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ITEM 7 / RESULTS OF OPERATIONS.....................................................................................................................................................................................products have minimum guaranteed interest rates as of December 31, 2012 ranging from 1.0 percent to 5.5 percent,with the higher rates representing guarantees on older products.December 31, 2012Current Crediting RatesContractual Minimum Guaranteed 1-50 Basis Points More than 50 BasisInterest Rate Account Values At Contractual Above Minimum Points Above(in millions) Minimum Guarantee Guarantee Minimum Guarantee TotalUniversal life insurance1% $ 24 $ – $ 9 $ 33> 1% - 2% – – 232 232> 2% - 3% 93 368 1,445 1,906> 3% - 4% 2,143 209 1,566 3,918> 4% - 5% 4,377 197 12 4,586> 5% - 5.5% 321 3 2 326Subtotal $ 6,958 $ 777 $ 3,266 $ 11,001Fixed annuities1% $ 1,317 $ 2,826 $ 6,079 $ 10,222> 1% - 2% 6,146 8,146 8,857 23,149> 2% - 3% 30,631 1,635 5,251 37,517> 3% - 4% 13,262 962 417 14,641> 4% - 5% 8,138 – 7 8,145> 5% - 5.5% 238 – 5 243Subtotal $ 59,732 $ 13,569 $ 20,616 $ 93,917Total $ 66,690 $ 14,346 $ 23,882 $ 104,918Percentage of total 63% 14% 23% 100%Effective Product Management: AIG Life and Retirement has a dynamic product management process designedto ensure that new business product offerings appropriately reflect the current low interest rate environment. To theextent that we cannot achieve targeted net investment spreads on new business, products are re-priced ordiscontinued. Additionally, current products with higher minimum rate guarantees have been re-filed with lower ratesas permitted under state insurance product regulations...................................................................................................................................................................................................................................110 AIG 2012 Form 10-K