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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.
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Years Ended December 31,
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(in millions, except per share data)
| | 2009(a)
| | 2008(a)
| | 2007(a)
| | 2006(a)
| | 2005(a)
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Revenues(b): | | | | | | | | | | | | | | | | |
| | Premiums and other considerations | | $ | 51,239 | | $ | 63,137 | | $ | 61,581 | | $ | 57,861 | | $ | 54,538 | |
| | Net investment income | | | 18,987 | | | 10,453 | | | 23,933 | | | 22,303 | | | 19,020 | |
| | Net realized capital gains (losses) | | | (5,210 | ) | | (46,794 | ) | | (3,248 | ) | | (324 | ) | | 245 | |
| | Unrealized market valuation gains (losses) on Capital Markets super senior credit default swap portfolio | | | 1,418 | | | (28,602 | ) | | (11,472 | ) | | - | | | - | |
| | Other income | | | 9,214 | | | (4,769 | ) | | 11,013 | | | 6,580 | | | 9,239 | |
Total revenues | | | 75,648 | | | (6,575 | ) | | 81,807 | | | 86,420 | | | 83,042 | |
Benefits, claims and expenses: | | | | | | | | | | | | | | | | |
| | Policyholder benefits and claims incurred | | | 50,015 | | | 51,036 | | | 50,928 | | | 47,220 | | | 50,622 | |
| | Policy acquisition and other insurance expenses(c) | | | 15,864 | | | 20,833 | | | 15,644 | | | 15,404 | | | 14,226 | |
| | Interest expense(d) | | | 13,701 | | | 15,379 | | | 3,483 | | | 2,476 | | | 1,678 | |
| | Restructuring expenses and related asset impairment and other expenses | | | 1,149 | | | 771 | | | - | | | - | | | - | |
| | Net loss on sale of divested businesses | | | 1,271 | | | - | | | - | | | - | | | - | |
| | Other expenses(c) | | | 7,418 | | | 8,101 | | | 7,018 | | | 5,011 | | | 5,799 | |
Total benefits, claims and expenses | | | 89,418 | | | 96,120 | | | 77,073 | | | 70,111 | | | 72,325 | |
Income (loss) from continuing operations before income tax expense (benefit) and cumulative effect of change in accounting principles(b)(e)(f) | | | (13,770 | ) | | (102,695 | ) | | 4,734 | | | 16,309 | | | 10,717 | |
Income tax expense (benefit)(g) | | | (1,489 | ) | | (9,683 | ) | | 125 | | | 4,708 | | | 2,799 | |
Income (loss) from continuing operations before cumulative effect of change in accounting principles | | | (12,281 | ) | | (93,012 | ) | | 4,609 | | | 11,601 | | | 7,918 | |
Income (loss) from discontinued operations, net of tax | | | (32 | ) | | (7,375 | ) | | 2,879 | | | 3,549 | | | 3,037 | |
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 | |
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Earnings per common share attributable to AIG: | | | | | | | | | | | | | | | | |
Basic | | | | | | | | | | | | | | | | |
| | Income (loss) from continuing operations before cumulative effect of change in accounting principles | | | (89.72 | ) | | (701.73 | ) | | 26.32 | | | 81.16 | | | 57.93 | |
| | Income (loss) from discontinued operations | | | (0.76 | ) | | (55.12 | ) | | 21.66 | | | 26.31 | | | 22.76 | |
| | 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 | | | (89.72 | ) | | (701.73 | ) | | 26.18 | | | 80.76 | | | 57.36 | |
| | Income (loss) from discontinued operations | | | (0.76 | ) | | (55.12 | ) | | 21.55 | | | 26.16 | | | 22.50 | |
| | 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 | |
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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 | |
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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 $6.7 billion, $41.9 billion, $4.2 billion, $885 million, and $557 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 $1.2 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 $450 million, respectively, in Other expenses for 2009 and 2008.
- (d)
- In 2009 and 2008, includes $9.8 billion and $11.0 billion, respectively, of interest expense on the FRBNY Credit Facility which was comprised of $8.0 billion and $9.1 billion, respectively, of amortization on the prepaid commitment fee asset associated with the FRBNY Credit Facility and $1.7 billion and $1.9 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 $19.9 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 $3.7 billion deferred tax expense attributable to the potential sales of foreign businesses. In 2009, includes a $2.9 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, for AIGFP asset-backed commercial paper conduit) and AIG Funding, Inc. (AIG Funding) respectively, under the CPFF at December 31, 2009 and $6.8 billion, $6.6 billion and $1.7 billion (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.
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