EX-23.1 10 y41459ex23-1.txt EX-23.1 CONSENT OF PRICEWATERHOUSECOOPERS LLP 1 Exhibit 23.1 Consent of Independent Accountants We hereby consent to the incorporation by reference in the Registration Statements on Forms S-3 and S-8 (No. 2-38768, No. 2-44043, No. 2-45346, No. 2-51498, No. 2-59317, No. 2-61858, No. 2-62760, No. 2-64336, No. 2-67600, No. 2-72058, No. 2-75874, No. 2-75875, No. 2-78291, No. 2-87005, No. 2-82989, No. 2-90756, No. 2-91945, No. 2-95589, No. 2-97439, No. 33-8495, No. 33-13874, No. 33-18073, No. 33-25291, No. 33-41643, No. 33-48996, No. 33-57250, No. 33-60327, No. 33-60827, No. 33-62821, No. 333-21365, No. 333-48639, No. 333-58095, No. 333-70069, No. 333-74187, No. 333-83813, No. 333-31024, No. 333-31346, No. 333-39976, No. 333-45828, No. 333-50198 and No. 333-52938) of American International Group, Inc. of our report dated February 7, 2001, relating to the consolidated financial statements and financial statement schedules, which appears in this Form 10-K. We also consent to the reference to our firm under the headings "Financial Statements" or "Experts" included in the Prospectuses. PricewaterhouseCoopers LLP New York, New York March 30, 2001 II-14 2 Schedule I AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES SUMMARY OF INVESTMENTS--OTHER THAN INVESTMENTS IN RELATED PARTIES As of December 31, 2000
(in millions) ------------------------------------------------------------------------------------------------------------------------------------ Amount at which shown in the Cost* Value Balance Sheet ==================================================================================================================================== Fixed maturities: Bonds: United States Government and government agencies and authorities $ 1,861 $ 1,944 $ 1,941 States, municipalities and political subdivisions 21,592 22,435 21,918 Foreign governments 18,565 19,254 19,254 Public utilities 6,458 6,710 6,710 All other corporate 53,356 52,187 52,187 ------------------------------------------------------------------------------------------------------------------------------------ Total bonds 101,832 102,530 102,010 ------------------------------------------------------------------------------------------------------------------------------------ Total fixed maturities 101,832 102,530 102,010 ------------------------------------------------------------------------------------------------------------------------------------ Equity securities: Common stocks: Public utilities 138 150 150 Banks, trust and insurance companies 664 735 735 Industrial, miscellaneous and all other 5,569 5,240 5,240 ------------------------------------------------------------------------------------------------------------------------------------ Total common stocks 6,371 6,125 6,125 Non-redeemable preferred stocks 1,166 1,056 1,056 ------------------------------------------------------------------------------------------------------------------------------------ Total equity securities 7,537 7,181 7,181 ------------------------------------------------------------------------------------------------------------------------------------ Mortgage loans on real estate, policy and collateral loans 12,243 12,243 12,243 Financial services assets: Flight equipment primarily under operating leases, net of accumulated depreciation 19,325 -- 19,325 Securities available for sale, at market value 14,636 14,669 14,669 Trading securities, at market value -- 7,347 7,347 Spot commodities, at market value -- 363 363 Unrealized gain on interest rate and currency swaps, options and forward transactions -- 10,235 10,235 Trading assets 7,045 -- 7,045 Securities purchased under agreements to resell, at contract value 14,991 -- 14,991 Other invested assets 13,394 -- 13,394 Short-term investments, at cost (approximates market value) 5,831 -- 5,831 ------------------------------------------------------------------------------------------------------------------------------------ Total investments $196,834 -- $214,634 ====================================================================================================================================
* Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts. S-1 3 Schedule II AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEET-- PARENT COMPANY ONLY
(in millions) -------------------------------------------------------------------------------------------------------------------- December 31, 2000 1999 ==================================================================================================================== Assets: Cash $ 1 $ 3 Short-term investments 2 1 Invested assets 721 760 Carrying value of subsidiaries and partially-owned companies, at equity 39,712 34,603 Premiums and insurance balances receivable-net 155 113 Other assets 2,140 377 -------------------------------------------------------------------------------------------------------------------- Total assets 42,731 35,857 -------------------------------------------------------------------------------------------------------------------- Liabilities: Insurance balances payable 334 285 Due to affiliates-net 930 861 Medium term notes payable 582 481 Term notes payable 433 432 Zero coupon notes 127 114 Italian Lire bonds 159 159 Other liabilities 547 219 -------------------------------------------------------------------------------------------------------------------- Total liabilities 3,112 2,551 -------------------------------------------------------------------------------------------------------------------- Capital funds: Common stock 6,189 4,152 Additional paid-in capital 2,668 2,080 Retained earnings 34,304 31,040 Accumulated other comprehensive income (2,136) (2,103) Treasury stock (1,406) (1,863) -------------------------------------------------------------------------------------------------------------------- Total capital funds 39,619 33,306 -------------------------------------------------------------------------------------------------------------------- Total liabilities and capital funds $42,731 $35,857 ====================================================================================================================
STATEMENT OF INCOME--PARENT COMPANY ONLY
(in millions) ----------------------------------------------------------------------------------------------------------------------------------- Years Ended December 31, 2000 1999 1998 =================================================================================================================================== Agency loss $ (11) $ (13) $ (6) Financial services income 280 246 263 Asset management income (loss) (5) 5 -- Dividend income from consolidated subsidiaries: Cash 1,514 1,049 856 Other -- 30 -- Dividend income from partially-owned companies -- 7 14 Equity in undistributed net income of consolidated subsidiaries and partially-owned companies 4,230 4,180 3,737 Other income (deductions)-net (87) (162) (210) ----------------------------------------------------------------------------------------------------------------------------------- Income before income taxes 5,921 5,342 4,654 Income taxes 285 287 372 ----------------------------------------------------------------------------------------------------------------------------------- Net income $5,636 $ 5,055 $ 4,282 ===================================================================================================================================
S-2 4 Schedule II AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES CONDENSED FINANCIAL INFORMATION OF REGISTRANT--(continued) STATEMENT OF CASH FLOWS--PARENT COMPANY ONLY
(in millions) -------------------------------------------------------------------------------------------------------------------------- Years Ended December 31, 2000 1999 1998 ========================================================================================================================== Cash flows from operating activities: Net income $ 5,636 $ 5,055 $ 4,282 -------------------------------------------------------------------------------------------------------------------------- Adjustments to reconcile net income to net cash provided by operating activities: Non-cash revenues, expenses, gains and losses included in income: Equity in undistributed net income of consolidated subsidiaries and partially-owned companies (4,230) (4,180) (3,737) Change in premiums and insurance balances receivable and payable-net 7 (1) 30 Change in cumulative translation adjustments 85 (99) (18) Other-net (140) (144) 178 -------------------------------------------------------------------------------------------------------------------------- Total adjustments (4,278) (4,424) (3,547) -------------------------------------------------------------------------------------------------------------------------- Net cash provided by operating activities 1,358 631 735 -------------------------------------------------------------------------------------------------------------------------- Cash flows from investing activities: Purchase of investments (131) (44) (154) Sale of investments 1 62 -- Change in short-term investments (1) 9 (9) Change in collateral and guaranteed loans 10 18 (25) Contributions to subsidiaries and investments in partially-owned companies (687) (415) (444) Other-net (26) (39) (36) -------------------------------------------------------------------------------------------------------------------------- Net cash used in investing activities (834) (409) (668) -------------------------------------------------------------------------------------------------------------------------- Cash flows from financing activities: Change in medium term notes 101 14 (29) Change in term notes 1 (556) 100 Proceeds from common stock issued 144 244 40 Change in loans payable 477 217 218 Cash dividends to shareholders (335) (303) (324) Acquisition of treasury stock (947) (275) (81) Proceeds from redemption of Premium Equity Redemption Cumulative Security Units -- 431 -- Other-net 33 7 7 -------------------------------------------------------------------------------------------------------------------------- Net cash used in financing activities (526) (221) (69) -------------------------------------------------------------------------------------------------------------------------- Change in cash (2) 1 (2) Cash at beginning of year 3 2 4 -------------------------------------------------------------------------------------------------------------------------- Cash at end of year $ 1 $ 3 $ 2 ==========================================================================================================================
NOTES TO FINANCIAL STATEMENTS--PARENT COMPANY ONLY (1) Agency operations conducted in New York through the North American Division of AIU are included in the financial statements of the parent company. (2) Certain accounts have been reclassified in the 1999 and 1998 financial statements to conform to their 2000 presentation. (3) "Equity in undistributed net income of consolidated subsidiaries and partially-owned companies" in the accompanying Statement of Income--Parent Company Only--includes equity in income of the minority-owned insurance operations. (4) See also Notes to Consolidated Financial Statements. S-3 5 Schedule III AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION As of December 31, 2000, 1999 and 1998 and for the years then ended
(in millions) ---------------------------------------------------------------------------------------------------------------------- Reserves for Losses and Losses and Deferred Loss Reserve Policy Loss Policy Expenses, for and Net Expenses Acquisition Future Policy Unearned Contract Premium Investment Incurred, Segment Costs Benefits(a) Premiums Claims(b) Revenue Income Benefits ====================================================================================================================== 2000 General insurance $2,438 $40,613 $12,510 $ -- $17,407 $2,701 $13,104 Life insurance 7,751 38,165 -- 1,000 13,610 7,123 13,615 ---------------------------------------------------------------------------------------------------------------------- $10,189 $78,778 $12,510 $1,000 $31,017 $9,824 $26,719 ====================================================================================================================== 1999 General insurance $2,132 $38,252 $11,450 $ -- $15,544 $2,517 $11,738 Life insurance 7,492 34,608 -- 942 11,942 6,206 11,870 ---------------------------------------------------------------------------------------------------------------------- $9,624 $72,860 $11,450 $ 942 $27,486 $8,723 $23,608 ====================================================================================================================== 1998 General insurance $1,852 $38,310 $10,009 $ -- $14,098 $2,192 $10,657 Life insurance 6,229 29,571 -- 1,135 10,293 5,201 10,242 ---------------------------------------------------------------------------------------------------------------------- $8,081 $67,881 $10,009 $1,135 $24,391 $7,393 $20,899 ====================================================================================================================== (in millions) ----------------------------------------------------------------- Amortization of Deferred Policy Other Net Acquisition Operating Premiums Segment Costs(c) Expenses Written ================================================================= 2000 General insurance $1,708 $1,810 $17,526 Life insurance 958 2,611 -- ----------------------------------------------------------------- $2,666 $4,421 $17,526 ================================================================= 1999 General insurance $1,528 $1,609 $16,224 Life insurance 891 2,381 -- ----------------------------------------------------------------- $2,419 $3,990 $16,224 ================================================================= 1998 General insurance $1,358 $1,552 $14,586 Life insurance 759 2,046 -- ----------------------------------------------------------------- $2,117 $3,598 $14,586 =================================================================
(a) Reserves for losses and loss expenses with respect to the general insurance operations are net of discounts of $1.29 billion, $1.08 billion and $551 million for 2000, 1999 and 1998, respectively. (b) Reflected in insurance balances payable on the accompanying balance sheet. (c) Amounts shown for general insurance segment exclude amounts deferred and amortized in the same period. S-4 6 Schedule IV AMERICAN INTERNATIONAL GROUP, INC. AND SUBSIDIARIES REINSURANCE As of December 31, 2000, 1999 and 1998 and for the years then ended
(dollars in millions) ----------------------------------------------------------------------------------------------------------------------------------- Percent of Ceded Assumed Amount to Other from Other Net Assumed Gross Amount Companies Companies Amount to Net =================================================================================================================================== 2000 Life insurance in-force $581,937 $ 56,927 $ 1,122 $526,132 0.2% =================================================================================================================================== Premiums: General insurance $ 20,116 $ 7,524 $ 4,934 $ 17,526 28.1% Life insurance 13,890 318 38 13,610(b) 0.3 ----------------------------------------------------------------------------------------------------------------------------------- Total premiums $ 34,006 $ 7,842 $ 4,972 $ 31,136 16.0% =================================================================================================================================== 1999 Life insurance in-force $583,670 $ 69,535 $ 1,289 $515,424 0.3% =================================================================================================================================== Premiums: General insurance $ 18,660 $ 6,345 $ 3,909(a) $ 16,224 24.1% Life insurance 12,220 310 32 11,942(b) 0.3 ----------------------------------------------------------------------------------------------------------------------------------- Total premiums $ 30,880 $ 6,655 $ 3,941 $ 28,166 14.0% =================================================================================================================================== 1998 Life insurance in-force $502,241 $ 62,768 $ 1,408 $440,881 0.3% =================================================================================================================================== Premiums: General insurance $ 17,931 $ 6,098 $ 2,753(a) $ 14,586 18.9% Life insurance 10,550 285 28 10,293(b) 0.3 ----------------------------------------------------------------------------------------------------------------------------------- Total premiums $ 28,481 $ 6,383 $ 2,781 $ 24,879 11.2% ===================================================================================================================================
(a) The increase results from the consolidation of Transatlantic, which is a reinsurance company. (b) Includes accident and health premiums of $2.58 billion, $2.25 billion and $1.88 billion in 2000, 1999 and 1998, respectively. S-5