American International (AIG) 8-K Other Events

QuickLinks -- Click here to rapidly navigate through this document

American International Group, Inc., and Subsidiaries

Exhibit 99.1

Item 6.    Selected Financial Data

The following selected financial data reflects changes described in Item 8.01 of this Current Report on Form 8-K, and should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and accompanying notes included elsewhere herein.

Years Ended December 31,
(in millions, except per share data)		2009(a)			2008(a)			2007(a)			2006(a)			2005(a)
Revenues(b):
	Premiums and other considerations	$	54,767		$	66,460		$	64,629		$	60,940		$	57,803
	Net investment income		20,373			11,633			25,302			23,595			20,284
	Net realized capital gains (losses)		(5,935	)		(49,544	)		(3,206	)		(89	)		455
	Unrealized market valuation gains (losses) on AIGFP super senior credit default swap portfolio		1,418			(28,602	)		(11,472	)		-			-
	Other income		11,500			(1,793	)		13,801			9,540			11,966
Total revenues			82,123			(1,846	)		89,054			93,986			90,508
Benefits, claims and expenses:
	Policyholder benefits and claims incurred		52,798			53,515			53,409			49,692			53,200
	Policy acquisition and other insurance expenses(c)		16,942			21,772			16,490			16,219			15,008
	Interest expense(d)		15,184			16,892			4,751			3,657			2,572
	Restructuring expenses and related asset impairment and other expenses		1,274			787			-			-			-
	Net loss on sale of divested businesses		1,271			-			-			-			-
	Other expenses(c)		9,516			10,490			8,475			6,128			7,044
Total benefits, claims and expenses			96,985			103,456			83,125			75,696			77,824
Income (loss) from continuing operations before income tax expense (benefit) and cumulative effect of change in accounting principles(b)(e)(f)			(14,862	)		(105,302	)		5,929			18,290			12,684
Income tax expense (benefit)(g)			(1,500	)		(9,256	)		521			5,394			3,484
Income (loss) from continuing operations before cumulative effect of change in accounting principles			(13,362	)		(96,046	)		5,408			12,896			9,200
Income (loss) from discontinued operations, net of tax			1,049			(4,341	)		2,080			2,254			1,755
Net income (loss)			(12,313	)		(100,387	)		7,488			15,150			10,955
Net income (loss) attributable to AIG			(10,949	)		(99,289	)		6,200			14,048			10,477
Earnings per common share attributable to AIG:
Basic
	Income (loss) from continuing operations before cumulative effect of change in accounting principles		(97.72	)		(724.75	)		32.50			91.08			67.80
	Income (loss) from discontinued operations		7.24			(32.10	)		15.48			16.39			12.89
	Cumulative effect of change in accounting principles, net of tax		-			-			-			0.26			-
	Net income (loss) attributable to AIG		(90.48	)		(756.85	)		47.98			107.73			80.69
Diluted
	Income (loss) before cumulative effect of change in accounting principles		(97.72	)		(724.75	)		32.33			90.63			67.12
	Income (loss) from discontinued operations		7.24			(32.10	)		15.40			16.29			12.74
	Cumulative effect of change in accounting principles, net of tax		-			-			-			0.26			-
	Net income (loss) attributable to AIG		(90.48	)		(756.85	)		47.73			107.18			79.86
Dividends declared per common share			-			8.40			15.40			13.00			12.60
Year-end balance sheet data:
	Total investments		601,165			636,912			829,468			767,812			665,166
	Total assets		847,585			860,418			1,048,361			979,414			851,847
	Commercial paper and other short-term debt(h)		4,739			15,718			13,114			13,028			9,208
	Long-term debt(i)		136,733			177,485			162,935			135,650			100,641
	Total AIG shareholders' equity		69,824			52,710			95,801			101,677			86,317
	Total equity	$	98,076		$	60,805		$	104,273		$	107,037		$	90,076

American International Group, Inc., and Subsidiaries

(a)

Certain reclassifications have been made to prior period amounts to conform to the current period presentation. See Note 1 to the Consolidated Financial Statements.

(b)

In 2009, 2008, 2007, 2006 and 2005, includes other-than-temporary impairment charges on investments of $7.3 billion, $45.0 billion, $4.3 billion, $892 million, and $565 million, respectively. Also 2009, 2008, 2007, 2006 and 2005 results include gains (losses) from hedging activities that did not qualify for hedge accounting treatment, including the related foreign exchange gains and losses, of $1.1 billion, $(3.6) billion, $(1.4) billion, $(1.9) billion, and $2.4 billion, respectively, in revenues and in income from continuing operations before income tax expense. These amounts result primarily from interest rate and foreign currency derivatives that are effective economic hedges of investments and borrowings.

(c)

Includes goodwill impairment charges of $81 million and $3.3 billion, respectively, in Policy acquisition and other insurance expenses and $612 million and $791 million, respectively, in Other expenses for 2009 and 2008.

(d)

In 2009 and 2008, includes $10.2 billion and $11.3 billion, respectively, of interest expense on the FRBNY Credit Facility which was comprised of $8.3 billion and $9.2 billion, respectively, of amortization on the prepaid commitment fee asset associated with the FRBNY Credit Facility and $1.9 billion and $2.1 billion, respectively, of accrued compounding interest.

(e)

Includes catastrophe-related losses of $53 million in 2009, $1.8 billion in 2008, $276 million in 2007 and $3.28 billion in 2005.

(f)

Reduced by fourth quarter charges of $2.3 billion in 2009 and $1.8 billion in 2005 related to the annual review of General Insurance loss and loss adjustment reserves. In 2006 and 2005, includes charges related to changes in estimates for asbestos and environmental reserves of $198 million and $873 million, respectively.

(g)

In 2008, includes a $20.1 billion valuation allowance to reduce AIG's deferred tax asset to an amount AIG believes is more likely than not to be realized, and a $4.8 billion deferred tax expense attributable to the potential sale of foreign businesses. In 2009, includes a $3.1 billion valuation allowance to reduce AIG's deferred tax asset to an amount AIG believes is more likely than not to be realized.

(h)

Includes borrowings of $2.7 billion and $2.0 billion for AIGFP (through Curzon Funding LLC, AIGFP's asset-backed commercial paper conduit) and AIG Funding, respectively, under the CPFF at December 31, 2009 and $6.8 billion, $6.6 billion and $1.7 billion for AIGFP (through Curzon Funding LLC), AIG Funding and ILFC, respectively, at December 31, 2008.

(i)

Includes that portion of long-term debt maturing in less than one year. See Note 14 to the Consolidated Financial Statements.

    See Note 1(y) to the Consolidated Financial Statements for effects of adopting new accounting standards.

2

QuickLinks

Exhibit 99.1
Item 6. Selected Financial Data