AIG 2007 Annual Report Download - page 44

42 AIG 2007 Annual Report
American International Group, Inc. and Subsidiaries
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 43 and throughout this Annual Report. AIG presents its operations in the way it believes will be most meaningful and useful,
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, 2007 2006 2005
General Insurance revenues:
Net premiums earned $45,682 $ 43,451 $ 40,809
Net investment income 6,132 5,696 4,031
Net realized capital gains (losses) (106) 59 334
Total $ 51,708 $ 49,206 $ 45,174
General Insurance operating income $ 10,526 $ 10,412 $ 2,315
Net realized capital gains (losses) (106) 59 334
General Insurance operating income excluding net realized capital gains (losses) 10,632 10,353 1,981
Current year catastrophe-related losses (276) — (2,888)
Change in estimate for asbestos and environmental reserves —(198) (873)
Reserve charge ——(1,824)
General Insurance operating income excluding net realized capital gains (losses),
current year catastrophe-related losses, change in estimate for
asbestos and environmental reserves, and reserve charge $10,908 $ 10,551 $ 7,566
General Insurance combined ratio 90.33 89.06 104.69
Current year catastrophe-related losses 0.60 — 7.06
Change in estimate for asbestos and environmental reserves —0.46 2.14
Reserve charge —— 4.47
General Insurance combined ratio, excluding current year catastrophe-related losses,
change in estimate for asbestos and environmental reserves, and reserve charge 89.73 88.60 91.02
Life Insurance & Retirement Services revenues:
Premiums and other considerations $33,627 $30,766 $ 29,501
Net investment income 22,341 20,024 18,677
Net realized capital gains (losses) (2,398) 88 (158)
Total $53,570 $50,878 $ 48,020
Life Insurance & Retirement Services premiums:
Premiums and other considerations $ 33,627 $ 30,766 $ 29,501
Deposits and other considerations not included in revenues under GAAP 59,103 50,241 46,221
Premiums, deposits and other considerations $ 92,730 $81,007 $75,722
Life Insurance & Retirement Services operating income $ 8,186 $ 10,121 $ 8,965
Net realized capital gains (losses) (2,398) 88 (158)
Life Insurance & Retirement Services operating income
excluding net realized capital gains (losses) $ 10,584 $ 10,033 $ 9,123
Financial Services operating income (loss) $ (9,515) $ 383 $ 4,424
Net realized capital gains (losses) and Capital Markets other-than-temporary impairments (743) (133) 154
FAS 133 gains (losses) 211 (1,822) 2,014
Financial Services operating income (loss) excluding FAS 133 gains (losses),
net realized capital gains (losses) and Capital Markets other-than-temporary impairments $ (8,983) $ 2,338 $ 2,256
Asset Management operating income $ 1,164 $1,538 $ 1,963
Net realized capital gains (losses) (1,000) (125) 82
Asset Management operating income before net realized capital gains (losses) $2,164 $ 1,663 $ 1,881
Consolidated:
Net income $ 6,200 $ 14,048 $ 10,477
Net realized capital gains (losses) and Capital Markets
other-than-temporary impairment, net of tax (2,804) 33 201
FAS 133 gains (losses), excluding net realized capital gains (losses), net of tax (304) (1,424) 1,530
Cumulative effect of accounting changes, net of tax —34 —
Adjusted net income $ 9,308 $ 15,405 $ 8,746