Presentation Changes
Policy fees related to features accounted for as embedded derivatives in variable annuity products, including guaranteed
minimum withdrawal benefits and guaranteed minimum account value benefits, are included in the fair value measurement of
embedded derivatives. Effective December 31, 2014, we reclassified fees related to these embedded derivatives to Net
realized capital gains, with no effect to the fair value measurement of the embedded derivatives, Income from continuing
operations, Net income attributable to AIG, or Shareholders’ equity. Accordingly, a portion of prior period policy fees have been
reclassified to Net realized capital gains to conform to the current period presentation. See Note 14 herein for our accounting
policy and Note 5 for a discussion of the fair value measurement of embedded policy derivatives, including policy on
classification of fees.
Revisions were made to change the classification of certain miscellaneous income from General operating and other expenses
to Premiums and of certain broker-dealer fees from General operating and other expenses to Other income, to conform with
the current period presentation, with no effect to Income from continuing operations or Net income attributable to AIG.