AIG 2012 Annual Report Download - page 22

19FEB201322181508
ITEM 1 / BUSINESS / AIG
.....................................................................................................................................................................................
Department of the Treasury
Through a series of transactions that closed on January 14, 2011 (the Recapitalization), we exchanged various forms
of government support for AIG Common Stock, and the Department of the Treasury became AIG’s majority
shareholder, with approximately 92 percent of outstanding AIG Common Stock at that time.
The Department of the Treasury, as selling shareholder, sold all of its shares of AIG Common Stock through six
registered public offerings completed in May 2011 and March, May, August, September and December 2012. We
purchased approximately 421 million shares of AIG Common Stock in the first four of the 2012 offerings for
approximately $13.0 billion. We did not purchase any shares in the May 2011 or December 2012 offerings.
See Item 7. MD&A – Liquidity and Capital Resources and Notes 4, 17, 18, and 25 to the Consolidated Financial
Statements for further discussion of the government support provided to AIG, the Recapitalization and significant
asset dispositions.
These and other key accomplishments are described in the following table:
2011 and 2012 Accomplishments
AREA OF FOCUS ACTION
$67.7 bn
$51.6 bn*
$1.6 bn in 2012
$1.0 bn in 2011
3.5 points in
2012
$4.2 bn (80.1%)
$16.6 bn
$5.2 bn and
$3.3 bn
$4.0 bn
$12.85
$3.8 bn and
$2.0 bn
$13.0 bn
$2.9 bn
RESULT
COMPLETE
REPAYMENT OF
GOVERNMENT
SUPPORT
CORE
BUSINESS
DEVELOPMENTS
NON-CORE ASSET
DIVESTITURES
STRENGTHEN
LIQUIDITY AND CAPITAL
CAPITAL
MARKETS
TRANSACTIONS
EXITED FROM
GOVERNMENT
OWNERSHIP
FOCUSED
PORTFOLIO OF
BUSINESSES
INCREASED
FINANCIAL
FLEXIBILITY
• Completed Recapitalization in 2011
• Department of the Treasury exited
ownership of AIG through six offerings of
AIG Common Stock in 2011 and 2012
• Improved insurance operating income
• Improved 2012 current accident year
loss ratio, excluding catastrophe losses
and prior year development
• Completed cash redeployment in 2011
• Strategic investments in People’s
Insurance Company (Group) of China
Limited (PICC), Woodbury Financial
Services, Inc. and Service Net in 2012
• Remaining interests in Maiden Lane II
LLC (ML II) and Maiden Lane III LLC (ML
III) monetized and sold remaining
interest in AIA Group Limited (AIA) in
2012
• Entered into agreement to sell up to 90%
of ILFC in 2012
• Sold AIG Star and AIG Edison, Nan Shan
and MetLife securities in 2011
• Cash distributions from subsidiaries in
2012 and 2011
• Amended, extended and increased
syndicated, revolving four year
credit facility
• Growth in book value per share from
2011 to 2012
• AIG note offerings in 2011 and 2012
• AIG Common Stock purchases in 2012
• Sale of AIG Common Stock in 2011
$0.7 bn in 2012
$24.6 bn
* AIG did not receive any proceeds from the sale of AIG Common Stock by the Department of the Treasury. The Department of the Treasury
still owns ten-year warrants to purchase approximately 2.7 million shares of AIG Common Stock.
..................................................................................................................................................................................................................................
AIG 2012 Form 10-K 5