AIG 2006 Annual Report Download - page 119

American International Group, Inc. and Subsidiaries
offset by increased equity earnings in certain unconsolidated Borrowings issued or guaranteed by AIG and those
subsidiaries. borrowings not guaranteed by AIG at December 31, 2006
and 2005 were as follows:
2005 and 2004 Comparison (in millions) 2006 2005
AIG’s Other operating loss was $2.5 billion in 2005 compared to AIG borrowings:
$562 million in 2004, reflecting the $1.6 billion of regulatory Notes and bonds payable $ 8,915 $ 4,607
Loans and mortgages payable 841 814
settlement costs in 2005. In addition, AIG’s equity in certain
AIG MIP matched notes and bonds
partially owned subsidiaries includes $312 million and $96 million
payable 5,468 —
in catastrophe losses in 2005 and 2004, respectively. Series AIGFP matched notes and
bonds payable 72 —
Capital Resources and Liquidity Total AIG Borrowing 15,296 5,421
At December 31, 2006, AIG had total consolidated shareholders’ Borrowings guaranteed by AIG:
equity of $101.68 billion and total consolidated borrowings of AIGFP
$148.68 billion. At that date, $131.55 billion of such borrowings GIAs 20,664 20,811
were not guaranteed by AIG, were matched borrowings by AIG or Notes and bonds payable 37,528 26,463
Hybrid financial instrument
AIGFP, or represented liabilities connected to trust preferred
liabilities(a) 8,856 —
stock.
Total 67,048 47,274
In 2007, AIG expects to issue capital securities in one or more
series. The proceeds will be used to repurchase shares of AIG Funding, Inc. commercial paper 4,821 2,694
common stock or to otherwise improve the efficiency of AIG’s AGC Notes and bonds payable 797 797
capital structure. Liabilities connected to trust
preferred stock 1,440 1,391
Borrowings Total borrowings issued or
guaranteed by AIG 89,402 57,577
At December 31, 2006, AIG’s net borrowings were
$17.13 billion after reflecting amounts that were Borrowings not guaranteed by AIG:
matched borrowings by AIG and AIGFP, amounts not ILFC
Commercial paper 2,747 2,615
guaranteed by AIG and liabilities connected to trust
Notes and bonds payable(b) 26,591 23,715
preferred stock. The following table summarizes
Total 29,338 26,330
borrowings outstanding at December 31, 2006 and 2005:
AGF
(in millions) 2006 2005 Commercial paper 4,328 3,423
AIG’s net borrowings $ 17,126 $ 10,425 Notes and bonds payable 19,595 18,719
Liabilities connected to trust Total 23,923 22,142
preferred stock 1,440 1,391 AIGCFG
AIG MIP matched notes and bonds Commercial paper 227 476
payable 5,468 —Loans and mortgages payable 1,453 1,047
Series AIGFP matched notes and
Total 1,680 1,523
bonds payable 72 —
AIGFP AIG Finance Taiwan Limited
commercial paper 26 —
GIAs 20,664 20,811
Matched notes and bonds payable 35,776 24,950 Other Subsidiaries 1,065 927
Hybrid financial instrument Variable Interest Entity debt:
liabilities*8,856 —A.I. Credit 880 —
Borrowings not guaranteed by AIG 59,277 52,272 AIGGIG 55 140
AIG Global Real Estate Investment 2,052 977
Total $148,679 $109,849
AIG SunAmerica 203 233
* Represents structured notes issued by AIGFP that are accounted for ALICO 55 —
using the fair value option. Total 3,245 1,350
Total borrowings not guaranteed by
AIG 59,277 52,272
Total Debt $148,679 $109,849
(a) Represents structured notes issued by AIGFP that are accounted for
using the fair value option.
(b) Includes borrowings under Expor t Credit Facility of $2.7 billion and
$2.6 billion, at December 31, 2006 and 2005, respectively.
Form 10-K 2006 AIG 69