AIG 2006 Annual Report Download - page 42

40 AIG 2006 Annual Report
American International Group, Inc. and Subsidiaries
40 AIG 2006 Annual Report40 AIG 2006 Annual Report
Reconciliation in Accordance with Regulation G
Regulation G, promulgated by the Securities and Exchange Commission, requires a reconciliation of each non-GAAP financial measure used
in this Annual Report to the comparable GAAP figure. Such reconciliations are set forth below, in the Five Year Summary of Consolidated
Operations on page 41 and throughout this Annual Report. AIG presents its operations in the way it believes will be most meaningful and use-
ful, as well as most transparent, to the investing public and others who use AIG’s financial information in evaluating the performance of AIG.
(in millions, except ratios)
Years Ended December 31, 2006 2005 2004
General Insurance revenues:
Net premiums earned $43,451 $40,809 $ 38,537
Net investment income 5,696 4,031 3,196
Realized capital gains 59 334 228
Total $ 49,206 $ 45,174 $ 41,961
General Insurance operating income $10,412 $ 2,315 $ 3,177
Realized capital gains 59 334 228
General Insurance operating income, excluding realized capital gains 10,353 1,981 2,949
Current year catastrophe-related losses —(2,888) (1,054)
Change in estimate for asbestos and environmental reserves —— (850)
Reserve charge —(1,824) —
General Insurance operating income, excluding realized capital gains,
current year catastrophe-related losses, change in estimate for
asbestos and environmental reserves, and reserve charge $10,353 $ 6,693 $ 4,853
General Insurance combined ratio 89.06 104.69 100.30
Current year catastrophe-related losses —7.06 2.74
General Insurance combined ratio, excluding current year
catastrophe-related losses 89.06 97.63 97.56
Change in estimate for asbestos and environmental reserves —— 2.21
Reserve charge —4.44 —
General Insurance combined ratio, excluding current year
catastrophe-related losses, change in estimate for asbestos and
environmental reserves, and reserve charge 89.06 93.19 95.35
Life Insurance & Retirement Services revenues:
GAAP premiums $30,636 $29,400 $ 28,088
Net investment income 19,439 18,134 15,269
Realized capital gains (losses) 88 (158) 45
Total $ 50,163 $ 47,376 $ 43,402
Life Insurance & Retirement Services premiums:
GAAP premiums $30,636 $29,400 $ 28,088
Deposits and other considerations not included in revenues under GAAP 35,953 37,048 38,756
Premiums, deposits and other considerations $66,589 $66,448 $ 66,844
Life Insurance & Retirement Services operating income $10,032 $ 8,904 $ 7,925
Realized capital gains (losses) 88 (158) 45
Life Insurance & Retirement Services operating income
excluding realized capital gains (losses) $ 9,944 $ 9,062 $ 7,880
Financial Services operating income $524 $ 4,276 $ 2,180
FAS 133 gains (losses) (1,822) 2,014 (149)
Financial Services operating income, excluding FAS 133 gains (losses) $ 2,346 $ 2,262 $ 2,329
Asset Management operating income $2,346 $ 2,253 $ 2,125
FAS 133 gains —— 313
FIN 46(R) and EITF 04-5 598 261 195
Asset Management operating income, excluding FAS 133 gains,
FIN 46(R) and EITF 04-5 $ 1,748 $ 1,992 $ 1,617
Net income $14,048 $10,477 $ 9,839
Realized capital gains, net of tax 33 201 85
FAS 133 gains (losses), excluding realized capital gains (losses) (1,424) 1,530 315
Cumulative effect of accounting changes, net of tax 34 — (144)
Adjusted net income $ 15,405 $ 8,746 $ 9,583