DOCSLIB.ORG

2007-Annual-Report.Pdf

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
2007-Annual-Report.Pdf Annual Report AMERICAN INTERNATIONAL GROUP, INC. ABOUT AIG American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization, with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. CONTENTS Financial Highlights 1 Letter to Shareholders 2 AIG: What We See 11 AIG at a Glance 24 Review of Operations 26 Reconciliation in Accordance with Regulation G 42 Five Year Summary of Consolidated Operations 43 Five Year Summary of Selected Financial Information 44 Supplemental Financial Information 46 Board of Directors 50 Corporate Directory 51 Annual Report on Form 10-K Inside Shareholder Information Back Cover ABOUT THE COVER AIG headquarters at 70 Pine Street is an Art Deco landmark and the tallest skyscraper in Lower Manhattan. In 1976, AIG purchased the 66-story building, which is crowned with a glass-enclosed observatory that offers a panoramic view of New York City and its surroundings. Today, it is an icon of AIG’s global stature in the insurance and financial services businesses. FINANCIAL HIGHLIGHTS (in millions, except per share data and ratios) 2007 2006 % Change Net income(a) $ 6,200 $ 14,048 (55.9) Net realized capital gains (losses), net of tax (2,386) 33 — Capital Markets other-than-temporary impairments, net of tax(b) (418) —— FAS 133 gains (losses), net of tax (304) (1,424) — Cumulative effect of an accounting change, net of tax — 34 — Adjusted net income(c) 9,308 15,405 (39.6) Net income, per common share—diluted 2.39 5.36 (55.4) Adjusted net income, per common share—diluted(c) 3.58 5.88 (39.1) Book value per common share 37.87 39.09 (3.1) Revenues(d)(e)(f) $ 110,064 $ 113,387 (2.9) Assets 1,060,505 979,410 8.3 Shareholders’ equity 95,801 101,677 (5.8) General Insurance combined loss and expense ratio 90.33 89.06 General Insurance combined loss and expense ratio, excluding catastrophe losses 89.73 89.06 Net Income (a) Net Income per Book Value per Common Share (billions of dollars) Common Share—Diluted (dollars) (dollars) 39.09 14.0 37.87 5.36 33.24 30.69 10.5 9.8 3.99 26.54 3.73 8.1 3.07 6.2 2.39 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Revenues (d)(e)(f) A s sets Shareholders’ Equity ( b illions of dollars) (billions of dollars) ( b illions of dollars) 113.4 1,060.5 108.8 110.1 101.7 979.4 95.8 97.8 853.0 86.3 801.0 79.7 79.6 69.2 675.6 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 2003 2004 2005 2006 2007 Certain reclassifications have been made to prior period amounts to conform to the current period presentation. (a) In 2007 and 2006, includes out of period increases (decreases) of $(399) million and $65 million, respectively. (b) Represents Capital Markets other-than-temporary impairments on securities available for sale. (c) In 2007 and 2006, includes out of period increases (decreases) of $(261) million and $85 million, respectively. (d) In 2007 and 2006, includes other-than-temporary impairment charges of $4.7 billion and $944 million, respectively. Also in 2007 and 2006, includes gains (losses) of $(1.44) billion and $(1.87) billion, respectively, from hedging activities that did not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains and losses. (e) In 2006, includes a $730 million increase in revenue for out of period adjustments related to the accounting for UCITS. (f) In 2007, includes an unrealized market valuation loss of $11.5 billion on AIGFP's super senior credit default swap portfolio. AIG 2007 Annual Report 1 DEAR FELLOW SHAREHOLDERS: fter a promising start, 2007 had a 2007 Results disappointing conclusion, both in AIG reported net income of $6.20 bil- Martin J. Sullivan terms of our results and share lion, or $2.39 per diluted share for President and A Chief Executive Officer price performance. The U.S. credit crisis, 2007, compared to $14.05 billion, or recession fears and record-high oil prices $5.36 per diluted share for 2006. caused economic disruption and uncer- Full year 2007 adjusted net income, tainty. In addition, some of our businesses excluding the effect of economically did not meet expectations. Nevertheless, effective hedging activities that did not We remain confident the fundamental strength of our core qualify for hedge accounting treatment operations is intact, and we made impor- under FAS 133, and the related in our strategy to tant advances in key markets. We remain foreign exchange gains and losses, was leverage our financial confident in our strategy to leverage our $9.31 billion, or $3.58 per diluted financial strength and global franchise share, compared to $15.41 billion, or strength and global to continue our growth in both emerging $5.88 per diluted share for 2006. franchise to continue and developed markets. Although it Included in 2007 net income and our growth in both appears economic conditions will not be adjusted net income was a charge of any better in 2008, we continue to see $11.47 billion pretax ($7.46 billion after emerging and many opportunities to deliver quality tax) for unrealized market valuation developed markets. insurance and financial products and losses related to the AIG Financial services to customers around the world. Products Corp. (AIGFP) super senior credit default swap portfolio. Based upon its most current analysis, AIG believes any losses that are realized over time on the super senior credit default swap portfolio of AIGFP will not be material to AIG’s 2 AIG 2007 Annual Report overall financial condition, although it is received approval to set up a representative possible that realized losses could be mate- office in Tianjin, our first operation in rial to AIG’s consolidated results of oper- China’s third-largest city. ations for an individual reporting period. In Korea, we obtained preliminary Full year results also include pretax net approval from the Financial Supervisory realized capital losses of $3.59 billion. Service to offer mortgage reinsurance Consolidated assets increased in 2007 through AIG United Guaranty Insurance to $1.061 trillion, up from $979.41 billion (Asia) Limited. We signed a memoran- in 2006. At year end, book value per share dum of understanding with the Bank BusinessWeek named AIG one stood at $37.87, down from $39.09 of Investment and Development of of the 100 Best Global Brands, at the end of 2006. Shareholders’ equity Vietnam for the expansion of our business a testament to the brand’s growing value in markets all over the world. also declined to $95.80 billion from cooperation agreement in that rapidly $101.68 billion at the end of 2006. AIG growing country. The agreement will recorded total revenues during the year of allow us to expand beyond our existing $110.06 billion, 2.9 percent below 2006 relationship in life insurance to include revenues. Revenues, shareholders’ equity a wide range of areas such as general and book value per share were adversely insurance, consumer finance, asset affected by realized capital losses and management and banking services. the net unrealized market valuation loss We are rapidly building a consumer recorded by AIGFP. finance franchise in India to complement our Tata AIG Life and General Insurance 2007 Highlights partnership. In 2007, we established a We overcame the challenges of 2007 to presence in housing finance and consumer make progress on several fronts. We were durable finance. In addition, we are In 2007, AIG received approval from pleased when the China Insurance strengthening our presence in asset man- the China Insurance Regulatory Commission to establish a wholly Regulatory Commission approved our agement and real estate development. owned general insurance subsidiary application to establish a Wholly Owned In the Middle East, American Life in China(pictured, Shanghai skyline). Foreign Enterprise (WOFE) under the Insurance Company (ALICO) received name AIG General Insurance Company a license to operate a retail life insurance China Limited (AIG General). Soon business in the Qatar Financial Centre. after, we opened a new AIG General ALICO is the first life insurance company headquarters in Shanghai and consoli- to receive an expanded license, which is dated our Chinese general insurance in addition to a wholesale life insurance operations there to capture efficiencies license first obtained in February 2007. and provide a platform to establish new Our acquisition of the German branches in other areas of China. AIA insurer Württembergische und Badische China continued to expand on the Versicherungs-AG (WüBa) reaffirmed our provincial licenses granted in 2006, commitment to growth in the German opening 29 new sales and service centers marketplace, and greatly enhanced in 2007, for a total of 104 centers in 19 our insurance offerings to small and The AIG Private Client Group’s cities. In addition, AIG InvestmentsSM midsize companies. Wildfire Protection Unit® uses the We advanced our strategy in the auto latest fire-mitigation technology to help protect policyholders’ proper- insurance sector when we acquired the out- ties in the western United States. standing shares of 21st Century Insurance Group that we did not already own.
Load more

Recommended publications
  • American International Group, Inc. (Exact Name of Registrant As Specified in Its Charter)
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ¥ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2007 or n TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8787 American International Group, Inc. (Exact name of registrant as specified in its charter) Delaware 13-2592361 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 70 Pine Street, New York, New York 10270 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (212) 770-7000 Former name, former address and former fiscal year, if changed since last report: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ¥ No n Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non- accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer ¥ Accelerated filer n Non-accelerated filer n Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
    [Show full text]
  • PX-360: 1/9/2004: American International Group, Inc. Form 10-Q
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2004 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8787 American International Group, Inc. (Exact name of registrant as specified in its charter) Delaware 13-2592361 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 70 Pine Street, New York, New York 10270 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (212) 770-7000 Former name, former address and former fiscal year, if changed since last report: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ü No Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ü No Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of September 30, 2004: 2,604,570,819. Table of Contents American International Group, Inc.
    [Show full text]
  • PX-352: 8/8/2002: American International Group, Inc. Form 10-Q
    Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period From to For Quarter Ended June 30, 2002 Commission File Number 1-8787 AMERICAN INTERNATIONAL GROUP, INC. (Exact name of registrant as specified in its charter) Delaware 13-2592361 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification Number) 70 Pine Street, New York, New York 10270 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code (212) 770-7000 NONE Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [ X ] NO [ ] Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of June 30, 2002: 2,610,692,135. TABLE OF CONTENTS CONSOLIDATED BALANCE SHEET CONSOLIDATED STATEMENT OF INCOME CONSOLIDATED STATEMENT OF CASH FLOWS CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME NOTES TO FINANCIAL STATEMENTS Management’s Discussion and Analysis of Financial Condition and Results of Operations PART II -- OTHER INFORMATION SIGNATURES EXHIBIT INDEX EX-12: STATEMENT RE.
    [Show full text]
  • 2009 Annual Report American International Group, Inc
    American International Group, Inc. 2009 Annual Report American International Group, Inc. (AIG) is a leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve com- mercial, institutional, and individual customers through one of the most extensive worldwide property casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services around the world. AIG common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Ireland and Tokyo. Chairman’s Johnson, George Miles, and Morris Offi t, Message represents a collective vote of confi dence in the company, its many talented people, Harvey Golub and its strategy going forward, and a Non-Executive personal willingness to deal with one of Chairman of the Board the most complicated restructurings in business history. They have been working extraordinarily hard and will continue to do so under very challenging conditions. I thank them all for their support. During the year, Stephen Bollenbach, n behalf of AIG’s Board of Martin Feldstein, James Orr, Virginia Directors, I am pleased to be Rometty, Michael Sutton, Edmund Tse, able to report to you that and Ed Liddy retired after a period of O the company and the Board have time spent dealing with the liquidity crisis made substantial progress over the past and the initial work on the government year in addressing and resolving a number bailout. We thank them for their service. of the critical issues facing the company. Most notably, in 2008, Ed Liddy joined the In addition to the positive developments company as Chairman and Chief Execu- concerning AIG that Bob Benmosche tive Offi cer as a public service and did so discusses in his letter, including reorganiz- at the behest of the U.S.
    [Show full text]
  • American International Group, Inc
    SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2003 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition period from to Commission file number 1-8787 American International Group, Inc. (Exact name of registrant as specified in its charter) Delaware 13-2592361 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 70 Pine Street, New York, New York 10270 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code (212) 770-7000 Securities registered pursuant to Section 12(b) of the Act: Name of each exchange Title of each class on which registered Common Stock, Par Value $2.50 Per Share New York Stock Exchange, Inc. Securities registered pursuant to Section 12(g) of the Act: Title of each class None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ü No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
    [Show full text]
  • AIG Annual Report (2020)
    American International Group, Inc. 2020 Annual Report Executive Chair of the Board AIG’s focus Letter to Shareholders will continue to be centered stakeholders – and each other – even on value as their own lives and work situations were significantly disrupted. creation for our AIG’s 2020 financial results and shareholders, progress on strategic initiatives demonstrated the considerable clients and changes we have made across the organization since late 2017. Today, distribution we are a significantly de-risked company with a stronger balance partners, sheet, fortified reinsurance programs, enhanced underwriting capabilities, colleagues, and and a diverse platform of products and services. This substantial communities. progress allowed us to announce our intention to separate the Life and Brian Duperreault Executive Chair of the Board Retirement business from AIG. American International Group, Inc. In 2020, we also announced Your trust and confidence in AIG leadership transitions, with Peter are well placed. Zaffino taking on the role of Chief Dear AIG Shareholder: Executive Officer and me becoming Sincerely, Executive Chair. Peter and I For AIG, 2020 was a year to remember seamlessly transitioned into these because of our improving financial new roles on March 1, 2021. performance and the substantial Doug Steenland has become advancements we made to become a Lead Independent Director of the top-performing company and leading AIG Board. insurance franchise. It was also a Brian Duperreault year to never forget because of the As Executive Chair, I look forward to Executive Chair of the Board pandemic that brought economies supporting Peter as we continue our American International Group, Inc. to a standstill, and the unfortunate journey toward industry leadership.
    [Show full text]
  • PX-359: 8/9/2004: American International Group, Inc. Form 10-Q
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2004 or o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-8787 American International Group, Inc. (Exact name of registrant as specified in its charter) Delaware 13-2592361 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 70 Pine Street, New York, New York 10270 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (212) 770-7000 Former name, former address and former fiscal year, if changed since last report: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ü No Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ü No Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of June 30, 2004: 2,605,397,546. American International Group, Inc. and Subsidiaries CONSOLIDATED BALANCE SHEET (in millions) (unaudited) June 30, December
    [Show full text]
  • AIG Contents American International Group, Inc
    American 2006 International Annual Group, Inc. Report Putting Strategies Into Action About AIG Contents American International Group, Inc. (AIG), world Financial Highlights 1 leaders in insurance and financial services, is Letter to Shareholders 2 the leading international insurance organization, with operations in more than 130 countries and AIG: Putting Strategies Into Action 9 jurisdictions. AIG companies serve commercial, AIG at a Glance 22 institutional and individual customers through the most extensive worldwide property-casualty Review of Operations 24 and life insurance networks of any insurer. In Reconciliation in Accordance addition, AIG companies are leading providers with Regulation G 40 of retirement services, financial services and Five Year Summary of asset management around the world. Consolidated Operations 41 Five Year Summary of Selected About the Cover Financial Information 42 Supplemental Many of our largest commercial customers in Financial Information 44 the United States purchase three or more 46 different kinds of property-casualty insurance Board of Directors from AIG’s Domestic Brokerage Group (DBG) Corporate Directory 47 companies. DBG puts a “total account review” strategy into action for these customers where Annual Report on Form 10-K Inside underwriters, claims and business development Shareholder Information Back Cover professionals work alongside one another, as they are shown here, to ensure the delivery of best-in-class products and services. Financial Highlights (in millions, except per share data
    [Show full text]
  • Corporate Structure American International Group, Inc
    Corporate Structure American International Group, Inc. (NYSE: AIG) American International Group, Inc. (NY, USA) - Insurance Underwriter, Assets $863,697M Green Park Financial Limited Partnership (MD, USA)1(50.00% owned) - Finance Company Chartis Inc. - P&C Insurance Chartis U.S., Inc. - P&C Insurance American Home Assurance Company (NY, USA) - P&C Insurance, Assets $24,969M Transatlantic Holdings, Inc. (NY, USA)(1.10% owned) - Insurance Underwriter, Assets $15,134M Transatlantic Reinsurance Company (NY, USA) - P&C Insurance, Assets $12,718M Trans Re Zurich (Switzerland) - Non-NAIC Rein Cprty Putnam Reinsurance Company (NY, USA) - P&C Insurance, Assets $666M Kuwait Reinsurance Company (K.S.C) (Kuwait)(40.00% owned) - Non-NAIC Rein Cprty Transatlantic Reinsurance Company (Canada) - Non-NAIC Rein Cprty Professional Risk Management Services, Inc. (VA, USA) Chartis Non-Life Holding Company (Japan), Inc. (Japan) Fuji Fire and Marine Insurance Co., Ltd. (Japan)2(54.65% owned) - Non-NAIC Rein Cprty American Fuji Fire and Marine Insurance Company (IL, USA) - P&C Insurance, Assets $93M Fuji International Insurance Company, Limited (United Kingdom) - Non- NAIC Rein Cprty Fuji Life Insurance Company, Limited (Japan) Japan Earthquake Reinsurance Company Limited (Japan)3(6.20% owned) - Non-NAIC Rein Cprty Fuji Fire and Marine Insurance Co., Ltd. (Japan)2(2.76% owned) - Non-NAIC Rein Cprty American Fuji Fire and Marine Insurance Company (IL, USA) - P&C Insurance, Assets $93M Fuji International Insurance Company, Limited (United Kingdom) - Non-NAIC Rein Cprty Fuji Life Insurance Company, Limited (Japan) Japan Earthquake Reinsurance Company Limited (Japan)3(6.20% owned) - Non- NAIC Rein Cprty Chartis Overseas Association (Bermuda)4(10.00% owned) AIG Metropolitana Compania de Seguros y Reaseguros S.A.
    [Show full text]