AIG 2009 Annual Report Download - page 14

American International Group, Inc., and Subsidiaries
The bottom of each table below presents the remaining undiscounted and discounted net loss reserve for each year.
For example, in the table that excludes asbestos and environmental losses, for the 2001 year-end, the remaining
undiscounted reserves held at December 31, 2009 are $9.71 billion, with a corresponding discounted net reserve of
$8.98 billion.
Analysis of Consolidated Losses and Loss Expense Reserve Development
The following table presents for each calendar year the losses and loss expense reserves and the development thereof
including those with respect to asbestos and environmental claims. See also Management’s Discussion and Analysis of
Financial Condition and Results of Operations — Results of Operations — Segment Results — General Insurance
Operations — Liability for unpaid claims and claims adjustment expense.*
(in millions) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Net Reserves Held $25,636 $25,684 $26,005 $29,347 $36,228 $47,253 $57,476 $62,630 $69,288 $72,455 $67,899
Discount (in Reserves Held) 1,075 1,287 1,423 1,499 1,516 1,553 2,110 2,264 2,429 2,574 2,655
Net Reserves Held
(Undiscounted) 26,711 26,971 27,428 30,846 37,744 48,806 59,586 64,894 71,717 75,029 70,554
Paid (Cumulative) as of:
One year later 8,266 9,709 11,007 10,775 12,163 14,910 15,326 14,862 16,531 24,267
Two years later 14,640 17,149 18,091 18,589 21,773 24,377 25,152 24,388 31,791
Three years later 19,901 21,930 23,881 25,513 28,763 31,296 32,295 34,647
Four years later 23,074 26,090 28,717 30,757 33,825 36,804 40,380
Five years later 25,829 29,473 32,685 34,627 38,087 43,162
Six years later 28,165 32,421 35,656 37,778 42,924
Seven years later 30,336 34,660 38,116 41,493
Eight years later 31,956 36,497 41,055
Nine years later 33,489 38,943
Ten years later 35,359
(in millions) 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Net Reserves Held
(Undiscounted) $26,711 $26,971 $27,428 $30,846 $37,744 $48,806 $59,586 $64,894 $71,717 $75,029 $70,554
Undiscounted Liability as of:
One year later 26,358 26,979 31,112 32,913 40,931 53,486 59,533 64,238 71,836 77,800
Two years later 27,023 30,696 33,363 37,583 49,463 55,009 60,126 64,764 74,318
Three years later 29,994 32,732 37,964 46,179 51,497 56,047 61,242 67,303
Four years later 31,192 36,210 45,203 48,427 52,964 57,618 63,872
Five years later 33,910 41,699 47,078 49,855 54,870 60,231
Six years later 38,087 43,543 48,273 51,560 57,300
Seven years later 39,597 44,475 49,803 53,917
Eight years later 40,217 45,767 52,034
Nine years later 41,168 47,682
Ten years later 42,727
Net Redundancy /
(Deficiency) (16,016) (20,711) (24,606) (23,071) (19,556) (11,425) (4,286) (2,409) (2,601) (2,771)
Remaining Reserves
(Undiscounted) 7,368 8,739 10,979 12,424 14,376 17,069 23,492 32,656 42,527 53,533
Remaining Discount 511 609 723 856 988 1,124 1,309 1,552 1,893 2,261
Remaining Reserves 6,857 8,130 10,256 11,568 13,388 15,945 22,183 31,104 40,634 51,272
AIG 2009 Form 10-K 6