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ITEM 7 / RESULTS OF OPERATIONS.....................................................................................................................................................................................2012 and 2011 ComparisonThe Americas net premiums written decreased primarily due to the restructuring of the Commercial InsuranceCasualty book of business primarily in workers’ compensation and loss-sensitive business, slightly offset by rateincreases. These decreases were partially offset by continued growth in Consumer Insurance, which was primarilyattributable to increases to group accident, personal property, and private client group and warranty lines. Additionalpremium recognized on the loss-sensitive book of business was $54 million for the year ended December 31, 2012compared to additional premium of $172 million in the prior year.Asia Pacific net premiums written increased for the year ended December 31, 2012 primarily due to an increase inConsumer Insurance reflecting growth of personal property business, group personal accident insurance, and directmarketing business in Japan. The expansion in Asia Pacific countries outside Japan also continued in the yearended December 31, 2012, supported by growth in individual personal accident insurance, direct marketing andpersonal lines products. Commercial Insurance increased in the region primarily due to organic growth and rateincreases in Property and moderate organic growth in Specialty and Financial lines.EMEA net premiums written decreased primarily due to the impact of foreign exchange. The continued execution ofunderwriting discipline and the reduction in certain casualty lines that did not meet internal performance targets wereoffset by rate strengthening initiatives on new and renewal business for Commercial Insurance. Consumer Insuranceexperienced modest growth in travel, warranty, and specialty personal lines products while focused on re-building itsdirect marketing programs that it previously shared with American Life Insurance Company (ALICO).2011 and 2010 ComparisonThe Americas net premiums written increased slightly as a result of modest growth in Commercial Insurance offsetby a small decrease in Consumer Insurance. The increase in Commercial Insurance was primarily due to the pricingimprovements in Property and Specialty, which was slightly offset by a decrease in Casualty due to the strategicinitiative in workers’ compensation. The decrease in Consumer insurance was primarily due to underwriting actionstaken in private client group to meet performance targets and a decrease in warranty lines new business in the U.S.and Canada, partially offset by continued growth in travel business and A&H direct marketing in Latin America.Asia Pacific net premiums written increased as a result of the effect of the full year consolidation of Fuji. Excludingthe effect of the Fuji acquisition, net premium written increased 13 percent. The increase in Commercial Insurancewas due to rate increases in Property, primarily in Japan. Consumer Insurance business in Asia Pacific countriesoutside Japan also expanded, supported by growth in nearly all lines of business, particularly individual personalaccident insurance, travel, and auto products.In EMEA, the increase in Commercial Insurance was primarily related to growth in specialty products in line with ourstrategic initiative to grow higher value lines. Excluding the impact of foreign exchange, Consumer Insurancedecreased as the business was focused on rebuilding the direct marketing programs that we previously shared withALICO and the non-renewal of certain business to retain underwriting discipline. These decreases were largely offsetby growth in group accident insurance, automobile and specialty personal lines products...................................................................................................................................................................................................................................AIG 2012 Form 10-K 81