AIG 2011 Annual Report Download - page 30

The following table presents the consolidated gross liability (before discount), reinsurance recoverable and net
liability recorded for each calendar year, and the reestimation of these amounts as of December 31, 2011(a):
(in millions) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Net Liability, End of
Year $ 27,428 $ 30,846 $ 37,744 $ 48,806 $ 59,586 $64,894 $71,717 $75,029 $70,554 $74,724 $74,008
Reinsurance
Recoverable, End of
Year 15,201 17,327 15,644 14,624 19,693 17,369 16,212 16,803 17,487 19,644 20,320
Gross Liability, End of
Year 42,629 48,173 53,388 63,430 79,279 82,263 87,929 91,832 88,041 94,368 $94,328
Re-estimated Net
Liability 55,437 57,410 60,879 63,928 67,518 70,876 78,245 81,719 74,529 74,919
Re-estimated
Reinsurance
Recoverable 25,783 25,630 23,205 21,329 24,271 20,835 19,444 18,808 19,163 19,473
Re-estimated Gross
Liability 81,220 83,040 84,084 85,257 91,789 91,711 97,689 100,527 93,692 94,392
Cumulative Gross
Redundancy/
(Deficiency) $(38,591) $(34,867) $(30,696) $(21,827) $(12,510) $(9,448) $ (9,760) $(8,695) $ (5,651) $ (24)
(a) During 2009, Transatlantic was deconsolidated and 21st Century and HSB were sold. The sales and deconsolidation are reflected in the table
above as a reduction in December 31, 2009 net reserves of $9.7 billion and as an $8.6 billion increase in paid losses for the years 2000 through
2008 to remove the reserves for these divested entities from the ending balance.
(b) The increase in Net Reserves Held from 2009 to 2010 is partially attributable to the $1.7 billion in Net Reserves Held by Fuji, which was
acquired in 2010. The decrease in 2011 is attributable to the cession of asbestos reserves described in Item 7. MD&A — Results of
Operations — Segment Results — Chartis Operations — Liability for Unpaid Claims and Claims Adjustment Expense — Asbestos and
Environmental Reserves.
16 AIG 2011 Form 10-K