10-QPeriod: Q1 FY2002

AMERICAN INTERNATIONAL GROUP, INC. Quarterly Report for Q1 Ended Mar 31, 2002

Filed May 15, 2002For Securities:AIG

Summary

For the quarter ended March 31, 2002, American International Group, Inc. (AIG) demonstrated robust financial performance, with net income reaching $1.98 billion, a 6.7% increase compared to the same period in the previous year. This growth was driven by strong performance across its key operating segments, particularly Life Insurance, which saw a 16.7% rise in operating income, and Financial Services, with a 10.2% increase. The General Insurance segment's operating income saw a slight dip, primarily due to higher realized capital losses, but excluding these, it showed an 8.5% improvement. Total assets grew to $507.56 billion from $492.98 billion at year-end 2001. The company maintained a solid capital position with total capital funds of $52.68 billion. Liquidity remained strong, with $14.37 billion in cash and short-term investments and $4.53 billion in net cash provided from operating activities during the quarter. AIG also continued its share repurchase program, demonstrating a commitment to returning value to shareholders.

Key Highlights

  • 1Net income increased by 6.7% to $1.98 billion for the quarter ended March 31, 2002, compared to $1.86 billion in the prior year period.
  • 2Operating income from the Life Insurance segment rose significantly by 16.7% to $1.33 billion.
  • 3Financial Services segment operating income grew by 10.2% to $474 million.
  • 4General Insurance segment operating income slightly decreased by 1.9% to $933 million, primarily due to a rise in realized capital losses.
  • 5Total assets increased to $507.56 billion as of March 31, 2002, up from $492.98 billion at December 31, 2001.
  • 6The company reported strong operating cash flow of $4.53 billion for the quarter.
  • 7AIG repurchased 6.67 million shares of its common stock between January 1 and May 10, 2002.

Frequently Asked Questions

AIG reported a net income of $1.98 billion for the first quarter of 2002, representing a 6.7% increase compared to the same period in 2001. This growth was driven by strong performances in its Life Insurance and Financial Services segments, which saw operating income rise by 16.7% and 10.2%, respectively.

The Life Insurance segment showed significant growth in operating income. The Financial Services segment also experienced an increase in operating income. The General Insurance segment's operating income saw a slight decrease, largely attributed to higher realized capital losses, though underlying underwriting profit improved.

As of March 31, 2002, AIG's total assets stood at $507.56 billion, an increase from $492.98 billion at the end of 2001. The company maintained a healthy capital base with total capital funds of $52.68 billion.

Yes, AIG's liquidity appears strong. The company reported $14.37 billion in cash and short-term investments and generated $4.53 billion in net cash from operating activities during the first quarter of 2002. Management believes its liquid assets, operating cash flow, and access to capital markets are adequate to meet foreseeable cash requirements.