AIG 2005 Annual Report Download - page 46

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44 Reconciliation in Accordance with Regulation G
Reconciliation in Accordance
with Regulation G
Regulation G, promulgated by the Securities and Exchange Commission, requires a reconciliation of each non-GAAP financial measure used
in this Annual Report to the comparable GAAP figure. Such reconciliations are set forth below, in the Five Year Summary of Consolidated
Operations on page 45 and throughout this Annual Report. AIG presents its operations in the way it believes will be most meaningful and use-
ful, as well as most transparent, to the investing public and others who use AIG’s financial information in evaluating the performance of AIG.
(in millions, except ratios)
Years Ended December 31, 2005 2004 2003
General Insurance revenues:
Net premiums earned $ 40,809 $ 38,537 $ 31,306
Net investment income 4,031 3,196 2,566
Realized capital gains (losses) 334 228 (39)
Total $ 45,174 $ 41,961 $ 33,833
General Insurance operating income $ 2,315 $ 3,177 $ 4,502
Realized capital gains (losses) 334 228 (39)
General Insurance operating income, excluding realized capital gains (losses) 1,981 2,949 4,541
Catastrophe losses (2,888) (1,054) (83)
Change in estimate for asbestos and environmental exposures —(850) —
Reserve charge (1,824) ——
General Insurance operating income, excluding realized capital gains (losses),
catastrophe losses, change in estimate for asbestos and environmental
exposures and reserve charge $ 6,693 $ 4,853 $ 4,624
General Insurance combined ratio 104.69 100.30 92.68
Catastrophe losses 7.06 2.74 0.27
General Insurance combined ratio, excluding catastrophe losses 97.63 97.56 92.41
Change in estimate for asbestos and environmental exposures —2.21 —
Reserve charge 4.44 ——
General Insurance combined ratio, excluding catastrophe losses, change
in estimate for asbestos and environmental exposures, and reserve charge 93.19 95.35 92.41
Life Insurance & Retirement Services revenues:
GAAP premiums $ 29,400 $ 28,088 $ 23,496
Net investment income 18,134 15,269 12,942
Realized capital gains (losses) (218) 43 240
Total $ 47,316 $ 43,400 $ 36,678
Life Insurance & Retirement Services premiums:
GAAP premiums $ 29,400 $ 28,088 $ 23,496
Deposits and other considerations not included in revenues under GAAP 37,048 38,756 29,617
Premiums, deposits and other considerations $ 66,448 $ 66,844 $ 53,113
Life Insurance & Retirement Services operating income $ 8,844 $ 7,923 $ 6,807
Realized capital gains (losses) (218) 43 240
Life Insurance & Retirement Services operating income,
excluding realized capital gains (losses) $ 9,062 $ 7,880 $ 6,567
Net income $ 10,477 $ 9,839 $ 8,108
Realized capital gains (losses), net of tax 201 85 (342)
FAS 133 gains (losses), excluding realized capital gains (losses) 1,530 315 (697)
Cumulative effect of accounting changes, net of tax —(144) 9
Adjusted net income $ 8,746 $ 9,583 $ 9,138