AIG 2006 Annual Report Download - page 44

42 AIG 2006 Annual Report42 AIG 2006 Annual Report42 AIG 2006 Annual Report
Five Year Summary of Selected Financial Information
Compound
Annual
(in millions, except ratios) Growth Rate
Years Ended/As of December 31, 2006 2005 2004 2003 2002 2002–2006
Balance Sheet Data:
Total cash and invested assets(a) $799,553 $691,767 $ 649,825 $528,550 $ 435,454 16.4%
Total assets 979,414 853,051 801,007 675,602 561,131 14.9
Total General Insurance reserves(b) 62,630 57,476 47,254 36,228 29,347 20.9
Total liabilities 877,546 766,548 721,135 606,180 500,696 15.1
Total shareholders’ equity 101,677 86,317 79,673 69,230 58,303 14.9
Income Statement Data:
Revenues(c) $113,194 $108,905 $ 97,666 $ 79,421 $ 66,171 14.4%
Net income 14,048 10,477 9,839 8,108 5,729 25.1
Loss ratio 64.56 81.09 78.78 73.06 83.12
Expense ratio 24.50 23.60 21.52 19.62 21.81
Combined ratio(d) 89.06 104.69 100.30 92.68 104.93
(a) Refer to the table on page 39 of this report for the composition of 2006 total cash and invested assets.
(b) Represents General Insurance net reserves for losses and loss expenses at year end.
(c) 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).
(d) 2005 included current year catastrophe-related losses of $2.89 billion and a net reserve charge of $1.82 billion. 2004 included a charge of $850 million
attributable to the change in estimate for asbestos and environmental reserves and current year catastrophe-related losses of $1.05 billion. 2002 included
loss reserve charge of $2.1 billion. Excluding current year catastrophe-related losses, 2005 and 2002 reserve charges, and 2004 change in estimate for
asbestos and environmental reserves, the combined ratios were 93.19, 95.35, 92.41 and 95.77 for 2005, 2004, 2003 and 2002, respectively.
American International Group, Inc. and Subsidiaries
General Insurance Combined
Loss and Expense Ratio
(after dividends to policyholders)
(d)
’02 ’03 ’04 ’05 ’06
AIGIndustry*
A combined ratio of less than 100 reflects
an underwriting profit.
100
95
90
85
105
110
General Insurance
Net Premiums Written
(index factor)
’02 ’03 ’04 ’05 ’06
1.0
1.3
1.5
1.6 1.7
1.0 1.1
1.2 1.2 1.2
AIG
Industry*
* Industry represents U.S. stock companies. 2006 estimated. Industry sources: Fox-Pitt, Kelton Inc. and Best’s
Aggregates &Averages.
General Insurance Reserves
for Losses and Loss Expenses
(index factor)
’02 ’03 ’04 ’05 ’06
1.0
1.2
1.6
2.0 2.1
1.0 1.1 1.2
1.4 1.5
AIG
Industry*