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ITEM 7 / RESULTS OF OPERATIONS.....................................................................................................................................................................................We paid cash and non-cash dividends of $2.5 billion to AIG in the year ended December 31, 2012. As a result ofStorm Sandy catastrophe losses, AIG contributed $1.0 billion of capital in cash to its U.S. property casualty insurancesubsidiaries in December 2012.AIG Property Casualty OperationsWe present our financial information in two operating segments – Commercial Insurance and Consumer Insurance –as well as an Other category.We will continue to assess the performance of our operating segments based on operating income (loss), loss ratio,acquisition ratio, general operating expense ratio and combined ratio.We are developing new value-based metrics that provide management shorter-term measures to evaluate ourperformance across multiple lines and various countries. As an example, we have implemented a risk-adjustedprofitability model as a business performance measure. Along with underwriting results, this risk-adjusted profitabilitymodel incorporates elements of capital allocations, costs of capital and net investment income. We believe that suchperformance measures will allow us to better assess the true economic returns of our business.For the years ended December 31, 2012 and 2011, results reflect the effects of the full year of Fuji operations, whilethe corresponding 2010 period reflects the effects of Fuji for only two quarters, because we began consolidatingFuji’s operating results on July 1, 2010, following its acquisition. Fuji operations primarily relate to ConsumerInsurance...................................................................................................................................................................................................................................74 AIG 2012 Form 10-K