8-KRegulation FDExhibits & Filings

AMERICAN INTERNATIONAL GROUP, INC. 8-K Report, Regulation FD Disclosure (Aug 2, 2010)

Filed August 2, 2010For Securities:AIG

Summary

This 8-K filing by American International Group (AIG) on August 2, 2010, primarily serves to disclose financial data related to the sale of its subsidiaries, American Life Insurance Company (ALICO) and Delaware American Life Insurance Company (DelAm), to MetLife, Inc. The filing incorporates by reference financial statements and operational overviews previously filed by MetLife, detailing the performance and financial position of ALICO and DelAm as of November 30, 2009, and May 31, 2010. This information is crucial for investors to understand the value and operational scale of the divested businesses. The "Overview of the Alico Business," prepared by MetLife, highlights ALICO's global diversification and product mix, with significant operations in Japan, Western Europe, Central and Eastern Europe, the Middle East, Africa, South Asia, and Latin America. The data provided offers a snapshot of revenues, net income, assets, and equity for these entities, underscoring their contribution to AIG prior to the sale. Investors should note that the disclosed financial data is presented on a "separate company basis" and may differ from AIG's consolidated financial statements.

Key Highlights

  • 1AIG is disclosing financial and operational data for its subsidiaries ALICO and DelAm in connection with their sale to MetLife for approximately $15.5 billion.
  • 2The filing includes audited financial statements for the year ended November 30, 2009, and unaudited condensed financial statements as of May 31, 2010, for ALICO and DelAm.
  • 3ALICO is presented as a highly diversified international life insurance company with operations in over 50 countries.
  • 4Japan represented the largest revenue market for ALICO, accounting for approximately 55% of total revenues in the year ended November 30, 2009.
  • 5Key products include traditional life insurance, accident and health insurance, and annuities, distributed through a multi-channel approach.
  • 6The financial data provided is on a separate company basis and may differ from AIG's consolidated financial statements.
  • 7The disclosure is a result of MetLife's public offering of securities and related financing activities.

Frequently Asked Questions

The primary purpose of this 8-K filing is to disclose financial information and an overview of the business operations of AIG's subsidiaries, ALICO and DelAm, in relation to their sale to MetLife for approximately $15.5 billion. This disclosure is made in connection with MetLife's public offering and financing activities.

For the six months ended May 31, 2010, ALICO and DelAm reported total revenues of $7.0 billion and net income of $694 million. As of May 31, 2010, their total assets were $109.6 billion and stockholders' equity was $13.2 billion. For the year ended November 30, 2009, total revenues were $14.1 billion, net income was $807 million, total assets were $113.0 billion, and stockholders' equity was $12.7 billion.

ALICO is described as a highly diversified international business. Geographically, it operates in over 50 countries, with significant revenue contributions from Japan (55%), Western Europe (19%), Central and Eastern Europe (12%), the Middle East/Africa/South Asia (6%), and Latin America (6%) for the year ended November 30, 2009. Its principal products are traditional life insurance (35%), accident and health insurance (29%), fixed and variable annuities (23%), and group life insurance (13%).

No, the filing explicitly states that the ALICO Data was prepared on a 'separate company basis' and certain amounts may differ from the ALICO financial information included in AIG's consolidated financial statements. This is because the data was prepared to fulfill AIG's obligations under the sale agreement for MetLife's financing activities.