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UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 ------------------------ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): February 13, 2003 AMERICAN INTERNATIONAL GROUP, INC. (Exact Name of Registrant as Specified in Charter) Delaware 1-8787 13-2592361 (State or Other (Commission File Number) (IRS Employer Jurisdiction of Identification No.) Incorporation) 70 Pine Street New York, New York 10270 (Address of Principal Executive Offices) Registrant's telephone number, including area code: (212) 770-7000 ------------------------------------------ (Former name or Former Address, if Changed Since Last Report)

Item 9. Regulation FD Disclosure. On February 13, 2003, American International Group, Inc. issued a press release announcing its results for the quarter and year ended December 31, 2002. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K. The text of the press release is being furnished and is not filed pursuant to Regulation FD. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN INTERNATIONAL GROUP, INC. (Registrant) Date: February 13, 2003 By /s/ KATHLEEN E. SHANNON ------------------------------------ Name: Kathleen E. Shannon Title: Vice President and Secretary

EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release of American International Group, Inc. dated February 13, 2003.

EXHIBIT 99.1 NEWS [AIG LOGO] AMERICAN INTERNATIONAL GROUP, INC. 70 PINE STREET NEW YORK, NY 10270 Contact: Charlene Hamrah (Investment Community) 212/770-7074 Joe Norton (News Media) 212/770-3144 AIG REPORTS 2002 NET INCOME OF $5.52 BILLION VS. $5.36 BILLION IN 2001 NEW YORK, NY, February 13, 2003 - American International Group, Inc. (AIG) today reported that its net income for the full year 2002 was $5.52 billion, compared to $5.36 billion in 2001. The fourth quarter of 2002 resulted in a net loss of $103.8 million, compared to net income of $1.87 billion in the same period of 2001. On February 3, AIG announced that it would incur a net, after tax charge of $1.8 billion in the fourth quarter of 2002 related to an increase of general insurance net loss and loss adjustment reserves, following the completion of AIG's annual year-end loss reserve study. Fourth quarter 2002 income as adjusted, excluding the reserve charge and realized gains and losses, increased 13.9 percent to $2.33 billion. For the full year 2002, income as adjusted was $8.91 billion, an increase of 11.9 percent over the full year 2001, which was also adjusted for the cumulative effect of accounting changes, acquisition, restructuring and related charges and World Trade Center and related losses. Following is a summary table of twelve months and fourth quarter information (in millions, except per share amounts): TWELVE MONTHS Per Share 2002 2001 Change 2002 2001 Change Net income, as reported $5,518.9 $5,362.8 2.9% $ 2.10 $ 2.02 4.0% Realized capital losses 1,596.5 541.7 - 0.60 0.21 - Cumulative effect of accounting changes - 136.2 - - 0.05 - Acquisition, restructuring and related charges - 1,384.8 - - 0.52 - World Trade Center and related losses - 533.0 - - 0.20 - Insurance reserve charge 1,793.9 - - 0.68 - - Income, as adjusted $8,909.3 $7,958.5 11.9% $ 3.38 $ 3.00 12.7% Average shares outstanding 2,634.0 2,649.9

FOURTH QUARTER Per Share 2002 2001 Change 2002 2001 Change Net income (loss), as reported $ (103.8) $1,865.9 - $(0.03) $ 0.70 - Realized capital losses 641.3 180.9 - 0.23 0.07 - Insurance reserve charge 1,793.9 - - 0.68 - - Income, as adjusted $2,331.4 $2,046.8 13.9% $0.88 $ 0.77 14.3% Average shares outstanding 2,632.5 2,645.4 Highlights for 2002 include: Record shareholders' equity at December 31, 2002 of approximately $59 billion, an increase of $0.3 billion over September 30, 2002. Return on equity of 13.2 percent, or 16.5 percent excluding the reserve charge. Record consolidated assets at December 31, 2002 of approximately $563 billion, an increase of $16 billion over September 30, 2002. Record 2002 General Insurance net premiums written of $27.4 billion, an increase of 36.4 percent. Record fourth quarter 2002 General Insurance net premiums written of $7.21 billion, an increase of 38.8 percent. Record General Insurance cash flow of $6.92 billion in 2002. General Insurance net loss and loss adjustment reserves totaling $30.35 billion as of December 31, 2002, an increase of $4.45 billion and $3.31 billion for the full year and fourth quarter of 2002, respectively. Record 2002 Life Insurance premium income, deposits and other considerations of $48.66 billion, an increase of 11.6 percent. Fourth quarter 2002 Life Insurance premium income, deposits and other considerations increased 4.5 percent to $10.62 billion.

Income before income taxes, minority interest, and the cumulative effect of accounting changes was $8.14 billion in 2002 and a loss of $312.5 million in the fourth quarter of 2002. The following table outlines the results for the full year and the fourth quarter (in millions): TWELVE MONTHS FOURTH QUARTER 2002 2001 Change 2002 2001 Change General Insurance* $4,325.6 $3,749.9 15.4% $1,122.5 $ 860.8 30.4% Life Insurance* 5,982.3 5,060.1 18.2 1,581.8 1,321.7 19.7 Financial Services 2,188.7 1,991.0 9.9 620.3 587.0 5.7 Retirement Savings & Asset Management 1,015.9 1,087.7 (6.6) 207.8 287.3 (27.7) Other Income (Deductions)-net (129.2) 3.3 - (60.8) (52.4) - Adjusted income before income taxes and minority interest 13,383.3 11,892.0 12.5 3,471.6 3,004.4 15.6 Realized capital gains (losses) (2,441.0) (836.3) - (984.1) (287.1) - General Insurance Reserve charge (2,800.0)** 0.0 - (2,800.0)** 0.0 - WTC losses 0.0 (900.0)** - 0.0 0.0 - Acquisition, restructuring and related charges 0.0 (2,016.5) - 0.0 0.0 - Income (loss) before income taxes and minority interest $8,142.3 $8,139.2 - $ (312.5) $2,717.3 - * Excluding General Insurance reserve charge in 2002 and WTC losses in 2001. ** Includes 100 percent of Transatlantic reserve charge of $100.0 million in 2002 and WTC losses in 2001.

The following table outlines the impact of foreign exchange on property-casualty and life insurance premiums for the fourth quarter 2002: Worldwide Foreign Worldwide Foreign General General Life Life Insurance Insurance Insurance Insurance Premium Growth in Original Currency 39.5% 20.3% 4.1%* 6.6%* Foreign Exchange Impact (0.7) (3.7) 0.4 0.7 Premium Growth as Reported in U.S.$ 38.8% 16.6% 4.5% 7.3% * Premium income, deposits and other considerations. (See supplementary data information.) Commenting on full-year and fourth quarter 2002 results, AIG Chairman M. R. Greenberg said, "In 2002 AIG earned $7.12 billion before realized capital losses, even after taking an after-tax charge of $1.8 billion to increase general insurance reserves. AIG in 2002 had record revenues of $67.5 billion, record general insurance cash flow of $6.92 billion and record shareholders' equity of $59 billion at year end. "As we reported on February 3, AIG increased reserves pertaining to accident years 1997 through 2001 following our annual year-end review of general insurance loss reserves. Approximately 60 percent of the reserve increase will be applied to excess casualty loss reserves (which include reserves for commercial umbrella policies and excess workers' compensation); 25 percent to directors and officers liability; and 15 percent to other casualty, including healthcare liability. Pricing in these lines has increased substantially and will continue to do so. In 2002, excess casualty rates increased 90 percent, while directors and officers liability rates rose 70 percent. "This is the first time that AIG has taken an extraordinary reserve adjustment. No actuarial calculation could have predicted the explosion of litigation in the United States, which has resulted in an enormous increase in the frequency and severity of liability claims and judgments. Currently, 1.8 percent of U.S. GDP is devoted to litigation costs and claims, a huge increase over prior decades. AIG has increased reserves for these lines of business, even though we have turned away over $2 billion of inadequately priced business since 1998 and have a much lower general insurance expense ratio than the industry average. Consequently, we believe that we have taken a leadership role addressing an issue that has ramifications for the entire property-casualty industry. "The fourth quarter saw a continuation of this year's favorable general insurance growth trends. Net premiums written were a record $7.21 billion in the fourth quarter of 2002, up 38.8 percent over a year ago. Most of this growth is attributable to price increases. Higher rates are necessitated by the consequences of an epidemic of lawsuits in the United States. "In the United States, Domestic Brokerage Group net premiums written in the fourth quarter of 2002 increased 51.3 percent to a record $4.18 billion. The combined ratio was 167.60, but only 94.11 excluding the reserve increase. Pricing continues to firm, especially for large, specialized coverages, an area where AIG has long been the leader. We have an excellent retention rate for quality renewal business, which is being repriced in accordance with current market realities, and we are seeing attractive new business opportunities as the number of competitors in the marketplace with the right solutions and a sound financial footing is declining. "HSB Group, Inc., is the industry leader providing equipment breakdown insurance and related engineering and loss control services. Premiums and earnings increased in the fourth quarter of 2002, as a result of business generated directly by HSB units, from customer relationships with AIG's Domestic Brokerage and Foreign General Groups and through services marketed to other property casualty insurers.

"In the Domestic Personal Lines business, net premiums written increased 36.7 percent to $813.4 million in the fourth quarter 2002. The combined ratio was 99.38, compared to 112.36 in the fourth quarter of 2001. Market conditions in the automobile insurance line have shown modest improvement, and we continue to refine our underwriting capabilities in the mass-market segment. "United Guaranty Corporation, a leading provider of mortgage guaranty insurance, earned $85.7 million in the quarter. Premium income was affected by a high level of refinancings. Earnings remain strong as a result of excellent credit quality and a strong housing market. "Transatlantic Holdings, Inc. net premiums written increased 37.2 percent to $657.4 million in the fourth quarter of 2002. The combined ratio was 114.01, or 97.99 excluding the impact of the reserve increase. "Foreign General Insurance, the most extensive worldwide property- casualty insurance network in the industry, had an excellent quarter. Net premiums written were $1.43 billion, an increase of 16.6 percent or 20.3 percent in original currency. The combined ratio was 92.03. These operations are benefiting from rate increases as well as new business. Results in the U.K. and Asia, our two largest overseas operations, were very strong. "Total General Insurance cash flow in 2002 was a record $6.92 billion, compared to $1.86 billion in 2001. This strong positive trend is continuing into 2003. New cash flow for investments from general insurance operations in January was well in excess of $1 billion, an all-time record. "General insurance net investment income declined to $673.2 million in the fourth quarter of 2002, from $745.4 million a year ago as a result of low interest rates and the realization of certain investment transactions included in the prior year's quarter. However, net investment income will rise in future quarters as our record cash flow from our general insurance operations is invested, even if interest rates do not rise from their current low levels and equity market conditions remain depressed. "We added $3.31 billion and $4.45 billion to AIG's general insurance net loss and loss adjustment reserves for the quarter and full year, bringing the total of those reserves to $30.35 billion at year-end 2002. This includes the $2.8 billion pretax reserve increase following AIG's annual year-end loss reserve study. "Overall, both our domestic and foreign Life Insurance operations performed well in the fourth quarter. Worldwide Life Insurance operating income grew 19.7 percent, to $1.58 billion, in the fourth quarter of 2002. Worldwide Life Insurance premium income, deposits and other considerations were $10.62 billion, an increase of 4.5 percent over the fourth quarter of 2001.

"In Asia, Life Insurance premiums and income in the fourth quarter grew substantially over the prior year. In Japan, our largest overseas market, ALICO premiums grew at double digit rates as a result of our effective utilization of a full range of distribution channels and the continuing flight to quality. Part of the income earned by AIG Star Life Insurance Co., Ltd. (formerly Chiyoda) since its purchase by AIG has been related to surrender charges earned on policies that lapsed subsequent to AIG's acquisition. This factor was anticipated when AIG took control of AIG Star Life and lowered policy crediting rates. Much of these surrender charges have already been realized, and this segment of AIG Star Life's income will not be a significant factor in subsequent periods. We have a great platform for future growth in AIG Star Life, and it will be making incremental contributions to our results going forward. We have retained a larger than anticipated number of former Chiyoda agents, utilized new training procedures and introduced new products. Together with ALICO, AIG Star Life provides us with a formidable presence in Japan. "In the United States, both productivity gains and new marketing initiatives are contributing to our growth and success in the domestic life insurance business. The cost savings foreseen at the time of the acquisition of American General have been largely realized, and we expect to realize the balance in 2003. "In the United States, individual fixed annuity (reported in the Life Insurance segment) led by AIG Annuity Insurance Company, continued to record substantial growth with premium income, deposits and other considerations volume increasing 55.9 percent and operating income increasing 20.7 percent in the fourth quarter. AIG Annuity is a highly efficient operation and is the leading provider of fixed annuities through its extensive nationwide bank distribution channel. "Financial Services operating income was $620.3 million in the fourth quarter of 2002, compared to $587.0 million in the fourth quarter of 2001. International Lease Finance Corporation reported operating income of $213.1 million in the fourth quarter of 2002, versus $218.2 million a year ago. With the exception of one plane, all of ILFC's modern and efficient fleet continues to be fully leased. New aircraft scheduled for 2003 delivery also have been successfully leased. Approximately 85 percent of ILFC's fleet is leased outside of the United States, primarily in Asia and Europe, which limits our exposure to depressed domestic commercial aviation market conditions. "AIG Financial Products Corp. reported operating income of $266.6 million in the fourth quarter of 2002, compared to $233.8 million in the fourth quarter of 2001. AIGFP's excellent record is the result of its ability to provide innovative financial solutions to the needs of its client corporations and governmental entities. "American General Finance had solid earnings growth in the fourth quarter, and credit quality remains good. In our international consumer finance operations, adverse political and economic conditions in Argentina and weakness in the Hong Kong economy adversely impacted our fourth quarter results in those markets. However, overall results were satisfactory. "Reflecting worldwide market conditions, Retirement Savings & Asset Management earned $207.8 million in the fourth quarter of 2002, compared to $287.2 million in the same period of 2001. Our Group Retirement Savings business, led by AIG VALIC in the United States, is experiencing good growth, with a diversified product range and a growing emphasis on personalized service to its plan participants. Results in the variable annuity business continue to be impacted by weak equity markets in the United States and around the world. In November, AIG announced the formation of a new international retirement savings unit. The need for individuals to provide for their own retirement is a worldwide issue. This represents a major opportunity for AIG, with our unparalleled global customer base and product capabilities.

"AIG's third party Asset Management business benefits from AIG's unrivaled global network, strong expertise in a full range of fixed income, equity and alternative investments and confidence in AIG's 'investor to investor' approach, where AIG invests along side its third party clients. At December 31, 2002, AIG's third party assets under management, including institutional accounts and retail mutual funds, totaled approximately $40 billion. "AIG's Board of Directors expanded AIG's existing share repurchase program through the authorization of an additional 50 million shares. "In summary, AIG has performed well in 2002 in a challenging environment. Our good operating results in the fourth quarter and the positive trends we have seen continuing into January give us confidence that we are on track for achieving solid growth and profitability in the full year of 2003. To provide some additional guidance, we expect 2003 net income (excluding realized capital gains and losses) in the range of $9.9 billion to $10.3 billion or $3.78 to $3.92 per share. These estimates assume a stable worldwide economic and political environment and catastrophe losses remain within the normal range." # # # # AIG is the world's leading U.S.-based international insurance and financial services organization, the largest underwriter of commercial and industrial insurance in the United States, and among the top-ranked U.S. life insurers. Its member companies write a wide range of general insurance and life insurance products for commercial, institutional and individual customers through a variety of distribution channels in approximately 130 countries and jurisdictions throughout the world. AIG's global businesses also include financial services, retirement savings and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making, and consumer finance. AIG has one of the largest retirement savings businesses in the United States and is a leader in asset management for the individual and institutional markets, with specialized investment management capabilities in equities, fixed income, alternative investments and real estate. AIG's common stock is listed on the New York Stock Exchange, as well as the stock exchanges in London, Paris, Switzerland and Tokyo. # # # # A conference call for the investment community will be held today at 9:00 a.m. EST. The call will be broadcast live on the Internet at: www.aigwebcast.com

The call will be archived at the same URL through Friday, February 21, 2003. Caution concerning forward-looking statements This press release contains forward-looking statements. Please refer to the AIG Quarterly Report on Form 10-Q for the quarter ended September 30, 2002 and its past and future filings and reports filed with the Securities and Exchange Commission for a description of the business environment in which AIG operates and the important factors that may affect its business. AIG is not under any obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

American International Group, Inc. Financial Highlights (in thousands, except per share amounts) Twelve Months Ended December 31, Three Months Ended December 31, 2002 2001(a) Change 2002 2001(a) Change General Insurance Operations As Reported: Net Premiums Written $ 27,414,242 $ 20,100,896 36.4 % $ 7,212,509 $ 5,197,712 38.8 % Net Premiums Earned 24,269,517 19,364,886 25.3 6,708,030 5,055,894 32.7 Adjusted Underwriting Profit(Loss) (1,234,034) 88,252 - (2,350,630) 115,379 - Net Investment Income 2,759,603 2,892,619 (4.6) 673,188 745,430 (9.7) Income before Realized Capital Gains (Losses) 1,525,569 2,980,871 (48.8) (1,677,442) 860,809 - Realized Capital Gains (Losses) (858,326) (129,642) - (366,169) 17,478 - Operating Income (Loss) $ 667,243 $ 2,851,229 (76.6)% $ (2,043,611) $ 878,287 - % ---------------------------------------------------------------------------------------------------------------------- Loss Ratio 85.76 79.55 115.13 78.81 Expense Ratio 20.19 21.16 20.08 20.93 Combined Ratio 105.95 100.71 135.21 99.74 ---------------------------------------------------------------------------------------------------------------------- General Insurance Operations Excluding 2002 Reserve Charge and 2001 World Trade Center Losses: Net Premiums Written $ 27,414,242 $ 20,100,896 36.4 % $ 7,212,509 $ 5,197,712 38.8 % Net Premiums Earned 24,269,517 19,364,886 25.3 6,708,030 5,055,894 32.7 Adjusted Underwriting Profit 1,565,966 857,252 82.7 449,370 115,379 289.5 Net Investment Income 2,759,603 2,892,619 (4.6) 673,188 745,430 (9.7) Income before Realized Capital Gains (Losses) 4,325,569 3,749,871 15.4 1,122,558 860,809 30.4 Realized Capital Gains (Losses) (858,326) (129,642) - (366,169) 17,478 - Operating Income $ 3,467,243 $ 3,620,229 (4.2)% $ 756,389 $ 878,287 (13.9)% ---------------------------------------------------------------------------------------------------------------------- Loss Ratio 74.22 75.58 73.39 78.81 Expense Ratio 20.19 21.16 20.08 20.93 Combined Ratio 94.41 96.74 93.47 99.74 ---------------------------------------------------------------------------------------------------------------------- (a)Restated to conform to the presentation with respect to 2002.

American International Group, Inc. Financial Highlights (in thousands, except per share amounts) Twelve Months Ended December 31, Three Months Ended December 31, 2002 2001(a) Change 2002 2001(a) Change Life Insurance Operations As Reported: Premium Income, Deposits and Other Considerations (b) $ 48,661,546 $ 43,616,531 11.6 % $ 10,618,595 $ 10,156,910 4.5 % Net Investment Income 12,274,046 11,084,467 10.7 3,145,267 2,877,837 9.3 Income before Realized Capital Gains (Losses) 5,982,273 4,929,162 21.4 1,581,763 1,321,744 19.7 Realized Capital Gains (Losses) (1,052,970) (254,394) - (451,761) (250,161) - Operating Income $ 4,929,303 $ 4,674,768 5.4 % $ 1,130,002 $ 1,071,583 5.5 % Life Insurance Operations Excluding 2001 World Trade Center Losses: Premium Income, Deposits and Other Considerations (b) $ 48,661,546 $ 43,616,531 11.6 % $ 10,618,595 $ 10,156,910 4.5 % Net Investment Income 12,274,046 11,084,467 10.7 3,145,267 2,877,837 9.3 Income before Realized Capital Gains (Losses) 5,982,273 5,060,162 18.2 1,581,763 1,321,744 19.7 Realized Capital Gains (Losses) (1,052,970) (254,394) - (451,761) (250,161) - Operating Income $ 4,929,303 $ 4,805,768 2.6 % $ 1,130,002 $ 1,071,583 5.5 % (a)Restated to conform to the presentation with respect to 2002. (b)GAAP premium income was $5,289,547 and $20,320,377 for the fourth quarter and twelve months 2002, respectively, compared to $5,091,468 and $19,062,893 for the fourth quarter and twelve months 2001, respectively.

American International Group, Inc. Financial Highlights (in thousands, except per share amounts) Twelve Months Ended December 31 Three Months Ended December 31, 2002 2001(a) Change 2002 2001(a) Change Financial Services Operating Income $ 2,188,720 $ 1,991,028 9.9 % $ 620,299 $ 587,015 5.7 % Retirement Savings & Asset Management Operating Income 1,015,932 1,087,679 (6.6) 207,816 287,242 (27.7) Other Realized Capital Gains (Losses) (529,667) (452,304) - (166,167) (54,456) - Other Income (Deductions) - net (129,211) 3,316 - (60,788) (52,408) - Acquisition, Restructuring and Related Charges 0 (2,016,529) - 0 0 - Income (Loss) before Income Taxes, Minority Interest and Cumulative Effect of Accounting Changes 8,142,320 8,139,187 - (312,449) 2,717,263 - Income Taxes (Benefits) 2,327,969 2,339,140 - (253,118) 804,011 - Income (Loss) before Minority Interest and Cumulative Effect of Accounting Changes 5,814,351 5,800,047 0.2 (59,331) 1,913,252 - Minority Interest, after tax - Operating Income (284,995) (299,491) - (38,787) (48,911) - Minority Interest, after tax - Realized Capital Gains (Losses) (10,472) (1,524) - (5,688) 1,540 - Income (Loss) before Cumulative Effect of Accounting Changes 5,518,884 5,499,032 0.4 (103,806) 1,865,881 - Cumulative Effect of Accounting Changes, net of tax (b) 0 (136,203) - 0 0 - Net Income (Loss), as reported 5,518,884 5,362,829 2.9 (103,806) 1,865,881 - Income, as adjusted (c) 7,115,470 7,425,570 (4.2) 537,545 2,046,849 (73.7) Income, as adjusted excluding 2002 Reserve charge and 2001 WTC losses $ 8,909,340 $ 7,958,570 11.9 % $ 2,331,415 $ 2,046,849 13.9 % Per Share - Diluted: Net Income (Loss), as reported $ 2.10 $ 2.02 4.0 % $ (0.03)$ 0.70 - % Income, as adjusted (c) 2.70 2.80 (3.6) 0.20 0.77 (74.0) Income, as adjusted excluding 2002 Reserve charge and 2001 WTC losses $ 3.38 $ 3.00 12.7 % $ 0.88 $ 0.77 14.3 % Average Diluted Common Shares Outstanding 2,633,979 2,649,906 2,632,531 2,645,445 - --------------------------- (a)Restated to conform to the presentation with respect to 2002. (b)Represents the cumulative effect of accounting changes, net of tax, related to FASB 133 "Accounting for Derivative Instruments and Hedging Activities" and EITF 99-20 "Recognition of Interest Income and Impairment on Purchased and Retained Beneficial Interests in Securitized Financial Assets". (c)Adjusted to exclude realized capital gains (losses), the cumulative effect of accounting changes and acquisition, restructuring and related charges, net of taxes.

American International Group, Inc. Supplementary Data (in thousands) Twelve Months Ended December 31, Three Months Ended December 31, General Insurance Operations As Reported: Net Premiums Written Domestic Brokerage Group $ 15,214,225 $ 10,196,524 49.2 % $ 4,184,642 $ 2,765,976 51.3 % Personal Lines 3,182,123 2,453,571 29.7 813,368 595,072 36.7 Mortgage Guaranty 507,751 494,398 2.7 126,404 130,801 (3.4) Transatlantic Holdings 2,500,159 1,905,647 31.2 657,371 479,052 37.2 Foreign General (b)(c) 6,009,984 5,050,756 19.0 1,430,724 1,226,811 16.6 Total 27,414,242 20,100,896 36.4 7,212,509 5,197,712 38.8 Operating Income (Loss)(d) Domestic Brokerage Group (440,190) 1,488,378 - (2,026,920) 510,635 - Personal Lines 151,338 21,657 - 50,209 (26,519) - Mortgage Guaranty 417,433 417,436 - 85,715 96,271 (11.0) Transatlantic Holdings 194,367 (33,545) - (26,142) (527) - Foreign General (b)(e) 1,179,891 1,063,629 10.9 234,013 275,118 (14.9) Intercompany Adjustments 22,730 23,316 - 5,683 5,831 - Total $ 1,525,569 $ 2,980,871 (48.8)% $ (1,677,442)$ 860,809 - % ----------------------------------------------------------------------------------------------------------------- Combined Ratio: Domestic Brokerage Group 116.96 104.42 167.60 100.30 Personal Lines 101.26 104.89 99.38 112.36 Mortgage Guaranty 43.92 36.90 55.80 47.61 Transatlantic Holdings 102.31 114.87 114.01 112.99 Foreign General (b) 90.12 92.18 92.03 93.23 ----------------------------------------------------------------------------------------------------------------- Losses and Loss Expenses Paid $ 16,359,374 $ 14,461,669 13.1 % $ 4,414,479 $ 3,843,816 14.8 % Change in Loss and Loss Expense Reserve 4,454,427 943,916 - 3,308,377 140,910 - Losses and Loss Expenses Incurred 20,813,801 15,405,585 35.1 7,722,856 3,984,726 93.8 Net Loss and Loss Expense Reserve 30,349,939 25,895,512 17.2 GAAP Underwriting Profit (Loss) $ (1,234,034)$ 88,252 - % $ (2,350,630)$ 115,379 - % ----------------------------------------------------------------------------------------------------------------- General Insurance Operations Excluding 2002 Reserve Charge and 2001 World Trade Center Losses: Operating Income (Loss)(d) Domestic Brokerage Group $ 2,259,810 $ 2,032,378 11.2 % $ 673,080 $ 510,635 31.8 % Personal Lines 151,338 21,657 - 50,209 (26,519) - Mortgage Guaranty 417,433 417,436 - 85,715 96,271 (11.0) Transatlantic Holdings 294,367 166,455 76.8 73,858 (527) - Foreign General (b)(e) 1,179,891 1,088,629 8.4 234,013 275,118 (14.9) Intercompany Adjustments 22,730 23,316 - 5,683 5,831 - Total $ 4,325,569 $ 3,749,871 15.4 % $ 1,122,558 $ 860,809 30.4 % ----------------------------------------------------------------------------------------------------------------- Combined Ratio: Domestic Brokerage Group 96.27 98.85 94.11 100.30 Personal Lines 101.26 104.89 99.38 112.36 Mortgage Guaranty 43.92 36.90 55.80 47.61 Transatlantic Holdings 98.09 103.70 97.99 112.99 Foreign General (b) 90.12 91.66 92.03 93.23 ----------------------------------------------------------------------------------------------------------------- GAAP Underwriting Profit $ 1,565,966 $ 857,252 82.7 % $ 449,370 $ 115,379 289.5 % (a)Restated to conform to the presentation with respect to 2002. (b)Foreign general insurance excludes the foreign operations of Transatlantic Holdings, Inc. (c)The growth in Foreign General net premiums written in original currency was 20.3 percent and 24.1 percent for the fourth quarter and twelve months 2002, respectively. (d)Operating income excludes realized capital gains (losses). (e)Fourth quarter operating income in Foreign General was adversely impacted by lower net investment income due to transactions that occurred in the prior year's quarter.

Supplementary Data continued Twelve Months Ended December 31, Three Months Ended December 31, 2002 2001(a) Change 2002 2001(a) Change Life Insurance Operations: Premium Income, Deposits and Other Considerations Domestic Life Insurance (b) $ 2,411,219 $ 2,723,833 (11.5)% $ 585,291 $ 743,343 (21.3)% Individual Fixed Annuities 10,327,417 7,605,065 35.8 2,331,800 1,495,371 55.9 Guaranteed Investment Agreements 9,077,855 8,241,567 10.1 1,159,647 1,425,222 (18.6) Home Service 861,333 878,532 (2.0) 229,192 227,820 0.6 Group Life/Health 975,618 929,869 4.9 235,397 251,083 (6.2) Pension and Investment Products 1,782,381 3,020,242 (41.0) 397,108 722,737 (45.1) Accident & Health (c) - 156,818 - - - - Total 25,435,823 23,555,926 8.0 4,938,435 4,865,576 1.5 Foreign Life Insurance 13,439,519 12,065,835 11.4 3,617,184 3,226,993 12.1 Personal Accident 2,497,087 2,173,370 14.9 669,056 626,312 6.8 Group Products 1,579,390 1,659,452 (4.8) 368,356 477,846 (22.9) Guaranteed Investment Agreements 5,709,727 4,161,948 37.2 1,025,564 960,183 6.8 Total (d) 23,225,723 20,060,605 15.8 5,680,160 5,291,334 7.3 Total Premium Income, Deposits and Other Considerations 48,661,546 43,616,531 11.6 10,618,595 10,156,910 4.5 GAAP Premiums Domestic Life Insurance 1,626,179 1,514,548 7.4 412,815 397,880 3.8 Individual Fixed Annuities(e) 41,868 437,384 (90.4) 8,139 27,707 (70.6) Guaranteed Investment Agreements 27,400 184 - 8,664 (476) - Home Service 854,330 875,675 (2.4) 212,767 218,436 (2.6) Group Life/Health 966,958 925,285 4.5 237,958 232,188 2.5 Pension and Investment Products 1,105,151 1,143,735 (3.4) 224,003 309,650 (27.7) Accident & Health (c) - 51,155 - - - - Total 4,621,886 4,947,966 (6.6) 1,104,346 1,185,385 (6.8) Foreign Life Insurance 12,000,138 10,770,744 11.4 3,246,402 2,977,359 9.0 Personal Accident 2,490,967 2,196,301 13.4 667,899 632,352 5.6 Group Products 1,094,481 1,049,609 4.3 244,809 272,949 (10.3) Guaranteed Investment Agreements 112,905 98,273 14.9 26,091 23,423 11.4 Total 15,698,491 14,114,927 11.2 4,185,201 3,906,083 7.1 Total GAAP Premiums $ 20,320,377 $ 19,062,893 6.6 % $ 5,289,547 $ 5,091,468 3.9 % (a)Restated to conform to the presentation with respect to 2002. (b)The decline in life premiums is due primarily to lower private placement and corporate life market sales. (c)Accident & Health is now reported in Domestic Brokerage Group. (d)The growth in foreign premium income, deposits and other considerations in original currency was 6.6 percent in the fourth quarter and 16.9 percent for the twelve months. (e)2001 GAAP premiums included certain annuity products now reported in the Pension and Investment Products segment.

Supplementary Data continued Twelve Months Ended December 31, Three Months Ended December 31, 2002 2001(a) Change 2002 2001(a) Change Life Insurance Operations: Net Investment Income Domestic Life Insurance $ 1,416,918 $ 1,328,914 6.6 % $ 364,707 $ 348,882 4.5 % Individual Fixed Annuities 3,228,848 2,874,654 12.3 836,623 728,788 14.8 Guaranteed Investment Agreements 2,052,232 1,835,742 11.8 536,639 449,353 19.4 Home Service 683,553 653,359 4.6 175,333 165,370 6.0 Group Life/Health 107,826 105,404 2.3 27,344 26,894 1.7 Pension and Investment Products 836,035 701,609 19.2 233,003 185,178 25.8 Accident & Health (b) - 4,655 - - - - Intercompany Adjustment (240) (213) - (63) (56) - Total 8,325,172 7,504,124 10.9 2,173,586 1,904,409 14.1 Foreign Life Insurance 3,206,137 2,848,491 12.6 752,340 796,468 (5.5) Personal Accident 141,059 128,325 9.9 36,906 31,258 18.1 Group Products 254,470 227,143 12.0 82,079 57,714 42.2 Guaranteed Investment Agreements 358,894 386,757 (7.2) 103,442 90,746 14.0 Intercompany Adjustments (11,686) (10,373) - (3,086) (2,758) - Total 3,948,874 3,580,343 10.3 971,681 973,428 (0.2) Total Net Investment Income 12,274,046 11,084,467 10.7 3,145,267 2,877,837 9.3 Operating Income (c) Domestic Life Insurance 776,791 554,766 40.0 207,216 165,377 25.3 Individual Fixed Annuities 729,554 679,473 7.4 196,501 162,748 20.7 Guaranteed Investment Agreements 581,509 444,931 30.7 136,573 131,214 4.1 Home Service 382,063 374,305 2.1 96,592 93,397 3.4 Group Life/Health 100,955 86,593 16.6 24,206 16,523 46.5 Pension and Investment Products 117,719 143,853 (18.2) 27,501 56,588 (51.4) Accident & Health (b) - 4,392 - - - - Intercompany Adjustments (240) (213) - (63) (56) - Total 2,688,351 2,288,100 17.5 688,526 625,791 10.0 Total Excluding 2001 World Trade Center Losses 2,688,351 2,419,100 11.1 688,526 625,791 10.0 Foreign Life Insurance 2,411,048 1,914,355 25.9 631,502 507,500 24.4 Personal Accident 681,212 572,581 19.0 198,553 154,493 28.5 Group Products 174,670 126,783 37.8 56,318 33,150 69.9 Guaranteed Investment Agreements 38,678 37,716 2.6 9,950 3,568 178.9 Intercompany Adjustments (11,686) (10,373) - (3,086) (2,758) - Total 3,293,922 2,641,062 24.7 893,237 695,953 28.3 Total Operating Income 5,982,273 4,929,162 21.4 1,581,763 1,321,744 19.7 Total Operating Income Excluding 2001 World Trade Center Losses $ 5,982,273 $ 5,060,162 18.2 % $ 1,581,763 $ 1,321,744 19.7 % (a)Restated to conform to the presentation with respect to 2002. (b)Accident & Health is now reported in Domestic Brokerage Group. (c)Operating income excludes realized capital gains (losses).

Supplementary Data continued Twelve Months Ended December 31, Three Months Ended December 31, 2002 2001(a) Change 2002 2001(a) Change Financial Services: Revenues International Lease Finance Corp. $ 2,844,977 $ 2,612,822 8.9 % $ 749,519 $ 675,885 10.9 % AIG Financial Products Corp. 1,306,315 1,177,745 10.9 448,873 375,343 19.6 Consumer Finance 2,472,573 2,559,743 (3.4) 634,501 656,600 (3.4) AIG Trading Group Inc. 238,110 170,465 39.7 60,695 62,630 (3.1) Other (47,091) (35,743) - (39,382) (13,499) - Total 6,814,884 6,485,032 5.1 1,854,206 1,756,959 5.5 Operating Income International Lease Finance Corp. 801,099 749,137 6.9 213,077 218,185 (2.3) AIG Financial Products Corp. 808,111 758,278 6.6 266,647 233,785 14.1 Consumer Finance 549,240 504,285 8.9 139,950 125,152 11.8 AIG Trading Group Inc. 61,665 48,065 28.3 11,044 27,049 (59.2) Other (b) (31,395) (68,737) - (10,419) (17,156) - Total 2,188,720 1,991,028 9.9 620,299 587,015 5.7 Retirement Savings & Asset Management(c): Revenues VALIC (d) 2,133,149 2,109,832 1.1 527,031 521,218 1.1 SunAmerica (e) 562,606 651,584 (13.7) 108,692 154,473 (29.6) Other Asset Management and Annuity Operations (f) 789,094 951,115 (17.0) 211,323 321,354 (34.2) Total 3,484,849 3,712,531 (6.1) 847,046 997,045 (15.0) Operating Income VALIC (d) 730,020 629,911 15.9 158,409 139,198 13.8 SunAmerica (e) 32,029 184,938 (82.7) (25,210) 25,136 - Other Asset Management and Annuity Operations (f) 253,883 272,830 (6.9) 74,617 122,908 (39.3) Total 1,015,932 1,087,679 (6.6) 207,816 287,242 (27.7) Variable Annuity Net Sales Sales VALIC 5,041,725 4,672,007 7.9 1,280,745 1,224,189 4.6 SunAmerica (g) 2,995,580 3,750,526 (20.1) 791,626 702,729 12.7 Surrenders VALIC 2,416,202 2,306,071 4.8 493,401 495,617 (0.4) SunAmerica (g) 2,425,438 2,058,347 17.8 728,528 599,309 21.6 Total VALIC 2,625,523 2,365,936 11.0 787,344 728,572 8.1 SunAmerica (g) 570,142 1,692,179 (66.3) 63,098 103,420 (39.0) Total Net Sales $ 3,195,665 $ 4,058,115 (21.3)% $ 850,442 $ 831,992 2.2 % Effective Tax Rates: Excluding Realized Capital Gains (Losses) 30.07% 29.36% - 30.24% Realized Capital Gains (Losses) Alone 35.02% 35.41% - 36.44% As Reported 28.59% 28.74% - 29.59% (a)Restated to conform to the presentation with respect to 2002. (b)Includes Other Financial Services Companies and Intercompany Reclassifications. (c)At December 31,2002 AIG's third party assets under management, including mutual funds and institutional accounts, totaled approximately $40 billion. (d)VALIC's revenues and operating income reflect the sale of variable annuity products with fixed annuity options. (e)Includes variable annuity, mutual fund and broker-dealer operations. (f)Includes AIG Global Investment Group, AIG Capital Partners, John McStay Investment Counsel and certain overseas variable annuity operations. (g)Excluding the impact of certain discontinued short-term fixed rate products sold in third quarter 2001 and a new fourth quarter 2002 program to force market timers out of product lines, results were as follows: sales declined 6 percent in full year 2002; surrenders declined 17 percent in fourth quarter 2002 and were flat for full year 2002; and net sales increased 182 percent for fourth quarter 2002 and declined 16 percent for full year 2002.