1
Exhibit 23.1
Consent of Independent Accountants
We hereby consent to the incorporation by reference in the Registration
Statements on Forms S-3 and S-8 (No. 2-38768, No. 2-44043, No. 2-45346, No.
2-51498, No. 2-59317, No. 2-61858, No. 2-62760, No. 2-64336, No. 2-67600, No.
2-72058, No. 2-75874, No. 2-75875, No. 2-78291, No. 2-87005, No. 2-82989, No.
2-90756, No. 2-91945, No. 2-95589, No. 2-97439, No. 33-8495, No. 33-13874, No.
33-18073, No. 33-25291, No. 33-41643, No. 33-48996, No. 33-57250, No. 33-60327,
No. 33-60827, No. 33-62821, No. 333-21365, No. 333-48639, No. 333-58095, No.
333-70069, No. 333-74187, No. 333-83813, No. 333-31024, No. 333-31346, No.
333-39976, No. 333-45828, No. 333-50198 and No. 333-52938) of American
International Group, Inc. of our report dated February 7, 2001, relating to the
consolidated financial statements and financial statement schedules, which
appears in this Form 10-K. We also consent to the reference to our firm under
the headings "Financial Statements" or "Experts" included in the Prospectuses.
PricewaterhouseCoopers LLP
New York, New York
March 30, 2001
II-14
2
Schedule I
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
SUMMARY OF INVESTMENTS--OTHER THAN INVESTMENTS IN RELATED PARTIES
As of December 31, 2000
(in millions)
- ------------------------------------------------------------------------------------------------------------------------------------
Amount at
which shown
in the
Cost* Value Balance Sheet
====================================================================================================================================
Fixed maturities:
Bonds:
United States Government and government agencies
and authorities $ 1,861 $ 1,944 $ 1,941
States, municipalities and political subdivisions 21,592 22,435 21,918
Foreign governments 18,565 19,254 19,254
Public utilities 6,458 6,710 6,710
All other corporate 53,356 52,187 52,187
- ------------------------------------------------------------------------------------------------------------------------------------
Total bonds 101,832 102,530 102,010
- ------------------------------------------------------------------------------------------------------------------------------------
Total fixed maturities 101,832 102,530 102,010
- ------------------------------------------------------------------------------------------------------------------------------------
Equity securities:
Common stocks:
Public utilities 138 150 150
Banks, trust and insurance companies 664 735 735
Industrial, miscellaneous and all other 5,569 5,240 5,240
- ------------------------------------------------------------------------------------------------------------------------------------
Total common stocks 6,371 6,125 6,125
Non-redeemable preferred stocks 1,166 1,056 1,056
- ------------------------------------------------------------------------------------------------------------------------------------
Total equity securities 7,537 7,181 7,181
- ------------------------------------------------------------------------------------------------------------------------------------
Mortgage loans on real estate, policy and collateral loans 12,243 12,243 12,243
Financial services assets:
Flight equipment primarily under operating leases, net of
accumulated depreciation 19,325 -- 19,325
Securities available for sale, at market value 14,636 14,669 14,669
Trading securities, at market value -- 7,347 7,347
Spot commodities, at market value -- 363 363
Unrealized gain on interest rate and currency swaps,
options and forward transactions -- 10,235 10,235
Trading assets 7,045 -- 7,045
Securities purchased under agreements to resell, at contract value 14,991 -- 14,991
Other invested assets 13,394 -- 13,394
Short-term investments, at cost (approximates market value) 5,831 -- 5,831
- ------------------------------------------------------------------------------------------------------------------------------------
Total investments $196,834 -- $214,634
====================================================================================================================================
* Original cost of equity securities and, as to fixed maturities, original
cost reduced by repayments and adjusted for amortization of premiums or
accrual of discounts.
S-1
3
Schedule II
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
BALANCE SHEET-- PARENT COMPANY ONLY
(in millions)
- --------------------------------------------------------------------------------------------------------------------
December 31, 2000 1999
====================================================================================================================
Assets:
Cash $ 1 $ 3
Short-term investments 2 1
Invested assets 721 760
Carrying value of subsidiaries and partially-owned companies, at equity 39,712 34,603
Premiums and insurance balances receivable-net 155 113
Other assets 2,140 377
- --------------------------------------------------------------------------------------------------------------------
Total assets 42,731 35,857
- --------------------------------------------------------------------------------------------------------------------
Liabilities:
Insurance balances payable 334 285
Due to affiliates-net 930 861
Medium term notes payable 582 481
Term notes payable 433 432
Zero coupon notes 127 114
Italian Lire bonds 159 159
Other liabilities 547 219
- --------------------------------------------------------------------------------------------------------------------
Total liabilities 3,112 2,551
- --------------------------------------------------------------------------------------------------------------------
Capital funds:
Common stock 6,189 4,152
Additional paid-in capital 2,668 2,080
Retained earnings 34,304 31,040
Accumulated other comprehensive income (2,136) (2,103)
Treasury stock (1,406) (1,863)
- --------------------------------------------------------------------------------------------------------------------
Total capital funds 39,619 33,306
- --------------------------------------------------------------------------------------------------------------------
Total liabilities and capital funds $42,731 $35,857
====================================================================================================================
STATEMENT OF INCOME--PARENT COMPANY ONLY
(in millions)
- -----------------------------------------------------------------------------------------------------------------------------------
Years Ended December 31, 2000 1999 1998
===================================================================================================================================
Agency loss $ (11) $ (13) $ (6)
Financial services income 280 246 263
Asset management income (loss) (5) 5 --
Dividend income from consolidated subsidiaries:
Cash 1,514 1,049 856
Other -- 30 --
Dividend income from partially-owned companies -- 7 14
Equity in undistributed net income of consolidated subsidiaries
and partially-owned companies 4,230 4,180 3,737
Other income (deductions)-net (87) (162) (210)
- -----------------------------------------------------------------------------------------------------------------------------------
Income before income taxes 5,921 5,342 4,654
Income taxes 285 287 372
- -----------------------------------------------------------------------------------------------------------------------------------
Net income $5,636 $ 5,055 $ 4,282
===================================================================================================================================
S-2
4
Schedule II
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT--(continued)
STATEMENT OF CASH FLOWS--PARENT COMPANY ONLY
(in millions)
- --------------------------------------------------------------------------------------------------------------------------
Years Ended December 31, 2000 1999 1998
==========================================================================================================================
Cash flows from operating activities:
Net income $ 5,636 $ 5,055 $ 4,282
- --------------------------------------------------------------------------------------------------------------------------
Adjustments to reconcile net income to net cash provided
by operating activities:
Non-cash revenues, expenses, gains and losses included in income:
Equity in undistributed net income of consolidated subsidiaries and
partially-owned companies (4,230) (4,180) (3,737)
Change in premiums and insurance balances receivable and payable-net 7 (1) 30
Change in cumulative translation adjustments 85 (99) (18)
Other-net (140) (144) 178
- --------------------------------------------------------------------------------------------------------------------------
Total adjustments (4,278) (4,424) (3,547)
- --------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 1,358 631 735
- --------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Purchase of investments (131) (44) (154)
Sale of investments 1 62 --
Change in short-term investments (1) 9 (9)
Change in collateral and guaranteed loans 10 18 (25)
Contributions to subsidiaries and investments in partially-owned companies (687) (415) (444)
Other-net (26) (39) (36)
- --------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (834) (409) (668)
- --------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Change in medium term notes 101 14 (29)
Change in term notes 1 (556) 100
Proceeds from common stock issued 144 244 40
Change in loans payable 477 217 218
Cash dividends to shareholders (335) (303) (324)
Acquisition of treasury stock (947) (275) (81)
Proceeds from redemption of Premium Equity Redemption Cumulative
Security Units -- 431 --
Other-net 33 7 7
- --------------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities (526) (221) (69)
- --------------------------------------------------------------------------------------------------------------------------
Change in cash (2) 1 (2)
Cash at beginning of year 3 2 4
- --------------------------------------------------------------------------------------------------------------------------
Cash at end of year $ 1 $ 3 $ 2
==========================================================================================================================
NOTES TO FINANCIAL STATEMENTS--PARENT COMPANY ONLY
(1) Agency operations conducted in New York through the North American
Division of AIU are included in the financial statements of the parent
company.
(2) Certain accounts have been reclassified in the 1999 and 1998 financial
statements to conform to their 2000 presentation.
(3) "Equity in undistributed net income of consolidated subsidiaries and
partially-owned companies" in the accompanying Statement of Income--Parent
Company Only--includes equity in income of the minority-owned insurance
operations.
(4) See also Notes to Consolidated Financial Statements.
S-3
5
Schedule III
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
SUPPLEMENTARY INSURANCE INFORMATION
As of December 31, 2000, 1999 and 1998 and for the years then ended
(in millions)
- ----------------------------------------------------------------------------------------------------------------------
Reserves for
Losses and Losses and
Deferred Loss Reserve Policy Loss
Policy Expenses, for and Net Expenses
Acquisition Future Policy Unearned Contract Premium Investment Incurred,
Segment Costs Benefits(a) Premiums Claims(b) Revenue Income Benefits
======================================================================================================================
2000
General insurance $2,438 $40,613 $12,510 $ -- $17,407 $2,701 $13,104
Life insurance 7,751 38,165 -- 1,000 13,610 7,123 13,615
- ----------------------------------------------------------------------------------------------------------------------
$10,189 $78,778 $12,510 $1,000 $31,017 $9,824 $26,719
======================================================================================================================
1999
General insurance $2,132 $38,252 $11,450 $ -- $15,544 $2,517 $11,738
Life insurance 7,492 34,608 -- 942 11,942 6,206 11,870
- ----------------------------------------------------------------------------------------------------------------------
$9,624 $72,860 $11,450 $ 942 $27,486 $8,723 $23,608
======================================================================================================================
1998
General insurance $1,852 $38,310 $10,009 $ -- $14,098 $2,192 $10,657
Life insurance 6,229 29,571 -- 1,135 10,293 5,201 10,242
- ----------------------------------------------------------------------------------------------------------------------
$8,081 $67,881 $10,009 $1,135 $24,391 $7,393 $20,899
======================================================================================================================
(in millions)
- -----------------------------------------------------------------
Amortization
of Deferred
Policy Other Net
Acquisition Operating Premiums
Segment Costs(c) Expenses Written
=================================================================
2000
General insurance $1,708 $1,810 $17,526
Life insurance 958 2,611 --
- -----------------------------------------------------------------
$2,666 $4,421 $17,526
=================================================================
1999
General insurance $1,528 $1,609 $16,224
Life insurance 891 2,381 --
- -----------------------------------------------------------------
$2,419 $3,990 $16,224
=================================================================
1998
General insurance $1,358 $1,552 $14,586
Life insurance 759 2,046 --
- -----------------------------------------------------------------
$2,117 $3,598 $14,586
=================================================================
(a) Reserves for losses and loss expenses with respect to the general
insurance operations are net of discounts of $1.29 billion, $1.08 billion
and $551 million for 2000, 1999 and 1998, respectively.
(b) Reflected in insurance balances payable on the accompanying balance sheet.
(c) Amounts shown for general insurance segment exclude amounts deferred and
amortized in the same period.
S-4
6
Schedule IV
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES REINSURANCE
As of December 31, 2000, 1999 and 1998 and for the years then ended
(dollars in millions)
- -----------------------------------------------------------------------------------------------------------------------------------
Percent of
Ceded Assumed Amount
to Other from Other Net Assumed
Gross Amount Companies Companies Amount to Net
===================================================================================================================================
2000
Life insurance in-force $581,937 $ 56,927 $ 1,122 $526,132 0.2%
===================================================================================================================================
Premiums:
General insurance $ 20,116 $ 7,524 $ 4,934 $ 17,526 28.1%
Life insurance 13,890 318 38 13,610(b) 0.3
- -----------------------------------------------------------------------------------------------------------------------------------
Total premiums $ 34,006 $ 7,842 $ 4,972 $ 31,136 16.0%
===================================================================================================================================
1999
Life insurance in-force $583,670 $ 69,535 $ 1,289 $515,424 0.3%
===================================================================================================================================
Premiums:
General insurance $ 18,660 $ 6,345 $ 3,909(a) $ 16,224 24.1%
Life insurance 12,220 310 32 11,942(b) 0.3
- -----------------------------------------------------------------------------------------------------------------------------------
Total premiums $ 30,880 $ 6,655 $ 3,941 $ 28,166 14.0%
===================================================================================================================================
1998
Life insurance in-force $502,241 $ 62,768 $ 1,408 $440,881 0.3%
===================================================================================================================================
Premiums:
General insurance $ 17,931 $ 6,098 $ 2,753(a) $ 14,586 18.9%
Life insurance 10,550 285 28 10,293(b) 0.3
- -----------------------------------------------------------------------------------------------------------------------------------
Total premiums $ 28,481 $ 6,383 $ 2,781 $ 24,879 11.2%
===================================================================================================================================
(a) The increase results from the consolidation of Transatlantic, which is a
reinsurance company.
(b) Includes accident and health premiums of $2.58 billion, $2.25 billion and
$1.88 billion in 2000, 1999 and 1998, respectively.
S-5