EX-99.1 2 a2200466zex-99_1.htm EX-99.1
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American International Group, Inc., and Subsidiaries

Exhibit 99.1

Item 6.    Selected Financial Data

The following selected financial data reflects changes described in Item 8.01 of this Current Report on Form 8-K, and should be read in conjunction with Management's Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements and accompanying notes included elsewhere herein.

   
Years Ended December 31,
   
   
   
   
   
 
(in millions, except per share data)
  2009(a)
  2008(a)
  2007(a)
  2006(a)
  2005(a)
 
   

Revenues(b):

                               
 

Premiums and other considerations

  $ 51,239   $ 63,137   $ 61,581   $ 57,861   $ 54,538  
 

Net investment income

    18,987     10,453     23,933     22,303     19,020  
 

Net realized capital gains (losses)

    (5,210 )   (46,794 )   (3,248 )   (324 )   245  
 

Unrealized market valuation gains (losses) on Capital Markets super senior credit default swap portfolio

    1,418     (28,602 )   (11,472 )   -     -  
 

Other income

    9,214     (4,769 )   11,013     6,580     9,239  

Total revenues

    75,648     (6,575 )   81,807     86,420     83,042  

Benefits, claims and expenses:

                               
 

Policyholder benefits and claims incurred

    50,015     51,036     50,928     47,220     50,622  
 

Policy acquisition and other insurance expenses(c)

    15,864     20,833     15,644     15,404     14,226  
 

Interest expense(d)

    13,701     15,379     3,483     2,476     1,678  
 

Restructuring expenses and related asset impairment and other expenses

    1,149     771     -     -     -  
 

Net loss on sale of divested businesses

    1,271     -     -     -     -  
 

Other expenses(c)

    7,418     8,101     7,018     5,011     5,799  

Total benefits, claims and expenses

    89,418     96,120     77,073     70,111     72,325  

Income (loss) from continuing operations before income tax expense (benefit) and cumulative effect of change in accounting principles(b)(e)(f)

    (13,770 )   (102,695 )   4,734     16,309     10,717  

Income tax expense (benefit)(g)

    (1,489 )   (9,683 )   125     4,708     2,799  

Income (loss) from continuing operations before cumulative effect of change in accounting principles

    (12,281 )   (93,012 )   4,609     11,601     7,918  

Income (loss) from discontinued operations, net of tax

    (32 )   (7,375 )   2,879     3,549     3,037  

Net income (loss)

    (12,313 )   (100,387 )   7,488     15,150     10,955  

Net income (loss) attributable to AIG

    (10,949 )   (99,289 )   6,200     14,048     10,477  
   

Earnings per common share attributable to AIG:

                               

Basic

                               
 

Income (loss) from continuing operations before cumulative effect of change in accounting principles

    (89.72 )   (701.73 )   26.32     81.16     57.93  
 

Income (loss) from discontinued operations

    (0.76 )   (55.12 )   21.66     26.31     22.76  
 

Cumulative effect of change in accounting principles, net of tax

    -     -     -     0.26     -  
 

Net income (loss) attributable to AIG

    (90.48 )   (756.85 )   47.98     107.73     80.69  

Diluted

                               
 

Income (loss) before cumulative effect of change in accounting principles

    (89.72 )   (701.73 )   26.18     80.76     57.36  
 

Income (loss) from discontinued operations

    (0.76 )   (55.12 )   21.55     26.16     22.50  
 

Cumulative effect of change in accounting principles, net of tax

    -     -     -     0.26     -  
 

Net income (loss) attributable to AIG

    (90.48 )   (756.85 )   47.73     107.18     79.86  

Dividends declared per common share

    -     8.40     15.40     13.00     12.60  
   

Year-end balance sheet data:

                               
 

Total investments

    601,165     636,912     829,468     767,812     665,166  
 

Total assets

    847,585     860,418     1,048,361     979,414     851,847  
 

Commercial paper and other short-term debt(h)

    4,739     15,718     13,114     13,028     9,208  
 

Long-term debt(i)

    136,733     177,485     162,935     135,650     100,641  
 

Total AIG shareholders' equity

    69,824     52,710     95,801     101,677     86,317  
 

Total equity

  $ 98,076   $ 60,805   $ 104,273   $ 107,037   $ 90,076  
   


American International Group, Inc., and Subsidiaries

(a)
Certain reclassifications have been made to prior period amounts to conform to the current period presentation. See Note 1 to the Consolidated Financial Statements.

(b)
In 2009, 2008, 2007, 2006 and 2005, includes other-than-temporary impairment charges on investments of $6.7 billion, $41.9 billion, $4.2 billion, $885 million, and $557 million, respectively. Also 2009, 2008, 2007, 2006 and 2005 results include gains (losses) from hedging activities that did not qualify for hedge accounting treatment, including the related foreign exchange gains and losses, of $1.2 billion, $(3.6) billion, $(1.4) billion, $(1.9) billion, and $2.4 billion, respectively, in revenues and in income from continuing operations before income tax expense. These amounts result primarily from interest rate and foreign currency derivatives that are effective economic hedges of investments and borrowings.

(c)
Includes goodwill impairment charges of $81 million and $3.3 billion, respectively, in Policy acquisition and other insurance expenses and $612 million and $450 million, respectively, in Other expenses for 2009 and 2008.

(d)
In 2009 and 2008, includes $9.8 billion and $11.0 billion, respectively, of interest expense on the FRBNY Credit Facility which was comprised of $8.0 billion and $9.1 billion, respectively, of amortization on the prepaid commitment fee asset associated with the FRBNY Credit Facility and $1.7 billion and $1.9 billion, respectively, of accrued compounding interest.

(e)
Includes catastrophe-related losses of $53 million in 2009, $1.8 billion in 2008, $276 million in 2007 and $3.28 billion in 2005.

(f)
Reduced by fourth quarter charges of $2.3 billion in 2009 and $1.8 billion in 2005 related to the annual review of General Insurance loss and loss adjustment reserves. In 2006 and 2005, includes charges related to changes in estimates for asbestos and environmental reserves of $198 million and $873 million, respectively.

(g)
In 2008, includes a $19.9 billion valuation allowance to reduce AIG's deferred tax asset to an amount AIG believes is more likely than not to be realized, and a $3.7 billion deferred tax expense attributable to the potential sales of foreign businesses. In 2009, includes a $2.9 billion valuation allowance to reduce AIG's deferred tax asset to an amount AIG believes is more likely than not to be realized.

(h)
Includes borrowings of $2.7 billion and $2.0 billion for AIGFP (through Curzon Funding LLC, for AIGFP asset-backed commercial paper conduit) and AIG Funding, Inc. (AIG Funding) respectively, under the CPFF at December 31, 2009 and $6.8 billion, $6.6 billion and $1.7 billion (through Curzon Funding LLC), AIG Funding and ILFC, respectively, at December 31, 2008.

(i)
Includes that portion of long-term debt maturing in less than one year. See Note 14 to the Consolidated Financial Statements.

    See Note 1(y) to the Consolidated Financial Statements for effects of adopting new accounting standards.

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