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AIG · AMERICAN INTERNATIONAL GROUP, INC.

45 filings

10-K

AIG 10-K Annual Reports

AMERICAN INTERNATIONAL GROUP, INC. - 45 annual reports

Filing record · 2016–202610-K1210-Q328-K214

2025
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2025
American International Group, Inc. (AIG) reported solid financial performance for the fiscal year ended December 31, 2025, with net income attributable to common shareholders increasing significantly compared to the prior year. The company generated underwriting income of $2.3 billion, with a combined ratio of 90.1, indicating improved underwriting profitability. AIG demonstrated a commitment to capital return, distributing approximately $6.8 billion to shareholders through share repurchases and dividends. Furthermore, the company's financial strength was recognized with upgrades to its insurance subsidiaries' financial strength ratings from major agencies, reflecting a stronger and more stable financial position. AIG's strategic initiatives in 2025 included key acquisitions and investments designed to enhance its market position and expand its capabilities, such as acquiring renewal rights for Everest's global retail commercial insurance portfolios and announcing strategic investments in Convex Group Limited and Onex Corporation. These actions, combined with robust underwriting results and prudent capital management, position AIG for continued growth and value creation.
Feb 12, 2026
2024
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2024
American International Group, Inc. (AIG) demonstrated a resilient financial performance in 2024, marked by strong underwriting results and strategic portfolio management. The company achieved a combined ratio of 91.8 and an adjusted accident year combined ratio of 88.2, contributing to $1.9 billion in underwriting income and over $7 billion cumulatively from 2021-2024. Net premiums written reached $23.9 billion, supported by growth, retention, and disciplined pricing. AIG made significant progress in completing multi-year strategic initiatives, notably the deconsolidation of Corebridge Financial, Inc., reducing AIG's ownership to 22.7% for $6.0 billion in proceeds. The company also divested its global individual personal travel insurance and assistance business for $600 million, further enhancing financial flexibility. AIG continued its balanced capital management by reducing general borrowings by $1.6 billion, lowering its debt-to-capital ratio to 17.0%, repurchasing $6.6 billion of its own stock, and increasing common stock dividends. These actions underscore AIG's focus on profitable growth, operational efficiency, and shareholder returns while maintaining a strong balance sheet.
Feb 13, 2025
2023
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2023
American International Group, Inc. (AIG) reported a solid performance in its 2023 fiscal year, demonstrating progress on its strategic initiatives aimed at profitable growth and operational excellence. The company successfully divested two non-core businesses, Validus Re and Crop Risk Services, for significant proceeds, strengthening its balance sheet and allowing for a more focused portfolio. AIG also continued to advance the separation of its Life and Retirement business, Corebridge Financial, Inc., reducing its ownership stake to 52.2% and generating substantial proceeds. Operationally, AIG's General Insurance segment showed improved underwriting results, with a combined ratio of 90.6%, reflecting disciplined underwriting and rate increases. Shareholder returns were supported through substantial common stock repurchases and dividend payments, signaling confidence in the company's financial strength and future prospects. AIG's focus remains on achieving sustainable, profitable growth by leveraging its global insurance franchises and maintaining strong financial flexibility.
Feb 14, 2024
2022
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2022
American International Group, Inc. (AIG) reported a strong year in 2022, marked by significant strategic advancements and improved financial performance. The company successfully executed its capital management plan, including the landmark initial public offering (IPO) of Corebridge Financial, Inc., which was the largest U.S. IPO of 2022. AIG also achieved its "AIG 200" cost savings goal ahead of schedule. The General Insurance segment demonstrated robust underwriting results, achieving a combined ratio of 91.9, a significant improvement from 95.8 in 2021, and consistently maintaining a sub-100 combined ratio throughout all quarters of 2022. Financially, AIG highlighted strong shareholder equity and liquidity sources. The company reduced its general borrowings by $9.4 billion and repurchased $5.1 billion of its common stock, alongside paying $1.0 billion in dividends. The strategic partnership with BlackRock Inc. to manage substantial assets for both AIG and Corebridge further underscores AIG's focus on optimizing its financial operations and positioning for future value creation.
Feb 17, 2023
2021
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2021
American International Group, Inc. (AIG) demonstrated a strong financial performance in its 2021 fiscal year, marked by significant improvements in its General Insurance segment and strategic progress in separating its Life and Retirement business. The company achieved a combined ratio of 95.8 in General Insurance, a notable improvement from 104.3 in the prior year, driven by disciplined underwriting and profitable growth initiatives. Simultaneously, AIG advanced its strategic imperative to separate its Life and Retirement business, including a 9.9% equity stake sale to Blackstone, aiming to establish two market-leading companies. Operationally, AIG continued to execute its multi-year AIG 200 program focused on modernizing its infrastructure and enhancing customer experiences. The company also returned substantial capital to shareholders and creditors, totaling $7.7 billion through dividends, share repurchases, and debt reduction. AIG's priorities for 2022 emphasize continued underwriting excellence, clear risk appetite, progress on the Life and Retirement separation, and a focus on profitable growth across its businesses.
Feb 17, 2022
2020
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2020
American International Group, Inc. (AIG) reported a net loss attributable to common shareholders of $5.97 billion for the year ended December 31, 2020, a significant shift from a net income of $3.33 billion in 2019. This decline was primarily driven by higher catastrophe losses in General Insurance, impacted by COVID-19 and other events, as well as unfavorable impacts from COVID-19 mortality in Life and Retirement. Lower investment returns due to yield compression and widening credit spreads also contributed to the loss. The company announced its intention to separate its Life and Retirement business in October 2020, a strategic move aimed at maximizing shareholder value by establishing two market-leading companies. Despite the net loss, AIG highlighted continued underwriting discipline and expense management as key drivers for ongoing improvement. The company maintained strong capitalization with $66.36 billion in shareholders' equity as of December 31, 2020, and had $15.0 billion in liquidity sources, demonstrating financial flexibility. The General Insurance segment experienced an underwriting loss of $1.02 billion in 2020, compared to an underwriting income of $89 million in 2019, with North America's underwriting loss increasing significantly due to higher catastrophe losses. The Life and Retirement segment reported adjusted pre-tax income of $3.53 billion, largely stable compared to the prior year, showcasing resilience in its diverse product portfolio. The company's priorities for 2021 include the separation of the Life and Retirement business, focusing on business mix and targeted growth, underwriting excellence, and optimizing risk management.
Feb 19, 2021
2019
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2019
In 2019, American International Group, Inc. (AIG) demonstrated a significant turnaround, achieving full-year underwriting profitability in its General Insurance segment with a combined ratio of 99.6%, an improvement from 111.4% in 2018. The Life and Retirement segment continued to deliver solid returns, with adjusted pre-tax income rising to $3.5 billion from $3.2 billion in the prior year. Key financial highlights include a consolidated net income attributable to AIG common shareholders of $3.3 billion, a substantial improvement from a net loss in the prior year. The company also announced an agreement to sell a controlling financial interest in Fortitude Group Holdings, LLC, the reinsurer of its legacy portfolio, anticipating closure in mid-2020, which is expected to further strengthen its financial position. The company's strategic priorities for 2020 focus on building on its momentum through business mix optimization, targeted growth, and continued execution of efficiency initiatives under its AIG 200 program. AIG remains committed to underwriting excellence, disciplined capital management, and fostering leadership and talent within the organization.
Feb 21, 2020
2018
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2018
American International Group, Inc. (AIG) reported its financial results for the year ended December 31, 2018. The company continued to execute its strategy focused on profitable growth by enhancing underwriting capabilities, optimizing reinsurance structures, and investing in talent. AIG highlighted a diverse mix of businesses, including General Insurance and Life and Retirement segments, with operations spanning over 80 countries. The company experienced a net loss attributable to AIG of $6 million in 2018, a significant improvement from the $6,084 million net loss in 2017. This improvement was primarily driven by lower catastrophe losses and reduced unfavorable prior year loss reserve development in the General Insurance segment, along with lower net realized capital losses. However, lower investment returns and higher general operating expenses, partially due to acquisitions, impacted profitability. The company also completed several strategic acquisitions in 2018, including Validus and Glatfelter Insurance, to strengthen its offerings and market position.
Feb 15, 2019
2017
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2017
In 2017, American International Group, Inc. (AIG) demonstrated a strategic shift towards underwriting excellence and profitable growth, evidenced by organizational changes aimed at a more focused business structure comprising General Insurance and Life & Retirement. The company reported a net loss of $6.08 billion in 2017, primarily impacted by a $6.7 billion tax charge related to the Tax Cuts and Jobs Act of 2017. Excluding this significant tax charge, net income would have shown an increase compared to the prior year, driven by improved results in General Insurance due to lower prior year loss reserve development and the impact of the Tax Act. The Life and Retirement segment also showed growth. AIG also advanced its strategy to de-risk its legacy portfolio through significant reinsurance transactions in early 2018, consolidating the bulk of its run-off business. Looking ahead, AIG is focused on balancing and diversifying its product mix, investing in technology and innovation, empowering underwriting talent, and managing capital efficiently. The company also announced a significant acquisition in January 2018, agreeing to purchase Validus Holdings, Ltd. for $5.6 billion to strengthen its General Insurance business.
Feb 16, 2018
2016-A
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2016
This filing is an amendment to AMERICAN INTERNATIONAL GROUP, INC. (AIG)'s 2016 Annual Report on Form 10-K, specifically addressing Part III of the report. It details information regarding the company's directors, executive officers, corporate governance, executive compensation, and security ownership. Key aspects include the composition of the Board of Directors, with a focus on director nominees and their qualifications, and a detailed breakdown of the executive compensation structure for 2016, emphasizing the balance between base salary, short-term, and long-term incentives. The report highlights performance-based compensation tied to Total Shareholder Return (TSR) and Option Adjusted Spreads (OAS), alongside robust clawback and share ownership policies designed to align executive interests with those of shareholders and manage risk. The filing also provides transparency into director compensation, non-qualified deferred compensation plans, and potential payments upon termination of employment for named executive officers. Overall, this amendment provides critical governance and compensation-related information for investors to assess AIG's leadership, risk management practices tied to compensation, and alignment with shareholder value creation as of the end of the 2016 fiscal year.
Apr 27, 2017
2016
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2016
American International Group, Inc. (AIG) filed its 2016 Form 10-K on February 23, 2017, detailing a year of significant strategic repositioning and operational adjustments. The company completed the reorganization of its financial results into a new modular management framework, designed to enhance transparency, accountability, and efficiency. This report highlights key divestitures and asset sales throughout 2016, including the sale of United Guaranty Corporation for approximately $3.3 billion and controlling interests in Ascot Underwriting Holdings Ltd. for $1.1 billion. A significant adverse development in prior year loss reserves, particularly within Commercial Insurance, impacted net income, with pre-tax charges of $5.6 billion in 2016 compared to $3.3 billion in 2015. Despite these challenges, AIG made substantial capital returns to shareholders, distributing $30.4 billion through dividends and share repurchases since the beginning of 2014, with an additional $4.7 billion authorization for future repurchases at year-end 2016.
Feb 23, 2017
2015
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2015
American International Group, Inc. (AIG) in 2015 operated as a diversified global insurance organization with two main segments: Commercial Insurance and Consumer Insurance. The company generated total revenues of $58.3 billion, with a net income attributable to AIG of $2.2 billion. A significant strategic focus for 2016 was announced in January 2016, aiming to create a leaner, more profitable, and focused insurer by reorganizing into modular business units and introducing a new Legacy Portfolio to maximize value from non-strategic assets. Key priorities for 2016 included improving Return on Equity (ROE), reducing general operating expenses, improving the Commercial Insurance Property Casualty accident year loss ratio, and returning excess capital to shareholders. Financially, 2015 saw a decrease in pre-tax operating income for both Commercial Insurance and Consumer Insurance segments compared to 2014. Commercial Insurance was impacted by higher underwriting losses in Property Casualty due to adverse prior year loss reserve development and lower net investment income. Consumer Insurance experienced lower net investment income, less favorable actuarial assumption updates, less favorable mortality in Life, and an underwriting loss in Personal Insurance. The company continued to focus on capital management, with $10.7 billion repurchased in AIG Common Stock during 2015 and an increase in its share repurchase authorization.
Feb 19, 2016
2014
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2014
American International Group, Inc. (AIG) reported its 2014 fiscal year results, highlighting a strategic shift towards an integrated "One AIG" operational structure with two primary segments: Commercial Insurance and Consumer Insurance. The company saw its President and CEO transition with Peter D. Hancock taking the helm. Financial performance indicated mixed results across segments, with Commercial Insurance experiencing improved underwriting results partially offset by reduced net investment income, while Consumer Insurance faced challenges from lower net investment income but saw growth in key retirement products. AIG continued its focus on capital management, reducing debt significantly in 2014 and increasing its share repurchase authorization. The company also completed the sale of its aircraft leasing subsidiary, ILFC, to AerCap, receiving substantial cash and equity in the latter. Despite ongoing industry trends like low interest rates and competitive pressures, AIG remains committed to improving its cost structure, enhancing its technology infrastructure, and driving sustainable profitability by focusing on customer value and strategic growth initiatives.
Feb 20, 2015
2013
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2013
This 10-K filing for AMERICAN INTERNATIONAL GROUP, INC. (AIG) for the fiscal year ended December 31, 2013, highlights the company's strategic progress and financial performance. AIG reported a significant increase in income from continuing operations before income tax, reaching $9.4 billion compared to $2.9 billion in the prior year, driven by improved results across its core insurance segments and a reduction in debt. The company successfully executed on its strategic objectives, including a focus on growth in higher-value lines of business, enhancing underwriting excellence, and disciplined expense management. Key segments, AIG Property Casualty and AIG Life and Retirement, both demonstrated improved pre-tax operating income. The company also made strides in capital management by reducing long-term debt and authorizing significant share repurchases. AIG is also progressing with the planned sale of its aircraft leasing business, ILFC, to AerCap, a move expected to further sharpen business focus and optimize asset redeployment.
Feb 20, 2014
2012
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2012
American International Group, Inc. (AIG) filed its 2012 Form 10-K on February 21, 2013, highlighting significant progress in repaying government support and achieving a third consecutive year of profitability. The company successfully repaid all governmental financial support received during the 2008 economic crisis, culminating in the Department of the Treasury selling its remaining stake in AIG common stock. Financially, AIG demonstrated improved performance across its core segments: AIG Property Casualty reported enhanced operating income and favorable pricing trends, while AIG Life and Retirement saw substantial growth in assets under management driven by net flows and market appreciation, alongside effective management of the low-interest-rate environment. The Mortgage Guaranty business also showed strong growth in new insurance written and improving credit trends. Key strategic initiatives in 2012 included the announcement of the sale of ILFC, final distributions from Maiden Lane II and III assets, and the sale of AIG's remaining interest in AIA Group Limited, all contributing to strengthened financial flexibility and capital management. The company also repurchased $13 billion of its common stock using proceeds from asset sales. Looking ahead to 2013, AIG's priorities include strengthening core business operations, completing the ILFC sale, enhancing investment yields while maintaining credit quality, and managing capital and expenses more efficiently. The company faces ongoing challenges from the low-interest-rate environment and economic uncertainties but is focused on leveraging its scale, driving standardization, and optimizing its investment portfolio. The report also details significant legal proceedings and regulatory changes, including the impact of the Dodd-Frank Act and potential designation as a Systemically Important Financial Institution (SIFI), which could affect capital requirements and business operations.
Feb 21, 2013
2011-A2
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2011
This filing represents Amendment No. 2 to American International Group, Inc. (AIG)'s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. The amendment is primarily to file two additional exhibits (99.1 and 99.2) related to TARP Standards for Compensation and Corporate Governance, specifically CEO and CFO certifications under the Emergency Economic Stabilization Act of 2008. No other financial or operational aspects of the original 2011 10-K filing are altered by this amendment. For investors, this filing is procedural and does not introduce new financial performance data or business updates for AIG for the 2011 fiscal year. The core financial health and operational review would be found in the original 10-K filing. This amendment simply fulfills a regulatory requirement concerning executive certifications related to its historical government support under TARP.
Mar 30, 2012
2011-A
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2011
This filing is an amendment to the 2011 Annual Report for AMERICAN INTERNATIONAL GROUP, INC. (AIG). The amendment primarily provides audited financial statements for AIA Group Limited, a subsidiary, for the year ended November 30, 2011. The core financial performance for AIG itself is not detailed within this specific amendment, as it focuses on supplementary subsidiary information. Investors should note that AIA Group reported a net profit of $1.608 billion for the year ended November 30, 2011, a decrease from $2.710 billion in the prior year. Revenue also declined to $14.388 billion from $18.394 billion in the previous year, reflecting a challenging period for the Asian market operations. The company's financial position showed total assets of $114.461 billion and total liabilities of $93.046 billion, resulting in total equity of $21.415 billion as of November 30, 2011. Key highlights from AIA Group's financial statements include a significant increase in deferred acquisition and origination costs to $12.818 billion, indicating substantial new business acquisition. The company's investment portfolio remains substantial, with debt securities and equity securities totaling $67.952 billion and $19.012 billion, respectively. The filing also details various risk management practices and sensitivities, including exposure to market and credit risks. The solvency ratios for AIA Co. and AIA-B were robust at 311% and 297% respectively, well above regulatory minimums.
Feb 27, 2012
2011
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2011
AMERICAN INTERNATIONAL GROUP, INC. (AIG) reported its fiscal year 2011 results, marking a significant turnaround following the 2008 financial crisis. A pivotal recapitalization event in January 2011, involving significant government support and equity issuance, allowed AIG to repay substantial debt facilities, including the FRBNY Credit Facility. The company reported a net income of $18.5 billion for 2011, a substantial improvement from the prior year's net income of $10.0 billion and a significant recovery from the $12.3 billion net loss in 2009. This turnaround was driven by the release of a substantial portion of its deferred tax asset valuation allowance, improved prior year loss development, and decreased interest expenses following debt repayments. The company's core insurance businesses, Chartis and SunAmerica, demonstrated signs of operational recovery. Chartis, the property and casualty segment, returned to pre-tax income in 2011 after a loss in 2010, supported by improved underwriting results, though impacted by record catastrophe losses. SunAmerica, focused on life insurance and retirement services, also showed resilient performance, with increased sales in variable annuities and continued strategic growth in its distribution network. Looking ahead, AIG's priorities for 2012 include strengthening its core businesses, managing capital and expenses efficiently, preparing for potential regulatory oversight by the Federal Reserve, and optimizing its operational structure. The company continues to navigate complex regulatory environments and market conditions, including the ongoing impact of the Dodd-Frank Act and international regulatory reforms.
Feb 23, 2012
2010-A
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2010
This is Amendment No. 1 (Form 10-K/A) to American International Group, Inc.'s annual report for the fiscal year ended December 31, 2010, filed March 31, 2011. The amendment was filed solely to add three exhibits required under the TARP Standards for Compensation and Corporate Governance: Exhibit 31 (Rule 13a-14(a)/15d-14(a) certifications) and Exhibits 99.1 and 99.2 (Section 111(b)(4) EESA certifications by CEO Robert H. Benmosche and CFO David L. Herzog). No other Item of the original 2010 10-K is affected, and the financial statements, business description, risk factors, and results of operations are not included in this filing. For investors, the document provides limited financial information. It reports that the aggregate market value of common equity held by non-affiliates was approximately $4.397 billion, based on the closing price at the end of the second fiscal quarter of 2010, and that 1,795,503,716 shares of common stock were outstanding as of January 31, 2011. AIG is a Delaware corporation headquartered at 180 Maiden Lane, New York, and is a large accelerated filer. Its listed securities on the NYSE include common stock, stock purchase rights, warrants expiring January 19, 2021, several junior subordinated debenture series, and corporate units. The certifications focus on governance and executive compensation. The officers certify that the Compensation and Management Resources Committee reviewed senior executive and employee compensation plans for risk, that clawback provisions apply to bonuses based on inaccurate financial statements, that golden parachute payments and tax gross-ups were prohibited, and that bonus payments were limited and approved by the Office of the Special Master for TARP Executive Compensation. Investors seeking earnings, balance sheet, or business performance data should consult the original 2010 Form 10-K.
Mar 31, 2011
2010
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2010
AMERICAN INTERNATIONAL GROUP, INC. (AIG) filed its annual report on Form 10-K for the fiscal year ended December 31, 2010, on February 24, 2011. The filing highlights significant progress in AIG's recapitalization plan, including the repayment of its credit facility with the Federal Reserve Bank of New York and a substantial reduction in its debt. The company reported improved income from continuing operations before income taxes of $17.9 billion in 2010, a significant turnaround from a loss of $14.3 billion in 2009. This improvement was largely driven by substantial divestiture activity, including the successful initial public offering of AIA Group Limited and the sale of American Life Insurance Company (ALICO), which generated significant gains. AIG's core insurance operations, particularly its property and casualty segment (Chartis), continued to show mixed results. Chartis recorded a substantial reserve strengthening charge of $4.2 billion in the fourth quarter of 2010, primarily related to its asbestos, excess casualty, and workers' compensation lines, reflecting adverse development in prior accident years. However, the company is implementing strategies to address historical loss reserve experience and improve its business mix. The life insurance and retirement services segment (SunAmerica) saw an increase in operating income, driven by higher net investment income and a favorable unlocking of deferred policy acquisition costs.
Feb 24, 2011
2009-A2
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2009
This filing, an amendment to AIG's 2009 Form 10-K, focuses exclusively on providing expanded details regarding the incentive compensation awards for named executive officers in 2009. The key takeaway for investors is that these awards were tied to specific, objective performance metrics crucial for AIG's stabilization and restructuring efforts, as overseen by a Special Master. The metrics covered areas such as risk management, capital preservation, debt repayment, talent retention, and the performance of key business segments like Chartis and ALICO. Overall, the amendment indicates that the executive team's incentive compensation was largely awarded at the target level, reflecting substantial achievement or exceeding performance targets. This disclosure provides transparency into how executive pay was determined during a critical period for AIG, linking compensation directly to the company's financial health and strategic objectives.
Aug 24, 2010
2009-A
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2009
This filing is Amendment No. 1 (Form 10-K/A) to American International Group's 2009 Annual Report on Form 10-K, filed March 31, 2010. It contains no financial statements, results, or business disclosures. Its sole purpose is to add two exhibits required by the TARP Standards for Compensation and Corporate Governance: Exhibit 99.1, a certification by CEO Robert H. Benmosche, and Exhibit 99.2, a certification by CFO David L. Herzog. Both certify under Section 111(b)(4) of the Emergency Economic Stabilization Act of 2008 that the Compensation and Management Resources Committee reviewed senior executive and employee compensation plans for risk, that clawback provisions and golden parachute, gross-up, and luxury expenditure restrictions are in place, and that AIG has substantially complied with its Treasury agreements for the period from June 15, 2009 through December 31, 2009. For investors, the amendment's main value is governance context. It confirms AIG's continued compliance with conditions attached to U.S. government TARP support, including limits on bonuses and perquisites for the most highly compensated employees and a commitment to permit non-binding shareholder resolutions on senior executive pay. The filing does not disclose AIG's 2009 revenues, earnings, balance sheet, or compensation amounts. Those details must be found in the original 2009 Form 10-K and related proxy materials. The amendment also states that no other Item of the original 2009 Form 10-K is affected, so the rest of that report remains the operative source for AIG's financial condition and risk profile.
Mar 31, 2010
2009
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2009
In the fiscal year ended December 31, 2009, American International Group, Inc. (AIG) continued its efforts to stabilize and restructure its operations following significant market turmoil. The company reported a net loss attributable to AIG of $10.9 billion, a substantial improvement from the $99.3 billion net loss in 2008, largely due to reduced other-than-temporary impairment charges and positive valuation adjustments in its Financial Services segment, although it still incurred significant interest expenses related to its Federal Reserve Bank of New York credit facility. AIG made progress in its asset disposition plan, selling several businesses and reducing its debt obligations under the FRBNY Credit Facility. The company's performance was heavily influenced by its ongoing restructuring and the significant financial support received from the U.S. government, with the U.S. Treasury effectively controlling the company through its equity stake. Key business segments, including General Insurance (Chartis) and its Life Insurance operations, showed signs of operational resilience, while the Financial Services segment, particularly AIG Financial Products (AIGFP), continued to wind down riskier portfolios. The report highlights the company's focus on stabilizing its core businesses, repaying government support, and managing liquidity amid ongoing market challenges and regulatory scrutiny.
Feb 26, 2010
2008-A2
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2008
This filing is Amendment No. 1 to AIG's 2008 Form 10-K, filed April 30, 2009, and it is narrow in scope. It was filed solely to add the Part III information (directors, executive compensation, security ownership, related-party transactions, and accounting fees) that AIG had not included in its original annual report, to amend the Item 15 exhibit list, and to file three additional compensation exhibits. The financial statements, business description, and risk disclosures are not included and are unaffected. Investors should read it primarily as a governance and pay-disclosure document rather than as a source of new financial results. The most important disclosures concern government control and compensation restraints. Following the September 2008 Federal Reserve credit facility, the U.S. Treasury holds Series C preferred stock (voting and dividend rights) and a warrant, and together these give the government 79.9% of AIG's voting power and total dividends payable on an as-converted basis. The $40 billion Series D preferred issued to Treasury was exchanged in April 2009 for Series E preferred, and a $29.835 billion equity capital commitment facility was established through Series F preferred. Common shareholders are therefore diluted and subordinated to government-held instruments. Ownership is also concentrated: the Starr Group holds about 10.06% of common stock, and directors and executives hold roughly 0.31% as a group. Compensation is sharply reduced. The CEO, Edward Liddy, receives a $1 salary and no cash or equity incentive pay. Annual performance bonuses for 2008 were waived by the Leadership Group, and the 2008 Summary Compensation Table is dominated by accounting expense for awards that were later forfeited or rescinded (for example, $24.5 million for former CEO Robert Willumstad's rescinded restricted stock). Severance for named executives has been eliminated, and ARRA rules now restrict bonuses and termination payments for the top executives. Non-management director retainers were cut in 2009, and director deferred stock unit awards were eliminated. Because the 2008 Leadership Group performance pools were effectively zero, most of AIG's 2008 executive compensation reported here reflects legacy awards rather than current earnings performance.
Apr 30, 2009
2008-A
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2008
This 10-K/A filing from American International Group, Inc. (AIG), dated March 13, 2009, is an amendment primarily focused on correcting the Exhibit List in Part IV. It covers the fiscal year ended December 31, 2008, a period of significant financial turmoil. While the core financial results and business operations are not altered by this specific amendment, the filing context is crucial for investors. As a large accelerated filer, AIG was navigating the challenges of the late 2008 financial crisis, which would have implications across its vast insurance and financial services operations.
Mar 13, 2009
2008
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2008
American International Group, Inc. (AIG) filed its 2008 10-K on March 2, 2009, detailing a year marked by unprecedented liquidity pressures and a critical reliance on government support. The company faced substantial challenges stemming from its AIG Financial Products (AIGFP) division's exposure to credit default swaps and its securities lending program, which led to significant collateral calls and liquidity demands. Despite a substantial cash position at the beginning of the third quarter of 2008, AIG's inability to access public markets for funding and rating agency downgrades necessitated an emergency intervention by the Federal Reserve Bank of New York (NY Fed) and the U.S. Department of the Treasury. The report highlights the approval of a secured credit facility from the NY Fed, totaling $85 billion initially and later amended to $60 billion, along with a $40 billion issuance of Series D Preferred Stock to the Treasury. These measures were crucial for AIG's survival and its ongoing restructuring efforts, which involve divesting non-core businesses to repay the government's financial support. The filing underscores the severe impact of market conditions on AIG's financial results, including significant realized and unrealized losses, particularly from its AIGFP operations and other investments, leading to a substantial net loss for the year.
Mar 2, 2009
2007
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2007
American International Group, Inc. (AIG) reported significant financial results for the fiscal year ended December 31, 2007. The company experienced a substantial decline in net income, primarily driven by a $11.5 billion pre-tax charge related to unrealized market valuation losses on AIG Financial Products Corp.'s (AIGFP) super senior credit default swap portfolio and a $643 million other-than-temporary impairment charge on AIGFP's investment securities. These charges, coupled with broader disruptions in the global credit markets and the U.S. housing market, significantly impacted the company's performance, leading to a reported net income of $6.2 billion, a decrease from $14.0 billion in the prior year. The company's diverse business segments, including General Insurance, Life Insurance & Retirement Services, Financial Services, and Asset Management, collectively generated total revenues of $110 billion, a slight decrease from the previous year. The General Insurance segment showed resilience with a slight increase in operating income, while the Life Insurance & Retirement Services segment experienced a decline primarily due to increased realized capital losses. The Financial Services segment incurred a significant operating loss, heavily influenced by the AIGFP charges. The company also highlighted ongoing efforts to remediate internal control deficiencies, particularly related to the AIGFP valuation, and a material weakness in internal control over financial reporting that was identified as of December 31, 2007.
Feb 28, 2008
2006
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2006
In fiscal year 2006, American International Group, Inc. (AIG) demonstrated significant financial recovery and growth, particularly in its General Insurance and Life Insurance & Retirement Services segments. The company reported total revenues of $113.2 billion and a net income of $14.0 billion, a substantial increase from the previous year, driven by improved underwriting results and robust investment income. Notably, General Insurance operating income saw a significant jump to $10.4 billion, largely due to the absence of major catastrophe losses experienced in 2005 and improved underwriting performance across its divisions. AIG's Financial Services segment experienced a decrease in operating income, primarily impacted by the unfavorable accounting treatment of certain hedging activities. The company continued its strategic expansion, with foreign operations contributing significantly to the Life Insurance & Retirement Services segment. Despite facing ongoing regulatory scrutiny and a material weakness in internal controls related to income tax accounting, AIG made progress in remediating other control weaknesses and affirmed its commitment to improving financial reporting practices. The company's strong capital position and diversified business model position it well for continued operations, although investors should remain aware of the ongoing legal and regulatory matters.
Mar 1, 2007
2005-A
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2005
This 10-K filing from American International Group, Inc. (AIG) for the fiscal year ended December 31, 2005, filed on June 19, 2006, is an amendment to its original filing. AIG operates globally across General Insurance, Life Insurance & Retirement Services, Financial Services, and Asset Management segments. The filing highlights significant restatements of financial statements due to accounting practice investigations, impacting prior years' results. Despite substantial catastrophe losses and increased reserves in 2005, AIG reported an increase in income before income taxes, largely driven by strong performance in its Life Insurance & Retirement Services and Financial Services segments.
Jun 19, 2006
2004-A
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 2004
American International Group's Form 10-K/A (Amendment No. 1) for fiscal 2004, filed March 16, 2006, restates AIG's previously reported results in two stages: a First Restatement (originally disclosed in the May 2005 10-K) and a Second Restatement announced November 9, 2005. Restated 2004 net income is $9.84 billion versus $11.05 billion previously reported, and restated shareholders' equity at year-end 2004 is $79.67 billion versus $82.87 billion. Total assets were restated to $801.1 billion from $804.6 billion. The filing attributes the restatements to insufficient risk transfer in certain reinsurance and insurance transactions (Union Excess, Gen Re, Richmond), improper net investment income and capital gains recognition, misapplied FAS 133 hedge accounting, deferred tax errors, and DBG balance-sheet reconciliation failures. Management identified five material weaknesses in internal control over financial reporting as of December 31, 2004, and PwC issued an adverse opinion on internal control. The filing also discloses a February 2006 global settlement with the SEC, DOJ, NYAG and NY Department of Insurance totaling about $1.64 billion in payments, with an approximately $1.15 billion after-tax charge to be recorded in Q4 2005. Separately, a Milliman-led reserve review is expected to produce a roughly $1.2 billion after-tax charge in Q4 2005, reflecting an approximately $1.8 billion net reserve increase. Ratings were downgraded during 2005 (S&P to AA from AAA, Moody's to Aa2, Fitch to AA), which has raised collateral requirements, with about $1.16 billion already posted and roughly $962 million more callable on a further downgrade. For investors, the key takeaways are the magnitude of the earnings and equity restatement, the severity of the control failures, the cost of regulatory resolution, and the reserve and ratings pressures that shaped the company's 2005 outlook. Note that this is a restated 2004 report, so its figures describe a prior period rather than current results.
Mar 16, 2006
2005
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2005
American International Group, Inc. (AIG) presents its 2005 10-K filing, highlighting robust revenue growth driven by its General Insurance and Life Insurance & Retirement Services segments. The company experienced a significant increase in net income year-over-year, reflecting the positive impact of strong net investment income and operational growth across its diverse business lines, including Financial Services and Asset Management. However, the report also details material weaknesses in internal controls over financial reporting that led to financial statement restatements for prior years. These weaknesses, particularly concerning balance sheet reconciliations, derivative accounting, and income tax accounting, led to a substantial charge for settlements with regulatory bodies in 2005. While AIG has made progress in addressing these issues and is implementing remediation plans, investors should be aware of the ongoing efforts to strengthen internal controls and the potential implications of past restatements and regulatory scrutiny on the company's competitive position and operational stability.
Mar 16, 2006
2004
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2004
American International Group, Inc. (AIG) filed its 2004 Form 10-K on May 31, 2005. This filing details a complex operational and financial landscape, heavily influenced by significant restatements of prior financial statements due to accounting errors and changes in estimates. The company operates across diverse segments, including General Insurance, Life Insurance & Retirement Services, Financial Services, and Asset Management. While AIG reported substantial revenues and operating income, the report highlights major investigations into its business practices, particularly concerning non-traditional insurance products and brokerage practices, leading to heightened regulatory scrutiny. The company is also grappling with the consequences of credit rating downgrades, which are impacting borrowing costs and its competitive positioning. Investors should note the extensive restatements, the ongoing legal and regulatory investigations, and the impact of credit rating downgrades as key factors affecting AIG's current and future financial health.
May 31, 2005
2003
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2003
American International Group, Inc. (AIG) reported a strong financial performance for the fiscal year ended December 31, 2003. The company experienced significant revenue growth driven by its General Insurance and Life Insurance segments, with net premiums written and net investment income showing robust increases. AIG's General Insurance operations, despite a notable loss reserve charge in the prior year, demonstrated a strong recovery, with underwriting profit returning and a combined ratio improving to 92.4%. The Life Insurance segment also saw substantial growth in operating income, largely due to international expansion and favorable investment results. The company's diversified business model, spanning General Insurance, Life Insurance, Financial Services, and Retirement Services & Asset Management, continues to be a key strength, mitigating risks associated with any single segment. Financial Services, particularly aircraft leasing (ILFC) and capital markets, contributed positively, although aircraft remarketing faced market challenges. AIG's proactive approach to managing market risk through various hedging strategies and its strong capital position provide a solid foundation for continued growth. The company anticipates further premium growth and positive cash flow for investments in the upcoming year, supported by ongoing strategic initiatives and market recovery.
Mar 15, 2004
2002
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2002
AMERICAN INTERNATIONAL GROUP, INC. (AIG) filed its 10-K for the fiscal year ended December 31, 2002, on March 31, 2003. The company reported revenues of $67.5 billion, a 9.3% increase from 2001, primarily driven by growth in its general insurance segment. However, significant realized capital losses of $2.44 billion and a substantial $2.8 billion loss reserve charge in the general insurance segment impacted profitability, leading to a reported net income of $5.52 billion, a modest increase from the prior year. The company's diverse operations include general insurance, life insurance, financial services, and retirement savings & asset management. AIG's financial services segment, particularly its aircraft leasing division (ILFC), showed resilience despite challenges in the airline industry, benefiting from a significant portion of its revenue derived from foreign carriers. The life insurance segment experienced growth, driven by strong international performance, while the retirement savings and asset management segment faced headwinds due to volatile equity markets. Management emphasized that adjusted operating income, excluding unusual items like the loss reserve charge and realized capital losses, demonstrated stronger underlying business performance, with an adjusted growth of 12.5% in income before taxes. The company highlighted its strong capital position and liquidity, supported by significant invested assets across its global operations.
Mar 31, 2003
2001
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2001
This filing details AMERICAN INTERNATIONAL GROUP, INC.'s (AIG) financial performance for the fiscal year ended December 31, 2001. A significant event during the year was the acquisition of American General Corporation (AGC) on August 29, 2001, accounted for under the pooling of interests method, which required restating prior financial information. The report highlights AIG's diversified business operations across general insurance, life insurance, financial services, and retirement savings & asset management. While the company experienced a net income decrease of 19.2% to $5.36 billion, primarily due to acquisition-related charges and World Trade Center (WTC) losses, core income excluding these items saw a 13.0% increase, indicating strong underlying business growth. The company's robust investment portfolio and broad geographic reach continue to be key strengths.
Apr 1, 2002
2000
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 2000
American International Group, Inc. (AIG) filed its 2000 10-K on April 2, 2001, showcasing a strong year of growth across its diverse insurance and financial services operations. The company demonstrated robust top-line growth, with revenues increasing significantly year-over-year, driven by strong performance in both its General Insurance and Life Insurance segments. Key drivers included expanding premium income, increased net investment income, and solid operating income from its financial services and asset management divisions. Operationally, AIG maintained stable combined ratios in its General Insurance segment, reflecting disciplined underwriting, while its Life Insurance segment saw continued premium growth, particularly from international operations. The company's diverse business model, spanning property and casualty insurance, life insurance, and financial services, along with a significant global footprint, positions it well for sustained performance. Investors can note AIG's commitment to reinvesting earnings and managing its robust capital position, supporting its growth strategy.
Apr 2, 2001
1999
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 1999
American International Group's 1999 Form 10-K shows a company at a high point of growth and profitability. Net income rose 18.1% to $5.06 billion (diluted EPS $3.23, up from $2.75), on revenues of $40.66 billion (up 13.9%) and total assets of $268.2 billion (up 14.8%). The 1999 results were lifted by the full-year consolidation of Transatlantic and 21st Century and by the January 1, 1999 pooling merger with SunAmerica, which is why the prior-year figures were restated. Capital funds reached $33.3 billion, up $3.2 billion, though unrealized investment appreciation fell $1.65 billion as US interest rates rose. The core insurance franchise remained disciplined. General insurance posted a 96.3% combined ratio and $669 million of adjusted underwriting profit, while the domestic statutory combined ratio improved to 97.7%. Life insurance is the largest profit engine, with $2.86 billion of operating income, roughly 66% of it from overseas operations, and foreign operations supply about 92% of life premium income. Loss reserves were strengthened for asbestos and environmental claims, and the reserve development table shows cumulative redundancies in recent years, though the filing flags that asbestos and environmental exposure remains uncertain. Investors should weigh the growing financial services exposure and balance-sheet leverage. Financial services and asset management carry about $62.5 billion of invested assets, including derivatives and trading positions run by AIGFP and AIGTG, and total borrowings are $33.0 billion, of which $29.7 billion is non-recourse or matched. ILFC's aircraft commitments are large, at roughly $16.4 billion for 331 aircraft, and about 32% of consolidated assets sit in foreign countries. Overall, the filing describes a well-capitalized, highly profitable insurer whose earnings depend on continued international life growth and on the performance of its trading and leasing businesses.
Mar 30, 2000
1998
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 1998
American International Group's 1998 10-K shows a company at scale: total assets of $194.4 billion (up 18.6% from $164.0 billion), total revenues of $33.3 billion (up 8.8%), and net income of $3.77 billion (up 13.0%), with diluted EPS of $3.57 versus $3.15 in 1997. Results were driven by strong growth in life insurance, where foreign operations (notably ALICO, AIA and Nan Shan) generated 92.8% of premium income, and by financial services operating income, which rose 30.2% to $913 million on ILFC aircraft leasing. General insurance was consistently profitable, with a 96.4% combined ratio, and a sizable catastrophe loss ($110 million net) did not disturb that result. Reserve development was favorable overall in 1998, with a net redundancy of $281 million on prior-year reserves. The main investor considerations are balance-sheet complexity and concentration risk. Financial services liabilities and borrowings of $30.7 billion are largely non-recourse or matched, but AIG guarantees AIGFP's debt, and derivative notional exposure reached roughly $345 billion in swaps at AIGFP and $124 billion at AIGTG. Roughly 39% of consolidated assets sit outside the United States, and asbestos and environmental reserves of $865 million net remain subject to litigation uncertainty that management acknowledges could be material. Asian economic stress also pushed down credit quality in parts of the foreign fixed-income portfolio, with about 15% of foreign fixed income rated below investment grade or unrated. Looking ahead, the pending January 1, 1999 merger with SunAmerica (a pooling of interests, with about 187.5 million AIG shares issued) and the full consolidation of Transatlantic and 20th Century will reshape the company's scale and mix. The filing's pro forma figures place combined 1998 revenues at $35.9 billion and net income at $4.28 billion, with the Year 2000 remediation cost reported at about $115 million.
Mar 31, 1999
1997
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 1997
American International Group (AIG) reported strong fiscal 1997 results in its 10-K filed March 30, 1998. Consolidated revenues rose 9.5% to $30.60 billion from $27.94 billion, and net income grew 15.0% to $3.33 billion ($4.73 diluted EPS, up from $4.08). Growth was driven by the life insurance segment (operating income up 18.7% to $1.57 billion, with about 92% of life operating income from foreign operations, especially Asia), the general insurance segment (operating income up 12.1% to $2.47 billion), and financial services (operating income up 33.9% to $701 million, led by ILFC, AIGFP and AIGTG). The general insurance combined ratio improved to 96.2% from 96.5%, though the domestic combined ratio deteriorated to 100.34% while the foreign combined ratio improved to 87.77%. Balance sheet growth was substantial: total assets reached $164.0 billion, capital funds rose to $24.0 billion, and book value grew with retained earnings up $2.5 billion. Cumulative translation adjustments worsened by about $685 million, reflecting the strong U.S. dollar and Asian economic stress, which weighed on capital. Total borrowings were $25.26 billion, of which roughly $22.28 billion was non-recourse or matched to GIAs and matched notes, leaving about $2.98 billion of AIG-level borrowings. Management described liquidity as strong, citing over $6 billion of pre-tax insurance operating cash flow. Investors should note the risks disclosed: a meaningful exposure to Asia and Japan, asbestos and environmental reserves of $787 million net (carried at adequate levels per management, but subject to significant estimation uncertainty), and a large derivatives book at AIGFP and AIGTG with notional amounts exceeding $266 billion for swaps alone. Controlling shareholders (Starr entities and SICO) held roughly 29% of voting stock, a concentration relevant to governance.
Mar 30, 1998
1996
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 1996
American International Group's 1996 Form 10-K shows a company at a high point of scale and profitability. Revenues rose 9.0% to $28.2 billion and net income grew 15.4% to $2.90 billion, or $6.15 per share, versus $2.51 billion ($5.30) in 1995. Total assets reached $148.4 billion and capital funds $22.0 billion, up roughly 11% and 11% respectively. Life insurance was the largest profit engine, with operating income of $1.32 billion (up 21.4%), 92.4% of it from overseas operations, mainly in Asia and Japan. General insurance operating income rose 9.0% to $2.15 billion, with a 96.9% combined ratio (underwriting profit of $399 million) and a 3.1-point underwriting margin, well ahead of the industry's estimated 105.5%. The main risks are concentrated in the financial services segment and in long-tail reserves. Financial services (ILFC aircraft leasing, AIGFP derivatives, AIGTG trading) produced $524 million of operating income, but it carries $43.9 billion in identifiable assets and $35.3 billion in liabilities, and derivative notional amounts reached $210.7 billion for AIGFP swaps alone. AIG states that it does not guarantee ILFC's borrowings, but it does guarantee AIGFP's debt and AICCO's commercial paper support. Asbestos and environmental reserves are a known watch item: gross reserves rose to $2.30 billion and management acknowledges that further emergence could have a material adverse impact. General insurance reserve development was favorable overall, with a $280 million redundancy on 1995 reserves, though asbestos and environmental development was adverse in several earlier years. Ownership is also concentrated, with Starr-affiliated entities controlling about 29% of voting stock. For investors, the filing describes a diversified, highly profitable insurer and financial services group with strong capital, growing dividends ($0.37 per share, up from $0.32), and active share repurchases ($492.5 million in 1996). The principal questions going forward are whether the overseas life franchise can keep growing, whether the financial services derivatives book stays well managed, and whether long-tail casualty reserves remain adequate.
Mar 28, 1997
1995-A
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 1995
American International Group's 10-K/A for fiscal 1995 shows a large, highly diversified insurer and financial services group. Consolidated revenues rose 15.7% to $25.87 billion and net income rose 15.4% to $2.51 billion, or $5.30 per share, versus $2.18 billion ($4.58) in 1994. Total assets reached $134.1 billion and capital funds reached $19.8 billion, up about $3.4 billion in the year, helped by a $1.8 billion unrealized appreciation swing. The general insurance combined ratio improved to 97.0% from 98.7%, with an adjusted underwriting profit of $361.6 million, and life insurance operating income rose 14.5% to $1.09 billion, with about 94% of life operating income coming from foreign operations, mainly Asia and Japan. The filing also highlights several risk areas for investors. Financial services, which includes ILFC aircraft leasing, AIGFP derivatives and AIGTG trading, carries a notional derivatives book of roughly $164 billion in swaps and large trading exposures, with total borrowings of $17.99 billion, of which $14.32 billion is non-recourse or matched. Long-tail casualty reserves are large, with net loss reserves of $19.69 billion, and asbestos and environmental exposures remain a material uncertainty. Foreign operations account for about 37% of assets and face currency and political risks. Overall, the filing reflects strong earnings growth, improving underwriting discipline, and a robust capital base. Investors should weigh that against the complexity and leverage of the financial services segment, reserve adequacy in long-tail lines, and reliance on overseas life insurance growth.
Apr 1, 1996
1995
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 1995
American International Group (AIG) reported a strong 1995 for its FY ended December 31, 1995. Consolidated revenues rose 15.7% to $25.87 billion from $22.36 billion, and net income grew 15.4% to $2.51 billion ($5.30 per share, versus $4.58 in 1994). Total assets reached $134.1 billion and capital funds rose to $19.83 billion from $16.42 billion, a gain of about 21%. Return on the expanded equity base remained solid, and the company's statutory surplus in both general and life insurance comfortably exceeded risk-based capital requirements. The core insurance franchise drove results. General insurance net premiums written grew 9.5% to $11.89 billion, and the combined ratio improved to 97.0% from 98.7%, with an adjusted underwriting profit of $361.6 million versus $147.5 million a year earlier. Life insurance premium income rose 19.5% to $8.04 billion, with about 94% generated overseas, principally in Asia and Japan. Financial services operating income grew 3.2%, led by International Lease Finance Corp. (aircraft leasing) and the derivatives and trading units, though the financial services segment carries substantial leverage and derivative exposure ($164 billion notional in swaps at AIGFP). Investors should weigh several risks: about 37% of consolidated assets are located abroad and subject to political and currency risk; the company's casualty reserves, including $507 million of net asbestos and environmental reserves, carry long-tail uncertainty; and total borrowings of $18.0 billion include large amounts of debt not guaranteed by AIG. The Starr-affiliated group controls roughly 28% of voting stock, a concentration worth noting for governance.
Mar 29, 1996
1994-A
AMERICAN INTERNATIONAL GROUP, INC. Annual Report (Amendment), Year Ended Dec 31, 1994
This is American International Group, Inc.'s (AIG) annual report on Form 10-K/A for the fiscal year ended December 31, 1994, a Delaware corporation headquartered at 70 Pine Street, New York. The excerpt provided covers only the cover page, the Item 8 index, and the independent auditor's report from Coopers & Lybrand L.L.P. (dated February 23, 1995). It does not include the balance sheet, income statement, cash flow statement, or notes, so this analysis cannot assess AIG's 1994 revenues, earnings, reserves, investment portfolio, or capital position. The auditor issued an unqualified (clean) opinion that the financial statements present fairly, in all material respects, AIG's financial position and results for 1994 and 1993 and its cash flows for the three years through 1994. The auditor also noted two prior accounting changes: a change in 1993 in how certain fixed maturity securities are accounted for, and changes in 1992 for income taxes and postretirement benefits other than pensions. Investors evaluating the company should review the full filing for these figures, since the excerpt provides no earnings, book value, or per-share data. The cover page reports 315,892,792 common shares outstanding as of January 31, 1995, and an aggregate market value of approximately $23.46 billion held by non-affiliates on that date. The common stock ($2.50 par value) trades on the New York Stock Exchange. The proxy statement for the May 24, 1995 annual meeting is incorporated by reference for Part III. Because this is an amended filing (10-K/A), investors should also check what the amendment changed relative to the original 10-K. The excerpt's filing date of April 7, 1995 is not stated in the text provided.
Apr 7, 1995
1994
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 1994
American International Group (AIG) reported a strong 1994 for its 10-K covering the year ended December 31, 1994. Consolidated revenues rose 11.4% to $22.44 billion, pre-tax income reached $2.95 billion (up 13.5%), and net income was $2.18 billion, or $6.87 per share, versus $1.94 billion ($6.11) in 1993. Growth was driven by overseas operations, particularly Asian life insurance, and by foreign general insurance premiums. Life insurance in-force grew to $333 billion, and the general insurance combined ratio improved to 98.7% from 100.1%, with a 1.3-point underwriting margin, the first meaningful underwriting profit in the period shown. Total assets reached $114.3 billion and capital funds were $16.4 billion. The filing also highlights balance sheet and risk considerations. Financial services operations (AIGFP, AIGTG, and ILFC) account for a growing share of assets, including $4.65 billion of unrealized gains on swaps and $3.66 billion of unrealized losses, and total borrowings were $17.5 billion, of which AIG guarantees $13.1 billion or so depending on the classification. Unrealized appreciation on investments fell $738 million to $185 million, reflecting the 1994 rise in interest rates and the adoption of FASB 115. Management states that asbestos and environmental reserves are adequate but acknowledges that future emergence could be material, and that the Japanese life book faces duration mismatch risk. Overall, the filing portrays a highly profitable, well-capitalized insurer with growing international exposure. Key investor watch points are the expansion of derivatives and trading activity, the sensitivity of unrealized investment values to interest rates, and long-tail casualty reserve development, which the company reports as currently adequate with a $122.7 million redundancy on 1993 and prior reserves.
Mar 31, 1995
1993
AMERICAN INTERNATIONAL GROUP, INC. Annual Report, Year Ended Dec 31, 1993
American International Group's 1993 Form 10-K shows a large, diversified insurance holding company with total revenues of $20.13 billion (up 9.5% from $18.39 billion in 1992), net income of $1.94 billion ($6.11 per share, up from $5.20), and total assets of $101.0 billion. Growth was driven mainly by life insurance, where premium income rose 18.4% to $5.75 billion, largely from overseas (95.3% of life premiums came from foreign operations, chiefly Asia), and by general insurance, where net premiums written rose 9.7% to $10.03 billion. The general insurance statutory combined ratio was 100.1%, versus 102.4% in 1992, with 1992's results hurt by Hurricane Andrew and other catastrophes. Shareholders' equity (capital funds) grew to $15.22 billion from $12.78 billion. The filing also highlights growing exposure to financial services, which contributed $390 million of operating income (up 12.6%). That segment includes AIG Financial Products (derivatives dealer), AIG Trading Group, and International Lease Finance Corp. Financial services carried $18.9 billion of liabilities, and total borrowings reached $15.69 billion, of which about $5.94 billion was not guaranteed by AIG. Management also disclosed a $215 million pretax impairment on investments held by AIGFP after rating downgrades, with $104 million charged to 1993 income. Management described reserves as adequate, though it flagged environmental and asbestos claims as an ongoing source of uncertainty. For investors, the key points are strong earnings and premium growth, a combined ratio near breakeven, and a rising reliance on financial services and leveraged, partly non-guaranteed borrowings. Dependence on overseas life insurance, derivatives counterparty risk, and long-tail casualty reserve development are the main risks to monitor.
Mar 30, 1994