Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the Registration
Statements on Form 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, No. 333-52938, 333-39976, 333-50198,
333-45828, 333-68640, 333-69546 and 333-72876) of American International Group,
Inc. of our report dated February 6, 2002, relating to the consolidated
financial statements and financial statement schedules, which appears in this
Form 10-K.
PricewaterhouseCoopers LLP
New York, New York
March 29, 2002
II-13
Schedule I
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
SUMMARY OF INVESTMENTS--
OTHER THAN INVESTMENTS IN RELATED PARTIES
As of December 31, 2001
(in millions)
- -----------------------------------------------------------------------------------------------------------------------
Amount at
which shown
in the
Cost* Value Balance Sheet
=======================================================================================================================
Fixed maturities:
Bonds:
United States Government and government agencies
and authorities $ 3,750 $ 3,843 $ 3,843
States, municipalities and political subdivisions 34,203 34,821 34,821
Foreign governments 29,047 30,971 30,971
Public utilities 12,743 13,071 13,071
All other corporate 117,212 117,910 117,910
- -----------------------------------------------------------------------------------------------------------------------
Total bonds 196,955 200,616 200,616
- -----------------------------------------------------------------------------------------------------------------------
Total fixed maturities 196,955 200,616 200,616
- -----------------------------------------------------------------------------------------------------------------------
Equity securities:
Common stocks:
Public utilities 181 168 168
Banks, trust and insurance companies 666 651 651
Industrial, miscellaneous and all other 6,116 5,369 5,369
- -----------------------------------------------------------------------------------------------------------------------
Total common stocks 6,963 6,188 6,188
Non-redeemable preferred stocks 1,840 1,749 1,749
- -----------------------------------------------------------------------------------------------------------------------
Total equity securities 8,803 7,937 7,937
- -----------------------------------------------------------------------------------------------------------------------
Mortgage loans on real estate, policy and collateral loans 18,092 18,092 18,092
Financial services assets:
Flight equipment primarily under operating leases, net of
accumulated depreciation 22,710 -- 22,710
Securities available for sale, at market value 17,793 17,801 17,801
Trading securities, at market value -- 5,733 5,733
Spot commodities, at market value -- 352 352
Unrealized gain on interest rate and currency swaps,
options and forward transactions -- 11,493 11,493
Trading assets -- 6,234 6,234
Securities purchased under agreements to resell, at contract value 21,681 -- 21,681
Other invested assets 22,704 -- 22,704
Finance receivables, net of allowance 13,955 -- 13,955
Short-term investments, at cost (approximates market value) 7,392 -- 7,392
- -----------------------------------------------------------------------------------------------------------------------
Total investments -- -- $356,700
=======================================================================================================================
* 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
Schedule II
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
CONDENSED FINANCIAL INFORMATION OF REGISTRANT
BALANCE SHEET-- PARENT COMPANY ONLY
(in millions)
December 31, 2001 2000
==========================================================================================================
ASSETS:
Cash $ 1 $ 1
Short-term investments 7 2
Invested assets 1,398 721
Carrying value of subsidiaries and partially-owned companies, at equity 52,117 47,532
Premiums and insurance balances receivable-- net 145 155
Other assets 2,250 2,140
- ----------------------------------------------------------------------------------------------------------
TOTAL ASSETS 55,918 50,551
- ----------------------------------------------------------------------------------------------------------
LIABILITIES:
Insurance balances payable 320 334
Due to affiliates-- net 894 930
Medium term notes payable 542 582
Term notes payable 433 433
Zero coupon notes 1,144 127
Italian Lire bonds -- 159
Other liabilities 435 547
- ----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 3,768 3,112
- ----------------------------------------------------------------------------------------------------------
CAPITAL FUNDS:
Common stock 6,876 6,914
Additional paid-in capital 669 2,830
Retained earnings 47,218 42,598
Accumulated other comprehensive income (loss) (1,725) (2,440)
Treasury stock (888) (2,463)
- ----------------------------------------------------------------------------------------------------------
TOTAL CAPITAL FUNDS 52,150 47,439
- ----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND CAPITAL FUNDS $ 55,918 $ 50,551
==========================================================================================================
STATEMENT OF INCOME-- PARENT COMPANY ONLY
(in millions)
- ------------------------------------------------------------------------------------------------------------------
Years Ended December 31, 2001 2000 1999
==================================================================================================================
Agency loss $ (4) $ (11) $ (13)
Financial services income 360 280 246
Asset management income (loss) 12 (5) 5
Dividend income from consolidated subsidiaries:
Cash 2,194 1,514 1,049
Other 42 -- 30
Dividend income from partially-owned companies 2 -- 7
Equity in undistributed net income of consolidated subsidiaries
and partially-owned companies 3,340 5,233 5,311
Other income (deductions)-- net (206) (87) (162)
- ------------------------------------------------------------------------------------------------------------------
Income before income taxes and cumulative effect of accounting changes 5,740 6,924 6,473
Income taxes 352 285 287
- ------------------------------------------------------------------------------------------------------------------
Income before cumulative effect of accounting changes 5,388 6,639 6,186
- ------------------------------------------------------------------------------------------------------------------
Cumulative effect of accounting changes, net of tax (25) -- --
- ------------------------------------------------------------------------------------------------------------------
Net income $ 5,363 $ 6,639 $ 6,186
==================================================================================================================
See Accompanying Notes to Financial Statements.
S-2
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, 2001 2000 1999
========================================================================================================================
Cash flows from operating activities:
Net income $5,363 $6,639 $6,186
- ------------------------------------------------------------------------------------------------------------------------
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 (3,340) (5,233) (5,311)
Change in premiums and insurance balances receivable and payable-- net (4) 7 (1)
Change in cumulative translation adjustments 21 85 (99)
Other-- net (21) (140) (144)
- ------------------------------------------------------------------------------------------------------------------------
Total adjustments (3,344) (5,281) (5,555)
- ------------------------------------------------------------------------------------------------------------------------
Net cash provided by operating activities 2,019 1,358 631
- ------------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
Purchase of investments (535) (131) (44)
Sale of investments -- 1 62
Change in short-term investments (5) (1) 9
Change in collateral and guaranteed loans 10 10 18
Contributions to subsidiaries and investments in partially-owned companies (884) (687) (415)
Other-- net (75) (26) (39)
- ------------------------------------------------------------------------------------------------------------------------
Net cash used in investing activities (1,489) (834) (409)
- ------------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
Change in medium term notes (40) 101 14
Change in term notes -- 1 (556)
Proceeds from issuance of zero coupon notes 1,000 -- --
Redemption of Italian Lire bonds (159) -- --
Proceeds from common stock issued 233 144 244
Change in loans payable (174) 477 217
Cash dividends to shareholders (383) (335) (303)
Acquisition of treasury stock (978) (947) (275)
Proceeds from redemption of Premium Equity Redemption Cumulative
Security Units -- -- 431
Other-- net (29) 33 7
- ------------------------------------------------------------------------------------------------------------------------
Net cash used in financing activities (530) (526) (221)
- ------------------------------------------------------------------------------------------------------------------------
Change in cash -- (2) 1
Cash at beginning of year 1 3 2
- ------------------------------------------------------------------------------------------------------------------------
Cash at end of year $ 1 $ 1 $ 3
========================================================================================================================
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 2000 and 1999 financial
statements to conform to their 2001 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
Schedule III
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
SUPPLEMENTARY INSURANCE INFORMATION
As of December 31, 2001, 2000 and 1999 and for the years then ended
(in millions)
- ----------------------------------------------------------------------------------------------------------------------------
Reserves for
Losses and
Deferred Loss Reserve Policy
Policy Expenses, for and Net
Acquisition Future Policy Unearned Contract Premium Investment
Segment Costs Benefits(a) Premiums Claims(b) Revenue Income
============================================================================================================================
2001
General insurance $ 2,651 $ 44,792 $13,148 $ -- $19,365 $ 2,893
Life insurance 14,792 64,998 -- 1,473 19,243 11,735
- ----------------------------------------------------------------------------------------------------------------------------
$ 17,443 $109,790 $13,148 $ 1,473 $38,608 $14,628
============================================================================================================================
2000
General insurance $ 2,438 $ 40,613 $12,510 $ -- $17,407 $ 2,701
Life insurance 14,209 51,532 -- 1,414 17,173 10,664
- ----------------------------------------------------------------------------------------------------------------------------
$ 16,647 $ 92,145 $12,510 $ 1,414 $34,580 $13,365
============================================================================================================================
1999
General insurance $ 2,132 $ 38,252 $11,450 $ -- $15,544 $ 2,517
Life insurance 13,642 47,759 -- 1,364 15,480 9,505
- ----------------------------------------------------------------------------------------------------------------------------
$ 15,774 $ 86,011 $11,450 $ 1,364 $31,024 $12,022
============================================================================================================================
(in millions)
- -------------------------------------------------------------------------------------------
Losses and Amortization
Loss of Deferred
Expenses Policy Other Net
Incurred, Acquisition Operating Premiums
Segment Benefits Costs(c) Expenses Written
===========================================================================================
2001
General insurance $15,406 $2,016 $ 1,855 $20,101
Life insurance 19,761 1,591(d) 3,966 --
- -------------------------------------------------------------------------------------------
$35,167 $3,607 $ 5,821 $20,101
===========================================================================================
2000
General insurance $13,104 $1,708 $ 1,810 $17,526
Life insurance 17,788 $1,544(d) $ 3,521 --
- -------------------------------------------------------------------------------------------
$30,892 $3,252 $ 5,331 $17,526
===========================================================================================
1999
General insurance $11,738 $1,528 $ 1,609 $16,224
Life insurance 15,862 $1,506(d) $ 3,259 --
- -------------------------------------------------------------------------------------------
$27,600 $3,034 $ 4,868 $16,224
===========================================================================================
(a) Reserves for losses and loss expenses with respect to the general insurance
operations are net of discounts of $1.42 billion, $1.29 billion and $1.08
billion for 2001, 2000 and 1999, 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.
(d) Excludes adjustments as a result of changes in the net unrealized gains or
losses on debt and equity securities available for sale. Such adjustments
were included with the change in net unrealized gains/losses on debt and
equity securities available for sale that were credited or charged directly
to comprehensive income.
S-4
Schedule IV
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
REINSURANCE
As of December 31, 2001, 2000 and 1999 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
=================================================================================================
2001
LIFE INSURANCE IN-FORCE $1,226,339 $238,644 $2,162 $989,857 0.2%
=================================================================================================
PREMIUMS:
GENERAL INSURANCE $ 25,279 $ 9,539 $4,361 $ 20,101 21.7%
LIFE INSURANCE 20,100 915 58 19,243* 0.3
- -------------------------------------------------------------------------------------------------
TOTAL PREMIUMS $ 45,379 $ 10,454 $4,419 $ 39,344 11.2%
=================================================================================================
2000
Life insurance in-force $ 969,919 $185,705 $1,973 $786,187 0.3%
=================================================================================================
Premiums:
General insurance $ 20,116 $ 7,524 $4,934 $ 17,526 28.1%
Life insurance 17,860 762 75 17,173* 0.4
- -------------------------------------------------------------------------------------------------
Total premiums $ 37,976 $ 8,286 $5,009 $ 34,699 14.4%
=================================================================================================
1999
Life insurance in-force $ 947,524 $163,982 $3,409 $786,951 0.4%
=================================================================================================
Premiums:
General insurance $ 18,660 $ 6,345 $3,909 $ 16,224 24.1%
Life insurance 16,051 876 305 15,480* 2.0
- -------------------------------------------------------------------------------------------------
Total premiums $ 34,711 $ 7,221 $4,214 $ 31,704 13.3%
=================================================================================================
* Includes accident and health premiums of $3.18 billion, $2.58 billion and
$2.25 billion in 2001, 2000 and 1999, respectively.
S-5