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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 9, 2005 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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 - Financial Information Item 2.02. Results of Operations and Financial Condition. On February 9, 2005, American International Group, Inc. issued a press release announcing its results for the quarter and year ended December 31, 2004. A copy of the press release is attached as Exhibit 99.1 to this Form 8-K. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. AMERICAN INTERNATIONAL GROUP, INC. (Registrant) Date: February 9, 2005 By /s/ KATHLEEN E. SHANNON ------------------------------------ Name: Kathleen E. Shannon Title: Senior Vice President and Secretary

EXHIBIT INDEX Exhibit No. Description - ----------- ----------- 99.1 Press Release of American International Group, Inc. dated February 9, 2005.

EXHIBIT 99.1 NEWS [AIG LOGO] Contact: Charlene Hamrah (Investment Community) (212) 770-7074 Joe Norton (News Media) (212) 770-3144 AIG REPORTS RECORD 2004 NET INCOME OF $11.05 BILLION ($4.19 PER SHARE), AN INCREASE OF 19.1 PERCENT OVER 2003; NET INCOME EXCLUDING REALIZED CAPITAL GAINS AND LOSSES AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES INCREASED 12.1 PERCENT TO $11.46 BILLION ($4.35 PER SHARE); NET INCOME EXCLUDING REALIZED CAPITAL GAINS AND LOSSES, CUMULATIVE EFFECT OF ACCOUNTING CHANGES, CATASTROPHE LOSSES AND SETTLEMENT CHARGE INCREASED 18.8 PERCENT TO $12.19 BILLION ($4.63 PER SHARE) NEW YORK, NY, February 9, 2005 - American International Group, Inc. (AIG) today reported that its net income for the full year 2004 increased 19.1 percent to a record $11.05 billion or $4.19 per share, compared to $9.27 billion or $3.52 per share in 2003. Net income excluding realized capital gains (losses) and cumulative effect of accounting changes was $11.46 billion or $4.35 per share, compared to $10.22 billion or $3.88 per share in 2003. Full year 2004 after-tax net catastrophe losses from hurricanes, typhoons, earthquake and tsunamis were $682.7 million or $0.26 per share, compared to after-tax net catastrophe losses of $46.2 million or $0.02 per share in 2003. Full year and fourth quarter 2004 catastrophe losses include an additional $126.9 million, or $0.05 per share, in net after-tax catastrophe losses in connection with late reported losses from the third quarter hurricanes and typhoons. The additional charge is a result of the magnitude of damage from a rapid succession of storms and the shortages in labor and materials required for an efficient and timely rebuilding effort in Florida and other areas impacted by the storms. Fourth quarter and full year 2004 catastrophe losses also include a net after-tax charge of $43.6 million, or $0.02 per share, from the South Asian earthquake and tsunamis. The final settlement with the Securities and Exchange Commission, the United States Department of Justice and the United States Attorney for the Southern District of Indiana with respect to issues arising from certain transactions with Brightpoint, Inc., The PNC Financial Services Group, Inc. and related matters resulted in an after-tax charge of $53.0 million or $0.02 per share for the full year of 2004. Net income for 2004 excluding realized capital gains (losses), cumulative effect of accounting changes, catastrophe losses and the settlement charge increased 18.8 percent to $12.19 billion or $4.63 per share, compared to $10.26 billion or $3.90 per share in 2003.

TWELVE MONTHS (in millions, except per share amounts) (unaudited) PER SHARE* ---------- 2004 2003 Change 2004 2003 Change ---- ---- ------ ---- ---- ------ Net income $ 11,047.8 $ 9,274.2 19.1% $ 4.19 $ 3.52 19.0% Realized capital gains (losses), net of tax (226.4) (950.9) - (0.09) (0.36) - Cumulative effect of accounting changes, net of tax** (181.4) 8.8 - (0.07) - - Net income, excluding realized capital gains (losses) and cumulative effect of accounting changes, net of tax 11,455.7 10,216.3 12.1 4.35 3.88 12.1 Catastrophe losses, net of tax (682.7) (46.2) - (0.26) (0.02) - Settlement charge, net of tax (53.0) - - (0.02) - - Net income, excluding realized capital gains (losses), cumulative effect of accounting changes, catastrophe losses and settlement charge, net of tax $ 12,191.4 $ 10,262.5 18.8% $ 4.63 $ 3.90 18.7% Average shares outstanding 2,637.3 2,637.3 * Reflects the adoption of EITF Issue No. 04-8 "Accounting Issues Related to Certain Features of Contingently Convertible Debt and the Effect on Diluted Earnings per Share." The impact on net income was $0.01 per share for the years 2004 and 2003. ** Represents the cumulative effect of accounting changes, net of tax, related to SOP 03-1 "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts" in 2004 and FIN46R "Consolidation of Variable Interest Entities" in 2003. Net income for the fourth quarter of 2004 rose 11.5 percent to $3.02 billion or $1.15 per share, compared to $2.71 billion or $1.03 per share in the fourth quarter of 2003. For the fourth quarter 2004, net income excluding realized capital gains (losses) and the cumulative effect of an accounting change increased 11.6 percent to $3.07 billion or $1.17 per share, compared to $2.75 billion or $1.05 per share in the same period of 2003. 2

Fourth quarter 2004 after-tax net catastrophe losses were $170.5 million or $0.07 per share, compared to no catastrophe losses incurred in the same period of 2003. The above mentioned settlement resulted in a fourth quarter 2004 after-tax charge of $53.0 million or $0.02 per share. For the fourth quarter of 2004, net income excluding realized capital gains (losses), the cumulative effect of an accounting change, catastrophe losses and the settlement charge increased 19.7 percent to $3.29 billion or $1.26 per share, compared to $2.75 billion or $1.05 per share in the same period of 2003. FOURTH QUARTER (in millions, except per share amounts) (unaudited) PER SHARE* ---------- 2004 2003 Change 2004 2003 Change ---- ---- ------ ---- ---- ------ Net income $ 3,017.5 $ 2,707.3 11.5% $ 1.15 $ 1.03 11.7% Realized capital gains (losses), net of tax (52.9) (53.1) - (0.02) (0.02) - Cumulative effect of an accounting change, net of tax** - 8.8 - - - - Net income, excluding realized capital gains (losses) and cumulative effect of an accounting change, net of tax 3,070.4 2,751.6 11.6 1.17 1.05 11.4 Catastrophe losses, net of tax (170.5) - - (0.07) - - Settlement charge, net of tax (53.0) - - (0.02) - - Net income, excluding realized capital gains (losses), cumulative effect of an accounting change, catastrophe losses and settlement charge, net of tax $ 3,293.8 $ 2,751.6 19.7% $ 1.26 $ 1.05 20.0% Average shares outstanding 2,632.0 2,636.4 * Reflects the adoption of EITF Issue No. 04-8 "Accounting Issues Related to Certain Features of Contingently Convertible Debt and the Effect on Diluted Earnings per Share." The impact on net income was $0.01 per share for the years 2004 and 2003. ** Represents the cumulative effect of an accounting change, net of tax, related to FIN46R "Consolidation of Variable Interest Entities" in 2003. 3

Income before income taxes, minority interest and cumulative effect of accounting changes for the full year 2004 was $17.25 billion, a 24.0 percent increase over $13.91 billion in 2003. Income before income taxes, minority interest and cumulative effect of an accounting change for the fourth quarter of 2004 was $4.61 billion, a 13.9 percent increase over $4.05 billion in the same period of 2003. The following chart provides a summary of the realized capital (gains) losses, catastrophe losses and settlement charge included in these results: TWELVE MONTHS FOURTH QUARTER (in millions) (unaudited) 2004 2003 Change 2004 2003 Change --------- --------- ------ --------- --------- ------ Income before income taxes, minority interest and cumulative effect of accounting changes $17,250.0 $13,908.3 24.0% $ 4,612.3 $ 4,050.5 13.9% Realized capital (gains) losses 317.3 1,433.1 68.8 85.3 Catastrophe Losses: Domestic Brokerage Group 526.6 47.5 120.8 - Personal Lines 24.7 5.0 - - Transatlantic Holdings, Inc. (a) 215.0 3.5 50.0 - Foreign General 217.3 16.5 77.0 - Life (Home Service) (b) 4.7 - - - Minority owned companies - AIG share: Allied World Assurance Holdings, Ltd 39.4 - - - IPC Holdings, Ltd. 39.4 - 15.0 - Fuji Fire & Marine Insurance Company Limited 17.4 - 7.4 - --------- --------- --------- --------- Total Catastrophe Losses 1,084.5 72.5 270.2 - Settlement charge 38.5 - 38.5 - Income before income taxes, minority interest, cumulative effect of accounting changes, realized capital (gains) losses, catastrophe losses and settlement charge $18,690.3 $15,413.9 21.3% $ 4,989.8 $ 4,135.8 20.6% (a) AIG's share is $129.0 million in 2004 and $2.1 million in 2003 and $30.0 million in the fourth quarter 2004. (b) Relates to minor property-casualty subsidiaries currently in runoff. 4

HIGHLIGHTS OF CONSOLIDATED 2004 RESULTS INCLUDE: 2004 2003 Change --------------- -------------- ------ (unaudited) CONSOLIDATED Revenues (a) Full Year $ 98.61 BILLION* $81.30 billion 21.3% Fourth Quarter $ 25.76 BILLION* $22.18 billion 16.1% Net Income Full Year $ 11.05 BILLION* $ 9.27 billion 19.1% Fourth Quarter $ 3.02 BILLION* $ 2.71 billion 11.5% Adjusted Net Income (b) Full Year $ 11.46 BILLION* $10.22 billion 12.1% Fourth Quarter $ 3.07 BILLION* $ 2.75 billion 11.6% Adjusted Net Income, excluding catastrophe losses and settlement charge Full Year $ 12.19 BILLION* $10.26 billion 18.8% Fourth Quarter $ 3.29 BILLION* $ 2.75 billion 19.7% Shareholders' Equity At December 31 $ 83 BILLION* $ 71 billion 16.3% Retained Earnings At December 31 $ 71 BILLION* $ 61 billion 16.9% Return on Equity (c) At December 31, as presented 16.5% 17.2% Excluding catastrophe losses and settlement charge 17.5% 17.3% Consolidated Assets At December 31 $ 800 BILLION* $ 678 billion 18.0% Insurance Cash Flow (d) Full Year $ 58.79 BILLION* $46.90 billion 25.4% Fourth Quarter $ 14.25 BILLION $14.55 billion (2.1%) * Indicates a record. (a) Represents the sum of General Insurance net premiums earned, GAAP Life Insurance & Retirement Services premiums, net investment income, Financial Services interest, lease and finance charges, Asset Management advisory and management fees, net investment income with respect to Guaranteed Investment Contracts (GICs) and realized capital gains (losses). (b) Excludes realized capital gains (losses) and cumulative effect of accounting changes, net of tax. (c) See reconciliation to GAAP ROE in the supplementary earnings data. (d) In addition to General Insurance cash flow, includes Life Insurance & Retirement Services cash flow for investment, which generates the investment income necessary to meet policyholder obligations and to provide a profit margin to shareholders, as well as net cash flow from GICs. 5

Commenting on these results, AIG Chairman M. R. Greenberg said, "AIG earned record net income in 2004, even after accounting for the unprecedented devastation from the hurricanes, typhoons, earthquake and tsunamis in the second half of the year, which affected the entire industry. In addition, AIG took a charge of $53.0 million after-tax in the fourth quarter in connection with the previously reported settlement reached concerning the Brightpoint and PNC transactions and related matters. The amount of this charge reflects the fact that part of the total cost of the settlement was borne by the AIG Financial Products Corp. incentive compensation pool. "The diversification of AIG - with its four principal business segments, multiple profit centers and broad geographic presence throughout the world - was an especially valuable strength for AIG in 2004. When one or more businesses does not meet our expectations for reasons such as catastrophe losses, market changes or other issues, we have several other profit centers that perform at or above expectations that can enable us to meet our overall objectives. Our ability to absorb $682.7 million in catastrophe losses, tackle challenging regulatory issues and navigate through a volatile global economic and political environment and still achieve record net income is a testament to the diversity and strength of our franchise. This diversification, coupled with our unsurpassed capital base, is also a pillar of financial security for our customers. "AIG has also taken several steps in response to the regulatory issues that we faced in 2004. We are implementing the settlements of the Brightpoint and PNC transactions. In addition, AIG has been continuing to cooperate with state attorneys general and insurance departments in connection with their investigations of certain practices of brokers and insurers. Approximately 40 outside attorneys have assisted us in our internal review, and they have examined in excess of 850,000 emails and 30,000 documents. Based on all of the information we have today, we continue to believe that the issue that has been the primary focus of the New York Attorney General's investigation of AIG is confined to one broker relationship and one unit, the Excess Casualty Division of American Home Assurance Company. "We will continue to do whatever it takes to assure that every one of our 92,000 employees upholds the highest ethical standards. AIG has formed a Complex Structured Finance Transaction Committee comprised of senior executives from the businesses and from the finance, legal and claims functions to review certain proposed transactions. Since April, AIG Financial Products Corp. has also had its own Transaction Review Committee. "In order to provide the highest standards of risk management throughout the organization, we brought together our credit, market and operational risk management capabilities into one Enterprise Risk Management department, which is led by a senior executive who brings nearly 30 years of experience to the function. "Also, we have augmented on a worldwide basis, in several different languages, our ethics education program to reinforce the standards set forth in our Code of Conduct. We have enhanced the role of the Chief Compliance Officer, who has the support of 250 compliance officers around the world. Employees have a Compliance Help Line they can contact that is accessible in more than 70 languages. "Although we are giving these issues our full attention, they have not distracted us from managing our businesses, serving our customers and performing for our shareholders." 6

GENERAL INSURANCE TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, (in millions) (unaudited) 2004 2003 CHANGE 2004 2003 CHANGE ----------- ------------- ------ -------------- ------------ ------ GENERAL INSURANCE OPERATIONS*: Net Premiums Written $ 41,902.1 $ 35,211.8 19.0 % $ 10,578.9 $ 9,159.2 15.5 % Underwriting Profit 1,871.3 2,220.8 (15.7) 504.4 551.2 (8.5) Net Investment Income 3,559.2 3,021.6 17.8 940.7 764.4 23.1 Operating Income before Realized Capital Gains (Losses) 5,430.5 5,242.4 3.6 1,445.2 1,315.6 9.9 OPERATING INCOME, EXCLUDING REALIZED CAPITAL GAINS (LOSSES) AND CATASTROPHE LOSSES 6,414.1 5,314.9 20.7 1,693.0 1,315.6 28.7 Cash Flow $ 14,191 $ 13,631 4.1 % $ 3,841 $ 4,136 (7.1)% ----------- ------------- ------ -------------- ------------ Combined Ratio 95.02 92.43 94.25 91.39 Combined Ratio, excluding Catastrophe Losses 92.53 92.20 91.87 91.39 ----------- ------------- ------ -------------- ------------ * Reconciliation in accordance with Regulation G provided in Financial Highlights and Supplementary Earnings Data. General Insurance had a solid year and quarter in the U.S. and around the world, in spite of record levels of catastrophe losses. The full year 2004 combined ratio of 95.02, including 2.49 points of catastrophe losses, demonstrates the strength of our underwriting discipline. Worldwide General Insurance net investment income increased 17.8 percent for the full year 2004, and fourth quarter 2004 net investment income increased 23.1 percent. Strong cash flow as well as very strong partnership income contributed to this growth. General Insurance cash flow totaled a record $14.19 billion in 2004. At December 31, 2004, General Insurance net loss and loss adjustment reserves totaled $46.26 billion, an increase of $9.61 billion and $2.44 billion in the full year and fourth quarter, respectively. In the United States, the Domestic Brokerage Group did well even after accounting for the four hurricanes. Lexington, the largest excess and surplus lines carrier and a major underwriter of property insurance, was significantly impacted by catastrophe losses. Domestic property-casualty rates are generally satisfactory at this time, although in some classes of business, including property, D&O and energy, rates should be firmer. The AIG companies will maintain our standards, however, and not follow rates down to levels considered unacceptable. HSB Group, the leader in equipment breakdown insurance, had another year of record premiums and record underwriting results. Domestic Personal Lines, including the Private Client Group, had solid underwriting results and strong premium growth in 2004. AIG United Guaranty Corporation achieved record premiums in 2004, excellent 7

underwriting results that are substantially better than the overall mortgage guaranty insurance industry and continued expansion of its international operations. Transatlantic Holdings, Inc., which was substantially impacted by record catastrophes in the U.S. and around the world, had operating income of $259.8 million in 2004 compared to $379.6 million last year. Underlying results were strong, as operating income excluding catastrophe losses increased 23.9 percent. Foreign General Insurance, one of AIG's crown jewels, had excellent results in 2004, and performed well in every region around the world. Despite sustaining $217.3 million in catastrophe losses, Foreign General produced $841.5 million in underwriting income, achieved a combined ratio of 88.78 and generated net investment income of $647.5 million. These results are a testament to Foreign General's extensive geographic network, diverse product mix, underwriting skill and broad distribution, which are unmatched in the industry. LIFE INSURANCE & RETIREMENT SERVICES TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, (in millions) (unaudited) 2004 2003 (A) CHANGE 2004 2003 (A) CHANGE ----------- ---------- ------ ---------- ------------ ------ LIFE INSURANCE & RETIREMENT SERVICES OPERATIONS*: GAAP Premiums $ 28,396.8 $ 23,491.5 20.9% $ 7,295.4 $ 6,507.4 12.1% Premiums, Deposits and Other Considerations 66,911.3 53,106.8 26.0 16,314.8 16,128.2 1.2 Net Investment Income 15,793.3 13,574.1 16.3 4,151.2 3,628.7 14.4 Operating Income before Realized Capital Gains (Losses) $ 8,686.0 $ 7,281.4 19.3% $ 2,277.6 $ 1,965.7 15.9% ----------- ---------- ------ ---------- ------------ ------ * Reconciliation in accordance with Regulation G provided in Financial Highlights and Supplementary Earnings Data. (a) Restated to conform to 2004 presentation. Worldwide Life Insurance & Retirement Services results were very good overall. AIG's Foreign Life Insurance & Retirement Services operations continued to have outstanding results, with record operating income and strong premium growth in both the full year and fourth quarter. AIG's Domestic Life Insurance business had mixed results, while the Domestic Retirement Services business was excellent. The Foreign Life business in Asia achieved - as it has historically - excellent growth and profitability. Japan and China had particularly strong growth and Southeast Asia overall performed satisfactorily. In China, where AIG has a 57 percent market share of the total 2004 premiums written by foreign insurers, first year life insurance premiums increased 36.6 percent in 2004 over the prior year. In addition, we had very good results in Greece, Central Europe and Russia. The Foreign Retirement Services business continues its strong growth as we have built upon our success in Japan and Korea by expanding our extensive distribution network and leveraging our product expertise to introduce annuity products in new markets. In 8

January, AIG Star Life Insurance Co., Ltd. entered into an agreement with the Bank of Tokyo Mitsubishi, one of Japan's largest banks, to market a multi-currency fixed annuity. Domestic Life Insurance results from term life, universal life and structured settlement products were strong. However, AGLA, the home services business, lagged our objectives. We are redesigning the company from the ground up, diversifying product offerings, enhancing the capabilities and quality of the sales force and broadening the markets served beyond those historically serviced by AGLA. We expect these steps will begin to show positive results toward the second half of 2005. In the meantime the company generates strong cash flow. Domestic Group Life performance also was weak in 2004, as we discussed in previous quarters. Restructuring efforts in this business are focused on new product introductions, cross selling and other growth strategies. Results should begin to be evident later in 2005. Domestic Retirement Services had outstanding profitability in each of its three principal businesses - group retirement products, individual fixed annuities and individual variable annuities. AIG VALIC, the group retirement business, broke the billion dollar mark in operating income. Annuity and mutual fund deposits were $6.50 billion in 2004 and general and separate account reserves were $56.12 billion at year end, both of which increased approximately 10 percent. The individual fixed annuity business, primarily AIG Annuity, had record operating income in 2004. Rising short-term interest rates in the latter part of 2004 and aggressive competitor pricing contributed to the difficult sales and net flow comparisons, but we have developed strategies to deal with the changing environment. The company will remain disciplined in pricing and return requirements. AIG SunAmerica Retirement Markets, the individual variable annuity business, reported record operating income and sales in 2004. Equity market gains, along with the strong increase in sales and net flows, resulted in a significant improvement in variable annuity fee income when compared to 2003. The decrease in fourth quarter sales followed declining equity markets in the third quarter and the first half of the fourth quarter. We are continuing to increase the size of the wholesale organization as a measure to improve sales. 9

FINANCIAL SERVICES TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, (in millions) (unaudited) 2004 2003 CHANGE 2004 2003 CHANGE ---- ---- ------ ---- ---- ------ FINANCIAL SERVICES OPERATIONS: Revenues $7,684.0 $7,565.5 1.6 % $1,916.0 $2,069.8 (7.4)% Operating Income $2,379.0 $2,464.2 (3.5)% $ 591.2 $ 702.5 (15.8)% Financial Services overall had a difficult year in 2004. Of the three major components, Consumer Finance, both domestically and internationally, did very well with good top and bottom line growth. International Lease Finance Corporation (ILFC) had 2004 operating income of $739.4 million, an increase of 1.6 percent over 2003. Excluding the impact of the securitization of approximately $2 billion in aircraft in late 2003 and early 2004, operating income would have increased approximately 6.4 percent in 2004 and 9.2 percent in the fourth quarter 2004. The commercial aviation market showed good momentum in the fourth quarter, as ILFC continued to see net improvements in lease margins and an increasing level of interest from traditional buyers, third party investors and debt providers for the purchase of aircraft from ILFC's extensive lease portfolio. The outlook for 2005 is positive. Capital Markets earned $857.5 million in 2004, and although very profitable overall, these results lagged the prior year. At AIG Financial Products Corp. (AIGFP), the regulatory issue which resulted in the settlement charge had a negative impact on results. However, with the settlement completed, AIGFP is focused on its 2005 business opportunities and should do well going forward. ASSET MANAGEMENT TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, (in millions) (unaudited) 2004 2003 (a) CHANGE 2004 2003 (a) CHANGE ---- -------- ------ ---- -------- ------ ASSET MANAGEMENT OPERATIONS: Revenues $ 4,043.6 $ 3,349.1 20.7% $ 1,116.7 $ 890.7 25.4% Operating Income $ 1,175.9 $ 817.5 43.8% $ 307.2 $ 239.4 28.3% (a) Restated to conform to 2004 presentation. Asset Management operating income was $1.18 billion in 2004, compared to $817.5 million last year. Institutional Asset Management results in 2004 include $195 million in third party limited partner earnings from certain AIG managed private equity and real estate funds, now required to be consolidated under FIN46R. Assets under management increased to over $53 billion at year end. From a virtual start up in 1996, AIG now ranks among the top six institutional asset managers in the world. 10

Guaranteed Investment Contracts (GICs) contributed $636.3 million to operating income in 2004 compared to $546.8 million in 2003. GICs will continue to be sold on an opportunistic basis, and we are implementing a new institutional and retail sales program that should enable us to achieve enhanced rates of return from this business. In the Other Income/Deductions - net category, AIG reported a loss of $104.1 million in 2004 compared to a loss of $464.0 million a year earlier. The underlying improvement continues to be primarily attributable to increased income related to SunAmerica partnership investments. # # # # AIG is the world's leading international insurance and financial services organization, with operations in more than 130 countries and jurisdictions. AIG member companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In the United States, AIG companies are the largest underwriters of commercial and industrial insurance and AIG American General is a top-ranked life insurer. AIG's global businesses also include retirement services, financial services and asset management. AIG's financial services businesses include aircraft leasing, financial products, trading and market making. AIG's growing global consumer finance business is led in the United States by American General Finance. AIG also has one of the largest U.S. retirement services businesses through AIG SunAmerica and AIG VALIC, 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 in the U.S. on the New York Stock Exchange and ArcaEx, 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 Wednesday, February 23, 2005. 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, 2004 and AIG's 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. 11

COMMENT ON REGULATION G This press release, including the financial highlights and supplementary earnings data, includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures in accordance with Regulation G are included herein. Throughout this press release, AIG presents its operations in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use AIG's financial information in evaluating the performance of AIG. That presentation includes the use of certain non-GAAP measures. In addition to the GAAP presentations of net income and operating income, AIG shows both net income and operating income exclusive of realized capital gains (losses), catastrophe losses and the settlement charge. Although the investment of premiums to generate investment income (or loss) and realized capital gains or losses is an integral part of both life and general insurance operations, the determination to realize capital gains or losses is independent of the insurance underwriting process. Moreover, under applicable GAAP accounting requirements, losses can be created as a result of other than temporary declines in value without actual realization. In sum, investment income and realized capital gains or losses for any particular period are not indicative of quarterly business performance. AIG believes that a major part of the discipline of a successful general insurance company is to produce an underwriting profit, and it evaluates the performance of and manages its operations on that basis. Providing only a GAAP presentation of net income and operating income makes it much more difficult for users of AIG's financial information to evaluate AIG's success or failure in its basic business, that of insurance underwriting, and may, in AIG's opinion, lead to incorrect or misleading assumptions and conclusions. The equity analysts who follow AIG exclude the realized capital gains and losses in their analyses for the same reason, and consistently request that AIG provide the non-GAAP information. AIG presents net income and operating income excluding catastrophe losses because those losses are deemed to be significant for the twelve months and fourth quarter 2004. AIG believes that this separate presentation is both meaningful and useful for users of AIG's financial information. AIG presents life and retirement services production (premiums, deposits and other considerations), net premiums written and combined ratios in accordance with accounting principles prescribed or permitted by insurance regulatory authorities because these are standard measures of performance used in the insurance industry and thus allow for more meaningful comparisons with AIG's insurance competitors. AIG presents net income and operating income excluding the charge incurred with respect to the final settlement with the Securities and Exchange Commission, the United States Department of Justice and the United States Attorney for the Southern District of Indiana with respect to issues arising from certain transactions with Brightpoint, Inc., the PNC Financial Services Group, Inc. and related matters, because AIG considers such charge an unusual and non-recurring item. 12

AMERICAN INTERNATIONAL GROUP, INC. FINANCIAL HIGHLIGHTS* (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 CHANGE 2004 2003 CHANGE ------------ ------------ ------- ------------ ------------ ------- GENERAL INSURANCE OPERATIONS: Net Premiums Written $ 41,902,055 $ 35,211,785 19.0% $ 10,578,872 $ 9,159,196 15.5% Net Premiums Earned 39,455,092 31,734,307 24.3 10,406,215 8,403,206 23.8 Underwriting Profit 1,871,331 2,220,773 (15.7) 504,442 551,195 (8.5) Net Investment Income 3,559,214 3,021,601 17.8 940,743 764,363 23.1 Income before Realized Capital Gains (Losses) 5,430,545 5,242,374 3.6 1,445,185 1,315,558 9.9 Realized Capital Gains (Losses) 31,556 (172,461) - 12,702 158,264 - OPERATING INCOME 5,462,101 5,069,913 7.7 1,457,887 1,473,822 (1.1) OPERATING INCOME, EXCLUDING REALIZED CAPITAL GAINS (LOSSES) AND CATASTROPHE LOSSES $ 6,414,145 $ 5,314,874 20.7% $ 1,692,985 $ 1,315,558 28.7% ------------ ------------ ------- ------------ ------------ ------- Loss Ratio 75.20 73.33 73.93 71.83 Expense Ratio 19.82 19.10 20.32 19.56 Combined Ratio 95.02 92.43 94.25 91.39 Combined Ratio, excluding Catastrophe Losses 92.53 92.20 91.87 91.39 ------------ ------------ ------- ------------ ------------ ------- LIFE INSURANCE & RETIREMENT SERVICES OPERATIONS (a): GAAP Premiums $ 28,396,845 $ 23,491,466 20.9% $ 7,295,395 $ 6,507,399 12.1% Net Investment Income 15,793,315 13,574,121 16.3 4,151,240 3,628,711 14.4 Income before Realized Capital Gains (Losses) 8,685,966 7,281,351 19.3 2,277,564 1,965,711 15.9 Realized Capital Gains (Losses) (9,910) (701,718) - 96,413 (45,200) - OPERATING INCOME 8,676,056 6,579,633 31.9 2,373,977 1,920,511 23.6 FINANCIAL SERVICES OPERATING INCOME 2,378,958 2,464,169 (3.5) 591,221 702,452 (15.8) ASSET MANAGEMENT OPERATING INCOME (a)(b) 1,175,895 817,531 43.8 307,198 239,435 28.3 Other Realized Capital Gains (Losses) (a) (338,934) (558,927) - (177,920) (198,410) - Other Income (Deductions) - net (104,090) (464,011) - 59,948 (87,312) - INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES 17,249,986 13,908,308 24.0 4,612,311 4,050,498 13.9 Income Taxes 5,472,691 4,263,947 - 1,436,282 1,259,459 - INCOME BEFORE MINORITY INTEREST AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES 11,777,295 9,644,361 22.1 3,176,029 2,791,039 13.8 Minority Interest, after-tax- Income before Realized Capital Gains (Losses) (532,882) (378,494) - (151,034) (94,666) - Realized Capital Gains (Losses) (15,152) (440) - (7,531) 2,153 - INCOME BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGES 11,229,261 9,265,427 21.2 3,017,464 2,698,526 11.8 Cumulative Effect of Accounting Changes, net of tax (c) (181,431) 8,778 - 0 8,778 - NET INCOME $ 11,047,830 $ 9,274,205 19.1% $ 3,017,464 $ 2,707,304 11.5% 13

FINANCIAL HIGHLIGHTS TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 CHANGE 2004 2003 CHANGE ------------ ------------ ------- ------------ ------------- ------- NET INCOME $ 11,047,830 $ 9,274,205 19.1% $ 3,017,464 $ 2,707,304 11.5% REALIZED CAPITAL GAINS (LOSSES), NET OF TAX (226,439) (950,923) - (52,917) (53,088) - CUMULATIVE EFFECT OF ACCOUNTING CHANGES, NET OF TAX (c) (181,431) 8,778 - 0 8,778 - NET INCOME, EXCLUDING REALIZED CAPITAL GAINS (LOSSES) AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES, NET OF TAX 11,455,700 10,216,350 12.1 3,070,381 2,751,614 11.6 CATASTROPHE LOSSES, NET OF TAX (682,676) (46,215) - (170,470) 0 - SETTLEMENT CHARGE, NET OF TAX (52,997) 0 - (52,997) 0 - NET INCOME, EXCLUDING REALIZED CAPITAL GAINS (LOSSES), CUMULATIVE EFFECT OF ACCOUNTING CHANGES, CATASTROPHE LOSSES AND SETTLEMENT CHARGE, NET OF TAX $ 12,191,373 $ 10,262,565 18.8% $ 3,293,848 $ 2,751,614 19.7% PER SHARE - DILUTED (d): NET INCOME $ 4.19 $ 3.52 19.0% $ 1.15 $ 1.03 11.7% REALIZED CAPITAL GAINS (LOSSES), NET OF TAX (0.09) (0.36) - (0.02) (0.02) - CUMULATIVE EFFECT OF ACCOUNTING CHANGES, NET OF TAX (c) (0.07) 0.00 - 0.00 0.00 - NET INCOME, EXCLUDING REALIZED CAPITAL GAINS (LOSSES) AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES, NET OF TAX 4.35 3.88 12.1 1.17 1.05 11.4 CATASTROPHE LOSSES, NET OF TAX (0.26) (0.02) - (0.07) 0.00 - SETTLEMENT CHARGE, NET OF TAX (0.02) 0.00 - (0.02) 0.00 - NET INCOME, EXCLUDING REALIZED CAPITAL GAINS (LOSSES), CUMULATIVE EFFECT OF ACCOUNTING CHANGES, CATASTROPHE LOSSES AND SETTLEMENT CHARGE, NET OF TAX $ 4.63 $ 3.90 18.7% $ 1.26 $ 1.05 20.0% AVERAGE DILUTED COMMON SHARES OUTSTANDING (d) 2,637,290 2,637,280 2,632,049 2,636,437 * Including reconciliation in accordance with Regulation G. (a) 2003 is restated to conform to 2004 presentation. (b) Includes the results of certain AIG managed private equity and real estate funds consolidated effective December 31, 2003 pursuant to FIN46R, "Consolidation of Variable Interest Entities". For the fourth quarter and twelve months 2004, operating income includes $48 million and $195 million, respectively, of third-party limited partner earnings offset in Minority Interest Expense. (c) Represents the cumulative effect of accounting changes, net of tax, related to SOP 03-1 "Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts" in 2004 and FIN46R "Consolidation of Variable Interest Entities" in 2003. (d) Reflects the adoption of EITF Issue No. 04-8 "Accounting Issues Related to Certain Features of Contingently Convertible Debt and the Effect on Diluted Earnings per Share." The impact on net income was $0.01 per share for the years 2004 and 2003. 14

AMERICAN INTERNATIONAL GROUP, INC. OPERATING INCOME (IN THOUSANDS) (UNAUDITED) TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 CHANGE 2004 2003 CHANGE ------------ ------------ ------- ------------ ------------ ------- GENERAL INSURANCE: Domestic Brokerage Group $ 2,950,712 $ 2,728,087 8.2% $ 806,217 $ 710,534 13.5% Personal Lines 351,299 252,495 39.1 101,165 79,582 27.1 Mortgage Guaranty 379,345 406,547 (6.7) 83,119 87,380 (4.9) Transatlantic Holdings 259,790 379,591 (31.6) 85,775 103,082 (16.8) Foreign General (a) 1,488,925 1,468,784 1.4 368,790 333,262 10.7 Intercompany Adjustments 474 6,870 - 119 1,718 - Realized Capital Gains (Losses) 31,556 (172,461) - 12,702 158,264 - LIFE INSURANCE & RETIREMENT SERVICES (B): Domestic Life Insurance 898,005 807,568 11.2 226,408 211,889 6.9 Home Service 390,237 400,126 (2.5) 90,073 101,504 (11.3) Group Life/Health 97,424 119,957 (18.8) 26,006 32,047 (18.9) Payout Annuities (c) 140,344 125,956 11.4 34,727 30,406 14.2 Retirement Services Group Retirement Products 1,087,897 901,718 20.6 282,079 226,227 24.7 Individual Fixed Annuities 928,316 708,160 31.1 265,490 216,382 22.7 Individual Variable Annuities 173,323 66,251 161.6 41,114 29,708 38.4 Individual Annuities - Runoff (d) 171,520 209,692 (18.2) 33,329 47,707 (30.1) Intercompany Adjustments (378) (302) - (101) (87) - Realized Capital Gains (Losses) (289,374) (419,558) - (118,960) (92,616) - Foreign Life Insurance 3,133,748 2,779,749 12.7 835,562 733,693 13.9 Personal Accident & Health 1,156,337 851,902 35.7 305,325 243,553 25.4 Group Products 252,151 202,131 24.7 53,956 52,577 2.6 Retirement Services Individual Fixed Annuities 262,257 122,299 114.4 81,732 43,111 89.6 Individual Variable Annuities 13,167 849 - 6,788 1,261 438.3 Intercompany Adjustments (18,382) (14,705) - (4,924) (4,267) - Realized Capital Gains (Losses) 279,464 (282,160) - 215,373 47,416 - FINANCIAL SERVICES: Aircraft Finance 739,410 727,956 1.6 192,533 179,599 7.2 Capital Markets 857,480 1,085,894 (21.0) 193,645 357,231 (45.8) Consumer Finance 787,132 648,864 21.3 207,724 160,311 29.6 Other (e) (5,064) 1,455 - (2,681) 5,311 - ASSET MANAGEMENT (B): Guaranteed Investment Contracts Domestic 592,780 505,451 17.3 146,496 144,872 1.1 Foreign 43,519 41,368 5.2 12,398 9,277 33.6 Institutional Asset Management (f)(g) 470,031 210,955 122.8 132,105 69,266 90.7 Brokerage Services and Mutual Funds 69,565 59,757 16.4 16,199 16,020 1.1 Other Realized Capital Gains (Losses) (b) (338,934) (558,927) - (177,920) (198,410) - Other Income (Deductions) - net (104,090) (464,011) - 59,948 (87,312) - INCOME BEFORE INCOME TAXES, MINORITY INTEREST AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES 17,249,986 13,908,308 24.0 4,612,311 4,050,498 13.9 INCOME BEFORE INCOME TAXES, MINORITY INTEREST, REALIZED CAPITAL GAINS (LOSSES) AND CUMULATIVE EFFECT OF ACCOUNTING CHANGES $ 17,567,274 $ 15,341,414 14.5% $ 4,681,116 $ 4,135,844 13.2% (a) Foreign General insurance excludes the foreign operations of Transatlantic Holdings, Inc. (b) 2003 is restated to conform to 2004 presentation. (c) Includes Structured Settlements, Single Premium Immediate Annuities and Terminal Funding Annuities. (d) Represents runoff annuity business sold through merger related discontinued distribution relationships. (e) Includes other financial services companies and intercompany reclassifications. (f) Includes AIG Global Investment Group and certain smaller asset management operations. (g) Includes the results of certain AIG managed private equity and real estate funds consolidated effective December 31, 2003 pursuant to FIN46R, "Consolidation of Variable Interest Entities". For the fourth quarter and twelve months 2004, operating income includes $48 million and $195 million, respectively, of third-party limited partner earnings offset in Minority Interest Expense. 15

AMERICAN INTERNATIONAL GROUP, INC. SUPPLEMENTARY EARNINGS DATA* (IN THOUSANDS) (UNAUDITED) TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 CHANGE 2004 2003 CHANGE ------------ ------------ ------ ------------ ----------- ------- GENERAL INSURANCE OPERATIONS: NET PREMIUMS WRITTEN Domestic Brokerage Group $ 23,752,212 $ 20,061,153 18.4 % $ 6,205,755 $ 5,327,656 16.5 % Personal Lines 4,327,813 3,706,108 16.8 1,039,453 1,002,322 3.7 Mortgage Guaranty 607,247 531,558 14.2 154,600 141,546 9.2 Transatlantic Holdings 3,749,274 3,341,077 12.2 927,222 868,891 6.7 Foreign General (a) 9,465,509 7,571,889 25.0 2,251,842 1,818,781 23.8 ------------ ------------ ------------ ----------- TOTAL 41,902,055 35,211,785 19.0 10,578,872 9,159,196 15.5 OPERATING INCOME Domestic Brokerage Group (b) 2,950,712 2,728,087 8.2 806,217 710,534 13.5 Personal Lines (b) 351,299 252,495 39.1 101,165 79,582 27.1 Mortgage Guaranty 379,345 406,547 (6.7) 83,119 87,380 (4.9) Transatlantic Holdings (b) 259,790 379,591 (31.6) 85,775 103,082 (16.8) Foreign General (a)(b)(c) 1,488,925 1,468,784 1.4 368,790 333,262 10.7 Intercompany Adjustments 474 6,870 - 119 1,718 - ------------ ------------ ------------ ----------- TOTAL BEFORE REALIZED CAPITAL GAINS 5,430,545 5,242,374 3.6 1,445,185 1,315,558 9.9 Realized Capital Gains (Losses) 31,556 (172,461) - 12,702 158,264 - OPERATING INCOME $ 5,462,101 $ 5,069,913 7.7 % $ 1,457,887 $ 1,473,822 (1.1)% ------------ ------------ --- ------------ ----------- ---- COMBINED RATIO: Domestic Brokerage Group 97.18 94.38 95.73 93.53 Personal Lines 96.17 97.38 95.87 96.03 Mortgage Guaranty 54.60 48.67 63.27 54.57 Transatlantic Holdings 101.46 96.46 100.69 96.03 Foreign General (a) 88.78 87.49 89.45 86.91 TOTAL 95.02 92.43 94.25 91.39 ------------ ------------ ------------ ----------- OPERATING INCOME EXCLUDING CATASTROPHE LOSSES: Domestic Brokerage Group (b) $ 3,477,312 $ 2,775,587 25.3 % $ 927,017 $ 710,534 30.5 % Personal Lines (b) 375,999 257,495 46.0 101,165 79,582 27.1 Mortgage Guaranty 379,345 406,547 (6.7) 83,119 87,380 (4.9) Transatlantic Holdings (b) 474,790 383,091 23.9 135,775 103,082 31.7 Foreign General (a)(b)(c) 1,706,225 1,485,284 14.9 445,790 333,262 33.8 Intercompany Adjustments 474 6,870 - 119 1,718 - ------------ ------------ ------------ ----------- TOTAL BEFORE REALIZED CAPITAL GAINS (LOSSES) AND CATASTROPHE LOSSES $ 6,414,145 $ 5,314,874 20.7 % $ 1,692,985 $ 1,315,558 28.7 % ------------ ------------ --- ------------ ----------- ---- COMBINED RATIO EXCLUDING CATASTROPHE LOSSES: Domestic Brokerage Group 94.81 94.10 93.71 93.53 Personal Lines 95.59 97.25 95.87 96.03 Mortgage Guaranty 54.60 48.67 63.27 54.57 Transatlantic Holdings 95.59 96.35 95.32 96.03 Foreign General (a) 86.30 87.26 86.05 86.91 TOTAL 92.53 92.20 91.87 91.39 * Including reconciliation in accordance with Regulation G. (a) Foreign General insurance excludes the foreign operations of Transatlantic Holdings, Inc. (b) Pretax catastrophe losses for the fourth quarter 2004 by segment were: Domestic Brokerage Group $120.8 million, Transatlantic Holdings $50.0 million and Foreign General $77.0 million. Pretax catastrophe losses for the twelve months 2004 by segment were: Domestic Brokerage Group $526.6 million, Personal Lines $24.7 million, Transatlantic Holdings $215.0 million and Foreign General $217.3 million. Pretax catastrophe losses for the fourth quarter 2003 were $0. Pretax catastrophe losses for the twelve months 2003 by segment were: Domestic Brokerage Group $47.5 million, Personal Lines $5.0 million, Transatlantic Holdings $3.5 million and Foreign General $16.5 million. (c) Operating income reflects lower net investment income due to timing of private equity and partnership distributions. Excluding catastrophe losses, fourth quarter and twelve months 2004 underwriting profit rose 50.1% and 32.8%, respectively, compared to the same periods in 2003. 16

SUPPLEMENTARY EARNINGS DATA TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 CHANGE 2004 2003 CHANGE ------------ ------------ ------ ------------ ----------- ------- GENERAL INSURANCE OPERATIONS: Losses and Loss Expenses Paid (a) $ 20,056,298 $ 17,363,301 15.5 % $ 5,251,348 $ 4,480,244 17.2 % Change in Loss and Loss Expense Reserve 9,614,056 5,906,211 62.8 2,442,305 1,555,551 57.0 ------------ ------------ ------------ ----------- Losses and Loss Expenses Incurred 29,670,354 23,269,512 27.5 7,693,653 6,035,795 27.5 Net Loss and Loss Expense Reserve 46,261,144 36,647,088 26.2 UNDERWRITING PROFIT 1,871,331 2,220,773 (15.7) 504,442 551,195 (8.5) UNDERWRITING PROFIT EXCLUDING CATASTROPHE LOSSES $ 2,854,931 $ 2,293,273 24.5 % $ 752,242 $ 551,195 36.5 % FOREIGN EXCHANGE IMPACT ON GROWTH OF NET PREMIUMS WRITTEN WORLDWIDE Growth in Original Currency 16.9 % 14.2 % Foreign Exchange Impact 2.1 1.3 Growth as Reported in U.S. $ 19.0 15.5 FOREIGN GENERAL (b) Growth in Original Currency 17.0 19.2 Foreign Exchange Impact 8.0 4.6 Growth as Reported in U.S. $ 25.0 % 23.8 % (a) The paid loss ratios for the three months ended December 31, 2004 and 2003 were 50.46 and 53.32, respectively. The paid loss ratios for the twelve months ended December 31, 2004 and 2003 were 50.83 and 54.72, respectively. Additionally, 2004 paid losses were impacted by the inclusion of GE personal lines business, which was acquired at the end of August 2003. (b) Foreign General insurance excludes the foreign operations of Transatlantic Holdings, Inc. 17

SUPPLEMENTARY EARNINGS DATA TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 (a) CHANGE 2004 2003 (a) CHANGE ------------ ------------ ------ ------------ ----------- ------- LIFE INSURANCE & RETIREMENT SERVICES OPERATIONS: GAAP PREMIUMS DOMESTIC Life Insurance $ 1,881,392 $ 1,747,954 7.6 % $ 474,413 $ 433,842 9.4 % Home Service 811,802 834,212 (2.7) 199,936 209,052 (4.4) Group Life/Health 1,128,091 1,046,192 7.8 269,582 281,751 (4.3) Payout Annuities (b) 1,484,314 1,272,123 16.7 358,295 263,706 35.9 Retirement Services Group Retirement Products 312,951 250,409 25.0 81,833 70,475 16.1 Individual Fixed Annuities 58,482 52,933 10.5 15,810 17,712 (10.7) Individual Variable Annuities 407,443 330,795 23.2 107,370 91,171 17.8 Individual Annuities - Runoff(c) 80,344 85,440 (6.0) 21,774 24,228 (10.1) ------------ ------------ ------------ ----------- TOTAL 6,164,819 5,620,058 9.7 1,529,013 1,391,937 9.8 FOREIGN Life Insurance 15,247,705 13,202,404 15.5 4,112,802 3,765,837 9.2 Personal Accident & Health 4,302,226 3,126,249 37.6 1,130,717 940,244 20.3 Group Products (d) 2,218,822 1,266,909 75.1 387,201 322,110 20.2 Retirement Services Individual Fixed Annuities 395,360 254,483 55.4 113,020 80,463 40.5 Individual Variable Annuities 67,913 21,363 217.9 22,642 6,808 232.6 ------------ ------------ ------------ ----------- TOTAL 22,232,026 17,871,408 24.4 5,766,382 5,115,462 12.7 TOTAL GAAP PREMIUMS 28,396,845 23,491,466 20.9 7,295,395 6,507,399 12.1 ------------ ------------ ---- ------------ ----------- ---- PREMIUMS, DEPOSITS AND OTHER CONSIDERATIONS (e) DOMESTIC Life Insurance 2,834,990 2,693,975 5.2 697,992 692,696 0.8 Home Service 964,889 985,403 (2.1) 234,913 253,655 (7.4) Group Life/Health 1,117,634 1,060,254 5.4 269,582 288,133 (6.4) Payout Annuities 2,172,019 1,750,773 24.1 534,556 465,139 14.9 Retirement Services Group Retirement Products 5,555,081 5,359,804 3.6 1,413,244 1,355,189 4.3 Individual Fixed Annuities 9,947,209 11,383,801 (12.6) 1,981,406 3,198,907 (38.1) Individual Variable Annuities 4,126,321 3,412,173 20.9 869,336 926,735 (6.2) Individual Annuities - Runoff 252,376 349,762 (27.8) 58,328 74,533 (21.7) ------------ ------------ ------------ ----------- TOTAL 26,970,519 26,995,945 (0.1) 6,059,357 7,254,987 (16.5) FOREIGN Life Insurance 18,676,702 15,354,102 21.6 5,022,857 4,419,672 13.6 Personal Accident & Health 4,329,135 3,113,370 39.0 1,124,718 927,082 21.3 Group Products (d) 3,324,325 2,047,073 62.4 617,219 499,801 23.5 Retirement Services Individual Fixed Annuities 11,981,097 4,376,000 173.8 3,089,070 2,710,278 14.0 Individual Variable Annuities 1,629,476 1,220,337 33.5 401,559 316,397 26.9 ------------ ------------ ------------ ----------- TOTAL 39,940,735 26,110,882 53.0 10,255,423 8,873,230 15.6 TOTAL PREMIUMS, DEPOSITS AND OTHER CONSIDERATIONS $ 66,911,254 $ 53,106,827 26.0 % $ 16,314,780 $16,128,217 1.2 % (a) Restated to conform to 2004 presentation. (b) Includes Structured Settlements, Single Premium Immediate Annuities and Terminal Funding Annuities. (c) Represents runoff annuity business sold through merger related discontinued distribution relationships. (d) Twelve months 2004 include approximately $640 million of premium from a reinsurance transaction involving terminal funding business. This single premium amount is offset by a similar amount of benefits incurred. (e) Premiums, deposits and other considerations represent aggregate business activity during the respective periods presented on a non-GAAP basis. 18

SUPPLEMENTARY EARNINGS DATA TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 (a) CHANGE 2004 2003 (a) CHANGE ----------- ----------- ------ ----------- ----------- ------ LIFE INSURANCE & RETIREMENT SERVICES OPERATIONS: OPERATING INCOME DOMESTIC Life Insurance $ 898,005 $ 807,568 11.2% $ 226,408 $ 211,889 6.9% Home Service (b) 390,237 400,126 (2.5) 90,073 101,504 (11.3) Group Life/Health 97,424 119,957 (18.8) 26,006 32,047 (18.9) Payout Annuities 140,344 125,956 11.4 34,727 30,406 14.2 Retirement Services Group Retirement Products 1,087,897 901,718 20.6 282,079 226,227 24.7 Individual Fixed Annuities 928,316 708,160 31.1 265,490 216,382 22.7 Individual Variable Annuities 173,323 66,251 161.6 41,114 29,708 38.4 Individual Annuities - Runoff 171,520 209,692 (18.2) 33,329 47,707 (30.1) Intercompany Adjustments (378) (302) - (101) (87) - ----------- ----------- ----------- ----------- TOTAL DOMESTIC BEFORE REALIZED CAPITAL GAINS (LOSSES) 3,886,688 3,339,126 16.4 999,125 895,783 11.5 Realized Capital Gains (Losses) (289,374) (419,558) - (118,960) (92,616) - ----------- ----------- ----------- ----------- DOMESTIC OPERATING INCOME 3,597,314 2,919,568 23.2 880,165 803,167 9.6 FOREIGN Life Insurance 3,133,748 2,779,749 12.7 835,562 733,693 13.9 Personal Accident & Health 1,156,337 851,902 35.7 305,325 243,553 25.4 Group Products 252,151 202,131 24.7 53,956 52,577 2.6 Retirement Services Individual Fixed Annuities 262,257 122,299 114.4 81,732 43,111 89.6 Individual Variable Annuities 13,167 849 - 6,788 1,261 438.3 Intercompany Adjustments (18,382) (14,705) - (4,924) (4,267) - ----------- ----------- ----------- ----------- TOTAL FOREIGN BEFORE REALIZED CAPITAL GAINS (LOSSES) 4,799,278 3,942,225 21.7 1,278,439 1,069,928 19.5 Realized Capital Gains (Losses) 279,464 (282,160) - 215,373 47,416 - ----------- ----------- ----------- ----------- FOREIGN OPERATING INCOME 5,078,742 3,660,065 38.8 1,493,812 1,117,344 33.7 WORLDWIDE LIFE INSURANCE & RETIREMENT SERVICES BEFORE REALIZED CAPITAL GAINS (LOSSES) 8,685,966 7,281,351 19.3 2,277,564 1,965,711 15.9 Realized Capital Gains (Losses) (9,910) (701,718) - 96,413 (45,200) - ----------- ----------- ----------- ----------- WORLDWIDE OPERATING INCOME $ 8,676,056 $ 6,579,633 31.9% $ 2,373,977 $ 1,920,511 23.6% (a) Restated to conform to 2004 presentation. (b) Twelve months 2004 include $4.7 million of catastrophe losses relating to minor property-casualty subsidiaries currently in run-off. 20

SUPPLEMENTARY EARNINGS DATA TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 (a) CHANGE 2004 2003 (a) CHANGE ------------- ------------- ------ ----------- ----------- ------ LIFE INSURANCE & RETIREMENT SERVICES OPERATIONS: DOMESTIC - OTHER DATA LIFE INSURANCE Periodic Premium Sales (b): Individual/Retail $ 480,758 $ 352,427 36.4% $ 128,105 $ 95,287 34.4 % Institutional Markets 32,931 74,263 (55.7) 7,990 16,123 (50.4) ------------- ------------- ----------- ----------- Total Periodic Sales 513,689 426,690 20.4 136,095 111,410 22.2 Unscheduled & Single Deposits 364,939 372,340 (2.0) 62,998 80,340 (21.6) Life Insurance Reserves 20,257,937 19,340,791 4.7 HOME SERVICE Product Sales Life/Accident & Health (b) 111,315 111,810 (0.4) 27,379 28,361 (3.5) Fixed Annuity 104,929 121,202 (13.4) 22,452 30,769 (27.0) Total Insurance Reserves 7,172,692 7,054,836 1.7 GROUP LIFE/HEALTH Annualized Earned Premium 1,265,764 1,236,874 2.3 PAYOUT ANNUITIES Insurance Reserves 11,135,441 9,491,380 17.3 GROUP RETIREMENT PRODUCTS Deposits (c) 6,501,570 5,917,633 9.9 1,571,365 1,560,396 0.7 NET FLOWS Group Retirement Products (c) 2,372,045 3,374,696 (29.7) 694,000 866,075 (19.9) Individual Fixed Annuities 7,450,886 9,663,994 (22.9) 1,265,907 2,660,433 (52.4) Individual Variable Annuities 1,494,106 1,179,306 26.7 152,285 322,172 (52.7) Individual Annuities - Runoff (1,306,125) (1,135,131) - (359,140) (323,039) - ------------- ------------- ----------- ----------- TOTAL $ 10,010,912 $ 13,082,865 (23.5)% $ 1,753,052 $ 3,525,641 (50.3)% SURRENDER RATES Group Retirement Products (c) 8.0%(d) 5.6% 6.5% 5.7% Individual Fixed Annuities 5.8% 5.2% 6.3% 5.8% Individual Variable Annuities 10.6% 10.7% 11.1% 10.7% GENERAL AND SEPARATE ACCOUNT RESERVES Group Retirement Products (c) $ 56,117,590 $ 50,965,154 10.1% Individual Fixed Annuities 50,546,625 42,344,932 19.4 Individual Variable Annuities 26,846,255 23,642,407 13.6 Individual Annuities - Runoff 20,812,250 21,857,843 (4.8) ------------- ------------- TOTAL $ 154,322,720 $ 138,810,336 11.2% (a) Restated to conform to 2004 presentation. (b) Life Insurance sales represent premiums from new sales that are expected to be collected over a one year period. (c) Includes group retirement annuities and group mutual funds. (d) Excluding the loss of a single account declined to be written at an inadequate profit level in first quarter 2004, the surrender rate was 6.8 percent. 21

SUPPLEMENTARY EARNINGS DATA TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 (a) CHANGE 2004 2003 (a) CHANGE ------------ ------------ ------ ------------- ------------ ------ LIFE INSURANCE & RETIREMENT SERVICES OPERATIONS: FOREIGN - OTHER DATA FIRST YEAR PREMIUMS LIFE INSURANCE Japan $ 714,345 $ 602,495 18.6% $ 201,128 $ 177,698 13.2% China 114,898 84,132 36.6 33,007 29,548 11.7 Asia excluding Japan and China 1,691,087 1,762,866 (4.1) 526,154 487,369 8.0 All Other Regions 230,037 203,030 13.3 55,127 60,222 (8.5) ------------ ------------ ------------- ------------ TOTAL 2,750,367 2,652,523 3.7 815,416 754,837 8.0 PERSONAL ACCIDENT & HEALTH Japan 709,146 466,778 51.9 175,497 151,341 16.0 China 30,158 31,280 (3.6) 7,592 8,383 (9.4) Asia excluding Japan and China 242,668 195,773 24.0 65,373 52,289 25.0 All Other Regions 106,709 95,622 11.6 27,205 26,313 3.4 ------------ ------------ ------------- ------------ TOTAL 1,088,681 789,453 37.9 275,667 238,326 15.7 GROUP PRODUCTS Japan 20,149 31,067 (35.1) 3,535 12,553 (71.8) Asia excluding Japan and China 80,154 47,737 67.9 20,133 10,450 92.7 All Other Regions 606,832 516,030 17.6 121,878 108,903 11.9 ------------ ------------ ------------- ------------ TOTAL 707,135 594,834 18.9 145,546 131,906 10.3 TOTAL FIRST YEAR PREMIUMS Japan 1,443,640 1,100,340 31.2 380,160 341,592 11.3 China 145,056 115,412 25.7 40,599 37,931 7.0 Asia excluding Japan and China 2,013,909 2,006,376 0.4 611,660 550,108 11.2 All Other Regions 943,578 814,682 15.8 204,210 195,438 4.5 ------------ ------------ ------------- ------------ TOTAL 4,546,183 4,036,810 12.6 $ 1,236,629 $ 1,125,069 9.9% RETIREMENT SERVICES RESERVES Individual Fixed Annuities 31,460,468 18,522,559 69.8 Individual Variable Annuities $ 4,023,982 $ 1,753,062 129.5% ------------ ------------ ------ FOREIGN EXCHANGE IMPACT ON GROWTH OF: GAAP PREMIUMS WORLDWIDE Growth in Original Currency 17.3% 10.6% Foreign Exchange Impact 3.6 1.5 Growth as Reported in U.S. $ 20.9 12.1 FOREIGN Growth in Original Currency 19.6 10.8 Foreign Exchange Impact 4.8 1.9 Growth as Reported in U.S. $ 24.4 12.7 PREMIUMS, DEPOSITS AND OTHER CONSIDERATIONS (b) WORLDWIDE Growth in Original Currency 23.6 0.2 Foreign Exchange Impact 2.4 1.0 Growth as Reported in U.S. $ 26.0 1.2 FOREIGN Growth in Original Currency 48.2 13.8 Foreign Exchange Impact 4.8 1.8 Growth as Reported in U.S. $ 53.0% 15.6% (a) Restated to conform to 2004 presentation. (b) Premiums, deposits and other considerations represent aggregate business activity during the respective periods presented on a non-GAAP basis. 22

SUPPLEMENTARY EARNINGS DATA TWELVE MONTHS ENDED DECEMBER 31, THREE MONTHS ENDED DECEMBER 31, 2004 2003 CHANGE 2004 2003 CHANGE ------------ ------------ ------ ------------- ------------ ------ FINANCIAL SERVICES: REVENUES Aircraft Finance $ 3,250,852 $ 3,042,483 6.8% $ 847,149 $ 770,591 9.9% Capital Markets 1,424,426 1,845,312 (22.8) 263,405 602,988 (56.3) Consumer Finance 2,977,877 2,642,074 12.7 800,128 684,592 16.9 Other (a) 30,813 35,656 (13.6) 5,347 11,643 (54.1) ------------ ------------ ------------- ------------ TOTAL 7,683,968 7,565,525 1.6 1,916,029 2,069,814 (7.4) OPERATING INCOME Aircraft Finance 739,410 727,956 1.6 192,533 179,599 7.2 Capital Markets 857,480 1,085,894 (21.0) 193,645 357,231 (45.8) Consumer Finance 787,132 648,864 21.3 207,724 160,311 29.6 Other (a) (5,064) 1,455 - (2,681) 5,311 - ------------ ------------ ------------- ------------ TOTAL 2,378,958 2,464,169 (3.5) 591,221 702,452 (15.8) ------------ ------------ ------ ------------- ------------ ------ ASSET MANAGEMENT (b)(c): REVENUES Guaranteed Investment Contracts Domestic 2,332,634 2,088,436 11.7 602,908 548,516 9.9 Foreign 463,668 407,646 13.7 169,277 93,736 80.6 Institutional Asset Management (d) 998,454 647,154 54.3 280,943 190,839 47.2 Brokerage Services and Mutual Funds 248,797 205,905 20.8 63,529 57,624 10.2 ------------ ------------ ------------- ------------ TOTAL 4,043,553 3,349,141 20.7 1,116,657 890,715 25.4 OPERATING INCOME Guaranteed Investment Contracts Domestic 592,780 505,451 17.3 146,496 144,872 1.1 Foreign 43,519 41,368 5.2 12,398 9,277 33.6 Institutional Asset Management (d)(e) 470,031 210,955 122.8 132,105 69,266 90.7 Brokerage Services and Mutual Funds 69,565 59,757 16.4 16,199 16,020 1.1 ------------ ------------ ------------- ------------ TOTAL (e) 1,175,895 817,531 43.8 307,198 239,435 28.3 ------------ ------------ ------ ------------- ------------ ------ GUARANTEED INVESTMENT CONTRACTS DEPOSITS Domestic 10,722,140 9,664,295 10.9 1,951,596 3,218,496 (39.4) Foreign 5,311,083 3,631,373 46.3 1,315,744 720,208 82.7 ------------ ------------ ------------- ------------ TOTAL 16,033,223 13,295,668 20.6 $ 3,267,340 $ 3,938,704 (17.0)% RESERVES Domestic 44,841,740 38,986,819 15.0 Foreign 9,238,518 7,667,517 20.5 ------------ ------------ TOTAL $ 54,080,258 $ 46,654,336 15.9% EFFECTIVE TAX RATES: Net Income 31.73% 30.66% 31.14% 31.09% Realized Capital Gains (Losses) 33.41% 33.68% 34.04% 35.28% (a) Includes other financial services companies and intercompany reclassifications. (b) 2003 is restated to conform to 2004 presentation. (c) At December 31, 2004, AIG's third party assets under management, including mutual funds and institutional accounts, totaled over $53 billion. (d) Includes AIG Global Investment Group and certain smaller asset management operations. (e) Includes the results of certain AIG managed private equity and real estate funds consolidated effective December 31, 2003 pursuant to FIN46R, "Consolidation of Variable Interest Entities". For the fourth quarter and twelve months 2004, operating income includes $48 million and $195 million, respectively, of third-party limited partner earnings offset in Minority Interest Expense. 23

SUPPLEMENTARY EARNINGS DATA ADDITIONAL RECONCILIATION IN ACCORDANCE WITH REGULATION G TWELVE MONTHS TWELVE MONTHS ENDED ENDED DECEMBER 31, DECEMBER 31, 2004 2003 ------------- ------------- RETURN ON EQUITY RECONCILIATION Return on Equity, GAAP basis 14.4% 14.1% Percent Related to Reconciliation 2.1 3.1 ------------- ------------- Return on Equity, as presented (a) 16.5 17.2 Catastrophe Losses and Settlement Charge 1.0 0.1 ------------- ------------- Return on Equity, as presented excluding Catastrophe Losses and Settlement Charge 17.5% 17.3% (a) Return on Equity, as presented is net income, before realized capital gains (losses) and cumulative effect of accounting changes, expressed as a percentage of average shareholders' equity, exclusive of unrealized appreciation (depreciation) of investments, net of tax. 24