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Exhibit 11
Computation of Earnings Per Share
American International Group, Inc. and Subsidiaries
(in thousands, except per share amounts)
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Years Ended December 31, 1997(b) 1996(a) 1995(a) 1994(a) 1993(a)
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Numerator:
Income before cumulative effect of accounting changes $ 3,332,335 $ 2,897,257 $ 2,510,383 $ 2,175,515 $ 1,918,078
Cumulative effect of accounting changes, net of tax
Minority-owned insurance operations -- -- -- -- 20,695
Preferred stock dividend -- -- -- -- (1,043)
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Net income applicable to common stock $ 3,332,335 $ 2,897,257 $ 2,510,383 $ 2,175,515 $ 1,937,730
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Denominator:
Average outstanding shares used in the computation of
per share earnings:
Common stock issued 759,124 759,126 759,128 759,130 759,134
Common stock in treasury (57,194) (52,558) (48,095) (46,811) (44,846)
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Average outstanding shares-- basic 701,930 706,568 711,033 712,319 714,288
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Stock options (treasury stock method) 3,025 2,716 2,452 2,074 2,291
Stock purchase plan 29 32 27 36 24
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Average outstanding shares-- diluted 704,984 709,316 713,512 714,429 716,603
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Earnings per share:
Basic
Income before cumulative effect of accounting changes $ 4.75 $ 4.10 $ 3.53 $ 3.05 $ 2.68
Cumulative effect of accounting changes, net of tax
Minority-owned insurance operations -- -- -- -- 0.03
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Basic $ 4.75 $ 4.10 $ 3.53 $ 3.05 $ 2.71
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Diluted
Income before cumulative effect of accounting changes $ 4.73 $ 4.08 $ 3.52 $ 3.05 $ 2.67
Cumulative effect of accounting changes, net of tax
Minority-owned insurance operations -- -- -- -- 0.03
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Diluted $ 4.73 $ 4.08 $ 3.52 $ 3.05 $ 2.70
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(a) Share information reflects common stock splits in the form of 50 percent
common stock dividends paid July 27, 1997 and July 28, 1995.
(b) The number of common shares outstanding as of December 31, 1997 was
699,518,281. The number of common shares that would have been outstanding
as of December 31, 1997 assuming the exercise or issuance of all dilutive
potential common shares outstanding is 702,981,657.
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