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ITEM 7 / RESULTS OF OPERATIONS.....................................................................................................................................................................................Results of OperationsThe following section provides a comparative discussion of our Results of Operations on a reported basis for thethree-year period ended December 31, 2012. Factors that relate primarily to a specific business segment arediscussed in more detail within that business segment. For a discussion of the Critical Accounting Estimates thataffect the Results of Operations, see the Critical Accounting Estimates section of Item 7. MD&A, in this AnnualReport on Form 10-K.The following table presents AIG’s condensed consolidated results of operations:Years Ended December 31,Percentage Change(in millions) 2012 2011 2010 2012 vs. 2011 2011 vs. 2010Revenues:Premiums $ 38,011 $ 38,990 $ 45,319 (3)% (14)%Policy fees 2,791 2,705 2,710 3 –Net investment income 20,343 14,755 20,934 38 (30)Net realized capital gains (losses) 929 701 (716) 33 NMOther income 3,582 2,661 4,582 35 (42)Total revenues 65,656 59,812 72,829 10 (18)Benefits, claims and expenses:Policyholder benefits and claims incurred 31,977 33,450 41,392 (4) (19)Interest credited to policyholder accountbalances 4,362 4,467 4,487 (2) –Amortization of deferred acquisition costs 5,709 5,486 5,821 4 (6)Other acquisition and insurance expenses 9,235 8,458 10,163 9 (17)Interest expense 2,319 2,444 6,742 (5) (64)Net loss on extinguishment of debt 9 2,847 104 (100) NMNet (gain) loss on sale of properties anddivested businesses 2 74 (19,566) (97) NMOther expenses 2,721 2,470 3,439 10 (28)Total benefits, claims and expenses 56,334 59,696 52,582 (6) 14Income from continuing operations beforeincome tax expense (benefit) 9,322 116 20,247 NM (99)Income tax expense (benefit) 1,570 (19,424) 6,993 NM NMIncome from continuing operations 7,752 19,540 13,254 (60) 47Income (loss) from discontinued operations,net of income tax expense (benefit) (4,052) 1,790 (969) NM NMNet income 3,700 21,330 12,285 (83) 74Less: Net income attributable tononcontrolling interests 262 708 2,227 (63) (68)Net income attributable to AIG $ 3,438 $ 20,622 $ 10,058 (83)% 105%..................................................................................................................................................................................................................................68 AIG 2012 Form 10-K