AIG 2005 Annual Report Download - page 76

ITEM 6.
Selected Financial Data
AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL DATA
The Selected Consolidated Financial Data should be read in conjunction with Management’s Discussion and Analysis of Financial
Condition and Results of Operations and the consolidated financial statements and accompanying notes included elsewhere
herein.
Years Ended December 31,
(in millions, except per share data) 2005 2004 2003 2002 2001
Revenues(a):
Premiums and other considerations $ 70,209 $ 66,625 $ 54,802 $ 44,289 $ 38,261
Net investment income 22,165 18,465 15,508 13,593 13,002
Realized capital gains (losses) 341 44 (442) (1,653) (910)
Other revenues(b) 16,190 12,532 9,553 9,942 9,605
Total revenues 108,905 97,666 79,421 66,171 59,958
Benefits and expenses:
Incurred policy losses and benefits 63,711 58,360 46,034 40,005 33,984
Insurance acquisition and other operating expenses 29,981 24,461 21,480 18,358 18,040
Acquisition, restructuring and related charges –– – – 2,017
Total benefits and expenses 93,692 82,821 67,514 58,363 54,041
Income before income taxes, minority interest and cumulative
effect of accounting changes(c) 15,213 14,845 11,907 7,808 5,917
Income taxes 4,258 4,407 3,556 1,919 1,594
Income before minority interest and cumulative effect of
accounting changes 10,955 10,438 8,351 5,889 4,323
Minority interest (478) (455) (252) (160) (101)
Income before cumulative effect of accounting changes 10,477 9,983 8,099 5,729 4,222
Cumulative effect of accounting changes, net of tax –(144) 9 – (136)
Net income 10,477 9,839 8,108 5,729 4,086
Earnings per common share:
Basic
Income before cumulative effect of accounting changes 4.03 3.83 3.10 2.20 1.61
Cumulative effect of accounting changes, net of tax –(0.06) – – (0.05)
Net income 4.03 3.77 3.10 2.20 1.56
Diluted(d)
Income before cumulative effect of accounting changes 3.99 3.79 3.07 2.17 1.59
Cumulative effect of accounting changes, net of tax –(0.06) – – (0.05)
Net income 3.99 3.73 3.07 2.17 1.54
Dividends per common share(e) 0.63 0.29 0.24 0.18 0.16
Total assets 853,370 801,145 675,602 561,598 490,614
Long-term debt and commercial paper(f)
Guaranteed by AIG 10,425 8,498 7,469 7,144 8,141
Liabilities connected to trust preferred stock 1,391 1,489 1,682 – –
Matched/not guaranteed by AIG 98,033 86,912 71,198 63,866 56,073
Total Liabilities(g) 766,867 721,273 606,180 501,163 438,551
Shareholders’ equity $ 86,317 $ 79,673 $ 69,230 $ 58,303 $ 49,881
(a) Represents the sum of General Insurance net premiums earned, Life Insurance & Retirement Services GAAP premiums, net investment income,
Financial Services interest, lease and finance charges, Asset Management advisory and management fees and net investment income from guaranteed
investment contracts, and realized capital gains (losses).
(b) Includes the effect of hedging activities that do not qualify for hedge accounting treatment under FAS 133, including the related foreign exchange gains and losses.
For 2005, 2004, 2003, 2002 and 2001, respectively, the amounts included are $2.01 billion, $(122) million, $(1.01) billion, $220 million and $56 million.
(c) Includes catastrophe losses of $3.28 billion in 2005, $1.16 billion in 2004, $83 million in 2003, $61 million in 2002 and World Trade Center losses of
$900 million in 2001.
(d) Assumes conversion of contingently convertible bonds due to the adoption of EITF Issue No. 04-8 ‘‘Accounting Issues Related to Certain Features of
Contingently Convertible Debt and the Effect on Diluted Earnings per Share.’’
(e) Dividends have not been restated to reflect dividends paid by AGC which was acquired by AIG on August 29, 2001.
(f) Including that portion of long-term debt maturing in less than one year. See also Note 9 of Notes to Consolidated Financial Statements.
(g) Includes $2.1 billion and $2.2 billion for the years ended 2002 and 2001, respectively, of other liabilities connected to the consolidation of the Muni
Tender Option Bond Program trusts.
24 AIG m Form 10-K