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I jki •+~ t . 3 . r 4t TABLE OF CONTENTS Page I. INTRODUCTION ...... 1
II. JURISDICTION AND VENUE 3
III. THE PARTIES ...... 4
A. Plaintiff ...... 4
B. Defendants ...... 5
1 . Aiding and Abetting/Conspiracy ...... 8
2. Unnamed Participants ...... 8 . IV. CLASS ALLEGATIONS ...... 9
V. FACTUAL ALLEGATIONS ...... 1 0
A. The Corporate Culture At AIG ...... 1 0
B. AIG's Arrangements With Starr Entities ...... 12
C. The Pervasive Accounting Improprieties ...... 1 5
1 . Use Of Offshore, AIG Affiliates To Manipulate Financial Statements . . 1 5
2. AIG's Sham Reinsurance Deal With General Re ...... 1 7
3. Covered Calls On Bonds ...... 1 9
4. Misstated Accounting Items ...... 20
D. Defendants Conceal Accounting Improprieties And Misstate AIG's Financia l Condition In Public Reports, Filings And Statements ...... 2 1
E. Securities Regulators Subpoena AIG's Records ...... 32
F. The Accounting Fraud Is Finally Revealed To The Market ...... 3 4
G. Violations of Accounting Rules ...... 3 8
VI. SCIENTER ALLEGATIONS ...... 4 1
VII. CAUSES OF ACTION ...... 42
JURY TRIAL DEMAND ...... 48
-1- Plaintiff San Francisco Employees' Retirement System ("Plaintiff' or "SFERS") ,
individually and on behalf of all those similarly situated, allege the following based upon th e
investigation of plaintiffs and their counsel, including a review of regulatory investigations ,
regulatory filings, reports, press releases and media reports .
1. INTRODUCTION
1 . This is a class action on behalf of persons who purchased securities of America n
International Group, Inc . ("AIG") between October 1, 1999 and March 30, 2005 (the "Clas s
Period") arising out of defendants' dissemination of false and misleading statements concerning
the Company's financial condition and accounting practices relating to, among other items, non-
traditional insurance products, assumed reinsurance transactions, and use of affiliated entities fo r
executive compensation .
2. What once began as a government investigation by the Office of the Attorney
General for the State of New York ("NYAG") and the Securities and Exchange Commission
("SEC") into two reinsurance transactions by which defendants tried to hide liabilities from
investors has now mushroomed into AIG's recent admission of pervasive accounting
irregularities and conflicts of interest infecting its business .
3 . On March 30, 2005, AIG issued a press release and admitted that it had
improperly entered into "transactions which appear to have been structured for the sole or primary purpose of accomplishing a desired accounting result " The transactions included a sham reinsurance deal set up with defendant General Reinsurance Corporation solely to bolster reserves; transactions with supposedly independent companies that were in fact controlled b y
AIG; bond transactions that allowed AIG to claim gains without actually selling the bonds; mis- classified losses; and questionable estimates on deferred acquisition costs . AIG conceded that its
net worth would have to be reduced by $1.7 Billion .
4. In response to this news , AIG's stock value plunged. Between February 14, 2005 , when AIG first disclosed that it had received subpoenas from the SEC and NYAG, and April 1 ,
2005, after AIG startling admissions , AIG's share value fell approximately 30%. The damages of plaintiffs and other Class members exceeded $50 billion .
5. Remarkably, rather than cooperate with regulatory investigations to ensure that al l material information was finally revealed to the public markets, defendants have resisted discovery, destroyed evidence, and engaged in blatant efforts to shield personal assets . This includes the efforts of defendant Maurice "Hank" Greenberg, the former CEO and Chairman of
AIG, whopersonally negotiated some of the very deals now acknowledged to be a sham .
6. On March 25, 2004, the same day that the SEC issued subpoenas for AI G documents, lawyers representing Greenberg and his controlled companies, defendants Star r
International Inc. and C.V. Starr & Co., reportedly removed 87 boxes of documents from AIG's
Bermuda offices that also are occupied by Starr officials . The Starr companies were used b y
Greenberg to provide millions of dollars in compensation to AIG executives, and were known to be under government scrutiny. Responding to the removal of documents, federal authoritie s were forced to take the unusual step of securing a court order securing the documents o f
Greenberg, AIG and C .V. Starr and barring their destruction during the probe .
7. On Sunday, April 10, 2005, Attorney General Eliot Spitzer, who had subpoenae d
AIG records, appeared on a national news program on ABC and said that Greenberg had misled the public about AIG's dealings, "That company was a black box run with an iron fist by a CE O who did not tell the truth. That is the problem. . . . We have powerful evidence, and will proceed
2 with it. . . . The evidence is overwhelming that these were transactions created for the purpose o f
deceiving the market. We call that fraud. It is deceptive. It is wrong. It is illegal."
8 . Two days later, on April 12, 2005, Greenberg appeared to be interviewed b y
government investigators but refused to answer questions and invoked the 5 " Amendment to
avoid self-incrimination, following the lead of defendants Howard Smith, Christian Milton an d
Michael Murphy . That same day, Greenberg filed a Form 4 with the SEC revealing that he ha d
gifted his wife 41 .4 million shares of AIG, representing 95% of his personal stake . The gift was
valued at $2 .68 billion on the day of the transaction.
9. On May 1, 2005, AIG announced that it needed to restate its financial statements
for the years ended December 31, 2003, 2002, 2001 and 2000, the quarters ended March 31, Jun e
30, and September 30, 2004 and 2003, and the quarter ended December 31, 2003, and that its
prior financial statements for those periods should no longer be relied upon. AIG also announced
that its consolidated shareholders' equity would be reduced by approximately $2 . 7 billion -- or $ 1
billion more than previously announced - due to accounting errors and internal contro l
deficiencies .
10 . By this action, plaintiff seeks to recover lost funds for the victims of these
improper accounting schemes .
II. JURISDICTION AND VENUE
11 . Plaintiff asserts claims under Sections 10(b) and 20(a) of the Securities Exchang e
Act of 1934 ("1934 Act"), 15 U .S .C. §§78j(b) and 78t(a), and Rule lOb-5 . This Court has jurisdiction of this action pursuant to Section 27 of the 1934 Act, 15 U.S.C. §78aa. Venue of this action is proper in this Court pursuant to Section 27 of the 1934 Act . The subject acts and transactions occurred in this district .
3 12. Defendants, directly and/or indirectly, used the means and instrumentalities o f
interstate commerce, the United States mails, and the facilities or the national securities market s
in connection with the acts, conduct, and other wrongs complained of herein.
III. THE PARTIE S
A. Plaintiff
13 . Plaintiff San Francisco Employees' Retirement System ("SFERS" or "Plaintiff')
is an agency of the City and County of San Francisco . SFERS is a defined benefit retirement
plan. SFERS provides or will provide retirement benefits to over 50,000 active and retire d
employees of the City and County of San Francisco, the San Francisco Unified School District,
and other local agencies. Including all purchases, sales and stock splits, on a net basis SFERS
acquired 336,326 total shares of AIG common stock between October 1, 1999 and March 30 ,
2005. SFERS suffered losses on its investments in AIG common stock of over $4 .2 million.
14. Plaintiff and other Class members purchased AIG stock in the open market ,
unaware that defendants' statements and omissions regarding the stock and financial results wer e
false and/or misleading and were causing AIG's stock price to be artificially inflated. Plaintiff
and the Class relied upon defendants' statements and omissions in AIG's public reports, pres s releases, and SEC filings when they purchased AIG common stock and were thus injured by the defendants' actions. Plaintiff and the Class further relied on the integrity of the market for AI G securities and the fact that AIG common stock was fairly priced . Believing the defendants' statements to be true has resulted in injury to the plaintiff and each Class member.
4 B. Defendants
15 . Defendant American International Group Inc. ("AIG") is a holding company
that, through its subsidiaries, is engaged in a range of insurance and insurance-related activities i n
the United States and abroad. AIG operates in the United States. During the Class Period, AI G
had approximately 2 .6 billion shares of common stock outstanding which was listed in the
United States on the New York Stock Exchange, as well as the stock exchanges in London, Paris ,
Switzerland and Tokyo, and traded in an efficient market . In 2004, AIG became one of the 30
stocks in the Dow industrials .
16. Defendant C.V. Starr & Co., Inc. ("Starr") is a private insurance brokerage
company and commercial casualty insurer, based in San Francisco, California . Starr develops
business and issues specialized policies for AIG and serves as a vehicle for AIG to award
deferred compensation source to its 80 partners , who are top executives of AIG. Starr is
privately owned and operated by AIG executives, many of whom perform functions virtuall y
identical to what they do at AIG . Greenberg is the CEO and Chairman of Starr, and owns abou t
17% of Starr's common stock . Starr is also a significant shareholder in AIG, controllin g
approximately 2% of AIG shares, worth about $3 billion. Starr is also affiliated with the C.V.
Starr & Co., Inc. Trust ("Starr Trust"), which serves as a private holding entity for Starr management, including Greenberg, who serves as a Trustee to the Starr Trust .
17. Defendant Starr International Inc. ("SICO") is a private, offshore holding
company, operating out of Bermuda. SICO owns about 12% of AIG stock, making it AIG' s largest shareholder . SICO 's main function is to provide deferred compensation to AI G executives on top of their AIG pay, through SICO stock . Until recently, SICO maintained a joint office with AIG in Bermuda . Greenberg and other AIG directors sat on the Board of SICO, have large personal stakes in SICO, and decide who gets paid from the SICO assets. Greenberg controls 8.3% of the stock of SICO.
18 . Defendant General Reinsurance Corporation ("General Re") is a corporation providing reinsurance products and services . General Re is a wholly-owned subsidiary of
Berkshire Hathaway.
19. Defendant Maurice Greenberg ("Greenberg") is the former CEO and Chairma n of the Board of AIG. Greenberg was forced to resign as CEO on March 14, 2005, followin g disclosures that he personally participated in the wrongful conduct alleged herein. Greenberg then resigned as Chairman of AIG on March 28, 2005, just days before his interview by government regulators at which he refused to testify and instead, invoked the 5' Amendment .
During the Class Period, and up until the time he gifted 95% of his shares to his wife, Greenberg maintained significant control of AIG through his 1 .7% personal shareholding and stakes i n private entities that together owned another 15 .7%. Greenberg controls 8.3% of the stock o f
SICO and is president and CEO of Starr, where he owns 17% of the common stock .
20. Defendant Howard Smith ("Smith") is the former Chief Financial Officer and
Vice Chairman of AIG . Smith prepared, signed and certified the false and misleading press releases and public SEC filings of AIG during the Class Period, including all Forms 10-Q an d
10-K filed during the Class Period . Smith was fired in March 2005, after he refused to answe r questions by government regulators.
21 . Defendant Christian Milton ("Milton") is the former Vice President of AIG, in charge of reinsurance. In that capacity, Milton worked with Greenberg to negotiate the General
Re transaction described herein . Milton was fired in March 2005, after he refused to answer questions by government regulators .
6 22. Defendant L. Michael Murphy ("Murphy") is a former senior executive at AIG ,
corporate secretary for SICO, and Greenberg' s chosen person to help run the Bermuda-based uni t
of AIG and Bermuda-based affiliates . Murphy, a close confidante of Greenberg, was a repute d
tax expert at AIG. Murphy was fired in March 2005 , after he refused to answer questions b y
government regulators and instead.
23 . Defendants Greenberg, Smith, Milton and Murphy (the "Individual Defendants") ,
by reason of their stock ownership and positions with and relations to AIG, Starr and SICO, an d
other affiliated companies , were controlling persons of AIG, Starr and SICO. AIG, Starr and
SICO in turn controlled the Individual Defendants . The Individual Defendants and AIG are
liable under Section 20 (a) of the 1934 Act.
24. The Individual Defendants served as senior officers, directors and/or employees of
AIG, Starr and/or SICO during the Class Period and, because of their positions, were able to
control the contents of the representations made to stockholders and the public, had access t o
adverse undisclosed information regarding the company which contradicted the informatio n
disseminated to the public, and had the authority to prevent or correct the disseminations .
Furthermore, the Individual Defendants each had an affirmative duty to promptly disseminate
accurate and truthful information and/or correct any misleading and untrue information regardin g
AIG's financial condition, performance, growth, operations, financial statements, business ,
products, markets, management, earnings, and business prospects. Despite this affirmative duty,
the Individual Defendants knowingly and intentionally made misleading statements and
omissions in order to artificially inflate the price of AIG stock.
25 . Defendants are liable for the false statements pleaded herein. The statements are each "group-published" information for which they are responsible .
7 26 . Defendants are not protected by any statutory safe harbor for forward-lookin g statements because that protection does not extend to the allegedly false statements pleaded i n this complaint. First, many of the specific statements pleaded herein were not identified a s
"forward-looking statements" when made . Second, to the extent there were any forward-lookin g statements, defendants did not provide meaningful cautionary statements identifying importan t factors that could cause actual results to differ materially from those in the purportedly forward- looking statements pleaded herein . Defendants are liable for those false forward-looking statements because they knew, at the time each such statement was made, and/or authorize d and/or approved by an executive officer and/or director of AIG, that those statements were false .
1 . Aiding and Abetting/Conspirac y
27. Defendants, and each of them, are sued as participants and as aiders and abettors herein alleged. At all relevant times, each defendant was and is the agent of each of th e remaining defendants, and in doing the acts alleged herein, was acting within the course an d scope of such agency. Each defendant ratified and/or authorized the wrongful acts of each of th e defendants. There is a unity of interest and ownership between the defendants listed above, suc h that the acts of the one are for the benefit and can be imputed as the acts of the other .
2. Unnamed Participants
28 . Numerous individuals and entities participated actively during the course of and i n furtherance of the scheme described herein . The individuals and entities acted in concert by joint ventures and by acting as agents for principals, in order to advance the objectives of the schem e and to provide the scheme to benefit defendants and themselves through the purchase and sale of mutual funds to the detriment of plaintiffs and the Class .
8 IV. CLASS ALLEGATION S
29. Plaintiff brings this action as a class action pursuant to Rule 23 of the Federal
Rules of Civil Procedure, on its own behalf and on behalf of the following class :
"All persons and entities who, during the Class Period from October 1, 1999 through March 30, 2005, purchased shares in AIG publicly traded securities ."
The Class includes persons who were damaged by virtue of the misrepresentations, omissions and schemes described herein, reflected in the loss of share value in response to news about
AIG's misstatements, between February 14, 2005, when AIG first disclosed that it had receive d subpoenas from the SEC and NYAG, and April 1, 2005, after AIG admissions of financia l schemes and accounting errors . Excluded from the Class are defendants herein, members of thei r immediate families and their legal representatives, parents, affiliates, heirs, successors or assign s and any entity in which defendants have or had a controlling interest, officers and directors o f
AIG and General Re and any entity in which they have or had a controlling interest including
SICO and Starr, and any other person who engaged in the improper conduct described herein (th e
"Excluded Persons"). Also excluded are any officers, directors, or trustees of the Exclude d
Persons.
30. The members of the Class are so numerous and so widely dispersed throughou t the nation that joinder of all of them is impracticable. While the exact number of Class members is unknown to plaintiffs at the present time and can only be ascertained from books and records maintained by defendants and/or their agents, plaintiff believes that the Class members number in the hundreds of thousands .
31 . Plaintiffs claims are typical of those of other Class members . Plaintiff purchased
AIG shares and sustained damages as a result of defendants' wrongful conduct complained o f herein.
9 32 . Plaintiff will fairly and adequately protect the interests of the members of the
Class. Plaintiff has retained competent counsel experienced in class action securities litigation .
Plaintiffs have no interests that are adverse or antagonistic to those of the Class .
33 . There are common questions of law and fact arising in this action with respect to the Class, including, inter alia:
a. Whether defendants' acts alleged herein violated federal securities laws ; and
b. Whether plaintiff and members of the Class were damaged, and the appropriate measure of damages .
34. These questions of fact and law that are common to the Class predominate ove r any questions solely affecting individual members .
35. A class action is superior to all other available methods for the fair and efficient adjudication of this controversy . Plaintiff knows of no difficulty to be encountered in the management of this action that would preclude its maintenance as a class action.
V. FACTUAL ALLEGATION S
A. The Corporate Culture At AIG
36. AIG traces its origins to China in the early 20thcentury . In 1919, in Shanghai,
Cornelius Vander Starr founded American Asiatic Underwriters. By 1939, Starr moved his headquarters to New York, providing marine, fire and life insurance.
37. Defendant Greenberg joined Starr's company in 1960 and, after Starr fell ill, too k over. Greenberg applied an expansion strategy, acquiring multiple companies. The parent company became AIG. Today, AIG is the world' s largest insurance company, providing both
10 insurance and financial-services businesses. AIG reported revenue of $98.61 billion in 2004 and does business in 130 countries.
38 . As the head of AIG for the past four decades, acting as its CEO and Chairman ,
Greenberg has ruled AIG as a personal fiefdom and, at his direction, created a corporate cultur e based on secrecy and loyalty and, in return, high financial rewards . In his executive suite filled with Chinese artifacts, Greenberg reportedly had his own elevator guarded by is own securit y detail, his own living room adjoining his office, and a private chandeliered dining room .
According to press reports citing former AIG executives, AIG management who traveled wit h
Greenberg on business were required to use the small pilot's bathroom in the front of th e corporate plane, while a large bathroom in the back of the plane was reserved for Greenberg, hi s wife, and their Maltese dog, Snowball.
39. AIG's high level management and its Board of Directors were both notoriously close to Greenberg and hesitant to ask him questions because they didn't want to appear ignoran t or to challenge Greenberg's authority . At a board meeting, according to press reports, on e director asked Greenberg if the board shouldn't consider lessening the conflicting ties between
AIG and related entities essentially controlled by Greenberg, to which Greenberg replied, "Tha t would be stupid!" According to another report, responding to a director's inquiry during a board meeting, Greenberg exclaimed, "That's a ridiculous question. You don't understand the insurance business ." Greenberg was also a contributor, through the Starr Foundation, a nonprofi t organization that he controlled, to institutions that some directors led or belonged to, includin g over $44 million in contributions from 1998 to 2003 .
11 B. AIG's Arrangements With Starr Entitie s
40. AIG' s focus on growth reflects the personality of Greenberg . Managers under
Greenberg were reportedly drilled on the importance of the "three 15s" : 15% annual revenue
growth, 15% annual profit growth, and 15% return on equity. Over the years, AIG created many rungs in the corporate ladder for its employees, including an invitation to play at MoreFar Gol f
Club in Brewster, New York, AIG's private course north of New York City.
41 . The preeminent incentive program, however, was the Starr program . During the
Class Period, AIG maintained a highly unusual arrangement with two private, offshore entities - defendants SICO and Starr - used by Greenberg to assert and maintain firm control over his AIG managers through their compensation arrangements .
42 . SICO is a Bermuda holding. company that owns about 12% of AIG stock , currently worth about $16 billion, making it AIG's largest shareholder . Until recently, SICO maintained a joint office with AIG in Bermuda, and Greenberg and other AIG directors sat on the
Board of SICO with large personal stakes in SICO . SICO's main purpose is to provide additional compensation to AIG's employees, and has about 700 members . Under the SIC O program, payouts can range from 10% to more than 1 .5 times their base pay . In 2002, for example, SICO reportedly allotted Greenberg $11 .1 million. In 2003, SICO paid AIG's % employees $129.6 million in AIG common stock .
43 . The ultimate goal, however, is to become a "Starr partner." Starr is a insurance agency that operates both as a broker and underwriter, doing 47% of its business with AIG . It is privately owned and operated by a few current and former AIG executives, led by Greenberg , who owns 17%, and Martin Sullivan, who owns 4 .6%. Many of the executives of Starr perform functions virtually identical to what they do at AIG . Greenberg is the President and Chairman of
12 Starr. Sullivan, Greenberg's hand-picked successor as CEO of AIG , and a close confidante of
Greenberg, also serves as a director in SICO and Starr . Starr is also a significant shareholder in
AIG, controlling about 2% of AIG shares, worth about $2 .5 billion.
44. Like SICO, Starr was used as a compensation source to supplement AIG employee's paychecks. However, unlike SICO, Starr comprises only about 80 partners, including the highest ranking executives of AIG. When members are invited to join, the y reportedly are allotted a 0.5% nonvoting stake costing them about $300 per share, often funde d with loans from the company . Every year, if they produce, their stakes and power increase. One percent, for example, brings voting rights.
45 . According to press reports , the Starr partners meet each year at AIG's headquarters and gather in the giant conference boardroom, where they receive an envelope wit h their name on the front and a single sheet of paper inside. The paper has two lines, listing how many preferred shares the recipient received that year in the Starr partnership and how much thei r prior stake's value climbed in the year. Greenberg, Starr's Chairman, usually gives a quic k update of the business, few questions are asked, and the meeting ends with attendees breaking fo r dinner. The Wall Street Journal recently quoted Greenberg to state, "It is the ultimate accolade, " and membership "makes people feel that they are part of a club . "
46. The Starr and SICO entities amount to a massive conflict of interest and anomal y in American business - large shareholders intimately involved in the executive compensation an d operations of a public company, operating entirely outside its corporate structure . Indeed, by virtue of this arrangement, Greenberg and SICO are able to hide executive pay amounts fro m public scrutiny and take away powers that ordinarily and properly lie with personnel department s and reviewed by the compensation committee of a Board . Greenberg could and did dole out
13 perks at his own discretion, determining which AIG employees were going to retire millionaires or even billionaires .
47 . The Starr and SICO entities provided an effective and private instrument for
Greenberg to wield power and maintain control of A1G . Because of the Starr and SICO structure, management had personal financial reasons not to speak up and incur Greenberg' s wrath or risk exclusion from the lucrative benefits . Moreover, anyone who left AIG, or wa s fired, prior to retirement typically forfeited their lucrative payments . The message was wel l known at AIG : if you toed the line drawn by Greenberg, you could be set for life .
48 . Finally, because the Starr and SICO entities did business with AIG, they were steeped in conflicts of interest . The Starr and SICO entities provided defendants, including
Greenberg, with a mechanism to massage financial results through complex reinsurance transactions , using companies owned, operated or controlled by Starr and/or SICO .
49. One such company was Astral Reinsurance Co, a reinsurance company based in
Bermuda and managed by AIG executives, including Murphy. Astral was at least partly owned by SICO, and run by Murphy and Joseph Johnson, Astral's President and at the same time, an employee ofAIG. Johnson is currently the chairman of AIG's Bermuda operations. Murphy,
Johnson and Stuart Osborne, another AIG executive in Bermuda, served as Astral's directors .
Osborne, an accountant, resigned from AIG in April 2005 without stating a reason. Until it was liquidated in 2002, Astral shared an address with SICO and AIG in Bermuda, and held more than
1 % of AIG's stock . According to reports, securities regulators are investigating whether AIG used Astral to hide liabilities or boost income through the use of reinsurance transactions.
Murphy and Johnson ran at least two other small insurance firms in Bermuda, Civic Insuranc e
Co. and Omnivintage Insurance , which was set up to reinsure AIG business.
14 C. The Pervasive Accounting Improprieties
50. During the Class Period, defendants were focused on public reaction to its key financial metrics, including reserves, premium income, and earnings, in order to boost the AIG
stock price. AIG promoted itself as being a model of earnings consistency against competitors i n a notoriously volatile industry, and went to extreme lengths to maintain this perception, even if artificial, including taking full advantage of AIG 's affiliate companies set-up and run b y
Greenberg himself.
1. Use Of Offshore. AIG Affiliates To Manipulate Financial Statements
51 . AIG set up a complex web of subsidiaries and affiliate companies worldwide for a variety of reasons, including to shield its tax liabilities and improperly burnish its financia l results.
52. Several of these affiliate companies were engaged in the business of reinsurance .
Reinsurance is insurance that insurers buy to spread losses from policies they sell to individuals and companies. AIG's general insurance company subsidiaries operate worldwide , primarily by underwriting and accepting risks for their direct account and securing reinsurance on that portio n of the risk in excess of the limit which they wish to retain.
53 . AIG subsidiaries also ceded business to each other . For example, during the Clas s
Period, Union Excess Reinsurance Company, Ltd . ("Union Excess") a Barbados-based company affiliated with AIG, reinsured risks emanating primarily or solely from AIG subsidiaries, both directly and indirectly. At the time of this business, a significant portion of the ownershi p interests of Union Excess shareholders were protected under financial arrangements with SICO, the private holding company controlled by Greenberg and AIG's largest shareholder .
15 54 . During the Class Period, the transactions with Union Excess permitted AIG t o reflect income arising from the discounting of reserves permitted under Barbados law .
However, since Union Excess was an affiliate , AIG should have treated Union Excess as an consolidated entity in its financial reporting . Despite defendants' knowledge of and consent t o this relationship, it did not. Properly incorporating these transactions into AIG's books will now result in a reduction of approximately $1.1 billion in AIG's consolidated shareholders' equity as of December 31, 2004, reflecting the after-tax cumulative effect of the transactions with Union
Excess over a 14 year period from 1991 to 2004.
55. AIG subsidiaries also ceded reinsurance to subsidiaries of Richmond Insurance
Company, Ltd. ("Richmond"), a Bermuda-based reinsurance holding company that AIG controls and holds a 19 .9% ownership interest in. Again, based on such control, defendants knew that
Richmond should have been treated as a affiliate and consolidated entity in AIG's financia l statements . It was not . Consolidation of Richmond will result in an increase in consolidate d liabilities and a decrease in AIG's consolidated shareholders' equity as of December 31, 2004 .
56. AIG also entered into improper transactions with Capco Reinsurance Company,
Ltd. ("Capco"), a Barbados-based reinsurer, again with defendants' knowledge and consent. The transactions involved a self-described "improper structure " created by AIG to recharacterize underwriting losses as capital losses, since underwriting losses hit operating profits, a ke y earnings metric in the insurance industry. The structure, which consisted primarily o f arrangements between subsidiaries of AIG and Capco, required that Capco be treated as a consolidated entity in AIG's financial statements. It was not. As a result, AIG must now restate
$200 million capital losses as an equal amount of underwriting losses relating to auto warranty business from 2000 through 2003 .
16 2. AIG's Sham Reinsurance Deal With General Re
57. In 2000, the property and casualty insurance market was suffering from an
extended downturn, and questions were being raised about whether AIG had sufficient reserves ,
the money set aside to pay future claims . The day AIG posted its third-quarter earnings results
with reduced claims reserves, AIG's shares fell 6%. Reserves are a critical gauge of an insurance
company's solvency and financial strength . Usually, reserves are bolstered by taking money out
of earnings. Greenberg had different plans, wanting to increase premiums risk free .
58. In October 2000, Greenberg contacted Ronald Ferguson, then chief of General Re .
Greenberg told Ferguson that he wanted to do a deal with General Re to boost AIG's reserves fo r
the coming quarter . Greenberg proposed that General Re transfer a block of business to AIG ,
including both premiums and the responsibility for paying some claims and, in return, promised
General Re a fee.
59. Defendants structured the deal in a convoluted manner to avoid scrutiny, utilizin g
AIG and General Re offshore subsidiaries . At Greenberg's direction, defendant Milton
negotiated with Ferguson and John Houldsworth, the chief underwriter for General Re's finit e
insurance products in Dublin, and structured the deal so that AIG's Bermuda unit, Nationa l
Union, purchased a portfolio of claims and premiums worth $500 million from General Re' s
Cologne Re unit in Dublin. The deal included two tranches of $250 million each which too k
place in December 2000 and March 2001 . In connection with each tranche, National Union
booked the premiums as revenue and added $250 million to its reserves for potential losses in
each of the fourth quarter of 2000 and the first quarter of 2001, ultimately boosting AIG' s reserves by $500 million .
17 60 . As now admitted by AIG, the Gen Re transaction was a sham and th e
documentation for the deal improper . Since AIG faced little or no risk on the deal, it was not
insuring anything, and should not either have treated the $500 million as premium revenue or
have increased its reserves . The transactions should not have been recorded or accounted for a s
insurance on AIG's books, and should have been characterized as a loan, given there was no
legitimate risk transfer.
61 . Defendants, including Greenberg and Milton who negotiated the deal, knew tha t
the deal was reached for the sole purpose of inflating reserves, yet intentionally concealed thi s
information from the public. For example, Milton and an AIG finance executive participated in a
November 2000 conference call with two General Re executives, Rick Napier and Elizabeth
Monrad, before the deal was executed, and Milton was reportedly told that the deal wouldn' t
transfer enough risk to qualify for the favorable accounting treatment that AIG subsequentl y
used. Napier and Monrad reportedly asked Milton if that was still acceptable to AIG and wer e
told that the lack of risk transfer didn't cause them problems .
62. Securities regulators have reportedly assembled documents and emails from AI G
and General Re detailing the transaction - code named "Project Alpha" - and discussing
Greenberg's personal directions on how to structure the deal to make it risk free . In a recorded
phone conversation, a General Re employee reportedly remarked that the deal with AIG woul d
allow the insurer "to cook its books ." Another email from a General Re executive reportedl y
refers to a "discussion" between Greenberg (identified by his initials "MRG") and Ferguson
involving several aspects of the deal, including the comment, "We need to work out a mechanism" for AIG to pay General Re for the deal . Investigators also reportedly discovered tha t
18 AIG didn't even set up an underwriting file - essentially a risk analysis - on the deal, a typica l
step in insurance transactions that involve real risk .
63 . Greenberg and Milton even structured the bonus payment to General Re - $ 5
million - in a convoluted manner to avoid scrutiny. According to press reports, General Re firs t
paid AIG $10 million in fees . AIG then returned that sum to General Re along with the $ 5
million in fees, routing the money through an AIG-affiliated insurer. General Re split the net $ 5
million with Cologne Re.
64. In January 2005, General Re attorneys reportedly discovered an email from a
General Re employee to an employee of its Cologne Re unit urging that a file relating to the
transaction be kept "locked in a drawer." Instead, the documents were provided to the SEC and
NYAG on or about February 8, 2005 . The next day, with evidence that Greenberg and Milton
put together a phony insurance deal whose main purpose was merely to boost AIG's reserves ,
AIG's records were subpoenaed.
65 . AIG has now commuted the first $250 million tranche of the transaction with
General Re, which reduced premiums and reserves for losses and loss expenses by approximately
$250 million in the fourth quarter 2004 previously reported unaudited financial information . The
second tranche remains on AIG's books as previously recorded but will also have to be corrected.
AIG's financial statements will have to be adjusted to recharacterize such transactions as deposits rather than as consolidated net premiums, reducing the reserve for losses and loss expenses by
$250 million and increasing other liabilities by $245 million .
3. - Covered Calls On Bonds
66. From 2001 to 2003, AIG entered into a seri es of transactions with third partie s whereby AIG subsidiaries agreed to sell in-the-money call options on bonds in their po rtfolios
19 that had unrealized appreciation associated with them. Through a series of forward transactions
and swaps that allowed AIG to retain the bonds, AIG recognized net investment income in the
amount of the unrealized gains. Thus, AIG kept the bonds and their capital gains . The result wa s
that $300 million in net investment income was booked early.
4. Misstated Accounting Items
67. During the Class Period, AIG misstated its ability to recover certain balances ,
consisting mainly of receivables in the domestic general insurance operations. According to its
recent admissions , AIG currently believes that the a fter-tax impact of these charges could be u p
to $300 million.
68. During the Class Period, AIG misstated its deferred acquisition costs and certai n
other accruals and allowances with respect to AIG's general insurance and financial service s
subsidiaries . According to AIG's recent admissions, the revisions will result in an aggregat e
after tax charge of approximately $370 million .
69. During the Class Period, AIG failed to properly identify and report its net
investment income. As a result of the "misclassifications" that AIG has recently admitted to, the
reported net investment income over the period from 2000 through 2004 was overstated by
approximately four percent. In a March 31, 2005 article , the New York Times said that a report
from Dowling & Partners Securities, an insurance research firm in Farmington, Connecticut,
concluded that the amount of investment income that was overstated totaled $800 milion over th e
first three quarters of 2004 alone .
70. During the Class Period, AIG failed to properly account for the deferre d
compensation granted to certain AIG employees by SICO, its affiliate . Under the accounting rules for stock compensation, if a principal stockholder of a company establishes a stock plan t o
20 pay that company's employees, the company must account for the payments as an expense on its own income statement . The payments from SICO were not included as expenses in th e calculation of AIG's consolidated net income. AIG has now acknowledged that it will have t o record the payments as expenses, which will be a charge to reported earnings .
D. Defendants Conceal Accounting Improprieties And Misstate AIG's Financia l
Condition In Public Reports, Filings And Statement s
71 . During the Class Period, in each and every Form 10-Q and Form 10-K filed with the SEC, and in each and every press release announcing AIG's financial results whic h accompanied the SEC filings as described in more detail below, defendants concealed th e deceptive and improper accounting practices described above, and later revealed in AIG's March
30, 2005 press release, and instead, repeatedly overstated the Company's financial condition because of such omissions .
72. AIG issued a press release on October 28, 1999, announcing that its Third Quarter
Income rose 17.8% to $1 .27 billion. The release, in pertinent part, stated:
American International Group, Inc . (AIG) today reported that its income for the third quarter of 1999 increased 17 .8 percent to $1 .27 billion, compared to $1 .08 billion in the third quarter of 1998. For the first nine months of 1999, net income totaled $3 .74 billion, an increase of 18.4 percent, compared to $3 .16 billion in the same period of 1998.
73 . AIG issued a press release on February 10, 2000, announcing its Fourth Quarter and Year End 1999 financial results . The release, in pertinent part, stated:
American International Group, Inc . (AIG) today reported that its net income for 1999 increased 18 .1 percent to $5.06 billion from $4.28 billion in 1998. For the fourth quarter of 1999, net income totaled $1 .31 billion, an increase of 17.2 percent, compared to $1 .12 billion in the same period of 1998 .
74 . AIG issued a press release on April 27, 2000, announcing that its First Quarte r
Income rose 15.5% to $1 .36 billion. The release, in pertinent part, stated :
21 American International Group, Inc . (AIG) today reported that its net income for the first quarter of 2000 increased 12 .3 percent to $1 .35 billion, compared to $1 .20 billion in the first quarter of 1999 . Excluding net realized capital gains (losses), income increased 15 .5 percent to $1 .36 billion, compared to $1 .18 billion in the first quarter of 1999. Income before income taxes, minority interest and realized capital gains (losses) for the first quarter of 2000 increased 14.9 percent to $2 .01 billion from $1 .75 billion reported in 1999.
Revenues in the first quarter of 2000 rose 10 .8 percent to $10.89 billion from $9.82 billion in the year-earlier quarter . AIG's shareholders' equity rose over $500 million to approximately $33 .8 billion at March 31, 2000, after open market purchases during the quarter of 10 .4 million shares of AIG common stock. At that date, AIG's consolidated assets approximated $278 billion.
AIG Chairman Mr. Greenberg commenting on the results said, "Overall, it was a good quarter for AIG. Each of our principal business groups produced solid results ."
"Worldwide general insurance net premiums written rose 4 .3 percent in the quarter, and we achieved an adjusted underwriting profit of $211 .5 million. Our combined ratio was 95 .78, compared to 95 .28 in last year's first quarter . Excluding catastrophe losses of $25 million in the quarter versus zero in last year"s first quarter, the combined ratio for first quarter 2000 was 95 .17 . We added $22 million to AIG's net loss and loss adjustment reserves in the quarter, bringing the total of such reserves to$24 .6 billion at March 31 . This reserve increase was reduced by $75 million of catastrophe losses paid in the first quarter from pre-2000 incurred losses ."
75 . AIG issued a press release on July 27, 2000 , announcing that its Second Quarter
2000 Income rose 13 .1 % to $1 .43 billion. The release, in pertinent part, stated:
American International Group, Inc . (AIG) today reported that its income excluding net realized capital gains (losses) increased 13 .1 percent to $1 .43 billion in the second quarter and 14.2 percent to $2.79 billion for the first six months of 2000 . Net income for the second quarter of 2000 increased 10 .2 percent to $ .1 .41 billion, compared to $1 .28 billion in the second quarter of 1999 . For the first six months of 2000, net income totaled $2 .75 billion, an increase of 11 .2 percent compared to $2 .48 billion in the same period of 1999 .
Income before income taxes, minority interest and realized capital gains (losses) for the second quarter of 2000 amounted to $2 .13 billion, and increase of 12.8 percent over the $1 .89 billion reported in 1999 .
22 For the first six months of 2000, income before income taxes, minority interest and realized capital gains (losses) increased 13 .8 percent to $4.14 billion from $3 .64 billion reported last year .
Revenues in the second quarter of 2000 rose 12.1 percent to $11 .43 billion from $10.20 billion in the year-earlier quarter. For the first six months, revenues totaled $22.32 billion, an increase of 11 .5 percent over $20 .02 billion in 1999.
AIG Chairman Mr . Greenberg commenting on the results said, "It was a good quarter for AIG overall, with strong results from most of our major businesses and continued progress in terms of firming pricing in the U.S . property-casualty market.
"Worldwide general insurance net premiums written rose 7 .5 percent in the quarter, and we achieved an adjusted underwriting profit of $227 .9 million. The combined ratio was 95 .92, compared to 94.60 for the second quarter of 1999 . During the quarter, we continued to pay claims, amounting to $57 million, related to last year's catastrophes, and also incurred new net catastrophe losses of $19 million. "
76. AIG issued a press release on October 26, 2000, announcing that its Third Quarte r
Income rose 14.6% to $1 .41 Billion. The release, in pertinent part, stated :
American International Group, Inc . (AIG) today reported that its income excluding net realized capital gains (losses) increased 14 .6 percent to $1 .41 billion in the third quarter and 14 .4 percent to $4.21 billion for the first nine months of 2000.
Net income for the third quarter of 2000, including net realized capital gains (losses),increased 9.3 percent to $1 .39 billion, compared to $1 .27 billion in the third quarter of 1999 . For the first nine months of 2000, net income totaled $4 .14 billion, an increase of 10 .6 percent, compared to $3 .74 billion in the same period of 1999.
Income before income taxes, minority interest and realized capital gains (losses) for the third quarter of 2000 amounted to $2 .10 billion, an increase of 15.8 percent over the $1 .81 billion reported in 1999 . For the first nine months of 2000, income before income taxes, minority interest and realized capital gains (losses) increased 14.5 percent to $6 .24 billion from $5 .45 billion reported last year.
Revenues in the third quarter of 2000 rose 15 .6 percent to $11 .14 billion from $9.64 billion in the year-earlier quarter . For the first nine months, revenues totaled $33.46 billion, an increase of 12.8 percent over $29 .66 billion in 1999.
23 AIG Chairman M.r. Greenberg commenting on the results said , "AIG had a very good quarter, with increased momentum on the domestic commercial insurance pricing front, strong results from our overseas general insurance business, an excellent quarter for life insurance, and outstanding results in our financial services and asset management businesses."
"Worldwide general insurance net premiums written increased 8 .1 percent to $ .29 billion, our largest percentage increase of the year, and we achieved an adjusted underwriting profit of $192 .7 million. The combined ratio was 96 .25, compared to 96.56 in last year's third. General insurance operating income for th quarter posted a 14 .0 percent increase over last year. Overall, our general insurance business is in very strong shape around the world and our underwriting results continue to be satisfactory . "
77. AIG issued a press release on February 8, 2001, announcing that its 2000 Net
Income rose 14 .8% to a record $5.74 billion. The release, in pertinent part, stated:
American International Group, Inc . (AIG) today reported that its income excluding net realized capital gains (losses) increased 14.8 percent to $5.74 billion for the year 2000 and 15.9 percent to $1 .53 billion in the fourth quarter of 2000 .
Revenues for the year 2000 rose 13 .1 percent to $ 45.97 billion from $40 .66 billion in 1999. Fourth quarter revenues totaled $12 .15 billion, an increase of 13.8 percent over $11 .00 billion in the year earlier quarter .
Income before taxes, minority interest and realized capital gains (losses) for the year 2000 increased 14 .8 percent to $8.49 billion fm $7 .39 billion reported last year. For, the fourth quarter of 2000, income before income taxes, minority interest and realized capital losses amounted to $2.24 billion, an increase of 15 .9 percent over the $1 .94 billion reported in 1999 .
AIG Chairman M .R. Greenberg commenting on the results said, "AIG had a very good quarter and year . Our worldwide business reported strong results and met their goals for the year. Net income for the year 2000 before realized capital gains and losses rose 14 .8 percent to a record $5 .74 billion, or $2 .45 per share. AIG is well positioned in 2001 in our principal markets . The strengthening rate environment across the board, both in the U .S . property-casualty market and in key overseas markets, is a major positive event for our industry and most particularity for AIG."
"We added $106 million to AIG's general insurance net loss and loss adjustment reserves for the quarter, and together with the acquisition of HSB Group . Inc., increased the total of those reserves to $25 .0 billion at year-end 2000 ."
24 78. AIG issued a press release on April 26, 2001, announcing that its First Quarter
2001 Income rose 15 .2% to $1 .57 billion. The release, in pertinent part, stated:
American International Group, Inc . (AMG) today reported that its income excluding the cumulative effect of an accounting change and net realized capital gains (losses) for the first quarter of 2001 increased 15 .2 percent to $1 .57 billion, compared to $1 .36 billion in the first quarter of 2000 . Net income increased 13 .8 percent to $1 .53 billion, compared to $1 .35 billion in the first quarter of 2000 .
Revenues in the first quarter of 2001 rose 11 .6 percent to $12.15 billion from $10.89 billion in the year-earlier quarter. At March 31, 2001, AIG's consolidated assets and shareholders' equity approximated $315 billion and $41 .7 billion, respectively.
AIG Chairman M .r. Greenberg commenting on the results said, "AIG had a solid first quarter, benefitting from a continuing strengthening of pricing in the commercial property-casualty market, as well as strong performance by our overseas life insurance business and financial services businesses . Excluding the cumulative effect of an accounting change and realized capital gains and losses, AIG's net income rose 15 .2 percent in the quarter to $1 .57 billion, or $0.67 per share."
"We added $63 million to AIG's general insurance net loss and loss adjustment reserves for the quarter, bringing the total of those reserves to $25 .0 billion at March 31, 2001 .
79. AIG issued a press release on July 26, 2001, announcing that its Second Quarter
2001 Income rose 14 .1 % to $1 .66 billion. The release, in pertinent part, stated :
American International Group, Inc . (AIG) today reported that its income excluding net realized capital gains (losses) increased 15 .8 percent to $1 .66 billion in the second quarter and, also excluding the first quarter cumulative effect of a FASB mandated accounting change, 15 .5 percent to $3 .23 billion for the first six months of 2001 .
Revenues in the second quarter of 2001 rose 10 .1 percent to $12 .58 billion from $11 .43 billion in the year-earlier quarter . For the first six months, revenues totaled $24 .73 billion, ans increase of 10.8 percent over at $22 .32 billion in 2000.
80. AIG issued a press release on October 25, 2001 , announcing that its Third Quarter
2001 Income rose 14.1 % to $1 .92 billion. The release, in pertinent part, stated:
American International Group, Inc . (AIG) today reported that its core income increased 14 .1 percent to $1 .92 billion in the third quarter and 13 .9 percent to $5 .69 billion for the
25 first nine months of 2001 . These results are in line with guidance furnished during AIG's October 9, investor conference call .
Revenues in the third quarter of 2001 increased 12 .9 percent to $15.73 billion form $13 .93 in the year-earlier quarter . For the first nine months, revenues totaled $46.0 billion, an increase of 10 .2 percent over $41 .74 billion in 2000.
81 . AIG issued a press release on February 7, 2002, announcing that its 2001 Net
Income was $1 .87 billion. The release, in pertinent part, stated:
American International Group, Inc. (AIG) today reported that its fourth quarter 2001 net income was $ 1 .87 billion, compared to $1 .80 billion in the fourth quarter of 2000.
Core income increased 10 .3 percent to $1 .98 billion or $0.75 per share, compared to $1 .79 billion or. $0 .68 per share in the fourth quarter of 2000 . These 2001 results include $0.03 per share to Enron surety losses and a provision for Northridge earthquake claims .
Revenues for the year 2001 rose 10 .2 percent to $63 .24 billion from $57.37 billion in 2000. Fourth quarter revenues totaled $16 . 69 billion, an increase of 8.3 percent over $15 .41 billion in the year earlier quarter.
82 . AIG issued a press release on April 25, 2002, announcing that its First Quarter
2002 Income increased 11 .1% to $2.13 billion. The release, in pertinent part, stated:
American International Group, Inc . (AIG) today reported that its first quarter 2002 adjusted income, excluding net realized capital gains (losses) and the cumulative effect of an accounting change in 2001, increased 11 .1 percent to $2.13 billion, compare to $1 .92 billion in the first quarter of 2001 .
AIG Chairman Mr. Greenberg commenting on the results said, "AIG is off t o a very good start in 2002. Excluding realized capital gains and losses, AIG's first quarter net income rose 11 .1 percent to a record $2 .13 billion. On a per share basis, income as adjusted rose 12.5 percent in the first quarter . Once again, the strength and diversity of AIG' s worldwide portfolio of businesses stood out. . . ."
83 . AIG issued a press release on July 25, 2002 , announcing that its Second Quarter
2002 Net Income rose 37% to $1 .8 billion. The release, in pertinent part, stated:
American International Group, Inc . (AIG) today reported that its net income for the second quarter of 2002 increased 37 .0 percent to $1 .80 billion, compared to $1 .31 billion in the second quarter of 2001 .
26 For the first six months of 2002 , net income totaled $3 .78 billion, an increase of 19.3 percent compared to $3 .17 billion in the same period of 2001 .
In the quarter and six months respectively, $378 million and $505 million were added to AIG's General Insurance net loss and loss adjustment reserves, bringing the total of those reserves to$26.4 billion at June 30, 2002. Reserves for the September 11 terrorist attacks continue to be adequate .
Second quarter 2002 adjusted income, excluding net realized capital gains (losses) and the cumulative effect of accounting changes and acquisition, restructuring and related charges in 2001, increased 9 .8 percent to $2.21 billion, and 10.4 percent to $4.34 billion for the first six months of 2002 .
84. AIG issues a press release on October 24, 2002, announcing its Third Quarter
2002 Net Income of $ 1 .84 billion as compared to $326.8 million in 2001 . The release, in pertinent part, stated :
American International Group, Inc . (AIG) today reported that its net income for the third quarter of 2002 was $1 .84 billion, compared to $326 .8 million in the third quarter of 2001 . For the first nine months of 2002, net income totaled $5 .62 billion, an increase of 60 .8 percent compared to $3 .50 billion in the same period of 2001 .
Income as adjusted-excluding net realized capital gains ( losses) in both years and in 2001 the cumulative effect of accounting changes and acquisition ., restructuring and related charges-increased 54.6 percent to $2.23 billion in the third quarter and 22.3 percent to $6.58 billion for the first nine months of 2002.
85 . AIG issues a press release on February 13, 2003, announcing its 2002 Net Income of $5 .52 billion as compared to $5.36 billion in 2001 . The release, in pertinent part, stated:
American International Group, Inc . (AIG) today reported that its net income for the full year 2002 was $5.52 billion, compared to $5.36 billion in 2001 . The fourth quarter of 2002 resulted in a net loss of $103 .8 million, compared to net income of $1 .87 billion in the same period of 2001 .
On February 3, AIG announced that it would incur a net, after tax charge of $1 .8 billion in the fourth quarter of 2002 related to an increase of general insurance net loss and loss adjustment reserves, following the completion of AIG's annual year-end loss reserve study. Fourth quarter 2002 income as adjusted, excluding the reserve charge and realized gains and losses, increased 13 .9 percent to $2.33 billion. For the full year 2002, income adjusted was $8 .91 billion, and increase of 11 .9 percent over the full year 2001, which
27 was also adjusted for th cumulative effect of accounting changes, acquisition, restructuring and related charges and World Trade Center and related losses .
AIG Chairman Mr . Greenberg commenting on the results said: "In 2002 AIG earned $7 .12 billion before realized capital losses, even after taking an after-tax charge of $1 .8 billion to increase general insurance reserves. AIG in 2002 had record revenues of $67.5 billion, record general insurance cash flow of $6. 92 billion and record shareholders' equity of $59 billion at year end."
86. AIG issues a press release on April 24, 2003 , announcing its First Quarter 2003
Net Income of $1 .95 billion as compared to $1 .98 billion in the first quarter of 2002 . The release, in pertinent part, stated:
American International Group, Inc ., (AIG) today reported that its first quarter 2003 net income was $1 .95 billion or $0.74 per share, compared to $1 .98 billion or $0 .75 per share in the first quarter of 2002. First quarter 2003 income as adjusted to exclude net realized capital gains (losses), increased 11 .1 percent to $2 .37 billion compared to $2.13 billion in the first quarter of 2002 . Per share income, as adjusted was $0 .90, an increase of 11 .1 percent over $0.81 in first quarter 2002 .
AIG Chairman Mr . Greenberg commenting on the results said, "AIG had a good first quarter. General Insurance, Life Insurance and Financial Services all had double digit growth in operating income, excluding realized capital losses . Retirement Savings continue to be impacted by a weak global market ."
"Shareholders' equity at March 31, 2003, was a record $62 billion . Assets were a record high of $590 billion and the annualized return on equity for the quarter was a strong 16 .9 percent."
87. AIG issued a press release on July 24, 2003, announcing that its Second Quarter
2003 Net Income rose 26.4% to $2.28 Billion. AIG also announced an additional 25% increas e in its Quarterly Common Stock Dividend. The release, in pertinent part, stated:
American International Group, Inc . (AIG) today reported that its net income for the second quarter of 2003 increased 26 .4 percent to $2.28 billion, compared to $1 .80 billion in the second quarter of 2002 . For the first six months of 2003, net income totaled $4.23 billion, an increase of 11 .9 percent compared to $3 .78 billion in the same period of 2002 .
AIG Chairman Mr . Greenberg commenting on the results said, "AIG had a very good quarter. General Insurance, Life Insurance, and Financial Services all had record results .
28 Retirement Savings & Asset Management had improved performance as equity markets made gains."
"Over the second quarter, assets and shareholders' equity both rose to record levels . At June 30, 2003, assets approximated $620 billion and shareholders' equity exceeded $68 billion."
88. AIG issued a press release on October 23, 2003, announcing that its Third Quarter
2003 Net Income rose 26 .9% to $2.34 Billion. The release, in pertinent part, stated :
American International Group, Inc . (AIG) today reported that its net income for the third quarter of 2003 increased 26 .9 percent to $2.34 billion, compared to $1 .84 billion in the third quarter of 2002 . For the first nine months of 2003, net income totaled $6.57 billion, an increase of 16.8 percent compared to $5 .62 billion in the same period of 2002 . Net income excluding realized capital losses increased 15.4 percent to $2 .58 billion in the third quarter of 2003, and 13 .5 percent to $7.46 billion for the first nine months of 2003.
89. AIG issued a press release on February 11, 2004, announcing that its 2003 Ne t
Income was $9.27 Billion, an increase of 68% over 2002. The release, in pertinent part, stated :
American International Group, Inc . (AIG) today reported that its net income for the full year 2003 increased 68 .0 percent to a record $9 .27 billion, compared to $5 .52 billion in 2002. Net income excluding realized capital gains (losses) and cumulative effect of an accounting change increased 43 .6 percent to a record $10.22 billion in the full year 2003 .
Net income in the fourth quarter of 2003 totaled a record $2 .71 billion compared to a loss of $103 .8 million in the same period of 2002 . Fourth quarter 2003 net income excluding realized capital gains (losses) and cumulative effect of an accounting change was a record $2.75 billion compared to $537 .5 million in the same period of 2002 . Results for fourth quarter and full year . 2002 include the $1 .8 billion net, after tax general insurance reserve charge .
Income before income taxes, minority interest, cumulative effect of an accounting change and pretax realized capital gains (losses) for the twelve months of 2003'increased 45 .0 percent to $15 .34 billion. Income before income taxes, minority interest, cumulative effect of an accounting change and pretax realized capital gains (losses) for the fourth quarter of 2003 was $4 .14 billion, compared to $671 .6 million in the fourth quarter of 2002 .
29 90. AIG issued a press release on April 22, 2004, announcing its First Quarter 2004
Net Income of $2 .66 billion, or $1 .01 per share, an increase of 35 .9% over 2003 . The release, in pertinent part, stated :
American International Group, Inc . (AIG) today reported that its first quarter 2004 net income rose 35 .9 percent to $2.66 billion or $1 .01 per share, compared to $1 .95 billion or $0.74 per share in the first quarter of 2003 . First quarter 2004 net income excluding realized capital gains (losses) and the cumulative effect of an accounting change, increased 19.9 percent to a record $2 .84 billion or $1 .08 per share, compared to $2 .37 billion or $0 .90 per share in the first quarter of 2003 .
Income before income taxes, minority interest and the cumulative effect of an accounting change for the first quarter of 2004 was a record $4 .29 billion, a 46 .8 percent increase over $2.92 billion in the first quarter of 2003 . These results include realized capital gains of $4 .9 million in the first quarter of 2004, compared to realized capital losses of $631 .5 million in the same period last year.
91 . AIG issued a press release on July 22, 2004, announcing its Second Quarter 2004
Net Income of $2 .86 billion, or $1 .09 per share, an increase of 25 .7% over 2003 . The release, in pertinent part, stated :
American International Group, Inc . (AIG) today reported that its second quarter 2004 net income rose 25 .7 percent to a record $2 .86 billion or $1 .09 per share, compared to $2.28 billion or $0.87 per share in the second quarter of 2003 . Second quarter 2004 net income excluding realized capital gains (losses), increased 19.2 percent to a record $3 .00 billion or $1 .14 per share, compared to $2.52 billion or $0.96 per share in the same period of 2003 .
Net income for the first six months of 2004 rose 30 .4 percent to $5 .52 billion or $2 .10 per share, compared to $4 .23 billion or $1 .61 per share in the first six months of 2003 . For the first six months of 2004 net income excluding realized capital gains (losses) and the cumulative effect of an accounting change, increased 19.5 percent to $5.84 billion or $2.22 per share, compared to $4 .89 billion or $1 .86 per share in the same period of 2003 .
Income before income taxes and minority interest for the second quarter of 2004 was a record $4 .39 billion, a 27 .9 percent increase over $3 .43 billion in the second quarter of 2003 . Income before income taxes, minority interest and the cumulative effect of an accounting change for the first six months of 2004 was $8.68 billion, a 36.6 percent increase over $6 .35 billion in the same period of 2003 . These results include realized capital losses of $209.0 million and $204 .1 million in the second quarter and six months of 2004, respectively, compared t o
30 realized capital losses of $356.9 million and $988 .4 million in the second quarter and six months of 2003, respectively .
92 . AIG issued a press release on October 21, 2004, announcing its Third Quarter
2004 Net Income of $2 .51 billion and net income excluding realized capital gains and losses of
$2.54 billion. The release, in pertinent part, stated:
American International Group, Inc ., (AIG) today reported third quarter 2004 net income of $2.51 billion or $0.95 per share, compared to $2 .34 billion or $0 .89 per share in the third quarter of 2003 . Third quarter 2004 net income excluding realized capital gains (losses), was $2 .54 billion or $0.97 per share, compared to $2 .58 billion or $0 .98 per share in the same period of 2003 . Third quarter 2004 after tax net catastrophe losses from hurricanes and typhoons were $512 .2 million or $0.19 per share, compared to after tax new catastrophe losses of $46 .2 million or $0 .02 per share in the third quarter of 2003 . Third quarter 2004 net income excluding realized capital gains (losses) and catastrophe losses increased 16.5 percent to $3 .06 billion or $1 .16 per share, compared to $2 .62 billion or $1 .00 per share in the same period fo 2003 .
AIG Chairman Mr. Greenberg commenting on the results said, "AIG had third quarter net income of $2 .51 billion, up 7.5 percent, even after accounting for the unprecedented succession of storms, which included four hurricanes and three typhoons . Excluding realized capital gains (losses) and catastrophe losses, net income in the third quarter of 2004 increased 16.5 percent over a year ago . For the first nine months of 2004, net income was a record $8 .03 billion, up 22.3 percent. Excluding realized capital gains (losses), cumulative effect of an accounting change and catastrophe losses, net income for the first nine months increased 18 .5 percent."
93 . AIG issued a press release on February 9, 2005 , announcing its 2004 Net Income of $11 .05 billion, an increase of 19.1 % over 2003. The release, in pertinent part, stated :
American International Group, Inc ., (AIG) today reported that its net income for the full year 2004 increased 19 .1 percent to a record $11 .05 billion or $4 .19 per share, compared to $9.27 billion or $3.52 per share in 2003 . Net income exceeding realized capital gains (losses) and cumulative effect of accounting changes was $11 .46 billion or $4.35 per share, compared to $10 .22 billion or $3 .88 per share in 2003 .
Net income for the fourth quarter of 2004 rose 11 .5 percent to $3 .02 billion or $1 .1 per share, compared to $2 .71 billion or $1 .03 per share in the fourth quarter of 2003 . For the fourth quarter of 2004, net income excluding realized capital gains (losses) and the cumulative effect of an accounting change increased 11 .6 percent to $3.07 billion or $1 .17 per share, compared to $2 .75 billion or $1 .05 per share in the same period of 2003 .
31 E. Securities Regulators Subpoena AIG's Records
94. On February 9, 2005 - the same day of AIG's press release and conference cal l announcing its year end 2004 and fourth quarter 2004 financial results - the NYAG and SEC issued subpoenas to AIG. On Friday 14, 2005, AIG issued a press release announcing that it had received subpoenas from the NYAG and SEC following its earnings conference call. According to AIG, the subpoenas related "to investigations of non-traditional insurance products and certain assumed reinsurance transactions and AIG' s accounting for such transactions . AIG will cooperate in responding to the subpoenas ." No further detail was provided .
95 . On Sunday, March 13, 2005, according to press reports, the outside directors convened at their lawyer's offices to discuss the probe and what they should do with Greenberg .
As directors began the discussion, Greenberg called in from his boat in Florida and reportedl y told the group, "You couldn' t even spell the word insurance ." Later, he called again from the corporate jet, and criticized AIG's lead director Frank Zarb, a longtime friend, and the former chairman of the National Association of Securities Dealers . Barry Winograd, th e
PricewaterhouseCoopers partner in charge of the account, reportedly informed the Board that h e might not be able to provide an unqualified opinion on AIG' s annual financial repo rt, scheduled to be filed soon. It was decided that Greenberg would have to retire as CEO immediately, an d that Greenberg would remain as AIG's Chairman until at least the annual shareholder meeting i n
May 2005 .
96. The next day, Monday, March 14, 2005, Greenberg retired as CEO . AIG issued a press release announcing that the AIG Board had implemented its "management succession pl an" and that Martin J . Sullivan would succeed defendant Greenberg as President and Chief Executiv e
Officer. According to the release, Greenberg would serve in the capacity of non-executiv e
32 Chairman. AIG also announced that Steven J. Bensinger had been elected Executive Vice
President, Chief Financial Officer, Treasurer and Comptroller, succeeding defendant Smith a s
Chief Financial Officer "who has taken leave ." In the press release, Sullivan stated, "We have a n
extremely strong business and our financial fundamentals remain intact."
97. On Tuesday evening, March 15, 2005, the AIG directors met for dinner at the St.
Regis Hotel in New York City . According to press reports, Greenberg did not speak with th e
other directors and didn't respond to their toasts to him, instead walking out of the room . The
next day, Greenberg left for a I0-day trip to Asia .
98. On Good Friday, March 25, 2005, the NYAG and SEC sent subpoenas to AI G
executives, including Greenberg, requesting documents . According to press reports, that same
day, an attorney for Greenberg and/or SICO supervised the removal of boxes of SICO document s
out of a joint AIG/SICO office in Bermuda and into a van. As reported, AIG attorneys learned
that an AIG employee had destroyed some computer records and tape recordings of busines s
meetings.
99. Over the Easter weekend, the NYAG office heard about the described "document
caper." According to press reports, Attorney General Spitzer informed AIG's outside counsel on
Saturday night that AIG would be indicted on Monday if action was not taken. On Easter
Sunday, AIG's outside counsel reportedly dispatched security guards from AIG corporate
headquarters in New York to Bermuda, and the building was locked down .
100 . Greenberg's attorney faxed Greenberg' s resignation letter the next day, Monday,
March 28, 2005 . That same day, AIG issued a press release entitled, "M . R. Greenberg To Retire
From AIG." The press release stated that AIG's Board had received a letter from David Boies ,
33 counsel for defendant Greenberg, indicating Greenberg's intent to retire from his position a s
Chairman and that he would not stand for re-election to the Board at the AIG annual meeting .
F. The Accounting Fraud Is Finally Revealed To The Marke t
101 . On Wednesday, March 30, 2005, AIG issued a press release entitled, "AIG Delays
Form 10-K Filing To Complete Review," and in an extraordinary confession, admitted to a broa d range of improper accounting expected to slash AIG's net worth by up to $1 .65 billion. AIG also revealed that the filing of its 2004 Form 10-K would have to be delayed a second time, beyond the March 31, 2005 extended due date, in order to complete a fu rther review of AIG 's books an d records related to issues arising from pending investigations by the NYAG and SEC. AIG estimated that it would not be able to file its Form 10-K until April 30, 2005 . The press release stated, in pertinent part :
"The initial investigations related principally to an assumed reinsurance transaction involving two tranches of $250 million each which took place in December 2000 and March 2001 between an AID subsidiary and a subsidiary of General Re Corporation ("Gen Re"). In connection with each tranche, each of consolidated net premiums written and consolidated net loss reserves increased by $250 million in each of the fourth quarter of 2000 and the first quarter of 2001 . The first tranche of the transaction was commuted in November 2004, which reduced premiums and reserves for losses and loss expenses by approximately $250 million in the fourth quarter 2004 previously reported unaudited financial information. The second tranche remains on AIG's books as previously recorded .
Based on its review to date, AID has concluded that the Gen Re transaction documentation was improper and, in light of the lack of evidence of risk transfer, these transactions should not have been recorded as insurance. Therefore, AIG's financial statements will be adjusted to recharacterize such transactions as deposits rather than as consolidated net premiums. The recharacterization will have virtually no impact on AIG's financial condition as of December 31, 2004, but will reduce the reserve for losses and loss expenses by $250 million and increase other liabilities by $245 million .
In preparation for the issuance of the Form 10-K, management reviewed the accounting treatment for certain additional items with its independent accountants. Some of these matters were subsequently disclosed by AIG to various federal and state law enforcement and regulatory authorities. The
34 continuing review has led AIG management to conclude that the accounting for certain of these matters may need to be recharacterized or otherwise adjusted. Certain but not all ofthe original characterizations resulted from transactions which appear to have been structured for the sole or primary purpose of accomplishing a desired accounting result . The matters reviewed to date include:
Union Excess : AIG's general insurance company subsidiaries operate worldwide, primarily by underwriting and accepting risks for their direci account and securing reinsurance on that portion of the risk in excess of the limit which they wish to retain. . . . AIG subsidiaries have also ceded business to Union Excess Reinsurance Company, Ltd. ("Union Excess") a Barbados-domiciled reinsurer. AIG has no direct equity interest in Union Excess . However, based upon AIG's review to date, including consideration of previously undisclosed facts, AIG now believes that a significant portion of the ownership interests of Union Excess shareholders are protected under financial arrangements with Starr International Company, Inc. ("SICO"), a private holding company which owns approximately 12 percent of AIG's outstanding common stock and whose board of directors consists of current and former members of AIG management . From its formation in 1991, Union Excess has reinsured risks emanating primarily or solely from AIG subsidiaries, both directly and indirectly . The transactions with Union Excess permitted AIG to reflect income arising from the discounting of reserves permitted under Barbados law . If Union Excess is required to be treated as a consolidated entity by AIG, it would result in a maximum reduction of approximately $1.1 billion in AIG's consolidated shareholders' equity as of December 31, 2004, which represents the after-tax cumulative effect of the transactions with Union Excess over a 14 year period from 1991 to 2004. . . .
Richmond: AIG subsidiaries have also ceded reinsurance to subsidiaries of Richmond Insurance Company, Ltd . ("Richmond"), a Bermuda-based reinsurance holding company in which AIG holds a 19.9 percent ownership interest . Although AIG owns only a minority ownership interest in Richmond, the review of the operations of the Richmond subsidiaries has shown significant previously undisclosed evidence of AIG control. Therefore, AIG has determined that Richmond should be treated as a consolidated entity in AIG's financial statements. Consolidation of Richmond will result in a small increase in consolidated liabilities and a minimal impact on AIG's consolidated shareholders' equity as ofDecember 31, 2004.
Capco: The transactions with Capco Reinsurance Company, Ltd . ("Capco"), a Barbados domiciled reinsurer, involved an improper structure created to recharacterize underwriting losses as capital losses. That structure, which consisted primarily of arrangements between subsidiaries ofAIG and Capco, will require that Capco be treated as a consolidated entity in AIG's financial statements. The result of such consolidation is to recharacterize approximately
35 $200 million ofpreviously reported capital losses as an equal amount of underwriting losses relating to auto warranty business from 2000 through 2003 .
Covered Calls : From 2001 to 2003, AIG entered into a series of transactions with third parties whereby AIG subsidiaries would sell in-the-money call options on bonds in their portfolios that had unrealized appreciation associated with them . Through a series of forward transactions and swaps that allowed AIG to retain the bonds, AIG recognized net investment income in the amount of the unrealized gains. The cumulative increase in net investment income from these transactions was approximately $300 million with a corresponding decrease in realized capital gains over the three year period. There was no effect on AIG's consolidated shareholders' equity.
Receivables: AIG continues to assess the recoverability of certain balances, consisting mainly of receivables in the domestic general insurance operations, to determine whether additional charges would be appropriate . AIG currently believes that the after-tax impact of these charges would not exceed $300 million. . . .
AIG is reviewing its prior estimates relating to deferred acquisition costs and certain other accruals and allowances with respect to AIG's general insurance and financial services subsidiaries to determine if adjustments are necessary . These revisions could result in an aggregate after tax charge of approximately $370 million.
AIG may reclassify certain items previously identified and reported as net investment income. The aggregate effect of the misclassifications AIG has identified to date was to increase reported net investment income overt he period from 2000 through 2004 by approximately four percent . The reclassification will have no effect on AIG's consolidated shareholders' equity as of Decembe r 31, 2004.
AIG has determined to change its accounting treatment to expense the deferred compensation granted to certain AIG employees by SICO. The magnitude of these amounts in prior years has been disclosed in the notes to AIG's audited financial statements , but not included as expenses in the calculation of AIG's consolidated net income . Although the expense will be a charge to reported earnings, the change will have no negative impact on shareholders' equity because an equal amount will be treated as deemed contributions from SICO to additional paid-in capital. . . ."
102. Until March 30, 2005, the true facts disclosed in AIG' s press release and further detailed in this Complaint were known by each of the defendants, but concealed from th e investing public during the Class Period . As a result, AIG's prior reported financial condition ,
36 including but not limited to its premiums, liabilities, reserves, revenue and income, wer e misstated in all of the press releases and public reports described above, as well as in all of th e public SEC filings during the Class Period filed in coordination with such press releases .
103 . In response to news about AIG's misstatements, AIG's stock value plunged.
Between February 14, 2005, when AIG first disclosed that it had received subpoenas from th e
SEC and NYAG, and April 1, 2005 , after AIG startling admissions, AIG's share value fell approximately 30% or a total market value of over $60 billion.
104. On Sunday , April 10, 2005, Attorney General Eliot Spitzer appeared on ABC-
TV's "This Week With George Stephanopoulos" and said that Greenberg had misled the publi c about AIG's dealings, "That company was a black box run with an iron fist by a CEO who di d not tell the truth. That is the problem. . . . We have powerful evidence, and will proceed with it. .
. . The evidence is overwhelming that these were transactions created for the purpose o f deceiving the market . We call that fraud. It is deceptive . It is wrong. It is illegal, "
105 . On Monday, April 11, 2005, securities regulators interviewed Warren Buffett about the deal between AIG and General Re, a unit of Buffett's holding company, Berkshir e
Hathaway. According to the Associated Press, Joseph Fritsch, director of insurance accountin g policy for the New York State Insurance Department, said that Buffet confirmed "that Hank
[Greenberg] knew about the deal ."
106. On Tuesday, April 12, 2005, Greenberg appeared to be interviewed b y government investigators but refused to answer questions and invoked the 5' Amendment to avoid self-incrimination. That same day, Greenberg filed a Form 4 with the SEC, revealing that on March 11, 2005, i .e., just three days after he was forced to resign as CEO, Greenberg gave hi s wife 41 .4 million of his shares of AIG, representing 95 % of his personal stake. The gift was a
37 blatant attempt to shield his assets from lawsuits . The gift was valued at $2 .68 billion on the day of the transaction.
107. On May 1, 2005, AIG announced that it needed to restate its financial statements for the years ended December 31, 2003, 2002, 2001 and 2000, the quarters ended March 31, Jun e
30, and September 30, 2004 and 2003, and the quarter ended December 31, 2003, and that its prior financial statements for those periods should no longer be relied upon . AIG also announced that its consolidated shareholders' equity would be reduced by approximately $2 .7 billion - or $1 billion more than previously announced - due to accounting errors and internal contro l deficiencies .
108. On May 11, 2005, the New York Times reported that three executives fro m
General Re, John Houldworth, Elizabeth Monrad, and Richard Napier, had been notified by the
SEC that civil fraud complaints would be filed against them relating to the sham transaction with
AIG.
G. Violations of Accounting Rules
109. GAAP are recognized and used by the accounting profession in order to de fine acceptable accounting practices at a particular time . The SEC has also endorsed GAAP i n
Regulation S-X, 17 C.F.R. § 210.4-01(a)(1), which provides that financial statements filed both annually and quarterly with the SEC must comply with GAAP. If the filings do not comply with
GAAP, they are presumed to be misleading and inaccurate, despite footnote or other disclosure .
Therefore, defendants' misleading statements and omissions, described above, violated GAAP and SEC Regulations.
110. Statements of Financial Accounting Standards ("FAS") are the highest authority in GAAP and are created by the Financial Accounting Standards Board . GAAP provides other
38 authoritative pronouncements, including Accounting Principles Board Opinions ("APB") an d
Statements of Position ("SOP") of the American Institute of Certified Public Accountant s
("AICPA" )
111 . The responsibility for preparing financial statements that conform to GAAP rest s with corporate management, as set forth in Section 110 .03 of the AICPA Professional Standards :
"The financial statements are management's responsibility . Management is responsible for adopting accounting policies and for establishing and maintaining internal control, that will, among other things, record, process, summarize, and report transactions (as well as events and conditions) consistent with management's assertions embodied in the financial statements . The entity's transactions and the related assets, liabilities, and equity are within the direct knowledge and control of management . . . . Thus, the fair presentation of financial statements in conformity with [GAAP] is an implicit and integral part of management's responsibility."
112. Pursuant to these requirements, AIG represented in its reports filed with the SE C that its financial results were presented approp riately in accordance with GAAP. Nevertheless, defendants knowingly disregarded the following fundamental GAAP when preparing its financial statements :
(a) Interim financial reporting should be based upon the same accounting principle s
and practices used to prepare annual financial statements (APB No . 28, ¶ 10);
(b) Financial reporting should provide information that is useful to present an d
potential investors, creditors and other users in making rational, investment, credit and
similar decisions (FASB Statement of Concepts No. 1, ¶ 34);
(c) Financial reporting should provide information about the economic resources o f
an enterprise, the claims to those resources, and matters that change such resource s
(FASB Statement of Concepts No. 1, ¶ 40) ;
39 (d) Financial reporting should provide information about how management of a n
enterprise has discharged it stewardship responsibility to owners (stockholders) for the
use of enterprise resources entrusted to it (FASB Statement of Concepts No. 1, ¶ 50);
(e) Financial reporting should provide information about an enterprise's financia l
performance during a time period. (FASB Statement of Concepts No. 1, ¶ 42). This
information is often used by investors and creditors in order to evaluate whether they are
interested in future investment and credit offerings ;
(f) Financial reporting should be reliable and relevant in that it represents what i t
purports to represent (FASB Statement of Concepts No. 2 ¶¶ 58-59) ;
(g) Financial reporting should be complete, in other words, all information that ma y
be necessary to assure that it validly represents underlying events and conditions must be
provided (FASB Statement of Concepts No. 2, ¶ 79) ; and
(h) Financial reports should be conservative . Preparers must adequately consider
uncertainties and risks inherent in business situations and reflect those issues in th e
reports (FASB Statement of Concepts No. 2, 1195, 97).
113 . Throughout the Class Period, all the material misrepresentations and omissions
particularized in this Complaint were disseminated and/or approved by defendants and those
actions were a direct cause of the damages sustained by the plaintiffs and the Class .
114. The transactions described above were nor properly accounted for, and AIG' s
financial statements during the Class Period were not prepared in accordance with GAAP . Due to defendants' improper conduct, AIG has revealed that it will have to restate its materiall y misleading financial statements , filed with the SEC, which transactions impact AIG's Form 10-
Ks and Form 10-Qs during the Class Period. Based on regulations by the SEC and national stock
40 exchanges, the undisclosed information during the Class Period is the type investors an d securities analysts expect to be disclosed.
VI. SCIENTER ALLEGATION S
115. As members of AIG's top management, including officers and/or directors, the
Individual Defendants directly participated in the management of AIG and were directly involve d in AIG's daily operations . Defendants had access to confidential information concerning AI G and its business and operations , and personally participated in AIG's reported financial statements and financial condition . Defendants knowingly permitted the false and misleadin g statements to be issued about AIG, and deliberately disregarded any attempt to revise them or correct the public market 's perception about AIG.
116. Because of their positions with AIG and/or General Re, defendants had access to the adverse undisclosed information about AIG's business and financial condition, knowingly or deliberately disregarding the fact that adverse information rendered the representations mad e during the Class Period materially false and misleading. Defendants were personally familiar with the nature of the transactions and corporate structures described herein, and the fals e accounting for the transactions and structures, and personally negotiated some of the deals an d monitored AIG's accounting for them through reports from AIG's management, the Financ e
Department, and professional accountants and auditors retained by AIG. As a result of this information, defendants were aware that AIG was not properly accounting for the transaction s and structures and, as a result, its financials were not fairly reported.
41 VII. CAUSES OF ACTION
FIRST CAUSE OF ACTION
VIOLATION OF SECTION 10(b) OF THE EXCHANGE AC T
AND RULE I0b-5 PROMULGATED THEREUNDE R
(AGAINST ALL DEFENDANTS)
117 . Plaintiffs hereby incorporate by reference all of the allegations set forth above as
though fully set forth hereafter.
118. This claim is brought pursuant to Section 10(b) of the Exchange Act, 15 U.S.C. §
78j.
119. During the Class Period, each of the defendants carried out a plan, scheme and
course of conduct which was intended to and, throughout the Class Period, did deceive the
investing public, including plaintiffs and other Class members, as alleged herein and cause d
plaintiffs and other members of the Class to purchase AIG shares or interests at distorted price s
that they would not have paid had they known of the improper conduct alleged herein . In
furtherance of this improper scheme, plan and course of conduct, defendants, and each of them,
took the actions set forth herein .
120 . Defendants : (i) employed devices, schemes, and artifices to defraud ; (ii) made untrue statements of material fact and/or omitted to state material facts necessary to make th e
statements not misleading; and (iii) engaged in acts, practices, and a course of business whic h
operated as a fraud and deceit upon the purchasers of AIG securities, including plaintiffs an d other members of the Class, in an effort to artificially inflate AIG's market condition and stoc k value and enrich themselves through their personal holdings of AIG stock, in violation o f
42 Section 10(b) of the Exchange Act and Rule lOb-5. All defendants are sued as primary participants in the wrongful and illegal conduct and scheme charged herein.
121 . Defendants, individually and in concert, directly and indirectly, by the use, mean s or instrumentalities of interstate commerce and/or of the mails, engaged and participated in a continuous course of conduct to conceal adverse material information about AIG' operations, a s specified herein.
122. Defendants employed devices, schemes and artifices to defraud and a course o f conduct and scheme as alleged herein to improperly manipulate and profit and thereby engage d in transactions, practices and a course of business which operated as a fraud and deceit upon plaintiffs and members of the Class .
123 . Defendants had actual knowledge of the misrepresentations and omissions o f material facts set forth herein, or acted with reckless disregard for the truth in that they failed t o ascertain and to disclose such facts, even though such facts were available to them. Defendants ' material misrepresentations and/or omissions were done knowingly or recklessly and for the purpose and effect of concealing the truth.
124. As a result of the dissemination of the materially false and misleading informatio n and failure to disclose material facts, as set forth above, the market prices of AIG securities were distorted during the Class Period such that they did not reflect the continuing course of conduct alleged herein. In ignorance of these facts that market prices of the shares were distorted, an d relying directly or indirectly on the false and misleading statements made by the defendants, or upon the integrity of the market in which the securities trade, and/or on the absence of materia l adverse information that was known to or recklessly disregarded by defendants but not disclosed in public statements by defendants during the Class Period, plaintiffs and the other members of
43 the Class acquired the shares or interests in AIG during the Class Period at distorted prices and
were damaged thereby when the value of their shares fell after the truth became known ,
representing the causal connection between defendants' fraud and plaintiffs' damages .
125. At the time of said misrepresentations and omissions , plaintiffs and other
members of the Class were ignorant of their falsity, and believed them to be true . Had plaintiffs
and other members of the Class and the marketplace known of the truth concerning the AIG
operations, which were not disclosed by defendants, plaintiffs and other members of the Clas s
would not have purchased or otherwise acquired their shares or, if they had acquired such share s
or other interests during the Class Period, they would not have done so at the distorted prices
which they paid .
126. By virtue of the foregoing, defendants violated Section 10(b) of the Exchange Act,
and Rule 1 Ob-5 promulgated thereunder .
SECOND CAUSE OF ACTIO N
VIOLATION OF SECTION 20(a) OF THE EXCHANGE AC T
(AGAINST DEFENDANTS C.V. STARR & CO., INC., STARR INTERNATIONAL INC .,
MAURICE GREENBERG, HOWARD SMITH, CHRISTIAN MILTON, and L .
MICHAEL MURPHY)
127 . Plaintiffs hereby incorporate by reference all of the allegations set forth above a s
though fully set forth hereafter.
128. This claim is brought pursuant to Section 20(a) of the Exchange Act, 15 U .S .C . §
78t.
129. It is appropriate to treat the defendants named herein as a group for pleading purposes and to presume that the materially false, misleading, and incomplete informatio n
44 conveyed in the AIG public filings, press releases, and other publications are the collectiv e actions of such defendants .
130. The defendants named herein acted as controlling persons of AIG within the meaning of Section 20(a) of the Exchange Act for the reasons alleged herein . By virtue of thei r operational and management control of AIG's respective businesses and systematic involvemen t in the fraudulent scheme alleged herein, defendants named herein each had the power t o influence and control and did influence and control, directly or indirectly, the decision-making and actions of AIG, including the content and dissemination of the various statements whic h plaintiffs contend are false and misleading . Each of the defendants named herein had the ability to prevent the issuance of the statements alleged to be false and misleading or cause such statements to be corrected.
131 . Each of the defendants named herein had direct and supervisory involvement in the operations of AIG and, therefore, is presumed to have had the power to control or influenc e the particular transactions giving rise to the securities violations as alleged herein, and exercised the same.
132. Each of the defendants named herein, by virtue of their stock ownership , high-level positions, and participation in and/or awareness of AIG's operations, had the power to influence and control and did influence and control, directly or indirectly, the decision-making of
AIG, including the content and dissemination of the various statements that plaintiffs contends are false and misleading. Defendants were provided with or had unlimited access to copies o f
AIG's reports, press releases, public filings and other statements alleged by plaintiffs to b e misleading prior to and/or shortly after these statements were issued and had the ability to
45 prevent the issuance of the statements or cause the statements to be corrected . AIG controlled
these defendants and all of its employees.
133. As set forth above, each of the defendants violated Section 10(b) and Rule 10b-5
by their acts and omissions as alleged in this Complaint. By virtue of their positions as
controlling persons, each of the defendants named herein is also liable pursuant to Section 20(a )
of the Exchange Act. As a direct and proximate result of defendants ' wrongful conduct,
plaintiffs and other members of the Class suffered damages in connection with their purchases of
AIG securities during the Class Period at inflated prices and the losses suffered when the value o f
their shares fell after the truth became known, representing the causal connection betwee n
defendants' fraud and plaintiff's damages .
PRAYER FOR RELIEF
WHEREFORE, plaintiff, on behalf of itself and the Class, pray for judgment as follows :
Declaring this action to be a proper class action pursuant to Rules 23(a) and
23(b)(3) of the Federal Rules of Civil Procedure on behalf of the Class defined herein ;
2 . Awarding plaintiff and all members of the Class damages against all defendants, jointly and severally, in an amount to be proven at trial;
3 . Awarding plaintiff and members of the Class appropriate equitable relief ;
4. Awarding plaintiff and members of the Class pre judgment interest, as well as reasonable attorneys' fees and other costs ;
46 5. Awarding such other relief as this Court may deem just and proper.
Dated: May 122005 COTCHE, PITRE, SIMON & McCARTHY
By: STEVEN N. WILLIAMS ( SW-6198) JOSEPH W . COTCHET T BRUCE L. SIMON NANCY L . FINEMAN MARK C. MOLUMPHY 840 Malcolm Road, Suite 200 Burlingame, California 94010 Phone: (650) 697-6000 Fax: (650) 697-0577
DENNIS J. HERRERA City Attorney DAN MAGUIRE OWEN J. CLEMENTS Deputy City Attorney s OFFICE OF THE CITY ATTORNEY 1390 Market Street, 5th Floor San Francisco, CA 94102-5408 Phone: (415) 554-3800 Fax: (415) 554-383 7
GEOFFREY SPELLBER G MEYERS, NAVE, RIBACK, SILVER & WILSON 180 Montgomery Street, Suite 2200 San Francisco, California 94104 Phone : (415) 421-371 1 Fax : (415) 421-376 7
STANLEY GROSSMAN (SG-4544) POMERANTZ HAUDEK BLOCK GROSSMAN & GROSS LLP 100 Park Avenue New York, NY 10017 Phone: (212) 661-1100 Fax: (212) 661-8665
Attorneys for PlaintUIand the Class
47 JURY TRIAL DEMAND
Pursuant to Federal Rule of Civil Procedure 38, plaintiff individually and on behalf of all others similarly situated demands a jury trial of all issues subject to adjudication by a trier of fact.
Dated: May Il, 2005 COTC T, PIT q, SIMON & McCARTHY
By: STEVEN N. WILLIAMS ( SW-6198) JOSEPH W . COTCHETT BRUCE L. SIMON NANCY L . FINEMAN MARK C. MOLUMPHY 840 Malcolm Road , Suite 200 Burlingame, California 94010 Phone: (650) 697-6000 Fax: (650) 697-0577
DENNIS J. HERRERA City Attorney DAN MAGUIRE OWEN J. CLEMENTS Deputy City Attorneys OFFICE OF THE CITY ATTORNEY 1390 Market Street, 5"' Floo r San Francisco, CA 94102-5408 Phone: (415) 554-3800 Fax: (415) 554-383 7
GEOFFREY SPELLBER G MEYERS, NAVE, RIBACK, SILVER & WILSON 180 Montgomery Street, Suite 2200 San Francisco , California 94104 Phone: (415) 421-371 1 Fax: (415) 421-3767
STANLEY GROSSMAN (SG-4544) POMERANTZ HAUDEK BLOCK GROSSMAN & GROSS LLP 100 Park Avenue New York, NY 10017 Phone: (212) 661-1100 Fax: (212) 661-8665
Attorneysfor Plaintiffand the Class
48 CERTIFICATION OF PLAINTIFF SAN FRANCISCO EMPLOYEES '
RETIREMENT SYSTE M
Plaintiff San Francisco Employees' Retirement System ("Plaintiff' or "SFERS") declare s
as to the claims asserted under the federal securities laws as follows :
SFERS is a named plaintiff in this action, which is being filed on its behalf and o n
behalf of all others similarly situated. SFERS makes this sworn certification pursuant to 1 5
U.S.C. §78 u-4(a)(2) .
2 . SFERS has reviewed the Complaint, which is being filed on its behalf and o n
behalf of all others similarly situated, and SFERS authorized it to be filed .
3 . SFERS did not purchase the securities that are the subject of this action, namely
securities of AIG, at the direction of its counsel nor to participate in any private action arising under federal securities laws.
4. SFERS is willing to serve as a plaintiff class representative, including providin g testimony at deposition and trial, if necessary.
5 . During the Class Period specified in the Complaint, SFERS made transactions i n the AIG securities that are the subject of this action, as set forth in the schedule attached hereto .
6. During the three year period prior to the date of this certification, SFERS ha s neither sought to serve nor served as a representative party on behalf of a class in any actio n under the federal securities laws, with the exception of serving as a named class representativ e
(although not as the lead plaintiff) in In re Enron Securities Litigation, S .D.Tex. No . H-O1-3624. 7. SFERS agrees not to accept any payment for serving as a representative party o n behalf of the class beyond its pro rata share of any recovery, except such reasonable costs an d expenses directly relating to the representation of the class, as ordered or approved by the Court .
I declare under penalty of perjury under the laws of the United States of America that th e foregoing is true and correct . Executed this / r--day of May 2005 at $iJ fFZ .vel) c.o
California.
SAN FRANCISCO EMPLOYEES' RETIREMENT SYSTE M
Title: Asset Id Asset I d Trade / Settle Type Oescri tion Cash Share/Par Cost Gain/Loss Equities
Common stoc k
026874107 CUS# AMERN INTL GROUP INC CO M
OPENING BALANCE 0 .00 0 .0 0
09-29-03 1 10-03-0 3 PURCHASED 43 .500.00 SHARES 09-29-03 ATA PRICE OF 357 .9943 PLUS BROKER -2 .524 .057 .05 43,500 .00 2,524,05705 9,00 COMMISSION OF $1,305 .0 0
09-30-03 1 10-08-03 PURCHASED 42,400 .00 SHARES 09-30-03 AT A PRICE OF $57.7735 PLUS BROKER -2,450,868 .40 42.40000 2,450 888,40 0 .0 0 COMMISSION OF $1,272 0 0 .
12-0 3-03 1 12-19-03 50 .065 A SHARE ON 85,900 SHARES EX DATE 12-0 3 -03, RECORD DATE 12-0 5 -0 3 5,58350 0.00 0,00 0 .00
03-03-04 1 03-19-04 $0 .065 A SHARE ON 85,900 SHARES EX DATE 03-03-04, RECORD DATE 03-05-04 5,583 .50 0 .00 0.00 0 .00
06-02-04 1 06.18-04 $0065 A SHARE ON 85 .900 SHARES EX DATE 06-02-04, RECORD DATE 06-04-04 5,583 .50 0 .00 0.00 0 .0 0
09 .01-04 1 09-17-04 $0 .075 A SHARE ON 85,900 SHARES EX DATE 09-01-04, RECORD DATE 09-03-04 6,442.50 0.00 0.00 00 0
10-15-04 1 10-20-04 PURCHASED 20,170 .00 SHARES 10-15-04 AT A PRICE OF $56 .99 PLUS BROKER -1,150,496.80 20,170.00 1,150,496.80 0 .0 0 COMMISSION OF $1 ,008.50 .
10-22-04 1 10-27-04 PURCHASED 28,300 .00 SHARES 10-22-04 ATA PRICE OF 355 .332 PLUS BROKER -1,567,310 .60 28,300 .00 1,567,310.60 0 .0 0 COMMISSION OF $1,415 .00 , 12-01-04 1 12-17-04 $0075 A SHARE ON 134,370 SHARES EX DATE 12-01 .04 . RECORD DATE 12-03-04 10,077.75 0.00 0.00 00 0
03 -0 1-05 1 03-04-05 PURCHASED 18,400 .00 SHARES 03-01-05 AT A PRICE OF $66 .7786 PLUS BROKER -1,229,554.24 18,400.00 1,229,554.24 0 .00 COMMISSION OF $828.00 '
03 -0 2-0 5 1 03-18 -05 $0 .125 A SHARE ON 152,770 SHARES EX DATE 03 -02 -05, RECORD DATE 03-04-05 19,096,25 0.00 0.00 0 .0 0
03-23-05 1 D3-29 -05 PURCHASED 40,400,00 SHARES 03-23-05 AT A PRICE CF $56 .81 PLUS BROKER -2,296,942.00 40,400.00 2,296,942 .00 0 00 COMMISSION OF $1,818,00 ' CLOSING BALANCE 193,170.00 11,219,229.09 Asset Id Asset I d Trade 1 Settle Type Desc ri ption Cash Share/Par Cost Gain/Loss Equities
Common stock
026874107 CUS# AMERN INTL GROUP INC CO M
OPENING BALANCE 4D0 000
10-26-04 1 10-29-04 PURCHASED 14,639.00 SHARES 10-26-04 AT A PRICE OF $60 .3144 PLUS BROKER -883,198.68 14.63900 863,198,68 D,00 COMMISSION OF $256 .1 8 10-27-04 J 10-29-04 SOLD 39 .00 SHARES 10-27-04 AT A PRICE OF $60 .40 LESS BROKER COMMISSION 2,354 .86 -39 .00 -2,352 .94 1 92 OF $0.68 AND OTHER CHARGES OF $0 .06 ,.
11-24-04 1 12-02-04 PURCHASED 75 .00 SHARES 11-24-04 AT A PRICE OF $64 .1794 PLUS BROKER -4,814 .96 ' 75 .00 4,814.96 0 .00 COMMISSION OF $1 .50 '
12-01-04 t 12-17-04 30 .075 A SHARE ON 14 .675 SHARES EX DATE 12-01-04, RECORD DATE 12-03-04 1,100.63 0 .00 0,00 0 .00
12-08-04 1 12-13-04 PURCHASED 4 .00 SHARES 12-08-04 ATA PRICE OF $64 .75 PLUS BROKER -259 .02 4 .00 259 .02 0 .00 COMMISSION OF $0 .02
12-08-04 / 12-13-04 PURCHASED 31 .00 SHARES 12-08-04 AT A PRICE OF $64.75 PLUS BROKER - -2,007,79 31 .00 2,007,79 D .00 COMMISSION OF $054
02-28-05 1 03-03 -0 5 PURCHASED 19 .00 SHARES 02-28-05 AT A PRICE OF $66 .80 PLUS BROKER -1,269 .30 19 .00 1,269 .30 0 .0 0 COMMISSION OF $0 .1 0
03 -02-05 1 03-18 -05 $0,125 A SHARE ON 14,729 SHARES EX DATE 03-02-05, RECORD DATE 03-04-05 1,841 .13 0,00 0 .00 0 .0 0
03-31 -05 1 04-05-05 PURCHASED 22 .00 SHARES 03-31 -05 AT A PRICE OF $55 .41 PLUS BROKER -1,219.13 22 .00 1,219.13 0 .00 COMMISSION OF $0 .1 1 CLOSING BALANCE 14,751 .00 - 890,415.94 Asset Id Asset I d
Trade / Settle Type Description Cash Share/Par Cost GainlLoss Equities
Common stoc k
026874107 CUS# AMERN INTL GROUP INC COM
OPENING BALANCE 183,752 .00 2,505,653.44
11-30-99 1 12-16-99 $0 .05 A SHARE ON 183,752 SHARES EX DATE 11 -3 0-99, RECORD DATE 12-02-99 9,187 .60 OA0 0.00 0O D 12 -0 8-99 1 12-13-99 SOLD 3,500 .00 SHARES 12 -08-99 AT A PRICE OF 5106 .6134 LESS BROKER 373,064 .46 -3,500 .00 -47,726.21 325,338 2 5 COMMISSION OF $70 .00 AND OTHER CHARGES OF $12.44
01-12-00 / 01-18-DO SOLD 1,900 .00 SHARES 01-12-00 AT A PRICE OF $108 .1349 LESS BROKER 205,401 .96 -1,900,00 -25 .908.51 179,493 .4 5 COMMISSION OF $47 .50 AND OTHER CHARGES OF $5 .8 5
03 -0 1 -00 1 03-17 -0 .45 A SHARE ON 178,352 SHARES EX DATE 03 0 $0 -0 1-00, RECORD DATE 03 -0 3-00 8,917.60 0 .00 0 .00 0 .0 0
D3-21-0D I 03-24-00 SOLD 3,200.00 SHARES 03-21 -0 0ATA PRICE OF $100 .2559 LESS BROKE R 320,744.18 -3,200.00 -43,635.39 277,108 .79 COMMISSION OF $64 .00 AND OTHER CHARGES OF $10.70
05-3 1-00 1 06-16-0 0 $0.05 A SHARE ON 175.152 SHARES EX DATE 05-31 -00, RECORD DATE 06-02-00 8,757 .60 0.00 0 .00 0 .00 06-28-00 / 07-03-00 SOLD 5,800 .00 SHARES 06-28-00 AT A PRICE OF $120 .67 LESS BROKER 699,166 .68 -5,800 00 -79,089 .15 620,077 .53 COMMISSION OF $116.00 AND OTHER CHARGES OF $23 .32 I
07-28-00 1 08-02-00 SOLD 3,000 00 SHARES 07-28-00 AT A PRICE OF $127 .9935 LESS BROKER 383,907 .70 -3,000 .00 -40,908.18 342,999.52 COMMISSION OF $60.00 AND OTHER CHARGES OF $12 .80 '
07-31-00 RECEIVED 83,176 .00 SHARES AS A STOCK SPLIT OF 1 ADDITIONAL SHARE(S) 0 .00 83,176 .00 0.00 000 FOR EACH 2 SHARE(S) HELD PAYABLE TO HOLDERS OF RECORD 06-00-00, E X DATE 07-31 -00 08-30 -00 1 09-15-00 $0 .037 A SHARE ON 249.528 SHARES EX DATE 08-30 -00, RECORD DATE 09-01-00 9 .23254 0 .00 0 .00 0.00
11-29-00 1 $0 .037A 12-15-00 SHARE ON 249,528 SHARES EX DATE 11-29-00, RECORD DATE 12-01-00 9 .23154 0 .00 0 .00 0.00
02-13 1 1 02-16 1 -0 -0 SOLD 1,500 .00 SHARES 02-13-0 1 ATA PRICE OF $88 .7967 LESS BROKER 133,160 .61 -1,500 .00 -13,636 .06 119,524 .5 5 COMMISSION OF $30 .00 AND OTHER CHARGES OF $4 .44
02-28 -0 1 1 03-15-CU $0 .037 A SHARE ON 248,028 SHARES EX DATE 02-28 -0 1, RECORD DATE 03-0 2-0 1 9,177.04 0 .00 1100 0 .00 Asset Id Asset I d Trade I Settle Type Description Cash Share/Par Cost Gain/Los s Equities
Common stock
026874107 CUS# A M E R N I NTL GROUP INC COM
05-0 9-01 1 05-14-01 SOLD 1,500 .00 SHARES 05-09-01 ATA PRICE OF $83 .7738 LESS BROKER 125,626 .51 -1 .500 .00 -13,636 .06 111,990 .4 5 COMMISSION OF $30 .00 AND OTHER CHARGES OF $4 .1 9
D5-30-01 1 06-15 -0 1 $0 .037 A SHARE ON 246,528 SHARES EX DATE 05-30 -0 1, RECORD DATE 06-0 1 -0 1 _ 9,121,54 0 .00 0 .00 0.00
08-07-01 1 09-14-01 $0 .042 A SHARE ON 246,528 SHARES EX DATE 08-07 -0 1, RECORD DATE 08-0 9-0 1 10,354.18 0 .00 0 .00 0.00
08-3D-01 RECEIVED 31,062.19 SHARES OF AMER INTL GROUP INC COM IN EXCHANGE 0 .00 31,062 .19 617,599 .79 0.00 FOR 53,648 .00 SHRS OF CUSIP NUMBER #02635110 RATE OF 0 .5790000000 FOR 1 EFFECTIVE 48129/2001 STOCK MERGER
09-19-0 1 / 49-19 -01 RECEIVED CASH IN LIEU OF 19 FRACTIONAL SHARE CASH RATE $77 23 14 67 -0.19 -1 .96 12 .7 1
11-28-01 1 12 -0 3-01 PURCHASED 49,800 . 00 SHARES 11-28-D1 ATA PRICE OF $83.121 PLUS BROKER -4,140,172 .80 49,800.00 4,140,172 .80 0 .00 COMMISSION OF $747 .00 . 12 -05-01 1 12-21-01 $0.042 A SHARE ON 327,390 SHARES EX DATE 12-05-01, RECORD DATE 12-07 -0 1 13,750 .38 0.DD ❑,00 9,00
02-27-02 1 03-15-02 $0.042 A SHARE ON 327,390 SHARES EX DATE 02-27 -02, RECORD DATE 03 -0 1 -0 2 13,750 .38 0.00 0.00 000
06-05 -0 2 1 06-14-02 $0.042 A SHARE ON 327,390 SHARES EX DATE 06-D5 -02, RECORD DATE 06 -07 -0 2 13,750 .38 0.00 000 D 40
06-11-02 TRANSFERRED FROM ACCOUNT 26-48942 0,00 63,600.00 3,675,837 .01 4 .00
06-13 -0 2 1 06-18-02 PURCHASED 400-00 SHARES 00-13-02 AT A PRICE OF $639066 PLUS BROKER -25,566 .64 400.00 25,566 .64 000 COMMISSION OF $4 .00
09-20-02 1 09-20-02 50.047 A SHARE ON 391,390 SHARES EX DATE 09-04-02, RECORD DATE 09 -06 -0 2 18,395 .33 0.00 0 .00 0.00
12-20-02 1 12-20-02 $0.047 A SHARE ON 391,390 SHARES EX DATE 12-04-02, RECORD DATE 12-06 -02 18,395 .33 0.00 0,00 0.00
03 -0 5 -0 3 1 03-21-03 $0.047 A SHARE ON 391,390 SHARES EX DATE 03-05-03, RECORD DATE 03-07 -03 18,395 .33 0.00 0 .00 0.00
06-04-03 1 06-20-03 $0 .047 A SHARE ON 391,390 SHARES EX DATE 06-04-03, RECORD DATE 06 -06-03 18,395 .33 0.00 0 .00 0.00
06-23-03 1 06-26-0 3 SOLD 1,300,00 SHARES 06-23-03 AT A PRICE OF $56 .7808 LESS BROKER 73,792 .08 -1,300.00 -35,540 .96 36,251 .1 2 COMMISSION OF $19 .50 AND OTHER CHARGES OF $3 .4 6
09-03-13 1 09-19-0 3 $0.065 A SHARE ON 390,090 SHARES EX DATE 09-03-03, RECORD DATE 09-05 -03 25,355 .85 0.00 0 .00 0 00 Asset Id Asset I d Trade / Settle Type Description Cash Share/Par Cost Gain/Logs Equities
Common stoc k
026874107 CUS# AMERN INTL GROUP INC CO M
10-02 -03 / 10-0 7-03 SOLD 1,200.00 SHARES 10-02 -0 3 AT A PRICE Of $60 .3332 LESS BROKER 72,378 45 -1,200.00 -32,807,04 39,571 .4 1 COMMISSION OF $18 .00 AND OTHER CHARGES OF $3 .39 '
10 -09-03 1 10-15-03 PURCHASED 24,500 .00 SHARES 10 -09-03 ATA PRICE OF 561 .0005 PLUS BROKER -1,494,818 .50 24,500.00 1,494,818 .50 0.0 0 COMMISSION OF $306.25 '
10-15-03 1 10-70-0 3 PURCHASED 6,600 00 SHARES 10-15-03 AT A PRICE OF $62 .3229 PLUS BROKER -411,430 .14 6,600 .00 411,430 .14 0 00 COMMISSION OF $99 .00 ' 10-22-03 1 10-27 -0 3 PURCHASED 16,400 .00 SHARES 10-22-03 AT A PRICE OF $60.2329 PLUS BROKER -988,024.56 16,400 .00 988,024.56 0.00 COMMISSION OF $205 .00 12-03-03 1 12-19 -03 $0.065 A SHARE ON 436,390 SHARES EX DATE 12-03-03, RECORD DATE 12-05-23 28,365 .35 0 .00 0.00 0 .00
02-04-04 1 02-09-04 SOLD 600.00 SHARES 02-04-04 AT A PRICE OF $70325 LESS BROKER 42,184 02 -600 .00 -16,597.42 23,586 .60 COMMISSION OF $9.00 AND OTHER CHARGES OF $1 .98 -
03-03-04 1 03-19-04 $0 .065 A SHARE ON 435,790 SHARES EX DATE 03-03-04, RECORD DATE 03-05-04 28,326 .35 0.00 000 000
04-06-04 1 04-12-04 SOLD 1,800.00 SHARES 04-06-04 AT A PRICE OF $75 .8206 LESS BROKER 136,451 .38 -1,800 .00 -55,792 .26 80,659 .1 2 COMMISSION OF $22 .50 AND OTHER CHARGES OF $3 .20
D6-02-04 1 06-18-04 $0 .065 A SHARE ON 433,990 SHARES EX DATE 06-02-04, RECORD DATE 06-04-04 26,209 .35 0.00 0 .00 0 .00
09-01-04 1 09-17-04 $0 .075 A SHARE ON 433,990 SHARES EX DATE 09-01-04, RECORD DATE 09-03-04 32,549 .25 0.00 000 0 .00
12-01-04 1 12-17-04 $0 .075 A SHARE ON 433,990 SHARES EX DATE 12-01-04, RECORD DATE 12-03-04 32,549 .25 0 .00 0 .00 0 .00
03 -02-05 / 03-18-0 5 $0 .125 A SHARE ON 433,990 SHARES EX DATE D3-02 -0 5, RECORD DATE 03-04-05 54.248 .75 0,00 0 .00 0 .00
03-22 -0 5 1 03-28-05 PURCHASED 3,600.00 SHARES 03-22-05 AT A PRICE OF $56 .873 PLUS BROKER -216,155 .40 3,800,00 216,155 .40 . 0 .00 COMMISSION OF $38 .00 437,790.00 13,667,979 .04 Asset Id Asset Id Trade ! Settle TYPe Description Cash Share/Par Cost Gain/Los s Equities
Common stock
026874107 CUS# AMERN INTL GROUP INC CO M
OPENING BALANCE 000 000
02-28-00 1 D3-D2 -00 PURCHASED 6,400 .00 SHARES 02-28-DO AT A PRICE OF $88 .1479 PLUS BROKER -564.466 .56 6,400 .00 564,466.56 00 0 COMMISSION OF $320 .00
02-29-00 1 03-03 -00 PURCHASED 2,500.00 SHARES 02-29-00 AT A PRICE OF $87 .5896 PLUS BROKER -219,099 .00 2 500 .00 219,099.00 0.0 0 COMMISSION OF S125 .00 . 03-01-00 / 03-17-00 $005 A SHARE ON 8,900 SHARES E.X DATE 03-01-00, RECORD DATE 03-03-00 445 .00 0 .00 0 .00 00 0
03 -01 -00 1 03-06-00 PURCHASED 2,500.00 SHARES 03-01-D0AT A PRICE OF $86 .4583 PLUS BROKER -221,270.75 2,50000 221,270 .75 0.00 COMMISSION OF $125 .00 03 -06-00 1 03-09-00 SOLD 2 .225 00 SHARES 03-06-00 AT A PRICE OF $84.599 LESS BROKER 188,170.88 -2,22500 -196,119 .37 -7 948 49 COMMISSION OF $55 .62 AND OTHER CHARGES OF $6 .2 8
04-07-00 1 04-12-00 SOLD 1,835 .00 SHARES D4-07-00 ATA PRICE OF $109.51839 LESS BROKER 200,922.85 -1,835 .00 -151,743 .39 39,179.4 6 COMMISSION OF $36 .70 AND OTHER CHARGES OF $6 .7 0
04-20-00 1 04-26-00 SOLD 3,670 .00 SHARES 04-2D-00 AT A PRICE OF $108.2541 LESS BROKER 397,205.90 -3,670 .00 -323,4136 77 73,719.1 3 COMMISSION OF $73 .40 AND OTHER CHARGES OF $13,25 ,
05-23-00 1 05-26-00 SOLD 3,670 .00 SHARES 05-23 -00 ATA PRICE OF $1162725 LESS BROKER 426,632.45 -3,670 .00 -323,486 .79 103,145.6 7 COMMISSION OF $73 .40 AND OTHER CHARGES OF $14.23
CLOSING BALANCE 0 .00 000 Asset Id Asset I d Trade I Settle Type Description Cash Share/Par Cost Gain/Loss Equities
Common stoc k
026874107 CUS# AMERN INTL GROUP INC CO M
OPENING BALANCE 13,625 .00 751,934 .2 9
11-30-99 1 12-16-99 $0.05 A SHARE ON 13,625 SHARES EX DATE 11-30-99. RECORD DATE 12-02-99 681 .25 0.00 0 .00 DO D
12-14-99 / 12-17-99 PURCHASED 1,900.00 SHARES 12-14-99 ATA PRICE OF $1098442 PLUS BROKER -208,418 .98 1,900.00 200,418 .98 0 .0 0 COMMISSION OF $95 .00 ,
03 -0 1 -00 ! D3-17-00 $0.05 A SHARE ON 15,525 SHARES EX DATE 03-01 -00, RECORD DATE D3-03-00 776,25 0.00 000 6.0 0
03-20 -0 0 1 03-23-00 PURCHASED 9,000.00 SHARES 03-20-00 AT A PRICE OF $96.4758 PLUS BROKER -886,822 .20 9,000 00 886,822 .20 0.0 0 COMMISSION OF $540.0 0
05-31 -0 0 1 D6-16-0 0 $0 .05 A SHARE ON 24,525 SHARES EX DATE 95-31 -00, RECORD DATE 06-02-DD 1,22625 0 .00 0 .00 0.00
0E-19-00 1 06-22-00 PURCHASED 400 .00 SHARES 06-19-0 D AT A PRICE OF $118.25 PLUS BROKER -47,32000 400 .00 47,320.00 0 .00 COMMISSION OF $20.00 '
07-31 -00 RECEIVED 17,462-50 SHARES AS A STOCK SPLIT OF 1 ADDITIONAL SHARE(S) 0 .00 12,462 .50 0.00 0 .00 FOR EACH 2 SHARE(S)HELD PAYABLE TO HOLDERS OF RECORD 06-30 -0 0, EX DATE 07-31-130
08-10-DO 1 08-10-00 RECEIVED CASH IN LIEU OF 50 FRACTIONAL SHARE 39,16 -0.50 -25.34 13 .82
06-30 -00 1 09-15-0 0 $0 .037 A SHARE ON 37,387 SHARES EX DATE 08-30-00, RECORD DATE 09-01-00 1,383,32 000 0.00 0 .00
09-18-00 1 09-21-00 PURCHASED 15,900 .00 SHARES 09-18-00 AT A PRICE OF $89.638 PLUS BROKER -1,426,039,20 15,900 .00 1,426,039.20 0 .00 COMMISSION OF $795 .00 !
11-29-00 1 12-15 -00 $0 .037 A SHARE ON 53,287 SHARES EX DATE 11-29-00, RECORD DATE 12-01-00 1,971 .62 0-00 0.00 0 .00
12-16-00 1 12-21-00 SOLD 13,000.00 SHARES 12-18-DOATA PRICE OF $95.9568 LESS BROKER 1,246,746-61 -13,009 .00 -810,077 .90 436,668 .9 1 COMMISSION OF $650 .00 AND OTHER CHARGES OF $41 .59
02-28-0 1 1 03-16 -01 $0.037 A SHARE ON 40,287 SHARES EX DATE 02-28-01, RECORD DATE 03 -02 -01 1,490 .62 0.00 0.00 0 .00
03-19-01 03-22-01 SOLD 11,100.00 SHARES 03-19-01 AT A PRICE OF $76-78 LESS BROKER 851,674 .59 -11,100.00 -691 .681 .90 159,992 .69 COMMISSION OF $555 .00 AND OTHER CHARGES OF $28 .41 '
0530 -0 1 1 06-15 -01 $11037 A SHARE ON 29,187 SHARES EX DATE 05-30 -0 1 . RECORD DATE 06-0 1 -01 1,079 .92 0.00 0.00 0 .00 Asset Id Asset I d Trade 1 Settle Type Description Cash Share/Par Colt GainlLos s Equities
Common stoc k
026874107 CUS# AMERN INTL GROUP INC CO M
00-18-0 1 1 06-21-01 SOLD 6,600 00 SHARES 06-18-01 AT A PRICE OF $ 82 .3119 LESS BROKER 707,428.74 -8,600 .00 -535,897 .69 171 ,531 .05 COMMISSION OF $430.00 AND OTHER CHARGES OF $2360 '
08-06-0 1 1 08-08-01 SOLD 20,56700 SHARES 08-06-01 AT A PRICE OF $80.4318 LESS BROKER 1,665,48&46 -20,587.00 -1,282,851 . 84 372,633 .62 COMMISSION OF $308 .81 AND OTHER CHARGES OF $55 .20
CLOSING BALANCE 0 .00 000 Asset Id Asset I d Trade/ Settle Type Description Cash Share/Par Cost Gain/Loss Equities
Common stoc k
026874107 CUS# AMERN INTL GROUP INC CO M
OPENING BALANCE 000 0 00
05-11-04 17,000 .00 SHARES TRANSFERRED FROM ACCOUNT 17- 38511 0 .00 17,000.00 335,01550 0 .00
DS-02-04 1 06-18-04 $0.065 A SHARE ON 17 .000 SHARES EX DATE 06-02-04, RECORD DATE 0ff-04-04 1,1135 DD 0.00 0 .00 0 .0 0
07-20-04 1 07-23-04 SOLD 17,000,00 SHARES 07-20-04 AT A PRICE OF $68 .76 LESS BROKER 1 , 159,062 .63 -17,000 .00 -335,015 .50 834,047,1 3 cnMMISSION OF $170.00 AND OTHER CHARGES OF $27 .3 7
CLOSING BALANCE 0 .00 0.00 Asset Id Asset Id Trade / Settle Type Description Cash Share/Par Cost G&(p/ s_o s Equities
Common stock
026874107 CUS# AMERN INTL . GROUP INC CO M
OPENING BALANCE 45,000 .00 3,226,506 .06
11-04-99 I 11-D9-09 PURCHASED 900.00 SHARES 11-04-99 AT A PRICE OF $101 .5626 PLUS BROKER -91,415.25 900 .00 91,415 .25 D00 COMMISSION OF $9.00 I 11-30-99 / 12-16-99 $0.05 A SHARE ON 45,90D SHARES EX DATE 11-30-99, RECORD DATE 12-02-99 2,295.00 000 0 .00 00 0
02-14-00 1 D2-17 -00 SOLD 1,900.00 SHARES 02-14-00 AT A PRICE OF $94.1563 LESS BROKER 178,653 .00 -1,900.00 -137,343 .15 41,5091 5 COMMISSION OF $38 .00 AND OTHER CHARGES OF $5 .97
02-15-00 7 02-18-00 SOLD 300 .00 SHARES 02-15-00 ATA PRICE OF $93.8125 LESS BROKER 28,139 .81 -300.00 -21,685 .76 6,454.0 5 COMMISSION OF $3 .00 AND OTHER CHARGES OF $0 .94 -
03 -01 -0 0 1 03-17-00 $0 .05 A SHARE ON 43,700 SHARES EX DATE 03 -0 1 -0 0, RECORD DATE 03-03-00 2,165 .00 0.00 000 0.00
05 .15-00 1 05-18-00 PURCHASED 100.00 SHARES 05-15 -0 0 AT A PRICE OF $115,6064 PLUS BROKER -11,563 .64 100 .00 11,563 .64 0.00 COMMISSION OF $3 .00 1
05-24-00 ! 05-30-00 PURCHASED 300 .D0 SHARES 05-24-00 AT A PRICE OF $114 .5155 PLUS BROKER -34,363 .65 300 .00 34,363 .65 0.00 COMMISSION OF $9 .0 0 05-31 -0 0 1 06-16-00 $0 .05 A SHARE ON 44,100 SHARES EX DATE 05-31 -0 0, RECORD DATE 06 -02-00 2,205 .00 0 .00 0.00 0 00
06-02 -0 0 1 06-07-00 PURCHASED $00 .00 SHARES 06-02-00 AT A PRICE OF $117 .4375 PLUS BROKER -58,72 1 75 500 .00 58,723 .75 0.00 COMMISSION OF $5 .00 '
06-02 -0 0 1 06-07-00 PURCHASED 200,00 SHARES 06-02-00 AT A PRICE OF $117 6831 PLUS BROKER -23,540 .62 200 .00 23,54062 000 COMMISSION OF $4 .00 ' 07-31-00 RECEIVED 22,400.00 SHARES AS A STOCK SPLIT OF I ADDITIONAL SHARE(S) 0.00 22,400 .00 0.00 0.00 FOR EACH 2 SHARE(S) HELD PAYABLE TO HOLDERS OF RECORD 06-30-00, E X DATE 07-31-00 1 06-23 -00 1 06-28-00 PURCHASED 200 .00 SHARES 08-23-00 AT A PRICE OF $86.9375 PLUS BROKER -17 .391 .50 200 .00 17,391 .50 000 COMMISSION OF $4.00 ' 08-30-00 / 09-15 -0 0 $0 .037 A SHARE ON 67,400 SHARES EX DATE 08-30-00, RECORD DATE 09-01-00 2,493.80 000 000 000
09 -06-00 1 09-11-00 SOLD 6,800 .00 SHARES 09-06-00 AT A PRICE OF $87 .75 LESS BROKER 596 .51011 -6 ,50000 -333,369.22 263,120.69 COMMISSION OF $170-00 AND OTHER CHARGES OF $19-89 ' Asset Id Asset I d Trade ! Settle Type Descri Lion Cash here/Par Cost Gain/Los s Equities
Comm on stock
026874107 CUS# AMERN INTL GROUP INC CO M D9-13-00 t 09 - 18-00 PURCHASED 1,900 .00 SHARES 09-13-00 AT A PRICE OF $ 92.1875 PLUS BROKER -175,203 .75 1,900 .00 175,203.75 0 .0 0 COMMISSION OF $47 .50 '
09-26-00 1 09 - 29-00 PURCHASED 100 .06 SHARES 09-26 -00 AT A PRICE OF $92. 5522 PLUS BROKER -9,257 .72 100 .00 9,257.72 0.0 0 COMMISSION OF $2 .50 '
09-26 -00 09-29 -00 PURCHASED 300.00 SHARES 09-26-09 AT A PRICE OF $92 .4375 PLUS BROKER -27,734 .25 300 .00 27,734 .25 0 00 COMMISSION OF $3 .0 0
11 -02 -00 1 11-07 -00 PURCHASED 1,000.00 SHARES 11 -02-00 AT A PRICE OF $98 .7334 PLUS BROKER -98,758 .40 1,000 .00 98, 758 .40 0.00 COMMISSION OF $25 .00 ' 11-06-00 1 11-09 -0 0 PURCHASED 500.00 SHARES 11-06-00 AT A PRICE OF $96 .0645 PLUS BROKER -49,044.75 500 .00 49,044 . 75 0 .00 COMMISSION OF $12 .50 i 11 -07-00 1 11-10 -00 PURCHASED 800.00 SHARES 11-07-00 AT A PRICE OF $99 .349 PLUS BROKER -79,509.60 800 . 00 79,50960 0 .00 COMMISSION Of $30 .40 '
11-29-00 1 12-15 -00 $0. 037 A SHARE ON 65,200 SHARES EX DATE 11 -29 -00, RECORD DATE 12 -01 -0 0 2,412 .40 0,00 0. 00 0.0 0
12-15 -00 1 12 -20-00 PURCHASED 2,000 .00 SHARES 12-15-00 AT A PRICE OF $95. 1944 PLUS BROKER - 190,430 .80 2,000 .00 19D ,430 60 0 .0 0 COMMISSION OF $42 .00 ' 12-21 -0 6 1 12-27-00 SOLD 9,100 00 SHARES 12-21-00 AT A PRICE OF $96 . 875 NET LESS CHARGES OF 881,533 . 11 -9,100 .00 -487,638.88 393,894 .2 3 $29 .39 '
12-29 -00 / 01-04-0 1 PURCHASED 2,300 .00 SHARES 12-29 -00 AT A PRICE OF $98.9375 PLUS BROKER -227,613 .75 2,300 .00 227,613.75 0 .0 0 COMMISSION OF $57.50 01 -0 3 -0 1 1 01 -08-01 PURCHASED 200 .00 SHARES 01-03-01 AT A PRICE OF $95.4553 PLUS BROKER -19 ,097 .06 200.00 19,097 .06 000 COMMISSION OF $6 .0 0
0 1-12 -01 1 01-16-01 PURCHASED 2,200 .00 SHARES 01-12-01 AT A PRICE OF $82.1623 PLUS BROKER -180,827 . 46 2,200 .00 180 ,827.46 0 .00 COMMISSION OF $70.40 ; 02-28-01 1 03 -16-01 $0 .637 A SHARE ON 62, 800 SHARES EX DATE 02 -28-01, RECORD DATE 03-0 2 -01 2,323.60 0 .00 0 .00 0 .0 0
05-11 -01 1 05-16-01 SOLD 2, 700 00 SHARES 05-11-01 AT A PRICE OF $81 .8882 LESS BROKER 220,966.57 -2,700 .00 -152 ,237 .22 68, 729 .3 5 COMMISSION OF $124 .20 AND OTHER CHARGES OF $7 .37 '
05-30-0 1 1 06-15 -0 1 $0 .037 A SHARE ON 60,100 SHARES EX DATE 05 - 30-0 1, RECORD DATE 06 -0 1 -0 1 2,223. 70 0 .00 0 .00 D .0 0
08-07-0 1 1 09- 14-01 $0 .042 A SHARE ON 60,100 SHARES EX DATE 08 -07-0 1, RECORD DATE 08 -09-01 2,524 ,20 0 .00 0 .00 0 .00 Assetld Asset I d Trade / Settle Type Description Cash Share/Par Cost Gain/Loss Equities
Common sto ck
026874107 CUS# AMERN INTL GROUP INC COM
08-30-01 RECEIVED 15,864 .60 SHARES OF AMER INTL GROUP INC COM IN EXCHANGE 0 .00 15,664.60 992,608 .43 00 0 FOR 27,400 .06 SHRS OF CUSIP NUMBER #02635110 RATE OF 0 .5790600000 FOR 1 EFFECTIVE 08!2912001 STOCK MERGE R
09-19-0 1 1 09-19-01 RECEIVED CASH IN LIEU OF .60 FRACTIONAL SHARE CASH RATE $77 .23 46 .33 -0 .60 -34 .61 11 .7 2
10 -0 5-0 1 1 10-11 -0 1 PURCHASED 400..00 SHARES 10-05-01 AT A PRICE OF $78 .3025 PLUS BROKER -31,329 .00 400 .00 31,329 .00 0 00 COMMISSION OF $8 .00 ',
10-23 -0 1 1 10-26-01 PURCHASED 36.00 SHARES 10-23-01 AT A PRICE OF $84.35 PLUS BROKER -3,037 .50 36 .00 3,037 .50 0.00 COMMISSION OF $0 .90 1 10-31 -0 1 1 11-05-01 SOLD 1,600 .00 SHARES 10-31-01 ATA PRICE OF $79 .6005 LESS BROKER 127,295 .75 -1,600 .00 -92,473 .89 34,821 .86 COMMISSION OF $60.80 AND OTHER CHARGES OF $4 .25 F 11-12-01 1 11-15-01 SOLD 30D .00 SHARES 11-12-01 AT A PRICE OF $782347 LESS BROKER 23,460.62 -300 .00 -17,338 .85 6,121 .77 COMMISSION OF $9 .00 AND OTHER CHARGES OF $0 .79 11-15-01 1 11-20-01 SOLD 500 .00 SHARES 11-15 -01 AT A PRICE OF $81 .8896 LESS BROKER 40,928 .43 -500 .00 -26,898.09 _ 12,030.34 COMMISSION OF $15.00 AND OTHER CHARGES OF $1 .37
12 -05 -0 1 1 12-21 .01 $0 .042 A SHARE ON 74,000 SHARES EX DATE 12-05-01, RECORD DATE 12-0 7 -01 3,108.00 0.00 0.00 0 .00
12-14-01 1 12-19-01 SOLD 300 .00 SHARES 12-14-01 AT A PRICE OF $79 .6284 LESS BROKER 23,878.72 -300.00 -17,338.85 6,539.87 COMMISSION OF $9 .00 AND OTHER CHARGES OF $0 .80 12-17-01 ! 12-20-01 SOLD 600.00 SHARES 12-17-01 ATA PRICE OF $80 .7743 LESS BROKER 48,437,76 -600.00 -34,677.71 13,760 .05 COMMISSION OF $25.20 AND OTHER CHARGES OF $1 .62 .
12-16-01 ! 12-21-01 SOLD 300.00 SHARES 12-18-01 AT A PRICE OF $80 .9848 LESS BROKER ' 24,285.63 -3 00.00 -17,338.85 $ 946 78 COMMISSION OF $900 AND OTHER CHARGES OF $0.81
12-19-01 1 12-24-01 SOLD 900.00 SHARES 12-19-01 ATA PRICE OF $81 .1378 LESS BROKER 72,994 .58 -900.00 -52,016.56 20,978 .02 COMMISSION OF $27 .00 AND OTHER CHARGES OF $2 .44
12-20-01 1 12-26 -0 1 SOLD 900.00 SHARES 12-20-01 AT A PRICE OF $80.5357 LESS BROKER 72,452 .71 900.00 -52,01656 20,436 .1 5 COMMISSION OF $27 Do AND OTHER CHARGES OF $2 .42 , 01 .28-02 1 01-31-02 SOLD 300.00 SHARES 01-28-02 ATA PRICE OF $77 .7785 LESS BROKER 23,324,20 -300.00 -17,338.65 5,985 .35 COMMISSION OF $9,00 AND OTHER CHARGES OF $0.35 Asset Id Asset I d Trade Settle Type Dese6o ion Cash Share/Par Cost Gain/Loss Equities
Commo n stock
026874107 CUS# AMERN INTL GROUP INC CO M
02-08-02 1 02-13 -02 SOLO 1,500 .00 SHARES 02-08-02 AT A PRICE OF $740808 LESS BROKER 111,074.53 -1,500 .00 -06,694.27 24,380 .26 COMMISSION OF $45 .00 AND OTHER CHARGES OF $1 .6 7
02-11-02 1 02-14-02 SOLD 1,400.00 SHARES 02-11-02 AT A PRICE OF $743456 LESS BROKER 103,89827 -1,40000 -80,914 .65 23,083 .62 COMMISSION OF $84.00 AND OTHER CHARGES OF $1 .5 7
02-12-02 1 02-15-02 SOLO 1,600.00 SHARES 02-12-02 AT A PRICE OF $74.00 LESS BROKER 118,308 .62 -1,600-00 -92,473 .89 25,834 .73 COMMISSION OF $89 .60 AND OTHER CHARGES OF $1 .7 B
02-12-02 1 42-15-02 SOLD 200 .00 SHARES D2-12-02 AT A PRICE OF $74 .085 LESS BROKER 14,812 .77 . -200 .00 -11,55924 3,253.53 COMMISSION OF $4 .00 AND OTHER CHARGES OF $0 .23 .
02-13-02 1 02-19-02 SOLD 1,300 .00 SHARES 02-13 -0 2 AT A PRICE OF $77022 NET LESS CHARGES OF 100,127.09 -1,30000 -75,13503 24 9920 6 $1 .5 1
02-14-02 1 02-20-02 SOLD 1,100 .00 SHARES 02-14-02 AT A PRICE OF $76 .7923 LESS BROKER 84,437.26 -1,100 .00 -63,575 .80 20,861 .4 6 COMMISSION OF $33.00 AND .OTHER CHARGES OF $1 .27
02-27 -02 1 03-15-02 $0 .042 A SHARE ON 63,600 SHARES EX DATE 02-27 -02, RECORD DATE 03-0 1 -02 2671 20 0 .00 0 .00 000
06 -0 5-02 1 D6-14-02 $0 .042 A SHARE ON 63,600 SHARES EX DATE 06 -05-02, RECORD DATE 06-07 -02 2,671 .20 0 .00 0.00 0.00
06-11-02 TRANSFER TO ACCOUNT 26-34320 0.00 -6 3,600 .00 -3,675,837 .01 0.0 4
CLOSING BALANCE 0 .00 0 .00 Asset Id Asset I d bade I Settle Type Description Cash Share/Par Cost Gain/Loss Equities
Common stock
026674107 CUS# AMERN INTL GROUP INC CO M
OPENING BALANCE 119,752.00 7,986,326,83
10-01-99 1 10-06-99 PURCHASED 100.00 SHARES 10-01-99 AT A PRICE OF $83 .625 PLUS BROKER -8,365 .50 100.00 8,365.50 0,00 COMMISSION OF $3.00 '
10-11-99 1 10-14-99 SOLD 100.00 SHARES 10-11-99 AT A PRICE OF $92 .00 LESS BROKER COMMISSION 9,196.69 -100.00 -6,67047 2,526.2 2 OF $3.00 AND OTHER CHARGES OF $0,3 1
10-14-99 1 10-19-99 PURCHASED 100 .00 SHARES 10-14-99 AT A PRICE OF $85 .00 PLUS BROKER -8,50300 100.00 8,503.00 000 COMMISSION OF $&D0 ,
11-12-99 1 11-17-99 PURCHASED 200 .00 SHARES 11-12-99 AT A PRICE OF $105.75 PLUS BROKER .21,151 .00 200 .00 21,151 .00 000 COMMISSION OF $1 .00
11-30-99 1 12-16-99 $0 .05 A SHARE ON 120,052 SHARES EX DATE 11-30-99, RECORD DATE 12-02-99 6,00260 0 .00 0,00 000
11-30-99 1 12-03-99 PURCHASED 200.00 SHARES 11-30-99 AT A PRICE OF $10326 PLUS BROKER -20,651 .00 200 .00 20,651 .00 0.00 COMMISSION OF $1 .00 t
12-15-99 1 12-20-99 PURCHASED 200 .00 SHARES 12-15-99 AT A PRICE OF $108 .75 PLUS BROKER -21,751,00 200 .00 21,751 .00 0 .00 COMMISSION OF $1 .00 01-14-00 1 01-20-00 PURCHASED 200,00 SHARES 01-14-00 AT A PRICE OF $114.0625 PLUS BROKER -22,813 .50 200 .00 22,81350 0.00 COMMISSION OF $1 .00
02-15-00 1 02-18-00 PURCHASED 200.00 SHARES 02-15-00 AT A PRICE OF $96.4375 PLUS BROKER -19,288 .50 200 .00 19,288,50 0 00 COMMISSION OF $1 .00
03 -0 1 -0 0 1 0347-00 $0 .05 A SHARE ON 120,852 SHARES EX DATE 03-0 1 -0 0, RECORD DATE 03-03-00 6,04260 0 .00 0 .00 0.00
03-15 -0 0 1 03-20-00 PURCHASED 100,00 SHARES 03-15-0 0 AT A PRICE OF $91 .4375 PLUS BROKER -9,144 .25 100 .00 9,144.25 D.0 0 COMMISSION OF $0 .50 1
03-17 -0 0 1 03-22 -00 PURCHASED 200.00 SHARES 03-17-GOAT A PRICE OF $97.375 PLUS BROKER -19,481 .00 200 .00 19,481 .00 0.00 COMMISSION OF $6 .DD
04-03-00 1 04-06-00 PURCHASED 500.00 SHARES 04-03-00 AT A PRICE OF $114 .9026 PLUS BROKER -57,466 .30 500 .00 57,466.30 0.00 COMMISSION OF $15 .00
04-17-00 1 04-20-00 PURCHASED 800 .00 SHARES 04-17-09 AT A PRICE OF 9101 .625 PLUS BROKER -81,324.00 800 .00 81,324.00 0 .0 0 COMMFSSION OF $24 .00 ,
05-31-00 1 06-16-00 $0 .05 A SHARE ON 122,452 SHARES EX DATE 05-31 -0 0, RECORD DATE 06 -02-00 6,122 .60 0 .00 0.00 0.00 Asset Id Asset I d Trade 1 Settle Type Description Cash Share/Par Cost Gain/Loss Equities
Common stock
026874107 CUS# AMERN INTL GROUP INC CO M
06 -0 1-00 1 06-06 -0 0 PURCHASED 100 .00 SHARES O6-Dl-DOATA PRICE OF $1164304 PLUS BROKER -11,646 .04 100 .00 11,64604 0.0 0 COMMISSION OF $3 .00 '
06 -02-00 1 06-07-00 PURCHASED 200 .00 SHARES 06-02-DO AT A PRICE OF $116 .625 PLUS BROKER -23,731 .00 200 .00 23,731 .00 0.00 COMMISSION OF $6 .0 0
06-07-00 / 06-12 -00 PURCHASED 100 .00 SHARES 06-07-00 AT A PRICE OF $119 .50 PLUS BROKER -11,950,50 100 .00 11,950-50 0.00 COMMISSION OF $0 .50 ,
06-19 -00 1 06-22 -00 PURCHASED 200 .00 SHARES 06-19-00 AT A PRICE OF $117 .625 PLUS BROKER -23,531 .00 r 200 .00 23,531 .00 0.00 COMMISSION OF $6 .00 ,
06-27-00 1 06-30 -00 PURCHASED 100 .00 SHARES 06-27-00 AT A PRICE OF $120 1875 PLUS BROKER -12,02175 100-00 12,021-75 0.00 COMMISSION OF $3-00
06-30-00 1 07 -06 -00 . SOLD 4,174 .00 SHARES D6-30-00 AT A PRICE OF $117 .53 NET LESS CHARGES OF 490,553.86 -0,174 .00 -283,691 .09 207462 7 7 $16.3 6
06-30 -0 0 1 07-06-00 SOLD 1,526 .00 SHARES 06-30-00 AT A PRICE OF $117 .50 LESS BROKER 179,291,39 -1,526 .00 -103,49712 75,794 .27 COMMISSION OF $7 .63 AND OTHER CHARGES OF $5,98 '
07-05-00 1 07-06 -00 SOLD 1,300 .00 SHARES 07-05-00 AT A PRICE OF $1205412 LESS BROKER 156,633 .33 -1,300 .00 -88,169 .24 68,464 .09 COMMISSION OF $65 .00 AND OTHER CHARGES OF $5 .2 3
07-14-00 1 07-19-00 PURCHASED 100.00 SHARES 07-14-00 AT A PRICE OF $120.50 PLUS BROKER -12,05300 100 .00 12,053-00 0 .00 COMMISSION OF $3 .00 .
07-24 -0 0 / 07-27-00 PURCHASED 400-00 SHARES 07-24-00 AT A PRICE OF $119.9181 PLUS BROKER -47,979 .24 400 .00 47,979 .24 000 COMMISSION OF $12-00 C 07-28-00 t 08-02-00 PURCHASED 200.00 SHARES 07-28-DO ATA PRICE OF $127 .6397 PLUS BROKER -25,533.94 200 .00 25,533 .94 000 COMMISSION OF $6 .00 07-31-00 RECEIVED 58,426-00 SHARES AS A STOCK SPLIT OF 1 ADDITIONAL SHARE(S) 0 .00 56,426 .00 0-00 D 40 FOR EACH 2 SHARE(S) HELD PAYABLE TO HOLDERS OF RECORD 06-30-00, E X DATE 07-31-00
08-01-00 1 08-04-00 PURCHASED 200.00 SHARES 08-01-00 AT A PRICE OF 567 .2013 PLUS BROKER -17,46226 200-00 17,462 .26 0.00 COMMISSION OF $6 .00, A .
08-11 -0 0 1 06-16-00 PURCHASED !DO DO SHARES OB-11-00 AT A PRICE OF 386 .50 PLUS BROKER -8,65300 100 .00 8,65300 0.0 0 COMMISSION OF $3,00'' Asset Id Asset I d Trade Settle Type e ri tion ash Shere/Par Cost Qamalpss Equities
Common stoc k
026874107 CUS# AMERN INTL GROUP INC COM
08-23-00 1 08-28-00 PURCHASED 300 .00 SHARES 08-23-00 AT A PRICE OF $86.125 PLUS BROKER -25,846 .50 300.00 25,846 .50 0 .00 COMMISSION OF $9 .00
48-30-00 / 09-15-00 $0.037 A SHARE ON 175,878 SHARES EX DATE 08-30-00 . RECORD DATE 09 -0 1 -00 6,507 .49 0.00 000 0 .00
09 .07-00 1 09-12-00 PURCHASED 400 .00 SHARES 09-07-06 AT A PRICE OF 586 ,3868 PLUS BROKER -34,566 .72 400.00 34,56672 0 .00 COMMISSION OF $12:00
09-13-00 / 09-18-00 PURCHASED 200 .00 SHARES 09-13-00 AT A PRICE OF $91 .8125 PLUS BROKER -18,36850 200 .00 18,368.50 00 0 COMMISSION OF $6,00 .
10-04-00 1 10-14 -0 0 PURCHASED 300 .00 SHARES 10-04-00 AT A PRICE OF $95 .6875 PLUS BROKER -28,715 .25 300 .00 28,715.25 0 .0 0 COMMISSION OF $9 .00
11 -01 -00 1 11-06-00 PURCHASED 200,00 SHARES 11-01-00 AT A PRICE OF $98 .00 PLUS BROKER -19,606 .00 200 .00 19,606.00 0 0 0 COMMtSStON OF $6 .00
11 -03-00 1 11-08-00 PURCHASED 200,00 SHARES 11-13-00ATA PRICE OF $94,9375 PLUS BROKER -18,993 .50 200 .00 18,993.50 0 .0 0 COMMISSION OF $6 .00
11-10-00 1 11-15-0 0 PURCHASED 20000 SHARES 11-10-00 AT A PRICE OF $102.0625 PLUS BROKER -20,448 .50 200 .00 20,416.50 0,0 0 COMMISS/ON OF $6 .00 .
11-13 -00 1 11-16-0 0 PURCHASED 200.00 SHARES 11-13-00 AT A PRICE OF $97 .125 PLUS BROKER -19,431 .00 200 .00 19,431 .00 0 .0 0 COMMISSION OF $6 .00
11-22-00 1 11-28-00 PURCHASED 300 .00 SHARES 11-22-00 AT A PRICE OF $92 .125 PLUS BROKER -27,646 .50 300 .00 27,646.50 0 .0 0 COMMISSION OF $9 .00 1
11-24-00 1 11-29-00 PURCHASED 1,100.00 SHARES 11-24-00ATA PRICE OF $92 175 PLUS BROKER -102,168 A0 1,100 .00 102,168.00 0 .0 0 COMMISSION OF $5 .50
11-29-00 1 12-15-0 0 $0 .037 A SHARE ON 178,978 SHARES EX DATE 11-29-00, RECORD DATE 12-01-00 6,622.19 0 .00 0.00 0 0 0
11-30-00 1 12 -05-00 PURCHASED 200,00 SHARES 11-30 -00 AT A PRICE OF $96 .9375 PLUS BROKER -19,393 .50 200 .00 19,393.50 0 .0 0 COMMISSION OF $6 .00 .
12-01-00 1 12-06-00 PURCHASED 300 .00 SHARES 12-01-00 AT A PRICE OF $97 .6875 PLUS BROKER -29,345 .25 300 .00 29,315.25 0 .0 0 COMMISSION OF $9 .00
12-11-00 1 12-14-00 PURCHASED 490,90 SHARES 12-11-00 AT A PRICE OF $100.0625 PLUS BROKER -49,045 .33 490 .00 49,045.33 0 .00 COMMISSION OF $14 .70 '
12-13-CO 1 12-18-0 0 PURCHASED 200,00 SHARES 12-13-00 AT A PRICE OF $97 .75 PLUS BROKER -19,556 .00 200 .00 19,55&.00 p oo COMMISSION OF $6 .00 Asset Id Asset I d Trade / Settle Type Description Cash Share/Par Cost Gain/Los s Equities
Common stoc k
026874107 CUS# AMERN INTL GROUP INC CO M
12-22-00 1 12-28-00 PURCHASED 400 .00 SHARES 12-22-00 AT A PRICE OF $96 .8125 PLUS BROKER. -38,737.00 400 .00 38,737 .00 0 .00 COMMISSION OF $12.00
01-02-01 1 01-05-0 1 PURCHASED 300.00 SHARES 01-02-01 AT A PRICE OF $97,0312 PLUS BROKER -29,118 .36 300,00 29,118 .36 0 .00 COMMISSION OF $900 .
01 -0 9-01 1 01-12-01 PURCHASED 100.00 SHARES 01 -0 9-01 AT A PRICE OF $87.6875 PLUS BROKER -3,771 .75 100,00 8,771 .75 0 .00 COMMISSION OF $3 .00
02-26-01 1 03-16-0 1 $0 .037 A SHARE ON 180,960 SHARES EX DATE 02-28-01, RECORD DATE 03-02 -0 1 6,695 .82 0.00 0 .00 000
03-06-01 1 03-13-0 1 PURCHASED 100,00 SHARES 03-08-01 AT A PRICE OF $82 .6502 PLUS BROKER -8,268 .02 100.00 8,288 .02 0 .0 0 COMMISSION OF $3 .00
03 -0 8-01 1 03-13-01 PURCHASED 100 .00 SHARES 03-0 8-01 AT A PRICE OF $83.78 PLUS BROKER -8 ,370 .50 100.00 8,378.50 0 .0 0 COMMISSION OF $0 .50 ,
03-26-01 1 03-29-0 1 PURCHASED 100 .00 SHARES 03-26-01 AT A PRICE OF $77.67 PLUS BROKER -7,770.00 100.00 7,770.00 0 .0 0 COMMISSION OF $3 .0 0
05-29-01 1 06 -01 -0 1 PURCHASED 200 .00 SHARES 05-29-0 1 ATA PRICE OF $62.23 PLUS BROKER -16,452 .00 200.00 16,452-00 D0 0 COMMISSION OF $6 .0 0
05-30-0 1 f 06-15-01 $0 .037 A SHARE ON 181,468 SHARES EX DATE D5-30-01, RECORD DATE 06 -01 -0 1 6,714.32 0 .00 0.00 00 0
06-01-01 1 06-06 -0 1 PURCHASED $00 .00 SHARES 06-01-01 AT A PRICE OF $80 .09 PLUS BROKER -64,096 .00 800 .00 64,096.00 0 .0 0 COMMISSION OF $24 .0 0
06-05-0 1 1 06-08 -0 1 PURCHASED 100 .00 SHARES 06-05-0 1 AT A PRICE OF $81 .70 PLUS BROKER -8 ,173 .00 /00 .00 8,173.00 0 .0 0 COMMISSION OF $3 .00
06-29-01 1 07-05-0 1 SOLD 84,412 .00 SHARES 06-29-01 ATA PRICE OF $86 .00 LESS BROKER 7 .258 .767 .95 -84,412 .00 3,986,322 .48 3,272,44547 COMMISSION OF $422 .06 AND OTHER CHARGES OF $241 .99
06-29-01 1 07-05-01 SOLD 54,438 .00 SHARES 06-29-01 ATA PRICE OF $85 .005 LESS BROKER 4,626,803.55 -54 .438.00 -2,570,812 .48 2,055,991 .07 COMMISSION OF $544 .38 AND OTHER CHARGES OF $154.2 6
07-02-01 1 07 -05-01 SOLD 50.00 SHARES 07-02-01 AT A PRICE OF $86 .5848 LESS BROKER 4 .327.59 -50.00 -2,36 1 .23 1,966 .36 COMMISSION OF $1-50 AND OTHER CHARGES OF $0 .1 5
D7-12-01 1 07-17-01 PURCHASED 100 .00 SHARES 07-12-01 AT A PRICE OF $84 .0982 PLUS BROKER -8,412-82 100.00 6,412.82 0 .00 COMMISSION OF $3 .00 I Asset Id Asset I d
Trade 1 Settle Type Description Cash Share/Par Cost Gain/Loss Equities
Common stock
026874107 CUS# AMERN INTL GROUP INC CO M
08-0 1-0 1 1 08-06-01 PURCHASED 100.00 SHARES 08-01-01 AT A PRICE OF $83 .19 PLUS BROKER -8,322 .00 100 .00 8,322 .00 0 .00 COMMISSION OF $3.00 ' 08-07-01 1 $0 .042 A SHARE ON 43,668 SHARES EX DATE 08 09-14-01 -0 7-0 1, RECORD DATE 08-09-01 1,834.06 0.00 0 .00 0 0 0
DR-30-01 RECEIVED 30,106 .84 SHARES OF AMER INTL GROUP INC COM IN EXCHANGE 0.00 30,106 .84 1,383,677 .00 00 0 FOR 51 .998 .00 SHRS OF CUSIP NUMBER #02635110 RATE OF 0 .5790000000 FOR 1 EFFECTIVE 08!2912001 STOCK MERGE R 09-19-01 ! D9-19-0 1 RECEIVED CASH IN LIEU OF .84 FRACTIONAL SHARE CASH RATE $77 .23 64.87 -0 .84 -39 .32 25 .5 5 11-01-01 1 11 -06-0 1 PURCHASED 200.90 SHARES 11 -0 1-01 AT A PRICE OF $79 .94 PLUS BROKER -15,990.00 200.00 15,990.00 0 .0 0 COMMISSION OF $2 .00 11-20-01 / 11-26-0 1 PURCHASED 100.00 SHARES 11-20-01 AT A PRICE OF $80 .95 PLUS BROKER -8 ,098.00 100 .00 8,098.00 0 .0 0 COMMISSION OF $3, D0 12-05-0 1 1 12-21-01 $0042 A SHARE ON 74,074 SHARES EX DATE 12 -05-0 1, RECORD DATE 12-0 7 -0 1 3,111 .11 0 .00 0 .00 0 0 0
12-21-01 1 12-27-01 PURCHASED 200.00 SHARES 12-21-01 AT A PRICE OF $80 .00 PLUS BROKER -16,001 .00 200 .00 16,001 .00 0 .00 COMMISSION OF $1 .00 ~ 12-31-01 1 01-04-02 PURCHASED 200 .00 SHARES 12-31-01 AT A PRICE OF $79 .40 PLUS BROKER -15,881 .00 200 .00 15,881 .00 0 .00 COMMISSION OF $1 .00 02-27-02 7 03-15 -02 $0.042 A SHARE ON 74,474 SHARES EX DATE 02-27 -02, RECORD DATE 03 -0 1 -02 3,127.91 0 .00 0 .00 000 -
03 -08-02 1 03-13 -02 PURCHASED 100 'DODO .00 SHARES 03-08-02 AT A PRICE OF $74 .66 PLUS BROKER -7,469 .00 7,469 .00 0.00 COMMISSION OF $3 Do , 04-30-02 1 05-03 2 -0 PURCHASED 400 .00 SHARES 04-30-02 AT A PRICE OF $69 .12 PLUS BROKER -27,650 .00 400 .00 27,650 00 0 .00 COMMISSION OF $2.00 06 5-02 1 -0 -0 06-14 2 $0.042 A SHARE ON 74,974 SHARES EX DATE 06-05 -02, RECORD DATE 05-07 -02 3,148 .91 0 .00 0.00 0 .00
06-11 -02 1 06-14-02 PURCHASED 200.00 SHARES 06-11-02 AT A PRICE OF $63-85 PLUS BROKER -12,776 .00 200 .00 12,776.00 D 00 COMMISSION OF $6.00 06-20-02 1 07-03 -02 PURCHASED 4,238 OD SHARES 06-2B-02 AT A PRICE OF $68 .2194 -84,455 .62 1,238 .00 84,455.62 0 .0 0
06-28-02 1 07-03 2 -0 SOLD 800 .00 SHARES 06-28 -0 2 AT A PRICE OF $68.23 NET LESS CHARGES OF 54,582 .35 -800 .00 -45,990 .03 8,592 .3 2 $1 .65 Asset Id Asset Id Trade / Settle Type Description Cash Share/Par Cost Gain/Los s Equities
Common stoc k
026874107 CUS# AMERN INTL GROUP INC CO M
06-28-02 1 07 -03 -0 2 PURCHASED 69,907 .00 SHARES 06-28 -02 AT A PRICE OF $68.23 PLUS BROKER -4,769,866 .46 69,907 .00 4,769 .866.46 0.00 COMMISSION OF $111 .85
07 -01 -02 1 07-05-02 SOLD 100 .00 SHARES 07-01 -0 2 AT A PRICE OF $67 .60 LESS BROKER COMMISSION 6,756 .79 -100 .00 -5,748 .75 1,00804 OF $3.00 AND OTHER CHARGES OF $0 .2 1
07-31 -02 / 08-05 -0 2 PURCHASED 198 .00 SHARES 07-31 -0 2 AT A PRICE OF $63 .92 PLUS BROKER -12,662.10 198 .00 12,662,10 0 .00 COMMISSION OF $5.94 L
07-31 -0 2 / 08-D5-02 PURCHASED 102 .00 SHARES 07-31-02 AT A PRICE OF $63 92 PLUS BROKER -6,520 .35 102.00 6,520 .35 000 COMMISSION OF $0.51
09-20 -0 2 1 09-20-02 $0 .047 A SHARE ON 145,719 SHARES EX DATE 09-04-02, RECORD DATE 09-06-02 6,848 .79 0.00 0 .00 0 .00
10-07 -0 2 1 10-10-02 PURCHASED 300.00 SHARES 10-07 -0 2 AT A PRICE OF $52 .45 PLUS BROKER -15,744 .00 30000 15,744 00 0.0 0 COMMISSION OF $9 .00
10-31 -0 2 1 11 -0 5 -02 PURCHASED 191 00 SHARES 10-31-02 AT A PRICE OF $62 .55 PLUS BROKER -11,952 .78 191 .00 11,952 .78 o .o o COMMISSION OF $5.73 .
10-31 -0 2 1 11-05-02 PURCHASED 109.00 SHARES 10-31-02 AT A PRICE OF $62.55 PLUS BROKER -6,818 .50 109.00 6,818 .50 0 .00 COMMISSION OF $0 .55
11-26 -0 2 1 12-D2 -02 PURCHASED 300 .00 SHARES 11-26-02 ATA PRICE OF $62 .45 PLUS BROKER -18,744 .00 300.00 18,744 .00 0 .00 COMMISSION OF $9 .00 1
12-20-02 1 12-20-02 $0 .047 A SHARE ON 146,619 SHARES EX DATE 12-04-02, RECORD DATE 12-06-02 6,891 .09 0.00 000 0 .0 0
01-10 -0 3 1 01-15-03 411 .00 PURCHASED 411 .00 SHARES 01-10-03 AT A PRICE OF $62.30 PLUS BROKER -25,617 .63 25,617 .63 0,00 COMMISSION OF $12 .33
01-22 -0 3 1 01-27 -03 _ PURCHASED 188 .00 SHARES 01-22 -0 3 AT A PRICE OF $61 .6758 PLUS BROKER -11,600 .69 188.00 11,600 .69 0 .00 COMMISSION OF $5 .64
02-28-03 1 03-0 5-03 PURCHASED 349.00 SHARES 02-28-03 AT A PRICE OF $49.29 PLUS BROKER -17,203 .95 349.00 17,203,95 0 .0 0 COMMISSION OF $1 .74
03-0 5-03 1 03-21-03 $0.047 A SHARE ON 147,567 SHARES EX DATE 03-05 -03, RECORD DATE 03 -07-0 3 6,935.65 0.00 0 .00 DO D
03-13 -0 3 1 03-18-03 PURCHASED 182 .00 SHARES 03-13-03 AT A PRICE OF $47.70 PLUS BROKER -8.6131 .86 182.00 8,681 .86 0 .00 COMMISSION OF $0 .46 03-28-03 1 04-02-03 PURCHASED 396 .00 SHARES 03-28 -0 3 AT A PRICE OF $49.85 PLUS BROKER -19,748,52 396.00 19,748 .52 0.00 COMMISSION OF $7.92, Asset Id Asset Id Trade / Settle Type Description Cash Share/Par Cost Gain/Los s Equities
Comm on stock
026874107 CUS# AMERN INTL . GROUP INC CO M
03-28-03 1 04-02-03 PURCHASED 300 .00 SHARES 133-28-03 AT A PRICE OF $49 .85 PLUS BROKER -14,955 .75 300 .00 14,955.75 00 0 COMMISSION OF $0 .7 5
05-30-03 1 06-04-03 PURCHASED 161,90 SHARES 05-30-03 AT A PRICE OF $57 .88 PLUS BROKER -9,31908 161 .00 9,319.08 0 .0 0 COMMISSION OF $0 .40 ,
06-04-03 1 06-20 -03 $0.047 A SHARE ON 148,606 SHARES EX DATE 06-04-03, RECORD DATE 06-06-03 6,984.48 0.00 000 0 .0 0
06-30-03 / 07-03 -03 SOLD 9 .056 .00 SHARES 06-30-03 AT A PRICE OF $55 .2904 NET LESS CHARGES OF 500,686.42 -9,056.00 -520,385.06 .19,698 .64 $23 .44 i
06-30-03 1 07-03 -03 SOLD 11,450 .00 SHARES 06-30-03 AT A PRICE OF $55 .18 LESS BROKER 631,758 .53 -11,450.00 -6657,951-51 -26,1929 8 COMMISSION OF $22 .90 AND OTHER CHARGES OF $29,57 ,
07-31 -0 3 I 08-05-03 PURCHASED 53300 SHARES 07-31-03 AT A PRICE OF $64 .20 PLUS BROKER -34,221 .27 533 .00 34,221 .27 000 COMMISSION OF $2.67
09-03 -0 3 I 09-19-03 $0 .065 A SHARE ON 128,633 SHARES EX DATE 09-03 -03, RECORD DATE 09-05-03 6,361 .15 000 0 .00 000
09-30-03 / 10 -0 3-03 SOLD 41,514 .00 SHARES 09-30-03 AT A PRICE OF $57.70 LESS BROKER 2,394 .519 .19 -41,514.00 -2,386,679 .30 7,839, B9 COMMISSION OF $726 .50 AND OTHER CHARGES OF $112-1 1
09-30-03 1 10-03-03 SOLD 3,449 .00 SHARES 09-30-03 AT A PRICE OF $57 .70 LESS BROKER 198,986,74 -0,449 .00 -198,286 .29 694 .45 COMMISSION OF $17.24 AND OTHER CHARGES OF $9 .3 2
10-31 -0 3 1 11- 1)5-03 PURCHASED 44B00 SHARES 10-31-03 AT A PRICE OF $60.83 PLUS BROKER -27,254 .08 448 .00 27,254 .08 0.00 COMMISSION OF $2.24 1
12-03-03 1 12-19-03 $0065 A SHARE ON 84 .118 SHARES EX DATE 12-03 -0 3, RECORD DATE 12-05 -03 5,467 .67 0,00 0-00 0-00
D1-30-04 1 02-04-04 PURCHASED 443-D0 SHARES 01-30-D4 AT A PRICE OF $6945 PLUS BROKER -30,768,56 443 .00 30,766 .56 0 .00 COMMISSION OF $2.2 1
03-03-04 1 03-19-04 $0 .065 A SHARE ON 84,561 SHARES EX DATE 03-03-04, RECORD DATE 03-05-04 5,496 .47 0, 00 0OD 0-00
04-15-94 1 04-20-04 PURCHASED 140-00 SHARES 04-15-04 AT A PRICE OF $74.68 PLUS BROKER -10,455 .90 140 .00 10,455,90 0.00 COMMISSION OF $0.70
04-28-04 I 05-03-04 PURCHASED 222 .00 SHARES D4-28-04 AT A PRICE OF $71 .51 PLUS BROKER -15,879 .11 222 .00 15,679 .11 0 .00 COMMISSION OF $3.89' Asset Id Asset Id
Trade I Settle Type Description Cash Share/Par Cost Gain/Los s Equities
Common stock
026874107 CUS# AMERN INTL GROUP INC CO M
05-25-04 / 05-28-04 PURCHASED 183 .00 SHARES 05-25-04 AT A PRICE OF $72.00 PLUS BROKER -13,176 .92 183 .00 13,176 .92 0 .00 COMMISSION OF $0-9 2 06-02-04 1 06-16-04 $0065 A SHARE ON 85,106 SHARES EX DATE 06-02-04, RECORD DATE 06-04-04 5 ,531 .89 0 00 000 000
06-25-04 1 06-30-04 SOLD 14,522 .00 SHARES 06-25-04 AT A PRICE OF $71 .75 LESS BROKER 1,041 .892 .61 -14,522 .00 - -837,439 .26 204,453.55 COMMISSION OF $36.30 AND OTHER CHARGES OF $24 .39
06-25-04 1 06-30-04 SOLD 14,631 .00 SHARES 06-25-04 AT A PRICE OF 571 .816 NET LESS CHARGES OF 1,050,715,31 -14,631 .00 -843,724 .96 206,990.35 $24r5 9
06-28-04 1 07-01-04 PURCHASED 85 .00 SHARES 06-28-04 AT A PRICE OF $72 .01 PLUS BROKER -6,122 .34 85 .00 6,122-34 000 COMMISSION OF $1 .49 ' 07-13-04 1 07-16-04 PURCHASED 59 DO SHARES 07-13-04 AT A PRICE OF $70 .31 PLUS BROKER -4,148 .56 59 .00 4,148 .58 0 .00 COMMISSION OF $029 '
07-13-04 1 07-16-04 PURCHASED 39 .00 SHARES 07-13-04 AT A PRICE OF $70 .16 PLUS BROKER -2,736-92 39 .00 2,736-92 0 .00 COMMISSION OF $0.6 8 08-06-04 1 08-11-04 PURCHASED 73 .00 SHARES 08-06-04 AT A PRICE OF $68 .8797 PLUS BROKER - -5,029 .50 73 .00 5,029 .50 0 .00 COMMISSION OF $1 .28 ' 08-31-04 1 09-03-04 PURCHASED 129 .00 SHARES 08-31-04 AT A PRICE OF $71,24 PLUS BROKER -9,190 .61 129 .00 9,190 .61 - 0 .00 COMMISSION OF $06 5 09-01-04 1 09-17-04 $0 .075A SHARE ON 56,338 SHARES EX DATE 09-01-04 . RECORD DATE 09-03-04 4 ,225 .35 0 .00 0 -00 0.00
09-09-04 1 09-14-04 PURCHASED 70 .04 SHARES 09-09-04 AT A PRICE OF $72 .00 PLUS BROKER -5,040 .35 70 .00 5,040 .35 0.00 COMMISSION OF $0 .35
10-26-04 1 10-29-04 PURCHASED 324 .00 SHARES 10-26-04 AT A PRICE OF $60 .3144 PLUS BROKER -19,547 .54 324 .00 19,547 .54 000 COMMISSION OF $5-67 11-12-04 / 11-17-04 PURCHASED 158.00 SHARES 11-12-04 ATA PRICE OF $60 .9906 PLUS BROKER -9,639 .28 158 .00 9,63928 0.0 0 COMMISSION OF $2 .77 11-24-04 1 12-02-04 PURCHASED 95-00 SHARES 11-24-04 AT A PRICE OF $64 .1794 PLUS BROKER -6,098,94 95.00 6,096.94 0 .0 0 COMMISSION OF $1 .9 0 12-01-04 1 12-17-04 $3-075 A SHARE ON 56,985 SHARES EX DATE 12-01-04, RECORD DATE 12-03-04 4 ,273. 88 0-00 0- 00 DO() 12-08-04 1 12-13-04 PURCHASED 99.00 SHARES 12-08-04 AT A PRICE OF $64-75 PLUS BROKER -6,411 .98 99-00 6,411-98 0-00 COMMISSION OF $1 .73 A Asset Id Asset Id Trade / Settle Type description Cash SharelPar Cost Gain/Los s Equities
Com mon stock
0268741 07 CUS# AMERN INTL GROUP INC CO M
12-08-64 1 12-13-04 PURCHASED 13 .00 SHARES 12-08-04 AT A PRICE OF $64.75 PLUS BROKER -841 .82 13 .00 841 .82 000 COMMISSION OF $0 .07 12-28-04 1 12-31-04 PURCHASED 11100 SHARES 12-28-D4 AT A PRICE OF $65 .69 PLUS BROKER -7,314 .34 111 00 7,314 .34 000 COMMISSION OF $0 .55
01-31 -05 1 02-03 -0 5 PURCHASED 74 .00 SHARES 01-31-05 AT A PRICE OF $66 .29 PLUS BROKER -4,905 .83 74 .00 4,905 .83 0.00 COMMISSION OF $0.3 7
01-31-05 ! 02 -03 -05 PURCHASED 68 00 SHARES 01-31 -0 5 AT A PRICE OF $66262 PLUS BROKER -4,506 .50 68.00 4,506 .50 0 .00 COMMISSION OF $0.68 '
02-23-05 1 02-28-05 SOLD 172.00 SHARES 02-23 -0 5 AT A PRICE OF $68 .65 LESS BROKER COMMISSION 11,806.55 -172 .00 -9,951 .63 1,854.92 OF $0.86 AND OTHER CHARGES OF $03 9
02-23 -05 1 02-28-05 SOLD 4,866 .00 SHARES 02-23-0 5 AT A PRICE OF $68 .65 LESS BROKER 333,954.74 -4,866 .00 -281,538 .42 52,416 .32 COMMISSION OF $85 .16 AND OTHER CHARGES OF $11 0 0
02-26-05 1 03-0 3-05 PURCHASED 110 .00 SHARES 02-28-05 AT A PRICE OF $66 .80 PLUS BROKER -7,348 .55 110.00 7,348,55 0,00 COMMISSION OF $0 .55 P
03 -02-05 1 03-18 -05 $0 .125 A SHARE ON 52,422 SHARES EX DATE 03-02-0 5, RECORD DATE 03-04-05 6,552 .75 0 00 000 0 .0 0
03-11 -05 ! 03-16 -05 PURCHASED 16 .00 SHARES 03-11 -0 5 AT A PRICE OF $64 .71 PLUS BROKER -1,035.64 1600 1 035 .64 0 .00 COMMISSION OF $0.28 .
03-11 -0 5 1 03-15-05 PURCHASED 83 .00 SHARES 03-11 -0 5 AT A PRICE OF $64 .71 PLUS BROKER -5,371 .35 83.00 5,371 .35 0,00 COMMISSION OF $0 .42
03-24-05 1 03-30-05 PURCHASED 86 .00 SHARES 03-24-05 AT A PRICE OF $55 .61 PLUS BROKER -4,783,97 6600 4 .78397 0 .00 COMMISSION OF $1 .5 1 03-24-05 1 03-30 -05 PURCHASED 18.00 SHARES 03-24-OSAT A PRICE OF $55 .61 PLUS BROKER -1,001 .07 18 .00 1,001 .07 0 .00 COMMISSION OF $0.09 .
03-31 -05 1 04-05-05 PURCHASED 119 .00 SHARES 03-31-05 AT A PRICE OF $55.41 PLUS BROKER -6 ,594 .39 11900 6,594.39 0 .00 COMMISSION OF $0 .60 CLOSING BALANCE 52,744 .00 3,052,817,60