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 5. Other Events and Regulation FD Disclosure. Attached as Exhibit 99.1 are excerpts from a press release issued by American International Group, Inc. on February 13, 2003 announcing its results for the quarter and year ended December 31, 2002. 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 Excerpts from press release of American International Group, Inc. dated February 13, 2003.
EXHIBIT 99.1 "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.
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."