AIG 2005 Annual Report Download - page 144

Notes to Consolidated Financial Statements Continued
2. Segment Information
Continued
(c) The following table summarizes AIG’s Life Insurance & Retirement Services operations by major internal reporting unit for the
years ended December 31, 2005, 2004 and 2003:
Life Insurance & Retirement Services
AIA, VALIC/ Total Life
ALICO/ AIRCO AGLA AIG Annuity/ Philamlife Total Reclassifications Insurance &
AIG Star Life/ and Nan and AIG and Reportable and Retirement
(in millions) AIG Edison Life(a) Shan(b) AG Life(c) SunAmerica(d) Other Segment Eliminations Services
2005
Revenues(e) $ 15,233 $ 15,499 $ 9,215 $ 6,826 $ 543 $ 47,316 $ – $ 47,316
Operating income 2,956 2,217 1,495 2,104 72 8,844 – 8,844
Depreciation expense 88 77 65 31 7 268 – 268
Capital expenditures 153 338 71 26 2 590 – 590
Identifiable assets 113,422 85,715 99,597 185,383 4,166 488,283 (7,661) 480,622
2004
Revenues(e) $ 12,177 $15,450 $ 8,715 $ 6,562 $ 496 $ 43,400 $ – $ 43,400
Operating income 2,393 2,371 1,023 2,052 84 7,923 – 7,923
Depreciation expense 101 55 62 37 7 262 – 262
Capital expenditures 308 93 47 29 3 480 – 480
Identifiable assets 102,808 74,647 91,538 183,092 2,630 454,715 (6,874) 447,841
2003
Revenues(e) $ 8,958 $13,151 $ 8,297 $ 5,822 $ 450 $ 36,678 $ – $ 36,678
Operating income 2,187 1,766 1,233 1,532 89 6,807 – 6,807
Depreciation expense 77 56 68 36 7 244 – 244
Capital expenditures 281 51 91 58 2 483 – 483
Identifiable assets 79,648 61,426 84,094 151,672 2,523 379,363 (7,237) 372,126
(a) Reflects acquisition of AIG Edison Life in August 2003. Revenues and operating income include realized capital gains (losses) of $(74) million,
$(152) million and $319 million for 2005, 2004 and 2003, respectively. The effect of FAS 133 and the application of FAS 52 included in realized
capital gains (losses) are $(339) million, $(300) million and $226 million for 2005, 2004 and 2003, respectively.
(b) Revenues in 2004 include approximately $640 million of single premium from a reinsurance transaction involving terminal funding pension business,
which is offset by a similar increase in benefit reserves. Revenues and operating income include realized capital gains (losses) of $144 million,
$519 million and $168 million for 2005, 2004 and 2003, respectively. The effect of FAS 133 and the application of FAS 52 included in realized capital
gains (losses) are $(162) million, $166 million and $(167) million for 2005, 2004 and 2003, respectively.
(c) Includes the life operations of AIG Life Insurance Company and American International Life Assurance Company of New York. 2004 includes a
$178 million charge related to a workers compensation quota share reinsurance agreement with Superior National Insurance Company. See Note 12(h)
herein for additional information. In addition, in 2004, as part of the business review of Group life/health, approximately $68 million was incurred for
reserve strengthening and allowances for receivables. Revenues and operating income include realized capital gains (losses) of $35 million, $(120) million
and $(37) million for 2005, 2004 and 2003, respectively. The effect of FAS 133 and the application of FAS 52 included in realized capital gains
(losses) are $73 million, $8 million and $24 million for 2005, 2004 and 2003, respectively.
(d) ‘‘AIG SunAmerica’’ represents the annuity operations of AIG SunAmerica Life Assurance Company, as well as those of First SunAmerica Life
Insurance Company and SunAmerica Life Insurance Company. Revenues and operating income include realized capital gains (losses) of $(337) million,
$(209) million and $(209) million for 2005, 2004 and 2003, respectively. The effect of FAS 133 and the application of FAS 52 included in realized
capital gains (losses) are $(10) million, $(14) million and $(5) million for 2005, 2004 and 2003, respectively.
(e) Represents the sum of Life Insurance & Retirement Services GAAP premiums, net investment income and realized capital gains (losses).
92 AIG m Form 10-K