AIG 2011 Annual Report Download - page 63

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This Annual Report on Form 10-K and other publicly available documents may include, and AIG’s officers and
representatives may from time to time make, projections, goals, assumptions and statements that may constitute
‘‘forward-looking statements’’ within the meaning of the Private Securities Litigation Reform Act of 1995. These
projections, goals, assumptions and statements are not historical facts but instead represent only AIG’s belief
regarding future events, many of which, by their nature, are inherently uncertain and outside AIG’s control. These
projections, goals, assumptions and statements include statements preceded by, followed by or including words
such as ‘‘believe’’, ‘‘anticipate’’, ‘‘expect’’, ‘‘intend’’, ‘‘plan’’, ‘‘view’’, ‘‘target’’ or ‘‘estimate’’. These projections,
goals, assumptions and statements may address, among other things:
• the timing of the disposition of the ownership position of the United States Department of the Treasury
(Department of the Treasury) in AIG;
• the timing and method of repayment of the preferred interests in AIA Aurora LLC held by the Department
of the Treasury;
• the fair value of AIA and cash flow projections for AIG’s Maiden Lane Interests;
• the monetization of AIG’s interests in International Lease Finance Corporation (ILFC);
• AIG’s exposures to subprime mortgages, monoline insurers, the residential and commercial real estate
markets, state and municipal bond issuers and sovereign bond issuers;
• AIG’s exposure to European governments and European financial institutions;
• AIG’s strategy for risk management;
• AIG’s ability to retain and motivate its employees;
• AIG’s generation of deployable capital;
• AIG’s return on equity and earnings per share long-term aspirational goals;
• AIG’s strategy to grow net investment income, efficiently manage capital and reduce expenses;
• AIG’s strategy for customer retention, growth, product development, market position, financial results and
reserves; and
• The revenues and combined ratios of AIG’s subsidiaries.
It is possible that AIG’s actual results and financial condition will differ, possibly materially, from the results
and financial condition indicated in these projections, goals, assumptions and statements. Factors that could cause
AIG’s actual results to differ, possibly materially, from those in the specific projections, goals, assumptions and
statements include:
• actions by credit rating agencies;
• changes in market conditions;
• the occurrence of catastrophic events;
• significant legal proceedings;
• concentrations in AIG’s investment portfolios, including its municipal bond portfolio;
• judgments concerning casualty insurance underwriting and reserves;
• judgments concerning the recognition of deferred tax assets;
• judgments concerning deferred policy acquisition costs (DAC) recoverability;
AIG 2011 Form 10-K 49
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION