AIG 2008 Annual Report Download - page 88

The following tables summarize development, (favorable) or unfavorable, of incurred losses and loss
expenses for prior years (other than accretion of discount):
2008 2007 2006
Years Ended December 31,
(In millions)
Prior Accident Year Development by Reporting Unit:
Commercial Insurance ................................ $ (24) $(390) $ 175
Personal Lines ...................................... 65 7 (111)
Mortgage Guaranty ................................... 177 (25) (115)
Foreign General Insurance ............................. (62) (286) (183)
Subtotal ............................................. 156 (694) (234)
Transatlantic ........................................ (1) 88 181
Asbestos settlements* ................................. (37) (50) —
Prior years, other than accretion of discount .................. $118 $(656) $ (53)
*Represents the effect of settlements of certain asbestos liabilities.
2008 2007 2006
Years Ended December 31,
(In millions)
Prior Accident Year Development by Major Class of Business:
Excess casualty (Commercial Insurance) ................... $1,105 $ 73 $ 102
D&O and related management liability (Commercial Insurance). . (430) (305) (20)
Excess workers’ compensation (Commercial Insurance) . ....... (12) (14) 74
Healthcare (Commercial insurance) ....................... (310) (194) (130)
Reinsurance (Transatlantic) ............................. (1) 88 181
Asbestos and environmental (primarily Commercial Insurance) . . 51 18 208
All other, net ....................................... (285) (322) (468)
Prior years, other than accretion of discount .................. $ 118 $(656) $ (53)
2008 2007 2006
Years Ended December 31,
Calendar Year
(In millions)
Prior Accident Year Development by Accident Year:
Accident Year
2007 ............................................... $(370)
2006 ............................................... (590) $(1,248)
2005 ............................................... (455) (446) $(1,576)
2004 ............................................... (335) (428) (511)
2003 ............................................... 200 37 (212)
2002 ............................................... 176 234 373
2001 ............................................... 238 263 29
2000 ............................................... 341 321 338
1999 ............................................... 346 47 382
1998 and prior ........................................ 567 564 1,124
Prior years, other than accretion of discount .................. $ 118 $ (656) $ (53)
82 AIG 2008 Form 10-K
American International Group, Inc., and Subsidiaries