AIG 2005 Annual Report Download - page 32

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30 Review of Operations
General Insurance
(in millions, except ratios) 2005(a) 2004(b)
Net premiums written $ 41,872 $ 40,623
Underwriting loss (2,050) (247)
Net investment income 4,031 3,196
Operating income before realized capital gains 1,981 2,949
Realized capital gains 334 228
Operating income 2,3153,177
Operating income before realized capital gains,
excluding catastrophe losses 4,869 4,003
Net reserves for losses and loss expenses 57,476 47,254
Combined ratio 104.69 100.30
Combined ratio, excluding catastrophe losses(c) 97.63 97.56
(a) Includes fourth quarter net reserve charge of $1.82 billion.
(b) Includes a charge of $850 million attributable to the change in estimate for asbestos and environ-
mental exposures.
(c) Excluding the fourth quarter net reserve charge, the 2005 combined ratio was 93.19. Excluding the
change in estimate for asbestos and environmental exposures, the 2004 combined ratio was 95.35.
AIG’s General Insurance operations include the
largest U.S. underwriters of commercial and industrial
insurance, the most extensive international property-
casualty network, a personal lines business with an
emphasis on auto insurance and high-net-worth
clients and mortgage guaranty insurance operations.
’01 ’02 ’03 ’04 ’05
Foreign General Insurance–
Net Premiums Written
(billions of dollars)
5.37
6.18
7.86
9.41
10.00