (4,910) (5,448) Net investment income 1,071 1,113 1,007 1,201 4,392 Operating income (loss) (3,709) (1,056) Net realized capital gains (losses) (206) (36) (38) Other income ,001 Pre-tax income (loss) 1, (3,076) (93) SunAmerica Financial Group Premiums ,520 Policy fees ,710 Net investment income 2,707 2,628 2,656 2,777 10,768 Total revenues 4,022 3,943 3,924 4,109 15,998 Benefits and expenses 2,898 3,115 2,902 3,027 11,942 Operating income 1, ,022 1,082 4,056 Benefit (amortization) of DAC, VOBA and SIA related to net realized capital gains (losses) (8) 179 (45) (230) (104) Net realized capital gains (losses) (796) (966) (1,251) Pre-tax income ,343 2,701 Aircraft Leasing Revenues 1,243 1,180 1,186 1,140 4,749 Expenses 1, ,404 1,746 5,447 Operating income (loss) (56) 182 (218) (606) (698) Net realized capital gains (losses) (25) (9) 4 (1) (31) Pre-tax income (loss) (81) 173 (214) (607) (729) Other operations, operating income (loss) 141 (349) (415) 25 (598) Other operations pre-tax income (loss) before net realized capital gains (losses) (51) (88) (1,123) 17,965 16,703 Other operations, net realized capital gains (losses) (473) Consolidation and elimination adjustments (89) (84) Income from continuing operations before income tax expense (benefit) 1,684 1, ,568 19,666 Income tax expense (benefit) (465) ,755 6,736 Income (loss) from continuing operations 2, (356) 10,813 12,930 Income (loss) from discontinued operations, net of tax 295 (2,645) (1,869) 3,574 (645) Net income (loss) 2,444 (2,321) (2,225) 14,387 12,285 Less: Net income from continuing operations attributable to noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests ,818 Other Total net income from continuing operations attributable to noncontrolling interests ,173 Net income from discontinued operations attributable to noncontrolling interests Total net income attributable to noncontrolling interests ,227 Net income (loss) attributable to AIG $ 1,796 $ (2,862) $ (2,729) $ 13,853 $ 10,058 Income (loss) per common share attributable to AIG common shareholders - diluted: Income (loss) from continuing operations $ 2.26 $ (1.52) $ (6.23) $ $ Income (loss) from discontinued operations $ 0.42 $ (19.56) $ (13.85) $ 5.28 $ (1.04) Effective tax rates (page 9): Income (loss) from continuing operations (27.6)% 73.8% NM 34.7% 34.3% See Accompanying Notes on Page 7 6

11 Consolidated Statement of Segment Operations Notes (1) See Page 33 for additional information on Chartis Other operating results. (2) Other income includes revenue recorded pursuant to legal settlements. (3) Reflects valuation allowance release of $19.5 billion in 4Q11 as the cumulative positive evidence outweighed the historical negative evidence regarding the likelihood that the deferred tax asset for AIG s U.S. consolidated income tax group (other than life-insurance-business capital loss carryforwards) will be realized. (4) Return on equity computations are presented below: Full Year 1Q11 2Q11 3Q11 4Q Annualized After-tax operating income (loss) attributable to AIG $ 8,356 $ 4,960 $ (11,984) $ 6,356 $ 1,922 Average AIG Shareholders' equity $ 79,252 $ 83,444 $ 84,076 $ 91,225 $ 85,639 Less: Average AOCI 7,207 7,941 7,480 5,551 6,906 Average AIG Shareholders' equity, excluding AOCI $ 72,045 $ 75,503 $ 76,596 $ 85,674 $ 78,733 ROE - After-tax operating income (a) 11.6% 6.6% N/M 7.4% 2.4% Average AIG Shareholders' equity, excluding AOCI and valuation allowance release $ 76,521 $ 75,072 ROE - After-tax operating income, excluding valuation allowance release (b) N/A N/A N/A 8.3% 2.6% Full Year 1Q10 2Q10 3Q10 4Q Annualized After-tax operating income (loss) attributable to AIG $ 2,828 $ 2,544 $ (720) $ (12,076) $ (1,856) Average AIG Shareholders' equity $ 63,436 $ 66,326 $ 69,002 $ 75,247 $ 68,746 Less: Average AOCI 5,876 8,145 13,811 12,760 9,383 Average AIG Shareholders' equity, excluding AOCI $ 57,560 $ 58,181 $ 55,191 $ 62,487 $ 59,363 ROE - After-tax operating income (a) 4.9% 4.4% N/M N/M N/M N/M - Not meaningful (a) Computed as Actual or Annualized After-tax operating income (loss) divided by Average AIG Shareholders' equity, excluding AOCI. (b) Computed as Actual or Annualized After-tax operating income (loss) divided by Average AIG Shareholders' equity, excluding AOCI and valuation allowance release. 7

12 After-tax Operating Income (Loss) Attributable to AIG - Revised Historical 2011 Results (in millions, except share data) 1Q11 2Q11 3Q11 4Q Net income (loss) attributable to AIG $ 1,297 $ 1,836 $ (3,990) $ 21,479 $ 20,622 Adjustments to arrive at After-tax operating income (loss) attributable to AIG (amounts net of tax): Net income (loss) from discontinued operations 2,578 (49) (221) 140 2,448 Net gain (loss) on sale of divested businesses (47) (1) (1) 1 (48) Net income (loss) from divested businesses Deferred income tax valuation allowance (charge)/release (529) 588 (1,162) 19,410 18,307 Amortization of FRBNY prepaid commitment fee asset (2,358) (2,358) Net realized capital gains (losses) (384) SunAmerica DAC offset related to net realized capital gains (losses) 11 (28) (102) (83) (202) Non-qualifying derivative hedging activities, excluding net realized capital gains (losses) (69) After-tax operating income (loss) attributable to AIG $ 2,089 $ 1,240 $ (2,996) $ 1,589 $ 1,922 After-tax operating income (loss) attributable to AIG per diluted share $ 1.34 $ 0.68 $ (1.58) $ 0.84 $ 1.07 Effective tax rates on After-tax operating income (loss) attributable to AIG (a): 26.8% 15.4% 41.1% 24.2% (14.3)% Return on equity - After-tax operating income (loss) (page 7) 11.6% 6.6% N/M 7.4% 2.4% (a) The reconciliation of income attributable to AIG After-tax operating income (loss) and calculation of the effective tax rates is presented below (gains are negative and losses are positive). Three Months Ended December 31, 2011 Twelve Months Ended December 31, 2011 Income (loss) Income Tax Net Noncontrolling Net Income (loss) Effective Income (loss) Income Tax Net Noncontrolling Before Tax (Expense) Benefit Income (loss) Interests attributable to AIG Tax Rate (1) Before Tax (Expense) Benefit Income (loss) Interests Net Income (loss) attributable to AIG Income (loss) from continuing operations $ 2,885 $ 18,577 $ 21,462 $ (123) $ 21,339 N/M $ $ (901) $ 19,764 $ 18,863 $ (689) $ 18,174 N/M Net gains / losses on sale of divested business (2) 1 (1) - (1) 74 (26) Net income from divested businesses (16) - (16) - (16) Deferred income tax valuation allowance charge - (19,410) (19,410) - (19,410) - (18,307) (18,307) - (18,307) Amortization of FRBNY prepaid commitment fee asset ,627 (1,269) 2,358-2,358 Net realized capital gains / losses net of SunAmerica DAC offset (573) 267 (2) (306) 2 (304) (214) 68 (2) (146) (8) (154) Non-qualifying derivative hedging gains / losses (53) 18 (35) - (35) (278) 97 (181) - (181) After-tax operating income (loss) $ 2,257 $ (547) $ 1,710 $ (121) $ 1, % $ 2,292 $ 327 $ 2,619 $ (697) $ 1,922 (14.3)% (1) Effective tax rates are calculated based on Income (loss) from continuing operations before tax. (2) Includes tax effect of pre-tax losses that are not deductible for tax purposes. Effective Tax Rate (1) 8

13 After-tax Operating Income (Loss) Attributable to AIG - Revised Historical 2010 Results (in millions, except share data) 1Q10 2Q10 3Q10 4Q Net income (loss) attributable to AIG $ 1,796 $ (2,862) $ (2,729) $ 13,853 $ 10,058 Adjustments to arrive at After-tax operating income (loss) attributable to AIG (amounts net of tax): Net income (loss) from discontinued operations 285 (2,658) (1,881) 3,555 (699) Net gain (loss) on sale of divested businesses (73) ,295 15,326 Net income (loss) from divested businesses ,552 Deferred income tax valuation allowance (charge)/release 847 (569) 50 (1,720) (1,392) Amortization of FRBNY prepaid commitment fee asset (415) (353) (779) (708) (2,255) Net realized capital gains (losses) (224) (483) (460) 318 (849) SunAmerica DAC offset related to net realized capital gains (losses) (9) 110 (28) (147) (74) Non-qualifying derivative hedging activities, excluding net realized capital gains (losses) (107) (96) (27) Bargain purchase gain After-tax operating income (loss) attributable to AIG $ 707 $ 636 $ (180) $ (3,019) $ (1,856) After-tax operating income allocated to Series C Preferred Stock $ (563) $ (508) $ - $ - $ - After-tax operating income (loss) applicable to Common Stock $ 144 $ 128 $ (180) $ (3,019) $ (1,856) After-tax operating income (loss) attributable to AIG per diluted share $ 1.05 $ 0.95 $ (1.32) $ (21.82) $ (13.59) Effective tax rates on After-tax operating income (loss) attributable to AIG (a): 31.9% 17.2% 78.8% 20.5% 78.5% Return on equity - After-tax operating income (loss) (page 7) 4.9% 4.4% N/M N/M N/M (a) The reconciliation of income attributable to AIG After-tax operating income (loss) and calculation of the effective tax rates is presented below (gains are negative and losses are positive). Three Months Ended December 31, 2010 Twelve Months Ended December 31, 2010 Income (loss) Income Tax Net Noncontrolling Net Income (loss) Effective Income (loss) Income Tax Net Noncontrolling Before Tax (Expense) Benefit Income (loss) Interests attributable to AIG Tax Rate (1) Before Tax (Expense) Benefit Income (loss) Interests Net Income (loss) attributable to AIG Income (loss) from continuing operations $ 16,568 $ (5,755) $ 10,813 $ (515) $ 10, % $ $ 19,666 $ (6,736) $ 12,930 $ (2,173) $ 10, % Net gains / losses on sale of divested business (19,430) 4,135 (15,295) - (15,295) (19,566) 4,240 (15,326) - (15,326) Net income from divested businesses (265) 38 (227) - (227) (1,949) 397 (1,552) - (1,552) Deferred income tax valuation allowance charge - 1,720 1,720-1,720-1,392 1,392-1,392 Amortization of FRBNY prepaid commitment fee asset 1,090 (382) ,471 (1,216) 2,255-2,255 Net realized capital gains / losses net of SunAmerica DAC offset (974) 850 (2) (124) (47) (171) (2) 972 (49) 923 Non-qualifying derivative hedging gains / losses (80) 28 (52) - (52) 42 (15) Bargain purchase gain (332) - (332) - (332) After-tax operating income (loss) $ (3,091) $ 634 $ (2,457) $ (562) $ (3,019) 20.5% $ 1,704 $ (1,338) $ 366 $ (2,222) $ (1,856) 78.5% (1) Effective tax rates are calculated based on Income (loss) from continuing operations before tax. (2) Includes tax effect of pre-tax losses that are not deductible for tax purposes. Effective Tax Rate (1) 9

14 Condensed Consolidating Balance Sheet - Revised Historical December 31, 2011 (in millions) SunAmerica Other Consolidation Chartis Financial Group Aircraft Leasing UGC Operations (4) & Eliminations (1) AIG Inc. Assets: Investments: Fixed maturity securities Bonds available for sale, at fair value $ 103,831 $ 154,912 $ - $ 3,027 $ 2,211 $ - $ 263,981 Bonds trading securities, at fair value (2) 88 1, ,692-24,364 Equity securities Common and preferred stock available for sale, at fair value 2, ,624 Common and preferred stock trading, at fair value Mortgage and other loans receivable, net of allowance 2,598 21, ,026 (10,429) 19,489 Flight equipment primarily under operating leases, net of accumulated depreciation , ,539 Other invested assets (3) 12,279 12, , ,744 Short-term investments 4,660 3,301 1,910 1,010 11,691-22,572 Total investments 126, ,725 37,540 4,041 58,686 (9,905) 410,438 Cash ,474 Premiums and other receivables, net of allowance 11,254 1, ,881 (890) 14,721 Reinsurance assets, net of allowance 25,538 1, ,211 Current and deferred income taxes 4,305 2,289 (158) (55) 20,794 (9,373) 17,802 Deferred policy acquisition costs 2,375 6, ,937 Other assets 7,211 3,658 1, ,293 (97,231) 20,389 Separate account assets, at fair value - 51, ,388 Total assets $ 177,707 $ 260,752 $ 39,038 $ 4,323 $ 187,904 $ (117,364) $ 552,360 Liabilities: Liability for unpaid claims and claims adjustment expense $ 88,211 $ - $ - $ 1,414 $ 1,691 $ (171) $ 91,145 Unearned premiums 23, ,465 Future policy benefits for life and accident and health insurance contracts 3,474 30, (25) 34,317 Policyholder contract deposits - 126, (78) 126,898 Other policyholder funds 4,180 2, ,691 Other liabilities 10,623 13,219 7, ,329 (13,224) 32,287 Long-term debt (page 13) 566 1,911 (6) 24,385-58,342 (9,951) 75,253 Separate account liabilities - 51, ,388 Total liabilities $ 130,290 $ 226,571 $ 31,431 $ 1,898 $ 74,703 $ (23,449) $ 441,444 Redeemable noncontrolling nonvoting, callable, junior preferred interests held by Department of Treasury ,427 8,427 Other redeemable noncontrolling interests Total redeemable noncontrolling interests ,494 8,523 AIG shareholders' equity: Preferred stock ,426 (8,427) - Common stock , ,345 (15,843) 4,766 Treasury stock, at cost (942) - (942) Additional paid-in capital 21,807 40,753 1,244 1,510 71,757 (55,284) 81,787 Accumulated earnings (deficit) 22,387 (11,398) 5, ,322 (14,587) 10,774 Accumulated other comprehensive income (loss) (5) 2,956 4,718 (22) 93 6,139 (8,731) 5,153 Total AIG shareholders' equity 47,258 34,173 7,507 2, ,047 (102,872) 101,538 Non-redeemable noncontrolling interests Total equity 47,388 34,181 7,607 2, ,201 (102,409) 102,393 Total liabilities and equity $ 177,707 $ 260,752 $ 39,038 $ 4,323 $ 187,904 $ (117,364) $ 552,360 Notes: (1) Segment amounts are presented on an AIG stand alone basis prior to intercompany eliminations. (2) Includes interest in Maiden Lane II of $1.3 billion reported in SunAmerica Financial Group and interest in Maiden Lane III of $5.7 billion, reported in Other Operations. (3) Includes AIG's 33% interest in AIA with a total carrying value of $12.4 billion and reported in Other Operations. (4) Primarily represents Parent Company (including the tax valuation allowance), Global Capital Markets, Direct Investment book, SAFG, Inc. (a non-operating holding company), and the AIA SPV. (5) For U.S. tax purposes, SunAmerica Financial Group has approximately $11.0 billion of gross unrealized gains in its available for sale portfolio which, if realized, can be used to reduce a portion of capital loss deferred tax asset totaling $20.7 billion. (6) Consists primarily of intercompany debt which is eliminated in consolidation. 10

15 Condensed Consolidating Balance Sheet - Revised Historical December 31, 2010 (in millions) SunAmerica Other Consolidation Chartis Financial Group Aircraft Leasing UGC Operations (5) & Eliminations (1) AIG Inc. Assets: Investments: Fixed maturity securities Bonds available for sale, at fair value $ 88,904 $ 128,347 $ - $ 3,214 $ 7,837 $ - $ 228,302 Bonds trading securities, at fair value (2) - 1, ,875-26,182 Equity securities Common and preferred stock available for sale, at fair value 3, ,581 Common and preferred stock trading, at fair value (3) ,651-6,652 Mortgage and other loans receivable, net of allowance 2,892 21, ,075 (11,349) 20,237 Flight equipment primarily under operating leases, net of accumulated depreciation , ,510 Other invested assets (4) 15,250 12, ,438 (2,470) 42,210 Short-term investments 11,799 19,144 3,058 1,024 8,713-43,738 Total investments 122, ,490 41,704 4,242 72,123 (13,819) 410,412 Cash ,558 Premiums and other receivables, net of allowance 11,864 1, ,938 (601) 15,713 Reinsurance assets, net of allowance 24,047 1, (1) 25,810 Deferred policy acquisition costs 2,099 7, ,431 Other assets 8,381 11, ,892 (85,656) 53,256 Separate account assets, at fair value - 54, ,432 Assets held for sale , ,961 Total assets $ 169,635 $ 259,217 $ 43,158 $ 5,454 $ 298,144 $ (100,035) $ 675,573 Liabilities: Liability for unpaid claims and claims adjustment expense $ 87,455 $ - $ - $ 2,438 $ 1,469 $ (211) $ 91,151 Unearned premiums 23, ,803 Future policy benefits for life and accident and health insurance contracts 2,867 28, (26) 31,268 Policyholder contract deposits - 121, ,373 Other policyholder funds 4,176 2, ,758 Other liabilities 7,696 17,001 7, ,398 (2,704) 37,194 Long-term debt (page 13) 193 2,235 (7) 27,720-87,216 (10,903) 106,461 Separate account liabilities - 54, ,432 Liabilities held for sale , ,923 Total liabilities $ 125,961 $ 225,773 $ 34,921 $ 3,216 $ 192,324 $ (13,832) $ 568,363 Redeemable noncontrolling interests AIG shareholders' equity: Preferred stock ,994 (28,011) 71,983 Common stock , ,349 (17,288) 368 Treasury stock, at cost (873) - (873) Additional paid-in capital 16,755 40,479 1,240 1,506 5,502 (55,799) 9,683 Accumulated earnings (deficit) 23,873 (10,623) 5, (38,666) 8,994 (9,848) Accumulated other comprehensive income (loss) (6) 2,013 3,477 (55) 52 22,604 (20,548) 7,543 Total AIG shareholders' equity 42,788 33,435 8,137 2, ,910 (112,652) 78,856 Non-redeemable noncontrolling interests ,223 27,920 Total equity 43,479 33,444 8,237 2, ,807 (86,429) 106,776 Total liabilities and equity $ 169,635 $ 259,217 $ 43,158 $ 5,454 $ 298,144 $ (100,035) $ 675,573 Notes: (1) Segment amounts are presented on an AIG stand alone basis prior to intercompany eliminations. (2) Includes interest in Maiden Lane II of $1.3 billion reported in SunAmerica Financial Group and interest in Maiden Lane III of $6.3 billion, reported in Other operations. (3) Includes MetLife securities received as consideration for ALICO sale of $6.5 billion at December 31, 2010 reported in Other operations. (4) Includes AIG's 33% interest in AIA with a total carrying value of $11.1 billion and reported in Other operations. (5) Primarily represents Parent Company (including the tax valuation allowance), Global Capital Markets, Direct Investment book, SAFG, Inc. (a non-operating holding company), ALICO SPV and AIA SPV and held for sale businesses. (6) For U.S. tax purposes, SunAmerica Financial Group has approximately $6.4 billion of gross unrealized gains in its available for sale portfolio which, if realized, can be used to reduce a portion of capital loss deferred tax assets totaling $23.1 billion. (7) Consists primarily of intercompany debt which is eliminated in consolidation. 11

16 Reconciliation of Statutory Surplus to GAAP Equity * - Revised Historical As of December 31, 2011 As of December 31, 2010 SunAmerica SunAmerica Chartis * Financial Group Chartis * Financial Group Statutory surplus $ 39,298 $ 14,184 $ 40,300 $ 14,038 Deferred policy acquisition costs, sales inducements and value of business acquired 2,375 7,305 2,099 8,174 Net unrealized gains on fixed maturity securities 3,073 10,748 1,984 5,935 Statutory non-admitted assets 3,253 1,984 3,362 1,562 Other (611)(1) (40) (2) (4,266)(1) 3,735 (2) GAAP Equity $ 47,388 $ 34,181 $ 43,479 $ 33,444 * December 31, 2011 amounts are subject to change based on final statutory filings. December 31, 2010 amounts reflect final statutory filings. (1) Other for Chartis primarily consists of the statutory surplus of UGC and MG Re, which are not included within Chartis for purposes of the GAAP consolidating schedule. (2) Other for SunAmerica primarily represents differences between GAAP and statutory accounting, such as shadow loss recognition, asset valuation reserve and interest maintenance reserve. 12

17 Debt and Capital - Revised Historical Debt and Hybrid Capital Interest Expense Dec. 31, Dec. 31, Inc. Three Months Ended Twelve Months Ended (Dec.) Dec. 31, 2011 Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2010 Financial debt: FRBNY Credit Facility (a) $ - $ 20,985 (100.0)% $ - $ 1,200 $ 72 $ 4,107 AIG notes and bonds payable 12,725 11, AIG loans and mortgage payable SAFG, Inc. notes and bonds payable Liabilities connected to trust preferred stock 1,339 1, AIG Funding loans to subsidiaries- net - (376) NM - - (b) - - (b) Total 14,596 33,975 (57.0) 199 1, ,760 Operating debt: MIP notes payable 10,147 11,318 (10.3) Series AIGFP matched notes and bonds payable 3,807 3,981 (4.4) Other AIG borrowings supported by assets (c) 10,766 12,143 (11.3) ILFC borrowings 24,364 27,699 (12.0) ,427 1,239 Other subsidiaries (11.9) Borrowings of consolidated investments 1,853 2,614 (29.1) AIG Funding loans to subsidiaries- net NM - - (b) - - (b) Total 51,330 58,577 (12.4) ,188 2,090 Hybrid - debt securities: Junior subordinated debt (e) 9,327 11,740 (20.6) Hybrid - mandatorily convertible units: Junior subordinated debt attributable to equity units (e) - 2,169 NM Total $ 75,253 $ 106,461 (29.3)% $ 897 $ 2,204 $ 3,873 $ 8,056 Interest expense reported in discontinued operations - (18) (2) (75) Interest expense on consolidated income statement $ 897 $ 2,186 $ 3,871 $ 7,981 AIG capitalization: Total equity $ 102,393 $ 106,776 (d) (4.1)% Hybrid - debt securities (e) 9,327 11,740 (20.6) Hybrid - mandatorily convertible units (e) - 2,169 NM Total consolidated equity and hybrid capital 111, ,685 (7.4) Financial debt 14,596 33,975 (57.0) Total capital $ 126,316 $ 154,660 (18.3)% Ratios: Total equity / Total capital 81.1% 69.0% Hybrid - debt securities / Total capital 7.4% 7.6% Hybrid - mandatorily convertible units / Total capital N/A 1.4% Financial debt / Total capital 11.6% 22.0% Notes: (a) Repaid in full on January 14, 2011 following AIG's recapitalization. (b) Amounts are eliminated in consolidation. (c) Borrowings are carried at fair value with fair value adjustments reported in Other income (loss) on the Consolidated Statement of Operations. Contractual interest payments amounted to $401 million and $424 million for the twelve months ended December 31, 2011 and 2010, respectively. (d) As a result of the closing of the Recapitalization on January 14, 2011, the SPV noncontrolling interests of $26.4 billion in 2010 are no longer considered permanent equity on AIG's Consolidated Balance Sheet, and are classified as redeemable noncontrolling interest. (e) The equity units and junior subordinated debentures receive hybrid equity treatment from the major rating agencies under their current policies but are recorded as long-term borrowings on the consolidated balance sheet. In 2011, AIG remarketed three series of debentures representing $2.2 billion in aggregate principal and as a result, no debentures relating to the equity units remain outstanding. In November 2011, AIG exchanged specified series of its outstanding Junior Subordinated Debentures for senior notes pursuant to its offer to exchange. 13

18 Book Value per Common Share - Revised Historical (dollars in millions, except share amounts) (2 3) (2) Book Value Per Share, (1) Total AIG Shareholders' (3) (1 3) Excluding Accumulated Total AIG Equity, Excluding Total Common Book Value Other Comprehensive Shareholders' Accumulated Other Shares Per Share Income (Loss) Equity Comprehensive Income (Loss) Outstanding December 31, 2010 $ (a) $ $ 78,856 $ 71, ,463,159 March 31, (a) ,647 72,777 1,796,719,943 (a) June 30, (a) ,241 78,229 1,897,960,361 September 30, ,911 74,963 1,899,209,621 December 31, ,538 96,385 1,896,821,482 Notes: (a) On January 14, 2011, the Series E and F Preferred Stock were exchanged for AIG Common Stock and retired in connection with the Recapitalization. The pro forma book value per share giving effect to the Recapitalization as well as the conversion of equity units was $46.32, $45.07 and $43.21 at June 30, 2011, March 31, 2011 and December 31, 2010, respectively. 14

19 Chartis Operating Statistics - Revised Historical 2011 Results 1Q11 2Q11 3Q11 4Q Net premiums written $ 9,166 $ 9,167 $ 8,659 $ 7,848 $ 34,840 Net premiums earned 8,651 9,033 9,043 8,962 35,689 Claims and claims adjustment expenses incurred (1) 7,756 6,680 6,838 6,675 27,949 Underwriting expenses 2,498 2,712 2,737 2,923 10,870 Underwriting loss (1,603) (359) (532) (636) (3,130) Net investment income Interest and dividends ,742 Alternative investments (86) 371 Mutual funds 45 5 (15) (4) 31 Other investment income (2) Investment expense (62) (50) (57) (56) (225) Total 1,179 1,142 1,024 1,003 4,348 Operating income (loss) before net realized capital gains and other loss (424) ,218 Net realized capital gains Other loss - - (1) (4) (5) Pre-tax income (loss) $ (374) $ 826 $ 551 $ 817 $ 1,820 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Foreign exchange effect on worldwide premium: Change in net premiums written Increase / (decrease) in original currency (5) 18.7 % 13.6 % (3.5) % 1.7 % 7.3 % Foreign exchange effect Increase / (decrease) as reported in US $ 19.9 % 17.6 % 0.7 % 3.6 % 10.2 % Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 1,688 $ 525 $ 605 $ 478 $ 3,296 Reinstatement premium related to catastrophes (31) (11) 11 Prior year loss reserve development (favorable) / unfavorable (13) 72 Returned / (additional) premium related to prior year development (37) (91) (25) (19) (172) Net loss and loss expense reserve (at period end) $ 70,201 $ 68,845 $ 69,033 $ 67,979 $ 67,979 See Accompanying Notes on Page 33 15

20 Chartis Operating Statistics - Revised Historical 2010 Results 1Q10 2Q10 3Q10 4Q Net premiums written $ 7,644 $ 7,792 $ 8,598 $ 7,578 $ 31,612 Net premiums earned 7,641 7,733 8,597 8,550 32,521 Claims and claims adjustment expenses incurred (1) 5,459 5,575 6,109 10,724 27,867 Underwriting expenses 2,301 2,543 2,522 2,736 10,102 Underwriting loss (119) (385) (34) (4,910) (5,448) Net investment income Interest and dividends ,450 Alternative investments Mutual funds (1) (25) (13) Other investment income (2) Investment expense (28) (74) 14 (74) (162) Total 1,071 1,113 1,007 1,201 4,392 Operating income (loss) before net realized capital gains (losses), bargain purchase gain and gain on sale of properties (3,709) (1,056) Net realized capital gains (losses) (206) (36) (38) Bargain purchase gain (3) Gain on sale of properties (4) Pre-tax income (loss) $ 1,426 $ 790 $ 767 $ (3,076) $ (93) Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Foreign exchange effect on worldwide premium: Change in net premiums written Increase / (decrease) in original currency (5) (3.9)% (3.0) % 5.5 % 7.8 % 1.8 % Foreign exchange effect Increase / (decrease) as reported in US $ (1.2)% (1.6) % 6.5 % 9.4 % 3.1 % Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 491 $ 300 $ 72 $ 203 $ 1,066 Reinstatement premium related to catastrophes Prior year loss reserve development (favorable) / unfavorable (185) ,203 4,280 Returned / (additional) premium related to prior year development 59 (1) (40) (26) (8) Net loss and loss expense reserve (at period end) $ 64,045 $ 63,384 $ 63,708 $ 68,074 $ 68,074 See Accompanying Notes on Page 33 16

21 Chartis Commercial Operating Statistics - Revised Historical Results Q11 2Q11 3Q11 4Q Net premiums written $ 5,724 $ 5,723 $ 5,179 $ 4,422 $ $ 21,048 Net premiums earned 5,282 5,617 5,595 5,371 21,865 Claims and claims adjustment expenses incurred 5,206 4,498 4,638 4,508 18,850 Underwriting expenses 1,244 1,310 1,359 1,436 5,349 Underwriting loss (1,168) (191) (402) (573) (2,334) Net investment income ,248 Operating income (loss) $ (384) $ 629 $ 405 $ 264 $ 914 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 1,199 $ 456 $ 483 $ 443 $ 2,581 Reinstatement premium related to catastrophes (31) (11) 11 Prior year loss reserve development (favorable) / unfavorable (17) (43) 22 (74) (112) Returned / (additional) premium related to prior year development (37) (91) (25) (19) (172) Net loss and loss expense reserve (at period end) $ 58,925 $ 59,152 $ 59,079 $ 58,549 $ 58,549 See Accompanying Notes on Page 33 17

22 Chartis Commercial Operating Statistics - Revised Historical 2010 Results 1Q10 2Q10 3Q10 4Q Net premiums written $ 5,121 $ 5,336 $ 5,267 $ 4,452 $ 20,176 Net premiums earned 5,216 5,360 5,353 5,223 21,152 Claims and claims adjustment expenses incurred 4,076 4,152 4,019 6,695 18,942 Underwriting expenses 1,257 1,309 1,283 1,412 5,261 Underwriting profit (loss) (117) (101) 51 (2,884) (3,051) Net investment income ,348 Operating income (loss) $ 726 $ 751 $ 891 $ (2,071) $ 297 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 460 $ 270 $ 67 $ 203 $ 1,000 Reinstatement premium related to catastrophes Prior year loss reserve development (favorable) / unfavorable (165) ,251 2,191 Returned / (additional) premium related to prior year development 59 (1) (40) (26) (8) Net loss and loss expense reserve (at period end) $ 55,286 $ 54,748 $ 54,730 $ 57,237 $ 57,237 See Accompanying Notes on Page 33 18

23 Chartis Consumer Operating Statistics - Revised Historical 2011 Results 1Q11 2Q11 3Q11 4Q Net premiums written $ 3,417 $ 3,439 $ 3,479 $ 3,427 $ 13,762 Net premiums earned 3,346 3,393 3,435 3,581 13,755 Claims and claims adjustment expenses incurred 2,497 2,102 2,173 2,128 8,900 Underwriting expenses 1,192 1,321 1,329 1,411 5,253 Underwriting profit (loss) (343) (30) (67) 42 (398) Net investment income Operating income (loss) $ (255) $ 59 $ 21 $ 131 $ (44) Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 489 $ 69 $ 122 $ 35 $ 715 Prior year loss reserve development (favorable) / unfavorable Net loss and loss expense reserve (at period end) $ 5,595 $ 5,671 $ 5,937 $ 5,438 $ 5,438 See Accompanying Notes on Page 33 19

24 Chartis Consumer Operating Statistics - Revised Historical 2010 Results 1Q10 2Q10 3Q10 4Q Net premiums written $ 2,504 $ 2,438 $ 3,291 $ 3,113 $ 11,346 Net premiums earned 2,402 2,351 3,222 3,304 11,279 Claims and claims adjustment expenses incurred 1,365 1,364 1,951 2,065 6,745 Underwriting expenses 998 1,191 1,209 1,252 4,650 Underwriting profit (loss) 39 (204) 62 (13) (116) Net investment income Operating income (loss) $ 107 $ (145) $ 145 $ 78 $ 185 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 31 $ 30 $ 5 $ - $ 66 Prior year loss reserve development (favorable) / unfavorable (20) (8) (8) (35) (71) Net loss and loss expense reserve (at period end) $ 4,930 $ 4,848 $ 5,152 $ 5,117 $ 5,117 See Accompanying Notes on Page 33 20

25 Chartis Other Operating Statistics - Revised Historical 2011 Results 1Q11 2Q11 3Q11 4Q Net premiums written $ 25 $ 5 $ 1 $ (1) $ 30 Net premiums earned Claims and claims adjustment expenses incurred Underwriting expenses Underwriting loss (92) (138) (63) (105) (398) Net investment income Operating income (loss), before net realized capital gains and other loss (28) 348 Net realized capital gains Other loss - - (1) (4) (5) Pre-tax income $ 265 $ 138 $ 125 $ 422 $ 950 Pre-tax catastrophe-related losses and prior year loss reserve development: Prior year loss reserve development (favorable) / unfavorable $ 40 $ 15 $ 12 $ 33 $ 100 Net loss and loss expense reserve (at period end) $ 5,681 $ 4,022 $ 4,017 $ 3,992 $ 3,992 See Accompanying Notes on Page 33 21

26 Chartis Other Operating Statistics - Revised Historical 2010 Results 1Q10 2Q10 3Q10 4Q Net premiums written $ 19 $ 18 $ 40 $ 13 $ 90 Net premiums earned Claims and claims adjustment expenses incurred ,964 2,180 Underwriting expenses Underwriting loss (41) (80) (147) (2,013) (2,281) Net investment income Operating income (loss), before net realized capital gains (losses), bargain purchase gain and gain on sale of properties (63) (1,716) (1,538) Net realized capital gains (losses) (206) (36) (38) Bargain purchase gain Gain on sale of properties Pre-tax income (loss) $ 593 $ 184 $ (269) $ (1,083) $ (575) Pre-tax catastrophe-related losses and prior year loss reserve development: Prior year loss reserve development (favorable) / unfavorable $ - $ 46 $ 127 $ 1,987 $ 2,160 Net loss and loss expense reserve (at period end) $ 3,829 $ 3,788 $ 3,826 $ 5,720 $ 5,720 See Accompanying Notes on Page 33 22

27 Chartis U.S. Operating Statistics - Revised Historical 2011 Results 1Q11 2Q11 3Q11 4Q Net premiums written $ 4,128 $ 4,957 $ 4,359 $ 3,828 $ 17,272 Net premiums earned 4,482 4,689 4,616 4,492 18,279 Claims and claims adjustment expenses incurred 4,103 3,940 4,110 3,770 15,923 Underwriting expenses 979 1,038 1,033 1,096 4,146 Underwriting loss (600) (289) (527) (374) (1,790) Net investment income Interest and dividends ,678 Alternative investments (87) 360 Other investment income (2) Investment expense (45) (39) (38) (44) (166) Total ,226 Operating income before net realized capital gains and other loss ,436 Net realized capital gains Other loss - - (1) (4) (5) Pre-tax income $ 340 $ 657 $ 276 $ 394 $ 1,667 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 529 $ 397 $ 480 $ 191 $ 1,597 Reinstatement premium related to catastrophes (4) 1 (4) 1 (6) Prior year loss reserve development (favorable) / unfavorable Returned / (additional) premium related to prior year development $ (37) $ (91) $ (25) $ (19) $ (172) See Accompanying Notes on Page 33 23

28 Chartis U.S. Operating Statistics - Revised Historical 2010 Results 1Q10 2Q10 3Q10 4Q Net premiums written $ 3,787 $ 4,738 $ 4,740 $ 3,982 $ 17,247 Net premiums earned 4,562 4,580 4,637 4,444 18,223 Claims and claims adjustment expenses incurred 3,474 3,763 3,698 7,579 18,514 Underwriting expenses 1,117 1,165 1,050 1,163 4,495 Underwriting loss (29) (348) (111) (4,298) (4,786) Net investment income Interest and dividends ,574 Alternative investments Mutual funds 1 (31) Other investment income (2) Investment expense (15) (57) 28 (55) (99) Total ,458 Operating income (loss) before net realized capital gains (losses) (3,359) (1,328) Net realized capital gains (losses) (3) (61) (185) 53 (196) Pre-tax income (loss) $ 812 $ 481 $ 489 $ (3,306) $ (1,524) Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 197 $ 236 $ 47 $ 77 $ 557 Prior year loss reserve development (favorable) / unfavorable (131) ,853 3,948 Returned / (additional) premium related to prior year development $ 59 $ (1) $ (40) $ (26) $ (8) See Accompanying Notes on Page 33 24

29 Chartis U.S. - Operating Statistics by Business - Revised Historical 2011 Results Commercial Insurance 1Q11 2Q11 3Q11 4Q Net premiums written $ 3,326 $ 4,156 $ 3,506 $ 3,113 $ 14,101 Net premiums earned 3,657 3,819 3,771 3,648 14,895 Claims and claims adjustment expenses incurred 3,546 3,342 3,478 3,172 13,538 Underwriting expenses ,033 Underwriting loss (592) (281) (474) (329) (1,676) Net investment income ,701 Operating income (loss) $ 62 $ 399 $ 194 $ 370 $ 1,025 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Consumer Insurance Net premiums written $ 777 $ 796 $ 852 $ 716 $ 3,141 Net premiums earned ,315 Claims and claims adjustment expenses incurred ,230 Underwriting expenses ,012 Underwriting profit (loss) (23) Net investment income Operating income (loss) $ 53 $ 77 $ 2 $ 39 $ 171 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Chartis Other U.S Net premiums written $ 25 $ 5 $ 1 $ (1) $ 30 Net premiums earned Claims and claims adjustment expenses incurred Underwriting expenses Underwriting loss (36) (60) (30) (61) (187) Net investment income Operating income (loss) before net realized capital gains and other loss (54) 240 Net realized capital gains Other loss - - (1) (4) (5) Pre-tax income (loss) $ 225 $ 181 $ 80 $ (15) $ 471 Total Chartis U.S. Net premiums written $ 4,128 $ 4,957 $ 4,359 $ 3,828 $ 17,272 Net premiums earned 4,482 4,689 4,616 4,492 18,279 Claims and claims adjustment expenses incurred 4,103 3,940 4,110 3,770 15,923 Underwriting expenses 979 1,038 1,033 1,096 4,146 Underwriting loss (600) (289) (527) (374) (1,790) Net investment income ,226 Operating income before net realized capital gains and other loss ,436 Net realized capital gains Other loss - - (1) (4) (5) Pre-tax income $ 340 $ 657 $ 276 $ 394 $ 1,667 See Accompanying Notes on Page 33 25

30 Chartis U.S. - Operating Statistics by Business - Revised Historical 2010 Results Commercial Insurance 1Q10 2Q10 3Q10 4Q Net premiums written $ 2,901 $ 3,917 $ 3,853 $ 3,288 $ 13,959 Net premiums earned 3,717 3,779 3,826 3,660 14,982 Claims and claims adjustment expenses incurred 2,923 3,202 3,051 5,338 14,514 Underwriting expenses ,217 Underwriting profit (loss) 33 (260) 3 (2,525) (2,749) Net investment income ,784 Operating income (loss) $ 736 $ 448 $ 703 $ (1,852) $ 35 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Consumer Insurance Net premiums written $ 866 $ 804 $ 847 $ 681 $ 3,198 Net premiums earned ,150 Claims and claims adjustment expenses incurred ,124 Underwriting expenses ,149 Underwriting profit (loss) (32) (23) (11) (57) (123) Net investment income Operating income (loss) $ (4) $ 5 $ 17 $ (29) $ (11) Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Chartis Other U.S. Net premiums written $ 20 $ 17 $ 40 $ 13 $ 90 Net premiums earned Claims and claims adjustment expenses incurred ,701 1,876 Underwriting expenses Underwriting loss (30) (65) (103) (1,716) (1,914) Net investment income Operating income (loss) before net realized capital gains (losses) (46) (1,478) (1,352) Net realized capital gains (losses) (3) (61) (185) 53 (196) Pre-tax income (loss) $ 80 $ 28 $ (231) $ (1,425) $ (1,548) Total Chartis U.S. Net premiums written $ 3,787 $ 4,738 $ 4,740 $ 3,982 $ 17,247 Net premiums earned 4,562 4,580 4,637 4,444 18,223 Claims and claims adjustment expenses incurred 3,474 3,763 3,698 7,579 18,514 Underwriting expenses 1,117 1,165 1,050 1,163 4,495 Underwriting loss (29) (348) (111) (4,298) (4,786) Net investment income ,458 Operating income (loss) before net realized capital gains (losses) (3,359) (1,328) Net realized capital gains (losses) (3) (61) (185) 53 (196) Pre-tax income (loss) $ 812 $ 481 $ 489 $ (3,306) $ (1,524) See Accompanying Notes on Page 33 26

31 Chartis International Operating Statistics - Revised Historical 2011 Results 1Q11 2Q11 3Q11 4Q Net premiums written $ 5,038 $ 4,210 $ 4,300 $ 4,020 $ 17,568 Net premiums earned 4,169 4,344 4,427 4,470 17,410 Claims and claims adjustment expenses incurred (1) 3,653 2,740 2,728 2,905 12,026 Underwriting expenses 1,519 1,674 1,704 1,827 6,724 Underwriting loss (1,003) (70) (5) (262) (1,340) Net investment income Interest and dividends ,064 Alternative investments Mutual funds 45 5 (15) (4) 31 Other investment income (2) Investment expense (17) (11) (19) (12) (59) Total ,122 Operating income (loss), before net realized capital gains (losses) (698) (218) Net realized capital gains (losses) (16) (49) Pre-tax income (loss) (6) $ (714) $ 169 $ 275 $ 423 $ 153 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Foreign exchange effect on Chartis International's premium: Change in net premiums written Increase / (decrease) in original currency (5) 28.1 % 27.7 % 2.1 % 7.8 % 15.9 % Foreign exchange effect Increase / (decrease) as reported in US $ 30.6 % 37.9 % 11.5 % 11.8 % 22.3 % Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 1,159 $ 128 $ 125 $ 287 $ 1,699 Reinstatement premium related to catastrophes (27) (12) 17 Prior year loss reserve development (favorable) / unfavorable $ (50) $ (4) $ 17 $ (84) $ (121) See Accompanying Notes on Page 33 27

32 Chartis International Operating Statistics - Revised Historical 2010 Results 1Q10 2Q10 3Q10 4Q Net premiums written $ 3,857 $ 3,054 $ 3,858 $ 3,596 $ 14,365 Net premiums earned 3,079 3,153 3,960 4,106 14,298 Claims and claims adjustment expenses incurred (1) 1,985 1,812 2,411 3,145 9,353 Underwriting expenses 1,184 1,378 1,472 1,573 5,607 Underwriting profit (loss) (90) (37) 77 (612) (662) Net investment income Interest and dividends Alternative investments Mutual funds (2) 6 (32) 18 (10) Other investment income (2) Investment expense (13) (17) (14) (19) (63) Total Operating income (loss), before net realized capital gains (losses), bargain purchase gain and gain on sale of properties (350) 272 Net realized capital gains (losses) (21) (89) 158 Bargain purchase gain (3) Gain on sale of properties (4) Pre-tax income (6) $ 614 $ 309 $ 278 $ 230 $ 1,431 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Foreign exchange effect on Chartis International's premium: Change in net premiums written Increase / (decrease) in original currency (5) 2.7 % (0.3) % 23.0 % 28.6 % 13.7 % Foreign exchange effect Increase / (decrease) as reported in US $ 8.7 % 3.5 % 25.7 % 32.7 % 17.0 % Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 294 $ 64 $ 25 $ 126 $ 509 Reinstatement premium related to catastrophes Prior year loss reserve development (favorable) / unfavorable $ (54) $ 5 $ 31 $ 350 $ 332 See Accompanying Notes on Page 33 28

33 Chartis International Operating Statistics by Business - Revised Historical 2011 Results Commercial Insurance 1Q11 2Q11 3Q11 4Q Net premiums written $ 2,398 $ 1,567 $ 1,673 $ 1,309 $ 6,947 Net premiums earned 1,625 1,798 1,824 1,723 6,970 Claims and claims adjustment expenses incurred 1,660 1,156 1,160 1,336 5,312 Underwriting expenses ,316 Underwriting profit (loss) (576) (244) (658) Net investment income Operating income (loss) $ (446) $ 230 $ 211 $ (106) $ (111) Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Consumer Insurance Net premiums written $ 2,640 $ 2,643 $ 2,627 $ 2,711 $ 10,621 Net premiums earned 2,545 2,546 2,603 2,746 10,440 Claims and claims adjustment expenses incurred 1,980 1,560 1,562 1,568 6,670 Underwriting expenses 936 1,068 1,085 1,152 4,241 Underwriting profit (loss) (371) (82) (44) 26 (471) Net investment income Operating income (loss) $ (308) $ (18) $ 19 $ 92 $ (215) Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Chartis Other Int'l Net premiums written $ - $ - $ - $ - $ - Net premiums earned (1) Claims and claims adjustment expenses incurred Underwriting expenses Underwriting loss (56) (78) (33) (44) (211) Net investment income Operating income before net realized capital gains (losses) Net realized capital gains (losses) (16) (49) Pre-tax income (loss) $ 40 $ (43) $ 45 $ 437 $ 479 Total Chartis Int'l 0 Net premiums written $ 5,038 $ 4,210 $ 4,300 $ 4,020 $ 17,568 Net premiums earned 4,169 4,344 4,427 4,470 17,410 Claims and claims adjustment expenses incurred 3,653 2,740 2,728 2,905 12,026 Underwriting expenses 1,519 1,674 1,704 1,827 6,724 Underwriting profit (loss) (1,003) (70) (5) (262) (1,340) Net investment income ,122 Operating income (loss) before net realized capital gains (losses) (698) (218) Net realized capital gains (losses) (16) (49) Pre-tax income (loss) $ (714) $ 169 $ 275 $ 423 $ 153 See Accompanying Notes on Page 33 29

34 Chartis International Operating Statistics by Business - Revised Historical 2010 Results Commercial Insurance 1Q10 2Q10 3Q10 4Q Net premiums written $ 2,220 $ 1,419 $ 1,414 $ 1,164 $ 6,217 Net premiums earned 1,499 1,581 1,527 1,563 6,170 Claims and claims adjustment expenses incurred 1, ,357 4,428 Underwriting expenses ,044 Underwriting profit (loss) (150) (359) (302) Net investment income Operating income (loss) $ (10) $ 303 $ 188 $ (219) $ 262 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Consumer Insurance Net premiums written $ 1,638 $ 1,634 $ 2,444 $ 2,432 $ 8,148 Net premiums earned 1,580 1,573 2,433 2,543 8,129 Claims and claims adjustment expenses incurred ,407 1,525 4,621 Underwriting expenses ,501 Underwriting profit (loss) 71 (181) Net investment income Operating income $ 111 $ (150) $ 128 $ 107 $ 196 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Chartis Other Int'l Net premiums written $ (1) $ 1 $ - $ - $ - Net premiums earned - (1) - - (1) Claims and claims adjustment expenses incurred Underwriting expenses Underwriting loss (11) (15) (44) (297) (367) Net investment income Operating income (loss) before net realized capital gains (losses), bargain purchase gain and gain on sale of properties (17) (238) (186) Net realized capital gains (losses) (21) (89) 158 Bargain purchase gain Gain on sale of properties Pre-tax income (loss) $ 513 $ 156 $ (38) $ 342 $ 973 Total Chartis Int'l Net premiums written $ 3,857 $ 3,054 $ 3,858 $ 3,596 $ 14,365 Net premiums earned 3,079 3,153 3,960 4,106 14,298 Claims and claims adjustment expenses incurred 1,985 1,812 2,411 3,145 9,353 Underwriting expenses 1,184 1,378 1,472 1,573 5,607 Underwriting profit (loss) (90) (37) 77 (612) (662) Net investment income Operating income (loss) before net realized capital gains (losses), bargain purchase gain and gain on sale of properties (350) 272 Net realized capital gains (losses) (21) (89) 158 Bargain purchase gain Gain on sale of properties Pre-tax income $ 614 $ 309 $ 278 $ 230 $ 1,431 See Accompanying Notes on Page 33 30

35 Chartis Worldwide Net Premiums Written (NPW) by Line of Business & Region 2010 Worldwide NPW by Line of Business = $31,612 Commercial 64% and Consumer 36% 2011 Worldwide NPW by Line of Business = $34,840 Commercial 60% and Consumer 40% 10% 11% A&H 18% Personal Lines 11% 10% A&H 20% Personal Lines 12% 18% Casualty Financial Lines 11% 20% Casualty Financial Lines 31% Property 28% Property Specialty Specialty 2010 Worldwide NPW by Region 2011 Worldwide NPW by Region 9% U.S. & Canada 9% U.S. & Canada 18% 55% Europe 24% Europe 50% 18% Far East Growth Economies 17% Far East Growth Economies 1 31

36 Chartis U.S. and International Net Premiums Written (NPW) by Line of Business 2010 U.S. NPW by Line of Business = $17, U.S. NPW by Line of Business = $17,272 9% 8% 10% 12% A&H Personal Lines Casualty 14% Financial Lines 47% Property 10% 15% 12% A&H 8% 10% 45% Personal Lines Casualty Financial Lines Property Specialty Specialty 2010 International NPW by Line of Business = $14, International NPW by Line of Business = $17,568 10% A&H 12% Personal Lines 9% 13% 26% 30% Casualty Financial Lines Property Specialty 9% A&H 11% Personal Lines 8% 12% 30% 30% Casualty Financial Lines Property Specialty 2 32