American International (AIG) 10-K2006 FY Annual report

Filed: 1 Mar 07, 12:00am

Content analysis

Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability	8th grade Bad

New words: accessed, ACE, adjudicate, AEP, Aflac, AICPA, AIGGIC, AIGGIG, aimed, Alliance, Allstate, andIn, appeal, appealing, appended, argument, ascertain, auditor, Australian, automate, backdating, Bahrain, bankrupt, BBB, ber, binding, blended, Bornhuetter, brand, breadth, British, Brown, calibrated, capability, capable, CCO, ceased, Chubb, CLO, CNA, collaborative, Columbia, Complaintalso, Complaintare, Complainthave, concept, Concord, conglomerate, constrain, context, contractholder, convexity, County, CRC, CRM, CRO, CSFTC, cycle, Decem, declaratory, defense, demographic, denote, deployed, derecognition, deregulation, descending, deter, diagnostic, disadvantage, Disaster, discharging, disrupt, disruption, dissemination, dominated, Dr, draft, DRC, driver, drop, dropped, elaborate, elapsed, eleven, embody, encourage, ensuing, entirety, ERM, escrow, escrowed, exempt, exit, exited, exiting, explicitly, explore, extract, factual, faster, FEC, Ferguson, flexibility, flood, footnote, formulating, fourteen, frame, FRC, fundamental, geopolitical, GLBA, gold, Graph, Guard, Guide, Gunderson, Hochberg, HOLA, homogeneity, illegal, Indonesia, inducement, inGunderson, innovative, insider, insight, insulated, interact, interaction, intermediate, interruption, interval, intrinsic, inverted, Islamic, jeopardize, Kelly, lattice, Lincoln, longevity, Los, lost, Louisiana, manipulated, mechanism, MetLife, metric, mid, MIP, misclassified, misconduct, mismanagement, mobility, MRM, negligence, nineteen, numerical, obligor, Ocean, Ohio, opportu, optimal, optimization, ORM, outweigh, overhead, oversee, overseeing, overview, parallel, passive, passively, Paul, peer, people, population, Postemployment, Pound, precisely, precursor, pretrial, prolong, prolonged, promotion, promulgated, purported, purportedly, quantity, question, realigned, Realistic, reconsideration, redetermination, redevelopment, reevaluated, reevaluation, reinstituting, requisite, respon, resume, Roebuck, role, rose, safety, scale, SDValuation, secondary, Sherman, Shortly, sibility, sidecar, slower, smoothing, softening, solicitation, SPE, spending, spinning, St, storage, stored, STRIP, subset, substantive, Subtracting, suing, Sun, sunset, surety, tailored, Takaful, tapping, team, Tenancy, thecommercial, theemployee, TheGunderson, threat, tied, track, tracked, transport, transportation, travel, treble, TRIA, tropical, turnover, tying, undergoing, underserved, undue, unemployment, unexpected, unexpectedly, unforeseen, unlocking, unrated, unregulated, unwanted, unwound, upgrading, usurping, vacate, vastly, vi, vii, Virgin, voiding, vulnerable, warehousing, wind, Windstorm, worst, XL, zone

Removed: accruing, acting, adding, administered, aidinoff, AIGTG, ample, apparent, Assignment, attributed, auditing, begun, bernard, Boiler, broadened, broadening, carla, Certificate, Chinese, clock, cognizant, cohen, collect, construct, construed, convert, cooperative, counter, creating, crucial, deal, deem, defer, deficit, defining, deliver, duly, edmund, Electric, ellen, entry, equally, expiring, feldstein, foreclosure, forma, frank, furnish, futter, Hampshire, hereof, hereto, herewith, holbrooke, impair, Incorporation, Inspection, intensive, intraday, IPC, ISDA, ISO, Israel, jay, Jr, lawful, lawfully, literally, marking, marshall, Master, maximize, merchant, merger, myriad, noncontrolling, nonemployee, nonoperating, nonrated, opposed, optionee, PICC, pollution, power, promising, reflective, reform, reimburse, remarketer, repurchased, Restoration, resubstitution, richard, Rodney, Scott, securitization, servicing, signature, statistically, stead, Steam, strict, substitution, succession, supervised, swapped, taxation, technique, terminate, thereunto, tight, tse, uncovered, undersigned, upturn, user, valid, view, virtue, Washington, Western, william, wintrob, WTC, zarb

Search this filing

Filing tables

Export all tables to Excel

Filing exhibits

Related press release

AIG similar filings

Filing view

Default size S M L
Default font Times Arial

External links

Share this filing

American International Group, Inc. and Subsidiaries

Computation of Ratios of Earnings to Fixed Charges

Exhibit 12


Years Ended December 31,
(in millions, except ratios)		2006			2005			2004			2003			2002

Income before income taxes, minority interest and cumulative effect of accounting changes		$	21,687		$	15,213		$	14,845		$	11,907		$	7,808
Less — Equity income of less than 50% owned companies			188			(129	)		164			146			168
Add — Dividends from less than 50% owned companies			28			146			22			13			13

			21,527			15,488			14,703			11,774			7,653
Add — Fixed charges			9,062			7,663			6,049			5,762			4,893
Less — Capitalized interest			59			64			59			52			61

Income before income taxes, minority interest, cumulative effect of accounting changes and fixed charges		$	30,530		$	23,087		$	20,693		$	17,484		$	12,485

Fixed charges:
	Interest costs	$	8,843		$	7,464		$	5,860		$	5,588		$	4,725
	Rental expense*		219			199			189			174			168

Total fixed charges		$	9,062		$	7,663		$	6,049		$	5,762		$	4,893

Ratio of earnings to fixed charges			3.37			3.01			3.42			3.03			2.55

Secondary Ratio

Interest credited to GIC and GIA policy and contract holders		$	(5,128	)	$	(4,760	)	$	(3,674	)	$	(3,578	)	$	(2,702	)
Total fixed charges excluding interest credited to GIC and GIA policy and contract holders		$	3,934		$	2,903		$	2,375		$	2,184		$	2,191

Secondary ratio of earnings to fixed charges			6.46			6.31			7.17			6.37			4.47

* The proportion deemed representative of the interest factor.

The secondary ratio is disclosed for the convenience of fixed income investors and the rating agencies that serve them and is more comparable to the ratios disclosed by all issuers of fixed income securities. The secondary ratio removes interest credited to guaranteed investment contract (GIC) policyholders and guaranteed investment agreement (GIA) contractholders. Such interest expenses are also removed from earnings used in this calculation. GICs and GIAs are entered into by AIG’s insurance subsidiaries, principally SunAmerica Life Insurance Company and AIG Financial Products Corp. and its subsidiaries, respectively. The proceeds from GICs and GIAs are invested in a diversified portfolio of securities, primarily investment grade bonds. The assets acquired yield rates greater than the rates on the related policyholders obligation or contract, with the intent of earning a profit from the spread.

188 AIG 2006 Form 10-K