AIG 2006 Annual Report Download - page 3

Annual Report 2006 AIG 1
(in millions, except per share data and ratios) 2006 2005 % Change
Net income $ 14,048 $ 10,477 34.1
Realized capital gains, net of tax 33 201 —
FAS 133 gains (losses), excluding realized capital gains (losses), net of tax (1,424) 1,530 —
Cumulative effect of an accounting change, net of tax 34 ——
Adjusted net income(a) 15,405 8,746 76.1
Net income, per common share—diluted 5.36 3.99 34.3
Adjusted net income, per common share—diluted(a) 5.88 3.33 76.6
Book value per common share 39.09 33.24 17.6
Revenues(b) $ 113,194 $ 108,905 3.9
Assets 979,414 853,051 14.8
Shareholders’ equity 101,677 86,317 17.8
General Insurance combined loss and expense ratio 89.06 104.69
General Insurance combined loss and expense ratio,
excluding current year catastrophe-related losses 89.06 97.63
(a) Excludes realized capital gains, the cumulative effect of an accounting change and FAS 133 gains (losses).
(b) 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 net investment income from spread-based products and advisory and management fees, and
realized capital gains (losses).
Financial Highlights
Net Income
(billions of dollars)
’02
(c)
’03
(d)
’04
(e)
’05
(f)
’06
(g)
5.73
8.11
9.84
10.48
14.05
Net Income per
Common Share –Diluted
(dollars)
’02 ’03 ’04 ’05 ’06
2.17
3.07
3.73
3.99
5.36
Revenues
(billions of dollars)
’02 ’03 ’04 ’05 ’06
Assets
(billions of dollars)
’02 ’03 ’04 ’05 ’06
561.1
675.6
801.0
853.1
979.4
Shareholders’ Equity
(billions of dollars)
’02 ’03 ’04 ’05 ’06
58.3
69.2
79.7
86.3
101.7
Book Value per
Common Share
(dollars)
’02 ’03 ’04 ’05 ’06
22.34
26.54
30.69
33.24
39.09
(c) 2002 included General Insurance loss reserve charge of $1.34 billion and FAS 133 gains of $20 million.
(d) 2003 included FAS 133 losses of $697 million.
(e) 2004 included $729 million in current year catastrophe-related losses, $144 million loss related to the cumulative effect of an accounting change, $553 million charge for a
change in estimate for asbestos and environmental reserves, and $315 million of FAS 133 gains.
(f) 2005 included $2.11 billion in current year catastrophe-related losses, $1.19 billion for General Insurance fourth quarter reserve charge, $1.15 billion of settlement charges,
and $1.53 billion of FAS 133 gains.
(g) 2006 included a $34 million gain related to the cumulative effect of an accounting change and $1.42 billionof FAS 133 losses.
66.2
79.4
97.7
108.9 113.2