0001104659-09-003850.txt : 20120723 0001104659-09-003850.hdr.sgml : 20120723 ACCESSION NUMBER: 0001104659-09-003850 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 18 CONFORMED PERIOD OF REPORT: 20090123 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090123 DATE AS OF CHANGE: 20090123 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AMERICAN INTERNATIONAL GROUP INC CENTRAL INDEX KEY: 0000005272 STANDARD INDUSTRIAL CLASSIFICATION: FIRE, MARINE & CASUALTY INSURANCE [6331] IRS NUMBER: 132592361 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08787 FILM NUMBER: 09541961 BUSINESS ADDRESS: STREET 1: 70 PINE ST CITY: NEW YORK STATE: NY ZIP: 10270 BUSINESS PHONE: 2127707000 MAIL ADDRESS: STREET 1: 70 PINE STREET CITY: NEW YORK STATE: NY ZIP: 10270 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN INTERNATIONAL ENTERPRISES INC DATE OF NAME CHANGE: 19700507 8-K 1 a09-3715_18k.htm 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported): January 23, 2009

 

AMERICAN INTERNATIONAL GROUP, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

Delaware

(State or Other Jurisdiction of Incorporation)

 

1-8787

 

13-2592361

(Commission File Number)

 

IRS Employer Identification No.)

 

 

 

70 Pine Street, New York, New York

 

10270

(Address of Principal Executive Offices)

 

(Zip Code)

 

(212) 770-7000

(Registrant’s Telephone Number, Including Area Code)

 

Not Applicable

(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):

 

o                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o                                    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o                                    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o                                    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.

 

Furnished as Exhibit 100 to this Current Report on Form 8-K is the following financial information from American International Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the Securities and Exchange Commission (“SEC”) on February 28, 2008, formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheet at December 31, 2007 and 2006, (ii) the Consolidated Statement of Income for the years ended December 31, 2007, 2006 and 2005, (iii) the Consolidated Statement of Shareholders’ Equity for the years ended December 31, 2007, 2006 and 2005, (iv) the Consolidated Statement of Cash Flows for the years ended December 31, 2007, 2006 and 2005, (v) the Consolidated Statement of Comprehensive Income for the years ended December 31, 2007, 2006 and 2005, and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text. Users of this data are advised pursuant to Rule 401 of Regulation S-T that the financial and other information contained in the XBRL documents is unaudited and that these are not the official financial statements of American International Group, Inc. as filed with the SEC. The purpose of submitting these XBRL formatted documents is to test the related format and technology and, as a result, investors should continue to rely on the official filed version of these financial statements (including the notes thereto) and not rely on the information in this Current Report on Form 8-K, including Exhibit 100, in making investment decisions.

 

In accordance with Rule 402 of Regulation S-T, the information in this Current Report on Form 8-K, including Exhibit 100, shall not be deemed to be “filed” for purposes of Section 11 of the Securities Act of 1933, as amended (the “Securities Act”), or Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of these sections, and is not a part of, and shall not be incorporated by reference into, any registration statement, periodic report or other document filed under the Securities Act or the Exchange Act.

 

Section 9 — Financial Statements and Exhibits.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit Number

 

Description

 

 

 

100

 

The following financial information from American International Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on February 28, 2008, formatted in XBRL: (i) the Consolidated Balance Sheet at December 31, 2007 and 2006, (ii) the Consolidated Statement of Income for the years ended December 31, 2007, 2006 and 2005, (iii) the Consolidated Statement of Shareholders’ Equity for the years ended December 31, 2007, 2006 and 2005, (iv) the Consolidated Statement of Cash Flows for the years ended December 31, 2007, 2006 and 2005, (v) the Consolidated Statement of Comprehensive Income for the years ended December 31, 2007, 2006 and 2005, and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text.

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

AMERICAN INTERNATIONAL GROUP, INC.

 

 

 

 

By:

    /s/ Kathleen E. Shannon

 

 

    Kathleen E. Shannon

 

 

    Senior Vice President and Secretary

 

Dated:  January 23, 2009

 

2



 

EXHIBIT INDEX

 

Exhibit Number

 

Description

 

 

 

100

 

The following financial information from American International Group, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on February 28, 2008, formatted in XBRL: (i) the Consolidated Balance Sheet at December 31, 2007 and 2006, (ii) the Consolidated Statement of Income for the years ended December 31, 2007, 2006 and 2005, (iii) the Consolidated Statement of Shareholders’ Equity for the years ended December 31, 2007, 2006 and 2005, (iv) the Consolidated Statement of Cash Flows for the years ended December 31, 2007, 2006 and 2005, (v) the Consolidated Statement of Comprehensive Income for the years ended December 31, 2007, 2006 and 2005, and (vi) the Notes to Consolidated Financial Statements, tagged as blocks of text.

 

3


EX-100.INS 2 aig-20071231.xml EX-100.INS 0000005272 2007-01-01 2007-12-31 0000005272 2006-01-01 2006-12-31 0000005272 2005-01-01 2005-12-31 0000005272 2007-12-31 0000005272 2006-12-31 0000005272 2005-12-31 0000005272 2004-12-31 0000005272 aig:FinancialServicesMember 2007-12-31 0000005272 aig:FinancialServicesMember 2006-12-31 0000005272 us-gaap:CommonStockMember 2007-12-31 0000005272 us-gaap:AdditionalPaidInCapitalMember 2007-12-31 0000005272 aig:PaymentsAdvancedToPurchaseSharesMember 2007-12-31 0000005272 us-gaap:RetainedEarningsMember 2007-12-31 0000005272 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2007-12-31 0000005272 us-gaap:TreasuryStockMember 2007-12-31 0000005272 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2007-12-31 0000005272 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2007-12-31 0000005272 us-gaap:AccumulatedTranslationAdjustmentMember 2007-12-31 0000005272 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2007-12-31 0000005272 us-gaap:CommonStockMember 2007-01-01 2007-12-31 0000005272 us-gaap:AdditionalPaidInCapitalMember 2007-01-01 2007-12-31 0000005272 aig:PaymentsAdvancedToPurchaseSharesMember 2007-01-01 2007-12-31 0000005272 us-gaap:RetainedEarningsMember 2007-01-01 2007-12-31 0000005272 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2007-01-01 2007-12-31 0000005272 us-gaap:TreasuryStockMember 2007-01-01 2007-12-31 0000005272 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2007-01-01 2007-12-31 0000005272 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2007-01-01 2007-12-31 0000005272 us-gaap:AccumulatedTranslationAdjustmentMember 2007-01-01 2007-12-31 0000005272 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2007-01-01 2007-12-31 0000005272 us-gaap:CommonStockMember 2006-12-31 0000005272 us-gaap:AdditionalPaidInCapitalMember 2006-12-31 0000005272 aig:PaymentsAdvancedToPurchaseSharesMember 2006-12-31 0000005272 us-gaap:RetainedEarningsMember 2006-12-31 0000005272 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2006-12-31 0000005272 us-gaap:TreasuryStockMember 2006-12-31 0000005272 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2006-12-31 0000005272 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2006-12-31 0000005272 us-gaap:AccumulatedTranslationAdjustmentMember 2006-12-31 0000005272 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2006-12-31 0000005272 us-gaap:CommonStockMember 2006-01-01 2006-12-31 0000005272 us-gaap:AdditionalPaidInCapitalMember 2006-01-01 2006-12-31 0000005272 aig:PaymentsAdvancedToPurchaseSharesMember 2006-01-01 2006-12-31 0000005272 us-gaap:RetainedEarningsMember 2006-01-01 2006-12-31 0000005272 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2006-01-01 2006-12-31 0000005272 us-gaap:TreasuryStockMember 2006-01-01 2006-12-31 0000005272 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2006-01-01 2006-12-31 0000005272 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2006-01-01 2006-12-31 0000005272 us-gaap:AccumulatedTranslationAdjustmentMember 2006-01-01 2006-12-31 0000005272 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2006-01-01 2006-12-31 0000005272 us-gaap:CommonStockMember 2005-12-31 0000005272 us-gaap:AdditionalPaidInCapitalMember 2005-12-31 0000005272 aig:PaymentsAdvancedToPurchaseSharesMember 2005-12-31 0000005272 us-gaap:RetainedEarningsMember 2005-12-31 0000005272 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2005-12-31 0000005272 us-gaap:TreasuryStockMember 2005-12-31 0000005272 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2005-12-31 0000005272 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2005-12-31 0000005272 us-gaap:AccumulatedTranslationAdjustmentMember 2005-12-31 0000005272 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2005-12-31 0000005272 us-gaap:CommonStockMember 2005-01-01 2005-12-31 0000005272 us-gaap:AdditionalPaidInCapitalMember 2005-01-01 2005-12-31 0000005272 aig:PaymentsAdvancedToPurchaseSharesMember 2005-01-01 2005-12-31 0000005272 us-gaap:RetainedEarningsMember 2005-01-01 2005-12-31 0000005272 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2005-01-01 2005-12-31 0000005272 us-gaap:TreasuryStockMember 2005-01-01 2005-12-31 0000005272 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2005-01-01 2005-12-31 0000005272 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2005-01-01 2005-12-31 0000005272 us-gaap:AccumulatedTranslationAdjustmentMember 2005-01-01 2005-12-31 0000005272 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2005-01-01 2005-12-31 0000005272 us-gaap:CommonStockMember 2004-12-31 0000005272 us-gaap:AdditionalPaidInCapitalMember 2004-12-31 0000005272 aig:PaymentsAdvancedToPurchaseSharesMember 2004-12-31 0000005272 us-gaap:RetainedEarningsMember 2004-12-31 0000005272 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2004-12-31 0000005272 us-gaap:TreasuryStockMember 2004-12-31 0000005272 us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember 2004-12-31 0000005272 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2004-12-31 0000005272 us-gaap:AccumulatedTranslationAdjustmentMember 2004-12-31 0000005272 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2004-12-31 0000005272 2004-01-01 2004-12-31 0000005272 us-gaap:RetainedEarningsMember us-gaap:ScenarioAdjustmentMember 2006-12-31 0000005272 us-gaap:RetainedEarningsMember us-gaap:ScenarioAdjustmentMember 2004-12-31 0000005272 us-gaap:RetainedEarningsMember us-gaap:ScenarioAdjustmentMember 2005-12-31 0000005272 2007-06-29 0000005272 2008-01-31 0000005272 us-gaap:InvestmentsMember 2007-12-31 0000005272 us-gaap:InvestmentsMember 2006-12-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares 41984000000 10499000000 40305000000 40157000000 4197000000 238000000 16442000000 6467000000 20950000000 31234000000 878000000 233000000 851961000000 6587000000 18395000000 662000000 23103000000 520000000 43150000000 654000000 5518000000 5446000000 78684000000 9414000000 20755000000 1060505000000 39875000000 8835000000 47205000000 45912000000 5031000000 220000000 19252000000 4317000000 30291000000 29573000000 737000000 1124000000 792874000000 6091000000 17789000000 756000000 23355000000 536000000 37235000000 1101000000 4381000000 4940000000 70277000000 8628000000 16089000000 979410000000 85500000000 28022000000 136068000000 258459000000 12599000000 6310000000 4878000000 2501000000 3823000000 8331000000 10568000000 4709000000 20613000000 4903000000 13114000000 162935000000 78684000000 81965000000 10422000000 30200000000 47000000 964604000000 100000000 6878000000 2.50 5000000000 2751327476 2848000000 912000000 89029000000 4643000000 6685000000 221743421 119293487 95801000000 1060505000000 79999000000 26271000000 121004000000 248264000000 10986000000 5305000000 3789000000 2602000000 9546000000 19677000000 6174000000 4076000000 11401000000 5249000000 13363000000 135316000000 70277000000 70198000000 7778000000 26267000000 111000000 877542000000 191000000 6878000000 2.50 5000000000 2751327476 2590000000 84996000000 9110000000 1897000000 150131273 119278644 101677000000 979410000000 35171000000 6287000000 23413000000 -68007000000 -67952000000 -61459000000 33480000000 61244000000 38097000000 50000000 114000000 -163000000 6200000000 14048000000 10477000000 -11472000000 1349000000 763000000 1218000000 104000000 -1795000000 3330000000 -116000000 713000000 -878000000 4760000000 3990000000 1421000000 11602000000 11578000000 10693000000 580000000 699000000 207000000 2790000000 2374000000 2200000000 646000000 495000000 435000000 4715000000 944000000 598000000 16242000000 12930000000 27045000000 207000000 1214000000 -192000000 -923000000 -1665000000 5365000000 15846000000 15363000000 14454000000 401000000 249000000 171000000 151000000 1612000000 -770000000 1374000000 -498000000 811000000 -3709000000 2003000000 1543000000 989000000 408000000 140000000 -3657000000 77000000 -2863000000 3667000000 9147000000 5581000000 -2243000000 197000000 -2272000000 -835000000 -1339000000 3753000000 18000000 128000000 -442000000 -1413000000 1482000000 -934000000 9341000000 -16568000000 9953000000 -11391000000 9552000000 -12534000000 633000000 -1899000000 571000000 5145000000 10786000000 13070000000 5671000000 10602000000 12821000000 477000000 541000000 -1535000000 28971000000 -7761000000 12936000000 132320000000 9616000000 295000000 303000000 14109000000 12553000000 139184000000 10933000000 266000000 4772000000 25327000000 1361000000 12439000000 15271000000 -12303000000 870000000 23484000000 55000000 112894000000 12475000000 205000000 697000000 14084000000 12586000000 146465000000 14482000000 197000000 6009000000 16040000000 7438000000 13830000000 -9835000000 1097000000 10620000000 45000000 140076000000 11661000000 46000000 573000000 14899000000 12461000000 175657000000 13273000000 3333000000 6193000000 15059000000 5310000000 17276000000 -10301000000 941000000 -1801000000 -688000000 64829000000 58675000000 -182000000 -338000000 103210000000 79738000000 11757000000 206000000 6000000000 1881000000 16000000 308000000 57197000000 43413000000 1269000000 2960000000 71028000000 36489000000 9789000000 163000000 1638000000 20000000 398000000 51699000000 36339000000 -957000000 -702000000 67061000000 51402000000 10437000000 -100000000 82000000 1421000000 176000000 -85000000 8818000000 5163000000 11628000000 5088000000 791000000 6539000000 4693000000 10746000000 4883000000 2593000000 9782000000 -8046000000 2338000000 1325000000 -140000000 -133000000 73000000 173000000 -57000000 -4467000000 1733000000 2574000000 -3577000000 -839000000 1599000000 1283000000 -926000000 -347000000 386000000 13000000 35000000 -15000000 -7000000 80000000 81000000 -74000000 -68000000 2675000000 -2477000000 16723000000 8000000000 79302000000 74213000000 70310000000 28619000000 26070000000 22584000000 -3592000000 106000000 341000000 11472000000 17207000000 12998000000 15546000000 110064000000 113387000000 108781000000 66115000000 60287000000 64100000000 35006000000 31413000000 29468000000 101121000000 91700000000 93568000000 8943000000 21687000000 15213000000 3219000000 5489000000 2587000000 -1764000000 1048000000 1671000000 1455000000 6537000000 4258000000 7488000000 15150000000 10955000000 1288000000 1136000000 478000000 6200000000 14014000000 10477000000 34000000 2.40 5.38 4.03 0.01 2.40 5.39 4.03 2.39 5.35 3.99 0.01 2.39 5.36 3.99 2585000000 2608000000 2597000000 2598000000 2623000000 2627000000 6878000000 6878000000 6878000000 6878000000 2751327476 2751327476 2751327476 2751327476 2848000000 356000000 -98000000 2590000000 -128000000 379000000 2339000000 -91000000 336000000 2094000000 -912000000 -6000000000 5088000000 0 0 0 89029000000 -1964000000 0.77 6200000000 84996000000 14048000000 -1690000000 0.65 72330000000 10477000000 -1615000000 0.63 63468000000 -8046000000 2338000000 4375000000 2574000000 -839000000 10083000000 -3577000000 1599000000 8348000000 10326000000 -87000000 -24000000 -525000000 -74000000 -532000000 -641000000 -68000000 -115000000 -128000000 4643000000 9110000000 6967000000 -5104000000 305000000 11000000 -6685000000 4958345 -50634 -221743421 -20000000 291000000 29000000 -1897000000 -288365 4579913 257883 -150131273 -176000000 173000000 17000000 -2197000000 -2654272 2625227 252627 -154680704 86317000000 -2211000000 197000000 -57000000 9062000000 5165000000 3679000000 80000000 81000000 84793000000 308000000 -203000000 -154904286 -133000000 73000000 1325000000 -140000000 13000000 -15000000 1283000000 -347000000 -926000000 386000000 35000000 -7000000 79673000000 880000000 -305000000 -27000000 -1241000000 -25000000 -701000000 -53000000 2284000000 1590000000 1897000000 2009000000 694000000 -307000000 -112000000 -76519859 72638000000 63468000000 American International Group, Inc. 0000005272 10-K Annual Report 2007-12-31 false --12-31 No Yes Yes Large Accelerated Filer 152287000000 2522336771 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left><B><FONT color=#002868>1.&nbsp;Summary of Significant Accounting Policies</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Basis of Presentation</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The consolidated financial statements include the accounts of AIG, its controlled subsidiaries, and variable interest entities in which AIG is the primary beneficiary. Entities that AIG does not consolidate but in which it holds 20&nbsp;percent to 50&nbsp;percent of the voting rights and/or has the ability to exercise significant influence are accounted for under the equity method. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain of AIG&#146;s foreign subsidiaries included in the consolidated financial statements report on a fiscal year ending November&nbsp;30. The effect on AIG&#146;s consolidated financial condition and results of operations of all material events occurring between November&nbsp;30 and December&nbsp;31 for all periods presented has been recorded. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The accompanying consolidated financial statements have been prepared in accordance with U.S.&nbsp;generally accepted accounting principles (GAAP). All material intercompany accounts and transactions have been eliminated. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Description of Business</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>See Note&nbsp;2 herein for a description of AIG&#146;s businesses. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Use of Estimates</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ, possibly materially, from those estimates. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG considers its most critical accounting estimates to be those with respect to reserves for losses and loss expenses, future policy benefits for life and accident and health contracts, estimated gross profits for investment-oriented products, recoverability of deferred policy acquisition costs (DAC), fair value measurements of certain assets and liabilities, including the super senior credit default swaps written by AIGFP, other-than-temporary impairments in the value of investments, the allowance for finance receivable losses and flight equipment recoverability. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; During the second half of 2007, disruption in the global credit markets, coupled with the repricing of credit risk, and the U.S.&nbsp;housing market deterioration, particularly in the fourth quarter, created increasingly difficult conditions in the financial markets. These conditions have resulted in greater volatility, less liquidity, widening of credit spreads and a lack of price transparency in certain markets and have made it more difficult to value certain of AIG&#146;s invested assets and the obligations and collateral relating to certain financial instruments issued or held by AIG, such as AIGFP&#146;s super senior credit default swap portfolio. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Revisions and Reclassifications</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In 2007, AIG determined that certain products that were historically reported as separate account assets under American Institute of Certified Public Accountants (AICPA) Statement of Position (SOP)&nbsp;<FONT style="WHITE-SPACE: nowrap">03-1,</FONT> &#147;Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts&#148; (SOP <FONT style="WHITE-SPACE: nowrap">03-1)</FONT> should have been reported as general account assets. Accordingly, the December&nbsp;31, 2006 consolidated balance sheet has been revised to reflect the transfer of $2.4&nbsp;billion of assets from separate account assets to general account assets, and the same amount of liabilities from separate account liabilities to policyholders&#146; contract deposits. This revision had no effect on consolidated income before income taxes, net income, or shareholders&#146; equity for any period presented. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain reclassifications and format changes have been made to prior period amounts to conform to the current period presentation. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Out-of-Period Adjustments</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>During 2007 and 2006, AIG recorded the effects of certain out-of-period adjustments, which (decreased) increased net income by $(399)&nbsp;million and $65&nbsp;million, respectively. During 2007, out-of-period adjustments collectively decreased pre-tax operating income by $372 million ($399&nbsp;million after tax). The adjustments were comprised of a charge of $380&nbsp;million ($247&nbsp;million after tax) to reverse net gains on transfers of investment securities among legal entities consolidated within AIGFP and a corresponding increase to accumulated other comprehensive income (loss); $156&nbsp;million of additional income tax expense related to the successful remediation of the material weakness in internal control over income tax accounting; $142&nbsp;million ($92&nbsp;million after tax) of additional expense related to insurance reserves and DAC in connection with improvements in its internal control over financial reporting and consolidation processes; $42&nbsp;million ($29&nbsp;million after tax) of additional expense, primarily related to other remediation activities; and $192 million ($125 million after tax) of net realized capital gains related to foreign exchange. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Accounting Policies</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Revenue Recognition and Expenses:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Premiums and Other Considerations:</I> Premiums for short duration contracts and considerations received from retailers in connection with the sale of extended service contracts are earned primarily on a pro rata basis over the term of the related coverage. The reserve for unearned premiums includes the portion of premiums written and other considerations relating to the unexpired terms of coverage. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Premiums for long duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Consideration for universal life and investment-type products consists of policy charges for the cost of insurance, administration, and surrenders during the period. Policy charges collected with respect to future services are deferred and recognized in a manner similar to DAC related to such products. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Net Investment Income:</I> Net investment income represents income primarily from the following sources in AIG&#146;s insurance operations: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in</TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 10pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">Dividend income and distributions from common and preferred stock and other investments when receivable. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">Realized and unrealized gains and losses from investments in trading securities accounted for at fair value. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">Earnings from hedge funds and limited partnership investments accounted for under the equity method. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">The difference between the carrying amount of a life settlement contract and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured. </FONT></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Realized Capital Gains (Losses):</I> Realized capital gains and losses are determined by specific identification. The realized capital gains and losses are generated primarily from the following sources: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Sales of fixed maturity securities and equity securities (except trading securities accounted for at fair value), real estate, investments in joint ventures and limited partnerships and other types of investments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Reductions to the cost basis of fixed maturity securities and equity securities (except trading securities accounted for at fair value) and other invested assets for other-than-temporary impairments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Changes in fair value of derivatives that are not involved in qualifying hedging activities.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Exchange gains and losses resulting from foreign currency transactions.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Other Income:</I> Other income includes income from flight equipment, Asset Management operations, the operations of AIGFP and finance charges on consumer loans. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Income from flight equipment under operating leases is recognized over the life of the lease as rentals become receivable under the provisions of the lease or, in the case of leases with varying payments, under the straight-line method over the noncancelable term of the lease. In certain cases, leases provide for additional payments contingent on usage. Rental income is recognized at the time such usage occurs less a provision for future contractual aircraft maintenance. Gains and losses on flight equipment are recognized when flight equipment is sold and the risk of ownership of the equipment is passed to the new owner. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Income from Asset Management operations is generally recognized as revenues as services are performed. Certain costs incurred in the sale of mutual funds are deferred and subsequently amortized. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Income from the operations of AIGFP included in other income consists of the following: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Dividend income and distributions from common and preferred stock and other investments when receivable.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Changes in the fair value of derivatives (excluding the super senior credit default swap portfolio). In certain instances, no initial gain or loss is recognized in accordance with Emerging Issues Task Force Issue (EITF)&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3,</FONT> &#147;Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities&#148; (EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3).</FONT> The initial gain or loss is recognized in income over the life of the transaction or when observable market data becomes available.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Realized and unrealized gains and losses from trading securities and spot commodities sold but not yet purchased, futures and hybrid financial instruments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Realized gains and losses from the sale of available for sale securities and investments in private equities, joint ventures, limited partnerships and other investments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Exchange gains and losses resulting from foreign currency transactions.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Reductions to the cost basis of securities available for sale for other-than-temporary impairments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Earnings from hedge funds and limited partnership investments accounted for under the equity method.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Finance charges on consumer loans are recognized as revenue using the interest method. Revenue ceases to be accrued when contractual payments are not received for four consecutive months for loans and retail sales contracts, and for six&nbsp;months for revolving retail accounts and private label receivables. Extension fees, late charges, and prepayment penalties are recognized as revenue when received. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Incurred Policy Losses and Benefits:</FONT> </I>Incurred policy losses for short duration insurance contracts consist of the estimated ultimate cost of settling claims incurred within the reporting period, including incurred but not reported claims, plus the changes in estimates of current and prior period losses resulting from the continuous review process. Benefits for long duration insurance contracts consist of benefits paid and changes in future policy benefits liabilities. Benefits for universal life and investment-type products primarily consist of interest credited to policy account balances and benefit payments made in excess of policy account balances. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;Income Taxes:</B><FONT style="FONT-SIZE: 8.5pt"> Deferred tax assets and liabilities are recorded for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements. AIG assesses its ability to realize deferred tax assets primarily based on the earnings history, the future earnings potential, the reversal of taxable temporary differences, and the tax planning strategies available to the legal entities when recognizing deferred tax assets in accordance with Statement of Financial Accounting Standards No. (FAS)&nbsp;109, &#147;Accounting for Income Taxes&#148; (FAS&nbsp;109). See Note&nbsp;21 herein for a further discussion of income taxes. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(c)&nbsp;Investments in Fixed Maturities and Equity Securities:</B><FONT style="FONT-SIZE: 8.5pt"> Bonds held to maturity are principally owned by insurance subsidiaries and are carried at amortized cost when AIG has the ability and positive intent to hold these securities until maturity. </FONT></DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; When AIG does not have the positive intent to hold bonds until maturity, these securities are classified as available for sale or as trading and are carried at fair value. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Premiums and discounts arising from the purchase of bonds classified as held to maturity or available for sale are treated as yield adjustments over their estimated lives, until maturity, or call date, if applicable. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Common and preferred stocks are carried at fair value. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG also enters into dollar roll agreements. These are agreements to sell mortgage-backed securities and to repurchase substantially similar securities at a specified price and date in the future. At December&nbsp;31, 2007 and 2006, there were no dollar roll agreements outstanding. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For AIG&#146;s insurance subsidiaries, unrealized gains and losses on investments in trading securities are reported in Net investment income. Unrealized gains and losses from available for sale investments in equity and fixed maturity securities are reported as a separate component of Accumulated other comprehensive income (loss), net of deferred income taxes, in consolidated shareholders&#146; equity. Investments in fixed maturities and equity securities are recorded on a trade-date basis. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG evaluates its investments for other-than-temporary impairment. The determination that a security has incurred an other-than-temporary impairment in value and the amount of any loss recognized requires the judgment of AIG&#146;s management and a continual review of its investments. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG evaluates its investments for other-than-temporary impairment such that a security is considered a candidate for other-than-temporary impairment if it meets any of the following criteria: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Trading at a significant (25&nbsp;percent or more) discount to par, amortized cost (if lower) or cost for an extended period of time (nine consecutive months or longer);</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>The occurrence of a discrete credit event resulting in (i)&nbsp;the issuer defaulting on a material outstanding obligation; (ii)&nbsp;the issuer seeking protection from creditors under the bankruptcy laws or any similar laws intended for court supervised reorganization of insolvent enterprises; or (iii)&nbsp;the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than par value of their claims; or</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>AIG may not realize a full recovery on its investment regardless of the occurrence of one of the foregoing events.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The above criteria also consider circumstances of a rapid and severe market valuation decline, such as that experienced in current credit markets, in which AIG could not reasonably assert that the recovery period would be temporary. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At each balance sheet date, AIG evaluates its securities holdings with unrealized losses. When AIG does not intend to hold such securities until they have recovered their cost basis, based on the circumstances at the date of evaluation, AIG records the unrealized loss in income. If a loss is recognized from a sale subsequent to a balance sheet date pursuant to changes in circumstances, the loss is recognized in the period in which the intent to hold the securities to recovery no longer existed. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In periods subsequent to the recognition of an other-than-temporary impairment charge for fixed maturity securities, which is not credit or foreign exchange related, AIG generally accretes the discount or amortizes the reduced premium resulting from the reduction in cost basis over the remaining life of the security. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For certain investments in beneficial interests in securitized financial assets of less than high quality with contractual cash flows, including asset-backed securities, EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">99-20,</FONT> &#147;Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests that Continued to Be Held by a Transferor in Securitized Financial Assets&#148; requires periodic updates of AIG&#146;s best estimate of cash flows over the life of the security. If the fair value of an investment in beneficial interests in a securitized financial asset is less than its cost or amortized cost and there has been a decrease in the present value of the estimated cash flows since the last revised estimate, considering both their timing and amount, an other-than-temporary impairment charge is recognized. Interest income is recognized based on changes in the timing and the amount of expected principal and interest cash flows reflected in the yield. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG also considers its intent and ability to retain a temporarily depressed security until recovery. Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(d)&nbsp;Mortgage and Other Loans Receivable&nbsp;&#151; net:</B><FONT style="FONT-SIZE: 8.5pt"> Mortgage and other loans receivable includes mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. Mortgage loans on real estate and collateral, commercial and guaranteed loans are carried at unpaid principal balances less credit allowances and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Impairment of mortgage loans on real estate and collateral and commercial loans is based on certain risk factors and when collection of all amounts due under the contractual terms is not probable. This impairment is generally measured based on the present value of expected future cash flows discounted at the loan&#146;s effective interest rate subject to the fair value of underlying collateral. Interest income on such impaired loans is recognized as cash is received. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Policy loans are carried at unpaid principal amount. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(e)&nbsp;Financial Services&nbsp;&#151; Flight Equipment:</B><FONT style="FONT-SIZE: 8.5pt"> Flight equipment is stated at cost, net of accumulated depreciation. Major additions, modifications and interest are capitalized. Normal maintenance and repairs, airframe and engine overhauls and </FONT>compliance with return conditions of flight equipment on lease are provided by and paid for by the lessee. Under the provisions of most leases for certain airframe and engine overhauls, the lessee is reimbursed for certain costs incurred up to but not exceeding contingent rentals paid to AIG by the lessee. AIG provides a charge to income for such reimbursements based on the expected reimbursements during the life of the lease. For passenger aircraft, depreciation is generally computed on the straight-line basis to a residual value of approximately 15&nbsp;percent of the cost of the asset over its estimated useful life of 25&nbsp;years. For freighter aircraft, depreciation is computed on the straight-line basis to a zero residual value over its useful life of 35&nbsp;years. At December&nbsp;31, 2007, ILFC had twelve freighter aircraft in its fleet. Aircraft in the fleet are evaluated for impairment in accordance with FAS&nbsp;144. FAS&nbsp;144 requires long-lived assets to be evaluated for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. These evaluations for impairment are significantly affected by estimates of future net cash flows and other factors that involve uncertainty. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; When assets are retired or disposed of, the cost and associated accumulated depreciation are removed from the related accounts and the difference, net of proceeds, is recorded as a gain or loss in Other income. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(f)&nbsp;Financial Services&nbsp;&#151; Securities Available for Sale, at fair value:</B><FONT style="FONT-SIZE: 8.5pt"> These securities are held to meet long-term investment objectives and are accounted for as available for sale, carried at fair values and recorded on a trade-date basis. This portfolio is hedged using interest rate, foreign exchange, commodity and equity derivatives. The market risk associated with such hedges is managed on a portfolio basis, with third-party hedging transactions executed as necessary. Because hedge accounting treatment is not achieved in accordance with FAS&nbsp;133, &#147;Accounting for Derivative Instruments and Hedging Activities&#148; (FAS&nbsp;133), the unrealized gains and losses on these securities resulting from changes in interest rates, currency rates and equity prices are recorded in Accumulated other comprehensive income (loss) in consolidated shareholders&#146; equity while the unrealized gains and losses on the hedging instruments are reflected in Other income. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(g)&nbsp;Financial Services&nbsp;&#151; Trading Securities, at fair value:</B><FONT style="FONT-SIZE: 8.5pt"> Trading securities are held to meet short-term investment objectives and to economically hedge other securities. Trading securities are recorded on a trade-date basis and carried at fair value. Realized and unrealized gains and losses are reflected in Other income. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(h)&nbsp;Financial Services&nbsp;&#151; Spot Commodities:</B><FONT style="FONT-SIZE: 8.5pt"> Spot commodities held in AIGFP&#146;s wholly owned broker-dealer subsidiary are recorded at fair value. All other commodities are recorded at the lower of cost or fair value. Spot commodities are recorded on a trade-date basis. The exposure to market risk may be reduced through the use of forwards, futures and option contracts. Lower of cost or fair value reductions in commodity positions and unrealized gains and losses in related derivatives are reflected in Other income. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(i)&nbsp;Financial Services&nbsp;&#151; Unrealized Gain and Unrealized Loss on Swaps, Options and Forward Transactions:</B><FONT style="FONT-SIZE: 8.5pt"> Interest rate, currency, equity and commodity swaps (including AIGFP&#146;s super senior credit default swap portfolio), swaptions, options and forward transactions are accounted for as derivatives recorded on a trade-date basis, and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. In certain instances, when income is not recognized at inception of the contract under EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3,</FONT> income is recognized over the life of the contract and as observable market data becomes available.</FONT> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(j)&nbsp;Financial Services&nbsp;&#151; Trade Receivables and Trade Payables:</B><FONT style="FONT-SIZE: 8.5pt"> Trade receivables and Trade payables include option premiums paid and received and receivables from and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due from and due to clearing brokers and exchanges. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(k)&nbsp;Financial Services&nbsp;&#151; Securities Purchased (Sold) Under Agreements to Resell (Repurchase), at contract value:</B><FONT style="FONT-SIZE: 8.5pt"> Securities purchased under agreements to resell and Securities sold under agreements to repurchase are accounted for as collateralized borrowing or lending transactions and are recorded at their contracted resale or repurchase amounts, plus accrued interest. AIG&#146;s policy is to take possession of or obtain a security interest in securities purchased under agreements to resell. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG minimizes the credit risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring customer credit exposure and collateral value and generally requiring additional collateral to be deposited with AIG when necessary. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(l)&nbsp;Financial Services&nbsp;&#151; Finance Receivables:</B><FONT style="FONT-SIZE: 8.5pt"> Finance receivables, which are reported net of unearned finance charges, are held for both investment purposes and for sale. Finance receivables held for investment purposes are carried at amortized cost, which includes accrued finance charges on interest bearing finance receivables, unamortized deferred origination costs, and unamortized net premiums and discounts on purchased finance receivables. The allowance for finance receivable losses is established through the provision for finance receivable losses charged to expense and is maintained at a level considered adequate to absorb estimated credit losses in the portfolio. The portfolio is periodically evaluated on a pooled basis and factors such as economic conditions, portfolio composition, and loss and delinquency experience are considered in the evaluation of the allowance. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Direct costs of originating finance receivables, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to finance charge revenues using the interest method.&nbsp;</DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Finance receivables originated and intended for sale in the secondary market are carried at the lower of cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. American General Finance, Inc. (AGF) recognizes net unrealized losses through a valuation allowance by charges to income. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(m)&nbsp;Securities Lending Invested Collateral, at Fair Value and Securities Lending Payable:</B><FONT style="FONT-SIZE: 8.5pt"> AIG&#146;s insurance and asset management operations lend their securities and primarily take cash as collateral with respect to the securities lent. Invested collateral consists of interest-bearing cash equivalents and floating rate bonds, whose changes in fair value are recorded as a separate component of Accumulated other comprehensive income (loss), net of deferred income taxes. The invested collateral is evaluated for other-than-temporary impairment by applying the same criteria used for investments in fixed maturities. Income earned on invested collateral, net of interest payable to the collateral provider, is recorded in Net investment income. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The fair value of securities pledged under securities lending arrangements was $76 billion and $69&nbsp;billion at December&nbsp;31, 2007 and 2006, respectively. These securities are included in bonds available for sale in AIG&#146;s consolidated balance sheet. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(n)&nbsp;Other Invested Assets:</B><FONT style="FONT-SIZE: 8.5pt"> Other invested assets consist primarily of investments by AIG&#146;s insurance operations in hedge funds, private equity and limited partnerships. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Hedge funds and limited partnerships in which AIG&#146;s insurance operations hold in the aggregate less than a five percent interest are reported at fair value. The change in fair value is recognized as a component of Accumulated other comprehensive income (loss). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; With respect to hedge funds and limited partnerships in which AIG holds in the aggregate a five percent or greater interest or less than a five percent interest but in which AIG has more than a minor influence over the operations of the investee, AIG&#146;s carrying value is its share of the net asset value of the funds or the partnerships. The changes in such net asset values, accounted for under the equity method, are recorded in Net investment income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In applying the equity method of accounting, AIG consistently uses the most recently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of AIG&#146;s reporting period. The financial statements of these investees are generally audited on an annual basis. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Also included in Other invested assets are real estate held for investment, aircraft asset investments held by non-financial services subsidiaries and investments in life settlement contracts. See Note&nbsp;3(g) herein for further information. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(o)&nbsp;Short-term Investments:</B><FONT style="FONT-SIZE: 8.5pt"> Short-term investments consist of interest-bearing cash equivalents, time deposits, and investments with original maturities within one year from the date of purchase, such as commercial paper. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(p)&nbsp;Cash:</B><FONT style="FONT-SIZE: 8.5pt"> Cash represents cash on hand and non-interest bearing demand deposits. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(q)&nbsp;Reinsurance Assets:</B><FONT style="FONT-SIZE: 8.5pt"> Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of AIG&#146;s reinsurance agreements for paid and unpaid losses and loss expenses, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(r)&nbsp;Deferred Policy Acquisition Costs:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Policy acquisition costs represent those costs, including commissions, premium taxes and other underwriting expenses that vary with and are primarily related to the acquisition of new business. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>General Insurance:</I> Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is not anticipated in assessing the recoverability of DAC. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Life Insurance&nbsp;&amp; Retirement Services:</I> Policy acquisition costs for traditional life insurance products are generally deferred and amortized over the premium paying period in accordance with FAS&nbsp;60, &#147;Accounting and Reporting by Insurance Enterprises&#148; (FAS&nbsp;60). Policy acquisition costs and policy issuance costs related to universal life, participating life, and investment-type products (investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts in accordance with FAS&nbsp;97, &#147;Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments&#148; (FAS&nbsp;97). Estimated gross profits are composed of net interest income, net realized investment gains and losses, fees, surrender charges, expenses, and mortality and morbidity gains and losses. If estimated gross profits change significantly, DAC is recalculated using the new assumptions. Any resulting adjustment is included in income as an adjustment to DAC. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The DAC for investment-oriented products is also adjusted with respect to estimated gross profits as a result of changes in the net unrealized gains or losses on fixed maturity and equity securities available for sale. Because fixed maturity and equity securities available for sale are carried at aggregate fair value, an adjustment is made to DAC equal to the change in amortization that would have been recorded if such securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. The change in this adjustment, net of tax, is included with the change in net unrealized gains/losses on fixed maturity and equity securities available for sale that is credited or charged directly to Accumulated other comprehensive income (loss). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Value of Business Acquired (VOBA) is determined at the time of acquisition and is reported in the consolidated balance sheet with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For products accounted for under FAS&nbsp;60, VOBA is amortized over the life of the business similar to that for DAC based on the assumptions at purchase. For products accounted for under FAS&nbsp;97, VOBA is amortized in relation to the estimated gross profits to date for each period. As of December&nbsp;31, 2007 and 2006, there had been no impairments of VOBA. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(s)&nbsp;Investments in Partially Owned Companies:</B><FONT style="FONT-SIZE: 8.5pt"> Investments in partially owned companies represents investments entered into for strategic purposes and not solely for capital appreciation or for income generation. These investments are accounted for under the equity method. All other equity method investments are reported in Other invested assets. At December&nbsp;31, 2007, AIG&#146;s significant investments in partially owned companies included its 26.0&nbsp;percent interest in Tata AIG Life Insurance Company, Ltd., its 26.0&nbsp;percent interest in Tata AIG General Insurance Company, Ltd. and its 25.4&nbsp;percent interest in The Fuji Fire and Marine Insurance Co., Ltd. Dividends received from unconsolidated entities in which AIG&#146;s ownership interest is less than 50&nbsp;percent were $30&nbsp;million, $28&nbsp;million and $146&nbsp;million for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively. The undistributed earnings of unconsolidated entities in which AIG&#146;s ownership interest is less than 50&nbsp;percent were $266&nbsp;million, $300&nbsp;million and $179&nbsp;million at December&nbsp;31, 2007, 2006 and 2005, respectively. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(t)&nbsp;Real Estate and Other Fixed Assets:</B><FONT style="FONT-SIZE: 8.5pt"> The costs of buildings and furniture and equipment are depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40&nbsp;years for buildings and ten years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred; expenditures for betterments are capitalized and depreciated. AIG periodically assesses the carrying value of its real estate for purposes of determining any asset impairment. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Also included in Real Estate and Other Fixed Assets are capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software. Such costs are capitalized and amortized using the straight-line method over a period generally not exceeding five years. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(u)&nbsp;Separate and Variable Accounts:</B><FONT style="FONT-SIZE: 8.5pt"> Separate and variable accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives, and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of AIG. The liabilities for these accounts are equal to the account assets. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(v)&nbsp;Goodwill:</B><FONT style="FONT-SIZE: 8.5pt"> Goodwill is the excess of cost over the fair value of identifiable net assets acquired. Goodwill is reviewed for impairment on an annual basis, or more frequently if circumstances indicate that a possible impairment has occurred. The assessment of impairment involves a two-step process whereby an initial assessment for potential impairment is performed, followed by a measurement of the amount of impairment, if any. Impairment testing is performed using the fair value approach, which requires the use of estimates and judgment, at the &#147;reporting unit&#148; level. A reporting unit is the operating segment, or a business that is one level below the operating segment if discrete financial information is prepared and regularly reviewed by management at that level. The determination of a reporting unit&#146;s fair value is based on management&#146;s best estimate, which generally considers the market-based earning multiples of the unit&#146;s peer companies or expected future cash flows. If the carrying value of a reporting unit exceeds its fair value, an impairment is recognized as a charge against income equal to the excess of the carrying value of goodwill over its fair value. No impairments were recorded in 2007, 2006 or 2005. Changes in the carrying amount of goodwill result from business acquisitions, the payment of contingent consideration, foreign currency translation adjustments and purchase price adjustments. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(w)&nbsp;Other Assets:</B><FONT style="FONT-SIZE: 8.5pt"> Other assets consist of prepaid expenses, including deferred advertising costs, sales inducement assets, non-AIGFP derivatives assets carried at fair value, deposits, other deferred charges and other intangible assets. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain direct response advertising costs are deferred and amortized over the expected future benefit period in accordance with SOP&nbsp;93-7, &#147;Reporting on Advertising Costs.&#148; When AIG can demonstrate that its customers have responded specifically to direct-response advertising, the primary purpose of which is to elicit sales to customers, and when it can be shown such advertising results in probable future economic benefits, the advertising costs are capitalized. Deferred advertising costs are amortized on a cost-pool-by-cost-pool basis over the expected future economic benefit period and are reviewed regularly for recoverability. Deferred advertising costs totaled $1.35 billion and $1.05&nbsp;billion at December&nbsp;31, 2007 and 2006, respectively. The amount of expense amortized into income was $395 million, $359&nbsp;million and $272&nbsp;million, for the years ended 2007, 2006, and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG offers sales inducements, which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contractholder are recognized as part of the liability for policyholders&#146; contract deposits in the consolidated balance sheet. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC. To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception, and AIG must demonstrate that such amounts are incremental to amounts AIG credits on similar contracts without bonus interest, and are higher than the contract&#146;s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $1.7&nbsp;billion and $1.3&nbsp;billion at December&nbsp;31, 2007 and 2006, respectively. The amortization expense associated with these assets is reported within Incurred policy losses and benefits expense in the consolidated statement of income. Such amortization expense totaled $149&nbsp;million, $132&nbsp;million and $127&nbsp;million for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; See Note&nbsp;8 herein for a discussion of derivatives. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(x)&nbsp;Reserve for Losses and Loss Expenses:</B><FONT style="FONT-SIZE: 8.5pt"> Losses and loss expenses are charged to income as incurred. The reserve for losses and loss expenses represents the accumulation of estimates for unpaid reported losses and includes provisions for losses incurred but not reported. The methods of determining such estimates and establishing resulting reserves, including amounts relating to allowances for estimated unrecoverable reinsurance, are reviewed and updated. If the estimate of reserves is determined to be inadequate or redundant, the increase or decrease is reflected in income. AIG discounts its loss reserves relating to workers compensation business written by its U.S.&nbsp;domiciled subsidiaries as permitted by the domiciliary statutory regulatory authorities. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(y)&nbsp;Future Policy Benefits for Life and Accident and Health Contracts and Policyholders&#146; Contract Deposits:</B><FONT style="FONT-SIZE: 8.5pt"> The liability for future policy benefits and policyholders&#146; contract deposits are established using assumptions described in Note&nbsp;9 herein. Future policy benefits for life and accident and health insurance contracts include provisions for future dividends to participating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Policyholders&#146; contract deposits include AIG&#146;s liability for certain guarantee benefits accounted for as embedded derivatives at fair value in accordance with FAS&nbsp;133. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(z)&nbsp;Other Policyholders&#146; Funds:</B><FONT style="FONT-SIZE: 8.5pt"> Other policyholders&#146; funds are reported at cost and include any policyholders&#146; funds on deposit that encompass premium deposits and similar items. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(aa)&nbsp;Financial Services&nbsp;&#151; Securities and Spot Commodities Sold but not yet Purchased, at Fair Value:</B><FONT style="FONT-SIZE: 8.5pt"> Securities and spot commodities sold but not yet purchased represent sales of securities and spot commodities not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Also included are obligations under gold leases, which are accounted for as a debt host with an embedded gold derivative. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(bb)&nbsp;Commercial Paper and Extendible Commercial Notes and Long-Term Borrowings:</B><FONT style="FONT-SIZE: 8.5pt"> AIG&#146;s funding is principally obtained from medium and long-term borrowings and commercial paper. Commercial paper, when issued at a discount, is recorded at the proceeds received and accreted to its par value. Extendible commercial notes are issued by AGF with initial maturities of up to 90&nbsp;days, which AGF may extend to 390&nbsp;days. Long-term borrowings are carried at the principal amount borrowed, net of unamortized discounts or premiums. See Note&nbsp;11 herein for additional information. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Long-term borrowings also include liabilities connected to trust preferred stock principally related to outstanding securities issued by AIG Life Holdings (US), Inc. (AIGLH), a wholly owned subsidiary of AIG. Cash distributions on such preferred stock are accounted for as interest expense. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(cc)&nbsp;Other Liabilities:</B><FONT style="FONT-SIZE: 8.5pt"> Other liabilities consist of other funds on deposit, non-AIGFP free-standing derivatives liabilities carried at fair value, and other payables. See Note&nbsp;8 herein for a discussion of derivatives. AIG has entered into certain insurance and reinsurance contracts, primarily in its General Insurance segment, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the consolidated balance sheet. Net proceeds of these deposits are invested and generate net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liability is reduced. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(dd)&nbsp;Contingent Liabilities:</B><FONT style="FONT-SIZE: 8.5pt"> Amounts are accrued for the resolution of claims that have either been asserted or are deemed probable of assertion if, in the opinion of management, it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. In many cases, it is not possible to determine whether a liability has been incurred or to estimate the ultimate or minimum amount of that liability until years after the contingency arises, in which case, no accrual is made until that time. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(ee)&nbsp;Preferred Shareholders&#146; Equity in Subsidiary Companies:</B><FONT style="FONT-SIZE: 8.5pt"> Preferred shareholders&#146; equity in subsidiary companies relates principally to outstanding preferred stock or interest of ILFC, a wholly owned subsidiary of AIG. Cash distributions on such preferred stock or interest are accounted for as interest expense. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(ff)&nbsp;Foreign Currency:</B><FONT style="FONT-SIZE: 8.5pt"> Financial statement accounts expressed in foreign currencies are translated into U.S.&nbsp;dollars in accordance with FAS&nbsp;52, &#147;Foreign Currency Translation&#148; (FAS&nbsp;52). Under FAS&nbsp;52, functional currency assets and liabilities are translated into U.S.&nbsp;dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income (loss), net of any related taxes, in consolidated shareholders&#146; equity. Functional currencies are generally the currencies of the local operating environment. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income. Exchange gains and losses resulting from foreign currency transactions are recorded in income. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(gg)&nbsp;Earnings per Share:</B><FONT style="FONT-SIZE: 8.5pt"> Basic earnings per share is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. Diluted e</FONT>arnings per share is based on those shares used in basic earnings per share plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding, adjusted to reflect all stock dividends and stock splits. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(hh)&nbsp;Recent Accounting Standards:</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Accounting Changes</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><I>SOP 05-1</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In September 2005, the AICPA&nbsp;issued SOP&nbsp;05-1, &#147;Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts&#148; (SOP 05-1). SOP 05-1 provides guidance on accounting for internal replacements of insurance and investment contracts other than those specifically described in FAS&nbsp;97. SOP 05-1 defines an internal replacement as a modification in product benefits, features, rights, or coverage that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. Internal replacements that result in a substantially changed contract are accounted for as a termination and a replacement contract. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; SOP 05-1 became effective on January&nbsp;1, 2007 and generally affects the accounting for internal replacements occurring after that date. In the first quarter of 2007, AIG recorded a cumulative effect reduction of $82&nbsp;million, net of tax, to the opening balance of retained earnings on the date of adoption. This adoption reflected changes in unamortized DAC, VOBA, deferred sales inducement assets, unearned revenue liabilities and future policy benefits for life and accident and health insurance contracts resulting from a shorter expected life related to certain group life and health insurance contracts and the effect on the gross profits of investment-oriented products related to previously anticipated future internal replacements. This cumulative effect adjustment affected only the Life Insurance&nbsp;&amp; Retirement Services segment. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><I>FAS 155</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In February, 2006, the Financial Accounting Standards Board (FASB)&nbsp;issued FAS 155, &#147;Accounting for Certain Hybrid Financial Instruments&nbsp;&#151; an amendment of FAS 140 and FAS 133&#148; (FAS 155). FAS 155 allows AIG to include changes in fair value in earnings on an instrument-by-instrument basis for any hybrid financial instrument that contains an embedded derivative that would otherwise be required to be bifurcated and accounted for separately under FAS 133. The election to measure the hybrid instrument at fair value is irrevocable at the acquisition or issuance date. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG elected to early adopt FAS 155 as of January&nbsp;1, 2006, and apply FAS 155 fair value measurement to certain structured note liabilities and structured investments in AIG&#146;s available for sale portfolio that existed at December&nbsp;31, 2005. The effect of this adoption resulted in an $11&nbsp;million after-tax ($18&nbsp;million pre-tax) decrease to opening retained earnings as of January&nbsp;1, 2006, representing the difference between the fair value of these hybrid financial instruments and the prior carrying value as of December&nbsp;31, 2005. The effect of adoption on after-tax gross gains and losses was $218&nbsp;million ($336&nbsp;million pre-tax) and $229&nbsp;million ($354&nbsp;million pre-tax), respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In connection with AIG&#146;s early adoption of FAS 155, structured note liabilities of $8.9&nbsp;billion, other structured liabilities in conjunction with equity derivative transactions of $111&nbsp;million, and hybrid financial instruments of $522&nbsp;million at December&nbsp;31, 2006 are now carried at fair value. The effect on earnings for 2006, for changes in the fair value of hybrid financial instruments, was a pre-tax loss of $313&nbsp;million, of which $287&nbsp;million was reflected in Other income and was largely offset by gains on economic hedge positions which were also reflected in operating income, and $26&nbsp;million was reflected in Net investment income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FAS 158</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In September 2006, the FASB issued FAS 158, &#147;Employers&#146; Accounting for Defined Benefit Pension and Other Postretirement Plans&nbsp;&#151; an amendment of FASB Statements No.&nbsp;87, 88, 106 and 132R&#148; (FAS 158). FAS 158 requires AIG to prospectively recognize the overfunded or underfunded status of defined benefit postretirement plans as an asset or liability in AIG&#146;s consolidated balance sheet and to recognize changes in that funded status in the year in which the changes occur through Other comprehensive income. FAS 158 also requires AIG to measure the funded status of plans as of the date of its year-end balance sheet, with limited exceptions. AIG adopted FAS 158 for the year ended December&nbsp;31, 2006. The cumulative effect, net of deferred income taxes, on AIG&#146;s consolidated balance sheet at December&nbsp;31, 2006 was a net reduction in shareholders&#146; equity through a charge to Accumulated other comprehensive income (loss) of $532&nbsp;million, with a corresponding net decrease of $538&nbsp;million in total assets, and a net decrease of $6&nbsp;million in total liabilities. See Note&nbsp;18 herein for additional information on the adoption of FAS 158. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FIN&nbsp;48</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In July 2006, the FASB issued FASB Interpretation No.&nbsp;(FIN)&nbsp;48, &#147;Accounting for Uncertainty in Income Taxes&nbsp;&#151; an interpretation of FASB Statement No.&nbsp;109&#148; (FIN&nbsp;48), which clarifies the accounting for uncertainty in income tax positions. FIN&nbsp;48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. FIN&nbsp;48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and additional disclosures. AIG adopted FIN&nbsp;48 on January&nbsp;1, 2007. Upon adoption, AIG recognized a $71&nbsp;million increase in the liability for unrecognized tax benefits, which was accounted for as a decrease to opening retained earnings as of January&nbsp;1, 2007. See Note&nbsp;21 for additional FIN&nbsp;48 disclosures. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FSP 13-2</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In July 2006, the FASB issued FASB Staff Position No.&nbsp;(FSP)&nbsp;FAS&nbsp;<FONT style="WHITE-SPACE: nowrap">13-2,</FONT> &#147;Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease Transaction&#148; (FSP <FONT style="WHITE-SPACE: nowrap">13-2).</FONT> FSP <FONT style="WHITE-SPACE: nowrap">13-2</FONT> addresses how a change or projected change in the timing of cash flows relating to income taxes generated by a leveraged lease transaction affects the accounting for the lease by the lessor, and directs that the tax assumptions be consistent with any FIN&nbsp;48 uncertain tax position related to the lease. AIG adopted FSP&nbsp;<FONT style="WHITE-SPACE: nowrap">13-2</FONT> on January&nbsp;1, 2007. Upon adoption, AIG recorded a $50&nbsp;million decrease in the opening balance of retained earnings, net of tax, to reflect the cumulative effect of this change in accounting. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a result of adopting SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">05-1,</FONT> FIN&nbsp;48 and FSP&nbsp;<FONT style="WHITE-SPACE: nowrap">13-2,</FONT> AIG recorded a total decrease to opening retained earnings of $203&nbsp;million as of January&nbsp;1, 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Future Application of Accounting Standards</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><I>FAS&nbsp;157</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In September 2006, the FASB issued FAS&nbsp;157, &#147;Fair Value Measurements&#148; (FAS&nbsp;157). FAS&nbsp;157 defines fair value, establishes a framework for measuring fair value and expands disclosure requirements regarding fair value measurements but does not change existing guidance about whether an instrument is carried at fair value. FAS&nbsp;157 nullifies the guidance in EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3</FONT> that precluded the recognition of a trading profit at the inception of a derivative contract unless the fair value of such contract was obtained from a quoted market price or other valuation technique incorporating observable market data. FAS&nbsp;157 also clarifies that an issuer&#146;s credit standing should be considered when measuring liabilities at fair value. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG adopted FAS&nbsp;157 on January&nbsp;1, 2008, its required effective date. FAS&nbsp;157 must be applied prospectively, except that the difference between the carrying amount and fair value of a stand-alone derivative or hybrid instrument measured using the guidance in EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3</FONT> on recognition of a trading profit at the inception of a derivative, is to be applied as a cumulative-effect adjustment to opening retained earnings on January&nbsp;1, 2008. The adoption of FAS&nbsp;157 was not material to AIG&#146;s financial condition. However, the adoption of FAS 157 is expected to affect first quarter 2008 earnings, due to changes in the valuation methodology for hybrid financial instrument and derivative liabilities (both freestanding and embedded) currently carried at fair value. These methodology changes primarily include the incorporation of AIG&#146;s own credit risk and the inclusion of explicit risk margins, where appropriate. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><I>FAS&nbsp;159</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In February 2007, the FASB issued FAS&nbsp;159, &#147;The Fair Value Option for Financial Assets and Financial Liabilities&#148; (FAS&nbsp;159). FAS&nbsp;159 permits entities to choose to measure at fair value many financial instruments and certain other items that are not required to be measured at fair value. Subsequent changes in fair value for designated items are required to be reported in income. FAS&nbsp;159 also establishes presentation and disclosure requirements for similar types of assets and liabilities measured at fair value. FAS&nbsp;159 permits the fair value option election on an <FONT style="WHITE-SPACE: nowrap">instrument-by-instrument</FONT> basis for eligible items existing at the adoption date and at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG adopted FAS&nbsp;159 on January&nbsp;1, 2008, its required effective date. The adoption of FAS&nbsp;159 with respect to elections made in the Life Insurance&nbsp;&amp; Retirement Services segment is expected to result in a decrease to opening 2008 retained earnings of approximately $600&nbsp;million. The adoption of FAS&nbsp;159 with respect to elections made by AIGFP is currently being evaluated for the effect of recently issued draft guidance by the FASB, anticipated to be issued in final form in early 2008, and its potential effect on AIG&#146;s consolidated financial statements. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><I>SOP 07-1</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In June 2007, the AICPA issued SOP No.&nbsp;<FONT style="WHITE-SPACE: nowrap">07-1</FONT> (SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">07-1),</FONT> &#147;Clarification of the Scope of the Audit and Accounting Guide &#145;Audits of Investment Companies&#146; and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies.&#148; SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">07-1</FONT> amends the guidance for whether an entity may apply the Audit and Accounting Guide, &#147;Audits of Investment Companies&#148; (the Guide). In February 2008, the FASB issued an FSP indefinitely deferring the effective date of SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">07-1.</FONT> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FAS&nbsp;141(R)</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In December 2007, the FASB issued FAS&nbsp;141 (revised 2007), &#147;Business Combinations<I>&#148; </I>(FAS&nbsp;141(R)). FAS&nbsp;141(R) changes the accounting for business combinations in a number of ways, including broadening the transactions or events that are considered business combinations, requiring an acquirer to recognize 100&nbsp;percent of the fair values of assets acquired, liabilities assumed, and noncontrolling interests in acquisitions of less than a 100&nbsp;percent controlling interest when the acquisition constitutes a change in control of the acquired entity, recognizing contingent consideration arrangements at their acquisition-date fair values with subsequent changes in fair value generally reflected in income, and recognizing preacquisition loss and gain contingencies at their acquisition-date fair values, among other changes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; FAS&nbsp;141(R) is required to be adopted for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December&nbsp;15, 2008 (January&nbsp;1, 2009 for AIG). Early adoption is prohibited. AIG is evaluating the effect FAS&nbsp;141(R) will have on its consolidated financial statements. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FAS&nbsp;160</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In December 2007, the FASB issued FAS&nbsp;160, &#147;Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No.&nbsp;51&#148; (FAS&nbsp;160). FAS&nbsp;160 requires noncontrolling (i.e., minority) interests in partially owned consolidated subsidiaries to be classified in the consolidated balance sheet as a separate component of consolidated shareholders&#146; equity. FAS&nbsp;160 also establishes accounting rules for subsequent acquisitions and sales of noncontrolling interests and how noncontrolling interests should be presented in the consolidated statement of income. The noncontrolling interests&#146; share of subsidiary income should be reported as a part of consolidated net income with disclosure of the attribution of consolidated net income to the controlling and noncontrolling interests on the face of the consolidated statement of income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; FAS&nbsp;160 is required to be adopted in the first annual reporting period beginning on or after December&nbsp;15, 2008 (January&nbsp;1, 2009 for AIG) and earlier application is prohibited. FAS&nbsp;160 must be adopted prospectively, except that noncontrolling interests should be reclassified from liabilities to a separate component of shareholders&#146; equity and consolidated net income should be recast to include net income attributable to both the controlling and noncontrolling interests retrospectively. Had AIG adopted FAS&nbsp;160 at December&nbsp;31, 2007, AIG would have reclassified $10.4&nbsp;billion of minority (i.e., noncontrolling) interests from liabilities to Shareholders&#146; equity.</DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>2.&nbsp;Segment Information</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG identifies its reportable segments by product line consistent with its management structure. These segments and their respective operations are as follows: </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>General Insurance:</FONT> </I>AIG&#146;s General Insurance subsidiaries write substantially all lines of commercial property and casualty insurance and various personal lines both domestically and abroad. Revenues in the General Insurance segment represent General Insurance net Premiums and other considerations earned, Net investment income and Net realized capital gains (losses). AIG&#146;s principal General Insurance operations are as follows: </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Domestic Brokerage Group (DBG)&nbsp;writes substantially all classes of business insurance in the U.S.&nbsp;and Canada, accepting such business mainly from insurance brokers. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Transatlantic Holdings, Inc. (Transatlantic) subsidiaries offer reinsurance on both a treaty and facultative basis to insurers in the U.S. and abroad. Transatlantic structures programs for a full range of property and casualty products with an emphasis on specialty risks. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s Personal Lines operations provide automobile insurance through aigdirect.com, the newly formed operation resulting from the merger of AIG Direct and 21st&nbsp;Century Insurance Group (21st Century), and the Agency Auto Division, as well as a broad range of coverages for high net worth individuals through the AIG Private Client Group. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Mortgage Guaranty operations provide residential mortgage guaranty insurance that covers the first loss for credit defaults on high loan-to-value conventional first- and second-lien mortgages for the purchase or refinance of one to four family residences. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s Foreign General Insurance group accepts risks primarily underwritten through American International Underwriters (AIU), a marketing unit consisting of wholly owned agencies and insurance companies. The Foreign General Insurance group also includes business written by AIG&#146;s foreign-based insurance subsidiaries. The Foreign General Insurance group uses various marketing methods to write both business and consumer lines insurance with certain refinements for local laws, customs and needs. AIU operates in Asia, the Pacific Rim, Europe, including the United Kingdom, Africa, the Middle East and Latin America. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Each of the General Insurance sub-segments is comprised of groupings of major products and services as follows: DBG is comprised of domestic commercial insurance products and services; Transatlantic is comprised of reinsurance products and services sold to other general insurance companies; Personal Lines is comprised of general insurance products and services sold to individuals; Mortgage Guaranty is comprised of products insuring against losses arising under certain loan agreements; and Foreign General is comprised of general insurance products sold overseas. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Life Insurance&nbsp;&amp; Retirement Services:</FONT> </I>AIG&#146;s Life Insurance&nbsp;&amp; Retirement Services subsidiaries offer a wide range of insurance and retirement savings products both domestically and abroad. Insurance-oriented products consist of individual and group life, payout annuities (including structured settlements), endowment and accident and health policies. Retirement savings products consist generally of fixed and variable annuities. Revenues in the Life Insurance&nbsp;&amp; Retirement Services segment represent Life Insurance&nbsp;&amp; Retirement Services Premiums and other considerations, Net investment income and Net realized capital gains (losses). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s principal Foreign Life Insurance&nbsp;&amp; Retirement Services operations are American Life Insurance Company (ALICO), American International Assurance Company, Limited, together with American International Assurance Company (Bermuda) Limited (AIA), Nan Shan Life Insurance Company, Ltd. (Nan Shan), The Philippine American Life and General Insurance Company (Philamlife), AIG Edison Life Insurance Company (AIG Edison Life) and AIG Star Life Insurance Co. Ltd. (AIG Star Life). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s principal Domestic Life Insurance&nbsp;&amp; Retirement Services operations are American General Life Insurance Company (AG Life), The United States Life Insurance Company in the City of New York (USLIFE), American General Life and Accident Insurance Company (AGLA and, collectively with AG Life and USLIFE, the Domestic Life Insurance internal reporting unit), AIG Annuity Insurance Company (AIG Annuity), The Variable Annuity Life Insurance Company (VALIC)&nbsp;and AIG Retirement Services, Inc (AIG SunAmerica and, collectively with AIG Annuity and VALIC, the Domestic Retirement Services internal reporting unit). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; American International Reinsurance Company (AIRCO)&nbsp;acts primarily as an internal reinsurance company for AIG&#146;s insurance operations. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Life Insurance&nbsp;&amp; Retirement Services is comprised of two major groupings of products and services: insurance-oriented products and services and retirement savings products and services. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Financial Services:</FONT> </I>AIG&#146;s Financial Services subsidiaries engage in diversified activities including aircraft and equipment leasing, capital markets, consumer finance and insurance premium finance. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s Aircraft Leasing operations represent the operations of International Lease Finance Corporation (ILFC), which generates its revenues primarily from leasing new and used commercial jet aircraft to domestic and foreign airlines. Revenues also result from the remarketing of commercial jets for its own account, and remarketing and fleet management services for airlines and for financial institutions. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Capital Markets represents the operations of AIGFP, which engages as principal in a wide variety of financial transactions, including standard and customized financial products involving commodities, credit, currencies, energy, equities and rates and provides credit protection through credit default swaps on certain super senior tranches of collateralized debt obligations (CDOs). AIGFP also invests in a diversified portfolio of securities and principal investments and engages in borrowing activities that include issuing standard and structured notes and other securities and entering into guaranteed investment agreements (GIAs). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Consumer Finance operations include American General Finance Inc. (AGF)&nbsp;as well as AIG Consumer Finance Group Inc. (AIGCFG). AGF and AIGCFG provide a wide variety of consumer finance products, including non-conforming real estate mortgages, consumer loans, retail sales finance and credit-related insurance to customers both domestically and overseas, particularly in emerging and developing markets. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Asset Management:</FONT> </I>AIG&#146;s Asset Management operations comprise a wide variety of investment-related services and investment products. Such services and products are offered to individuals, pension funds and institutions globally through AIG&#146;s Spread-Based Investment business, Institutional Asset Management, and Brokerage Services and Mutual Funds business. Revenues in the Asset Management segment represent investment income with respect to spread-based products and management, advisory and incentive fees. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes AIG&#146;s operations by reporting segment for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="12%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>Operating Segments</TD> <TD>&nbsp;</TD> <TD colSpan=15>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=15>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=15>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Life</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=15>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidation</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>General</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>&amp;&nbsp;Retirement</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Financial</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Asset</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Management<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=3>Eliminations<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)(d)(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,708</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>53,570</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,309</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5,625</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>457</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>110,051</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>110,064</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>29</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>128</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>7,794</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>567</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,170</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,688</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,688</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss) before minority interest<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,526</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,186</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(9,515</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,164</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2,140</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,221</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>722</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,943</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,393</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,494</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3,260</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>334</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>537</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,498</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(43</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,455</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>300</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>392</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,831</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>88</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>179</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,790</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,790</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>354</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>532</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,569</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,557</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>271</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,283</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,283</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>181,708</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>615,386</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>203,894</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>77,274</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>126,874</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,205,136</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(144,631</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,060,505</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>49,206</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>50,878</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,777</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,543</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>112,887</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>500</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>113,387</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>74</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,005</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>105</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>744</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,951</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,951</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss) before minority interest<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,412</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,121</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>383</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,538</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,435</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21,019</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>668</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21,687</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,351</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,892</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(26</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>575</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>719</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,511</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,537</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>274</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,655</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>164</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,374</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,374</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>375</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>711</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,278</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>835</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>244</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,443</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,443</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>167,004</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>550,957</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>202,485</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>78,275</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>107,517</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,106,238</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(126,828</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>979,410</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,174</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>48,020</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,677</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,582</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>344</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>108,797</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(16</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>108,781</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>83</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,164</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>408</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,673</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,673</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss) before minority interest<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,315</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,965</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,424</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,963</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(2,765</TD> <TD vAlign=bottom noWrap align=left>)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(f)</SUP></I></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,902</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>311</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,213</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>169</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,407</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,418</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>723</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(587</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,130</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>128</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,258</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>273</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,447</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>43</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>169</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,200</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>417</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>590</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,300</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>194</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,526</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,526</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>150,667</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>489,331</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>161,919</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69,584</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>94,047</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>965,548</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(112,500</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>853,048</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 5pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Beginning in 2007, revenues and operating income related to certain foreign investment contracts, which were historically reported as a component of the Asset Management segment, are now reported in the Life Insurance &amp; Retirement Services segment, net realized capital gains and losses; including derivative gains and losses and foreign exchange transaction gains and losses for Financial Services entities other than AIGFP and Asset Management entities, which were previously reported as part of AIG&#146;s Other category, are now included in Asset Management and Financial Services revenues and operating income; and revenues and operating income related to consolidated managed partnerships and funds, which were historically reported in the Asset Management segment, are now being reported in Consolidation and eliminations. All prior periods have been revised to conform to the current presentation.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Includes AIG Parent and other operations that are not required to be reported separately. The following table presents the operating loss for AIG&#146;s Other category for the years ended December&nbsp;31, 2007, 2006 and 2005:</I></TD></TR></TBODY></TABLE> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="52%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>For the Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss):</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity earnings in partially owned companies*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>157</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>193</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(124</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1,223</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(859</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(541</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unallocated corporate expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(560</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(517</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(413</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Compensation expense&nbsp;&#151; SICO Plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(39</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(108</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(205</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Compensation expense&nbsp;&#151; Starr tender offer</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(54</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net realized capital gains (losses)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(409</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(37</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>269</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Regulatory settlement costs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,644</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other miscellaneous, net</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(66</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(107</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2,140</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(1,435</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(2,765</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="2%"></TD> <TD width="96%"></TD></TR> <TR vAlign=top> <TD>&nbsp;</TD> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Includes current year catastrophe-related losses from unconsolidated entities of $312&nbsp;million in 2005. There were no significant catastrophe-related losses from unconsolidated entities in 2007 and 2006.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(c)&nbsp;</I></TD> <TD align=left><I>Represents the sum of General Insurance net premiums earned, Life Insurance&nbsp;&amp; Retirement Services premiums and other considerations, net investment income, Financial Services interest, lease and finance charges, Asset Management investment income from spread-based products and management, advisory and incentive fees, and realized capital gains (losses).</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(d)&nbsp;</I></TD> <TD align=left><I>In 2007, 2006 and 2005, includes other-than-temporary impairment charges of $4.7&nbsp;billion, $944&nbsp;million and $598&nbsp;million, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(e)&nbsp;</I></TD> <TD align=left><I>Both revenues and operating income (loss) include an unrealized market valuation loss of $11.5&nbsp;billion on AIGFP&#146;s super senior credit default swap portfolio and an other-than-temporary impairment charge of $643&nbsp;million on AIGFP&#146;s available for sale investment securities reported in other income.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(f)&nbsp;</I></TD> <TD align=left><I>Includes settlement costs of $1.64&nbsp;billion as described in Note&nbsp;12(a) Litigation and Investigations herein.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes AIG&#146;s General Insurance operations by major internal reporting unit for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="20%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=31>General Insurance</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=31>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Domestic</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Foreign</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidation</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Brokerage</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Personal</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Mortgage</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>General</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reportable</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>General</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Group</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Transatlantic</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Lines</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Guaranty</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Segment</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Eliminations</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>27,653</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,382</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,924</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,041</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,715</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,715</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(7</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,708</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses&nbsp;&amp; loss expenses incurred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>15,948</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,638</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,660</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,493</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,243</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>29,982</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>29,982</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Underwriting expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,400</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,083</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,197</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>185</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,335</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>11,200</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>11,200</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>7,305</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>661</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>67</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(637</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,137</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,533</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(7</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,526</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>97</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>70</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>125</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>300</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>300</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>93</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>81</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>21</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>155</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>354</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>354</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>112,675</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>15,484</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5,930</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,550</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>48,728</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>187,367</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(5,659</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>181,708</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>27,419</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,050</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,871</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>877</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>11,999</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>49,216</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(10</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>49,206</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses&nbsp;&amp; loss expenses incurred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>16,779</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,463</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,306</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>349</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,155</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,052</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,052</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Underwriting expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,795</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>998</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,133</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,616</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,742</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,742</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,845</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>589</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>432</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>328</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,228</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,422</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,412</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>52</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>115</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>274</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>274</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>125</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>94</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>143</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>375</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>375</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>104,866</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,391</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,604</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>43,879</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>172,008</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(5,004</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>167,004</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,171</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,766</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,848</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>655</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,719</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,159</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,174</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses&nbsp;&amp; loss expenses incurred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21,466</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,877</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,566</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>139</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,043</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33,091</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33,091</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Underwriting expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,525</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>928</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,087</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>153</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,075</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,768</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,768</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss) <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(820</TD> <TD vAlign=bottom noWrap align=left>)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(39</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>195</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>363</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,601</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,300</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,315</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>114</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>48</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>105</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>273</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>273</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>119</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>94</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>196</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>417</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>417</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>95,829</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>12,365</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,245</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,165</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>39,044</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>155,648</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(4,981</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>150,667</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 5pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Catastrophe-related losses in 2007 and 2005 by reporting unit were as follows. There were no significant catastrophe-related losses in 2006.</I></TD></TR></TBODY></TABLE> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="38%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=17>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2007</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2005</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net Reinstatement</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net Reinstatement</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Related Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Premium Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Related Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Premium Cost</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=17>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reporting Unit:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">DBG</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>113</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(13</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,811</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>136</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Transatlantic</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>463</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>45</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Personal Lines</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>112</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage Guaranty</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign General Insurance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>90</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>229</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>80</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>275</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,625</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>263</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Includes the effect of out of period adjustments related to the accounting for certain interests in unit investment trusts (UCITS). For DBG, the effect was an increase of $66&nbsp;million in both revenues and operating income and for Foreign General Insurance, the effect was an increase of $424&nbsp;million in both revenues and operating income.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Includes the fourth quarter 2005 increase in net reserves of approximately $1.8&nbsp;billion resulting from the annual review of General Insurance loss and loss adjustment reserves.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(d)</I></TD> <TD align=left><I>Includes $291&nbsp;million of expenses related to changes in estimates for uncollectible reinsurance and other premium balances, and $100&nbsp;million of accrued expenses in connection with certain workers compensation insurance policies written between 1985 and 1996.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes AIG&#146;s Life Insurance&nbsp;&amp; Retirement Services operations by major internal reporting unit for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="18%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=41>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=39>Life Insurance&nbsp;&amp; Retirement Services</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=38>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=35>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total Life</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Domestic</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Domestic</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidation</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance&nbsp;&amp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Japan</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Life</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Retirement</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reportable</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Retirement</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Asia</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Segment</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Eliminations</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=41>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance-oriented products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14,393</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>19,896</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>&nbsp; </FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,535</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>42,824</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>42,824</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Retirement savings products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,783</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>191</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>493</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,279</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,746</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,746</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>18,176</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>20,087</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,028</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,279</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>53,570</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>53,570</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,044</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,153</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>642</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,347</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,186</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,186</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>110</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>84</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>85</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>113</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>392</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>392</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>166</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>232</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>53</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>81</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>532</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>532</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>177,413</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>132,521</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>108,908</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>203,441</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>622,283</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(6,897</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>615,386</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(c)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance-oriented products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>13,310</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>17,712</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>8,538</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>39,560</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>39,560</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Retirement savings products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,441</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>168</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>568</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,141</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,318</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,318</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>16,751</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17,880</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,106</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,141</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50,878</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50,878</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,821</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,060</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>917</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,323</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,121</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,121</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>101</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>70</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>63</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>342</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>260</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>71</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>711</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>711</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>152,409</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>108,850</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>103,624</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>192,885</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>557,768</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(6,811</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>550,957</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance-oriented products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,524</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15,853</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>8,525</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>36,902</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>36,902</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Retirement savings products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,413</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>129</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>690</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,886</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,118</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,118</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,937</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,982</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,215</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,886</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>48,020</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>48,020</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,020</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,286</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,495</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,164</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,965</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,965</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>91</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>65</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>31</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>153</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>340</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>71</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>590</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>590</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>124,524</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>87,491</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>99,594</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>185,383</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>496,992</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(7,661</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>489,331</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>In 2007, 2006 and 2005, includes other-than-temporary impairment charges of $2.8&nbsp;billion, $641&nbsp;million and $425&nbsp;million, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Includes a positive out-of-period adjustment of $158&nbsp;million related to foreign exchange remediation activities.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Includes the effect of out-of-period adjustments related to the accounting for UCITS in 2006, which increased revenues by $240&nbsp;million and operating income by $169&nbsp;million.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=right>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes AIG&#146;s Financial Services operations by major internal reporting unit for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="16%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=28>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=27>Financial Services</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=26>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=15>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidation</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Aircraft</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Capital</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consumer</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reportable</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Financial</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Leasing<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Markets<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Finance<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Segment</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Elimination</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=28>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)(e)(f)(g)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,694</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(9,979</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,655</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,471</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(159</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,150</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,309</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,650</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,644</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,437</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>63</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7,794</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7,794</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)(f)(g)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>873</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(10,557</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>171</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(9,515</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(9,515</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,751</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>24</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>41</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>15</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,831</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,831</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,164</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>21</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>62</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>322</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,569</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,569</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>44,970</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>115,487</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>36,822</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>17,357</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>214,636</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(10,742</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>203,894</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,082</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(186</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,587</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>320</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,803</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(26</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,777</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,442</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,215</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,303</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>108</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,068</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(63</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,005</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>578</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(873</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>668</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>383</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>383</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,584</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>41</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,655</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,655</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,012</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>52</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>199</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,278</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,278</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>41,975</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>121,243</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>32,702</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>12,368</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>208,288</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(5,803</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>202,485</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,668</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,260</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,563</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>206</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,697</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(20</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,677</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,125</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,033</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,005</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>201</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,364</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(200</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,164</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>769</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,661</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>922</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>72</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,424</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,424</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,384</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>20</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,447</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,447</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,193</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>54</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,300</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,300</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>37,515</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>90,090</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,704</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,984</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>166,293</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(4,374</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>161,919</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Both revenues and operating income include gains (losses) from hedging activities that did not qualify for hedge accounting treatment under FAS&nbsp;133, including the related foreign exchange gains and losses. In 2007, 2006 and 2005, the effect was $(37)&nbsp;million, $(73)&nbsp;million and $93&nbsp;million, respectively. These amounts result primarily from interest rate and foreign currency derivatives that are effective economic hedges of borrowings. In the second quarter of 2007, ILFC began applying hedge accounting to most of its derivatives hedging interest rate and foreign exchange risks associated with its floating rate and foreign currency denominated borrowings.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Both revenues and operating income include gains (losses) from hedging activities that did not qualify for hedge accounting treatment under FAS&nbsp;133, including the related foreign exchange gains and losses. In 2007, 2006 and 2005, the effect was $211&nbsp;million, $(1.82)&nbsp;billion and $2.01&nbsp;billion, respectively. The year ended December&nbsp;31, 2007 includes a $380&nbsp;million out of period charge to reverse net gains recognized on transfers of available for sale securities among legal entities consolidated within AIGFP. The year ended December&nbsp;31, 2006 includes an out of period charge of $223&nbsp;million related to the remediation of the material weakness in internal control over the accounting for certain derivative transactions under FAS&nbsp;133. In the first quarter of 2007, AIGFP began applying hedge accounting for certain of its interest rate swaps and foreign currency forward contracts hedging its investments and borrowings.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Both revenues and operating income include gains (losses) from hedging activities that did not qualify for hedge accounting treatment under FAS&nbsp;133, including the related foreign exchange gains and losses. In 2007, 2006 and 2005, the effect was $(20)&nbsp;million, $(94)&nbsp;million and $75&nbsp;million, respectively. These amounts result primarily from interest rate and foreign currency derivatives that are effective economic hedges of borrowings. In the second quarter of 2007, AGF began applying hedge accounting to most of its derivatives hedging interest rate and foreign exchange risks associated with its floating rate and foreign currency denominated borrowings.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(d)</I></TD> <TD align=left><I>Represents primarily the sum of aircraft lease rentals from ILFC, AIGFP hedged financial positions entered into in connection with counterparty transactions, the effect of hedging activities that did not qualify for hedge accounting treatment under FAS&nbsp;133, including the related foreign exchange gains and losses, and finance charges from consumer finance operations.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(e)&nbsp;</I></TD> <TD align=left><I>Interest expense for the Capital Markets business is included in Revenues above and in Other income in the consolidated statement of income.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(f)&nbsp;</I></TD> <TD align=left><I>Both revenues and operating income (loss) include an unrealized market valuation loss of $11.5&nbsp;billion on AIGFP&#146;s super senior credit default swap portfolio and an other-than-temporary impairment charge of $643&nbsp;million on AIGFP&#146;s available for sale investment securities reported in other income.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(g)&nbsp;</I></TD> <TD align=left><I>Includes a pre-tax charge of $178 million in connection with domestic consumer finance&#146;s mortgage banking activities.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>A substantial portion of AIG&#146;s operations is conducted in countries other than the United States and Canada. The following table summarizes AIG&#146;s operations by major geographic segment. Allocations have been made on the basis of the location of operations and assets.</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="49%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=17>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>Geographic Segments</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=15>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Domestic<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Far East</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Foreign</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>46,402</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>36,512</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>27,150</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>110,064</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Real estate and other fixed assets, net of accumulated depreciation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,202</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,404</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>912</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5,518</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Flight equipment primarily under operating leases, net of accumulated depreciation<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>41,984</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>41,984</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>57,984</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>33,883</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,520</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>113,387</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Real estate and other fixed assets, net of accumulated depreciation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,432</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,082</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>867</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,381</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Flight equipment primarily under operating leases, net of accumulated depreciation<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>39,875</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>39,875</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>59,858</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,076</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>16,847</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>108,781</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Real estate and other fixed assets, net of accumulated depreciation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,905</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>929</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>807</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,641</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Flight equipment primarily under operating leases, net of accumulated depreciation<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,245</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,245</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Including revenues from insurance operations in Canada of $1.3</I>&nbsp;<I>billion, $1.1&nbsp;billion and $968&nbsp;million in 2007, 2006 and 2005, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Approximately 90&nbsp;percent of ILFC&#146;s fleet is operated by foreign airlines.</I></TD></TR></TBODY></TABLE></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>3.&nbsp;Investments</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Statutory Deposits:</B><FONT style="FONT-SIZE: 8.5pt"> Cash and securities with carrying values of $13.6&nbsp;billion and $14.8&nbsp;billion were deposited by AIG&#146;s insurance subsidiaries under requirements of regulatory authorities at December&nbsp;31, 2007 and 2006, respectively. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;Net Investment Income:</B><FONT style="FONT-SIZE: 8.5pt"> An analysis of net investment income follows: </FONT></DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="57%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=13><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fixed maturities<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22,330</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20,393</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>18,690</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,361</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,733</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,716</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><FONT color=#002868>Interest on mortgage and other loans </FONT></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,423</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,253</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,177</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Partnerships</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,986</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,596</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,056</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mutual funds</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>650</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>845</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other invested assets<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>941</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,293</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>820</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total investment income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>29,691</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,113</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23,463</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investment expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,072</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,043</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>879</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net investment income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28,619</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>26,070</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>22,584</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Includes short-term investments.</I></TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Includes net investment income from securities lending activities, representing interest earned on securities lending invested collateral offset by interest expense on securities lending payable.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B>(c)&nbsp;Net Realized Gains and Losses:</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The Net realized capital gains (losses) and increase (decrease) in unrealized appreciation of AIG&#146;s available for sale investments were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="58%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net realized capital gains (losses):</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Sales of fixed maturities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(468</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(382</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>372</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Sales of equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,087</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>813</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>643</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Sales of real estate and other assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>619</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>303</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>88</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other-than-temporary impairments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(4,072</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(944</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(598</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign exchange transactions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(643</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(382</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>701</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Derivative instruments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(115</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>698</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(865</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3,592</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>106</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>341</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increase (decrease) in unrealized appreciation of investments:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fixed maturities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5,504</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(198</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(4,656</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,440</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>432</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>850</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3,842</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>986</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,138</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGFP investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1,140</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,354</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,909</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increase (decrease) in unrealized appreciation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(8,046</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,574</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(3,577</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>Net unrealized gains (losses) included in the consolidated statement of income from investment securities classified as trading securities in 2007, 2006 and 2005 were $1.1&nbsp;billion, $938&nbsp;million and $1.1&nbsp;billion, respectively. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The gross realized gains and gross realized losses from sales of AIG&#146;s available for sale securities were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="40%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=24>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><B><FONT color=#002868>2007</FONT></B></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2006</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2005</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Gross</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Gross</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=24>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fixed maturities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>680</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,148</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>711</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,093</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,586</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,214</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,368</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>291</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,111</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>320</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>930</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>354</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Preferred stocks</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>101</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,058</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,439</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,844</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,413</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,617</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,602</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(d)&nbsp;Fair Value of Investment Securities:</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The amortized cost or cost and estimated fair value of AIG&#146;s available for sale and held to maturity securities at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="20%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=34>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15><B><FONT color=#002868>December&nbsp;31, 2007*</FONT></B></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>December&nbsp;31, 2006</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=14>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=14>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Amortized</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Gross</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Gross</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amortized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost or</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrealized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrealized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Fair</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost or</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrealized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrealized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Fair</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=right colSpan=2><I>(in millions)</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=34>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Available for sale:<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.&nbsp;government and government sponsored entities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7,956</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>333</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>37</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,252</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,667</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>221</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>140</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,748</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Obligations of states, municipalities and political subdivisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>46,087</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>927</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>160</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>46,854</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>59,785</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,056</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>210</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>60,631</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Non-U.S.&nbsp;governments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>67,023</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,920</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>743</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>70,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>62,860</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>5,461</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>437</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>67,884</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Corporate debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>239,822</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,216</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,518</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>241,520</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>257,383</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>7,443</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,536</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>262,290</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage-backed, asset- backed and collateralized</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>140,982</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,221</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7,703</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>134,500</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>104,687</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>502</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>362</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>104,827</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total bonds</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>501,870</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>12,617</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,161</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>501,326</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>492,382</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,683</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,685</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>503,380</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>15,188</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5,545</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>463</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,270</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>13,147</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,807</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>159</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>15,795</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>517,058</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,162</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,624</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>521,596</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>505,529</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>17,490</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>3,844</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>519,175</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Held to maturity:<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bonds&nbsp;&#151; Obligations of states, municipalities and political subdivisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>21,581</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>609</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>33</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22,157</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,437</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>731</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>22,154</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>At December&nbsp;31, 2007 and 2006, fixed maturities held by AIG that were below investment grade or not rated totaled $27.0&nbsp;billion and $26.6&nbsp;billion, respectively.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents the amortized cost and estimated fair values of AIG&#146;s available for sale and held to maturity fixed maturity securities at December&nbsp;31, 2007, by contractual maturity. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="54%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Available for Sale</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Held to Maturity</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amortized</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amortized</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Fair Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Fair Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Due in one&nbsp;year or less</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,844</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,994</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>72</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>69</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Due after one&nbsp;year through five&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>95,494</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>97,466</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>284</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>277</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Due after five&nbsp;years through ten&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>121,961</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>123,196</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,511</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,547</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Due after ten&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>117,589</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>120,170</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,714</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>20,264</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage-backed, asset-backed and collateralized</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>140,982</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>134,500</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>501,870</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>501,326</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,581</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>22,157</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>AIG&#146;s available for sale securities are recorded on the consolidated balance sheet at December&nbsp;31, 2007 and 2006 as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="65%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Fair Value</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=3><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bonds available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>397,372</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>386,869</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Common stocks available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17,900</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,256</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Preferred stocks available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,370</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,539</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Financial Services securities available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40,305</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,205</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities lending invested collateral</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>63,649</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69,306</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=11>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>521,596</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>519,175</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=11>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>(e)&nbsp;Non-Income Producing Invested Assets:</B><FONT style="FONT-SIZE: 8.5pt"> At December&nbsp;31, 2007, non-income producing invested assets were insignificant. </FONT></DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><B>(f)</B></TD> <TD align=left><B>Gross Unrealized Losses and Estimated Fair Values on Investments:</B></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes the cost basis and gross unrealized losses on AIG&#146;s available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position, at December&nbsp;31, 2007 and 2006:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="29%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=25>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><FONT face="" color=#0000cb>12 Months or less</FONT></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><FONT face="" color=#0000cb>More than 12 Months</FONT></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><FONT face="" color=#0000cb>Total</FONT></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Unrealized</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Unrealized</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Unrealized</FONT></TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I><FONT color=#0000cb>(in millions)</FONT></I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Cost<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Losses</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Cost<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Losses</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Cost<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Losses</FONT></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=25>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bonds<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>190,809</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,935</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>65,137</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,226</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>255,946</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,161</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,433</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>463</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,433</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>463</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>195,242</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>10,398</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>65,137</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,226</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>260,379</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,624</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bonds<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>69,656</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,257</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>84,040</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,428</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>153,696</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,685</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,734</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>159</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,734</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>159</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>72,390</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,416</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>84,040</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,428</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>156,430</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,844</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>For bonds, represents amortized cost.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Primarily relates to the corporate debt category.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, AIG held 37,281 and 2,307 of individual bond and stock investments, respectively, that were in an unrealized loss position, of which 9,930 individual investments were in an unrealized loss position for a continuous 12&nbsp;months or longer. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG recorded other-than-temporary impairment charges of $4.7 billion (including $643&nbsp;million related to AIGFP recorded in Other income), $944&nbsp;million and $598&nbsp;million in 2007, 2006 and 2005, respectively. See Note&nbsp;1(c) herein for AIG&#146;s other-than-temporary impairment accounting policy. </DIV> <TABLE style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="3%"></TD> <TD width="97%"></TD></TR> <TR vAlign=top> <TD><B>(g)&nbsp;</B></TD> <TD align=left><B>Other Invested Assets:</B></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Other invested assets at December&nbsp;31, 2007 and 2006 consisted of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="76%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR> <TD noWrap align=left colSpan=9>At December&nbsp;31,</TD></TR> <TR> <TD noWrap align=left>(in millions)</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Partnerships<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28,938</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,657</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mutual funds</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,891</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,892</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investment real estate<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,877</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,694</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Aircraft asset investments<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,689</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,784</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life settlement contracts<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,627</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,090</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Consolidated managed partnerships and&nbsp;funds<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,614</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,923</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">All other investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5,187</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,071</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other invested assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>58,823</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>42,111</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Includes private equity partnerships and hedge funds.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Net of accumulated depreciation of $548&nbsp;million and $585&nbsp;million in 2007 and 2006, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Consist primarily of Life Insurance &amp; Retirement Services investments in aircraft equipment.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(d)</I></TD> <TD align=left><I>See paragraph (h) below for additional information.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(e)</I></TD> <TD align=left><I>Represents AIG managed partnerships and funds that are consolidated.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007 and 2006, $7.2&nbsp;billion and $5.3&nbsp;billion of Other invested assets related to available for sale investments carried at fair value, with unrealized gains and losses recorded in of Accumulated other comprehensive income (loss), net of deferred taxes, with almost all of the remaining investments being accounted for on the equity method of accounting. All of the investments are subject to impairment testing (see Note&nbsp;1(c) herein). The gross unrealized loss on the investments accounted for as available for sale at December&nbsp;31, 2007 was $621&nbsp;million, the majority of which represents investments that have been in a continuous unrealized loss position for less than 12&nbsp;months. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(h)&nbsp;Investments in Life Settlement Contracts:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, the carrying value of AIG&#146;s life settlement contracts was $1.6&nbsp;billion, and is included in Other invested assets in the consolidated balance sheet. These investments are monitored for impairment on a contract by contract basis quarterly. During 2007, income recognized on life settlement contracts previously held in non-consolidated trusts was $32&nbsp;million, and is included in net investment income in the consolidated statement of income. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Further information regarding life settlement contracts at December&nbsp;31, 2007 is as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="55%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD></TR> <TR> <TD noWrap align=left colSpan=2><I>(dollars in millions)</I></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR> <TD noWrap align=left colSpan=14>Remaining Life</TD></TR> <TR> <TD noWrap align=left colSpan=2>Expectancy of</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Number of</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Carrying</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Face Value</TD> <TD></TD></TR> <TR> <TD noWrap align=left colSpan=2>Insureds</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Contracts</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>(Death Benefits)</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">0&nbsp;&#150; 1&nbsp;year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>9</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">1&nbsp;&#150; 2&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2&nbsp;&#150; 3&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>79</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>98</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">3&nbsp;&#150; 4&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>151</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>111</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>210</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">4&nbsp;&#150; 5&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>176</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>130</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>277</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Thereafter</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,181</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,284</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,400</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,632</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,627</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,041</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, the anticipated life insurance premiums required to keep the life settlement contracts in force, payable in the ensuing twelve months ending December&nbsp;31, 2008 and the four succeeding years ending December&nbsp;31, 2012 are $132&nbsp;million, $141&nbsp;million, $149&nbsp;million, $146&nbsp;million, and $152&nbsp;million, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In June 2006, AIG restructured its ownership of life settlement contracts with no effect on the economic substance of these investments. At the same time, AIG paid $610&nbsp;million to its former co-investors to acquire all the remaining interests in life settlement contracts held in previously non-consolidated trusts. The life insurers for a small portion of AIG&#146;s consolidated life settlement contracts include AIG subsidiaries. As a result, amounts related to life insurance issued by AIG subsidiaries are eliminated in consolidation. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>4.&nbsp;Lending activities</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Mortgages and other loans receivable at December&nbsp;31, 2007 and 2006 are comprised of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="73%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=9><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgages&nbsp;&#150; commercial</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17,105</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15,219</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgages&nbsp;&#150; residential*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,153</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,903</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life insurance policy loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,099</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,501</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Collateral, guaranteed, and other commercial loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,447</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,859</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total mortgage and other loans receivable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>33,804</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,482</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Allowance for losses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(77</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(64</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage and other loans receivable, net</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>33,727</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>28,418</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD>*&nbsp;</TD> <TD align=left><I>Primarily consists of foreign mortgage loans.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Finance receivables, net of unearned finance charges, were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="73%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=9><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Real estate loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,023</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20,321</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Non-real estate loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5,447</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,506</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Retail sales finance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,659</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,092</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Credit card loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,566</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,413</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,417</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>978</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total finance receivables</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>32,112</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,310</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Allowance for losses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(878</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(737</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Finance receivables, net</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>31,234</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>29,573</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>5.&nbsp;Reinsurance</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In the ordinary course of business, AIG&#146;s General Insurance and Life Insurance companies place reinsurance with other insurance companies in order to provide greater diversification of AIG&#146;s business and limit the potential for losses arising from large risks. In addition, AIG&#146;s General Insurance subsidiaries assume reinsurance from other insurance companies. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Supplemental information for gross loss and benefit reserves net of ceded reinsurance at December&nbsp;31, 2007 and 2006 follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="69%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>As</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net of</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reported</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reinsurance</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for losses and loss expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>(85,500</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>(69,288</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Future policy benefits for life and accident and health insurance contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(136,068</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(134,461</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for unearned premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(28,022</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(24,029</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reinsurance assets*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>21,811</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for losses and loss expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(79,999</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(62,630</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Future policy benefits for life and accident and health insurance contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(121,004</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(119,430</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for unearned premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(26,271</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(22,759</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reinsurance assets*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,456</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIRCO acts primarily as an internal reinsurance company for AIG&#146;s insurance operations. This facilitates insurance risk management (retention, volatility, concentrations) and capital planning locally (branch and subsidiary). It also allows AIG to pool its insurance risks and purchase reinsurance more efficiently at a consolidated level, manage global counterparty risk and relationships and manage global life catastrophe risks. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>General Reinsurance</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>General reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts which protect AIG against losses over stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from general reinsurers are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of reinsurance assets. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts. For both ceded and assumed reinsurance, risk transfer requirements must be met in order for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>General Insurance premiums written and earned were comprised of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="58%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Premiums written:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Direct</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>52,055</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>49,609</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>46,689</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assumed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,743</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,671</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,036</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Ceded</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(11,731</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(11,414</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10,853</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>47,067</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>44,866</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>41,872</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Premiums earned:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Direct</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50,403</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>47,973</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,794</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assumed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,530</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,449</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,921</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Ceded</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(11,251</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10,971</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10,906</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>45,682</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>43,451</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>40,809</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For the years ended December&nbsp;31, 2007, 2006 and 2005, reinsurance recoveries, which reduced loss and loss expenses incurred, amounted to $9.0&nbsp;billion, $8.3&nbsp;billion and $20.7&nbsp;billion, respectively. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Life Reinsurance</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>Life reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection provided. Amounts recoverable from life reinsurers are estimated in a manner consistent with the assumptions used for the underlying policy benefits and are presented as a component of reinsurance assets. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Life Insurance&nbsp;&amp; Retirement Services premiums were comprised of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="63%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=13><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Gross premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>34,585</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,247</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>30,818</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Ceded premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1,778</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,481</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,317</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>32,807</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>30,766</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>29,501</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Life Insurance recoveries, which reduced death and other benefits, approximated $1.1 billion, $806&nbsp;million and $770&nbsp;million, respectively, for the years ended December&nbsp;31, 2007, 2006 and 2005. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Life Insurance in-force ceded to other insurance companies was as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="61%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=13><B>At December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life Insurance in force ceded</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>402,654</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>408,970</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>365,082</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Life Insurance assumed represented less than 0.1&nbsp;percent, 0.1&nbsp;percent and 0.8&nbsp;percent of gross Life Insurance in force at December&nbsp;31, 2007, 2006 and 2005, respectively, and Life Insurance&nbsp;&amp; Retirement Services premiums assumed represented 0.1&nbsp;percent, 0.1&nbsp;percent and 0.3&nbsp;percent of gross premiums and other considerations for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s Domestic Life Insurance&nbsp;&amp; Retirement Services operations utilize internal and third-party reinsurance relationships to manage insurance risks and to facilitate capital management strategies. Pools of highly-rated third-party reinsurers are utilized to manage net amounts at risk in excess of retention limits. AIG&#146;s Domestic Life Insurance companies also cede excess, non-economic reserves carried on a statutory-basis only on certain term and universal life insurance policies and certain fixed annuities to an offshore affiliate. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG generally obtains letters of credit in order to obtain statutory recognition of its intercompany reinsurance transactions. For this purpose, AIG has a $2.5&nbsp;billion syndicated letter of credit facility outstanding at December&nbsp;31, 2007, all of which relates to life intercompany reinsurance transactions. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG is also a party to a <FONT style="WHITE-SPACE: nowrap">364-day</FONT> bilateral revolving credit facility for an aggregate amount of $3.2&nbsp;billion. The facility can be drawn in the form of letters of credit with terms of up to eight years. At December&nbsp;31, 2007, approximately $3.0&nbsp;billion principal amount of letters of credit are outstanding under this facility, of which approximately $2.1&nbsp;billion relates to life intercompany reinsurance transactions. AIG has also obtained approximately $377&nbsp;million of letters of credit on a bilateral basis. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Reinsurance Security</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG&#146;s third-party reinsurance arrangements do not relieve AIG from its direct obligation to its insureds. Thus, a credit exposure exists with respect to both general and life reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. AIG holds substantial collateral as security under related reinsurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance. AIG has been largely successful in prior recovery efforts. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG evaluates the financial condition of its reinsurers and establishes limits per reinsurer through AIG&#146;s Credit Risk Committee. AIG believes that no exposure to a single reinsurer represents an inappropriate concentration of risk to AIG, nor is AIG&#146;s business substantially dependent upon any single reinsurer. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>6.&nbsp;Deferred Policy Acquisition Costs</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following reflects the policy acquisition costs deferred for amortization against future income and the related amortization charged to income for General Insurance and Life Insurance&nbsp;&amp; Retirement Services operations:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="60%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">General Insurance operations:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,355</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,048</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,998</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Acquisition costs deferred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,661</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,115</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,480</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amortization expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(8,235</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(7,866</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(7,365</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increase (decrease) due to foreign exchange and other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(138</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>58</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(65</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,643</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,355</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,048</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life Insurance&nbsp;&amp; Retirement Services operations:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>32,810</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>28,106</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,080</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Acquisition costs deferred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>7,276</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,823</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,513</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amortization expense<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3,367</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(3,712</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(3,328</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Change in net unrealized gains (losses) on securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>745</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>646</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>977</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increase (decrease) due to foreign exchange</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>916</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>947</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,136</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>65</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Subtotal</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>38,445</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,810</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>28,106</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Consolidation and eliminations</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>62</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>70</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at end of year<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>38,507</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,880</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>28,106</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total deferred policy acquisition costs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>43,150</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>37,235</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,154</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>In 2007, amortization expense was reduced by $733&nbsp;million related to changes in actuarial estimates, which was mostly offset in incurred policy losses and benefits.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I>&nbsp;</TD> <TD align=left><I>In 2007, includes the cumulative effect of the adoption of SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">05-1</FONT> of $(118)&nbsp;million and a balance sheet reclassification of $189&nbsp;million.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I>&nbsp;</TD> <TD align=left><I>Includes $5&nbsp;million and $(720)&nbsp;million at December&nbsp;31, 2007 and 2006, respectively, related to the effect of net unrealized gains and losses on available for sale securities.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Included in the above table is the VOBA, an intangible asset recorded during purchase accounting, which is amortized in a manner similar to DAC. Amortization of VOBA was $213&nbsp;million, $239&nbsp;million and $291&nbsp;million in 2007, 2006 and 2005, respectively, while the unamortized balance was $1.86&nbsp;billion, $1.98&nbsp;billion and $2.14&nbsp;billion at December&nbsp;31, 2007, 2006 and 2005, respectively. The percentage of the unamortized balance of VOBA at 2007 expected to be amortized in 2008 through 2012 by year is: 11.7&nbsp;percent, 10.2&nbsp;percent, 8.4&nbsp;percent, 6.6&nbsp;percent and 5.9&nbsp;percent, respectively, with 57.2&nbsp;percent being amortized after five years. These projections are based on current estimates for investment, persistency, mortality and morbidity assumptions. The DAC amortization charged to income includes the increase or decrease of amortization for FAS&nbsp;<FONT style="WHITE-SPACE: nowrap">97-related</FONT> realized capital gains (losses), primarily in the Domestic Retirement Services business. In 2007, 2006 and 2005, the rate of amortization expense decreased by $291&nbsp;million, $90&nbsp;million and $46&nbsp;million, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; There were no impairments of DAC or VOBA for the years ended December&nbsp;31, 2007, 2006 and 2005. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>7.&nbsp;Variable Interest Entities</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>FIN&nbsp;46R, &#147;Consolidation of Variable Interest Entities&#148; clarifies the consolidation accounting for certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity that is at risk which would allow the entity to finance its activities without additional subordinated financial support. FIN&nbsp;46R recognizes that consolidation based on majority voting interest should not apply to certain types of entities that are defined as VIEs. A VIE is consolidated by its primary beneficiary, which is the party that absorbs a majority of the expected losses or a majority of the expected residual returns of the VIE, or both. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG, in the normal course of business, is involved with various VIEs. In some cases, AIG has participated to varying degrees in the design of the entity. AIG&#146;s involvement in VIEs varies from being a passive investor to managing and structuring the activities of the VIE. AIG engages in transactions with VIEs to manage its investment needs, obtain funding as well as facilitate client needs through a global network of operating subsidiaries comprising AIG Global Asset Management Holdings Corp. and its subsidiaries and affiliated companies (collectively, AIG Investments) and AIGFP. AIG purchases debt securities (rated and unrated) and equity interests issued by VIEs, makes loans and provides other credit support to VIEs, enters into insurance and reinsurance transactions with VIEs, enters into leasing arrangements with VIEs, enters into derivative transactions with VIEs through AIGFP and acts as the collateral manager of VIEs through AIG Investments and AIGFP. Obligations to outside interest holders in VIEs consolidated by AIG are reported as liabilities in the consolidated financial statements. These interest holders generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to AIG, except when AIG has provided a guarantee to the VIE&#146;s interest holders. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG determines whether an entity is a VIE, who the variable interest holders are, and which party is the primary beneficiary of the VIE by performing an analysis of the design of the VIE that includes a review of, among other factors, its capital structure, contractual relationships and terms, nature of the entity&#146;s operations and purpose, nature of the entity&#146;s interests issued, AIG&#146;s interests in the entity which either create or absorb variability and related party relationships. AIG consolidates a VIE when all of AIG&#146;s interests in the VIE, when combined, absorb a majority of the expected losses or a majority of the expected residual returns of the VIE, or both. Assets held by VIEs which are currently consolidated because AIG is primary beneficiary (except for those VIEs where AIG also owns a majority voting interest), approximated $27.0 billion and $9.1 billion at December 31, 2007 and 2006, respectively. These consolidated assets are reflected in AIG&#146;s consolidated balance sheet as Investments and financial services assets. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to the VIEs that are consolidated in accordance with FIN&nbsp;46R, the Company has significant variable interests in certain other VIEs that are not consolidated because the Company is not the primary beneficiary. AIG applies quantitative and qualitative measures in identifying whether it is a primary beneficiary of a VIE and whether it holds a significant variable interest in a VIE. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For all VIEs in which it has a significant variable interest, including those in which it is the primary beneficiary, AIG reconsiders if it is the current primary beneficiary whenever a VIE&#146;s governing documents or contractual arrangements are changed in a manner that reallocates between the primary beneficiary and other unrelated parties, the obligation to absorb expected losses or right to receive expected residual returns. It also reconsiders its role as primary beneficiary when it sells or otherwise disposes of all or part of its variable interests in a VIE or when it acquires additional variable interests in a VIE. AIG does not reconsider whether it is a primary beneficiary solely as the result of operating losses incurred by an entity. Assets of VIEs where AIG has a significant variable interest and does not consolidate the VIE because AIG is not the primary beneficiary, approximated $275.1&nbsp;billion at December&nbsp;31, 2007. AIG&#146;s maximum exposure to loss from its involvement with these consolidated VIEs approximated $44.6&nbsp;billion at December 31, 2007. For this purpose, maximum loss is considered to be the notional amount of credit lines, guarantees and other credit support, and liquidity facilities, the notional amounts of credit default swaps and certain total return swaps, and the amount invested in the debt or equity issued by the VIEs. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Entities for which AIG is the primary beneficiary and consolidates or in which AIG has a significant variable interest are described below. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Asset Management </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In certain instances, AIG Investments acts as the collateral manager or general partner of an investment fund, collateralized debt obligation (CDO), collateralized loan obligation (CLO), private equity fund or hedge fund. Such entities are typically registered investment companies or qualify for the specialized investment company accounting in accordance with the AICPA Audit and Accounting Guide&nbsp;- Investment Companies. In CDO and CLO transactions, AIG establishes a trust or other special purpose entity that purchases a portfolio of assets such as bank loans, corporate debt, or non-performing credits and issues trust certificates or debt securities that represent interests in the portfolio of assets. These transactions can be cash-based or synthetic and are actively or passively managed. For investment partnerships, hedge funds and private equity funds, AIG acts as the general partner or manager of the fund and is responsible for carrying out the investment mandate of the VIE. Often, AIG&#146;s insurance operations participate in these AIG managed structures as a passive investor in the debt or equity issued by the VIE. Typically, AIG does not provide any guarantees to the investors in the VIE. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG Investments is an investor in various real estate investments. These investments are typically with unaffiliated third-party developers via a partnership or limited liability company structure. Some of these entities are VIEs. The activities of these VIEs principally consist of the development or redevelopment of all major types of commercial (retail, office, industrial, logistics parks, mixed use, etc.) and residential real estate. AIG&#146;s involvement varies from being a passive equity investor to actively managing the activities of the VIE. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to changes in a VIE&#146;s governing documentation or capitalization structure, AIG reconsiders its decision with respect to whether it is the primary beneficiary for these VIEs, when AIG purchases, or when a VIE sells or otherwise disposes of, variable interests in the CDO, CLO, investment, partnership, hedge fund or private equity fund to other unrelated parties. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>SunAmerica Affordable Housing Partnerships </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>SunAmerica Affordable Housing Partners, Inc. (SAAHP)&nbsp;organizes limited partnerships (investment partnerships) that are considered to be VIEs, and that are consolidated by AIG when AIG has determined that it is the primary beneficiary. The investment partnerships invest as limited partners in operating partnerships that develop and operate affordable housing qualifying for federal tax credits and a few market rate properties across the United States. The general partners in the operating partnerships are almost exclusively unaffiliated third-party developers. AIG does not normally consolidate an operating partnership if the general partner is an unaffiliated person. Through approximately 1,200&nbsp;partnerships, SAAHP has invested in developments with approximately 157,000&nbsp;apartment units nationwide, and has syndicated over $7&nbsp;billion in partnership equity since 1991 to other investors who will receive, among other benefits, tax credits under certain sections of the Internal Revenue Code. AIG Retirement Services, Inc. functions as the general partner in certain investment partnerships and acts both as a credit enhancer in certain transactions, through differing structures with respect to funding development costs for the operating partnerships, and as guarantor that investors will receive the tax benefits projected at the time of syndication. AIG Retirement Services, Inc. consolidates these investment partnerships as a result of the guarantee provided to the investors. As part of their incentive compensation, certain key SAAHP employees have been awarded residual cash flow interests in the partnerships, subject to certain vesting requirements. The operating income of SAAHP is reported, along with other SunAmerica partnership income, as a component of AIG&#146;s Asset Management segment. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Insurance Investments </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>As part of its investment activities, AIG&#146;s insurance operations invest in obligations which include debt and equity securities and interests issued by VIEs. These investments include investments in AIG sponsored and non-sponsored investment funds, hedge funds, private equity funds, and structured financing arrangements. The investments in these VIEs allow AIG&#146;s insurance entities to purchase assets permitted by insurance regulations while maximizing their return on these assets. AIG&#146;s insurance operations typically are not involved in the design or establishment of the VIE, nor do they actively participate in the management of the VIE. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In addition to changes in a VIE&#146;s governing documentation or capitalization structure, AIG reconsiders its position as to whether it is the primary beneficiary as the result of investments in these VIEs when AIG purchases or sells VIE issued debt and equity interests to other unrelated parties. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>AIGFP </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The variable interests that AIGFP may hold in VIEs include debt securities, equity interests, loans, derivative instruments and other credit support arrangements. Transactions associated with VIEs include an asset-backed commercial paper conduit, asset securitizations, collateralized debt obligations, investment vehicles and other structured financial transactions. AIGFP engages in these transactions to facilitate client needs for investment purposes and to obtain funding. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP invests in preferred securities issued by VIEs. Additionally, AIGFP establishes VIEs that issue preferred interests to third parties and uses the proceeds to provide financing to AIGFP subsidiaries. In certain instances, AIGFP consolidates these VIEs. Consistent with FIN&nbsp;46R requirements, AIGFP reviews any changes in its holdings of a VIEs preferred stock investment as part of its reconsideration review to determine a VIE&#146;s primary beneficiary. In addition, AIG reviews all changes in such VIEs&#146; governing documentation or capitalization structures as part of the determination of whether there is a change in the VIEs&#146; primary beneficiaries. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP is the primary beneficiary of an asset-backed commercial paper conduit with which it entered into several total return swaps covering all the conduit&#146;s assets that absorb the majority of the expected losses of the entity. The assets of the conduit serve as collateral for the conduit&#146;s obligations. AIGFP is also the primary beneficiary of several structured financing transactions in which AIGFP holds the first loss position either by investing in the equity of the VIE or implicitly through a lending or derivative arrangement. These VIEs are subject to the reconsideration event reviews noted above. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In certain instances, AIGFP enters into liquidity facilities with various SPEs when AIGFP provides liquidity to the SPE in the form of a guarantee, derivative, or a letter of credit and does not consolidate the VIE. AIGFP also executes various swap and option transactions with VIEs. Such contractual arrangements are done in the ordinary course of business. Typically, interest rate derivatives such as interest rate swaps and options executed with VIEs are not deemed to be variable interests or significant variable interests because the underlying is an observable market interest rate and AIGFP as the derivative counterparty to the VIE is senior to the debt and equity holders. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2007, AIGFP sponsored its only structured investment vehicle (SIV)&nbsp;which invests in variable rate, investment-grade debt securities. The SIV is a VIE because is does not have sufficient equity to operate without subordinated capital notes which serve as equity though they are legally debt instruments. The capital notes absorb losses prior to the senior debt. Based on the sale of more than 88&nbsp;percent of its capital notes to unrelated third-party investors and the continued holding by those investors of their capital notes, AIGFP is not the primary beneficiary of the SIV. AIGFP reviews its primary beneficiary position when the governing document or capital structure changes or the amount of senior or capital note holdings change. Based on a change in the governing documents under which AIGFP committed to provide short-term funding to the SIV, as necessary, a quantitative analysis performed under FIN&nbsp;46R as of December&nbsp;31, 2007 showed that AIGFP is not the primary beneficiary. This outcome is a result of the high credit quality of the assets and the fact that 85&nbsp;percent of credit losses, if any, would be shared by other capital note holders. At December&nbsp;31, 2007 assets of this unconsolidated SIV totaled $2.4&nbsp;billion. AIGFP&#146;s invested assets at December&nbsp;31, 2007 included $1.7&nbsp;billion of securities purchased under agreements to resell and commercial paper and medium-term and capital notes issued by this entity. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP has entered into transactions with VIEs that are used, in part, to provide tax planning strategies to investors and/or AIGFP through an enhanced yield investment security. These structures typically provide financing to AIGFP and/or the investor at enhanced rates. AIGFP may be either the primary beneficiary of and consolidate the VIE, or may be a significant variable interest holder in the VIE. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>8.&nbsp;Derivatives and Hedge Accounting</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG uses derivatives and other financial instruments as part of its financial risk management programs and as part of its investment operations. AIGFP also transacts in derivatives as a dealer. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Derivatives, as defined in FAS 133, are financial arrangements among two or more parties with returns linked to or &#147;derived&#148; from some underlying equity, debt, commodity or other asset, liability, or foreign exchange rate or other index or the occurrence of a specified payment event. Derivative payments may be based on interest rates, exchange rates, prices of certain securities, commodities, or financial or commodity indices or other variables. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Unless subject to a scope exclusion, AIG carries all derivatives on the consolidated balance sheet at fair value. The changes in fair value of the derivative transactions of AIGFP are presented as a component of AIG&#146;s operating income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>AIGFP</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIGFP, in the ordinary course of operations and as principal, structures and enters into derivative transactions to meet the needs of counterparties who may be seeking to hedge certain aspects of such counterparties&#146; operations or obtain a desired financial exposure. In most cases AIGFP does not hedge its exposures related to the credit default swaps it has written. AIGFP also enters into derivative transactions to mitigate risk in its exposures (interest rates, currencies, commodities, credit and equities) arising from such transactions. Such instruments are carried at market or fair value, whichever is appropriate, and are reflected on the balance sheet in &#147;Unrealized gain on swaps, options and forward transactions&#148; and &#147;Unrealized loss on swaps, options and forward contracts.&#148; </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Beginning in 2007, AIGFP designated certain interest rate swaps as fair value hedges of the benchmark interest rate risk on certain of its interest bearing financial assets and liabilities. In these hedging relationships, AIG is hedging its fixed rate available for sale securities and fixed rate borrowings. AIGFP also designated foreign currency forward contracts as fair value hedges for changes in spot foreign exchange rates of the non-U.S. dollar denominated available for sale debt securities. Under these strategies, all or portions of individual or multiple derivatives may be designated against a single hedged item. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At inception of each hedging relationship, AIGFP performs and documents its prospective assessments of hedge effectiveness to demonstrate that the hedge is expected to be highly effective. For hedges of interest rate risk, AIGFP uses regression to demonstrate the hedge is highly effective, while it uses the periodic dollar offset method for its foreign currency hedges. AIGFP uses the periodic dollar offset method to assess whether its hedging relationships were highly effective on a retrospective basis. The prospective and retrospective assessments are updated on a daily basis. The passage of time component of the hedging instruments and the forward points on foreign currency hedges are excluded from the assessment of hedge effectiveness and measurement of hedge ineffectiveness. AIGFP does not utilize the shortcut, matched terms or equivalent methods to assess hedge effectiveness. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The change in fair value of the derivative that qualifies under the requirements of FAS 133 as a fair value hedge is recorded in current period earnings along with the gain or loss on the hedged item for the hedged risk. For interest rate hedges, the adjustments to the carrying value of the hedged items are amortized into income using the effective yield method over the remaining life of the hedged item. Amounts excluded from the assessment of hedge effectiveness are recognized in current period earnings. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For the year ended December&nbsp;31, 2007, AIGFP recognized net losses of $0.7&nbsp;million in earnings, representing hedge ineffectiveness, and also recognized net losses of $456&nbsp;million related to the portion of the hedging instruments excluded from the assessment of hedge effectiveness. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP&#146;s derivative transactions involving interest rate swap transactions generally involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying notional amounts. AIGFP typically becomes a principal in the exchange of interest payments between the parties and, therefore, is exposed to counterparty credit risk and may be exposed to loss, if counterparties default. Currency, commodity, and equity swaps are similar to interest rate swaps, but involve the exchange of specific currencies or cashflows based on the underlying commodity, equity securities or indices. Also, they may involve the exchange of notional amounts at the beginning and end of the transaction. Swaptions are options where the holder has the right but not the obligation to enter into a swap transaction or cancel an existing swap transaction. At December&nbsp;31, 2007, the aggregate notional amount of AIGFP&#146;s outstanding swap transactions approximated $2,133&nbsp;billion, primarily related to interest rate swaps of approximately $1,167&nbsp;billion. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP follows a policy of minimizing interest rate, currency, commodity, and equity risks associated with securities available for sale by entering into internal offsetting positions, on a security by security basis within its derivatives portfolio, thereby offsetting a significant portion of the unrealized appreciation and depreciation. In addition, to reduce its credit risk, AIGFP has entered into credit derivative transactions with respect to $82&nbsp;million of securities available for sale to economically hedge its credit risk. As previously discussed, these economic offsets did not meet the hedge accounting requirements of FAS&nbsp;133 and, therefore, are recorded in Other income in the Consolidated Statement of Income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Notional amount represents a standard of measurement of the volume of swaps business of Capital Markets operations. Notional amount is not a quantification of market risk or credit risk and is not recorded on the consolidated balance sheet. Notional amounts generally represent those amounts used to calculate contractual cash flows to be exchanged and are not paid or received, except for certain contracts such as currency swaps. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The timing and the amount of cash flows relating to Capital Markets foreign exchange forwards and exchange traded futures and options contracts are determined by each of the respective contractual agreements. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents the notional amounts by remaining maturity of Capital Markets&#146; interest rate, credit default and currency swaps and swaptions derivatives portfolio at December&nbsp;31, 2007 and 2006:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 4pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="24%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>Remaining Life of Notional Amount*</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=14>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>One</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Two Through</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Six Through</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>After Ten</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>Total</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Year</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Five Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Ten Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B>2007</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest rate swaps</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>441,801</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>554,917</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>156,634</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,112</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,167,464</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,058,279</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Credit default swaps</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>184,924</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>286,069</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>85,792</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,028</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>561,813</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>483,648</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Currency swaps</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38,384</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>135,187</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>41,675</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,029</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>224,275</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>218,091</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Swaptions, equity and commodity swaps</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>57,709</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>62,849</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35,270</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23,139</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>178,967</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>180,040</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>722,818</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,039,022</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>319,371</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>51,308</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>2,132,519</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,940,058</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Notional amount is not representative of either market risk or credit risk and is not recorded in the consolidated balance sheet.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Futures and forward contracts are contracts that obligate the holder to sell or purchase foreign currencies, commodities or financial indices in which the seller/purchaser agrees to make/take delivery at a specified future date of a specified instrument, at a specified price or yield. Options are contracts that allow the holder of the option to purchase or sell the underlying commodity, currency or index at a specified price and within, or at, a specified period of time. As a writer of options, AIGFP generally receives an option premium and then manages the risk of any unfavorable change in the value of the underlying commodity, currency or index by entering into offsetting transactions with third-party market participants. Risks arise as a result of movements in current market prices from contracted prices, and the potential inability of the counterparties to meet their obligations under the contracts. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents Capital Markets futures, forward and option contracts portfolio by maturity and type of derivative at December&nbsp;31, 2007 and 2006:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="31%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=24>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>Remaining Life</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=15>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>One</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Two Through</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Six Through</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>After Ten</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>Total</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Year</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Five Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Ten Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2007</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=24>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Exchange traded futures and options contracts contractual amount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>27,588</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,359</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28,947</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>27,271</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Over the counter forward contracts contractual amount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>485,332</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,864</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,850</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>493,046</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>492,913</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>512,920</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,223</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,850</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>521,993</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>520,184</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>AIGFP Credit Default Swaps</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIGFP enters into credit derivative transactions in the ordinary course of its business. The majority of AIGFP&#146;s credit derivatives require AIGFP to provide credit protection on a designated portfolio of loans or debt securities. AIGFP provides such credit protection on a &#147;second loss&#148; basis, under which AIGFP&#146;s payment obligations arise only after credit losses in the designated portfolio exceed a specified threshold amount or level of &#147;first losses.&#148; The threshold amount of credit losses that must be realized before AIGFP has any payment obligation is negotiated by AIGFP for each transaction to provide that the likelihood of any payment obligation by AIGFP under each transaction is remote. The underwriting process for these derivatives included assumptions of severely stressed recessionary market scenarios to minimize the likelihood of realized losses under these obligations. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In certain cases, the credit risk associated with a designated portfolio is tranched into different layers of risk, which are then analyzed and rated by the credit rating agencies. Typically, there will be an equity layer covering the first credit losses in respect of the portfolio up to a specified percentage of the total portfolio, and then successive layers ranging from generally a BBB-rated layer to one or more AAA-rated layers. In transactions that are rated with respect to the risk layer or tranche that is immediately junior to the threshold level above which AIGFP&#146;s payment obligation would generally arise, a significant majority are rated AAA by the rating agencies. In transactions that are not rated, AIGFP applies the same risk criteria for setting the threshold level for its payment obligations. Therefore, the risk layer assumed by AIGFP with respect to the designated portfolio in these transactions is often called the &#147;super senior&#148; risk layer, defined as the layer of credit risk senior to a risk layer that has been rated AAA by the credit rating agencies, or if the transaction is not rated, equivalent thereto. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <B><FONT color=#002868>At December&nbsp;31, 2007 and 2006, the notional amounts and unrealized market valuation loss of the super senior credit default swap portfolio by asset classes were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="62%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="11%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="17%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B>Notional</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>Unrealized Market</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>Amount</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>Valuation Loss</B></TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>(in billions)</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>(in millions)</B></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Corporate loans<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>230</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prime residential mortgages<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>149</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Corporate Debt/CLOs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>70</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>226</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Multi-sector CDO<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>78</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,246</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>527</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>11,472</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Predominantly represent transactions written to facilitate regulatory capital relief.</I></TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Approximately $61.4&nbsp;billion, in notional amount, of the multi-sector CDO pools includes some exposure to U.S.&nbsp;subprime mortgages.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Approximately $379&nbsp;billion of the $527&nbsp;billion in notional exposure of AIGFP&#146;s super senior credit default swap portfolio as of December&nbsp;31, 2007 represents derivatives written for financial institutions, principally in Europe, for the purpose of providing them with regulatory capital relief rather than risk mitigation. In exchange for a minimum guaranteed fee, the counterparties receive credit protection in respect of portfolios of various debt securities or loans they own, thus improving their regulatory capital position. These derivatives are generally expected to terminate at no additional cost to the counterparty upon the counterparty&#146;s adoption of models compliant with the Basel&nbsp;II Accord. AIG expects that the majority of these transactions will terminate within the next 12 to 18&nbsp;months. As of February&nbsp;26, 2008, approximately $54&nbsp;billion in notional exposures have either been terminated or are in the process of being terminated. AIGFP was not required to make any payments as part of these terminations and in certain cases was paid a fee upon termination. In light of this experience to date and after other comprehensive analyses, AIG did not recognize an unrealized market valuation adjustment for this regulatory capital relief portfolio for the year ended December&nbsp;31, 2007. AIG will continue to assess the valuation of this portfolio and monitor developments in the marketplace. There can be no assurance that AIG will not recognize unrealized market valuation losses from this portfolio in future periods. In addition to writing credit protection on the super senior risk layer on designated portfolios of loans or debt securities, AIGFP also wrote protection on tranches below the super senior risk layer. At December&nbsp;31, 2007 the notional amount of the credit default swaps in the regulatory capital relief portfolio written on tranches below the super senior risk layer was $5.8&nbsp;billion, with an estimated fair value of $(25)&nbsp;million. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP has also written credit protection on the super senior risk layer of diversified portfolios of investment grade corporate debt, collateralized loan obligations (CLOs) and multi-sector CDOs. AIGFP is at risk only on the super senior portion related to a diversified portfolio of credits referenced to loans or debt securities. The super senior risk portion is the last tranche to suffer losses after significant subordination. Credit losses would have to erode all tranches junior to the super senior tranche before AIGFP would suffer any realized losses. The subordination level required for each transaction is determined based on internal modeling and analysis of the pool of underlying assets and is not dependent on ratings determined by the rating agencies. While the credit default swaps written on corporate debt obligations are cash settled, the majority of the credit default swaps written on CDOs and CLOs require physical settlement. Under a physical settlement arrangement, AIGFP would be required to purchase the referenced super senior note obligation at par in the event of a non-payment on that security. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain of these credit derivatives are subject to collateral posting provisions. These provisions differ among counterparties and asset classes. In the case of most of the multi-sector CDO transactions, the amount of collateral required is determined based on the change in value of the underlying cash security that represents the super senior risk layer subject to credit protection, and not the change in value of the super senior credit derivative. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP is indirectly exposed to U.S. residential mortgage subprime collateral in the CDO portfolios, the majority of which is from 2004 and 2005 vintages. However, certain of the CDOs on which AIGFP provided credit protection permit the collateral manager to substitute collateral during the reinvestment period, subject to certain restrictions. As a result, in certain transactions, U.S. residential mortgage subprime collateral of 2006 and 2007 vintages has been added to the collateral pools. At December&nbsp;31, 2007, U.S. residential mortgage subprime collateral of 2006 and 2007 vintages comprised approximately 4.9 percent of the total collateral pools underlying the entire portfolio of CDOs with credit protection. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP has written maturity-shortening puts that allow the holders of the securities issued by certain multi-sector CDOs to treat the securities as eligible short-term 2a-7 investments under the Investment Company Act of 1940 (2a-7 Puts). Holders of securities are permitted, in certain circumstances, to tender their securities to the issuers at par. If an issuer&#146;s remarketing agent is unable to resell the securities so tendered, AIGFP must purchase the securities at par as long as the securities have not experienced a default. During 2007, AIGFP repurchased securities with a principal amount of approximately $754&nbsp;million pursuant to these obligations. In certain transactions, AIGFP has contracted with third parties to provide liquidity for the notes if they are put to AIGFP for up to a three-year period. Such liquidity facilities totaled approximately $3&nbsp;billion at December&nbsp;31, 2007. As of February&nbsp;26, 2008, AIGFP has not utilized these liquidity facilities. At December&nbsp;31, 2007, AIGFP had approximately $6.5&nbsp;billion of notional exposure on 2a-7 Puts, included as part of the multi-sector CDO portfolio discussed herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>As of January&nbsp;31, 2008, a significant majority of AIGFP&#146;s super senior exposures continued to have tranches below AIGFP&#146;s attachment point that have been explicitly rated AAA or, in AIGFP&#146;s judgment, would have been rated AAA had they been rated. AIGFP&#146;s portfolio of credit default swaps undergoes regular monitoring, modeling and analysis and contains protection through collateral subordination. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP accounts for its credit default swaps in accordance with FAS&nbsp;133 &#147;Accounting For Derivative Instruments and Hedging Activities&#148; and Emerging Issues Task Force 02-3, &#147;Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities&#148; (EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3).</FONT> In accordance with EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3,</FONT> AIGFP does not recognize income in earnings at the inception of each transaction because the inputs to value these instruments are not derivable from observable market data. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The valuation of the super senior credit derivatives has become increasingly challenging given the limitation on the availability of market observable information due to the lack of trading and price transparency in the structured finance market, particularly in the fourth quarter of 2007. These market conditions have increased the reliance on management estimates and judgments in arriving at an estimate of fair value for financial reporting purposes. Further, disparities in the valuation methodologies employed by market participants and the varying judgments reached by such participants when assessing volatile markets has increased the likelihood that the various parties to these instruments may arrive at significantly different estimates as to their fair values. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP&#146;s valuation methodologies for the super senior credit default swap portfolio have evolved in response to the deteriorating market conditions and the lack of sufficient market observable information. AIG has sought to calibrate the model to market information and to review the assumptions of the model on a regular basis. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP employs a modified version of the BET model to value its super senior credit default swap portfolio, including the 2a-7 Puts. The BET model utilizes default probabilities derived from credit spreads implied from market prices for the individual securities included in the underlying collateral pools securing the CDOs. AIGFP obtained prices on these securities from the CDO collateral managers. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The BET model also utilizes diversity scores, weighted average lives, recovery rates and discount rates. The determination of some of these inputs require the use of judgment and estimates, particularly in the absence of market observable data. AIGFP also employed a Monte Carlo simulation to assist in quantifying the effect on valuation of the CDO of the unique features of the CDO&#146;s structure such as triggers that divert cash flows to the most senior level of the capital structure. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The credit default swaps written by AIGFP cover only the failure of payment on the super senior CDO security. AIGFP does not own the securities in the CDO collateral pool. The credit spreads implied from the market prices of the securities in the CDO collateral pool incorporate the risk of default (credit risk), the market&#146;s price for liquidity risk and in distressed markets, the risk aversion costs. Spreads on credit derivatives tend to be narrower because, unlike in the case of investing in a bond, there is no need to fund the position (except when an actual credit event occurs). In times of illiquidity, the difference between spreads on cash securities and derivative instruments (the &#147;negative basis&#148;) may be even wider for high quality assets. AIGFP was unable to reliably verify this negative basis due to the accelerating severe dislocation, illiquidity and lack of trading in the asset backed securities market during the fourth quarter of 2007 and early 2008. The valuations produced by the BET model therefore represent the valuations of the underlying super senior CDO cash securities with no recognition of the effect of the basis differential on that valuation. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP also considered the valuation of the super senior CDO securities provided by third parties, including counterparties to these transactions, and made adjustments as necessary. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As described above, AIGFP uses numerous assumptions in determining its best estimate of the fair value of the super senior credit default swap portfolio. The most significant assumption utilized in developing the estimate is the pricing of the securities within the CDO collateral pools. If the actual pricing of the securities within the collateral pools differs from the pricing used in estimating the fair value of the super senior credit default swap portfolio, there is potential for significant variation in the fair value estimate. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In the case of credit default swaps written on investment grade corporate debt and CLOs, AIGFP estimated the value of its obligations by reference to the relevant market indices or third party quotes on the underlying super senior tranches where available. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP monitors the underlying portfolios to determine whether the credit loss experience for any particular portfolio has caused the likelihood of AIGFP having a payment obligation under the transaction to be greater than super senior risk. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Other Derivative Users</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and its subsidiaries (other than AIGFP) also use derivatives and other instruments as part of their financial risk management programs. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with investments in fixed income securities, commercial paper issuances, medium- and long-term note offerings, and other interest rate sensitive assets and liabilities. In addition, foreign exchange derivatives (principally cross currency swaps, forwards and options) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures and foreign exchange transactions. The derivatives are effective economic hedges of the exposures they are meant to offset. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2007, AIG and its subsidiaries other than AIGFP designated certain derivatives as either fair value or cash flow hedges of their debt. The fair value hedges included (i)&nbsp;interest rate swaps that were designated as hedges of the change in the fair value of fixed rate debt attributable to changes in the benchmark interest rate and (ii)&nbsp;foreign currency swaps designated as hedges of the change in fair value of foreign currency denominated debt attributable to changes in foreign exchange rates and/or the benchmark interest rate. With respect to the cash flow hedges, (i)&nbsp;interest rate swaps were designated as hedges of the changes in cash flows on floating rate debt attributable to changes in the benchmark interest rate, and (ii)&nbsp;foreign currency swaps were designated as hedges of changes in cash flows on foreign currency denominated debt attributable to changes in the benchmark interest rate and foreign exchange rates. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG assesses, both at the hedge&#146;s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Regression analysis is employed to assess the effectiveness of these hedges both on a prospective and retrospective basis. AIG does not utilize the shortcut, matched terms or equivalent methods to assess hedge effectiveness. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The change in fair value of derivatives designated and effective as fair value hedges along with the gain or loss on the hedged item are recorded in current period earnings. Upon discontinuation of hedge accounting, the cumulative adjustment to the carrying value of the hedged item resulting from changes in the benchmark interest rate or exchange rate is amortized into income using the effective yield method over the remaining life of the hedged item. Amounts excluded from the assessment of hedge effectiveness are recognized in current period earnings. During the year ended December&nbsp;31, 2007, AIG recognized a loss of $1&nbsp;million in earnings related to the ineffective portion of the hedging instruments. During the year ended December&nbsp;31, 2007, AIG also recognized gains of $3&nbsp;million related to the change in the hedging instruments forward points excluded from the assessment of hedge effectiveness. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The effective portion of the change in fair value of a derivative qualifying as a cash flow hedge is recorded in Accumulated other comprehensive income (loss), until earnings are affected by the variability of cash flows in the hedged item. The ineffective portion of these hedges is recorded in net realized capital gains (losses). During the year ended December&nbsp;31, 2007, AIG recognized gains of $1&nbsp;million in earnings representing hedge ineffectiveness. At December&nbsp;31, 2007, $36&nbsp;million of the deferred net loss in Accumulated other comprehensive income is expected to be recognized in earnings during the next 12&nbsp;months. All components of the derivatives&#146; gains and losses were included in the assessment of hedge effectiveness. There were no instances of the discontinuation of hedge accounting in 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to hedging activities, AIG also uses derivative instruments with respect to investment operations, which include, among other things, credit default swaps, and purchasing investments with embedded derivatives, such as equity linked notes and convertible bonds. All changes in the fair value of these derivatives are recorded in earnings. AIG bifurcates an embedded derivative where: <I>(i)&nbsp;</I>the economic characteristics of the embedded instruments are not clearly and closely related to those of the remaining components of the financial instrument; <I>(ii)&nbsp;</I>the contract that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value; and <I>(iii)&nbsp;</I>a separate instrument with the same terms as the embedded instrument meets the definition of a derivative under FAS&nbsp;133. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>9.&nbsp;Reserve for Losses and Loss Expenses and Future Life Policy Benefits and Policyholders&#146; Contract Deposits</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following analysis provides a reconciliation of the activity in the reserve for losses and loss expenses:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="64%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">At beginning of year:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for losses and loss expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>79,999</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>77,169</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>61,878</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reinsurance recoverable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(17,369</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(19,693</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(14,624</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>62,630</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>57,476</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,254</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign exchange effect</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>955</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>741</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(628</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Acquisitions<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>317</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>55</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses and loss expenses incurred:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Current year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>30,261</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,805</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,426</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prior years, other than accretion of discount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(656</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,680</TD> <TD vAlign=bottom noWrap align=left><I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prior years, accretion of discount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>327</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>300</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(15</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>29,932</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,052</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33,091</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses and loss expenses paid:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Current year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,684</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,368</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,331</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prior years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14,862</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,326</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,910</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>24,546</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23,694</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,241</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">At end of year:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net reserve for losses and loss expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>69,288</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>62,630</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>57,476</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reinsurance recoverable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>16,212</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17,369</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,693</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>85,500</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>79,999</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>77,169</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Reflects the opening balance with respect to the acquisition of W&#252;Ba and the Central Insurance Co., Ltd. in 2007 and 2006, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Includes a fourth quarter charge of $1.8&nbsp;billion resulting from the annual review of General Insurance loss and loss adjustment reserves.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The analysis of the future policy benefits and policyholders&#146; contract deposits liabilities follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="70%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=10><B>At December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Future policy benefits:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Long duration contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135,202</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>120,138</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Short duration contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>866</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>866</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>136,068</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>121,004</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Policyholders&#146; contract deposits:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Annuities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>140,444</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>141,826</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Guaranteed investment contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>25,321</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33,054</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Universal life products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>27,114</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,497</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Variable products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>46,407</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34,821</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Corporate life products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,124</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,083</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other investment contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>17,049</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,983</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>258,459</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>248,264</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Long duration contract liabilities included in future policy benefits, as presented in the preceding table, result primarily from life products. Short duration contract liabilities are primarily accident and health products. The liability for future life policy benefits has been established based upon the following assumptions: </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest rates (exclusive of immediate/terminal funding annuities), which vary by territory, year of issuance and products, range from 1.0&nbsp;percent to 12.5&nbsp;percent within the first 20&nbsp;years. Interest rates on immediate/terminal funding annuities are at a maximum of 11.5&nbsp;percent and grade to not greater than 6.0&nbsp;percent.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Mortality and surrender rates are based upon actual experience by geographical area modified to allow for variations in policy form. The weighted average lapse rate, including surrenders, for individual and group life approximated 5.7&nbsp;percent.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>The portions of current and prior net income and of current unrealized appreciation of investments that can inure to the benefit of AIG are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Participating life business represented approximately 12&nbsp;percent of the gross insurance in force at December&nbsp;31, 2007 and 25&nbsp;percent of gross premiums and other considerations in 2007. The amount of annual dividends to be paid is determined locally by the boards of directors. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The liability for policyholders&#146; contract deposits has been established based on the following assumptions: </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest rates credited on deferred annuities, which vary by territory and year of issuance, range from 1.4&nbsp;percent to, including bonuses, 13.0&nbsp;percent. Less than 1.0&nbsp;percent of the liabilities are credited at a rate greater than 9.0&nbsp;percent. Current declared interest rates are generally guaranteed to remain in effect for a period of one year though some are guaranteed for longer periods. Withdrawal charges generally range from zero&nbsp;percent to 20.0&nbsp;percent grading to zero over a period of zero to 19&nbsp;years.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Domestically, guaranteed investment contracts (GICs) have market value withdrawal provisions for any funds withdrawn other than benefit responsive payments. Interest rates credited generally range from 2.8&nbsp;percent to 9.0&nbsp;percent. The vast majority of these GICs mature within five&nbsp;years.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest rates on corporate life insurance products are guaranteed at 4.0&nbsp;percent and the weighted average rate credited in 2007 was 5.2&nbsp;percent.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>The universal life funds have credited interest rates of 1.0&nbsp;percent to 7.0&nbsp;percent and guarantees ranging from 1.0&nbsp;percent to 5.5&nbsp;percent depending on the year of issue. Additionally, universal life funds are subject to surrender charges that amount to 12.0&nbsp;percent of the aggregate fund balance grading to zero over a period not longer than 20&nbsp;years.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>For variable products and investment contracts, policy values are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units plus any liability for guaranteed minimum death or withdrawal benefits.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain products are subject to experience adjustments. These include group life and group medical products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as revenue, and the unearned portions of the premiums recorded as liabilities. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>10.&nbsp;Variable Life and Annuity Contracts</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG follows American Institute of Certified Public Accountants Statement of Position <FONT style="WHITE-SPACE: nowrap">03-1</FONT> (SOP <FONT style="WHITE-SPACE: nowrap">03-1),</FONT> which requires recognition of a liability for guaranteed minimum death benefits and other living benefits related to variable annuity and variable life contracts as well as certain disclosures for these products. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG reports variable contracts through separate and variable accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities), and the separate account qualifies for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1.</FONT> In some foreign jurisdictions, separate accounts are not legally insulated from general account creditors and therefore do not qualify for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1.</FONT> In such cases, the variable contracts are reported as general account contracts even though the policyholder bears the risks associated with the performance of the assets. AIG also reports variable annuity and life contracts through separate and variable accounts, or general accounts when not qualified for separate account reporting, when AIG contractually guarantees to the contract holder (variable contracts with guarantees) either <I>(a)&nbsp;</I>total deposits made to the contract less any partial withdrawals plus a minimum return (and in minor instances, no minimum returns) (Net Deposits Plus a Minimum Return) or <I>(b)&nbsp;</I>the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary (Highest Contract Value Attained). These guarantees include benefits that are payable in the event of death, annuitization, or, in other instances, at specified dates during the accumulation period. Such benefits are referred to as guaranteed minimum death benefits (GMDB), guaranteed minimum income benefits (GMIB), guaranteed minimum withdrawal benefits (GMWB) and guaranteed minimum account value benefits (GMAV). For AIG, GMDB is by far the most widely offered benefit. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as Separate and variable account assets with an equivalent summary total reported as Separate and variable account liabilities when the separate account qualifies for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1.</FONT> Assets for separate accounts that do not qualify for separate account treatment are reported as trading account assets, and liabilities are included in the respective policyholder liability account of the general account. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenue and changes in liabilities for minimum guarantees are included in incurred policy losses and benefits in the consolidated statement of income. Separate and variable account net investment income, net investment gains and losses, and the related liability changes are offset within the same line item in the consolidated statement of income for those accounts that qualify for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1.</FONT> Net investment income and gains and losses on trading accounts for contracts that do not qualify for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1</FONT> are reported in net investment income and are principally offset by amounts reported in incurred policy losses and benefits. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The vast majority of AIG&#146;s exposure on guarantees made to variable contract holders arises from GMDB. Details concerning AIG&#146;s GMDB exposures at December&nbsp;31, 2007 and 2006 are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="59%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="9%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net Deposits</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plus&nbsp;a&nbsp;Minimum</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Highest Contract</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(dollars in billions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Return</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value Attained</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Account value<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>$66</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>$17</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amount at risk<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Average attained age of contract holders by product</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>38-69&nbsp;years</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>55-72&nbsp;years</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Range of guaranteed minimum return rates</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3-10%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Account value<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$64</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$15</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amount at risk<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Average attained age of contract holders by product</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38-70&nbsp;years</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>56-71&nbsp;years</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Range of guaranteed minimum return rates</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0-10%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Included in Policyholders&#146; contract deposits in the consolidated balance sheet.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Represents the amount of death benefit currently in excess of Account value.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following summarizes GMDB liabilities for guarantees on variable contracts reflected in the general account.</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="72%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at January&nbsp;1</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>406</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>442</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve increase</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>111</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Benefits paid</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(54</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(71</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at December&nbsp;31</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>463</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>406</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The GMDB liability is determined each period end by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. AIG regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The following assumptions and methodology were used to determine the GMDB liability at December&nbsp;31, 2007: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Data used was up to 1,000 stochastically generated investment performance scenarios.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Mean investment performance assumptions ranged from three&nbsp;percent to approximately ten&nbsp;percent depending on the block of business.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Volatility assumptions ranged from eight&nbsp;percent to 23&nbsp;percent depending on the block of business.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Mortality was assumed at between 50&nbsp;percent and 102&nbsp;percent of various life and annuity mortality tables.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>For domestic contracts, lapse rates vary by contract type and duration and ranged from zero percent to 40&nbsp;percent. For</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <TABLE style="FONT-SIZE: 10pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">Japan, lapse rates ranged from zero percent to 20&nbsp;percent depending on the type of contract. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">For domestic contracts, the discount rate ranged from 3.25&nbsp;percent to 11&nbsp;percent. For Japan, the discount rate ranged from two&nbsp;percent to seven&nbsp;percent. </FONT></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to GMDB, AIG&#146;s contracts currently include to a lesser extent GMIB. The GMIB liability is determined each period end by estimating the expected value of the annuitization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. AIG periodically evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG contracts currently include a minimal amount of GMAV and GMWB. GMAV and GMWB are considered to be embedded derivatives and are recognized at fair value through earnings. AIG enters into derivative contracts to economically hedge a portion of the exposure that arises from GMAV and GMWB. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>11.&nbsp;Debt Outstanding</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>At December&nbsp;31, 2007 and 2006, AIG&#146;s total borrowings were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="73%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total long-term borrowings</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>162,935</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>135,316</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Commercial paper and extendible commercial notes</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>13,114</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,363</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total borrowings</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>176,049</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>148,679</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Maturities of Long-term borrowings at December&nbsp;31, 2007, excluding borrowings of consolidated investments, are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="29%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=29>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2008</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2009</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2010</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2011</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2012</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>Thereafter</I></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=29>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,588</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,591</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,441</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,349</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>450</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>27</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>9,730</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Junior subordinated debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,809</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,809</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Loans and mortgages payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>729</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>627</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>102</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">MIP matched notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,267</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,218</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,309</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,188</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,039</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,313</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Series&nbsp;AIGFP matched notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>874</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>65</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>77</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>32</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>56</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>619</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total AIG</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,267</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,736</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,690</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,663</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,122</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21,573</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGFP:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">GIAs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,908</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,370</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,831</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,127</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>581</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>660</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,339</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,676</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23,670</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,522</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>431</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>403</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,885</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,765</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Loans and mortgages payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,384</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>160</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,224</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Hybrid financial instrument liabilities<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,479</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,581</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>425</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,739</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>693</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>332</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,709</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total AIGFP</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>65,447</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>31,621</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,778</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,297</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,677</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,037</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17,037</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGLH notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>797</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>499</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>298</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities connected to trust preferred stock</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,435</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,435</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">ILFC<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,111</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,065</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,978</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,808</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,021</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,531</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,708</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Junior subordinated debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>999</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>999</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Export credit facility<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,542</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>522</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>470</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>356</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>266</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>237</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>691</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bank financings</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,084</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>471</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>103</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>160</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>325</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total ILFC</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26,736</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,612</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,919</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,267</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,447</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,093</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,398</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AGF<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,369</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,085</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,108</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,902</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,073</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,001</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Junior subordinated debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>349</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>349</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total AGF</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,718</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,085</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,108</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,902</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,073</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,350</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGCFG Loans and mortgages payable <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,839</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,000</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>542</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>225</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>54</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other subsidiaries<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>775</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>90</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>685</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>156,014</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>43,891</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>18,083</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,178</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,700</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>13,332</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>53,830</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Represents structured notes issued by AIGFP that are accounted for at fair value.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>AIG does not guarantee these borrowings.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)&nbsp;</I></TD> <TD align=left><I>Reflects future minimum payment for ILFC&#146;s borrowing under Export Credit Facilities.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Commercial Paper:</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>At December&nbsp;31, 2007, the commercial paper issued and outstanding was as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="52%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=20>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=5>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unamortized</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Discount</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Average</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Average</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Book</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and Accrued</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Face</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Interest</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Maturity</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(dollars in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Interest</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amount</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Rate</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>in Days</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=20>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">ILFC</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>16</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,499</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.63</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AGF</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,607</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,617</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.85</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG Funding</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,222</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,237</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>29</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGCC&nbsp;&#151; Taiwan<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>151</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>151</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>42</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGF&nbsp;&#151; Thailand<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>136</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>137</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3.36</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=21>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,599</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>42</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,641</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=21>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Issued in local currencies at prevailing local interest rates.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Excludes $321&nbsp;million of borrowings of consolidated investments and $194&nbsp;million of extendible commercial notes.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, AIG did not guarantee the commercial paper of any of its subsidiaries other than AIG Funding. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;AIG Borrowings:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(i)&nbsp;Notes and bonds issued by AIG:</FONT> AIG maintains a medium-term note program under its shelf registration statement. At December&nbsp;31, 2007, approximately $7.3&nbsp;billion principal amount of senior notes were outstanding under the medium-term note program, of which $3.2&nbsp;billion was used for AIG&#146;s general corporate purposes, $873&nbsp;million was used by AIGFP and $3.2&nbsp;billion was used to fund the Matched Investment Program (MIP). The maturity dates of these notes range from 2008 to 2052. To the extent deemed appropriate, AIG may enter into swap transactions to manage its effective borrowing rates with respect to these notes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG also maintains a Euro medium-term note program under which an aggregate nominal amount of up to $20.0&nbsp;billion of senior notes may be outstanding at any one time. At December&nbsp;31, 2007, the equivalent of $12.7&nbsp;billion of notes were outstanding under the program, of which $9.8&nbsp;billion were used to fund the MIP and the remainder was used for AIG&#146;s general corporate purposes. The aggregate amount outstanding includes a $1.1&nbsp;billion loss resulting from foreign exchange translation into U.S.&nbsp;dollars, of which a $332&nbsp;million loss relates to notes issued by AIG for general corporate purposes and a $726&nbsp;million loss relates to notes issued to fund the MIP. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; During 2007, AIG issued in Rule&nbsp;144A offerings an aggregate of $3.0&nbsp;billion principal amount of senior notes, of which $650&nbsp;million was used to fund the MIP and $2.3&nbsp;billion was used for AIG&#146;s general corporate purposes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG maintains a shelf registration statement in Japan, providing for the issuance of up to Japanese Yen 300&nbsp;billion principal amount of senior notes, of which the equivalent of $450&nbsp;million was outstanding at December&nbsp;31, 2007, and was used for AIG&#146;s general corporate purposes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(ii)&nbsp;Junior subordinated debt:</FONT> During 2007, AIG issued an aggregate of $5.6&nbsp;billion of junior subordinated debentures in five series of securities. Substantially all of the proceeds from these sales, net of expenses, are being used to repurchase shares of AIG&#146;s common stock. In connection with each series of junior subordinated debentures, AIG entered into a Replacement Capital Covenant (RCC) for the benefit of the holders of AIG&#146;s 6.25&nbsp;percent senior notes due 2036. The RCCs provide that AIG will not repay, redeem, or purchase the applicable series of junior subordinated debentures on or before a specified date, unless AIG has received qualifying proceeds from the sale of replacement capital securities. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(c)&nbsp;AIGFP Borrowings:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(i)&nbsp;Borrowings under Obligations of Guaranteed Investment Agreements:</FONT> Borrowings under obligations of guaranteed investment agreements (GIAs), which are guaranteed by AIG, are recorded at the amount outstanding under each contract. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity, and range up to 9.8&nbsp;percent. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Funds received from GIA borrowings are invested in a diversified portfolio of securities and derivative transactions. At December&nbsp;31, 2007, the fair value of securities pledged as collateral with respect to these obligations approximated $14.5&nbsp;billion. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(ii)&nbsp;Notes and Bonds issued by AIGFP: </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>At December&nbsp;31, 2007, AIGFP&#146;s notes and bonds outstanding, the proceeds of which are invested in a diversified portfolio of securities and derivative transactions, were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="19%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="49%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=7>Range of</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Dollar</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=3>Maturities</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Range of</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Carrying</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(dollars in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=left>Currency</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Interest Rates</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2054</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>U.S.&nbsp;dollar</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.26&nbsp;-&nbsp;9.00</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>29,490</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2049</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Euro</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.25&nbsp;-&nbsp;6.53</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,819</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>United Kingdom pound</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.67&nbsp;-&nbsp;6.31</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,936</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2037</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Japanese Yen</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01&nbsp;-&nbsp;2.9</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,025</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2024</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Swiss francs</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>512</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>New Zealand dollar</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8.35</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>386</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2009&nbsp;-&nbsp;2017</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Australian dollar</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.14&nbsp;-&nbsp;2.65</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>177</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2017</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Other</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.39&nbsp;-&nbsp;4.95</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>194</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=11>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,539</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=11>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP economically hedges its notes and bonds. AIG guarantees all of AIGFP&#146;s debt. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(iii)&nbsp;Hybrid financial instrument liabilities:</FONT> AIGFP&#146;s notes and bonds include structured debt instruments whose payment terms are linked to one or more financial or other indices (such as an equity index or commodity index or another measure that is not considered to be clearly and closely related to the debt instrument). These notes contain embedded derivatives that otherwise would be required to be accounted for separately under FAS&nbsp;133. Upon AIG&#146;s early adoption of FAS&nbsp;155, AIGFP elected the fair value option for these notes. The notes that are accounted for using the fair value option are reported separately under hybrid financial instrument liabilities at fair value. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(d)&nbsp;AIGLH Borrowings:</B><FONT style="FONT-SIZE: 8.5pt"> At December&nbsp;31, 2007, AIGLH notes aggregating $797&nbsp;million were outstanding with maturity dates ranging from 2010 to 2029 at interest rates from 6.625&nbsp;percent to 7.50&nbsp;percent. AIG guarantees the notes and bonds of AIGLH. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(e)&nbsp;Liabilities Connected to Trust&nbsp;Preferred Stock:</B><FONT style="FONT-SIZE: 8.5pt"> AIGLH issued Junior Subordinated Debentures (liabilities)&nbsp;to certain trusts established by AIGLH, which represent the sole assets of the trusts. The trusts have no independent operations. The trusts issued mandatory redeemable preferred stock to investors. The interest terms and payment dates of the liabilities correspond to those of the preferred stock. AIGLH&#146;s obligations with respect to the liabilities and related agreements, when taken together, constitute a full and unconditional guarantee by AIGLH of payments due on the preferred securities. AIG guarantees the obligations of AIGLH with respect to these liabilities and related agreements. The liabilities are redeemable, under certain conditions, at the option of AIGLH on a proportionate basis. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, the preferred stock outstanding consisted of $300&nbsp;million liquidation value of 8.5&nbsp;percent preferred stock issued by American General Capital&nbsp;II in June 2000, $500&nbsp;million liquidation value of 8.125&nbsp;percent preferred stock issued by American General Institutional Capital B in March 1997, and $500&nbsp;million liquidation value of 7.57&nbsp;percent preferred stock issued by American General Institutional Capital A in December 1996. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B>(f)&nbsp;ILFC Borrowings:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(i)&nbsp;Notes and Bonds issued by ILFC:</FONT> At December&nbsp;31, 2007, notes aggregating $23.1&nbsp;billion were outstanding, consisting of $10.8&nbsp;billion of term notes, $11.3&nbsp;billion of medium-term notes with maturities ranging from 2008 to 2014 and interest rates ranging from 2.75&nbsp;percent to 5.75&nbsp;percent and $1.0&nbsp;billion of junior subordinated debt as discussed below. Notes aggregating $5.3&nbsp;billion are at floating interest rates and the remainder are at fixed rates. To the extent deemed appropriate, ILFC may enter into swap transactions to manage its effective borrowing rates with respect to these notes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a well-known seasoned issuer, ILFC has filed an automatic shelf registration statement with the SEC allowing ILFC immediate access to the U.S.&nbsp;public debt markets. At December&nbsp;31, 2007, $4.7&nbsp;billion of debt securities had been issued under this registration statement and $5.9&nbsp;billion had been issued under a prior registration statement. In addition, ILFC has a Euro medium term note program for $7.0&nbsp;billion, under which $3.8&nbsp;billion in notes were outstanding at December&nbsp;31, 2007. Notes issued under the Euro medium-term note program are included in ILFC notes and bonds payable in the preceding table of borrowings. The cumulative foreign exchange adjustment loss for the foreign currency denominated debt was $969&nbsp;million at December&nbsp;31, 2007 and $733&nbsp;million at December&nbsp;31, 2006. ILFC has substantially eliminated the currency exposure arising from foreign currency denominated notes by economically hedging the portion of the note exposure not already offset by <FONT style="WHITE-SPACE: nowrap">Euro-denominated</FONT> operating lease payments. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(ii)&nbsp;Junior subordinated debt: </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In December 2005, ILFC issued two tranches of junior subordinated debt totaling $1.0&nbsp;billion to underlie trust preferred securities issued by a trust sponsored by ILFC. Both tranches mature on December&nbsp;21, 2065, but each tranche has a different call option. The $600&nbsp;million tranche has a call date of December&nbsp;21, 2010 and the $400&nbsp;million tranche has a call date of December&nbsp;21, 2015. The note with the 2010 call date has a fixed interest rate of 5.90&nbsp;percent for the first five years. The note with the 2015 call date has a fixed interest rate of 6.25&nbsp;percent for the first ten years. Both tranches have interest rate adjustments if the call option is not exercised. The new interest rate is a floating quarterly reset rate based on the initial credit spread plus the highest of (i)&nbsp;3&nbsp;month LIBOR, (ii)&nbsp;<FONT style="WHITE-SPACE: nowrap">10-year</FONT> constant maturity treasury and (iii)&nbsp;<FONT style="WHITE-SPACE: nowrap">30-year</FONT> constant maturity treasury. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(iii)&nbsp;Export credit facility:</FONT> ILFC had a $4.3&nbsp;billion Export Credit Facility (ECA)&nbsp;for use in connection with the purchase of approximately 75 aircraft delivered through 2001. This facility was guaranteed by various European Export Credit Agencies. The interest rate varies from 5.75&nbsp;percent to 5.90&nbsp;percent on these amortizing ten-year borrowings depending on the delivery date of the aircraft. At December&nbsp;31, 2007, ILFC had $664 million outstanding under this facility. The debt is collateralized by a pledge of the shares of a subsidiary of ILFC, which holds title to the aircraft financed under the facility. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In May 2004, ILFC entered into a similarly structured ECA for up to a maximum of $2.6&nbsp;billion for Airbus aircraft to be delivered through May&nbsp;31, 2005. The facility was subsequently increased to $3.6&nbsp;billion and extended to include aircraft to be delivered through May&nbsp;31, 2008. The facility becomes available as the various European Export Credit Agencies provide their guarantees for aircraft based on a six-month forward-looking calendar, and the interest rate is determined through a bid process. At December&nbsp;31, 2007, ILFC had $1.9 billion outstanding under this facility. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(iv)&nbsp;Bank Financings:</FONT> From time to time, ILFC enters into various bank financings. At December&nbsp;31, 2007, the total funded amount was $1.1 billion. The financings mature through 2012. AIG does not guarantee any of the debt obligations of ILFC. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(g)&nbsp;AGF Borrowings:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(i)&nbsp;Notes and bonds issued by AGF:</FONT> At December&nbsp;31, 2007, notes and bonds aggregating $22.4&nbsp;billion were outstanding with maturity dates ranging from 2008 to 2031 at interest rates ranging from 1.94&nbsp;percent to 8.45&nbsp;percent. To the extent deemed appropriate, AGF may enter into swap transactions to manage its effective borrowing rates with respect to these notes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a well-known seasoned issuer, AGF has filed an automatic shelf registration statement with the SEC allowing AGF immediate access to the U.S.&nbsp;public debt markets. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AGF uses the proceeds from the issuance of notes and bonds for the funding of its finance receivables. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left>(ii)&nbsp;Junior subordinated debt: In January 2007, AGF issued junior subordinated debentures in an aggregate principal amount of $350&nbsp;million that mature in January 2067. The debentures underlie a series of trust preferred securities sold by a trust sponsored by AGF in a Rule&nbsp;144A/ Regulation&nbsp;S offering. AGF can redeem the debentures at par beginning in January 2017. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG does not guarantee any of the debt obligations of AGF. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(h)&nbsp;Other Notes, Bonds, Loans and Mortgages Payable at December&nbsp;31, 2007, consisted of the following:</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="59%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="9%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Uncollateralized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Collateralized</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Notes/Bonds/Loans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Loans and</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Payable</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Mortgages Payable</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGCFG</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,839</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>729</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>600</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>175</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,168</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>175</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(i)&nbsp;Interest Expense for All Indebtedness:</B><FONT style="FONT-SIZE: 8.5pt"> Total interest expense for all indebtedness, net of capitalized interest, aggregated $9.69 billion in 2007, $6.95&nbsp;billion in 2006 and $5.7&nbsp;billion in 2005. Capitalized interest was $37 million in 2007, $59&nbsp;million in 2006 and $64&nbsp;million in 2005. Cash distributions on the preferred shareholders&#146; equity in subsidiary companies of ILFC and liabilities connected to trust preferred stock of AIGLH subsidiaries are accounted for as interest expense in the consolidated statement of income. The cash distributions for ILFC were approximately $5&nbsp;million for each of the years ended December&nbsp;31, 2007, 2006 and 2005. The cash distributions for AIGLH subsidiaries were approximately $107 million, $107&nbsp;million and $112&nbsp;million for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively. </FONT></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>12.&nbsp;Commitments, Contingencies and Guarantees</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In the normal course of business, various commitments and contingent liabilities are entered into by AIG and certain of its subsidiaries. In addition, AIG guarantees various obligations of certain subsidiaries. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Litigation and Investigations</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Litigation Arising from Operations.</I> AIG and its subsidiaries, in common with the insurance and financial services industries in general, are subject to litigation, including claims for punitive damages, in the normal course of their business. In AIG&#146;s insurance operations, litigation arising from claims settlement activities is generally considered in the establishment of AIG&#146;s reserve for losses and loss expenses. However, the potential for increasing jury awards and settlements makes it difficult to assess the ultimate outcome of such litigation. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Litigation Arising from Insurance Operations&nbsp;&#151; Caremark.</I> AIG and certain of its subsidiaries have been named defendants in two putative class actions in state court in Alabama that arise out of the 1999 settlement of class and derivative litigation involving Caremark Rx, Inc. (Caremark). The plaintiffs in the second-filed action have intervened in the first-filed action, and the second-filed action has been dismissed. An excess policy issued by a subsidiary of AIG with respect to the 1999 litigation was expressly stated to be without limit of liability. In the current actions, plaintiffs allege that the judge approving the 1999 settlement was misled as to the extent of available insurance coverage and would not have approved the settlement had he known of the existence and/or unlimited nature of the excess policy. They further allege that AIG, its subsidiaries, and Caremark are liable for fraud and suppression for misrepresenting and/or concealing the nature and extent of coverage. In addition, the intervenor-plaintiffs allege that various lawyers and law firms who represented parties in the underlying class and derivative litigation (the &#147;Lawyer Defendants&#148;) are also liable for fraud and suppression, misrepresentation, and breach of fiduciary duty. The complaints filed by the plaintiffs and the intervenor-plaintiffs request compensatory damages for the 1999 class in the amount of $3.2&nbsp;billion, plus punitive damages. AIG and its subsidiaries deny the allegations of fraud and suppression and have asserted that information concerning the excess policy was publicly disclosed months prior to the approval of the settlement. AIG and its subsidiaries further assert that the current claims are barred by the statute of limitations and that plaintiffs&#146; assertions that the statute was tolled cannot stand against the public disclosure of the excess coverage. The plaintiffs and intervenor-plaintiffs, in turn, have asserted that the disclosure was insufficient to inform them of the nature of the coverage and did not start the running of the statute of limitations. On November&nbsp;26, 2007, the trial court issued an order that dismissed the intervenors&#146; complaint against the Lawyer Defendants and entered a final judgment in favor of the Lawyer Defendants. The intervenors are appealing the dismissal of the Lawyer Defendants and have requested a stay of all trial court proceedings pending the appeal. If the motion to stay is granted, no further proceedings at the trial court level will occur until the appeal is resolved. If the motion to stay is denied, the next step will be to proceed with class discovery so that the trial court can determine, under standards mandated by the Alabama Supreme Court, whether the action should proceed as a class action. AIG cannot reasonably estimate either the likelihood of its prevailing in these actions or the potential damages in the event liability is determined. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Litigation Arising from Insurance Operations&nbsp;&#151; Gunderson.</I> A subsidiary of AIG has been named as a defendant in a putative class action lawsuit in the 14th&nbsp;Judicial District Court for the State of Louisiana. The <I>Gunderson </I>complaint alleges failure to comply with certain provisions of the Louisiana Any Willing Provider Act (the Act) relating to discounts taken by defendants on bills submitted by Louisiana medical providers and hospitals that provided treatment or services to workers compensation claimants and seeks monetary penalties and injunctive relief. On July&nbsp;20, 2006, the court denied defendants&#146; motion for summary judgment and granted plaintiffs&#146; partial motion for summary judgment, holding that the AIG subsidiary was a &#147;group purchaser&#148; and, therefore, potentially subject to liability under the Act. On November&nbsp;28, 2006, the court issued an order certifying a class of providers and hospitals. In an unrelated action also arising under the Act, a Louisiana appellate court ruled that the district court lacked jurisdiction to adjudicate the claims at issue. In response, defendants in <I>Gunderson </I>filed an exception for lack of subject matter jurisdiction. On January&nbsp;19, 2007, the court denied the motion, holding that it has jurisdiction over the putative class claims. The AIG subsidiary has appealed the class certification and jurisdictional rulings. While the appeal was pending, the AIG subsidiary settled the lawsuit. On January&nbsp;25, 2008, plaintiffs and the AIG subsidiary agreed to resolve the lawsuit on a class-wide basis for approximately $29&nbsp;million. The court has preliminarily approved the settlement and will hold a final approval hearing on May&nbsp;29, 2008. In the event that the settlement is not finally approved, AIG believes that it has meritorious defenses to plaintiffs&#146; claims and expects that the ultimate resolution of this matter will not have a material adverse effect on AIG&#146;s consolidated financial condition or results of operations for any period. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>2006 Regulatory Settlements.</I> In February 2006, AIG reached a resolution of claims and matters under investigation with the United States Department of Justice (DOJ), the Securities and Exchange Commission (SEC), the Office of the New York Attorney General (NYAG)&nbsp;and the New York State Department of Insurance (DOI). AIG recorded an after-tax charge of $1.15&nbsp;billion relating to these settlements in the fourth quarter of 2005. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The settlements resolved investigations conducted by the SEC, NYAG and DOI in connection with the accounting, financial reporting and insurance brokerage practices of AIG and its subsidiaries, as well as claims relating to the underpayment of certain workers compensation premium taxes and other assessments. These settlements did not, however, resolve investigations by regulators from other states into insurance brokerage practices related to contingent commissions and other broker-related conduct, such as alleged bid rigging. Nor did the settlements resolve any obligations that AIG may have to state guarantee funds in connection with any of these matters. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a result of these settlements, AIG made payments or placed amounts in escrow in 2006 totaling approximately $1.64&nbsp;billion, $225&nbsp;million of which represented fines and penalties. Amounts held in escrow totaling $347&nbsp;million, including interest thereon, are included in other assets at December&nbsp;31, 2007. At that date, approximately $330&nbsp;million of the funds were escrowed for settlement of claims resulting from the underpayment by AIG of its residual market assessments for workers compensation. On May&nbsp;24, 2007, The National Workers Compensation Reinsurance Pool, on behalf of its participant members, filed a lawsuit against AIG with respect to the underpayment of such assessments. On August&nbsp;6, 2007, the court denied AIG&#146;s motion seeking to dismiss or stay the complaint based on <I>Colorado River</I> abstention or <I>forum non conveniens</I>, or in the alternative, to transfer to the Southern District of New York. On December&nbsp;26, 2007, the court denied AIG&#146;s motion to dismiss the complaint. AIG filed its answer on January&nbsp;22, 2008. On February&nbsp;5, 2008, following agreement of the parties, the court entered an order staying all proceedings through March&nbsp;3, 2008. In addition, a similar lawsuit filed by the Minnesota Workers Compensation Reinsurance Association and the Minnesota Workers Compensation Insurers Association is pending. On August&nbsp;6, 2007, AIG moved to dismiss the complaint and that motion is <I>sub judice</I>. A purported class action was filed in South Carolina Federal Court on January&nbsp;25, 2008 against AIG and certain of its subsidiaries, on behalf of a class of employers that obtained workers compensation insurance from AIG companies and allegedly paid inflated premiums as a result of AIG&#146;s alleged underreporting of workers compensation premiums. AIG cannot currently estimate whether the amount ultimately required to settle these claims will exceed the funds escrowed or otherwise accrued for this purpose. AIG has settled litigation that was filed by the Minnesota Attorney General with respect to claims by the Minnesota Department of Revenue and the Minnesota Special Compensation Fund. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The National Association of Insurance Commissioners has formed a Market Analysis Working Group directed by the State of Indiana, which has commenced its own investigation into the underreporting of workers compensation premium. In early 2008, AIG was informed that the Market Analysis Working Group had been disbanded in favor of a multi-state targeted market conduct exam focusing on worker&#146;s compensation insurance. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The remaining escrowed funds, which amounted to $17&nbsp;million at December&nbsp;31, 2007, are set aside for settlements for certain specified AIG policyholders. As of February&nbsp;20, 2008, eligible policyholders entitled to receive approximately $359&nbsp;million (or 95&nbsp;percent) of the excess casualty fund had opted to receive settlement payments in exchange for releasing AIG and its subsidiaries from liability relating to certain insurance brokerage practices. Amounts remaining in the excess casualty fund may be used by AIG to settle claims from other policyholders relating to such practices through February&nbsp;29, 2008 (originally set for January&nbsp;31, 2008 and later extended), after which they will be distributed pro rata to participating policyholders. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to the escrowed funds, $800&nbsp;million was deposited into a fund under the supervision of the SEC as part of the settlements to be available to resolve claims asserted against AIG by investors, including the shareholder lawsuits described herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Also, as part of the settlements, AIG agreed to retain, for a period of three years, an independent consultant to conduct a review that will include, among other things, the adequacy of AIG&#146;s internal control over financial reporting, the policies, procedures and effectiveness of AIG&#146;s regulatory, compliance and legal functions and the remediation plan that AIG has implemented as a result of its own internal review. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Other than as described above, at the current time, AIG cannot predict the outcome of the matters described above, or estimate any potential additional costs related to these matters. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Private Litigation</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Securities Actions.</I> Beginning in October 2004, a number of putative securities fraud class action suits were filed against AIG and consolidated as <I>In re American International Group, Inc.</I>&nbsp;Securities Litigation. Subsequently, a separate, though similar, securities fraud action was also brought against AIG by certain Florida pension funds. The lead plaintiff in the class action is a group of public retirement systems and pension funds benefiting Ohio state employees, suing on behalf of themselves and all purchasers of AIG&#146;s publicly traded securities between October&nbsp;28, 1999 and April&nbsp;1, 2005. The named defendants are AIG and a number of present and former AIG officers and directors, as well as Starr, SICO, General Reinsurance Corporation, and PricewaterhouseCoopers LLP (PwC), among others. The lead plaintiff alleges, among other things, that AIG: (1)&nbsp;concealed that it engaged in anti-competitive conduct through alleged payment of contingent commissions to brokers and participation in illegal bid-rigging; (2)&nbsp;concealed that it used &#147;income smoothing&#148; products and other techniques to inflate its earnings; (3)&nbsp;concealed that it marketed and sold &#147;income smoothing&#148; insurance products to other companies; and (4)&nbsp;misled investors about the scope of government investigations. In addition, the lead plaintiff alleges that AIG&#146;s former Chief Executive Officer manipulated AIG&#146;s stock price. The lead plaintiff asserts claims for violations of Sections&nbsp;11 and 15 of the Securities Act of 1933, Section&nbsp;10(b) of the Exchange Act, and Rule&nbsp;<FONT style="WHITE-SPACE: nowrap">10b-5</FONT> promulgated thereunder, Section&nbsp;20(a) of the Exchange Act, and Section&nbsp;20A of the Exchange Act. In April 2006, the court denied the defendants&#146; motions to dismiss the second amended class action complaint and the Florida complaint. In December 2006, a third amended class action complaint was filed, which does not differ substantially from the prior complaint. Fact and class discovery is currently ongoing. On February&nbsp;20, 2008, the lead plaintiff filed a motion for class certification. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>ERISA Action.</I> Between November&nbsp;30, 2004 and July&nbsp;1, 2005, several Employee Retirement Income Security Act of 1974 (ERISA)&nbsp;actions were filed on behalf of purported class of participants and beneficiaries of three pension plans sponsored by AIG or its subsidiaries. A consolidated complaint filed on September&nbsp;26, 2005 alleges a class period between September&nbsp;30, 2000 and May&nbsp;31, 2005 and names as defendants AIG, the members of AIG&#146;s Retirement Board and the Administrative Boards of the plans at issue, and four present or former members of AIG&#146;s Board of Directors. The factual allegations in the complaint are essentially identical to those in the securities actions described above. The parties have reached an agreement in principle to settle this matter for an amount within AIG&#146;s insurance coverage limits. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Securities Action&nbsp;&#151; Oregon State Court.</I> On February&nbsp;27,&nbsp;2008, The State of Oregon, by and through the Oregon State Treasurer, and the Oregon Public Employee Retirement Board, on behalf of the Oregon Public Employee Retirement Fund, filed a lawsuit against American International Group, Inc. for damages arising out of plaintiffs&#146; purchase of AIG common stock at prices that allegedly were inflated. Plaintiffs allege, among other things, that AIG: (1) made false and misleading statements concerning its accounting for a $500&nbsp;million transaction with General Re; (2)&nbsp;concealed that it marketed and misrepresented its control over off-shore entities in order to improve financial results; (3)&nbsp;improperly accounted for underwriting losses as investment losses in connection with transactions involving CAPCO Reinsurance Company, Ltd. and Union Excess; (4) misled investors about the scope of government investigations; and (5) engaged in market manipulation through its then Chairman and CEO Maurice&nbsp;R. Greenburg. The complaint asserts claims for violations of Oregon Securities Law, and seeks compensatory damages in an amount in excess of $15&nbsp;million, and prejudgment interest and costs and fees. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Derivative Actions&nbsp;&#151; Southern District of New York.</I> On November&nbsp;20, 2007, two purported shareholder derivative actions were filed in the Southern District of New York naming as defendants the current directors of AIG and certain senior officers of AIG and its subsidiaries. Plaintiffs assert claims for breach of fiduciary duty, waste of corporate assets and unjust enrichment, as well as violations of Section&nbsp;10(b) of the Exchange Act and Rule&nbsp;<FONT style="WHITE-SPACE: nowrap">10b-5</FONT> promulgated thereunder, and Section&nbsp;20(a) of the Exchange Act, among other things, in connection with AIG&#146;s public disclosures regarding its exposure to what the lawsuits describe as the subprime market crisis. The actions were consolidated as <I>In re American International Group, Inc. 2007 Derivative Litigation</I>. On February&nbsp;15, 2008, plaintiffs filed a consolidated amended complaint alleging the same causes of action. AIG may become subject to litigation with respect to these or similar issues. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Between October&nbsp;25, 2004 and July&nbsp;14, 2005, seven separate derivative actions were filed in the Southern District of New York, five of which were consolidated into a single action. The New York derivative complaint contains nearly the same types of allegations made in the securities fraud and ERISA actions described above. The named defendants include current and former officers and directors of AIG, as well as Marsh&nbsp;&amp; McLennan Companies, Inc. (Marsh), SICO, Starr, ACE Limited and subsidiaries (ACE), General Reinsurance Corporation, PwC, and certain employees or officers of these entity defendants. Plaintiffs assert claims for breach of fiduciary duty, gross mismanagement, waste of corporate assets, unjust enrichment, insider selling, auditor breach of contract, auditor professional negligence and disgorgement from AIG&#146;s former Chief Executive Officer and Chief Financial Officer of incentive-based compensation and AIG share proceeds under Section&nbsp;304 of the Sarbanes-Oxley Act, among others. Plaintiffs seek, among other things, compensatory damages, corporate governance reforms, and a voiding of the election of certain AIG directors. AIG&#146;s Board of Directors has appointed a special committee of independent directors (special committee) to review the matters asserted in the operative consolidated derivative complaint. The court has entered an order staying the derivative case in the Southern District of New York pending resolution of the consolidated derivative action in the Delaware Chancery Court (discussed below). The court also has entered an order that termination of certain named defendants from the Delaware derivative action applies to the New York derivative action without further order of the court. On October&nbsp;17, 2007, plaintiffs and those AIG officer and director defendants against whom the shareholder plaintiffs in the Delaware action are no longer pursuing claims filed a stipulation providing for all claims in the New York action against such defendants to be dismissed with prejudice. Former directors and officers Maurice R. Greenberg and Howard I. Smith have asked the court to refrain from so ordering this stipulation. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Derivative Actions&nbsp;&#151;&nbsp;Delaware Chancery Court.</I> From October 2004 to April 2005, AIG shareholders filed five derivative complaints in the Delaware Chancery Court. All of these derivative lawsuits were consolidated into a single action as <I>In re American International Group, Inc. Consolidated Derivative Litigation</I>. The amended consolidated complaint named 43 defendants (not including nominal defendant AIG) who, like the New York consolidated derivative litigation, were current and former officers and directors of AIG, as well as other entities and certain of their current and former employees and directors. The factual allegations, legal claims and relief sought in the Delaware action are similar to those alleged in the New York derivative actions, except that shareholder plaintiffs in the Delaware derivative action assert claims only under state law. Earlier in 2007, the Court approved an agreement that AIG be realigned as plaintiff, and, on June&nbsp;13, 2007, acting on the direction of the special committee, AIG filed an amended complaint against former directors and officers Maurice R. Greenberg and Howard I. Smith, alleging breach of fiduciary duty and indemnification. Also on June&nbsp;13, 2007, the special committee filed a motion to terminate the litigation as to certain defendants, while taking no action as to others. Defendants Greenberg and Smith filed answers to AIG&#146;s complaint and brought third-party complaints against certain current and former AIG directors and officers, PwC and Regulatory Insurance Services, Inc. On September&nbsp;28, 2007, AIG and the shareholder plaintiffs filed a combined amended complaint in which AIG continued to assert claims against defendants Greenberg and Smith and took no position as to the claims asserted by the shareholder plaintiffs in the remainder of the combined amended complaint. In that pleading, the shareholder plaintiffs are no longer pursuing claims against certain AIG officers and directors. In November 2007, the shareholder plaintiffs moved to sever their claims to a separate action. AIG joined the motion to the extent that, among other things, the claims against defendants Greenberg and Smith would remain in prosecution in the pending action. In addition, a number of parties, including AIG, filed motions to stay discovery. On February&nbsp;12, 2008, the court granted AIG&#146;s motion to stay discovery pending the resolution of claims against AIG in the New York consolidated securities action. The court also denied plaintiff&#146;s motion to sever and directed the parties to coordinate a briefing schedule for the motions to dismiss. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; A separate derivative lawsuit was filed in the Delaware Chancery Court against twenty directors and executives of AIG as well as against AIG as a nominal defendant that alleges, among other things, that the directors of AIG breached the fiduciary duties of loyalty and care by approving the payment of commissions to Starr and of rental and service fees to SICO and the executives breached their duty of loyalty by causing AIG to enter into contracts with Starr and SICO and their fiduciary duties by usurping AIG&#146;s corporate opportunity. The complaint further alleges that the Starr agencies did not provide any services that AIG was not capable of providing itself, and that the diversion of commissions to these entities was solely for the benefit of Starr&#146;s owners. The complaint also alleged that the service fees and rental payments made to SICO and its subsidiaries were improper. Under the terms of a stipulation approved by the Court on February&nbsp;16, 2006, the claims against the outside independent directors were dismissed with prejudice, while the claims against the other directors were dismissed without prejudice. On October&nbsp;31, 2005, Defendants&nbsp;Greenberg, Matthews and Smith, SICO and Starr filed motions to dismiss the amended complaint. In an opinion dated June&nbsp;21, 2006, the Court denied defendants&#146; motion to dismiss, except with respect to plaintiff&#146;s challenge to payments made to Starr before January&nbsp;1, 2000. On July&nbsp;21, 2006, plaintiff filed its second amended complaint, which alleges that, between January&nbsp;1, 2000 and May&nbsp;31, 2005, individual defendants breached their duty of loyalty by causing AIG to enter into contracts with Starr and SICO and breached their fiduciary duties by usurping AIG&#146;s corporate opportunity. Starr is charged with aiding and abetting breaches of fiduciary duty and unjust enrichment for its acceptance of the fees. SICO is no longer named as a defendant. On April&nbsp;20, 2007, the individual defendants and Starr filed a motion seeking leave of the Court to assert a cross-claim against AIG and a third-party complaint against PwC and the directors previously dismissed from the action, as well as certain other AIG officers and employees. On June&nbsp;13, 2007, the Court denied the individual defendants&#146; motion to file a third-party complaint, but granted the proposed cross-claim against AIG. On June&nbsp;27, 2007, Starr filed its cross-claim against AIG, alleging one count that includes contribution, unjust enrichment and setoff. AIG has filed an answer and moved to dismiss Starr&#146;s cross-claim to the extent it seeks affirmative relief, as opposed to a reduction in the judgment amount. On November&nbsp;15, 2007, the court granted AIG&#146;s motion to dismiss the cross-claim by Starr to the extent that it sought affirmative relief from AIG. On November&nbsp;21, 2007, shareholder plaintiff submitted a motion for leave to file its Third Amended Complaint in order to add Thomas Tizzio as a defendant. On February&nbsp;14, 2008, the court granted this motion and allowed Mr.&nbsp;Tizzio until April 2008 to take additional discovery. Document discovery and depositions are otherwise complete. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Policyholder Actions.</I> After the NYAG filed its complaint against insurance broker Marsh, policyholders brought multiple federal antitrust and Racketeer Influenced and Corrupt Organizations Act (RICO)&nbsp;class actions in jurisdictions across the nation against </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; insurers and brokers, including AIG and a number of its subsidiaries, alleging that the insurers and brokers engaged in a broad conspiracy to allocate customers, steer business, and rig bids. These actions, including 24 complaints filed in different federal courts naming AIG or an AIG subsidiary as a defendant, were consolidated by the judicial panel on multi-district litigation and transferred to the United States District Court for the District of New Jersey for coordinated pretrial proceedings. The consolidated actions have proceeded in that court in two parallel actions, <I>In re</I> <EM>Insurance Brokerage Antitrust Litigation </EM>(the <I>First Commercial Complaint</I>) and <I>In re Employee Benefit Insurance Brokerage Antitrust Litigation </I>(the <I>First Employee Benefits Complaint, </I>and, together with the <I>First Commercial Complaint, </I>the multi-district litigation). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The plaintiffs in the <I>First Commercial Complaint </I>are nineteen corporations, individuals and public entities that contracted with the broker defendants for the provision of insurance brokerage services for a variety of insurance needs. The broker defendants are alleged to have placed insurance coverage on the plaintiffs&#146; behalf with a number of insurance companies named as defendants, including AIG subsidiaries. The <I>First Commercial Complaint </I>also named ten brokers and fourteen other insurers as defendants (two of which have since settled). The <I>First Commercial Complaint </I>alleges that defendants engaged in a widespread conspiracy to allocate customers through &#147;bid-rigging&#148; and &#147;steering&#148; practices. The <I>First Commercial Complaint </I>also alleges that the insurer defendants permitted brokers to place business with AIG subsidiaries through wholesale intermediaries affiliated with or owned by those same brokers rather than placing the business with AIG subsidiaries directly. Finally, the <I>First Commercial Complaint </I>alleges that the insurer defendants entered into agreements with broker defendants that tied insurance placements to reinsurance placements in order to provide additional compensation to each broker. Plaintiffs assert that the defendants violated the Sherman Antitrust Act, RICO, the antitrust laws of 48&nbsp;states and the District of Columbia, and are liable under common law breach of fiduciary duty and unjust enrichment theories. Plaintiffs seek treble damages plus interest and attorneys&#146; fees as a result of the alleged RICO and Sherman Antitrust Act violations. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The plaintiffs in the <I>First Employee Benefits Complaint </I>are nine individual employees and corporate and municipal employers alleging claims on behalf of two separate nationwide purported classes: an employee class and an employer class that acquired insurance products from the defendants from August&nbsp;26, 1994 to the date of any class certification. The <I>First Employee Benefits Complaint </I>names AIG, as well as eleven brokers and five other insurers, as defendants. The activities alleged in the <I>First Employee Benefits Complaint, </I>with certain exceptions, track the allegations of contingent commissions, bid-rigging and tying made in the <I>First Commercial Complaint.</I> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; On October&nbsp;3, 2006, Judge Hochberg of the District of New Jersey reserved in part and denied in part motions filed by the insurer defendants and broker defendants to dismiss the multi-district litigation. The Court also ordered the plaintiffs in both actions to file supplemental statements of particularity to elaborate on the allegations in their complaints. Plaintiffs filed their supplemental statements on October&nbsp;25, 2006, and the AIG defendants, along with other insurer and broker defendants in the two consolidated actions, filed renewed motions to dismiss on November&nbsp;30, 2006. On February&nbsp;16, 2007, the case was transferred to Judge Garrett E. Brown, Chief Judge of the District of New Jersey. On April&nbsp;5, 2007, Chief Judge Brown granted the defendants&#146; renewed motions to dismiss the <I>First Commercial Complaint </I>and <I>First Employee Benefits Complaint </I>with respect to the antitrust and RICO claims. The claims were dismissed without prejudice and the plaintiffs were given 30&nbsp;days, later extended to 45&nbsp;days, to file amended complaints. On April&nbsp;11, 2007, the Court stayed all proceedings, including all discovery, that are part of the multi-district litigation until any renewed motions to dismiss the amended complaints are resolved. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; A number of complaints making allegations similar to those in the <I>First Commercial Complaint </I>have been filed against AIG and other defendants in state and federal courts around the country. The defendants have thus far been successful in having the federal actions transferred to the District of New Jersey and consolidated into the multi-district litigation. The AIG defendants have also sought to have state court actions making similar allegations stayed pending resolution of the multi-district litigation proceeding. In one state court action pending in Florida, the trial court recently decided not to grant an additional stay, but instead to allow the case to proceed. Defendants filed their motions to dismiss, and on September&nbsp;24, 2007, the court denied the motions with respect to the state antitrust, RICO, and common law claims and granted the motions with respect to both the Florida insurance bad faith claim against AIG (with prejudice) and the punitive damages claim (without prejudice). Discovery in this action is ongoing. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Plaintiffs filed amended complaints in both <I>In re Insurance Brokerage Antitrust Litigation </I>(the <I>Second Commercial Complaint</I>) and <I>In re Employee Benefit Insurance Brokerage Antitrust Litigation </I>(the <I>Second Employee Benefits Complaint</I>) along with revised particularized statements in both actions on May&nbsp;22, 2007. The allegations in the <I>Second Commercial Complaint </I>and the <I>Second Employee Benefits Complaint </I>are substantially similar to the allegations in the <I>First Commercial Complaint and First Employee Benefits Complaint,</I> respectively. The complaints also attempt to add several new parties and delete others; the <I>Second Commercial Complaint </I>adds two new plaintiffs and twenty seven new defendants (including three new AIG defendants), and the <I>Second Employee Benefits Complaint </I>adds eight new plaintiffs and nine new defendants (including two new AIG defendants). The defendants filed motions to dismiss the amended complaints and to strike the newly added parties. The Court granted (without leave to amend) defendants&#146; motions to dismiss the federal antitrust and RICO claims on August&nbsp;31, 2007 and September&nbsp;28, 2007, respectively. The Court declined to exercise supplemental jurisdiction over the state law claims in the <I>Second Commercial Complaint </I>and therefore dismissed it in its entirety. On January&nbsp;14, 2008, the court granted defendants&#146; motion for summary judgment on the ERISA claims in the Second Employee Benefits Complaint and subsequently dismissed the remaining state law claims without prejudice, thereby dismissing the Second Employee Benefits Complaint in its entirety. On February 12, 2008, plaintiffs filed a notice of appeal to the United States Court of Appeals for the Third Circuit with respect to the dismissal of the Second Employee Benefits Complaint. Plaintiffs previously appealed the dismissal of the Second Commercial Complaint to the United States Court of Appeals for the Third Circuit on October 10, 2007. Several similar actions that were consolidated before Chief Judge Brown are still pending in the District Court. Those actions are currently stayed pending a decision by the court on whether they will proceed during the appeal of the dismissal of the Second Commercial Complaint and the Second Employee Benefits Complaint. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; On August&nbsp;24, 2007, the Ohio Attorney General filed a complaint in the Ohio Court of Common Pleas against AIG and a number of its subsidiaries, as well as several other broker and insurer defendants, asserting violation of Ohio&#146;s antitrust laws. The complaint, which is similar to the <I>Second Commercial Complaint,</I> alleges that AIG and the other broker and insurer defendants conspired to allocate customers, divide markets, and restrain competition in commercial lines of casualty insurance sold through the broker defendant. The complaint seeks treble damages on behalf of Ohio public purchasers of commercial casualty insurance, disgorgement on behalf of both public and private purchasers of commercial casualty insurance, as well as a $500&nbsp;per day penalty for each day of conspiratorial conduct. AIG, along with other co-defendants, moved to dismiss the complaint on November&nbsp;16, 2007. Discovery is stayed in the case pending a ruling on the motion to dismiss or until May&nbsp;15, 2008, whichever occurs first. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>SICO. </I>In July, 2005, SICO filed a complaint against AIG in the Southern District of New York, claiming that AIG had refused to provide SICO access to certain artwork and asked the court to order AIG immediately to release the property to SICO. AIG filed an answer denying SICO&#146;s allegations and setting forth defenses to SICO&#146;s claims. In addition, AIG filed counterclaims asserting breach of contract, unjust enrichment, conversion, breach of fiduciary duty, a constructive trust and declaratory judgment, relating to SICO&#146;s breach of its commitment to use its AIG shares only for the benefit of AIG and AIG employees. Fact and expert discovery has been concluded and SICO&#146;s motion for summary judgment is pending. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Regulatory Investigations.</I> Regulators from several states have commenced investigations into insurance brokerage practices related to contingent commissions and other industry wide practices as well as other broker-related conduct, such as alleged bid-rigging. In addition, various federal, state and foreign regulatory and governmental agencies are reviewing certain transactions and practices of AIG and its subsidiaries in connection with industry wide and other inquiries. AIG has cooperated, and will continue to cooperate, in producing documents and other information in response to subpoenas and other requests. On January&nbsp;29, 2008, AIG reached settlement agreements with nine states and the District of Columbia. The settlement agreements call for AIG to pay a total of $12.5&nbsp;million to be allocated among the ten jurisdictions and also require AIG to continue to maintain certain producer compensation disclosure and ongoing compliance initiatives. AIG will also continue to cooperate with these states in their ongoing investigations. AIG has not admitted liability under the settlement agreements and continues to deny the allegations. Nevertheless, AIG agreed to settle in order to avoid the expense and uncertainty of protracted litigation. The settlement agreements, which remain subject to court approvals, were reached with the Attorneys General of the States of Florida, Hawaii, Maryland, Michigan, Oregon, Texas and West Virginia, the Commonwealths of Massachusetts and Pennsylvania, and the District of Columbia, the Florida Department of Financial Services, and the Florida Office of Insurance Regulation. The agreement with the Texas Attorney General also settles allegations of anticompetitive conduct relating to AIG&#146;s relationship with Allied World Assurance Company and includes an additional settlement payment of $500,000 related thereto. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Wells Notices.</I> AIG understands that some of its employees have received Wells notices in connection with previously disclosed SEC investigations of certain of AIG&#146;s transactions or accounting practices. Under SEC procedures, a Wells notice is an indication that the SEC staff has made a preliminary decision to recommend enforcement action that provides recipients with an opportunity to respond to the SEC staff before a formal recommendation is finalized. It is possible that additional current and former employees could receive similar notices in the future as the regulatory investigations proceed. </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Effect on AIG</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In the opinion of AIG management, AIG&#146;s ultimate liability for the unresolved litigation and investigation matters referred to above is not likely to have a material adverse effect on AIG&#146;s consolidated financial condition, although it is possible that the effect would be material to AIG&#146;s consolidated results of operations for an individual reporting period. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;Commitments</B> </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B>Flight Equipment</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>At December&nbsp;31, 2007, ILFC had committed to purchase 234 new aircraft deliverable from 2008 through 2017 at an estimated aggregate purchase price of $20.1 billion. ILFC will be required to find customers for any aircraft acquired, and it must arrange financing for portions of the purchase price of such equipment. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Minimum future rental income on noncancelable operating leases of flight equipment which have been delivered at December&nbsp;31, 2007 was as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="88%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=5>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=5>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,142</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2009</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,783</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2010</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,274</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2011</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,726</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,075</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Remaining years after 2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,921</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20,921</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Flight equipment is leased, under operating leases, with remaining terms ranging from 1 to 12&nbsp;years. </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 21pt 0px 0px; COLOR: #000000" align=left><B>Lease Commitments</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and its subsidiaries occupy leased space in many locations under various long-term leases and have entered into various leases covering the long-term use of data processing equipment. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>At December&nbsp;31, 2007, the future minimum lease payments under operating leases were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="89%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=5>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=5>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>747</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2009</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>581</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2010</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>460</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2011</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>371</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>322</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Remaining years after 2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,945</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,426</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Rent expense approximated $771&nbsp;million, $657&nbsp;million, and $597&nbsp;million for the years ended December&nbsp;31, 2007, 2006, and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Other Commitments</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In the normal course of business, AIG enters into commitments to invest in limited partnerships, private equities, hedge funds and mutual funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $9.1&nbsp;billion at December&nbsp;31, 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; On June&nbsp;27, 2005, AIG entered into an agreement pursuant to which AIG agrees, subject to certain conditions, to make any payment that is not promptly paid with respect to the benefits accrued by certain employees of AIG and its subsidiaries under the SICO Plans (as discussed in Note&nbsp;19 herein). </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(c)&nbsp;Contingencies</B> </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B>Loss Reserves</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>Although AIG regularly reviews the adequacy of the established reserve for losses and loss expenses, there can be no assurance that AIG&#146;s ultimate loss reserves will not develop adversely and materially exceed AIG&#146;s current loss reserves. Estimation of ultimate net losses, loss expenses and loss reserves is a complex process for long-tail casualty lines of business, which include excess and umbrella liability, directors and officers liability (D&amp;O), professional liability, medical malpractice, workers compensation, general liability, products liability and related classes, as well as for asbestos and environmental exposures. Generally, actual historical loss development factors are used to project future loss development. However, there can be no assurance that future loss development patterns will be the same as in the past. Moreover, any deviation in loss cost trends or in loss development factors might not be discernible for an extended period of time subsequent to the recording of the initial loss reserve estimates for any accident year. Thus, there is the potential for reserves with respect to a number of years to be significantly affected by changes in loss cost trends or loss development factors that were relied upon in setting the reserves. These changes in loss cost trends or loss development factors could be attributable to changes in inflation, in labor and material costs or in the judicial environment, or in other social or economic phenomena affecting claims. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Synthetic Fuel Tax Credits.</I> AIG generated income tax credits as a result of investing in synthetic fuel production. Tax credits generated from the production and sale of synthetic fuel under the Internal Revenue Code were subject to an annual phase-out provision based on the average wellhead price of domestic crude oil. The price range within which the tax credits are phased-out was originally established in 1980 and is adjusted annually for inflation. Depending on the price of domestic crude oil for a particular year, all or a portion of the tax credits generated in that year might be eliminated. AIG evaluated the production levels of its synthetic fuel production facilities in light of the risk of phase-out of the associated tax credits. As a result of fluctuating domestic crude oil prices, AIG evaluated and adjusted production levels when appropriate in light of this risk. Under current legislation, the opportunity to generate additional tax credits from the production and sale of synthetic fuel expired on December&nbsp;31, 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Lease Transactions.</I> In June and August, 2007, field agents at the Internal Revenue Service (IRS) issued Notices of Proposed Adjustment (NOPAs) relating to a series of lease transactions by an AIG subsidiary. In the NOPAs, the field agents asserted that the leasing transactions were &#147;lease-in lease-out&#148; transactions described in Revenue Ruling 2002-69 and proposed adjustments to taxable income of approximately $203&nbsp;million in the aggregate for the years 1998, 1999, 2001 and 2002. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(d)&nbsp;Guarantees</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and certain of its subsidiaries become parties to derivative financial instruments with market risk resulting from both dealer and end-user activities and to reduce currency, interest rate, equity and commodity exposures. These instruments are carried at their estimated fair values in the consolidated balance sheet. The vast majority of AIG&#146;s derivative activity is transacted by AIGFP. See also Note&nbsp;8 herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG has issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP arising from transactions entered into by AIGFP. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; SAI Deferred Compensation Holdings, Inc., a wholly owned subsidiary of AIG, has established a deferred compensation plan for registered representatives of certain AIG subsidiaries, pursuant to which participants have the opportunity to invest deferred commissions and fees on a notional basis. The value of the deferred compensation fluctuates with the value of the deferred investment alternatives chosen. AIG has provided a full and unconditional guarantee of the obligations of SAI Deferred Compensation Holdings, Inc. to pay the deferred compensation under the plan. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>13.&nbsp;Preferred Shareholders&#146; Equity in Subsidiary Companies</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>At December&nbsp;31, 2007, preferred shareholders&#146; equity in subsidiary companies represents preferred stocks issued by ILFC, a wholly owned subsidiary of AIG. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, the preferred stock consists of 1,000&nbsp;shares of market auction preferred stock (MAPS)&nbsp;in two series (Series&nbsp;A and B) of 500&nbsp;shares each. Each of the MAPS shares has a liquidation value of $100,000&nbsp;per share and is not convertible. The dividend rate, other than the initial rate, for each dividend period for each series is reset approximately every seven weeks (49&nbsp;days) on the basis of orders placed in an auction. During 2006, ILFC extended each of the MAPS dividend periods for three years. At December&nbsp;31, 2007, the dividend rate for Series&nbsp;A MAPS was 4.70 percent and the dividend rate for Series&nbsp;B MAPS was 5.59 percent.</DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>14.&nbsp;Shareholders&#146; Equity and Earnings Per Share</FONT></B> </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Shareholders&#146; Equity </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG parent depends on its subsidiaries for cash flow in the form of loans, advances, reimbursement for shared expenses, and dividends. AIG&#146;s insurance subsidiaries are subject to regulatory restrictions on the amount of dividends that can be remitted to AIG parent. These restrictions vary by jurisdiction. For example, unless permitted by the New York Superintendent of Insurance, general insurance companies domiciled in New York may not pay dividends to shareholders that, in any twelve-month period, exceed the lesser of ten percent of such company&#146;s statutory policyholders&#146; surplus or 100&nbsp;percent of its &#147;adjusted net investment income,&#148; as defined. Generally, less severe restrictions applicable to both general and life insurance companies exist in most of the other states in which AIG&#146;s insurance subsidiaries are domiciled. Certain foreign jurisdictions have restrictions that could delay or limit the remittance of dividends. There are also various local restrictions limiting cash loans and advances to AIG by its subsidiaries. Largely as a result of these restrictions, approximately 81&nbsp;percent of the aggregate equity of AIG&#146;s consolidated subsidiaries was restricted from immediate transfer to AIG parent at December&nbsp;31, 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Dividends declared per common share were $0.77, $0.65, and $0.63 in 2007, 2006, and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; During 2007 and 2005, AIG repurchased 76&nbsp;million and 2&nbsp;million shares of its common stock, respectively, at a total cost of $5.1&nbsp;billion and $165&nbsp;million, respectively. The average price paid per share for repurchased shares was $66.84 and $66.46 in 2007 and 2005, respectively. During 2006, AIG did not purchase any shares of its common stock under its existing share repurchase authorization. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, there were 6,000,000&nbsp;shares of AIG&#146;s $5&nbsp;par value serial preferred stock authorized, issuable in series, none of which were outstanding. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Earnings Per Share </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>Basic earnings per share is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. Diluted earnings per share is based on those shares used in basic earnings per share plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding, adjusted to reflect all stock dividends and stock splits. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The computation of earnings per share for the years ended December&nbsp;31, 2007, 2006 and 2005 was as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="58%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions, except per share data)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Numerator for earnings per share:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,014</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,477</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income applicable to common stock for basic EPS</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,048</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,477</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest on contingently convertible bonds, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income applicable to common stock for diluted EPS</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,058</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,488</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(34</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income before cumulative effect of an accounting change applicable to common stock for diluted EPS</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,024</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,488</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Denominator for earnings per share:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average shares outstanding used in the computation of EPS:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Common stock issued</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,751</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,751</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,751</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Common stock in treasury</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(179</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(153</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(155</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred shares</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>13</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average shares outstanding&nbsp;&#151; basic</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,585</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,608</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,597</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Incremental shares from potential common stock:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average number of shares arising from outstanding employee stock plans (treasury stock method)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>13</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Contingently convertible bonds</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average shares outstanding&nbsp;&#151; diluted<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,598</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,623</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,627</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Earnings per share:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Basic:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.40</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5.38</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4.03</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.40</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5.39</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4.03</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Diluted:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.39</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5.35</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3.99</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.39</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5.36</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3.99</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Certain shares arising from employee stock plans were not included in the computation of diluted earnings per share if the exercise price of the options exceeded the average market price and were antidilutive. The number of shares excluded were 8&nbsp;million, 13&nbsp;million and 19&nbsp;million for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively.</I></TD></TR></TBODY></TABLE></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>15.&nbsp;Statutory Financial Data</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Statutory surplus and net income for General Insurance and Life Insurance&nbsp;&amp; Retirement Services operations in accordance with statutory accounting practices were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="56%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Statutory surplus<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">General Insurance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>37,705</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,665</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>24,508</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life Insurance&nbsp;&amp; Retirement Services</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>33,212</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35,058</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,739</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Statutory net income<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">General Insurance<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,018</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,010</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,713</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life Insurance&nbsp;&amp; Retirement Services<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,465</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,088</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,762</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Statutory surplus and net income with respect to foreign operations are estimated at November&nbsp;30. The basis of presentation for branches of AIA is the Hong Kong statutory filing basis. The basis of presentation for branches of ALICO is the U.S. statutory filing basis. AIG Star Life, AIG Edison Life, Nan Shan and Philamlife are estimated based on their respective local country filing basis.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Includes realized capital gains and losses and taxes.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Includes catastrophe losses, net of tax, of $177&nbsp;million and $1.9&nbsp;billion in 2007 and 2005, respectively.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s insurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The differences between statutory financial statements and financial statements prepared in accordance with U.S.&nbsp;GAAP vary between domestic and foreign by jurisdiction. The principal differences are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, policyholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, 2006 and 2005, statutory capital of AIG&#146;s insurance subsidiaries exceeded minimum company action level requirements. In 2005, AIG nonetheless contributed an additional $750&nbsp;million of capital into American Home Assurance Company (American Home) effective September&nbsp;30, 2005 and contributed a further $2.25&nbsp;billion of capital in February 2006 for a total of approximately $3&nbsp;billion of capital into Domestic General Insurance subsidiaries effective December&nbsp;31, 2005. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>16.&nbsp;Fair Value of Financial Instruments</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>FAS&nbsp;107, &#147;Disclosures about Fair Value of Financial Instruments&#148; (FAS&nbsp;107), requires disclosure of fair value information about financial instruments for which it is practicable to estimate such fair value. FAS&nbsp;107 excludes certain financial instruments, including those related to insurance contracts and lease contracts. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other than active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction and general market conditions. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Fixed maturities, equity securities, securities available for sale, trading securities and securities sold under agreements to repurchase:</I> AIG maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. AIG obtains market price data to value financial instruments whenever such information is available. Market price data generally is obtained from market exchanges or dealer quotations. The types of instruments valued based on market price data include G-7 government and agency securities, equities listed in active markets, and investments in publicly traded mutual funds with quoted market prices. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG estimates the fair value of fixed income instruments not traded in active markets by referring to traded securities with similar attributes and using a matrix pricing methodology. This methodology considers such factors as the issuer&#146;s industry, the security&#146;s rating and tenor, its coupon rate, its position in the capital structure of the issuer, and other relevant factors. The types of fixed income instruments not traded in active markets include non-G-7 government securities, municipal bonds, certain hybrid financial instruments, most investment-grade and high-yield corporate bonds, and most mortgage- and asset-backed products. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG initially estimates the fair value of equity instruments not traded in active markets by reference to the transaction price. This valuation is adjusted only when changes to inputs and assumptions are corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity capital markets, and changes in financial ratios or cash flows. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For equity and fixed income instruments that are not traded in active markets or that are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments generally are based on available market evidence. In the absence of such evidence, management&#146;s best estimate is used. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Unrealized gain (loss)&nbsp;on swaps, options and forward transactions:</FONT></I> Unrealized gain (loss)&nbsp;on swaps, options and forward transactions (derivative assets and liabilities) can be exchange-traded or traded over the counter (OTC). AIG generally values exchange-traded derivatives within portfolios using models that calibrate to market clearing levels and that eliminate timing differences between the closing price of the exchange-traded derivatives and their underlying instruments. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in, the instrument as well as the availability of pricing information in the market. AIG generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be verified and model selection does not involve significant management judgment. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain OTC derivatives trade in less liquid markets with limited pricing information, and the determination of fair value for these derivatives is inherently more difficult. When AIG does not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, transaction price is initially used as the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so that the model value at inception equals the transaction price. Subsequent to initial recognition, AIG updates valuation inputs when corroborated by evidence such as similar market transactions, third-party pricing services and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management&#146;s best estimate is used. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Mortgage and other loans receivable:</I> When practical, the fair values of loans on real estate and collateral loans were estimated using discounted cash flow calculations based upon AIG&#146;s current incremental lending rates for similar type loans. The fair values of the policy loans were not calculated as AIG believes it would have to expend excessive costs for the benefits derived. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Finance receivables:</I> Fair values were estimated using discounted cash flow calculations based upon the weighted average rates currently being offered for similar finance receivables. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Securities lending invested collateral and securities lending payable:</I> Securities lending collateral are floating rate fixed maturity securities recorded at fair value. Fair values were based upon quoted market prices or internally developed models consistent with the methodology for other fixed maturity securities. The contract values of securities lending payable approximate fair value as these obligations are short-term in nature. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Spot commodities:</I> Fair values were based on current market prices of reference spot futures contracts traded on exchanges. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Cash, short-term investments, trade receivables, trade payables, securities purchased (sold)&nbsp;under agreements to resell (repurchase), commercial paper and extendible commercial notes:</I> The carrying values of these assets and liabilities approximate fair values because of the relatively short period of time between origination and expected realization. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Other invested assets:</I> Consisting principally of hedge funds and limited partnerships. Fair values are determined based on the net asset values provided by the general partner or manager of each investment. AIG obtains the fair value of its investments in limited partnerships and hedge funds from information provided by the general partner or manager of these investments, the accounts of which generally are audited on an annual basis. The transaction price is used as the best estimate of fair value at inception. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Policyholders&#146; contract deposits:</I> Fair values were estimated using discounted cash flow calculations based upon interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Securities and spot commodities sold but not yet purchased:</I> The carrying amounts for the securities and spot commodities sold but not yet purchased approximate fair values. Fair values for securities and spot commodities sold short were based on current market prices. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Trust deposits and deposits due to banks and other depositors:</I> To the extent certain amounts are not demand deposits or certificates of deposit which mature in more than one year, fair values were not calculated as AIG believes it would have to expend excessive costs for the benefits derived. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Commercial paper and extendible commercial notes:</I> The carrying amount approximates fair value. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Long-term borrowings:</I> When practical, the fair values of these obligations were estimated using discounted cash flow calculations based upon AIG&#146;s current incremental borrowing rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The carrying values and fair values of AIG&#146;s financial instruments at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="45%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><B><FONT color=#002868>2007</FONT></B></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2006</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Carrying</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Fair</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Carrying</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Fair</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assets:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fixed maturities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>428,935</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>429,511</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>419,142</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>419,859</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>41,646</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>41,646</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,650</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,650</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage and other loans receivable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>33,727</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>34,123</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,418</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,655</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40,305</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40,305</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,205</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,205</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Trading securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,197</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,197</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,031</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,031</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Spot commodities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>238</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>238</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>220</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>220</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unrealized gain on swaps, options and forward transactions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>16,442</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>16,442</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,252</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,252</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Trade receivables</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,467</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,467</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,317</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,317</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities purchased under agreements to resell</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,950</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,950</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,291</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,291</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Finance receivables, net of allowance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>31,234</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28,693</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>29,573</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26,712</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities lending invested collateral</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>75,662</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>75,662</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69,306</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69,306</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other invested assets<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>57,134</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>57,979</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>42,111</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>42,418</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Short-term investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,351</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,351</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,483</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,284</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,284</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,590</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,590</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Policyholders&#146; contract deposits</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>258,459</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>259,045</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>248,264</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>243,570</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities sold under agreements to repurchase</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,331</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,048</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,677</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,677</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Trade payables</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>10,568</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>10,568</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,174</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,174</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities and spot commodities sold but not yet purchased</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,709</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,709</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,076</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,076</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unrealized loss on swaps, options and forward transactions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,613</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,613</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,401</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,401</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Trust deposits and deposits due to banks and other depositors</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,903</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,986</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,249</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,261</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Commercial paper and extendible commercial notes</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,114</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,114</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,363</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,363</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Long-term borrowings</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>162,935</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>165,064</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>135,316</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>135,605</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities lending payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>81,965</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>81,965</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>70,198</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>70,198</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>(a)&nbsp;The carrying value of all other financial instruments approximates fair value.</I> </DIV> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left><I>(b)&nbsp;Excludes aircraft asset investments held by non-Financial Services subsidiaries.</I> </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>17.&nbsp;Share-based Employee Compensation Plans</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>During the year ended December&nbsp;31, 2007, AIG employees had received compensation pursuant to awards under seven different share-based employee compensation plans: <I>(i)&nbsp;</I>AIG 1999 Stock Option Plan, as amended (1999 Plan); <I>(ii)&nbsp;</I>AIG 1996 Employee Stock Purchase Plan, as amended (1996 Plan); <I>(iii)&nbsp;</I>AIG 2002 Stock Incentive Plan, as amended (2002 Plan) under which AIG has issued time-vested restricted stock units (RSUs) and performance restricted stock units (performance RSUs); <I>(iv)&nbsp;</I>AIG 2007 Stock Incentive Plan, as amended (2007 Plan); <I>(v)&nbsp;</I>SICO&#146;s Deferred Compensation Profit Participation Plans (SICO Plans); <I>(vi)&nbsp;</I>AIG&#146;s 2005-2006 Deferred Compensation Profit Participation Plan (AIG DCPPP) and <I>(vii)&nbsp;</I>the AIG Partners Plan. The AIG DCPPP was adopted as a replacement for the SICO Plans for the 2005-2006 period, and the AIG Partners Plan replaced the AIG DCPPP. Share-based employee compensation earned under the AIG DCPPP was granted as time-vested RSUs under the 2002 Plan. Share-based employee compensation awarded under the AIG Partners Plan was granted as performance-based RSUs under the 2002 Plan, except for the December&nbsp;2007 grant which was made under the 2007&nbsp;Plan. All future grants will be made under the 2007 Plan. Although awards granted under all the plans described above remained outstanding at December&nbsp;31, 2007, future grants of options, RSUs and performance RSUs can be made only under the 2007 Plan. AIG currently settles share option exercises and other share awards to participants by issuing shares it previously acquired and holds in its treasury account, except for share awards made by SICO, which are settled by SICO. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2006 and for prior years, AIG&#146;s non-employee directors received share-based compensation in the form of options granted pursuant to the 1999 Plan and grants of AIG common stock with delivery deferred until retirement from the Board, pursuant to the AIG Director Stock Plan, which was approved by the shareholders at the 2004 Annual Meeting of Shareholders and which is now a subplan under the 2007 Plan. From and after May&nbsp;16, 2007, non-employee directors receive deferred stock units (DSUs) under the 2007 Plan with delivery deferred until retirement from the Board. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; From January&nbsp;1, 2003 through December&nbsp;31, 2005, AIG accounted for share-based payment transactions with employees under FAS&nbsp;123, &#147;Accounting for Stock-Based Compensation.&#148; Share-based employee compensation expense from option awards was not recognized in the consolidated statement of income in prior periods. Effective January&nbsp;1, 2006, AIG adopted the fair value recognition provisions of FAS&nbsp;123R. FAS&nbsp;123R requires that companies use a fair value method to value share-based payments and recognize the related compensation expense in net earnings. AIG adopted FAS&nbsp;123R using the modified prospective application method, and accordingly, financial statement amounts for the prior periods presented have not been restated to reflect the fair value method of expensing share-based compensation under FAS&nbsp;123R. The modified prospective application method requires recognition of the fair value of share-based compensation for shares subscribed for or granted on or after January&nbsp;1, 2006 and all previously granted but unvested awards at January&nbsp;1, 2006. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The adoption of FAS&nbsp;123R resulted in share-based compensation expense of approximately $17&nbsp;million during 2006, related to awards that were accounted for under Accounting Principles Board Opinion&nbsp;25, &#147;Accounting for Stock Issued to Employees.&#148; FAS&nbsp;123R also requires AIG to estimate forfeitures in calculating the expense relating to share-based compensation, rather than recognizing these forfeitures and corresponding reductions in expense as they occur. The cumulative effect of adoption of $46&nbsp;million was recorded as a cumulative effect of an accounting change, net of tax. FAS&nbsp;123R requires AIG to reflect the cash savings resulting from excess tax benefits in its financial statements as cash flow from financing activities, rather than as cash flow from operating activities as in prior periods. The amount of this excess tax benefit in 2007 and 2006 was $26.1&nbsp;million and $27.9&nbsp;million, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Included in AIG&#146;s consolidated statement of income for the years ended December&nbsp;31, 2007 and 2006 was pre-tax share-based compensation expense of $275&nbsp;million ($216&nbsp;million after tax), and $353&nbsp;million ($326&nbsp;million after tax), respectively. Share-based compensation expense in 2006 included a one-time compensation cost of approximately $54&nbsp;million related to the Starr tender offer and various out of period adjustments totaling $61&nbsp;million, primarily relating to stock splits and other miscellaneous items for the SICO Plans. See Note&nbsp;19 herein for a discussion of the Starr tender offer. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>1999 Stock Option Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The 1999 Plan was approved by the shareholders at the 2000 Annual Meeting of Shareholders, with certain amendments approved at the 2003 Annual Meeting of Shareholders. The 1999 Plan superseded the 1991 Employee Stock Option Plan (the 1991 Plan), although outstanding options granted under the 1991 Plan continue until exercise or expiration. Options granted under the 1999 Plan generally vest over four years (25&nbsp;percent vesting per year) and expire 10&nbsp;years from the date of grant. The 2007 Plan supersedes the 1999 Plan. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, there were no&nbsp;shares reserved for future grants under the 1999 Plan and 36,363,769&nbsp;shares reserved for issuance under the 1999 and 1991 Plans. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Deferrals </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>At December&nbsp;31, 2007, AIG was obligated to issue 12,521,342&nbsp;shares in connection with previous exercises of options with delivery deferred. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Valuation </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG uses a binomial lattice model to calculate the fair value of stock option grants. A more detailed description of the valuation methodology is provided below. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following weighted-average assumptions were used for stock options granted in 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="65%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>2006</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>2005</B></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected annual dividend yield<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.39%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.92%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.71%</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected volatility<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>32.82%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27.30%</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Risk-free interest rate<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.08%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.61%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.17%</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected term<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7&nbsp; years</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7&nbsp; years</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>The dividend yield is determined at the grant date.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>In 2007, expected volatility is the average of historical volatility (based on seven years of daily stock price changes) and the implied volatility of actively traded options on AIG shares.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>The interest rate curves used in the valuation model were the U.S.&nbsp;Treasury STRIP rates with terms from 3&nbsp;months to 10&nbsp;years.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(d)</I></TD> <TD align=left><I>The contractual term of the option is generally 10&nbsp;years with an expected term of 7&nbsp;years calculated based on an analysis of historical employee exercise behavior and employee turnover (post-vesting terminations). The early exercise rate is a function of time elapsed since the grant. Fifteen years of historical data were used to estimate the early exercise rate.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=right>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Additional information with respect to AIG&#146;s stock option plans at December&nbsp;31, 2007, and changes for the year then ended, were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="46%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=9>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=9>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Average</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=9>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Remaining</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Aggregate</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=5>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted Average</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Contractual</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Intrinsic Values</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left>Options:</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Shares</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Exercise Price</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Life</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>(in millions)</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Outstanding at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,655,720</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>57.99</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Granted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,738,530</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>57.43</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Exercised*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(12,308,493</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>40.00</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Forfeited or expired</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(721,988</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>69.00</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Outstanding at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,363,769</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>63.83</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>59</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Options exercisable at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,703,527</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>63.98</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>57</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average fair value per share of options granted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20.97</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*</I></TD> <TD align=left><I>Includes options with respect to 8,489,584&nbsp;shares exercised with delivery deferred, resulting in obligations to issue 4,138,713&nbsp;shares.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Vested and <FONT style="WHITE-SPACE: nowrap">expected-to</FONT>-vest options at December&nbsp;31, 2007, included in the table above, totaled 34,349,762, with a weighted average exercise price of $64.14, a weighted average contractual life of 4.46&nbsp;years and an aggregate intrinsic value of $57&nbsp;million. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, total unrecognized compensation cost (net of expected forfeitures) was $100&nbsp;million and $3&nbsp;million related to non-vested share-based compensation awards granted under the 1999 Plan and the 1996 Plan, respectively, with blended weighted average periods of 1.38&nbsp;years and 0.41&nbsp;years, respectively. The cost of awards outstanding under these plans at December&nbsp;31, 2007 is expected to be recognized over approximately four years and one year, respectively, for the 1999 Plan and the 1996 Plan. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The intrinsic value of options exercised during 2007 was approximately $360&nbsp;million. The fair value of options vesting during 2007 was approximately $63&nbsp;million. AIG received $482&nbsp;million and $104&nbsp;million in cash during 2007 and 2006, respectively, from the exercise of stock options. The tax benefits realized as a result of stock option exercises were $16&nbsp;million and $35&nbsp;million in 2007 and 2006, respectively. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>2002 Stock Incentive Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The 2002 Plan was adopted at the 2002 Annual Meeting of shareholders and amended and restated by AIG&#146;s Board of Directors on September&nbsp;18, 2002. During 2007 and 2006, 179,106 and 6,836,785 RSUs, respectively, including performance RSUs, were granted under the 2002 Plan. Because the 2002 Plan has been superseded by the 2007 Plan, there were no shares reserved for issuance in connection with future awards at December&nbsp;31, 2007. Substantially all time-vested RSUs granted under the 2002 Plan vest on the fourth anniversary of the date of grant. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>2007 Stock Incentive Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The 2007 Plan was adopted at the 2007 Annual Meeting of shareholders and amended and restated by AIG&#146;s Board of Directors on November&nbsp;14, 2007. The 2007 Plan supersedes the 1999 Plan and the 2002 Plan. During 2007, 7,121,252&nbsp;RSUs, including performance RSUs were granted under the 2007 Plan. Each RSU, performance RSU and DSU awarded reduces the number of shares available for future grants by 2.9&nbsp;shares. At December&nbsp;31, 2007, there were 157,562,672&nbsp;shares reserved for issuance under the 2007 Plan. A significant majority of the time-vested RSUs granted in 2007 under the 2007 Plan vest on the fourth anniversary of the date of grant. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Non-Employee Director Stock Awards </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The methodology used for valuing employee stock options is also used to value director stock options. Director stock options vest one year after the grant date, but are otherwise the same as employee stock options. Commencing in 2007, directors no longer receive awards of options. Options with respect to 40,000&nbsp;shares and 32,500&nbsp;shares were granted during 2006 and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2007, AIG granted to directors 22,542&nbsp;DSUs, including DSUs representing dividend-equivalent amounts. AIG also granted to directors 6,375&nbsp;shares, 14,000&nbsp;shares and 6,250&nbsp;shares, with delivery deferred, during 2007, 2006 and 2005, respectively, under the Director Stock Plan. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Employee Stock Purchase Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG&#146;s 1996 Plan provides that eligible employees (those employed at least one year) may receive privileges to purchase up to an aggregate of 10,000,000&nbsp;shares of AIG common stock, at a price equal to 85&nbsp;percent of the fair market value on the date of the grant of the purchase privilege. Purchase privileges are granted quarterly and are limited to the number of whole shares that can be purchased on an annual basis by an amount equal to the lesser of 10&nbsp;percent of an employee&#146;s annual salary or $10,000. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>SICO Plans </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The SICO Plans provide that shares of AIG common stock currently held by SICO are set aside for the benefit of the participant and distributed upon retirement. The SICO Board of Directors currently may permit an early payout of shares under certain circumstances. Prior to payout, the participant is not entitled to vote, dispose of or receive dividends with respect to such shares, and shares are subject to forfeiture under certain conditions, including but not limited to the participant&#146;s termination of employment with AIG prior to normal retirement age. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Historically, SICO&#146;s Board of Directors could elect to pay a participant cash in lieu of shares of AIG common stock. On December&nbsp;9, 2005, SICO notified participants that essentially all subsequent distributions would be made only in shares, and not cash. At that date, AIG modified its accounting for the SICO Plans from variable to fixed measurement accounting. Variable measurement accounting is used for those few awards for which cash elections had been made prior to March 2005. At December&nbsp;9, 2005, there were 12,650,292 non-vested AIG shares under the SICO Plans with a weighted average fair value per share of $61.92. The SICO Plans are also described in Note&nbsp;19 herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Although none of the costs of the various benefits provided under the SICO Plans have been paid by AIG, AIG has recorded compensation expense for the deferred compensation amounts payable to AIG employees by SICO, with an offsetting amount credited to additional paid-in capital reflecting amounts deemed contributed by SICO. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; A significant portion of the awards under the SICO Plans vest the year after the participant reaches age&nbsp;65, provided that the participant remains employed by AIG through age 65. The portion of the awards for which early payout is available vest on the applicable payout date. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>AIG DCPPP </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In September 2005, AIG adopted the AIG DCPPP to provide share-based compensation to key AIG employees, including senior executive officers. The AIG DCPPP was modeled on the SICO Plans. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The AIG DCPPP contingently allocated a fixed number of time-vested RSUs to each participant if AIG&#146;s cumulative adjusted earnings per share in 2005 and 2006 exceeded that in 2003 and 2004 as determined by AIG&#146;s Compensation Committee. This goal was met, and pursuant to the terms of the DCPPP Plan, 3,696,836&nbsp;time-vested RSUs were awarded in 2007. These RSUs vest in three pre-retirement installments and a final retirement installment&nbsp;at age&nbsp;65. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, RSU awards with respect to 3,272,268&nbsp;shares remained outstanding. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>AIG Partners Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>On June&nbsp;26, 2006, AIG&#146;s Compensation Committee approved two grants under the AIG Partners Plan. The first grant had a performance period that ran from January&nbsp;1, 2006 through December&nbsp;31, 2007. The second grant has a performance period that runs from January&nbsp;1, 2007 through December&nbsp;31, 2008. In December 2007, the Compensation Committee approved a grant with a performance period from January&nbsp;1, 2008 through December&nbsp;31, 2009. The Compensation Committee will approve the performance metrics for this grant in the first quarter of 2008. All grants vest 50&nbsp;percent on the fourth and sixth anniversaries of the first day of the related performance period. The Compensation Committee approved the performance metrics for the first two grants prior to the date of grant. The measurement of the first two grants is deemed to have occurred on June&nbsp;26, 2006 when there was mutual understanding of the key terms and conditions of the first two grants. In 2007, no compensation cost was recognized, and compensation cost recognized in 2006 was reversed, for the first grant under the Partners Plan because the performance threshold for these awards was not met. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Valuation </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The fair value of each award granted under the plans described above is based on the closing price of AIG stock on the date of grant. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents a summary of shares relating to outstanding awards unvested under the foregoing plans at December&nbsp;31, 2007, and changes for the year then ended<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></FONT></B><FONT color=#002868>: </FONT></DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 7.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="20%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=40>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=18>Number of Shares</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=18>Weighted Average Grant-Date Fair Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>Time-vested</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Partners</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>SICO</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Time-vested</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Partners</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>SICO</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>RSUs</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>DCPPP</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plan</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plan</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>RSUs</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>DCPPP</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plan</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=40>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unvested at January&nbsp;1, 2007</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,181,595</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,590,622</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,607,040</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,379,257</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,443,772</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$66.56</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$52.09</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$56.50</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>59.88</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>61.72</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Granted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,752,738</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,547,620</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,300,358</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>57.90</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>53.93</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>56.51</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Vested</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(168,214</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(196,690</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(550</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(365,454</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,691,306</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>63.82</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61.44</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>66.97</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>62.55</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>64.18</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Forfeited</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(422,431</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(173,472</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,212,585</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,808,488</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(282,657</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>65.34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>53.25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>56.83</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>58.47</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>59.93</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=41>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unvested at December&nbsp;31, 2007</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,343,688</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,220,460</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,941,525</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>20,505,673</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,469,809</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$63.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$54.53</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$55.08</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>59.36</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>61.27</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=41>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Options and DSUs awarded under the 2007 Plan are not included. For the AIG DCPPP, includes all incremental shares granted or to be granted.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The total unrecognized compensation cost (net of expected forfeitures) related to non-vested share-based compensation awards granted under the 2002 Plan, the 2007 Plan, the AIG DCPPP, and the SICO Plans at December&nbsp;31, 2007 and the blended weighted-average periods over which those costs are expected to be recognized at December&nbsp;31, 2007 are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="66%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="13%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Blended</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrecognized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted-</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Compensation</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Average</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Period</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=right><I>(in millions)</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Time-vested RSUs - 2002 Plan</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$218</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.35&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Time-vested RSUs - 2007 Plan</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$209</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.05&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG DCPPP</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$146</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.47&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total AIG Plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$573</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.65&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total SICO Plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$249</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.93&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>The total cost for awards outstanding at December&nbsp;31, 2007 under the 2002 Plan, the 2007 Plan, the AIG DCPPP and the SICO Plans is expected to be recognized over approximately 4&nbsp;years, 4&nbsp;years, 32&nbsp;years and 32&nbsp;years, respectively. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>18.&nbsp;Employee Benefits</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Pension Plans</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG, its subsidiaries and certain affiliated companies, offer various defined benefit plans to eligible employees based on either completion of a specified period of continuous service or date of hire, subject to age limitations. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s U.S. retirement plan is a qualified, noncontributory defined benefit plan which is subject to the provisions of ERISA. U.S. employees who are employed by a participating company, have attained age 21 and completed twelve months of continuous service are eligible to participate in this plan. Employees generally vest after 5&nbsp;years of service. Unreduced benefits are paid to retirees at normal retirement (age 65) and are based upon a percentage of final average compensation multiplied by years of credited service, up to 44&nbsp;years. Non-U.S. defined benefit plans are generally either based on the employee&#146;s years of credited service and compensation in the years preceding retirement, or on points accumulated based on the employee&#146;s job grade and other factors during each year of service. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2007, AIG acquired the outstanding minority interest of 21st Century. Assets, obligations and costs with respect to 21st Century&#146;s plans are included herein. The assumptions used by 21st Century in its plans were not significantly different from those used by AIG in AIG&#146;s U.S. plans. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG also sponsors several unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by AIG&#146;s other retirement plans. These include the AIG Excess Retirement Income Plan, which provides a benefit equal to the reduction in benefits payable to certain employees under the AIG U.S. retirement plan as a result of federal tax limitations on compensation and benefits payable, and the Supplemental Executive Retirement Plan (Supplemental Plan), which provides additional retirement benefits to designated executives. Under the Supplemental Plan, an annual benefit accrues at a percentage of final average pay multiplied by each year of credited service, not greater than 60&nbsp;percent of final average pay, reduced by any benefits from the current and any predecessor retirement plans (including the AIG Excess Retirement Income Plan and any comparable plans), Social Security, if any, and from any qualified pension plan of prior employers. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Postretirement Plans</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and its subsidiaries also provide postretirement medical care and life insurance benefits in the U.S.&nbsp;and in certain <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>countries. Eligibility in the various plans is generally based upon completion of a specified period of eligible service and attaining a specified age. Overseas, benefits vary by geographic location. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; U.S.&nbsp;postretirement medical and life insurance benefits are based upon the employee electing immediate retirement and having a minimum of ten years of service. Medical benefits are contributory, while the life insurance benefits are non-contributory. Retiree medical contributions vary with age and length of service and range from requiring no cost for pre-1989 retirees to requiring actual premium payments reduced by certain credits for post-1993 retirees. These contributions are subject to adjustment annually. Other cost sharing features of the medical plan include deductibles, coinsurance and Medicare coordination and a lifetime maximum benefit of $2&nbsp;million. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents the funded status of the plans, reconciled to the amount reported in the consolidated balance sheet at December&nbsp;31, 2007 and 2006. The measurement date for some of the <FONT style="WHITE-SPACE: nowrap">non-U.S.</FONT> defined benefit pension and postretirement plans is November&nbsp;30, consistent with the fiscal year end of the sponsoring companies. For all other plans, measurement occurs as of December&nbsp;31, 2007.</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="28%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=14>Pension</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=14>Postretirement<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>Non-U.S.&nbsp;Plans<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>U.S.&nbsp;Plans<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Change in projected benefit obligation:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Benefit obligation, beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,578</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1,351</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,079</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,131</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>53</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>43</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>252</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>205</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Service cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>90</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>78</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>130</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>11</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>186</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>169</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>15</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Participant contributions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Actuarial (gain)&nbsp;loss</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(12</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(40</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(159</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(245</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Plan amendments and mergers</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Benefits paid:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(36</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(28</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(11</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(18</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(16</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Plan assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(43</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(27</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(91</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(84</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of foreign currency fluctuation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>78</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>71</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>38</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>136</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(12</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Projected benefit obligation, end of year</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,745</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1,578</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,156</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,079</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>79</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>53</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>257</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>252</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Change in plan assets:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fair value of plan assets, at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>850</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>699</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,760</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>2,561</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Actual return on plan assets, net of expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>36</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>162</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>282</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG contributions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>87</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>309</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>16</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Participant contributions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Benefits paid:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(36</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(28</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(11</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(18</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(16</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Plan assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(43</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(27</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(91</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(84</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of foreign currency fluctuation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>41</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>62</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Fair value of plan assets, end of year</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>952</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>850</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,129</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>2,760</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Funded status, end of year</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(793</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(728</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(27</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(319</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(79</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(257</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(252</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Amounts recognized in the consolidated balance sheet:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>18</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>228</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(821</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(746</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(255</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(319</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(79</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(257</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(252</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Total amounts recognized</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(793</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(728</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(27</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(319</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(79</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(257</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(252</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Amounts recognized in Accumulated other comprehensive income (loss):</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net loss</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>242</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>256</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>513</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>687</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prior service cost (credit)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(67</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(72</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(20</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>23</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Total amounts recognized</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>175</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>184</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>511</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>667</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>AIG does not currently fund postretirement benefits.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Includes unfunded plans for which the aggregate pension benefit obligation was $559&nbsp;million and $494&nbsp;million at December 2007, and 2006, respectively. For 2007 and 2006, approximately 83% pertain to Japanese plans, which are not required by local regulation to be funded. The projected benefit obligation for these plans total $464&nbsp;million and $414&nbsp;million, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)&nbsp;</I></TD> <TD align=left><I>Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $240&nbsp;million and $228&nbsp;million at December 2007 and 2006, respectively.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The accumulated benefit obligations for both <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>and U.S.&nbsp;pension benefit plans at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="69%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Non-U.S.&nbsp;pension benefit plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B>1,504</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,384</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.&nbsp;pension benefit plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,752</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,689</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets and in which the accumulated benefit obligation was in excess of the related plan assets at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="28%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=32>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=14>PBO exceeds fair value of plan assets</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=14>ABO exceeds fair value of plan assets</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=32>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Projected benefit obligation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,676</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1,486</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>368</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>3,079</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,415</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,465</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>240</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>240</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Accumulated benefit obligation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,462</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,323</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>317</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,689</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,277</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,311</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>206</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>204</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fair value of plan assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>855</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>740</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>113</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,760</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>652</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>723</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in Accumulated other comprehensive income (loss) with respect to the defined benefit pension plans and other postretirement benefit plans for the year ended December&nbsp;31, 2007 and 2006 (no amounts related to the adoption of FAS&nbsp;158 were recognized in Accumulated other comprehensive income (loss) for the year ended 2005):</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="27%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=49>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=22>Pension</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=22>Postretirement</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=22>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=22>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=10>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=10>U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=10>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=10>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=10>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=10>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=10>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2005</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2005</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2005</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=49>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Components of net periodic benefit cost:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Service cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>90</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>78</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>71</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>130</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>111</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>4</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>4</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>11</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>5</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>36</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>32</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>186</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>169</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>153</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>15</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>11</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>11</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected return on assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(36</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(28</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(21</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(216</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(201</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(180</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amortization of prior service cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(10</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(9</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(10</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(3</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(3</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(6</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(6</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amortization of transitional obligation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Recognition of net actuarial (gains)/losses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>16</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>21</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>43</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>75</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>55</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>7</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=50>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net periodic benefit cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>105</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>95</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>101</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>159</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>176</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>137</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>24</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>11</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=50>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total recognized in Accumulated other comprehensive income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(10</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>38</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(155</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>24</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(7</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=50>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total recognized in net periodic benefit cost and other comprehensive income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>95</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>133</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>101</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>200</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>137</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>6</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>11</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>10</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=50>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The estimated net loss and prior service credit that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $31&nbsp;million and $11&nbsp;million, respectively, for AIG&#146;s combined defined benefit pension plans. For the defined benefit postretirement plans, the estimated amortization from Accumulated other comprehensive income for net loss, prior service credit and transition obligation that will be amortized into net periodic benefit cost over the next fiscal year will be less than $5&nbsp;million in the aggregate. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Assumptions</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The weighted average assumptions used to determine the benefit obligations at December&nbsp;31, 2007 and 2006 are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="38%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Pension</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Postretirement</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.00 - 11.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6.50%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.75 - 6.50%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6.50</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.50 - &nbsp;9.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.25%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3.00 - 3.50%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.25</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.25 - 10.75%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.00 - 5.75%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6.00</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.50 - 10.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>The benefit obligations for <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Assumed health care cost trend rates for the U.S. plans were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="77%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>2007</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2>Following year:</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Medical (before age&nbsp;65)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9.00%</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8.00%</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Medical (age&nbsp;65 and older)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>7.00%</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6.70%</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Ultimate rate to which cost increase is assumed to decline</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5.00%</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.00%</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year in which the ultimate trend rate is reached:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Medical (before age&nbsp;65)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2015</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2013</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Medical (age&nbsp;65 and older)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2015</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2013</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>A one percent point change in the assumed healthcare cost trend rate would have the following effect on AIG&#146;s postretirement benefit obligations at December&nbsp;31, 2007 and 2006:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="56%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=17>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>One Percent</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>One Percent</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Increase</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Decrease</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=17>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Non-U.S.&nbsp;plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>12</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(8</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(7</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.&nbsp;plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(3</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG&#146;s postretirement plans provide benefits primarily in the form of defined employer contributions rather than defined employer benefits. Changes in the assumed healthcare cost trend rate are subject to caps for U.S. plans. AIG&#146;s non-U.S. postretirement plans are not subject to caps. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The weighted average assumptions used to determine the net periodic benefit costs for the years ended December&nbsp;31, 2007, 2006 and 2005 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="36%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Pension</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Postretirement</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.&nbsp;Plans*</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.&nbsp;Plans*</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.25 - 10.75%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.00 - 5.75%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6.00</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.50 - 10.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.25%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.25</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected return on assets</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.50 - 10.50%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>N/A</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>N/A</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.75 - 12.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.50 - 5.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.50</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.50 - 10.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.50 - 3.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected return on assets</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.50 - 13.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>N/A</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>N/A</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.75 - 12.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.75%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.50 - 6.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.75</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.50 - 10.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected return on assets</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.15 - 13.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>N/A</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>N/A</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>The benefit obligations for <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Discount Rate Methodology</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The projected benefit cash flows under the AIG U.S.&nbsp;Retirement Plan were discounted using the spot rates derived from the Citigroup Pension Discount Curve at December&nbsp;31, 2007 and 2006 and an equivalent single discount rate was derived resulting in the same liability. This single discount rate was rounded to the nearest 25&nbsp;basis points, namely 6.5&nbsp;percent and 6.0&nbsp;percent at December&nbsp;31, 2007 and 2006, respectively. The rates applied to other U.S.&nbsp;plans were not significantly different from those discussed above. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Both funded and unfunded plans for Japan represent over 62&nbsp;percent of the liabilities of the <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>pension plans at December&nbsp;31, 2007 and 2006, respectively. The discount rate for Japan was selected by reference to the published Moody&#146;s/ S&amp;P AA Corporate Bond Universe at the measurement date having regard to the duration of the plans&#146; liabilities. </DIV> <DIV style="FONT-SIZE: 10pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Plan assets</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The asset allocation percentage by major asset class for AIG&#146;s plans at December&nbsp;31, 2007 and 2006, and the target allocation for 2008 follow:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="43%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=11>Non-U.S.&nbsp;Plans-Allocation</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=11>U.S.&nbsp;Plans-Allocation</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Target</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>Actual</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Actual</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Target</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>Actual</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Actual</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2008</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B>2007</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2008</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B>2007</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Asset class:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>42</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>56</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>64</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Debt securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>32</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>32</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>30</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>100</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>100</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Other includes cash, insurance contracts, real estate, private equity and hedge funds asset classes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; No shares of AIG common stock were included in the U.S.&nbsp;plans at December&nbsp;31, 2007 and 55,680&nbsp;shares of AIG common stock with a value of $4&nbsp;million were included in the U.S.&nbsp;plans at December&nbsp;31, 2006. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The investment strategy with respect to AIG&#146;s pension plan assets is designed to achieve investment returns that will fully fund the pension plan over the long term, while limiting the risk of under funding over shorter time periods. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The expected rate of return with respect to AIG&#146;s domestic pension plan was 8.0&nbsp;percent for years ended December&nbsp;31, 2007 and 2006. This rate of return is an aggregation of expected returns within each asset category that, when combined with AIG&#146;s contribution to the plan, will maintain the plan&#146;s ability to meet all required benefit obligations. The return with respect to each asset class considers both historical returns and the future expectations for such returns. <BR><BR></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Expected Cash Flows</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>Funding for the U.S.&nbsp;pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S.&nbsp;tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. Supplemental and excess plans&#146; payments and postretirement plan payments are deductible when paid. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; During 2007 AIG contributed $396&nbsp;million to its U.S. and <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>pension plans. The annual pension contribution in 2008 is expected to be approximately $118&nbsp;million for U.S. and <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>plans. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The expected future benefit payments, net of participants&#146; contributions, with respect to the defined benefit pension plans and other postretirement benefit plans, are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="56%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Pension</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Postretirement</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>74</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>135</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>17</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2009</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>79</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>130</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2010</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>79</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>139</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>18</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2011</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>85</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>150</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>18</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>85</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>163</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2013-2017</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>474</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,022</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>102</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Defined Contribution Plans</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In addition to several small defined contribution plans, AIG sponsors a voluntary savings plan for domestic employees (the AIG Incentive Savings plan), which provides for salary reduction contributions by employees and matching contributions by AIG of up to seven percent of annual salary depending on the employees&#146; years of service. Pre-tax expense associated with this plan was $114&nbsp;million, $104&nbsp;million and $96&nbsp;million in 2007, 2006 and 2005, respectively. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>19.&nbsp;Benefits Provided by Starr International Company, Inc. and C.V. Starr&nbsp;&amp; Co., Inc.</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>SICO has provided a series of two-year Deferred Compensation Profit Participation Plans (SICO Plans) to certain AIG employees. The SICO Plans came into being in 1975 when the voting shareholders and Board of Directors of SICO, a private holding company whose principal asset is AIG common stock, decided that a portion of the capital value of SICO should be used to provide an incentive plan for the current and succeeding managements of all American International companies, including AIG. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; None of the costs of the various benefits provided under the SICO Plans has been paid by AIG, although AIG has recorded a charge to reported earnings for the deferred compensation amounts paid to AIG employees by SICO, with an offsetting amount credited to additional paid-in capital reflecting amounts deemed contributed by SICO. The SICO Plans provide that shares currently owned by SICO are set aside by SICO for the benefit of the participant and distributed upon retirement. The SICO Board of Directors currently may permit an early payout of units under certain circumstances. Prior to payout, the participant is not entitled to vote, dispose of or receive dividends with respect to such shares, and shares are subject to forfeiture under certain conditions, including but not limited to the participant&#146;s voluntary termination of employment with AIG prior to normal retirement age. Under the SICO Plans, SICO&#146;s Board of Directors may elect to pay a participant cash in lieu of shares of AIG common stock. Following notification from SICO to participants in the SICO Plans that it will settle specific future awards under the SICO Plans with shares rather than cash, AIG modified its accounting for the SICO Plans from variable to fixed measurement accounting. AIG gave effect to this change in settlement method beginning on December&nbsp;9, 2005, the date of SICO&#146;s notice to participants in the SICO Plans. See also Note&nbsp;12(a) Commitments herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Compensation expense in 2006 included various out of period adjustments totaling $61&nbsp;million, primarily relating to stock-splits and other miscellaneous items for the SICO plans. See also Note&nbsp;17 herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In January 2006, C.V. Starr&nbsp;&amp; Co., Inc. (Starr) completed its tender offer to purchase Starr interests from AIG employees. In conjunction with AIG&#146;s adoption of FAS&nbsp;123R, Starr is considered to be an &#147;economic interest holder&#148; in AIG. As a result, compensation expense of $54&nbsp;million was recorded in 2006 results with respect to the Starr tender offer. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a result of its changing relationship with Starr and SICO, AIG has established new executive compensation plans to replace the SICO plans and investment opportunities previously provided by Starr. See Note&nbsp;17 for a description of these plans. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Compensation expense with respect to the SICO Plans aggregated $39&nbsp;million, $108&nbsp;million and $205&nbsp;million in 2007, 2006 and 2005, respectively. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>20.&nbsp;Ownership and Transactions With Related Parties</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Ownership:</B><FONT style="FONT-SIZE: 8.5pt"> According to the Schedule&nbsp;13D filed on March&nbsp;20, 2007 by Starr, SICO, Edward E. Matthews, Maurice R. Greenberg, the Maurice R. and Corinne P. Greenberg Family Foundation, Inc., the Universal Foundation, Inc., the Maurice R. and Corinne P. Greenberg Joint Tenancy Company, LLC and the C.V. Starr&nbsp;&amp; Co., Inc. Trust, these reporting persons could be deemed to beneficially own 354,987,261&nbsp;shares of AIG&#146;s common stock at that date. Based on the shares of AIG&#146;s common stock outstanding at January&nbsp;31, 2008, this ownership would represent approximately 14.1&nbsp;percent of the voting stock of AIG. Although these reporting persons have made filings under Section&nbsp;16 of the Exchange Act, reporting sales of shares of common stock, no amendment to the Schedule&nbsp;13D has been filed to report a change in ownership subsequent to March&nbsp;20, 2007. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;Transactions with Related Parties:</B><FONT style="FONT-SIZE: 8.5pt"> Prior to the termination of their agency relationships with Starr during 2006, AIG and its <FONT size=2>subsidiaries paid commissions to Starr and its subsidiaries for the production and management of insurance business in the ordinary course of business. Payment for the production of insurance business to Starr aggregated approximately $12&nbsp;million in 2007, $47&nbsp;million in 2006, and $214&nbsp;million in 2005. AIG also received no rental fees in 2007, approximately $4&nbsp;million in 2006, and $23&nbsp;million in 2005 from Starr, and paid no rental fees in 2007 or 2006 and approximately $20,000 in 2005 to Starr. AIG also received none in 2007 and 2006 and approximately $2&nbsp;million in 2005, respectively, from SICO, and paid none in 2007 and 2006 and approximately $1&nbsp;million in 2005 to SICO, as reimbursement for services rendered at cost. AIG also paid to SICO $2&nbsp;million in 2007, $2&nbsp;million in 2006, and $3&nbsp;million in 2005 in rental fees. There are no significant receivables from/payables to related parties at December&nbsp;31, 2007.&nbsp;</FONT>&nbsp;</FONT></DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>21.&nbsp;Federal Income Taxes</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>Tax Filings</I> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and its eligible U.S.&nbsp;subsidiaries file a consolidated U.S.&nbsp;federal income tax return. Prior to 2007, Life Insurance subsidiaries of AIG Life Holdings (US), Inc. (AIGLH), formerly known as American General Corporation,&nbsp;also filed a consolidated U.S.&nbsp;federal income tax return and were not eligible to be included in AIG&#146;s consolidated federal income tax return. AIGLH will be included in the 2007 AIG consolidated federal income tax return. Other U.S. subsidiaries included in the consolidated financial statements also file separate U.S.&nbsp;federal income tax returns. Subsidiaries operating outside the U.S.&nbsp;are taxed, and income tax expense is recorded, based on applicable U.S. and foreign statutes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><I>Undistributed Earnings and Distributions from Life Surplus</I> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>U.S.&nbsp;federal income taxes have not been provided on $1.5&nbsp;billion of undistributed earnings of certain U.S.&nbsp;subsidiaries that are not included in the consolidated AIG U.S.&nbsp;federal income tax return. Tax planning strategies are available, and would be utilized, to eliminate the tax liability related to these earnings. U.S.&nbsp;federal income taxes have not been provided on the undistributed earnings of certain <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>subsidiaries to the extent that such earnings have been reinvested abroad indefinitely. At December&nbsp;31, 2007, the cumulative amount of undistributed earnings in these subsidiaries approximated $21.2&nbsp;billion. Determining the deferred tax liability that would arise if these earnings were not permanently reinvested abroad is not practicable. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; A component of life insurance surplus accumulated prior to 1984 is not taxable unless it exceeds certain statutory limitations or is distributed to shareholders. The American Jobs Creation Act of 2004 amended the federal income tax law to permit life insurance companies to distribute amounts from their policyholders&#146; surplus accounts in 2005 and 2006 without incurring federal income tax on the distributions. In 2005 and 2006, AIG made distributions and eliminated the aggregate balance of $945&nbsp;million from its policyholders&#146; surplus accounts. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><I>Tax Examinations</I> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In December 2007, AIG reached a settlement with the IRS in the United States Tax Court for SunAmerica, Inc. and Subsidiaries (&#147;SunAmerica&#148;) for tax years ended September&nbsp;30, 1993 and September&nbsp;30, 1994, which are years prior to AIG&#146;s 1999 acquisition of SunAmerica. The terms of this settlement will be incorporated into the IRS examinations for tax years of SunAmerica from September&nbsp;30, 1995 through December&nbsp;31, 1998, and for SunAmerica Life Insurance Company and Subsidiaries for tax year December&nbsp;31, 1999, to resolve these years. As a result of this settlement, a net refund is due AIG for the periods from 1993 to 1999, the amount of which is immaterial to AIG&#146;s consolidated financial condition. The IRS&#146;s examination of the separate life consolidated federal return for SunAmerica Life and its subsidiaries for years 2000-2002 was closed in January 2008 with a signed settlement agreement. An immaterial amount is payable to the IRS for these years. AIG is in a net refund position for all years 1993-2002 for aggregated SunAmerica audits. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGLH&#146;s tax years prior to 2000 are closed. Although a Revenue Agent&#146;s Report has not yet been issued to AIGLH for years ended December&nbsp;31, 2000, August&nbsp;29, 2001, December&nbsp;31, 2001, and December&nbsp;31, 2002, AIGLH has received from the IRS a notice of proposed adjustment for certain items during that period. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The statute of limitations for all tax years prior to 1997 has now expired for AIG&#146;s consolidated federal income tax return. In June, 2007, AIG filed a refund claim for years <FONT style="WHITE-SPACE: nowrap">1991-1996.</FONT> The refund claim relates to the tax effects of the restatements of AIG&#146;s 2004 and prior financial statements. A refund claim for the tax years ending December&nbsp;31, 1997-2004 will be filed before September&nbsp;30, 2008. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG has executed a partial settlement with the IRS for tax years 1997 through 1999. Two issues remain open, neither one of which, separately or in total, is material to AIG&#146;s consolidated financial condition. The statute of limitations for these years expires on March&nbsp;31, 2008. AIG is currently under examination for the tax years 2000 through 2002. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG believes there are substantial arguments in support of the tax positions taken in its tax returns. Although the final outcome of any issue still outstanding is uncertain, AIG believes that any tax obligation, including interest thereon, would not be material to AIG&#146;s consolidated financial condition, results of operations, or liquidity. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The pretax components of U.S. and foreign income reflect the locations in which such pretax income was generated. The pretax U.S. and foreign income was as follows for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="62%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3,957</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>9,862</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,103</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>12,900</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,825</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,110</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,943</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,687</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15,213</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 10pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The provision for income taxes for the years ended December&nbsp;31, 2007, 2006 and 2005 consists of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="59%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><I>Years Ended December 31,</I></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=right>(in millions)</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign and U.S.&nbsp;components of actual income tax expense:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Current</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,157</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,725</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>974</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>461</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>933</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>426</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Current</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>62</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,764</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,613</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2,225</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>115</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,245</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,455</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,537</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,258</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The U.S.&nbsp;federal income tax rate was 35&nbsp;percent for 2007, 2006 and 2005. Actual tax expense on income differs from the &#147;expected&#148; amount computed by applying the federal income tax rate because of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="33%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=middle colSpan=27>2007 2006 2005</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=26>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=26>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Percent</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Percent</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Percent</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=7><B>Years Ended December&nbsp;31,</B></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>of Pretax</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>of&nbsp;Pretax</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>of&nbsp;Pretax</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=3><I>(dollars in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Amount</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Income</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amount</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Income</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amount</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Income</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=26>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.&nbsp;federal income tax at statutory rate</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,130</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>35.0</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,591</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35.0</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5,325</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35.0</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Adjustments:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Tax exempt interest</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(823</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(9.2</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(718</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(3.3</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(566</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(3.7</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Partnerships and joint ventures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(312</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3.5</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(265</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1.2</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(85</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.5</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Synthetic fuel and other tax credits</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(127</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1.4</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(196</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.9</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(296</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1.9</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of foreign operations</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(294</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3.3</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(132</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.6</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(253</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1.7</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Dividends received deduction</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(129</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1.4</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(102</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.5</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(117</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.8</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">State income taxes</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>45</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>0.5</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>59</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.3</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>86</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.6</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Nondeductible compensation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>41</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>0.5</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.3</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>83</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.5</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">SICO benefit</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(194</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2.2</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>118</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1.3</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>239</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.0</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.5</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=27>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Actual income tax expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,455</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>16.3</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,537</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30.1</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,258</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28.0</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=27>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The components of the net deferred tax liability at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="69%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred tax assets:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Loss reserve discount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,249</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,969</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unearned premium reserve reduction</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,743</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,352</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unrealized depreciation of investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>104</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Loan loss and other reserves</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,408</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,054</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investments in foreign subsidiaries and joint ventures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,121</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>420</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Adjustment to life policy reserves</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,213</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,584</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">NOL&#146;s and tax attributes</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,814</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>222</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Accruals not currently deductible, and other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,305</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,209</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred tax assets<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>12,957</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,810</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Valuation allowance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(223</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(11</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net deferred tax assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>12,734</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,799</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred tax liabilities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred policy acquisition costs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>11,716</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,396</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Flight equipment, fixed assets and intangible assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5,239</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,377</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unrealized appreciation of investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,370</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,041</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>508</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total deferred tax liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>17,996</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>18,651</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net deferred tax liability</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5,262</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>8,852</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>AIG has recorded deferred tax assets for alternative minimum tax credit carry forwards of $101&nbsp;million and $222&nbsp;million at December&nbsp;31, 2007 and 2006, respectively. In 2007, AIG generated net operating loss carryforwards, unused foreign tax credits and general business tax credits in the amount of $4.2&nbsp;billion, $130&nbsp;million and $125&nbsp;million, respectively. Net operating loss carryforwards and general business tax credits may be carried forward for twenty years while foreign tax credits may be carried forward for ten years. Unused minimum tax credits are available for future use without expiration.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 4pt; FONT-SIZE: 8.2pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="68%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="11%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="11%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=3><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=3><B>2007</B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Gross unrecognized tax benefits at January&nbsp;1, 2007</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>1,138</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Agreed audit adjustments with taxing authorities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">included in the beginning balance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(188</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increases in tax positions for prior years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>646</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Decreases in tax positions for prior years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(189</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increases in tax positions for current year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>82</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Lapse in statute of limitations</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Settlements</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(178</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=7>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Gross unrecognized tax benefits at December&nbsp;31, 2007</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>1,310</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=7>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, AIG&#146;s unrecognized tax benefits, excluding interest and penalties, were $1.3&nbsp;billion, which includes $299&nbsp;million related to tax positions the disallowance of which would not affect the annual effective income tax rate. Accordingly, the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $1.0&nbsp;billion. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At January&nbsp;1, 2007 and December&nbsp;31, 2007, AIG had accrued $175&nbsp;million and $281&nbsp;million, respectively, for the payment of interest (net of the federal benefit) and penalties. For the year ended December&nbsp;31, 2007, AIG recognized $170&nbsp;million of interest (net of the federal benefit) and penalties in the Consolidated Statement of Income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG continually evaluates adjustments proposed by taxing authorities. At December&nbsp;31, 2007, such proposed adjustments would not result in a material change to AIG&#146;s consolidated financial condition. However, AIG believes that it is reasonably possible that the balance of the unrecognized tax benefits could decrease by $50 to $150&nbsp;million within the next twelve months due to settlements or the expiration of statutes. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Listed below are the tax years that remain subject to examination by major tax jurisdictions:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 4pt; FONT-SIZE: 8.2pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="76%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="19%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=4>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><B>Major Tax Jurisdictions</B></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Open Tax Years</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=4>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">United States</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1997-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">United Kingdom</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2003-2006</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Hong Kong</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1997-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Malaysia</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1999-2006</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Singapore</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1993-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Thailand</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2001-2006</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Taiwan</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2000-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Japan</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2000-2006</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Korea</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2001-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">France</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2003-2006</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The reserve for uncertain tax positions increased in the fourth quarter 2007 by $210&nbsp;million for items attributable to prior restatements, including certain tax positions associated with compensation deductions. In addition, income tax expense has been reduced by $162&nbsp;million for interest receivable from the IRS attributable to refund claims for prior restatements. </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left><B><FONT color=#002868>22.&nbsp;Quarterly Financial Information (Unaudited)</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following quarterly financial information for each of the three months ended March&nbsp;31, June&nbsp;30, September&nbsp;30 and December&nbsp;31, 2007 and 2006 is unaudited. However, in the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results of operations for such periods, have been made.</FONT></B> </DIV> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Consolidated Statements of Operations</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="30%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=34>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=30>Three Months Ended</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=30>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>March&nbsp;31,</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>June&nbsp;30,</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>September&nbsp;30,</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>December&nbsp;31,</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=3><I>(in millions, except per share data)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007*</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007*</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=34>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>30,645</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>27,278</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>31,150</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>26,854</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>29,836</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>29,247</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,433</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>30,008</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income (loss) before income taxes, minority interest and cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,172</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,793</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,328</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,241</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,879</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,301</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(8,436</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,352</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income (loss) before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,130</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,161</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,277</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,190</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,085</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,224</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5,292</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,439</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,130</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,195</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,277</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,190</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,085</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>4,224</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5,292</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,439</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Earnings per common share:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Basic</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income (loss) before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.58</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.64</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.23</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.20</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.62</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2.08</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.32</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.58</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.22</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.64</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.23</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.20</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.62</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2.08</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1.32</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Diluted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income (loss) before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.58</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.64</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.19</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2.08</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.31</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.58</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.22</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.64</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.19</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2.08</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.31</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Average shares outstanding:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Basic</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,612</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,605</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,602</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,606</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,576</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,607</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,550</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,610</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Diluted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,621</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,624</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,613</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,625</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,589</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,626</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,550</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,622</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Both revenues and operating income include (i)&nbsp;an unrealized market valuation loss of $352 million and $11.1&nbsp;billion in the third quarter and fourth quarter of 2007, respectively, on AIGFP&#146;s super senior credit default swap portfolio and (ii)&nbsp;other-than-temporary impairment charges of $3.3&nbsp;billion in the fourth quarter of 2007.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000">&nbsp;</DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>23.&nbsp;Information Provided in Connection With Outstanding Debt</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following condensed consolidating financial statements reflect the following:</FONT></B> </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 8pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap">&#149; &nbsp;</FONT></TD> <TD align=left>AIGLH, formerly known as American General Corporation, is a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH.</TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap">&#149; &nbsp;</FONT></TD> <TD align=left>AIG Liquidity Corp. is a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all obligations of AIG Liquidity Corp.</TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap">&#149; &nbsp;</FONT></TD> <TD align=left>AIG Program Funding, Inc. is a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all obligations of AIG Program Funding, Inc., which was established in 2007.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Condensed Consolidating Balance Sheet</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 3pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="17%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=30>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>American</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=23>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>International</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Group, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Liquidity</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Program</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>(As Guarantor)</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIGLH</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Corp.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Funding, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Subsidiaries</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Eliminations</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=3><B>AIG</B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>December&nbsp;31, 2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assets:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investments and financial services assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14,648</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>859,063</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(21,790</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>851,961</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>84</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,199</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,284</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Carrying value of subsidiaries and partially owned companies, at equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>111,714</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>24,396</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,542</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(153,998</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>654</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,414</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,592</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>193,445</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>155</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>205,606</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135,860</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>27,029</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,073,249</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(175,633</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,060,505</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>43</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>534,369</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(75</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>534,337</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>36,045</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,136</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>156,003</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(18,135</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>176,049</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,971</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,826</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>250,506</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3,085</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>254,218</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40,059</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,962</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>940,878</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(21,295</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>964,604</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Preferred shareholders&#146; equity in subsidiary companies</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>100</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>100</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total shareholders&#146; equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>95,801</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22,067</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>132,271</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(154,338</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>95,801</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total liabilities, preferred shareholders&#146; equity in subsidiary companies and shareholders&#146; equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135,860</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>27,029</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,073,249</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(175,633</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,060,505</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">December&nbsp;31, 2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assets:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investments and financial services assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,346</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>800,350</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(14,822</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>792,874</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>76</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,514</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,590</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Carrying value of subsidiaries and partially owned companies, at equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>109,125</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,967</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,436</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(144,427</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,101</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,989</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,622</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>179,183</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,949</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>183,845</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>120,536</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>30,589</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>989,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(161,198</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>979,410</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>498,263</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(64</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>498,220</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,157</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,136</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>146,206</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(14,820</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>148,679</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,681</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,508</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>224,936</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,482</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>230,643</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>18,859</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,644</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>869,405</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(16,366</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>877,542</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Preferred shareholders&#146; equity in subsidiary companies</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>191</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>191</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total shareholders&#146; equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>101,677</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>24,945</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>119,887</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(144,832</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>101,677</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total liabilities, preferred shareholders&#146; equity in subsidiary companies and shareholders&#146; equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>120,536</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>30,589</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>989,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(161,198</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>979,410</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left><I>*&nbsp;Less than $1&nbsp;million.</I> </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B>Condensed Consolidating Statement of Income</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="19%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=28>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>American</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=23>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>International</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Group, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Liquidity</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Program</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Guarantor</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIGLH</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Corp.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Funding, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Subsidiaries</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Eliminations</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=28>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>Year Ended December&nbsp;31, 2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>(2,379</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(152</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>11,474</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,943</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity in undistributed net income of consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,121</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(27</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3,094</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Dividend income from consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,685</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,358</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(6,043</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(773</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>248</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,980</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,455</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Minority interest</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,288</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,288</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>6,200</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>931</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,206</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(9,137</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year Ended December&nbsp;31, 2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(786</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>122</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>22,351</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,687</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity in undistributed net income of consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,308</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,263</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(14,571</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Dividend income from consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,689</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>602</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(2,291</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>197</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(131</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,471</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,537</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Minority interest</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,136</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,136</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,048</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,118</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,744</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(16,862</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,048</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year Ended December&nbsp;31, 2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(1,569</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(200</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>16,982</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15,213</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity in undistributed net income of consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,156</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,530</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(12,686</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Dividend income from consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,958</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,958</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>68</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(92</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,282</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,258</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Minority interest</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(478</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(478</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,477</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,422</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,222</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(14,644</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,477</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>*&nbsp;Less than $1&nbsp;million.</I> </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B>Condensed Consolidating Statements of Cash Flow</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="28%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>American</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=19>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>International</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Group, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Liquidity</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Program</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Guarantor</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIGLH</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Corp.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Funding, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Subsidiaries</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=right colSpan=25> <DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 2px solid">&nbsp;</DIV></TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>Year Ended December&nbsp;31, 2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) operating activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(770</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>214</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>35,727</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>35,171</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets disposed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,057</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>175,201</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>178,258</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets acquired</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(9,666</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(235,729</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(245,395</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(4,128</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,258</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(870</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash used in investing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(10,737</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(57,270</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(68,007</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Issuance of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,582</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>82,628</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>103,210</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Repayments of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,253</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(78,823</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(80,076</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Payments advanced to purchase shares</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(6,000</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(6,000</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash dividends paid to shareholders</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,881</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,881</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>67</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(213)</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,373</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,227</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) financing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>11,515</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(213)</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22,178</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>33,480</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of exchange rate changes on cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Change in cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>685</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>694</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>76</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,514</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,590</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>84</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,199</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,284</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=26> <DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 2px solid">&nbsp;</DIV></TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year Ended December&nbsp;31, 2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) operating activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(590</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>258</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,619</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,287</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets disposed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,402</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>154,704</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>158,106</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets acquired</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(8,298</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(216,663</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(224,961</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(2,747</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(67)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,717</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,097</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash used in investing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(7,643</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(67)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(60,242</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(67,952</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Issuance of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>12,038</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61,950</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>73,988</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Repayments of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(2,417</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(34,072</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(36,489</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash dividends paid to shareholders</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,638</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,638</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>136</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(191)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25,438</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25,383</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) financing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,119</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(191)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>53,316</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61,244</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of exchange rate changes on cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>114</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>114</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Change in cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(114</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(193</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(307</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>190</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,707</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,897</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>76</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,514</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,590</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=26> <DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 2px solid">&nbsp;</DIV></TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year Ended December&nbsp;31, 2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by operating activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,854</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>805</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20,754</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>23,413</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets disposed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>185,884</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>185,884</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets acquired</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(598</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(245,804</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(246,402</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,083</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(247)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>389</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(941</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash used in investing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,681</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(247)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(59,531</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(61,459</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Issuance of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,101</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>64,960</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>67,061</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Repayments of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(607</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(398)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(51,099</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(52,104</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash dividends paid to shareholders</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,421</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,421</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(73</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(160)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>24,794</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>24,561</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) financing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(558)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38,655</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38,097</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of exchange rate changes on cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(163</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(163</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Change in cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>173</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(285</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(112</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,992</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,009</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>190</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,707</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,897</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=26> <DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 2px solid">&nbsp;</DIV></TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>*&nbsp;Less than $1&nbsp;million.</I> </DIV></BODY></HTML> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>24.&nbsp;Cash Flows</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>As part of its ongoing remediation activities, AIG has made certain revisions to the Consolidated Statement of Cash Flows, primarily relating to the effect of reclassifying certain policyholders&#146; account balances, the elimination of certain intercompany balances and revisions related to separate account assets. Accordingly, AIG revised the previous periods presented to conform to the revised presentation.</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The revisions and their effect in the consolidated statement of cash flows for the years ended 2006 and 2005 are presented below:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="69%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>For the Years Ended</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>December&nbsp;31,</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from operating activities&nbsp;&#151; As previously reported</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,829</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,382</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Revisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(542</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,969</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from operating activities&nbsp;&#151; As revised</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,287</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>23,413</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing activities&nbsp;&#151; As previously reported</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(67,040</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(62,500</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Revisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(912</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,041</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing activities&nbsp;&#151; As revised</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(67,952</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(61,459</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities&nbsp;&#151; As previously reported</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>59,790</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>37,169</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Revisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,454</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>928</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities&nbsp;&#151; As revised</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>61,244</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>38,097</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>There was no effect on ending cash balances.</I></DIV></BODY></HTML> 6967000000 197000000 -24000000 80000000 -532000000 81000000 397372000000 386869000000 393170000000 377163000000 21581000000 21437000000 22157000000 22154000000 9982000000 10836000000 555000000 522000000 17900000000 13256000000 12588000000 10662000000 21376000000 14855000000 2370000000 2539000000 2600000000 2485000000 33727000000 28418000000 77000000 64000000 399000000 75662000000 69306000000 80641000000 69306000000 58823000000 42111000000 51351000000 27483000000 6878000000 2339000000 72330000000 2197000000 EX-100.SCH 3 aig-20071231.xsd EX-100.SCH link:presentationLink link:definitionLink link:calculationLink link:presentationLink link:calculationLink link:presentationLink link:calculationLink link:presentationLink link:presentationLink link:calculationLink link:presentationLink link:definitionLink link:presentationLink link:presentationLink EX-100.CAL 4 aig-20071231_cal.xml EX-100.CAL EX-100.LAB 5 aig-20071231_lab.xml EX-100.LAB Commissions, expenses and taxes payable Accumulated other comprehensive income (loss) Balance, at end of year Balance, at beginning of year Accumulated other comprehensive income (loss), end of year Accumulated depreciation, real estate and other fixed assets Acquisitions, net of cash acquired Acquisitions, net of cash acquired Amortization of deferred policy acquisition costs Debt assumed on acquisitions and warehoused investments Policyholders' contract deposits Additional paid-in capital Net additions to real estate, fixed assets, and other assets Net additions to real estate, fixed assets, and other assets Depreciation expenses, principally flight equipment Net unrealized (gain) loss on swaps, options and forward transactions Net unrealized (gain) loss on swaps, options and forward transactions Adjustments to reconcile net income to net cash provided by operating activities: Total adjustments Consolidated Balance Sheet Interest Income taxes payable Spot Commodities Spot Commodities Changes in operating assets and liabilities: Commissions, expenses and taxes payable Reserve for losses and loss expenses Change in securities lending invested collateral Commercial paper and extendible commercial notes Common stock, shares authorized Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued 2007 and 2006 - 2,751,327,476 Comprehensive income (loss) Comprehensive income (loss) Current income taxes (benefits) Deferred income taxes (benefits) Capitalization of deferred policy acquisition costs Capitalization of deferred policy acquisition costs Deferred policy acquisition costs Policyholders' contract deposits Trust deposits and deposits due to banks and other depositors Unreallized gain on swaps, options and forward transactions Net income Equity in income of partially owned companies and other invested assets Equity in income of partially owned companies and other invested assets Effect of exchange rate changes on cash Incurred policy losses and benefits Securities purchased under agreements to resell, at contract value Funds held by companies under reinsurance treaties Hybrid financial instruments, at fair value Other-than-temporary impairments Consolidated Statement of Income Taxes Income taxes payable Investment income due and accrued Investment income due and accrued Investment assets: Liabilities: Liabilities, preferred shareholders' equity in subsidiary companies and shareholders' equity: Total liabilities, preferred shareholders' equity in subsidiary companies and shareholders' equity Total liabilities Loans held for sale Securities available for sale, at fair value (cost: 2007 - $40,157; 2006 - $45,912) Bonds held to maturity, at amortized cost (fair value: 2007 - $22,157; 2006 - $22,154) Minority interest Minority interest Minority interest Cash flows from financing activities: Net cash provided by financing activities Net cash provided by financing activities Cash flows from investing activities: Net cash used in investing activities Net cash used in investing activities Cash flows from operating activities: Net cash provided by operating activities Net cash provided by operating activities Change in other deposits Securities purchased under agreements to resell Securities sold under agreements to repurchase Net income Net income Net investment income Allowance for Mortgage and other loans receivable Revenues: Revenues Total revenues Payments advanced to purchase treasury stock Payments advanced to purchase treasury stock Other, net Other assets Other assets and liabilities - net Other assets and liabilities - net Change in pension and postretirement unrecognized periodic benefit (cost) Net derivative gains arising from cash flow hedging activities - net of reclassification adjustments Foreign currency translation adjustments Other comprehensive income (loss): Minimum pension liability adjustment Accumulated other comprehensive income (loss), end of year Other comprehensive income (loss) Balance, beginning of year Balance, end of year Unrealized (depreciation) appreciation of investments - net of reclassification adjustments Unrealized (depreciation) appreciation of investments - net of reclassification adjustments Deferred income tax benefit (expense) on above changes Deferred income tax benefit (expense) on above changes Other, net Other policyholders' funds Other policyholders' funds Short-term investments, at cost (approximates fair value) Trade payables Cash dividends paid to shareholders Cash dividends paid to shareholders Allowance for premiums and insurance balances receivable Sales and maturities of fixed maturity securities available for sale and hybrid investments Issuance of treasury stock Long-term borrowings issued Proceeds from fixed maturity securities held to maturity Sales or distributions of other invested assets Real estate and other fixed assets, net of accumulated depreciation (2007 - $5,446; 2006 - $4,940) Provision for finance receivable losses Finance receivables held for investment - originations and purchases Finance receivables held for investment - originations and purchases Purchases of fixed maturity securities held to maturity Purchases of fixed maturity securities held to maturity Purchases of other invested assets Purchases of other invested assets Reinsurance assets, net of allowance (2007 - $520; 2006 - $536) Reinsurance assets Reinsurance assets Repayments on long-term borrowings Repayments on long-term borrowings Acquisition of treasury stock Acquisition of treasury stock Cumulative effect of accounting changes, net of tax Retained earnings Premiums and other considerations Bonds available for sale, at fair value (amortized cost: 2007 - $393,170; 2006 - $377,163) Securities lending invested collateral, at fair value (cost: 2007 - $80,641; 2006 - $69,306) Securities and spot commodities sold but not yet purchased, at fair value Insurance acquisition and other operating expenses Separate and variable accounts Separate and variable accounts Consolidated Statement of Cash Flows Consolidated Statement of Shareholders' Equity Shareholders' Equity: Supplementary disclosure of cash flow information: Noncash revenues, expenses, gains and losses included in income: Treasury stock, at cost: Issued under stock plans Issued under stock plans Diluted Basic Policyholders' contract withdrawals Policyholders' contract withdrawals Common stock: Cash Cash at beginning of year Cash at end of year Securities available for sale, at cost Bonds available for sale, at amortized cost Bonds available for sale, at fair value (amortized cost: 2007 - $393,170; 2006 - $377,163) Bonds held to maturity, at fair value Total assets Bond trading securities, at fair value (includes hybrid financial instruments: 2007 - $555; 2006 - $522) Common and preferred stocks trading, at fair value Trading securities, at fair value Investment income due and accrued Finance receivables, net of allowance (2007 - $878; 2006 - $737) (includes finance receivables held for sale: 2007 - $233; 2006 - $1,124) Allowance for finance receivables Scenario Domain Statement [Table] Statement Scenario Axis Assets: Statement - Line items Net income: Net actuarial loss, before tax Prior service credit, before tax Treasury stock, at cost; 2007 - 221,743,421; 2006 - 150,131,273 shares of common stock (including 119,293,487 and 119,278,644 shares, respectively, held by subsidiaries) Treasury stock, at cost; 2007 - 221,743,421; 2006 - 150,131,273 shares of common stock (including 119,293,487 and 119,278,644 shares, respectively, held by subsidiaries) Adjustment to initially apply FAS 158, net of tax Purchases of fixed maturity securities available for sale and hybrid investments Purchases of fixed maturity securities available for sale and hybrid investments Purchases of equity securities available for sale Purchases of equity securities available for sale Sales of equity securities available for sale Other liabilities (includes hybrid financial instruments at fair value: 2007 - $47; 2006 - $111) Net income Net income Premiums and insurance balances receivable, net of allowance (2007 - $662; 2006 - $756) Common stock, shares issued Long-term borrowings Basic Diluted Earnings per common share: Trade receivables and payables - net Trade receivables and payables - net Principal payments received on finance receivables held for investment Funds held under reinsurance treaties Funds held under reinsurance treaties Unearned premiums Common stock, par value Treasury stock, Shares of common stock Deferred income tax benefit (expense) on above changes Deferred income tax expense on above changes Deferred income tax benefit (expense) on above changes Securities lending payable Securities sold under agreements to repurchase, at contract value Total shareholders' equity Balance, beginning of year Balance, end of year Shareholders' equity Spot commodities Income taxes (benefits): Total income taxes Income taxes Foreign exchange transaction (gains) losses Foreign exchange transaction (gains) losses Cumulative effect of accounting changes, net of tax Cumulative effect of accounting changes, net of tax Cumulative effect of accounting changes, net of tax Comprehensive income (loss): Summary: Unrealized loss on swaps, options and forward transactions Other income Benefits and expenses: Total benefits and expenses Benefits and expenses Trade receivables Statement - Shareholders' Equity Component Axis Additional paid-in capital: Retained earnings: Unrealized appreciation (depreciation) of investments, net of tax: Accumulated other comprehensive income (loss): Foreign currency translation adjustments, net of tax: Retirement plan liabilities adjustment, net of taxes: Statement - Shareholders' Equity Component Domain Net derivative gains (losses) arising from cash flow hedging activities: Net realized capital gains (losses) Goodwill Income before cumulative effect of accounting changes Income before cumulative effect of accounting changes Income before cumulative effect of accounting changes Cost of shares acquired Adjusted balance, beginning of year Cost of shares acquired Commitments, Contingencies and Guarantees (See Note 12) Dividends to common shareholders ($0.77, $0.65 and $0.63 per share, respectively) Balance, beginning of year (shares) Balance, end of year (shares) Shares issued Investments and financial services assets: Investments and financial services assets Total investments and financial services assets Total investments and financial services assets Fixed maturities: Equity securities: Common stocks available for sale, at fair value (cost: 2007 - $12,588; 2006 - $10,662) For an unclassified balance sheet, this item represents common stocks not categorized as trading. Equity securities represent ownership interests or the right to acquire ownership interests in corporations and other legal entities which ownership interest is represented by shares of common or preferred stock (which is not mandatorily redeemable or redeemable at the option of the holder), convertible securities, stock rights, or stock warrants. Unrealized gains and losses related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. Common stocks available for sale, at cost This item represents the cost of common stocks, which are not categorized as trading. Preferred stocks available for sale, at fair value (cost: 2007 - $2,600; 2006 - $2,485) For an unclassified balance sheet, this item represents preferred stocks not categorized as trading. Equity securities represent ownership interests or the right to acquire ownership interests in corporations and other legal entities which ownership interest is represented by shares of common or preferred stock (which is not mandatorily redeemable or redeemable at the option of the holder), convertible securities, stock rights, or stock warrants. Unrealized gains and losses related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. Preferred stocks available for sale, at cost This item represents the cost of preferred stocks, which are not categorized as trading. Mortgage and other loans receivable, net of allowance (2007 - $77; 2006 - $64) (includes loans held for sale: 2007 - $399) Includes mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. Mortgage loans on real estate and collateral, commercial and guaranteed loans are carried at unpaid principal balances less credit allowances and plus or minus adjustments for the accretion or amortization of discount or premium. Policy loans are carried at unpaid principal amount. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. Financial services assets: Flight equipment primarily under operating leases, net of accumulated depreciation (2007 - $10,499; 2006 - $8,835) Passenger aircraft, freighter aircraft, and flight equipment stated at cost, net of accumulated depreciation. Major additions, modifications and interest are capitalized. Accumulated depreciation, flight equipment primarily under operating leases The cumulative amount of depreciation, depletion and amortization (related to flight equipment) that has been recognized in the income statement. Finance receivables held for sale Finance receivables held for sale Securities lending invested collateral, at cost The cost as of the balance sheet date of the assets received as collateral against securities loaned to other broker-dealers. Borrowers of securities generally are required to provide collateral to the lenders of securities, commonly cash but sometimes other securities or standby letters of credit, with a value slightly higher than that of the securities borrowed. Other invested assets Other invested assets consists of investments not otherwise specified in the taxonomy. Allowance for reinsurance assets The valuation allowance as of the balance sheet date to reduce the gross amount of reinsurance assets to estimated net realizable value. Investments in partially owned companies Represents investments accounted for under the equity method that are entered into for strategic purposes and not solely for capital appreciation or for income generation. Future policy benefits for life and accident and health insurance contracts The sum of the known and estimated amounts payable as of the balance sheet date to life insurance policyholders that relates to insured events which can be viewed as either (a) the present value of future benefits to be paid to or on behalf of policyholders and expenses less the present value of future net premiums payable under the insurance contracts or (b) the accumulated amount of net premiums already collected less the accumulated amount of benefits and expenses already paid to or on behalf of policyholders. Additionally, the amount needed to reflect the estimated ultimate cost of settling claims relating to accident and health insurance insured events that have occurred on or before a particular date (ordinarily, the balance sheet date) and the amount needed to provide for the estimated ultimate cost required to investigate and settle claims relating to insured events that have occurred on or before a particular date (ordinarily, the balance sheet date), whether or not reported to the insurer at that date. Insurance balances payable The carrying amount as of the balance sheet date of the following combination (a) the known and estimated amounts owed to insurers under reinsurance treaties or other arrangements and (b) any reserves for outstanding life insurance and accident and health claims, net of applicable reinsurance. Financial services liabilities: Hybrid financial instruments, at fair value Other liabilities, hybrid financial instruments at fair value Preferred shareholders' equity in subsidiary companies Relates principally to outstanding preferred stock or interest of a wholly owned subsidiary. Cash distributions on such preferred stock or interest are accounted for as interest expense. Payments advanced to purchase shares Payments advanced to purchase shares under structured share repurchase agreements providing for the purchase of shares over time. Payments advanced to purchase shares Treasury stock, shares held by subsidiaries Treasury stock, shares held by subsidiaries Asset type [Axis] Assets [Domain] Financial services assets: Unrealized market valuation losses on AIGFP super senior credit default swap portfolio Unrealized market valuation losses on AIGFP super senior credit default swap portfolio Unrealized market valuation losses on AIGFP super senior credit default swap portfolio Net gains on sales of securities available for sale and other assets Net gains on sales of securities available for sale and other assets Net gains on sales of securities available for sale and other assets Net unrealized (gains) losses on non-AIGFP derivative assets and liabilities Changes in net unrealized (gains) losses on derivative instruments, such as swaps, forwards, options not entered into by broker dealer entities. Net unrealized (gains) losses on non-AIGFP derivative assets and liabilities Amortization of premium and discount on securities and long-term borrowings Amortization of premium and discount on securities and long-term borrowings includes: (a) Accretion (Amortization) of Discounts and Premiums, Investments:The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by (used in) operations using the indirect method. (b) Amortization of Financing Costs and Discounts, Total: The component of interest expense representing the noncash expenses charged against earnings in the period to allocate debt discount and premium, and the costs to issue debt and obtain financing over the related debt instruments. General and life insurance reserves The net change in the beginning and end of period of general and life insurance reserve balances; shall be classified as cash flows from operating activities. Premiums and insurance balances receivable and payable - net Represents (a) changes in the carrying amount, net of allowance for doubtful accounts, of all premiums and other types of receivables due from other persons or entities and (b) changes in the carrying amount of the following combination (1) the known and estimated amounts owed to insurers under reinsurance treaties or other arrangements and (2) any reserves for outstanding life insurance and accident and health claims, net of applicable reinsurance. Premiums and insurance balances receivable and payable - net Securities and spot commodities sold but not yet purchased The cash flow from securities and spot commodities sold under the agreement to repurchase such investments. Finance receivables and other loans held for sale - originations and purchases Originations and purchases of Finance receivables and other loans held for sale Finance receivables and other loans held for sale - originations and purchases Sales of finance receivables and other loans - held for sale Sales of finance receivables and other loans - held for sale Sales of flight equipment The cash inflow from the sale of passenger aircraft, freighter aircraft, or flight equipment. Payments received on mortgage and other loans receivable The cash inflow associated with mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. Purchases of flight equipment The cash outflow for acquisition of or capital improvements on passenger aircraft, freighter aircraft, or flight equipment. Purchases of flight equipment Mortgage and other loans receivable issued The cash outflow associated with mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. Mortgage and other loans receivable issued Net change in short-term investments The cash flows associated with short-term investments, which consist of interest-bearing cash equivalents, time deposits, and investments with original maturities within one year from the date of purchase, such as commercial paper. Net change in short-term investments Net change in non-AIGFP derivative assets and liabilities The cash flows associated with derivative instruments, such as swaps, forwards, options not entered into by broker dealer entities. Net change in non-AIGFP derivative assets and liabilities Change in commercial paper and extendible commercial notes The cash flows associated with unsecured obligations issued by banks, corporations and other borrowers to investors. Change in securities lending payable Cash flows associated with securities lending payable. Redemption of subsidiary company preferred stock Cash flows associated with outstanding preferred stock or interest of a wholly owned subsidiary. Trading Securities Trading Securities Bonds, common and preferred stocks trading Bonds, common and preferred stocks trading Cash paid during the period for: Non-cash financing activities: Non-cash investing activities: Treasury stock acquired using payments advanced to purchase shares Treasury stock acquired using payments advanced to purchase shares Interest credited to policyholder accounts included in financing activities Interest credited to policyholder accounts included in financing activities Unrealized market valuation losses on AIGFP super senior credit default swap portfolio Unrealized market valuation losses on AIGFP super senior credit default swap portfolio Unrealized market valuation losses on AIGFP super senior credit default swap portfolio Income before income taxes, minority interest and cumulative effect of accounting changes Income before income taxes, minority interest and cumulative effect of accounting changes Income before income taxes, minority interest and cumulative effect of accounting changes Income before minority interest and cumulative effect of accounting changes Income before minority interest and cumulative effect of accounting changes Income before minority interest and cumulative effect of accounting changes Average shares outstanding: Payments advanced to purchase shares: Excess of cost over proceeds of common stock issued under stock plans Excess of cost over proceeds of common stock issued under stock plans Other adjustments to APIC Represents changes in Additional paid in capital not otherwise specified in the taxonomy. Payments advanced Payments advanced during the period to purchase shares under structured share repurchase agreements providing for the purchase of shares over time. Shares purchased Shares purchased during the period under structured share repurchase agreements providing for the purchase of shares over time. Other Other Document and Entity Information Shares Cash represents cash on hand and non-interest bearing demand deposits. Cash Cash at beginning of year Cash at end of year Change in cash Change in cash The net change between the beginning and ending balance of cash on hand and non-interest bearing deposits Notes to Consolidated Financials Organization, Consolidation,Presentation of Financial Statements and Significant Accounting Policies Disclosure Description containing the entire organization, consolidation, basis of presentation of financial statements and significant accounting policies disclosure. Investments Describes statutory deposits, net investment income, net realized gains and losses, fair value of available for sale and held to maturity securities, non-income producing invested assets, gross unrealized losses on investments, other invested assets and investment in life settlement contracts. Reinsurance Disclosure Deferred Policy Acquisition Costs Disclosure Describes the nature and amount of capitalized costs incurred to write or acquire insurance contracts, the basis for and methodology for capitalizing such costs, the accounting for such deferred acquisition costs (DAC) when modifications or internal replacements of related insurance contracts occur and the effect on results of operations, and the methodology and amount of amortization. Reserve for Losses and Loss Expenses and Future Life Policy Benefits and Policyholders' Contract Deposits Variable Life and Annuity Contracts Preferred Shareholders' Equity in Subsidiary Companies Shareholders' Equity and Earnings Per Share Benefits Provided by Starr International Company, Inc. and C.V. Starr & Co., Inc. Condensed Consolidating Financial Information Cash Flows Restated EX-100.PRE 6 aig-20071231_pre.xml EX-100.PRE EX-100.DEF 7 aig-20071231_def.xml EX-100.DEF XML 8 R8.xml IDEA: Statement Of Comprehensive Income 1.0.0.3 false Statement Of Comprehensive Income (USD $) false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 2 0 us-gaap_ComprehensiveIncomeNetOfTaxAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 3 1 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 true true 6200000000 6200000000 false false 2 true true 14048000000 14048000000 false false 3 true true 10477000000 10477000000 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 false 4 1 us-gaap_OtherComprehensiveIncomeLossNetOfTaxPeriodIncreaseDecreaseAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 5 2 us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax us-gaap true credit duration monetary Gross appreciation or the gross loss in value of the total of unsold available-for-sale securities during the period being... false false false false false false false false false 1 false true -8046000000 -8046000000 false false 2 false true 2574000000 2574000000 false false 3 false true -3577000000 -3577000000 false false Gross appreciation or the gross loss in value of the total of unsold available-for-sale securities during the period being reported (except when designated as a fair value hedge). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 17 false 6 3 us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax us-gaap true debit duration monetary Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being... false false false false false false false false false 1 false true 2338000000 2338000000 false false 2 false true -839000000 -839000000 false false 3 false true 1599000000 1599000000 false false Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being reported on. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 7 2 us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentBeforeTaxPeriodIncreaseDecrease us-gaap true na duration monetary Pre tax adjustment that results from the process of translating subsidiary financial statements and foreign equity... false false false false false false false false false 1 false true 1325000000 1325000000 false false 2 false true 1283000000 1283000000 false false 3 false true -926000000 -926000000 false false Pre tax adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains (losses). Includes gain (loss) on foreign currency forward exchange contracts. Includes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements. Includes the gain or loss on a derivative instrument or nonderivative financial instrument that may give rise to a foreign currency transaction gain or loss under SFAS 52 and that have been designated and have qualified as hedging instruments for hedges of the foreign currency exposure of a net investment in a foreign operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 52 -Paragraph 13, 20, 31 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 19, 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph c false 8 3 us-gaap_OtherComprehensiveIncomeForeignCurrencyTranslationAdjustmentTax us-gaap true debit duration monetary Tax effect of the adjustment that results from the process of translating subsidiary financial statements and foreign equity... false false false false false false false false false 1 false true -140000000 -140000000 false false 2 false true -347000000 -347000000 false false 3 false true 386000000 386000000 false false Tax effect of the adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 9 2 us-gaap_OtherComprehensiveIncomeDerivativesQualifyingAsHedgesBeforeTaxPeriodIncreaseDecrease us-gaap true na duration monetary Pre tax change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion... false false false false false false false false false 1 false true -133000000 -133000000 false false 2 false true 13000000 13000000 false false 3 false true 35000000 35000000 false false Pre tax change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges, net of reclassifications into earnings during the period. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset or liability or a forecasted transaction that is attributable to a particular risk. Includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 31, 46 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph (b)(1) Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 46 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 24, 26 false 10 3 us-gaap_OtherComprehensiveIncomeDerivativesQualifyingAsHedgesTaxEffectPeriodIncreaseDecrease us-gaap true na duration monetary Total tax effect of the change in accumulated gains and losses from derivative instruments designated and qualifying as the... false false false false false false false false false 1 false true 73000000 73000000 false false 2 false true -15000000 -15000000 false false 3 false true -7000000 -7000000 false false Total tax effect of the change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges after taxes. The change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 11 2 us-gaap_OtherComprehensiveIncomeDefinedBenefitPlansAdjustmentBeforeTaxPeriodIncreaseDecrease us-gaap true na duration monetary Amounts recognized in other comprehensive income (but not yet recognized in net periodic benefit cost), including the net... false false false false false false false false false 1 false true 173000000 173000000 false false 2 false true 80000000 80000000 false false 3 false true 81000000 81000000 false false Amounts recognized in other comprehensive income (but not yet recognized in net periodic benefit cost), including the net gain (loss) and net prior service cost (credit) arising during the period. Also includes reclassification adjustments out of other comprehensive income as a result of being recognized as components of net periodic benefit cost for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 22, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7 -Subparagraph a Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph C3 false 12 3 us-gaap_OtherComprehensiveIncomeDefinedBenefitPlansTax us-gaap true debit duration monetary Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. false false false false false false false false false 1 false true -57000000 -57000000 false false 2 false true -74000000 -74000000 false false 3 false true -68000000 -68000000 false false Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 13 2 us-gaap_OtherComprehensiveIncomeLossNetOfTaxPeriodIncreaseDecrease us-gaap true na duration monetary This element represents Other Comprehensive Income (Loss), Net of Tax, for the period. Includes deferred gains (losses) on... false false false false false false false false false 1 false true -4467000000 -4467000000 false false 2 false true 2675000000 2675000000 false false 3 false true -2477000000 -2477000000 false false This element represents Other Comprehensive Income (Loss), Net of Tax, for the period. Includes deferred gains (losses) on qualifying hedges, unrealized holding gains (losses) on available-for-sale securities, minimum pension liability, and cumulative translation adjustment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 22, 23, 24, 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 true 14 1 us-gaap_ComprehensiveIncomeNetOfTax us-gaap true credit duration monetary The change in equity [net assets] of a business enterprise during a period from transactions and other events and... false false false false false false false false false 1 true true 1733000000 1733000000 false false 2 true true 16723000000 16723000000 false false 3 true true 8000000000 8000000000 false false The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 8, 9, 10, 11, 12, 13, 14 true false 3 13 false NoRounding UnKnown UnKnown false true XML 9 R3.xml IDEA: Cash Flow Statement 1.0.0.3 false Cash Flow Statement (USD $) false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 3 1 us-gaap_CashAndCashEquivalentsPeriodIncreaseDecreaseAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 4 2 us-gaap_NetCashProvidedByUsedInOperatingActivities us-gaap true na duration monetary The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the... false false false false false false false false false 1 true true 35171000000 35171000000 false false 2 true true 6287000000 6287000000 false false 3 true true 23413000000 23413000000 false false The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 false 5 2 us-gaap_NetCashProvidedByUsedInInvestingActivities us-gaap true debit duration monetary The net cash inflow (outflow) from investing activity. false false false false false false false false false 1 false true -68007000000 -68007000000 false false 2 false true -67952000000 -67952000000 false false 3 false true -61459000000 -61459000000 false false The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 false 6 2 us-gaap_NetCashProvidedByUsedInFinancingActivities us-gaap true debit duration monetary The net cash inflow (outflow) from financing activity for the period. false false false false false false false false false 1 false true 33480000000 33480000000 false false 2 false true 61244000000 61244000000 false false 3 false true 38097000000 38097000000 false false The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 false 7 2 us-gaap_EffectOfExchangeRateOnCashAndCashEquivalents us-gaap true debit duration monetary The effect of exchange rate changes on cash balances held in foreign currencies. false false false false false false false false false 1 false true 50000000 50000000 false false 2 false true 114000000 114000000 false false 3 false true -163000000 -163000000 false false The effect of exchange rate changes on cash balances held in foreign currencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 25 false 8 2 aig_ChangeInCashOnHandAndNonInterestBearingDeposits aig false na duration monetary The net change between the beginning and ending balance of cash on hand and non-interest bearing deposits false false false false false false false false false 1 false true 694000000 694000000 false false 2 false true -307000000 -307000000 false false 3 false true -112000000 -112000000 false false The net change between the beginning and ending balance of cash on hand and non-interest bearing deposits No authoritative reference available. true 9 2 aig_CashOnHandAndNonInterestBearingDeposits aig false debit instant monetary Cash represents cash on hand and non-interest bearing demand deposits. false false false false false false true false false 1 false true 1590000000 1590000000 false false 2 false true 1897000000 1897000000 false false 3 false true 2009000000 2009000000 false false Cash represents cash on hand and non-interest bearing demand deposits. No authoritative reference available. false 10 2 aig_CashOnHandAndNonInterestBearingDeposits aig false debit instant monetary Cash represents cash on hand and non-interest bearing demand deposits. false false false false false false false true false 1 false true 2284000000 2284000000 false false 2 false true 1590000000 1590000000 false false 3 false true 1897000000 1897000000 false false Cash represents cash on hand and non-interest bearing demand deposits. No authoritative reference available. false 11 1 us-gaap_NetCashProvidedByUsedInOperatingActivitiesAbstract us-gaap true na duration string The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the... false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities include all transactions and events that are not defined as investing or financing activities. Operating activities generally involve producing and delivering goods and providing services. Cash flows from operating activities are generally the cash effects of transactions and other events that enter into the determination of net income. false 12 2 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 false true 6200000000 6200000000 false false 2 false true 14048000000 14048000000 false false 3 false true 10477000000 10477000000 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 false 14 3 us-gaap_AdjustmentsForNoncashItemsIncludedInIncomeLossFromContinuingOperationsAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 15 4 aig_GainLossOnUnrealizedMarketValuation aig false credit duration monetary Unrealized market valuation losses on AIGFP super senior credit default swap portfolio false false false false false false false false false 1 false true 11472000000 11472000000 false false 2 false false 0 0 false false 3 false false 0 0 false false Unrealized market valuation losses on AIGFP super senior credit default swap portfolio No authoritative reference available. false 16 4 aig_GainLossOnSaleOfSecuritiesAvailableForSaleAndOtherAssetsNet aig false credit duration monetary Net gains on sales of securities available for sale and other assets false false false false false false false false false 1 false true -1349000000 -1349000000 false false 2 false true -763000000 -763000000 false false 3 false true -1218000000 -1218000000 false false Net gains on sales of securities available for sale and other assets No authoritative reference available. false 17 4 us-gaap_ForeignCurrencyTransactionGainLossUnrealized us-gaap true credit duration monetary The aggregate unrealized foreign currency transaction gain or loss (pretax) included in determining net income for the... false false false false false false false false false 1 false true -104000000 -104000000 false false 2 false true 1795000000 1795000000 false false 3 false true -3330000000 -3330000000 false false The aggregate unrealized foreign currency transaction gain or loss (pretax) included in determining net income for the reporting period. Represents the aggregate of gains and losses on transactions that are unsettled as of the balance sheet date, which is therefore an adjustment to reconcile income (loss) from continuing operations to net cash provided by (used in) continuing operations. (Excludes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting entity's financial statements. For certain entities, primarily banks, that are dealers in foreign exchange, foreign currency transaction gains or losses may be disclosed as dealer gains or losses.) Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 52 -Paragraph 15, 20, 30 false 18 4 aig_UnrealizedGainLossOnNonAigfpDerivativeAssetsAndLiabilitiesNet aig false credit duration monetary Changes in net unrealized (gains) losses on derivative instruments, such as swaps, forwards, options not entered into by... false false false false false false false false false 1 false true 116000000 116000000 false false 2 false true -713000000 -713000000 false false 3 false true 878000000 878000000 false false Changes in net unrealized (gains) losses on derivative instruments, such as swaps, forwards, options not entered into by broker dealer entities. No authoritative reference available. false 19 4 us-gaap_IncomeLossFromEquityMethodInvestments us-gaap true credit duration monetary This item represents the entity's proportionate share for the period of the undistributed net income (loss) of its investee... false false false false false false false false false 1 false true -4760000000 -4760000000 false false 2 false true -3990000000 -3990000000 false false 3 false true -1421000000 -1421000000 false false This item represents the entity's proportionate share for the period of the undistributed net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 19 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 9 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 6 -Subparagraph b false 20 4 us-gaap_AmortizationOfDeferredAcquisitionCostsDAC us-gaap true debit duration monetary The periodic expense charged against earnings that represents the sales costs that are associated with acquiring a new... false false false false false false false false false 1 false true 11602000000 11602000000 false false 2 false true 11578000000 11578000000 false false 3 false true 10693000000 10693000000 false false The periodic expense charged against earnings that represents the sales costs that are associated with acquiring a new customer over the term of the insurance contract. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 60 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 97 -Paragraph 27 false 21 4 aig_AmortizationOfPremiumAndDiscountOnSecuritiesAndLongTermBorrowings aig false debit duration monetary Amortization of premium and discount on securities and long-term borrowings includes: (a) Accretion (Amortization) of... false false false false false false false false false 1 false true 580000000 580000000 false false 2 false true 699000000 699000000 false false 3 false true 207000000 207000000 false false Amortization of premium and discount on securities and long-term borrowings includes: (a) Accretion (Amortization) of Discounts and Premiums, Investments:The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by (used in) operations using the indirect method. (b) Amortization of Financing Costs and Discounts, Total: The component of interest expense representing the noncash expenses charged against earnings in the period to allocate debt discount and premium, and the costs to issue debt and obtain financing over the related debt instruments. No authoritative reference available. false 22 4 us-gaap_DepreciationPremisesAndEquipment us-gaap true debit duration monetary The amount of expense charged against earnings in the period to allocate the cost, net of salvage value, of premises and... false false false false false false false false false 1 false true 2790000000 2790000000 false false 2 false true 2374000000 2374000000 false false 3 false true 2200000000 2200000000 false false The amount of expense charged against earnings in the period to allocate the cost, net of salvage value, of premises and equipment over their remaining estimated productive lives. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 23 4 us-gaap_ProvisionForLoanLeaseAndOtherLosses us-gaap true debit duration monetary The sum of the periodic provision charged to earnings, based on an assessment of uncollectibility from the counterparty on... false false false false false false false false false 1 false true 646000000 646000000 false false 2 false true 495000000 495000000 false false 3 false true 435000000 435000000 false false The sum of the periodic provision charged to earnings, based on an assessment of uncollectibility from the counterparty on account of loan, lease or other credit losses, to reduce these accounts to the amount that approximates their net realizable value. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-DEP -Chapter 5 -Paragraph 168, 169, 170 -IssueDate 2006-05-01 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 11 -Article 9 false 24 4 us-gaap_ImpairmentOfInvestments us-gaap true debit duration monetary This element represents the amount by which the carrying amount exceeds the fair value of the investment. The amount is... false false false false false false false false false 1 false true 4715000000 4715000000 false false 2 false true 944000000 944000000 false false 3 false true 598000000 598000000 false false This element represents the amount by which the carrying amount exceeds the fair value of the investment. The amount is charged to income if the decline in fair value is deemed to be other than temporary. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 16 false 25 3 us-gaap_IncreaseDecreaseInOperatingCapitalAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 26 4 aig_ChangeInGeneralAndLifeInsuranceReserves aig false debit duration monetary The net change in the beginning and end of period of general and life insurance reserve balances; shall be classified as cash... false false false false false false false false false 1 false true 16242000000 16242000000 false false 2 false true 12930000000 12930000000 false false 3 false true 27045000000 27045000000 false false The net change in the beginning and end of period of general and life insurance reserve balances; shall be classified as cash flows from operating activities. No authoritative reference available. false 27 4 aig_ChangeInPremiumsAndInsuranceBalancesReceivableAndPayableNet aig false credit duration monetary Represents (a) changes in the carrying amount, net of allowance for doubtful accounts, of all premiums and other types of... false false false false false false false false false 1 false true -207000000 -207000000 false false 2 false true -1214000000 -1214000000 false false 3 false true 192000000 192000000 false false Represents (a) changes in the carrying amount, net of allowance for doubtful accounts, of all premiums and other types of receivables due from other persons or entities and (b) changes in the carrying amount of the following combination (1) the known and estimated amounts owed to insurers under reinsurance treaties or other arrangements and (2) any reserves for outstanding life insurance and accident and health claims, net of applicable reinsurance. No authoritative reference available. false 28 4 us-gaap_IncreaseDecreaseInReinsuranceRecoverable us-gaap true credit duration monetary The net change during the reporting period in the amount of benefits the ceding insurer expects to recover on insurance... false false false false false false false false false 1 false true 923000000 923000000 false false 2 false true 1665000000 1665000000 false false 3 false true -5365000000 -5365000000 false false The net change during the reporting period in the amount of benefits the ceding insurer expects to recover on insurance policies ceded to other insurance entities as of the balance sheet date for all guaranteed benefit types. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 29 4 us-gaap_IncreaseDecreaseInDeferredPolicyAcquisitionCosts us-gaap true credit duration monetary The net change during the reporting period in the balance sheet value of capitalized sales costs that are associated with... false false false false false false false false false 1 false true -15846000000 -15846000000 false false 2 false true -15363000000 -15363000000 false false 3 false true -14454000000 -14454000000 false false The net change during the reporting period in the balance sheet value of capitalized sales costs that are associated with acquiring a new insurance customers. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 30 4 us-gaap_IncreaseDecreaseInAccruedInvestmentIncomeReceivable us-gaap true credit duration monetary The net change during the reporting period in investment income that has been earned but not yet received in cash. false false false false false false false false false 1 false true -401000000 -401000000 false false 2 false true -249000000 -249000000 false false 3 false true -171000000 -171000000 false false The net change during the reporting period in investment income that has been earned but not yet received in cash. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 31 4 us-gaap_IncreaseDecreaseInFundsHeldUnderReinsuranceAgreements us-gaap true credit duration monetary The change in funds held under reinsurance agreements or treaty (contract between the reinsurer and the ceding entity... false false false false false false false false false 1 false true -151000000 -151000000 false false 2 false true -1612000000 -1612000000 false false 3 false true 770000000 770000000 false false The change in funds held under reinsurance agreements or treaty (contract between the reinsurer and the ceding entity stipulating the manner in which insurance written on various risks is to be shared). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 32 4 us-gaap_IncreaseDecreaseInOtherPolicyholderFunds us-gaap true debit duration monetary The change, in other policyholder funds recorded on the balance sheet, is needed to adjust net income to arrive at net cash... false false false false false false false false false 1 false true 1374000000 1374000000 false false 2 false true -498000000 -498000000 false false 3 false true 811000000 811000000 false false The change, in other policyholder funds recorded on the balance sheet, is needed to adjust net income to arrive at net cash flows provided by (used in) operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 33 4 us-gaap_IncreaseDecreaseInAccruedIncomeTaxesPayable us-gaap true debit duration monetary The net change during the period in the amount of cash payments due to taxing authorities for taxes that are based on the... false false false false false false false false false 1 false true -3709000000 -3709000000 false false 2 false true 2003000000 2003000000 false false 3 false true 1543000000 1543000000 false false The net change during the period in the amount of cash payments due to taxing authorities for taxes that are based on the reporting entity's earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 34 4 us-gaap_IncreaseDecreaseInAccountsPayable us-gaap true debit duration monetary The net change during the reporting period in the aggregate amount of obligations due within one year (or one business... false false false false false false false false false 1 false true 989000000 989000000 false false 2 false true 408000000 408000000 false false 3 false true 140000000 140000000 false false The net change during the reporting period in the aggregate amount of obligations due within one year (or one business cycle). This may include trade payables, amounts due to related parties, royalties payable, and other obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 35 4 us-gaap_IncreaseDecreaseInOtherOperatingCapitalNet us-gaap true credit duration monetary For entities with classified balance sheets, the net change during the reporting period in the value of other assets or... false false false false false false false false false 1 false true 3657000000 3657000000 false false 2 false true -77000000 -77000000 false false 3 false true 2863000000 2863000000 false false For entities with classified balance sheets, the net change during the reporting period in the value of other assets or liabilities used in operating activities, that are not otherwise defined in the taxonomy. For entities with unclassified balance sheets, the net change during the reporting period in the value of all other assets or liabilities used in operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 36 4 aig_IncreaseDecreaseInTradingSecuritiesInvestments aig false credit duration monetary No definition available. false false false false false false false false false 1 false true -3667000000 -3667000000 false false 2 false true -9147000000 -9147000000 false false 3 false true -5581000000 -5581000000 false false No definition available. No authoritative reference available. false 37 4 us-gaap_IncreaseDecreaseInBrokerDealerRelatedReceivablesPayablesNet us-gaap true credit duration monetary The net change during the reporting period in receivables (payables) that result from buying and selling securities for the... false false false false false false false false false 1 false true 2243000000 2243000000 false false 2 false true -197000000 -197000000 false false 3 false true 2272000000 2272000000 false false The net change during the reporting period in receivables (payables) that result from buying and selling securities for the firm's own account or from acting as an agent or intermediary in the sale of securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 38 4 aig_IncreaseDecreaseInTradingSecuritiesFinancialServices aig false credit duration monetary No definition available. false false false false false false false false false 1 false true 835000000 835000000 false false 2 false true 1339000000 1339000000 false false 3 false true -3753000000 -3753000000 false false No definition available. No authoritative reference available. false 39 4 us-gaap_IncreaseDecreaseInSpotCommodities us-gaap true credit duration monetary The net change in the beginning and end of period Spot Commodities balances. false false false false false false false false false 1 false true -18000000 -18000000 false false 2 false true -128000000 -128000000 false false 3 false true 442000000 442000000 false false The net change in the beginning and end of period Spot Commodities balances. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 40 4 us-gaap_UnrealizedGainLossOnDerivatives us-gaap true credit duration monetary The increases (decreases) in the market value of derivative instruments, including options, swaps, futures, and forward... false false false false false false false false false 1 false true 1413000000 1413000000 false false 2 false true -1482000000 -1482000000 false false 3 false true 934000000 934000000 false false The increases (decreases) in the market value of derivative instruments, including options, swaps, futures, and forward contracts, which were included in earnings in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 41 4 us-gaap_ProceedsFromPaymentsForSecuritiesPurchasedUnderAgreementsToResell us-gaap true debit duration monetary The cash flow from investments purchased under the agreement to resell such investment. false false false false false false false false false 1 false true 9341000000 9341000000 false false 2 false true -16568000000 -16568000000 false false 3 false true 9953000000 9953000000 false false The cash flow from investments purchased under the agreement to resell such investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 false 42 4 us-gaap_ProceedsFromPaymentsForInSecuritiesSoldUnderAgreementsToRepurchase us-gaap true debit duration monetary The cash flow from investments sold under the agreement to repurchase such investment. false false false false false false false false false 1 false true -11391000000 -11391000000 false false 2 false true 9552000000 9552000000 false false 3 false true -12534000000 -12534000000 false false The cash flow from investments sold under the agreement to repurchase such investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 false 43 4 aig_SecuritiesAndSpotCommoditiesSoldButNotYetPurchased aig false debit duration monetary The cash flow from securities and spot commodities sold under the agreement to repurchase such investments. false false false false false false false false false 1 false true 633000000 633000000 false false 2 false true -1899000000 -1899000000 false false 3 false true 571000000 571000000 false false The cash flow from securities and spot commodities sold under the agreement to repurchase such investments. No authoritative reference available. false 44 4 aig_ChangeInFinanceReceivablesAndOtherLoansHeldForSaleOriginationsAndPurchases aig false credit duration monetary Originations and purchases of Finance receivables and other loans held for sale false false false false false false false false false 1 false true -5145000000 -5145000000 false false 2 false true -10786000000 -10786000000 false false 3 false true -13070000000 -13070000000 false false Originations and purchases of Finance receivables and other loans held for sale No authoritative reference available. false 45 4 aig_SaleOfFinanceReceivablesAndOtherLoansHeldForSale aig false debit duration monetary Sales of finance receivables and other loans - held for sale false false false false false false false false false 1 false true 5671000000 5671000000 false false 2 false true 10602000000 10602000000 false false 3 false true 12821000000 12821000000 false false Sales of finance receivables and other loans - held for sale No authoritative reference available. false 46 4 us-gaap_OtherAdjustmentsForNoncashItemsIncludedInIncomeLossFromContinuingOperations us-gaap true debit duration monetary Transactions that result in no cash inflows or outflows in the period in which they occur, but affect net income and thus are... false false false false false false false false false 1 false true 477000000 477000000 false false 2 false true 541000000 541000000 false false 3 false true -1535000000 -1535000000 false false Transactions that result in no cash inflows or outflows in the period in which they occur, but affect net income and thus are removed when calculating net cash flow from operating activities using the indirect method. This element is used when there is not a more specific and appropriate element. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 false 47 3 us-gaap_AdjustmentsToReconcileIncomeLossToNetCashProvidedByUsedInContinuingOperations us-gaap true debit duration monetary The sum of adjustments which are added to net income to reflect net cash generated by operating activities using the indirect... false false false false false false false false false 1 false true 28971000000 28971000000 false false 2 false true -7761000000 -7761000000 false false 3 false true 12936000000 12936000000 false false The sum of adjustments which are added to net income to reflect net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 true 48 2 us-gaap_NetCashProvidedByUsedInOperatingActivities us-gaap true na duration monetary The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the... false false false false false false false false false 1 false true 35171000000 35171000000 false false 2 false true 6287000000 6287000000 false false 3 false true 23413000000 23413000000 false false The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 49 1 us-gaap_NetCashProvidedByUsedInInvestingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 50 2 us-gaap_ProceedsFromSaleAndMaturityOfAvailableForSaleSecurities us-gaap true debit duration monetary The cash inflow associated with the sale or maturity (principal being due) of securities not classified as either... false false false false false false false false false 1 false true 132320000000 132320000000 false false 2 false true 112894000000 112894000000 false false 3 false true 140076000000 140076000000 false false The cash inflow associated with the sale or maturity (principal being due) of securities not classified as either held-to-maturity securities or trading securities which are classified as available-for-sale securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph b false 51 2 us-gaap_ProceedsFromSaleOfAvailableForSaleSecuritiesEquity us-gaap true debit duration monetary The cash inflow associated with the sale of equity securities classified as available-for-sale securities. false false false false false false false false false 1 false true 9616000000 9616000000 false false 2 false true 12475000000 12475000000 false false 3 false true 11661000000 11661000000 false false The cash inflow associated with the sale of equity securities classified as available-for-sale securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph b false 52 2 us-gaap_ProceedsFromMaturitiesPrepaymentsAndCallsOfHeldToMaturitySecurities us-gaap true debit duration monetary The cash inflow associated with the maturity, prepayments and calls (requests for early payments) of debt securities... false false false false false false false false false 1 false true 295000000 295000000 false false 2 false true 205000000 205000000 false false 3 false true 46000000 46000000 false false The cash inflow associated with the maturity, prepayments and calls (requests for early payments) of debt securities designated as held-to-maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph a false 53 2 aig_SaleOfFlightEquipment aig false debit duration monetary The cash inflow from the sale of passenger aircraft, freighter aircraft, or flight equipment. false false false false false false false false false 1 false true 303000000 303000000 false false 2 false true 697000000 697000000 false false 3 false true 573000000 573000000 false false The cash inflow from the sale of passenger aircraft, freighter aircraft, or flight equipment. No authoritative reference available. false 54 2 us-gaap_ProceedsFromSaleAndMaturityOfOtherInvestments us-gaap true debit duration monetary The cash inflow associated with the sale of other investments not otherwise defined in the taxonomy. false false false false false false false false false 1 false true 14109000000 14109000000 false false 2 false true 14084000000 14084000000 false false 3 false true 14899000000 14899000000 false false The cash inflow associated with the sale of other investments not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16 false 55 2 aig_PaymentsReceivedOnMortgageAndOtherLoansReceivable aig false debit duration monetary The cash inflow associated with mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. false false false false false false false false false 1 false true 9062000000 9062000000 false false 2 false true 5165000000 5165000000 false false 3 false true 3679000000 3679000000 false false The cash inflow associated with mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. No authoritative reference available. false 56 2 us-gaap_ProceedsFromSaleAndCollectionOfFinanceReceivables us-gaap true debit duration monetary The cash inflow associated with the sale or collection of receivables arising from the financing of goods and services. false false false false false false false false false 1 false true 12553000000 12553000000 false false 2 false true 12586000000 12586000000 false false 3 false true 12461000000 12461000000 false false The cash inflow associated with the sale or collection of receivables arising from the financing of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph a false 57 2 us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesDebt us-gaap true credit duration monetary The cash outflow to acquire debt securities classified as available-for-sale securities, because they are not classified as... false false false false false false false false false 1 false true -139184000000 -139184000000 false false 2 false true -146465000000 -146465000000 false false 3 false true -175657000000 -175657000000 false false The cash outflow to acquire debt securities classified as available-for-sale securities, because they are not classified as either held-to-maturity securities or trading securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph a false 58 2 us-gaap_PaymentsToAcquireAvailableForSaleSecuritiesEquity us-gaap true credit duration monetary The cash outflow to acquire equity securities classified as available-for-sale securities, because they are not classified as... false false false false false false false false false 1 false true -10933000000 -10933000000 false false 2 false true -14482000000 -14482000000 false false 3 false true -13273000000 -13273000000 false false The cash outflow to acquire equity securities classified as available-for-sale securities, because they are not classified as trading securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph b false 59 2 us-gaap_PaymentsToAcquireHeldToMaturitySecurities us-gaap true credit duration monetary The cash outflow to acquire a debt financial instrument for which the entity has the ability and intent to hold until... false false false false false false false false false 1 false true -266000000 -266000000 false false 2 false true -197000000 -197000000 false false 3 false true -3333000000 -3333000000 false false The cash outflow to acquire a debt financial instrument for which the entity has the ability and intent to hold until maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph a false 60 2 aig_PurchasesOfFlightEquipment aig false credit duration monetary The cash outflow for acquisition of or capital improvements on passenger aircraft, freighter aircraft, or flight equipment. false false false false false false false false false 1 false true -4772000000 -4772000000 false false 2 false true -6009000000 -6009000000 false false 3 false true -6193000000 -6193000000 false false The cash outflow for acquisition of or capital improvements on passenger aircraft, freighter aircraft, or flight equipment. No authoritative reference available. false 61 2 us-gaap_PaymentsToAcquireOtherInvestments us-gaap true credit duration monetary The cash outflow associated with other investments held by the entity for investment purposes not otherwise defined in the... false false false false false false false false false 1 false true -25327000000 -25327000000 false false 2 false true -16040000000 -16040000000 false false 3 false true -15059000000 -15059000000 false false The cash outflow associated with other investments held by the entity for investment purposes not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 false 62 2 us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired us-gaap true credit duration monetary The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. false false false false false false false false false 1 false true -1361000000 -1361000000 false false 2 false false 0 0 false false 3 false false 0 0 false false The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 17 false 63 2 aig_MortgageAndOtherLoansReceivableIssued aig false credit duration monetary The cash outflow associated with mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. false false false false false false false false false 1 false true -12439000000 -12439000000 false false 2 false true -7438000000 -7438000000 false false 3 false true -5310000000 -5310000000 false false The cash outflow associated with mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. No authoritative reference available. false 64 2 us-gaap_PaymentsToAcquireFinanceReceivables us-gaap true credit duration monetary The cash outflow for the purchase of amounts due from customers, clients, lessees, borrowers, or others under the terms of... false false false false false false false false false 1 false true -15271000000 -15271000000 false false 2 false true -13830000000 -13830000000 false false 3 false true -17276000000 -17276000000 false false The cash outflow for the purchase of amounts due from customers, clients, lessees, borrowers, or others under the terms of its agreements therewith. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph a false 65 2 us-gaap_IncreaseDecreaseInCashCollateralForLoanedSecurities us-gaap true debit duration monetary The net change during the reporting period in the amount of cash that is received as security when loaning securities. false false false false false false false false false 1 false true -12303000000 -12303000000 false false 2 false true -9835000000 -9835000000 false false 3 false true -10301000000 -10301000000 false false The net change during the reporting period in the amount of cash that is received as security when loaning securities. No authoritative reference available. false 66 2 us-gaap_PaymentsToAcquireProductiveAssets us-gaap true credit duration monetary The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software,... false false false false false false false false false 1 false true -870000000 -870000000 false false 2 false true -1097000000 -1097000000 false false 3 false true -941000000 -941000000 false false The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph c false 67 2 aig_IncreaseDecreaseInShortTermInvestmentsNet aig false credit duration monetary The cash flows associated with short-term investments, which consist of interest-bearing cash equivalents, time deposits, and... false false false false false false false false false 1 false true -23484000000 -23484000000 false false 2 false true -10620000000 -10620000000 false false 3 false true 1801000000 1801000000 false false The cash flows associated with short-term investments, which consist of interest-bearing cash equivalents, time deposits, and investments with original maturities within one year from the date of purchase, such as commercial paper. No authoritative reference available. false 68 2 aig_ChangeInNonAigfpDerivativeAssetsAndLiabilitiesNet aig false credit duration monetary The cash flows associated with derivative instruments, such as swaps, forwards, options not entered into by broker dealer... false false false false false false false false false 1 false true -55000000 -55000000 false false 2 false true -45000000 -45000000 false false 3 false true 688000000 688000000 false false The cash flows associated with derivative instruments, such as swaps, forwards, options not entered into by broker dealer entities. No authoritative reference available. false 69 2 us-gaap_NetCashProvidedByUsedInInvestingActivities us-gaap true debit duration monetary The net cash inflow (outflow) from investing activity. false false false false false false false false false 1 false true -68007000000 -68007000000 false false 2 false true -67952000000 -67952000000 false false 3 false true -61459000000 -61459000000 false false The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 true 70 1 us-gaap_NetCashProvidedByUsedInFinancingActivitiesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 71 2 us-gaap_AdditionsToContractHoldersFunds us-gaap true debit duration monetary The cash inflow from a segregated fund account during the period. false false false false false false false false false 1 false true 64829000000 64829000000 false false 2 false true 57197000000 57197000000 false false 3 false true 51699000000 51699000000 false false The cash inflow from a segregated fund account during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26, 31 false 72 2 us-gaap_WithdrawalFromContractHoldersFunds us-gaap true credit duration monetary The cash outflow for a segregated fund account during the period. false false false false false false false false false 1 false true -58675000000 -58675000000 false false 2 false true -43413000000 -43413000000 false false 3 false true -36339000000 -36339000000 false false The cash outflow for a segregated fund account during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26, 31 false 73 2 us-gaap_IncreaseDecreaseInOtherDeposits us-gaap true debit duration monetary Net cash inflow (outflow) in all other deposits that have not otherwise been stated in the taxonomy. false false false false false false false false false 1 false true -182000000 -182000000 false false 2 false true 1269000000 1269000000 false false 3 false true -957000000 -957000000 false false Net cash inflow (outflow) in all other deposits that have not otherwise been stated in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-DEP -Chapter 13 -IssueDate 2006-05-01 false 74 2 aig_ChangeInCommercialPaperAndExtendibleCommercialNotes aig false debit duration monetary The cash flows associated with unsecured obligations issued by banks, corporations and other borrowers to investors. false false false false false false false false false 1 false true -338000000 -338000000 false false 2 false true 2960000000 2960000000 false false 3 false true -702000000 -702000000 false false The cash flows associated with unsecured obligations issued by banks, corporations and other borrowers to investors. No authoritative reference available. false 75 2 us-gaap_ProceedsFromIssuanceOfLongTermDebt us-gaap true debit duration monetary The cash inflow from a debt initially having maturity due after one year or beyond the operating cycle, if longer. false false false false false false false false false 1 false true 103210000000 103210000000 false false 2 false true 71028000000 71028000000 false false 3 false true 67061000000 67061000000 false false The cash inflow from a debt initially having maturity due after one year or beyond the operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph b false 76 2 us-gaap_RepaymentsOfLongTermDebt us-gaap true credit duration monetary The cash outflow for debt initially having maturity due after one year or beyond the normal operating cycle, if longer. false false false false false false false false false 1 false true -79738000000 -79738000000 false false 2 false true -36489000000 -36489000000 false false 3 false true -51402000000 -51402000000 false false The cash outflow for debt initially having maturity due after one year or beyond the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b false 77 2 aig_ChangeInSecuritiesLendingPayable aig false debit duration monetary Cash flows associated with securities lending payable. false false false false false false false false false 1 false true 11757000000 11757000000 false false 2 false true 9789000000 9789000000 false false 3 false true 10437000000 10437000000 false false Cash flows associated with securities lending payable. No authoritative reference available. false 78 2 aig_RedemptionOfSubsidiaryCompanyPreferredStock aig false debit duration monetary Cash flows associated with outstanding preferred stock or interest of a wholly owned subsidiary. false false false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false true -100000000 -100000000 false false Cash flows associated with outstanding preferred stock or interest of a wholly owned subsidiary. No authoritative reference available. false 79 2 us-gaap_ProceedsFromSaleOfTreasuryStock us-gaap true debit duration monetary The cash inflow from the issuance of an equity stock that has been previously reacquired by the entity. false false false false false false false false false 1 false true 206000000 206000000 false false 2 false true 163000000 163000000 false false 3 false true 82000000 82000000 false false The cash inflow from the issuance of an equity stock that has been previously reacquired by the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a false 80 2 us-gaap_OriginationOfLoanToPurchaseCommonStock us-gaap true credit duration monetary Cash outflow for origination of loan for purchasing common stock. false false false false false false false false false 1 false true -6000000000 -6000000000 false false 2 false false 0 0 false false 3 false false 0 0 false false Cash outflow for origination of loan for purchasing common stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 false 81 2 us-gaap_PaymentsOfDividends us-gaap true credit duration monetary The cash outflow from the entity's earnings to the shareholders. false false false false false false false false false 1 false true -1881000000 -1881000000 false false 2 false true -1638000000 -1638000000 false false 3 false true -1421000000 -1421000000 false false The cash outflow from the entity's earnings to the shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a false 82 2 us-gaap_PaymentsForRepurchaseOfCommonStock us-gaap true credit duration monetary The cash outflow to reacquire common stock during the period. false false false false false false false false false 1 false true -16000000 -16000000 false false 2 false true -20000000 -20000000 false false 3 false true -176000000 -176000000 false false The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a false 83 2 us-gaap_ProceedsFromPaymentsForOtherFinancingActivities us-gaap true debit duration monetary The net cash inflow (outflow) from other financing activities. This element is used when there is not a more specific and... false false false false false false false false false 1 false true 308000000 308000000 false false 2 false true 398000000 398000000 false false 3 false true -85000000 -85000000 false false The net cash inflow (outflow) from other financing activities. This element is used when there is not a more specific and appropriate element in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18, 19, 20 false 84 2 us-gaap_NetCashProvidedByUsedInFinancingActivities us-gaap true debit duration monetary The net cash inflow (outflow) from financing activity for the period. false false false false false false false false false 1 true true 33480000000 33480000000 false false 2 true true 61244000000 61244000000 false false 3 true true 38097000000 38097000000 false false The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 false false 3 81 false NoRounding UnKnown UnKnown false true XML 10 R4.xml IDEA: Cash Flow Supplemental 1.0.0.3 false Cash Flow Supplemental (USD $) false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 3 1 aig_CashPaidDuringPeriodForAbstract aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 4 2 us-gaap_InterestPaid us-gaap true credit duration monetary The amount of cash paid during the current period for interest owed on money borrowed; includes amount of interest... false false false false false false false false false 1 true true 8818000000 8818000000 false false 2 true true 6539000000 6539000000 false false 3 true true 4883000000 4883000000 false false The amount of cash paid during the current period for interest owed on money borrowed; includes amount of interest capitalized Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 false 5 2 us-gaap_IncomeTaxesPaidNet us-gaap true credit duration monetary The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net... false false false false false false false false false 1 false true 5163000000 5163000000 false false 2 false true 4693000000 4693000000 false false 3 false true 2593000000 2593000000 false false The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -Subparagraph (f) false 6 1 aig_NonCashFinancingActivitiesAbstract aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 7 2 aig_InterestCreditedToPolicyholderAccountsIncludedInFinancingActivities aig false credit duration monetary Interest credited to policyholder accounts included in financing activities false false false false false false false false false 1 false true 11628000000 11628000000 false false 2 false true 10746000000 10746000000 false false 3 false true 9782000000 9782000000 false false Interest credited to policyholder accounts included in financing activities No authoritative reference available. false 8 2 aig_TreasuryStockAcquiredUsingPaymentsAdvancedToPurchaseShares aig false credit duration monetary Treasury stock acquired using payments advanced to purchase shares false false false false false false false false false 1 false true 5088000000 5088000000 false false 2 false false 0 0 false false 3 false false 0 0 false false Treasury stock acquired using payments advanced to purchase shares No authoritative reference available. false 9 1 aig_NonCashInvestingActivitiesAbstract aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 10 2 us-gaap_NoncashOrPartNoncashAcquisitionValueOfLiabilitiesAssumed us-gaap true credit instant monetary The total amount of [all] liabilities that an Entity assumes in acquiring a business or in consideration for an asset... false false false false false false false false false 1 true true 791000000 791000000 false false 2 false false 0 0 false false 3 false false 0 0 false false The total amount of [all] liabilities that an Entity assumes in acquiring a business or in consideration for an asset received in a noncash (or part noncash) acquisition. Noncash is defined as transactions during a period that affect recognized assets or liabilities but that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 32 false false 3 8 false NoRounding UnKnown UnKnown false true XML 11 R6.xml IDEA: Notes To Consolidated Financials 1.0.0.3 false Notes To Consolidated Financials false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 3 1 aig_AccountingPoliciesOrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock aig false na duration string Description containing the entire organization, consolidation, basis of presentation of financial statements and significant... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left><B><FONT color=#002868>1.&nbsp;Summary of Significant Accounting Policies</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Basis of Presentation</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The consolidated financial statements include the accounts of AIG, its controlled subsidiaries, and variable interest entities in which AIG is the primary beneficiary. Entities that AIG does not consolidate but in which it holds 20&nbsp;percent to 50&nbsp;percent of the voting rights and/or has the ability to exercise significant influence are accounted for under the equity method. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain of AIG&#146;s foreign subsidiaries included in the consolidated financial statements report on a fiscal year ending November&nbsp;30. The effect on AIG&#146;s consolidated financial condition and results of operations of all material events occurring between November&nbsp;30 and December&nbsp;31 for all periods presented has been recorded. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The accompanying consolidated financial statements have been prepared in accordance with U.S.&nbsp;generally accepted accounting principles (GAAP). All material intercompany accounts and transactions have been eliminated. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Description of Business</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>See Note&nbsp;2 herein for a description of AIG&#146;s businesses. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Use of Estimates</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ, possibly materially, from those estimates. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG considers its most critical accounting estimates to be those with respect to reserves for losses and loss expenses, future policy benefits for life and accident and health contracts, estimated gross profits for investment-oriented products, recoverability of deferred policy acquisition costs (DAC), fair value measurements of certain assets and liabilities, including the super senior credit default swaps written by AIGFP, other-than-temporary impairments in the value of investments, the allowance for finance receivable losses and flight equipment recoverability. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; During the second half of 2007, disruption in the global credit markets, coupled with the repricing of credit risk, and the U.S.&nbsp;housing market deterioration, particularly in the fourth quarter, created increasingly difficult conditions in the financial markets. These conditions have resulted in greater volatility, less liquidity, widening of credit spreads and a lack of price transparency in certain markets and have made it more difficult to value certain of AIG&#146;s invested assets and the obligations and collateral relating to certain financial instruments issued or held by AIG, such as AIGFP&#146;s super senior credit default swap portfolio. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Revisions and Reclassifications</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In 2007, AIG determined that certain products that were historically reported as separate account assets under American Institute of Certified Public Accountants (AICPA) Statement of Position (SOP)&nbsp;<FONT style="WHITE-SPACE: nowrap">03-1,</FONT> &#147;Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts&#148; (SOP <FONT style="WHITE-SPACE: nowrap">03-1)</FONT> should have been reported as general account assets. Accordingly, the December&nbsp;31, 2006 consolidated balance sheet has been revised to reflect the transfer of $2.4&nbsp;billion of assets from separate account assets to general account assets, and the same amount of liabilities from separate account liabilities to policyholders&#146; contract deposits. This revision had no effect on consolidated income before income taxes, net income, or shareholders&#146; equity for any period presented. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain reclassifications and format changes have been made to prior period amounts to conform to the current period presentation. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Out-of-Period Adjustments</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>During 2007 and 2006, AIG recorded the effects of certain out-of-period adjustments, which (decreased) increased net income by $(399)&nbsp;million and $65&nbsp;million, respectively. During 2007, out-of-period adjustments collectively decreased pre-tax operating income by $372 million ($399&nbsp;million after tax). The adjustments were comprised of a charge of $380&nbsp;million ($247&nbsp;million after tax) to reverse net gains on transfers of investment securities among legal entities consolidated within AIGFP and a corresponding increase to accumulated other comprehensive income (loss); $156&nbsp;million of additional income tax expense related to the successful remediation of the material weakness in internal control over income tax accounting; $142&nbsp;million ($92&nbsp;million after tax) of additional expense related to insurance reserves and DAC in connection with improvements in its internal control over financial reporting and consolidation processes; $42&nbsp;million ($29&nbsp;million after tax) of additional expense, primarily related to other remediation activities; and $192 million ($125 million after tax) of net realized capital gains related to foreign exchange. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Accounting Policies</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Revenue Recognition and Expenses:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Premiums and Other Considerations:</I> Premiums for short duration contracts and considerations received from retailers in connection with the sale of extended service contracts are earned primarily on a pro rata basis over the term of the related coverage. The reserve for unearned premiums includes the portion of premiums written and other considerations relating to the unexpired terms of coverage. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Premiums for long duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued. Consideration for universal life and investment-type products consists of policy charges for the cost of insurance, administration, and surrenders during the period. Policy charges collected with respect to future services are deferred and recognized in a manner similar to DAC related to such products. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Net Investment Income:</I> Net investment income represents income primarily from the following sources in AIG&#146;s insurance operations: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in</TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 10pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">Dividend income and distributions from common and preferred stock and other investments when receivable. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">Realized and unrealized gains and losses from investments in trading securities accounted for at fair value. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">Earnings from hedge funds and limited partnership investments accounted for under the equity method. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">The difference between the carrying amount of a life settlement contract and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured. </FONT></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Realized Capital Gains (Losses):</I> Realized capital gains and losses are determined by specific identification. The realized capital gains and losses are generated primarily from the following sources: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Sales of fixed maturity securities and equity securities (except trading securities accounted for at fair value), real estate, investments in joint ventures and limited partnerships and other types of investments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Reductions to the cost basis of fixed maturity securities and equity securities (except trading securities accounted for at fair value) and other invested assets for other-than-temporary impairments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Changes in fair value of derivatives that are not involved in qualifying hedging activities.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Exchange gains and losses resulting from foreign currency transactions.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Other Income:</I> Other income includes income from flight equipment, Asset Management operations, the operations of AIGFP and finance charges on consumer loans. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Income from flight equipment under operating leases is recognized over the life of the lease as rentals become receivable under the provisions of the lease or, in the case of leases with varying payments, under the straight-line method over the noncancelable term of the lease. In certain cases, leases provide for additional payments contingent on usage. Rental income is recognized at the time such usage occurs less a provision for future contractual aircraft maintenance. Gains and losses on flight equipment are recognized when flight equipment is sold and the risk of ownership of the equipment is passed to the new owner. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Income from Asset Management operations is generally recognized as revenues as services are performed. Certain costs incurred in the sale of mutual funds are deferred and subsequently amortized. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Income from the operations of AIGFP included in other income consists of the following: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Dividend income and distributions from common and preferred stock and other investments when receivable.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Changes in the fair value of derivatives (excluding the super senior credit default swap portfolio). In certain instances, no initial gain or loss is recognized in accordance with Emerging Issues Task Force Issue (EITF)&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3,</FONT> &#147;Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities&#148; (EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3).</FONT> The initial gain or loss is recognized in income over the life of the transaction or when observable market data becomes available.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Realized and unrealized gains and losses from trading securities and spot commodities sold but not yet purchased, futures and hybrid financial instruments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Realized gains and losses from the sale of available for sale securities and investments in private equities, joint ventures, limited partnerships and other investments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Exchange gains and losses resulting from foreign currency transactions.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Reductions to the cost basis of securities available for sale for other-than-temporary impairments.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Earnings from hedge funds and limited partnership investments accounted for under the equity method.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Finance charges on consumer loans are recognized as revenue using the interest method. Revenue ceases to be accrued when contractual payments are not received for four consecutive months for loans and retail sales contracts, and for six&nbsp;months for revolving retail accounts and private label receivables. Extension fees, late charges, and prepayment penalties are recognized as revenue when received. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Incurred Policy Losses and Benefits:</FONT> </I>Incurred policy losses for short duration insurance contracts consist of the estimated ultimate cost of settling claims incurred within the reporting period, including incurred but not reported claims, plus the changes in estimates of current and prior period losses resulting from the continuous review process. Benefits for long duration insurance contracts consist of benefits paid and changes in future policy benefits liabilities. Benefits for universal life and investment-type products primarily consist of interest credited to policy account balances and benefit payments made in excess of policy account balances. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;Income Taxes:</B><FONT style="FONT-SIZE: 8.5pt"> Deferred tax assets and liabilities are recorded for the effects of temporary differences between the tax basis of an asset or liability and its reported amount in the consolidated financial statements. AIG assesses its ability to realize deferred tax assets primarily based on the earnings history, the future earnings potential, the reversal of taxable temporary differences, and the tax planning strategies available to the legal entities when recognizing deferred tax assets in accordance with Statement of Financial Accounting Standards No. (FAS)&nbsp;109, &#147;Accounting for Income Taxes&#148; (FAS&nbsp;109). See Note&nbsp;21 herein for a further discussion of income taxes. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(c)&nbsp;Investments in Fixed Maturities and Equity Securities:</B><FONT style="FONT-SIZE: 8.5pt"> Bonds held to maturity are principally owned by insurance subsidiaries and are carried at amortized cost when AIG has the ability and positive intent to hold these securities until maturity. </FONT></DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; When AIG does not have the positive intent to hold bonds until maturity, these securities are classified as available for sale or as trading and are carried at fair value. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Premiums and discounts arising from the purchase of bonds classified as held to maturity or available for sale are treated as yield adjustments over their estimated lives, until maturity, or call date, if applicable. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Common and preferred stocks are carried at fair value. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG also enters into dollar roll agreements. These are agreements to sell mortgage-backed securities and to repurchase substantially similar securities at a specified price and date in the future. At December&nbsp;31, 2007 and 2006, there were no dollar roll agreements outstanding. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For AIG&#146;s insurance subsidiaries, unrealized gains and losses on investments in trading securities are reported in Net investment income. Unrealized gains and losses from available for sale investments in equity and fixed maturity securities are reported as a separate component of Accumulated other comprehensive income (loss), net of deferred income taxes, in consolidated shareholders&#146; equity. Investments in fixed maturities and equity securities are recorded on a trade-date basis. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG evaluates its investments for other-than-temporary impairment. The determination that a security has incurred an other-than-temporary impairment in value and the amount of any loss recognized requires the judgment of AIG&#146;s management and a continual review of its investments. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG evaluates its investments for other-than-temporary impairment such that a security is considered a candidate for other-than-temporary impairment if it meets any of the following criteria: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Trading at a significant (25&nbsp;percent or more) discount to par, amortized cost (if lower) or cost for an extended period of time (nine consecutive months or longer);</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>The occurrence of a discrete credit event resulting in (i)&nbsp;the issuer defaulting on a material outstanding obligation; (ii)&nbsp;the issuer seeking protection from creditors under the bankruptcy laws or any similar laws intended for court supervised reorganization of insolvent enterprises; or (iii)&nbsp;the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than par value of their claims; or</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>AIG may not realize a full recovery on its investment regardless of the occurrence of one of the foregoing events.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The above criteria also consider circumstances of a rapid and severe market valuation decline, such as that experienced in current credit markets, in which AIG could not reasonably assert that the recovery period would be temporary. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At each balance sheet date, AIG evaluates its securities holdings with unrealized losses. When AIG does not intend to hold such securities until they have recovered their cost basis, based on the circumstances at the date of evaluation, AIG records the unrealized loss in income. If a loss is recognized from a sale subsequent to a balance sheet date pursuant to changes in circumstances, the loss is recognized in the period in which the intent to hold the securities to recovery no longer existed. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In periods subsequent to the recognition of an other-than-temporary impairment charge for fixed maturity securities, which is not credit or foreign exchange related, AIG generally accretes the discount or amortizes the reduced premium resulting from the reduction in cost basis over the remaining life of the security. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For certain investments in beneficial interests in securitized financial assets of less than high quality with contractual cash flows, including asset-backed securities, EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">99-20,</FONT> &#147;Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests that Continued to Be Held by a Transferor in Securitized Financial Assets&#148; requires periodic updates of AIG&#146;s best estimate of cash flows over the life of the security. If the fair value of an investment in beneficial interests in a securitized financial asset is less than its cost or amortized cost and there has been a decrease in the present value of the estimated cash flows since the last revised estimate, considering both their timing and amount, an other-than-temporary impairment charge is recognized. Interest income is recognized based on changes in the timing and the amount of expected principal and interest cash flows reflected in the yield. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG also considers its intent and ability to retain a temporarily depressed security until recovery. Estimating future cash flows is a quantitative and qualitative process that incorporates information received from third-party sources along with certain internal assumptions and judgments regarding the future performance of the underlying collateral. In addition, projections of expected future cash flows may change based upon new information regarding the performance of the underlying collateral. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(d)&nbsp;Mortgage and Other Loans Receivable&nbsp;&#151; net:</B><FONT style="FONT-SIZE: 8.5pt"> Mortgage and other loans receivable includes mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. Mortgage loans on real estate and collateral, commercial and guaranteed loans are carried at unpaid principal balances less credit allowances and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Impairment of mortgage loans on real estate and collateral and commercial loans is based on certain risk factors and when collection of all amounts due under the contractual terms is not probable. This impairment is generally measured based on the present value of expected future cash flows discounted at the loan&#146;s effective interest rate subject to the fair value of underlying collateral. Interest income on such impaired loans is recognized as cash is received. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Policy loans are carried at unpaid principal amount. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(e)&nbsp;Financial Services&nbsp;&#151; Flight Equipment:</B><FONT style="FONT-SIZE: 8.5pt"> Flight equipment is stated at cost, net of accumulated depreciation. Major additions, modifications and interest are capitalized. Normal maintenance and repairs, airframe and engine overhauls and </FONT>compliance with return conditions of flight equipment on lease are provided by and paid for by the lessee. Under the provisions of most leases for certain airframe and engine overhauls, the lessee is reimbursed for certain costs incurred up to but not exceeding contingent rentals paid to AIG by the lessee. AIG provides a charge to income for such reimbursements based on the expected reimbursements during the life of the lease. For passenger aircraft, depreciation is generally computed on the straight-line basis to a residual value of approximately 15&nbsp;percent of the cost of the asset over its estimated useful life of 25&nbsp;years. For freighter aircraft, depreciation is computed on the straight-line basis to a zero residual value over its useful life of 35&nbsp;years. At December&nbsp;31, 2007, ILFC had twelve freighter aircraft in its fleet. Aircraft in the fleet are evaluated for impairment in accordance with FAS&nbsp;144. FAS&nbsp;144 requires long-lived assets to be evaluated for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets is measured by comparing the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. These evaluations for impairment are significantly affected by estimates of future net cash flows and other factors that involve uncertainty. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; When assets are retired or disposed of, the cost and associated accumulated depreciation are removed from the related accounts and the difference, net of proceeds, is recorded as a gain or loss in Other income. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(f)&nbsp;Financial Services&nbsp;&#151; Securities Available for Sale, at fair value:</B><FONT style="FONT-SIZE: 8.5pt"> These securities are held to meet long-term investment objectives and are accounted for as available for sale, carried at fair values and recorded on a trade-date basis. This portfolio is hedged using interest rate, foreign exchange, commodity and equity derivatives. The market risk associated with such hedges is managed on a portfolio basis, with third-party hedging transactions executed as necessary. Because hedge accounting treatment is not achieved in accordance with FAS&nbsp;133, &#147;Accounting for Derivative Instruments and Hedging Activities&#148; (FAS&nbsp;133), the unrealized gains and losses on these securities resulting from changes in interest rates, currency rates and equity prices are recorded in Accumulated other comprehensive income (loss) in consolidated shareholders&#146; equity while the unrealized gains and losses on the hedging instruments are reflected in Other income. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(g)&nbsp;Financial Services&nbsp;&#151; Trading Securities, at fair value:</B><FONT style="FONT-SIZE: 8.5pt"> Trading securities are held to meet short-term investment objectives and to economically hedge other securities. Trading securities are recorded on a trade-date basis and carried at fair value. Realized and unrealized gains and losses are reflected in Other income. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(h)&nbsp;Financial Services&nbsp;&#151; Spot Commodities:</B><FONT style="FONT-SIZE: 8.5pt"> Spot commodities held in AIGFP&#146;s wholly owned broker-dealer subsidiary are recorded at fair value. All other commodities are recorded at the lower of cost or fair value. Spot commodities are recorded on a trade-date basis. The exposure to market risk may be reduced through the use of forwards, futures and option contracts. Lower of cost or fair value reductions in commodity positions and unrealized gains and losses in related derivatives are reflected in Other income. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(i)&nbsp;Financial Services&nbsp;&#151; Unrealized Gain and Unrealized Loss on Swaps, Options and Forward Transactions:</B><FONT style="FONT-SIZE: 8.5pt"> Interest rate, currency, equity and commodity swaps (including AIGFP&#146;s super senior credit default swap portfolio), swaptions, options and forward transactions are accounted for as derivatives recorded on a trade-date basis, and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. In certain instances, when income is not recognized at inception of the contract under EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3,</FONT> income is recognized over the life of the contract and as observable market data becomes available.</FONT> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(j)&nbsp;Financial Services&nbsp;&#151; Trade Receivables and Trade Payables:</B><FONT style="FONT-SIZE: 8.5pt"> Trade receivables and Trade payables include option premiums paid and received and receivables from and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due from and due to clearing brokers and exchanges. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(k)&nbsp;Financial Services&nbsp;&#151; Securities Purchased (Sold) Under Agreements to Resell (Repurchase), at contract value:</B><FONT style="FONT-SIZE: 8.5pt"> Securities purchased under agreements to resell and Securities sold under agreements to repurchase are accounted for as collateralized borrowing or lending transactions and are recorded at their contracted resale or repurchase amounts, plus accrued interest. AIG&#146;s policy is to take possession of or obtain a security interest in securities purchased under agreements to resell. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG minimizes the credit risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring customer credit exposure and collateral value and generally requiring additional collateral to be deposited with AIG when necessary. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(l)&nbsp;Financial Services&nbsp;&#151; Finance Receivables:</B><FONT style="FONT-SIZE: 8.5pt"> Finance receivables, which are reported net of unearned finance charges, are held for both investment purposes and for sale. Finance receivables held for investment purposes are carried at amortized cost, which includes accrued finance charges on interest bearing finance receivables, unamortized deferred origination costs, and unamortized net premiums and discounts on purchased finance receivables. The allowance for finance receivable losses is established through the provision for finance receivable losses charged to expense and is maintained at a level considered adequate to absorb estimated credit losses in the portfolio. The portfolio is periodically evaluated on a pooled basis and factors such as economic conditions, portfolio composition, and loss and delinquency experience are considered in the evaluation of the allowance. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Direct costs of originating finance receivables, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to finance charge revenues using the interest method.&nbsp;</DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Finance receivables originated and intended for sale in the secondary market are carried at the lower of cost or fair value, as determined by aggregate outstanding commitments from investors or current investor yield requirements. American General Finance, Inc. (AGF) recognizes net unrealized losses through a valuation allowance by charges to income. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(m)&nbsp;Securities Lending Invested Collateral, at Fair Value and Securities Lending Payable:</B><FONT style="FONT-SIZE: 8.5pt"> AIG&#146;s insurance and asset management operations lend their securities and primarily take cash as collateral with respect to the securities lent. Invested collateral consists of interest-bearing cash equivalents and floating rate bonds, whose changes in fair value are recorded as a separate component of Accumulated other comprehensive income (loss), net of deferred income taxes. The invested collateral is evaluated for other-than-temporary impairment by applying the same criteria used for investments in fixed maturities. Income earned on invested collateral, net of interest payable to the collateral provider, is recorded in Net investment income. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The fair value of securities pledged under securities lending arrangements was $76 billion and $69&nbsp;billion at December&nbsp;31, 2007 and 2006, respectively. These securities are included in bonds available for sale in AIG&#146;s consolidated balance sheet. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(n)&nbsp;Other Invested Assets:</B><FONT style="FONT-SIZE: 8.5pt"> Other invested assets consist primarily of investments by AIG&#146;s insurance operations in hedge funds, private equity and limited partnerships. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Hedge funds and limited partnerships in which AIG&#146;s insurance operations hold in the aggregate less than a five percent interest are reported at fair value. The change in fair value is recognized as a component of Accumulated other comprehensive income (loss). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; With respect to hedge funds and limited partnerships in which AIG holds in the aggregate a five percent or greater interest or less than a five percent interest but in which AIG has more than a minor influence over the operations of the investee, AIG&#146;s carrying value is its share of the net asset value of the funds or the partnerships. The changes in such net asset values, accounted for under the equity method, are recorded in Net investment income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In applying the equity method of accounting, AIG consistently uses the most recently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of AIG&#146;s reporting period. The financial statements of these investees are generally audited on an annual basis. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Also included in Other invested assets are real estate held for investment, aircraft asset investments held by non-financial services subsidiaries and investments in life settlement contracts. See Note&nbsp;3(g) herein for further information. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(o)&nbsp;Short-term Investments:</B><FONT style="FONT-SIZE: 8.5pt"> Short-term investments consist of interest-bearing cash equivalents, time deposits, and investments with original maturities within one year from the date of purchase, such as commercial paper. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(p)&nbsp;Cash:</B><FONT style="FONT-SIZE: 8.5pt"> Cash represents cash on hand and non-interest bearing demand deposits. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(q)&nbsp;Reinsurance Assets:</B><FONT style="FONT-SIZE: 8.5pt"> Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of AIG&#146;s reinsurance agreements for paid and unpaid losses and loss expenses, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(r)&nbsp;Deferred Policy Acquisition Costs:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Policy acquisition costs represent those costs, including commissions, premium taxes and other underwriting expenses that vary with and are primarily related to the acquisition of new business. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>General Insurance:</I> Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is not anticipated in assessing the recoverability of DAC. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Life Insurance&nbsp;&amp; Retirement Services:</I> Policy acquisition costs for traditional life insurance products are generally deferred and amortized over the premium paying period in accordance with FAS&nbsp;60, &#147;Accounting and Reporting by Insurance Enterprises&#148; (FAS&nbsp;60). Policy acquisition costs and policy issuance costs related to universal life, participating life, and investment-type products (investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts in accordance with FAS&nbsp;97, &#147;Accounting and Reporting by Insurance Enterprises for Certain Long-Duration Contracts and for Realized Gains and Losses from the Sale of Investments&#148; (FAS&nbsp;97). Estimated gross profits are composed of net interest income, net realized investment gains and losses, fees, surrender charges, expenses, and mortality and morbidity gains and losses. If estimated gross profits change significantly, DAC is recalculated using the new assumptions. Any resulting adjustment is included in income as an adjustment to DAC. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The DAC for investment-oriented products is also adjusted with respect to estimated gross profits as a result of changes in the net unrealized gains or losses on fixed maturity and equity securities available for sale. Because fixed maturity and equity securities available for sale are carried at aggregate fair value, an adjustment is made to DAC equal to the change in amortization that would have been recorded if such securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. The change in this adjustment, net of tax, is included with the change in net unrealized gains/losses on fixed maturity and equity securities available for sale that is credited or charged directly to Accumulated other comprehensive income (loss). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Value of Business Acquired (VOBA) is determined at the time of acquisition and is reported in the consolidated balance sheet with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For products accounted for under FAS&nbsp;60, VOBA is amortized over the life of the business similar to that for DAC based on the assumptions at purchase. For products accounted for under FAS&nbsp;97, VOBA is amortized in relation to the estimated gross profits to date for each period. As of December&nbsp;31, 2007 and 2006, there had been no impairments of VOBA. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(s)&nbsp;Investments in Partially Owned Companies:</B><FONT style="FONT-SIZE: 8.5pt"> Investments in partially owned companies represents investments entered into for strategic purposes and not solely for capital appreciation or for income generation. These investments are accounted for under the equity method. All other equity method investments are reported in Other invested assets. At December&nbsp;31, 2007, AIG&#146;s significant investments in partially owned companies included its 26.0&nbsp;percent interest in Tata AIG Life Insurance Company, Ltd., its 26.0&nbsp;percent interest in Tata AIG General Insurance Company, Ltd. and its 25.4&nbsp;percent interest in The Fuji Fire and Marine Insurance Co., Ltd. Dividends received from unconsolidated entities in which AIG&#146;s ownership interest is less than 50&nbsp;percent were $30&nbsp;million, $28&nbsp;million and $146&nbsp;million for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively. The undistributed earnings of unconsolidated entities in which AIG&#146;s ownership interest is less than 50&nbsp;percent were $266&nbsp;million, $300&nbsp;million and $179&nbsp;million at December&nbsp;31, 2007, 2006 and 2005, respectively. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(t)&nbsp;Real Estate and Other Fixed Assets:</B><FONT style="FONT-SIZE: 8.5pt"> The costs of buildings and furniture and equipment are depreciated principally on the straight-line basis over their estimated useful lives (maximum of 40&nbsp;years for buildings and ten years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred; expenditures for betterments are capitalized and depreciated. AIG periodically assesses the carrying value of its real estate for purposes of determining any asset impairment. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Also included in Real Estate and Other Fixed Assets are capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software. Such costs are capitalized and amortized using the straight-line method over a period generally not exceeding five years. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(u)&nbsp;Separate and Variable Accounts:</B><FONT style="FONT-SIZE: 8.5pt"> Separate and variable accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives, and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise out of any other business of AIG. The liabilities for these accounts are equal to the account assets. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(v)&nbsp;Goodwill:</B><FONT style="FONT-SIZE: 8.5pt"> Goodwill is the excess of cost over the fair value of identifiable net assets acquired. Goodwill is reviewed for impairment on an annual basis, or more frequently if circumstances indicate that a possible impairment has occurred. The assessment of impairment involves a two-step process whereby an initial assessment for potential impairment is performed, followed by a measurement of the amount of impairment, if any. Impairment testing is performed using the fair value approach, which requires the use of estimates and judgment, at the &#147;reporting unit&#148; level. A reporting unit is the operating segment, or a business that is one level below the operating segment if discrete financial information is prepared and regularly reviewed by management at that level. The determination of a reporting unit&#146;s fair value is based on management&#146;s best estimate, which generally considers the market-based earning multiples of the unit&#146;s peer companies or expected future cash flows. If the carrying value of a reporting unit exceeds its fair value, an impairment is recognized as a charge against income equal to the excess of the carrying value of goodwill over its fair value. No impairments were recorded in 2007, 2006 or 2005. Changes in the carrying amount of goodwill result from business acquisitions, the payment of contingent consideration, foreign currency translation adjustments and purchase price adjustments. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(w)&nbsp;Other Assets:</B><FONT style="FONT-SIZE: 8.5pt"> Other assets consist of prepaid expenses, including deferred advertising costs, sales inducement assets, non-AIGFP derivatives assets carried at fair value, deposits, other deferred charges and other intangible assets. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain direct response advertising costs are deferred and amortized over the expected future benefit period in accordance with SOP&nbsp;93-7, &#147;Reporting on Advertising Costs.&#148; When AIG can demonstrate that its customers have responded specifically to direct-response advertising, the primary purpose of which is to elicit sales to customers, and when it can be shown such advertising results in probable future economic benefits, the advertising costs are capitalized. Deferred advertising costs are amortized on a cost-pool-by-cost-pool basis over the expected future economic benefit period and are reviewed regularly for recoverability. Deferred advertising costs totaled $1.35 billion and $1.05&nbsp;billion at December&nbsp;31, 2007 and 2006, respectively. The amount of expense amortized into income was $395 million, $359&nbsp;million and $272&nbsp;million, for the years ended 2007, 2006, and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG offers sales inducements, which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contractholder are recognized as part of the liability for policyholders&#146; contract deposits in the consolidated balance sheet. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC. To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception, and AIG must demonstrate that such amounts are incremental to amounts AIG credits on similar contracts without bonus interest, and are higher than the contract&#146;s expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $1.7&nbsp;billion and $1.3&nbsp;billion at December&nbsp;31, 2007 and 2006, respectively. The amortization expense associated with these assets is reported within Incurred policy losses and benefits expense in the consolidated statement of income. Such amortization expense totaled $149&nbsp;million, $132&nbsp;million and $127&nbsp;million for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; See Note&nbsp;8 herein for a discussion of derivatives. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(x)&nbsp;Reserve for Losses and Loss Expenses:</B><FONT style="FONT-SIZE: 8.5pt"> Losses and loss expenses are charged to income as incurred. The reserve for losses and loss expenses represents the accumulation of estimates for unpaid reported losses and includes provisions for losses incurred but not reported. The methods of determining such estimates and establishing resulting reserves, including amounts relating to allowances for estimated unrecoverable reinsurance, are reviewed and updated. If the estimate of reserves is determined to be inadequate or redundant, the increase or decrease is reflected in income. AIG discounts its loss reserves relating to workers compensation business written by its U.S.&nbsp;domiciled subsidiaries as permitted by the domiciliary statutory regulatory authorities. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(y)&nbsp;Future Policy Benefits for Life and Accident and Health Contracts and Policyholders&#146; Contract Deposits:</B><FONT style="FONT-SIZE: 8.5pt"> The liability for future policy benefits and policyholders&#146; contract deposits are established using assumptions described in Note&nbsp;9 herein. Future policy benefits for life and accident and health insurance contracts include provisions for future dividends to participating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Policyholders&#146; contract deposits include AIG&#146;s liability for certain guarantee benefits accounted for as embedded derivatives at fair value in accordance with FAS&nbsp;133. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(z)&nbsp;Other Policyholders&#146; Funds:</B><FONT style="FONT-SIZE: 8.5pt"> Other policyholders&#146; funds are reported at cost and include any policyholders&#146; funds on deposit that encompass premium deposits and similar items. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(aa)&nbsp;Financial Services&nbsp;&#151; Securities and Spot Commodities Sold but not yet Purchased, at Fair Value:</B><FONT style="FONT-SIZE: 8.5pt"> Securities and spot commodities sold but not yet purchased represent sales of securities and spot commodities not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Also included are obligations under gold leases, which are accounted for as a debt host with an embedded gold derivative. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(bb)&nbsp;Commercial Paper and Extendible Commercial Notes and Long-Term Borrowings:</B><FONT style="FONT-SIZE: 8.5pt"> AIG&#146;s funding is principally obtained from medium and long-term borrowings and commercial paper. Commercial paper, when issued at a discount, is recorded at the proceeds received and accreted to its par value. Extendible commercial notes are issued by AGF with initial maturities of up to 90&nbsp;days, which AGF may extend to 390&nbsp;days. Long-term borrowings are carried at the principal amount borrowed, net of unamortized discounts or premiums. See Note&nbsp;11 herein for additional information. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Long-term borrowings also include liabilities connected to trust preferred stock principally related to outstanding securities issued by AIG Life Holdings (US), Inc. (AIGLH), a wholly owned subsidiary of AIG. Cash distributions on such preferred stock are accounted for as interest expense. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(cc)&nbsp;Other Liabilities:</B><FONT style="FONT-SIZE: 8.5pt"> Other liabilities consist of other funds on deposit, non-AIGFP free-standing derivatives liabilities carried at fair value, and other payables. See Note&nbsp;8 herein for a discussion of derivatives. AIG has entered into certain insurance and reinsurance contracts, primarily in its General Insurance segment, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the consolidated balance sheet. Net proceeds of these deposits are invested and generate net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liability is reduced. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(dd)&nbsp;Contingent Liabilities:</B><FONT style="FONT-SIZE: 8.5pt"> Amounts are accrued for the resolution of claims that have either been asserted or are deemed probable of assertion if, in the opinion of management, it is both probable that a liability has been incurred and the amount of the liability can be reasonably estimated. In many cases, it is not possible to determine whether a liability has been incurred or to estimate the ultimate or minimum amount of that liability until years after the contingency arises, in which case, no accrual is made until that time. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(ee)&nbsp;Preferred Shareholders&#146; Equity in Subsidiary Companies:</B><FONT style="FONT-SIZE: 8.5pt"> Preferred shareholders&#146; equity in subsidiary companies relates principally to outstanding preferred stock or interest of ILFC, a wholly owned subsidiary of AIG. Cash distributions on such preferred stock or interest are accounted for as interest expense. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(ff)&nbsp;Foreign Currency:</B><FONT style="FONT-SIZE: 8.5pt"> Financial statement accounts expressed in foreign currencies are translated into U.S.&nbsp;dollars in accordance with FAS&nbsp;52, &#147;Foreign Currency Translation&#148; (FAS&nbsp;52). Under FAS&nbsp;52, functional currency assets and liabilities are translated into U.S.&nbsp;dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income (loss), net of any related taxes, in consolidated shareholders&#146; equity. Functional currencies are generally the currencies of the local operating environment. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income. Exchange gains and losses resulting from foreign currency transactions are recorded in income. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(gg)&nbsp;Earnings per Share:</B><FONT style="FONT-SIZE: 8.5pt"> Basic earnings per share is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. Diluted e</FONT>arnings per share is based on those shares used in basic earnings per share plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding, adjusted to reflect all stock dividends and stock splits. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(hh)&nbsp;Recent Accounting Standards:</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Accounting Changes</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><I>SOP 05-1</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In September 2005, the AICPA&nbsp;issued SOP&nbsp;05-1, &#147;Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts&#148; (SOP 05-1). SOP 05-1 provides guidance on accounting for internal replacements of insurance and investment contracts other than those specifically described in FAS&nbsp;97. SOP 05-1 defines an internal replacement as a modification in product benefits, features, rights, or coverage that occurs by the exchange of a contract for a new contract, or by amendment, endorsement, or rider to a contract, or by the election of a feature or coverage within a contract. Internal replacements that result in a substantially changed contract are accounted for as a termination and a replacement contract. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; SOP 05-1 became effective on January&nbsp;1, 2007 and generally affects the accounting for internal replacements occurring after that date. In the first quarter of 2007, AIG recorded a cumulative effect reduction of $82&nbsp;million, net of tax, to the opening balance of retained earnings on the date of adoption. This adoption reflected changes in unamortized DAC, VOBA, deferred sales inducement assets, unearned revenue liabilities and future policy benefits for life and accident and health insurance contracts resulting from a shorter expected life related to certain group life and health insurance contracts and the effect on the gross profits of investment-oriented products related to previously anticipated future internal replacements. This cumulative effect adjustment affected only the Life Insurance&nbsp;&amp; Retirement Services segment. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><I>FAS 155</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In February, 2006, the Financial Accounting Standards Board (FASB)&nbsp;issued FAS 155, &#147;Accounting for Certain Hybrid Financial Instruments&nbsp;&#151; an amendment of FAS 140 and FAS 133&#148; (FAS 155). FAS 155 allows AIG to include changes in fair value in earnings on an instrument-by-instrument basis for any hybrid financial instrument that contains an embedded derivative that would otherwise be required to be bifurcated and accounted for separately under FAS 133. The election to measure the hybrid instrument at fair value is irrevocable at the acquisition or issuance date. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG elected to early adopt FAS 155 as of January&nbsp;1, 2006, and apply FAS 155 fair value measurement to certain structured note liabilities and structured investments in AIG&#146;s available for sale portfolio that existed at December&nbsp;31, 2005. The effect of this adoption resulted in an $11&nbsp;million after-tax ($18&nbsp;million pre-tax) decrease to opening retained earnings as of January&nbsp;1, 2006, representing the difference between the fair value of these hybrid financial instruments and the prior carrying value as of December&nbsp;31, 2005. The effect of adoption on after-tax gross gains and losses was $218&nbsp;million ($336&nbsp;million pre-tax) and $229&nbsp;million ($354&nbsp;million pre-tax), respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In connection with AIG&#146;s early adoption of FAS 155, structured note liabilities of $8.9&nbsp;billion, other structured liabilities in conjunction with equity derivative transactions of $111&nbsp;million, and hybrid financial instruments of $522&nbsp;million at December&nbsp;31, 2006 are now carried at fair value. The effect on earnings for 2006, for changes in the fair value of hybrid financial instruments, was a pre-tax loss of $313&nbsp;million, of which $287&nbsp;million was reflected in Other income and was largely offset by gains on economic hedge positions which were also reflected in operating income, and $26&nbsp;million was reflected in Net investment income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FAS 158</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In September 2006, the FASB issued FAS 158, &#147;Employers&#146; Accounting for Defined Benefit Pension and Other Postretirement Plans&nbsp;&#151; an amendment of FASB Statements No.&nbsp;87, 88, 106 and 132R&#148; (FAS 158). FAS 158 requires AIG to prospectively recognize the overfunded or underfunded status of defined benefit postretirement plans as an asset or liability in AIG&#146;s consolidated balance sheet and to recognize changes in that funded status in the year in which the changes occur through Other comprehensive income. FAS 158 also requires AIG to measure the funded status of plans as of the date of its year-end balance sheet, with limited exceptions. AIG adopted FAS 158 for the year ended December&nbsp;31, 2006. The cumulative effect, net of deferred income taxes, on AIG&#146;s consolidated balance sheet at December&nbsp;31, 2006 was a net reduction in shareholders&#146; equity through a charge to Accumulated other comprehensive income (loss) of $532&nbsp;million, with a corresponding net decrease of $538&nbsp;million in total assets, and a net decrease of $6&nbsp;million in total liabilities. See Note&nbsp;18 herein for additional information on the adoption of FAS 158. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FIN&nbsp;48</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In July 2006, the FASB issued FASB Interpretation No.&nbsp;(FIN)&nbsp;48, &#147;Accounting for Uncertainty in Income Taxes&nbsp;&#151; an interpretation of FASB Statement No.&nbsp;109&#148; (FIN&nbsp;48), which clarifies the accounting for uncertainty in income tax positions. FIN&nbsp;48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of an income tax position taken or expected to be taken in a tax return. FIN&nbsp;48 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and additional disclosures. AIG adopted FIN&nbsp;48 on January&nbsp;1, 2007. Upon adoption, AIG recognized a $71&nbsp;million increase in the liability for unrecognized tax benefits, which was accounted for as a decrease to opening retained earnings as of January&nbsp;1, 2007. See Note&nbsp;21 for additional FIN&nbsp;48 disclosures. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FSP 13-2</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In July 2006, the FASB issued FASB Staff Position No.&nbsp;(FSP)&nbsp;FAS&nbsp;<FONT style="WHITE-SPACE: nowrap">13-2,</FONT> &#147;Accounting for a Change or Projected Change in the Timing of Cash Flows Relating to Income Taxes Generated by a Leveraged Lease Transaction&#148; (FSP <FONT style="WHITE-SPACE: nowrap">13-2).</FONT> FSP <FONT style="WHITE-SPACE: nowrap">13-2</FONT> addresses how a change or projected change in the timing of cash flows relating to income taxes generated by a leveraged lease transaction affects the accounting for the lease by the lessor, and directs that the tax assumptions be consistent with any FIN&nbsp;48 uncertain tax position related to the lease. AIG adopted FSP&nbsp;<FONT style="WHITE-SPACE: nowrap">13-2</FONT> on January&nbsp;1, 2007. Upon adoption, AIG recorded a $50&nbsp;million decrease in the opening balance of retained earnings, net of tax, to reflect the cumulative effect of this change in accounting. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a result of adopting SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">05-1,</FONT> FIN&nbsp;48 and FSP&nbsp;<FONT style="WHITE-SPACE: nowrap">13-2,</FONT> AIG recorded a total decrease to opening retained earnings of $203&nbsp;million as of January&nbsp;1, 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Future Application of Accounting Standards</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><I>FAS&nbsp;157</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In September 2006, the FASB issued FAS&nbsp;157, &#147;Fair Value Measurements&#148; (FAS&nbsp;157). FAS&nbsp;157 defines fair value, establishes a framework for measuring fair value and expands disclosure requirements regarding fair value measurements but does not change existing guidance about whether an instrument is carried at fair value. FAS&nbsp;157 nullifies the guidance in EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3</FONT> that precluded the recognition of a trading profit at the inception of a derivative contract unless the fair value of such contract was obtained from a quoted market price or other valuation technique incorporating observable market data. FAS&nbsp;157 also clarifies that an issuer&#146;s credit standing should be considered when measuring liabilities at fair value. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG adopted FAS&nbsp;157 on January&nbsp;1, 2008, its required effective date. FAS&nbsp;157 must be applied prospectively, except that the difference between the carrying amount and fair value of a stand-alone derivative or hybrid instrument measured using the guidance in EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3</FONT> on recognition of a trading profit at the inception of a derivative, is to be applied as a cumulative-effect adjustment to opening retained earnings on January&nbsp;1, 2008. The adoption of FAS&nbsp;157 was not material to AIG&#146;s financial condition. However, the adoption of FAS 157 is expected to affect first quarter 2008 earnings, due to changes in the valuation methodology for hybrid financial instrument and derivative liabilities (both freestanding and embedded) currently carried at fair value. These methodology changes primarily include the incorporation of AIG&#146;s own credit risk and the inclusion of explicit risk margins, where appropriate. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><I>FAS&nbsp;159</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In February 2007, the FASB issued FAS&nbsp;159, &#147;The Fair Value Option for Financial Assets and Financial Liabilities&#148; (FAS&nbsp;159). FAS&nbsp;159 permits entities to choose to measure at fair value many financial instruments and certain other items that are not required to be measured at fair value. Subsequent changes in fair value for designated items are required to be reported in income. FAS&nbsp;159 also establishes presentation and disclosure requirements for similar types of assets and liabilities measured at fair value. FAS&nbsp;159 permits the fair value option election on an <FONT style="WHITE-SPACE: nowrap">instrument-by-instrument</FONT> basis for eligible items existing at the adoption date and at initial recognition of an asset or liability or upon an event that gives rise to a new basis of accounting for that instrument. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG adopted FAS&nbsp;159 on January&nbsp;1, 2008, its required effective date. The adoption of FAS&nbsp;159 with respect to elections made in the Life Insurance&nbsp;&amp; Retirement Services segment is expected to result in a decrease to opening 2008 retained earnings of approximately $600&nbsp;million. The adoption of FAS&nbsp;159 with respect to elections made by AIGFP is currently being evaluated for the effect of recently issued draft guidance by the FASB, anticipated to be issued in final form in early 2008, and its potential effect on AIG&#146;s consolidated financial statements. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><I>SOP 07-1</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In June 2007, the AICPA issued SOP No.&nbsp;<FONT style="WHITE-SPACE: nowrap">07-1</FONT> (SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">07-1),</FONT> &#147;Clarification of the Scope of the Audit and Accounting Guide &#145;Audits of Investment Companies&#146; and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies.&#148; SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">07-1</FONT> amends the guidance for whether an entity may apply the Audit and Accounting Guide, &#147;Audits of Investment Companies&#148; (the Guide). In February 2008, the FASB issued an FSP indefinitely deferring the effective date of SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">07-1.</FONT> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FAS&nbsp;141(R)</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In December 2007, the FASB issued FAS&nbsp;141 (revised 2007), &#147;Business Combinations<I>&#148; </I>(FAS&nbsp;141(R)). FAS&nbsp;141(R) changes the accounting for business combinations in a number of ways, including broadening the transactions or events that are considered business combinations, requiring an acquirer to recognize 100&nbsp;percent of the fair values of assets acquired, liabilities assumed, and noncontrolling interests in acquisitions of less than a 100&nbsp;percent controlling interest when the acquisition constitutes a change in control of the acquired entity, recognizing contingent consideration arrangements at their acquisition-date fair values with subsequent changes in fair value generally reflected in income, and recognizing preacquisition loss and gain contingencies at their acquisition-date fair values, among other changes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; FAS&nbsp;141(R) is required to be adopted for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December&nbsp;15, 2008 (January&nbsp;1, 2009 for AIG). Early adoption is prohibited. AIG is evaluating the effect FAS&nbsp;141(R) will have on its consolidated financial statements. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><I>FAS&nbsp;160</I></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In December 2007, the FASB issued FAS&nbsp;160, &#147;Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB No.&nbsp;51&#148; (FAS&nbsp;160). FAS&nbsp;160 requires noncontrolling (i.e., minority) interests in partially owned consolidated subsidiaries to be classified in the consolidated balance sheet as a separate component of consolidated shareholders&#146; equity. FAS&nbsp;160 also establishes accounting rules for subsequent acquisitions and sales of noncontrolling interests and how noncontrolling interests should be presented in the consolidated statement of income. The noncontrolling interests&#146; share of subsidiary income should be reported as a part of consolidated net income with disclosure of the attribution of consolidated net income to the controlling and noncontrolling interests on the face of the consolidated statement of income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; FAS&nbsp;160 is required to be adopted in the first annual reporting period beginning on or after December&nbsp;15, 2008 (January&nbsp;1, 2009 for AIG) and earlier application is prohibited. FAS&nbsp;160 must be adopted prospectively, except that noncontrolling interests should be reclassified from liabilities to a separate component of shareholders&#146; equity and consolidated net income should be recast to include net income attributable to both the controlling and noncontrolling interests retrospectively. Had AIG adopted FAS&nbsp;160 at December&nbsp;31, 2007, AIG would have reclassified $10.4&nbsp;billion of minority (i.e., noncontrolling) interests from liabilities to Shareholders&#146; equity.</DIV></BODY></HTML> 1.&nbsp;Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of AIG, its controlled false false Description containing the entire organization, consolidation, basis of presentation of financial statements and significant accounting policies disclosure. No authoritative reference available. false 4 1 us-gaap_SegmentReportingDisclosureTextBlock us-gaap true na duration string This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>2.&nbsp;Segment Information</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG identifies its reportable segments by product line consistent with its management structure. These segments and their respective operations are as follows: </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>General Insurance:</FONT> </I>AIG&#146;s General Insurance subsidiaries write substantially all lines of commercial property and casualty insurance and various personal lines both domestically and abroad. Revenues in the General Insurance segment represent General Insurance net Premiums and other considerations earned, Net investment income and Net realized capital gains (losses). AIG&#146;s principal General Insurance operations are as follows: </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Domestic Brokerage Group (DBG)&nbsp;writes substantially all classes of business insurance in the U.S.&nbsp;and Canada, accepting such business mainly from insurance brokers. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Transatlantic Holdings, Inc. (Transatlantic) subsidiaries offer reinsurance on both a treaty and facultative basis to insurers in the U.S. and abroad. Transatlantic structures programs for a full range of property and casualty products with an emphasis on specialty risks. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s Personal Lines operations provide automobile insurance through aigdirect.com, the newly formed operation resulting from the merger of AIG Direct and 21st&nbsp;Century Insurance Group (21st Century), and the Agency Auto Division, as well as a broad range of coverages for high net worth individuals through the AIG Private Client Group. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Mortgage Guaranty operations provide residential mortgage guaranty insurance that covers the first loss for credit defaults on high loan-to-value conventional first- and second-lien mortgages for the purchase or refinance of one to four family residences. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s Foreign General Insurance group accepts risks primarily underwritten through American International Underwriters (AIU), a marketing unit consisting of wholly owned agencies and insurance companies. The Foreign General Insurance group also includes business written by AIG&#146;s foreign-based insurance subsidiaries. The Foreign General Insurance group uses various marketing methods to write both business and consumer lines insurance with certain refinements for local laws, customs and needs. AIU operates in Asia, the Pacific Rim, Europe, including the United Kingdom, Africa, the Middle East and Latin America. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Each of the General Insurance sub-segments is comprised of groupings of major products and services as follows: DBG is comprised of domestic commercial insurance products and services; Transatlantic is comprised of reinsurance products and services sold to other general insurance companies; Personal Lines is comprised of general insurance products and services sold to individuals; Mortgage Guaranty is comprised of products insuring against losses arising under certain loan agreements; and Foreign General is comprised of general insurance products sold overseas. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Life Insurance&nbsp;&amp; Retirement Services:</FONT> </I>AIG&#146;s Life Insurance&nbsp;&amp; Retirement Services subsidiaries offer a wide range of insurance and retirement savings products both domestically and abroad. Insurance-oriented products consist of individual and group life, payout annuities (including structured settlements), endowment and accident and health policies. Retirement savings products consist generally of fixed and variable annuities. Revenues in the Life Insurance&nbsp;&amp; Retirement Services segment represent Life Insurance&nbsp;&amp; Retirement Services Premiums and other considerations, Net investment income and Net realized capital gains (losses). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s principal Foreign Life Insurance&nbsp;&amp; Retirement Services operations are American Life Insurance Company (ALICO), American International Assurance Company, Limited, together with American International Assurance Company (Bermuda) Limited (AIA), Nan Shan Life Insurance Company, Ltd. (Nan Shan), The Philippine American Life and General Insurance Company (Philamlife), AIG Edison Life Insurance Company (AIG Edison Life) and AIG Star Life Insurance Co. Ltd. (AIG Star Life). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s principal Domestic Life Insurance&nbsp;&amp; Retirement Services operations are American General Life Insurance Company (AG Life), The United States Life Insurance Company in the City of New York (USLIFE), American General Life and Accident Insurance Company (AGLA and, collectively with AG Life and USLIFE, the Domestic Life Insurance internal reporting unit), AIG Annuity Insurance Company (AIG Annuity), The Variable Annuity Life Insurance Company (VALIC)&nbsp;and AIG Retirement Services, Inc (AIG SunAmerica and, collectively with AIG Annuity and VALIC, the Domestic Retirement Services internal reporting unit). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; American International Reinsurance Company (AIRCO)&nbsp;acts primarily as an internal reinsurance company for AIG&#146;s insurance operations. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Life Insurance&nbsp;&amp; Retirement Services is comprised of two major groupings of products and services: insurance-oriented products and services and retirement savings products and services. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Financial Services:</FONT> </I>AIG&#146;s Financial Services subsidiaries engage in diversified activities including aircraft and equipment leasing, capital markets, consumer finance and insurance premium finance. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s Aircraft Leasing operations represent the operations of International Lease Finance Corporation (ILFC), which generates its revenues primarily from leasing new and used commercial jet aircraft to domestic and foreign airlines. Revenues also result from the remarketing of commercial jets for its own account, and remarketing and fleet management services for airlines and for financial institutions. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Capital Markets represents the operations of AIGFP, which engages as principal in a wide variety of financial transactions, including standard and customized financial products involving commodities, credit, currencies, energy, equities and rates and provides credit protection through credit default swaps on certain super senior tranches of collateralized debt obligations (CDOs). AIGFP also invests in a diversified portfolio of securities and principal investments and engages in borrowing activities that include issuing standard and structured notes and other securities and entering into guaranteed investment agreements (GIAs). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Consumer Finance operations include American General Finance Inc. (AGF)&nbsp;as well as AIG Consumer Finance Group Inc. (AIGCFG). AGF and AIGCFG provide a wide variety of consumer finance products, including non-conforming real estate mortgages, consumer loans, retail sales finance and credit-related insurance to customers both domestically and overseas, particularly in emerging and developing markets. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Asset Management:</FONT> </I>AIG&#146;s Asset Management operations comprise a wide variety of investment-related services and investment products. Such services and products are offered to individuals, pension funds and institutions globally through AIG&#146;s Spread-Based Investment business, Institutional Asset Management, and Brokerage Services and Mutual Funds business. Revenues in the Asset Management segment represent investment income with respect to spread-based products and management, advisory and incentive fees. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes AIG&#146;s operations by reporting segment for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="12%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>Operating Segments</TD> <TD>&nbsp;</TD> <TD colSpan=15>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=15>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=15>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Life</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=15>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidation</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>General</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>&amp;&nbsp;Retirement</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Financial</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Asset</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Management<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=3>Eliminations<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)(d)(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,708</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>53,570</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,309</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5,625</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>457</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>110,051</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>110,064</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>29</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>128</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>7,794</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>567</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,170</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,688</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,688</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss) before minority interest<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,526</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,186</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(9,515</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,164</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2,140</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,221</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>722</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,943</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,393</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,494</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3,260</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>334</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>537</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,498</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(43</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,455</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>300</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>392</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,831</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>88</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>179</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,790</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,790</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>354</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>532</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,569</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,557</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>271</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,283</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,283</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>181,708</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>615,386</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>203,894</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>77,274</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>126,874</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,205,136</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(144,631</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,060,505</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>49,206</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>50,878</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,777</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,543</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>112,887</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>500</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>113,387</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>74</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,005</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>105</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>744</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,951</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,951</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss) before minority interest<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,412</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,121</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>383</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,538</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,435</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21,019</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>668</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21,687</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,351</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,892</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(26</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>575</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>719</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,511</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,537</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>274</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,655</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>164</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,374</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,374</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>375</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>711</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,278</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>835</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>244</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,443</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,443</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>167,004</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>550,957</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>202,485</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>78,275</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>107,517</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,106,238</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(126,828</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>979,410</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,174</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>48,020</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,677</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,582</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>344</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>108,797</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(16</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>108,781</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>83</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,164</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>408</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,673</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,673</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss) before minority interest<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,315</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,965</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,424</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,963</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(2,765</TD> <TD vAlign=bottom noWrap align=left>)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(f)</SUP></I></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,902</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>311</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,213</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>169</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,407</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,418</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>723</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(587</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,130</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>128</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,258</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>273</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,447</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>43</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>169</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,200</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>417</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>590</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,300</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>194</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,526</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,526</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>150,667</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>489,331</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>161,919</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69,584</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>94,047</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>965,548</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(112,500</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>853,048</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 5pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Beginning in 2007, revenues and operating income related to certain foreign investment contracts, which were historically reported as a component of the Asset Management segment, are now reported in the Life Insurance &amp; Retirement Services segment, net realized capital gains and losses; including derivative gains and losses and foreign exchange transaction gains and losses for Financial Services entities other than AIGFP and Asset Management entities, which were previously reported as part of AIG&#146;s Other category, are now included in Asset Management and Financial Services revenues and operating income; and revenues and operating income related to consolidated managed partnerships and funds, which were historically reported in the Asset Management segment, are now being reported in Consolidation and eliminations. All prior periods have been revised to conform to the current presentation.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Includes AIG Parent and other operations that are not required to be reported separately. The following table presents the operating loss for AIG&#146;s Other category for the years ended December&nbsp;31, 2007, 2006 and 2005:</I></TD></TR></TBODY></TABLE> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="52%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>For the Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss):</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity earnings in partially owned companies*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>157</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>193</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(124</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1,223</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(859</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(541</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unallocated corporate expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(560</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(517</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(413</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Compensation expense&nbsp;&#151; SICO Plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(39</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(108</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(205</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Compensation expense&nbsp;&#151; Starr tender offer</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(54</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net realized capital gains (losses)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(409</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(37</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>269</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Regulatory settlement costs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,644</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other miscellaneous, net</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(66</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(107</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2,140</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(1,435</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(2,765</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="2%"></TD> <TD width="96%"></TD></TR> <TR vAlign=top> <TD>&nbsp;</TD> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Includes current year catastrophe-related losses from unconsolidated entities of $312&nbsp;million in 2005. There were no significant catastrophe-related losses from unconsolidated entities in 2007 and 2006.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(c)&nbsp;</I></TD> <TD align=left><I>Represents the sum of General Insurance net premiums earned, Life Insurance&nbsp;&amp; Retirement Services premiums and other considerations, net investment income, Financial Services interest, lease and finance charges, Asset Management investment income from spread-based products and management, advisory and incentive fees, and realized capital gains (losses).</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(d)&nbsp;</I></TD> <TD align=left><I>In 2007, 2006 and 2005, includes other-than-temporary impairment charges of $4.7&nbsp;billion, $944&nbsp;million and $598&nbsp;million, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(e)&nbsp;</I></TD> <TD align=left><I>Both revenues and operating income (loss) include an unrealized market valuation loss of $11.5&nbsp;billion on AIGFP&#146;s super senior credit default swap portfolio and an other-than-temporary impairment charge of $643&nbsp;million on AIGFP&#146;s available for sale investment securities reported in other income.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(f)&nbsp;</I></TD> <TD align=left><I>Includes settlement costs of $1.64&nbsp;billion as described in Note&nbsp;12(a) Litigation and Investigations herein.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes AIG&#146;s General Insurance operations by major internal reporting unit for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="20%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=31>General Insurance</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=31>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Domestic</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Foreign</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidation</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Brokerage</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Personal</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Mortgage</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>General</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reportable</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>General</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Group</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Transatlantic</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Lines</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Guaranty</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Segment</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Eliminations</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>27,653</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,382</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,924</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,041</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,715</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,715</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(7</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,708</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses&nbsp;&amp; loss expenses incurred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>15,948</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,638</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,660</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,493</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,243</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>29,982</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>29,982</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Underwriting expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,400</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,083</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,197</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>185</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,335</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>11,200</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>11,200</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>7,305</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>661</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>67</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(637</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,137</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,533</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(7</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,526</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>97</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>70</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>125</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>300</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>300</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>93</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>81</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>21</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>155</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>354</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>354</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>112,675</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>15,484</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5,930</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,550</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>48,728</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>187,367</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(5,659</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>181,708</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>27,419</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,050</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,871</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>877</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>11,999</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>49,216</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(10</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>49,206</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses&nbsp;&amp; loss expenses incurred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>16,779</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,463</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,306</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>349</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,155</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,052</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,052</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Underwriting expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,795</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>998</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,133</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,616</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,742</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,742</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,845</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>589</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>432</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>328</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,228</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,422</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,412</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>52</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>115</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>274</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>274</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>125</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>94</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>143</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>375</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>375</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>104,866</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,391</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,604</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>43,879</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>172,008</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(5,004</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>167,004</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,171</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,766</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,848</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>655</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,719</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,159</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,174</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses&nbsp;&amp; loss expenses incurred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21,466</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,877</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,566</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>139</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,043</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33,091</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33,091</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Underwriting expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,525</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>928</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,087</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>153</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,075</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,768</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,768</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss) <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(820</TD> <TD vAlign=bottom noWrap align=left>)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(39</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>195</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>363</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,601</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,300</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,315</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>114</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>48</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>105</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>273</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>273</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>119</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>94</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>196</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>417</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>417</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>95,829</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>12,365</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,245</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,165</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>39,044</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>155,648</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(4,981</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>150,667</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 5pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Catastrophe-related losses in 2007 and 2005 by reporting unit were as follows. There were no significant catastrophe-related losses in 2006.</I></TD></TR></TBODY></TABLE> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="38%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=17>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2007</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2005</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net Reinstatement</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net Reinstatement</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Related Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Premium Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Related Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Premium Cost</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=17>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reporting Unit:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">DBG</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>113</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(13</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,811</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>136</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Transatlantic</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>463</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>45</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Personal Lines</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>112</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage Guaranty</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign General Insurance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>90</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>229</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>80</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>275</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,625</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>263</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Includes the effect of out of period adjustments related to the accounting for certain interests in unit investment trusts (UCITS). For DBG, the effect was an increase of $66&nbsp;million in both revenues and operating income and for Foreign General Insurance, the effect was an increase of $424&nbsp;million in both revenues and operating income.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Includes the fourth quarter 2005 increase in net reserves of approximately $1.8&nbsp;billion resulting from the annual review of General Insurance loss and loss adjustment reserves.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(d)</I></TD> <TD align=left><I>Includes $291&nbsp;million of expenses related to changes in estimates for uncollectible reinsurance and other premium balances, and $100&nbsp;million of accrued expenses in connection with certain workers compensation insurance policies written between 1985 and 1996.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes AIG&#146;s Life Insurance&nbsp;&amp; Retirement Services operations by major internal reporting unit for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="18%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=41>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=39>Life Insurance&nbsp;&amp; Retirement Services</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=38>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=35>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total Life</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Domestic</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Domestic</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidation</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance&nbsp;&amp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Japan</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Life</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Retirement</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reportable</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Retirement</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Asia</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Insurance</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Segment</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Eliminations</TD> <TD></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=41>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance-oriented products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14,393</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>19,896</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>&nbsp; </FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,535</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>42,824</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>42,824</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Retirement savings products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,783</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>191</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>493</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,279</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,746</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10,746</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>18,176</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>20,087</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9,028</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,279</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>53,570</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>53,570</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,044</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,153</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>642</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,347</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,186</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,186</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>110</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>84</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>85</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>113</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>392</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>392</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>166</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>232</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>53</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>81</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>532</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>532</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>177,413</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>132,521</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>108,908</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>203,441</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>622,283</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(6,897</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>615,386</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(c)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance-oriented products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>13,310</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>17,712</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>8,538</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>39,560</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>39,560</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Retirement savings products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,441</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>168</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>568</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,141</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,318</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,318</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>16,751</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17,880</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,106</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,141</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50,878</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50,878</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,821</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,060</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>917</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,323</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,121</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,121</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>101</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>70</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>63</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>342</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>260</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>71</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>711</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>711</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>152,409</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>108,850</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>103,624</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>192,885</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>557,768</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(6,811</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>550,957</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance-oriented products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,524</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15,853</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>8,525</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>36,902</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>36,902</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Retirement savings products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,413</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>129</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>690</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,886</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,118</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,118</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,937</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,982</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,215</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,886</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>48,020</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>48,020</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,020</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,286</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,495</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,164</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,965</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,965</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>91</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>65</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>31</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>268</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>153</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>340</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>71</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>590</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>590</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>124,524</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>87,491</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>99,594</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>185,383</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>496,992</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(7,661</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>489,331</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=42>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>In 2007, 2006 and 2005, includes other-than-temporary impairment charges of $2.8&nbsp;billion, $641&nbsp;million and $425&nbsp;million, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Includes a positive out-of-period adjustment of $158&nbsp;million related to foreign exchange remediation activities.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Includes the effect of out-of-period adjustments related to the accounting for UCITS in 2006, which increased revenues by $240&nbsp;million and operating income by $169&nbsp;million.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=right>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes AIG&#146;s Financial Services operations by major internal reporting unit for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="16%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=28>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=27>Financial Services</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=26>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=15>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidation</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Aircraft</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Capital</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consumer</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reportable</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Financial</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Leasing<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Markets<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Finance<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Segment</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Elimination</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Services</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=28>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)(e)(f)(g)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,694</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(9,979</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,655</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,471</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(159</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,150</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,309</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,650</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,644</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,437</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>63</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7,794</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7,794</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)(f)(g)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>873</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(10,557</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>171</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(9,515</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(9,515</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,751</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>24</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>41</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>15</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,831</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,831</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,164</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>21</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>62</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>322</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,569</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,569</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>44,970</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>115,487</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>36,822</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>17,357</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>214,636</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(10,742</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>203,894</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,082</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(186</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,587</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>320</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,803</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(26</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,777</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,442</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,215</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,303</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>108</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,068</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(63</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,005</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>578</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(873</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>668</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>383</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>383</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,584</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>41</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,655</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,655</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,012</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>52</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>199</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,278</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,278</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>41,975</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>121,243</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>32,702</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>12,368</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>208,288</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(5,803</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>202,485</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,668</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,260</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,563</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>206</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,697</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(20</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,677</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest expense<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,125</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,033</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,005</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>201</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,364</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(200</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,164</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>769</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,661</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>922</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>72</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,424</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,424</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Depreciation expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,384</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>20</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,447</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,447</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Capital expenditures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,193</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>54</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,300</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,300</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year-end identifiable assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>37,515</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>90,090</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,704</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,984</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>166,293</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(4,374</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>161,919</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Both revenues and operating income include gains (losses) from hedging activities that did not qualify for hedge accounting treatment under FAS&nbsp;133, including the related foreign exchange gains and losses. In 2007, 2006 and 2005, the effect was $(37)&nbsp;million, $(73)&nbsp;million and $93&nbsp;million, respectively. These amounts result primarily from interest rate and foreign currency derivatives that are effective economic hedges of borrowings. In the second quarter of 2007, ILFC began applying hedge accounting to most of its derivatives hedging interest rate and foreign exchange risks associated with its floating rate and foreign currency denominated borrowings.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Both revenues and operating income include gains (losses) from hedging activities that did not qualify for hedge accounting treatment under FAS&nbsp;133, including the related foreign exchange gains and losses. In 2007, 2006 and 2005, the effect was $211&nbsp;million, $(1.82)&nbsp;billion and $2.01&nbsp;billion, respectively. The year ended December&nbsp;31, 2007 includes a $380&nbsp;million out of period charge to reverse net gains recognized on transfers of available for sale securities among legal entities consolidated within AIGFP. The year ended December&nbsp;31, 2006 includes an out of period charge of $223&nbsp;million related to the remediation of the material weakness in internal control over the accounting for certain derivative transactions under FAS&nbsp;133. In the first quarter of 2007, AIGFP began applying hedge accounting for certain of its interest rate swaps and foreign currency forward contracts hedging its investments and borrowings.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Both revenues and operating income include gains (losses) from hedging activities that did not qualify for hedge accounting treatment under FAS&nbsp;133, including the related foreign exchange gains and losses. In 2007, 2006 and 2005, the effect was $(20)&nbsp;million, $(94)&nbsp;million and $75&nbsp;million, respectively. These amounts result primarily from interest rate and foreign currency derivatives that are effective economic hedges of borrowings. In the second quarter of 2007, AGF began applying hedge accounting to most of its derivatives hedging interest rate and foreign exchange risks associated with its floating rate and foreign currency denominated borrowings.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(d)</I></TD> <TD align=left><I>Represents primarily the sum of aircraft lease rentals from ILFC, AIGFP hedged financial positions entered into in connection with counterparty transactions, the effect of hedging activities that did not qualify for hedge accounting treatment under FAS&nbsp;133, including the related foreign exchange gains and losses, and finance charges from consumer finance operations.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(e)&nbsp;</I></TD> <TD align=left><I>Interest expense for the Capital Markets business is included in Revenues above and in Other income in the consolidated statement of income.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(f)&nbsp;</I></TD> <TD align=left><I>Both revenues and operating income (loss) include an unrealized market valuation loss of $11.5&nbsp;billion on AIGFP&#146;s super senior credit default swap portfolio and an other-than-temporary impairment charge of $643&nbsp;million on AIGFP&#146;s available for sale investment securities reported in other income.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(g)&nbsp;</I></TD> <TD align=left><I>Includes a pre-tax charge of $178 million in connection with domestic consumer finance&#146;s mortgage banking activities.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>A substantial portion of AIG&#146;s operations is conducted in countries other than the United States and Canada. The following table summarizes AIG&#146;s operations by major geographic segment. Allocations have been made on the basis of the location of operations and assets.</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="49%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=17>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>Geographic Segments</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=15>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Domestic<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Far East</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Foreign</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>46,402</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>36,512</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>27,150</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>110,064</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Real estate and other fixed assets, net of accumulated depreciation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,202</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,404</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>912</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5,518</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Flight equipment primarily under operating leases, net of accumulated depreciation<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>41,984</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>41,984</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>57,984</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>33,883</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,520</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>113,387</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Real estate and other fixed assets, net of accumulated depreciation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,432</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,082</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>867</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,381</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Flight equipment primarily under operating leases, net of accumulated depreciation<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>39,875</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>39,875</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>59,858</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,076</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>16,847</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>108,781</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Real estate and other fixed assets, net of accumulated depreciation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,905</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>929</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>807</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,641</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Flight equipment primarily under operating leases, net of accumulated depreciation<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,245</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,245</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Including revenues from insurance operations in Canada of $1.3</I>&nbsp;<I>billion, $1.1&nbsp;billion and $968&nbsp;million in 2007, 2006 and 2005, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Approximately 90&nbsp;percent of ILFC&#146;s fleet is operated by foreign airlines.</I></TD></TR></TBODY></TABLE></BODY></HTML> 2.&nbsp;Segment Information AIG identifies its reportable segments by product line consistent with its management structure. These segments and their false false This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable segments include those that that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10% or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 false 5 1 aig_InvestmentsTextBlock aig false na duration string Describes statutory deposits, net investment income, net realized gains and losses, fair value of available for sale and held... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>3.&nbsp;Investments</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Statutory Deposits:</B><FONT style="FONT-SIZE: 8.5pt"> Cash and securities with carrying values of $13.6&nbsp;billion and $14.8&nbsp;billion were deposited by AIG&#146;s insurance subsidiaries under requirements of regulatory authorities at December&nbsp;31, 2007 and 2006, respectively. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;Net Investment Income:</B><FONT style="FONT-SIZE: 8.5pt"> An analysis of net investment income follows: </FONT></DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="57%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=13><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fixed maturities<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22,330</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20,393</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>18,690</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,361</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,733</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,716</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><FONT color=#002868>Interest on mortgage and other loans </FONT></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,423</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,253</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,177</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Partnerships</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,986</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,596</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,056</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mutual funds</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>650</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>845</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other invested assets<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>941</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,293</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>820</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total investment income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>29,691</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,113</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23,463</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investment expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,072</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,043</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>879</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net investment income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28,619</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>26,070</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>22,584</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Includes short-term investments.</I></TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Includes net investment income from securities lending activities, representing interest earned on securities lending invested collateral offset by interest expense on securities lending payable.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B>(c)&nbsp;Net Realized Gains and Losses:</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The Net realized capital gains (losses) and increase (decrease) in unrealized appreciation of AIG&#146;s available for sale investments were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="58%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net realized capital gains (losses):</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Sales of fixed maturities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(468</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(382</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>372</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Sales of equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,087</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>813</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>643</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Sales of real estate and other assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>619</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>303</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>88</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other-than-temporary impairments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(4,072</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(944</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(598</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign exchange transactions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(643</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(382</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>701</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Derivative instruments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(115</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>698</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(865</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3,592</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>106</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>341</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increase (decrease) in unrealized appreciation of investments:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fixed maturities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5,504</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(198</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(4,656</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,440</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>432</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>850</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3,842</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>986</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,138</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGFP investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1,140</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,354</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,909</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increase (decrease) in unrealized appreciation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(8,046</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,574</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(3,577</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>Net unrealized gains (losses) included in the consolidated statement of income from investment securities classified as trading securities in 2007, 2006 and 2005 were $1.1&nbsp;billion, $938&nbsp;million and $1.1&nbsp;billion, respectively. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The gross realized gains and gross realized losses from sales of AIG&#146;s available for sale securities were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="40%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=24>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><B><FONT color=#002868>2007</FONT></B></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2006</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2005</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Gross</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Gross</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Realized</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=24>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fixed maturities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>680</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,148</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>711</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,093</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,586</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,214</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,368</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>291</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,111</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>320</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>930</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>354</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Preferred stocks</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>10</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>101</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,058</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,439</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,844</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,413</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,617</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,602</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(d)&nbsp;Fair Value of Investment Securities:</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The amortized cost or cost and estimated fair value of AIG&#146;s available for sale and held to maturity securities at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="20%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=34>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15><B><FONT color=#002868>December&nbsp;31, 2007*</FONT></B></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>December&nbsp;31, 2006</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=14>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=14>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Amortized</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Gross</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Gross</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amortized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gross</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost or</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrealized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrealized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Fair</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost or</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrealized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrealized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Fair</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=right colSpan=2><I>(in millions)</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Gains</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Losses</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=34>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Available for sale:<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.&nbsp;government and government sponsored entities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7,956</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>333</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>37</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,252</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,667</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>221</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>140</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,748</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Obligations of states, municipalities and political subdivisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>46,087</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>927</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>160</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>46,854</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>59,785</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,056</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>210</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>60,631</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Non-U.S.&nbsp;governments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>67,023</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,920</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>743</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>70,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>62,860</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>5,461</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>437</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>67,884</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Corporate debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>239,822</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,216</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,518</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>241,520</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>257,383</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>7,443</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,536</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>262,290</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage-backed, asset- backed and collateralized</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>140,982</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,221</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7,703</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>134,500</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>104,687</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>502</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>362</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>104,827</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total bonds</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>501,870</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>12,617</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,161</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>501,326</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>492,382</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,683</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,685</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>503,380</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>15,188</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5,545</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>463</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,270</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>13,147</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,807</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>159</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>15,795</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>517,058</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,162</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,624</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>521,596</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>505,529</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>17,490</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>3,844</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>519,175</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Held to maturity:<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bonds&nbsp;&#151; Obligations of states, municipalities and political subdivisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>21,581</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>609</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>33</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22,157</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,437</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>731</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>22,154</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>At December&nbsp;31, 2007 and 2006, fixed maturities held by AIG that were below investment grade or not rated totaled $27.0&nbsp;billion and $26.6&nbsp;billion, respectively.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents the amortized cost and estimated fair values of AIG&#146;s available for sale and held to maturity fixed maturity securities at December&nbsp;31, 2007, by contractual maturity. Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="54%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Available for Sale</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Held to Maturity</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amortized</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amortized</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Fair Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Fair Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Due in one&nbsp;year or less</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,844</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,994</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>72</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>69</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Due after one&nbsp;year through five&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>95,494</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>97,466</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>284</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>277</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Due after five&nbsp;years through ten&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>121,961</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>123,196</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,511</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,547</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Due after ten&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>117,589</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>120,170</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,714</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>20,264</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage-backed, asset-backed and collateralized</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>140,982</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>134,500</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>501,870</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>501,326</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,581</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>22,157</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>AIG&#146;s available for sale securities are recorded on the consolidated balance sheet at December&nbsp;31, 2007 and 2006 as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="65%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Fair Value</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=3><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bonds available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>397,372</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>386,869</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Common stocks available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17,900</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,256</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Preferred stocks available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,370</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,539</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Financial Services securities available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40,305</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,205</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities lending invested collateral</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>63,649</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69,306</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=11>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>521,596</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>519,175</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=11>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>(e)&nbsp;Non-Income Producing Invested Assets:</B><FONT style="FONT-SIZE: 8.5pt"> At December&nbsp;31, 2007, non-income producing invested assets were insignificant. </FONT></DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><B>(f)</B></TD> <TD align=left><B>Gross Unrealized Losses and Estimated Fair Values on Investments:</B></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table summarizes the cost basis and gross unrealized losses on AIG&#146;s available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position, at December&nbsp;31, 2007 and 2006:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="29%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=25>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><FONT face="" color=#0000cb>12 Months or less</FONT></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><FONT face="" color=#0000cb>More than 12 Months</FONT></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><FONT face="" color=#0000cb>Total</FONT></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Unrealized</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Unrealized</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Unrealized</FONT></TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I><FONT color=#0000cb>(in millions)</FONT></I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Cost<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Losses</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Cost<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Losses</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Cost<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT face="" color=#0000cb>Losses</FONT></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap colSpan=25>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bonds<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>190,809</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,935</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>65,137</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,226</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>255,946</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,161</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,433</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>463</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,433</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>463</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>195,242</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>10,398</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>65,137</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,226</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>260,379</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,624</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bonds<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>69,656</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,257</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>84,040</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,428</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>153,696</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,685</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,734</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>159</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,734</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>159</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>72,390</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,416</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>84,040</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,428</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>156,430</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,844</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>For bonds, represents amortized cost.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Primarily relates to the corporate debt category.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, AIG held 37,281 and 2,307 of individual bond and stock investments, respectively, that were in an unrealized loss position, of which 9,930 individual investments were in an unrealized loss position for a continuous 12&nbsp;months or longer. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG recorded other-than-temporary impairment charges of $4.7 billion (including $643&nbsp;million related to AIGFP recorded in Other income), $944&nbsp;million and $598&nbsp;million in 2007, 2006 and 2005, respectively. See Note&nbsp;1(c) herein for AIG&#146;s other-than-temporary impairment accounting policy. </DIV> <TABLE style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="3%"></TD> <TD width="97%"></TD></TR> <TR vAlign=top> <TD><B>(g)&nbsp;</B></TD> <TD align=left><B>Other Invested Assets:</B></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Other invested assets at December&nbsp;31, 2007 and 2006 consisted of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="76%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR> <TD noWrap align=left colSpan=9>At December&nbsp;31,</TD></TR> <TR> <TD noWrap align=left>(in millions)</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Partnerships<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28,938</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,657</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mutual funds</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,891</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,892</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investment real estate<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,877</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,694</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Aircraft asset investments<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,689</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,784</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life settlement contracts<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,627</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,090</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Consolidated managed partnerships and&nbsp;funds<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(e)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,614</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,923</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">All other investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5,187</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,071</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other invested assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>58,823</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>42,111</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Includes private equity partnerships and hedge funds.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Net of accumulated depreciation of $548&nbsp;million and $585&nbsp;million in 2007 and 2006, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Consist primarily of Life Insurance &amp; Retirement Services investments in aircraft equipment.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(d)</I></TD> <TD align=left><I>See paragraph (h) below for additional information.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(e)</I></TD> <TD align=left><I>Represents AIG managed partnerships and funds that are consolidated.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007 and 2006, $7.2&nbsp;billion and $5.3&nbsp;billion of Other invested assets related to available for sale investments carried at fair value, with unrealized gains and losses recorded in of Accumulated other comprehensive income (loss), net of deferred taxes, with almost all of the remaining investments being accounted for on the equity method of accounting. All of the investments are subject to impairment testing (see Note&nbsp;1(c) herein). The gross unrealized loss on the investments accounted for as available for sale at December&nbsp;31, 2007 was $621&nbsp;million, the majority of which represents investments that have been in a continuous unrealized loss position for less than 12&nbsp;months. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(h)&nbsp;Investments in Life Settlement Contracts:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, the carrying value of AIG&#146;s life settlement contracts was $1.6&nbsp;billion, and is included in Other invested assets in the consolidated balance sheet. These investments are monitored for impairment on a contract by contract basis quarterly. During 2007, income recognized on life settlement contracts previously held in non-consolidated trusts was $32&nbsp;million, and is included in net investment income in the consolidated statement of income. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Further information regarding life settlement contracts at December&nbsp;31, 2007 is as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="55%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD></TR> <TR> <TD noWrap align=left colSpan=2><I>(dollars in millions)</I></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR> <TD noWrap align=left colSpan=14>Remaining Life</TD></TR> <TR> <TD noWrap align=left colSpan=2>Expectancy of</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Number of</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Carrying</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Face Value</TD> <TD></TD></TR> <TR> <TD noWrap align=left colSpan=2>Insureds</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Contracts</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>(Death Benefits)</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">0&nbsp;&#150; 1&nbsp;year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>9</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">1&nbsp;&#150; 2&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2&nbsp;&#150; 3&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>79</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>98</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">3&nbsp;&#150; 4&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>151</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>111</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>210</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">4&nbsp;&#150; 5&nbsp;years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>176</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>130</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>277</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Thereafter</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,181</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,284</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,400</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,632</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,627</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,041</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, the anticipated life insurance premiums required to keep the life settlement contracts in force, payable in the ensuing twelve months ending December&nbsp;31, 2008 and the four succeeding years ending December&nbsp;31, 2012 are $132&nbsp;million, $141&nbsp;million, $149&nbsp;million, $146&nbsp;million, and $152&nbsp;million, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In June 2006, AIG restructured its ownership of life settlement contracts with no effect on the economic substance of these investments. At the same time, AIG paid $610&nbsp;million to its former co-investors to acquire all the remaining interests in life settlement contracts held in previously non-consolidated trusts. The life insurers for a small portion of AIG&#146;s consolidated life settlement contracts include AIG subsidiaries. As a result, amounts related to life insurance issued by AIG subsidiaries are eliminated in consolidation. </DIV></BODY></HTML> 3.&nbsp;Investments (a)&nbsp;Statutory Deposits: Cash and securities with carrying values of $13.6&nbsp;billion and $14.8&nbsp;billion were deposited by false false Describes statutory deposits, net investment income, net realized gains and losses, fair value of available for sale and held to maturity securities, non-income producing invested assets, gross unrealized losses on investments, other invested assets and investment in life settlement contracts. No authoritative reference available. false 6 1 us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock us-gaap true na duration string Includes disclosure of claims held for amounts due a company. Examples include trade accounts receivables, notes receivables,... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>4.&nbsp;Lending activities</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Mortgages and other loans receivable at December&nbsp;31, 2007 and 2006 are comprised of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="73%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=9><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgages&nbsp;&#150; commercial</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17,105</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15,219</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgages&nbsp;&#150; residential*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,153</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,903</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life insurance policy loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,099</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,501</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Collateral, guaranteed, and other commercial loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,447</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,859</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total mortgage and other loans receivable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>33,804</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,482</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Allowance for losses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(77</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(64</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage and other loans receivable, net</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>33,727</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>28,418</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD>*&nbsp;</TD> <TD align=left><I>Primarily consists of foreign mortgage loans.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Finance receivables, net of unearned finance charges, were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="73%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=9><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Real estate loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,023</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20,321</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Non-real estate loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5,447</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,506</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Retail sales finance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,659</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,092</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Credit card loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,566</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,413</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other loans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,417</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>978</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total finance receivables</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>32,112</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,310</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Allowance for losses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(878</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(737</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Finance receivables, net</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>31,234</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>29,573</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER></BODY></HTML> 4.&nbsp;Lending activities Mortgages and other loans receivable at December&nbsp;31, 2007 and 2006 are comprised of the following: &nbsp; false false Includes disclosure of claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 false 7 1 aig_ReinsuranceDisclosureTextBlock aig false na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>5.&nbsp;Reinsurance</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In the ordinary course of business, AIG&#146;s General Insurance and Life Insurance companies place reinsurance with other insurance companies in order to provide greater diversification of AIG&#146;s business and limit the potential for losses arising from large risks. In addition, AIG&#146;s General Insurance subsidiaries assume reinsurance from other insurance companies. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Supplemental information for gross loss and benefit reserves net of ceded reinsurance at December&nbsp;31, 2007 and 2006 follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="69%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>As</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net of</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reported</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Reinsurance</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for losses and loss expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>(85,500</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>(69,288</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Future policy benefits for life and accident and health insurance contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(136,068</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(134,461</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for unearned premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(28,022</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(24,029</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reinsurance assets*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>21,811</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for losses and loss expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(79,999</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(62,630</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Future policy benefits for life and accident and health insurance contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(121,004</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(119,430</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for unearned premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(26,271</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(22,759</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reinsurance assets*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,456</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIRCO acts primarily as an internal reinsurance company for AIG&#146;s insurance operations. This facilitates insurance risk management (retention, volatility, concentrations) and capital planning locally (branch and subsidiary). It also allows AIG to pool its insurance risks and purchase reinsurance more efficiently at a consolidated level, manage global counterparty risk and relationships and manage global life catastrophe risks. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>General Reinsurance</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>General reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts which protect AIG against losses over stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from general reinsurers are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of reinsurance assets. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts. For both ceded and assumed reinsurance, risk transfer requirements must be met in order for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>General Insurance premiums written and earned were comprised of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="58%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Premiums written:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Direct</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>52,055</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>49,609</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>46,689</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assumed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,743</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,671</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,036</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Ceded</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(11,731</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(11,414</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10,853</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>47,067</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>44,866</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>41,872</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Premiums earned:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Direct</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50,403</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>47,973</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,794</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assumed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>6,530</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,449</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,921</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Ceded</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(11,251</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10,971</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10,906</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>45,682</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>43,451</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>40,809</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For the years ended December&nbsp;31, 2007, 2006 and 2005, reinsurance recoveries, which reduced loss and loss expenses incurred, amounted to $9.0&nbsp;billion, $8.3&nbsp;billion and $20.7&nbsp;billion, respectively. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Life Reinsurance</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>Life reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection provided. Amounts recoverable from life reinsurers are estimated in a manner consistent with the assumptions used for the underlying policy benefits and are presented as a component of reinsurance assets. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Life Insurance&nbsp;&amp; Retirement Services premiums were comprised of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="63%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=13><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Gross premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>34,585</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,247</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>30,818</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Ceded premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1,778</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,481</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,317</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Premiums</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>32,807</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>30,766</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>29,501</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Life Insurance recoveries, which reduced death and other benefits, approximated $1.1 billion, $806&nbsp;million and $770&nbsp;million, respectively, for the years ended December&nbsp;31, 2007, 2006 and 2005. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Life Insurance in-force ceded to other insurance companies was as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="61%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=13><B>At December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life Insurance in force ceded</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>402,654</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>408,970</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>365,082</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Life Insurance assumed represented less than 0.1&nbsp;percent, 0.1&nbsp;percent and 0.8&nbsp;percent of gross Life Insurance in force at December&nbsp;31, 2007, 2006 and 2005, respectively, and Life Insurance&nbsp;&amp; Retirement Services premiums assumed represented 0.1&nbsp;percent, 0.1&nbsp;percent and 0.3&nbsp;percent of gross premiums and other considerations for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s Domestic Life Insurance&nbsp;&amp; Retirement Services operations utilize internal and third-party reinsurance relationships to manage insurance risks and to facilitate capital management strategies. Pools of highly-rated third-party reinsurers are utilized to manage net amounts at risk in excess of retention limits. AIG&#146;s Domestic Life Insurance companies also cede excess, non-economic reserves carried on a statutory-basis only on certain term and universal life insurance policies and certain fixed annuities to an offshore affiliate. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG generally obtains letters of credit in order to obtain statutory recognition of its intercompany reinsurance transactions. For this purpose, AIG has a $2.5&nbsp;billion syndicated letter of credit facility outstanding at December&nbsp;31, 2007, all of which relates to life intercompany reinsurance transactions. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG is also a party to a <FONT style="WHITE-SPACE: nowrap">364-day</FONT> bilateral revolving credit facility for an aggregate amount of $3.2&nbsp;billion. The facility can be drawn in the form of letters of credit with terms of up to eight years. At December&nbsp;31, 2007, approximately $3.0&nbsp;billion principal amount of letters of credit are outstanding under this facility, of which approximately $2.1&nbsp;billion relates to life intercompany reinsurance transactions. AIG has also obtained approximately $377&nbsp;million of letters of credit on a bilateral basis. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Reinsurance Security</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG&#146;s third-party reinsurance arrangements do not relieve AIG from its direct obligation to its insureds. Thus, a credit exposure exists with respect to both general and life reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. AIG holds substantial collateral as security under related reinsurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance. AIG has been largely successful in prior recovery efforts. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG evaluates the financial condition of its reinsurers and establishes limits per reinsurer through AIG&#146;s Credit Risk Committee. AIG believes that no exposure to a single reinsurer represents an inappropriate concentration of risk to AIG, nor is AIG&#146;s business substantially dependent upon any single reinsurer. </DIV></BODY></HTML> 5.&nbsp;Reinsurance In the ordinary course of business, AIG&#146;s General Insurance and Life Insurance companies place reinsurance with other insurance false false No definition available. No authoritative reference available. false 8 1 aig_DeferredPolicyAcquisitionCostsDisclosureTextBlock aig false na duration string Describes the nature and amount of capitalized costs incurred to write or acquire insurance contracts, the basis for and... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>6.&nbsp;Deferred Policy Acquisition Costs</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following reflects the policy acquisition costs deferred for amortization against future income and the related amortization charged to income for General Insurance and Life Insurance&nbsp;&amp; Retirement Services operations:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="60%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">General Insurance operations:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,355</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,048</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,998</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Acquisition costs deferred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,661</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,115</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,480</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amortization expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(8,235</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(7,866</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(7,365</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increase (decrease) due to foreign exchange and other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(138</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>58</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(65</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,643</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,355</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,048</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life Insurance&nbsp;&amp; Retirement Services operations:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>32,810</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>28,106</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,080</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Acquisition costs deferred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>7,276</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,823</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,513</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amortization expense<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3,367</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(3,712</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(3,328</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Change in net unrealized gains (losses) on securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>745</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>646</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>977</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increase (decrease) due to foreign exchange</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>916</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>947</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,136</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>65</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Subtotal</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>38,445</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,810</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>28,106</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Consolidation and eliminations</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>62</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>70</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at end of year<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>38,507</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,880</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>28,106</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total deferred policy acquisition costs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>43,150</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>37,235</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,154</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>In 2007, amortization expense was reduced by $733&nbsp;million related to changes in actuarial estimates, which was mostly offset in incurred policy losses and benefits.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I>&nbsp;</TD> <TD align=left><I>In 2007, includes the cumulative effect of the adoption of SOP&nbsp;<FONT style="WHITE-SPACE: nowrap">05-1</FONT> of $(118)&nbsp;million and a balance sheet reclassification of $189&nbsp;million.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I>&nbsp;</TD> <TD align=left><I>Includes $5&nbsp;million and $(720)&nbsp;million at December&nbsp;31, 2007 and 2006, respectively, related to the effect of net unrealized gains and losses on available for sale securities.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Included in the above table is the VOBA, an intangible asset recorded during purchase accounting, which is amortized in a manner similar to DAC. Amortization of VOBA was $213&nbsp;million, $239&nbsp;million and $291&nbsp;million in 2007, 2006 and 2005, respectively, while the unamortized balance was $1.86&nbsp;billion, $1.98&nbsp;billion and $2.14&nbsp;billion at December&nbsp;31, 2007, 2006 and 2005, respectively. The percentage of the unamortized balance of VOBA at 2007 expected to be amortized in 2008 through 2012 by year is: 11.7&nbsp;percent, 10.2&nbsp;percent, 8.4&nbsp;percent, 6.6&nbsp;percent and 5.9&nbsp;percent, respectively, with 57.2&nbsp;percent being amortized after five years. These projections are based on current estimates for investment, persistency, mortality and morbidity assumptions. The DAC amortization charged to income includes the increase or decrease of amortization for FAS&nbsp;<FONT style="WHITE-SPACE: nowrap">97-related</FONT> realized capital gains (losses), primarily in the Domestic Retirement Services business. In 2007, 2006 and 2005, the rate of amortization expense decreased by $291&nbsp;million, $90&nbsp;million and $46&nbsp;million, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; There were no impairments of DAC or VOBA for the years ended December&nbsp;31, 2007, 2006 and 2005. </DIV></BODY></HTML> 6.&nbsp;Deferred Policy Acquisition Costs The following reflects the policy acquisition costs deferred for amortization against future income and the false false Describes the nature and amount of capitalized costs incurred to write or acquire insurance contracts, the basis for and methodology for capitalizing such costs, the accounting for such deferred acquisition costs (DAC) when modifications or internal replacements of related insurance contracts occur and the effect on results of operations, and the methodology and amount of amortization. No authoritative reference available. false 9 1 us-gaap_ScheduleOfVariableInterestEntitiesTextBlock us-gaap true na duration string Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>7.&nbsp;Variable Interest Entities</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>FIN&nbsp;46R, &#147;Consolidation of Variable Interest Entities&#148; clarifies the consolidation accounting for certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity that is at risk which would allow the entity to finance its activities without additional subordinated financial support. FIN&nbsp;46R recognizes that consolidation based on majority voting interest should not apply to certain types of entities that are defined as VIEs. A VIE is consolidated by its primary beneficiary, which is the party that absorbs a majority of the expected losses or a majority of the expected residual returns of the VIE, or both. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG, in the normal course of business, is involved with various VIEs. In some cases, AIG has participated to varying degrees in the design of the entity. AIG&#146;s involvement in VIEs varies from being a passive investor to managing and structuring the activities of the VIE. AIG engages in transactions with VIEs to manage its investment needs, obtain funding as well as facilitate client needs through a global network of operating subsidiaries comprising AIG Global Asset Management Holdings Corp. and its subsidiaries and affiliated companies (collectively, AIG Investments) and AIGFP. AIG purchases debt securities (rated and unrated) and equity interests issued by VIEs, makes loans and provides other credit support to VIEs, enters into insurance and reinsurance transactions with VIEs, enters into leasing arrangements with VIEs, enters into derivative transactions with VIEs through AIGFP and acts as the collateral manager of VIEs through AIG Investments and AIGFP. Obligations to outside interest holders in VIEs consolidated by AIG are reported as liabilities in the consolidated financial statements. These interest holders generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to AIG, except when AIG has provided a guarantee to the VIE&#146;s interest holders. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG determines whether an entity is a VIE, who the variable interest holders are, and which party is the primary beneficiary of the VIE by performing an analysis of the design of the VIE that includes a review of, among other factors, its capital structure, contractual relationships and terms, nature of the entity&#146;s operations and purpose, nature of the entity&#146;s interests issued, AIG&#146;s interests in the entity which either create or absorb variability and related party relationships. AIG consolidates a VIE when all of AIG&#146;s interests in the VIE, when combined, absorb a majority of the expected losses or a majority of the expected residual returns of the VIE, or both. Assets held by VIEs which are currently consolidated because AIG is primary beneficiary (except for those VIEs where AIG also owns a majority voting interest), approximated $27.0 billion and $9.1 billion at December 31, 2007 and 2006, respectively. These consolidated assets are reflected in AIG&#146;s consolidated balance sheet as Investments and financial services assets. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to the VIEs that are consolidated in accordance with FIN&nbsp;46R, the Company has significant variable interests in certain other VIEs that are not consolidated because the Company is not the primary beneficiary. AIG applies quantitative and qualitative measures in identifying whether it is a primary beneficiary of a VIE and whether it holds a significant variable interest in a VIE. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For all VIEs in which it has a significant variable interest, including those in which it is the primary beneficiary, AIG reconsiders if it is the current primary beneficiary whenever a VIE&#146;s governing documents or contractual arrangements are changed in a manner that reallocates between the primary beneficiary and other unrelated parties, the obligation to absorb expected losses or right to receive expected residual returns. It also reconsiders its role as primary beneficiary when it sells or otherwise disposes of all or part of its variable interests in a VIE or when it acquires additional variable interests in a VIE. AIG does not reconsider whether it is a primary beneficiary solely as the result of operating losses incurred by an entity. Assets of VIEs where AIG has a significant variable interest and does not consolidate the VIE because AIG is not the primary beneficiary, approximated $275.1&nbsp;billion at December&nbsp;31, 2007. AIG&#146;s maximum exposure to loss from its involvement with these consolidated VIEs approximated $44.6&nbsp;billion at December 31, 2007. For this purpose, maximum loss is considered to be the notional amount of credit lines, guarantees and other credit support, and liquidity facilities, the notional amounts of credit default swaps and certain total return swaps, and the amount invested in the debt or equity issued by the VIEs. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Entities for which AIG is the primary beneficiary and consolidates or in which AIG has a significant variable interest are described below. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Asset Management </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In certain instances, AIG Investments acts as the collateral manager or general partner of an investment fund, collateralized debt obligation (CDO), collateralized loan obligation (CLO), private equity fund or hedge fund. Such entities are typically registered investment companies or qualify for the specialized investment company accounting in accordance with the AICPA Audit and Accounting Guide&nbsp;- Investment Companies. In CDO and CLO transactions, AIG establishes a trust or other special purpose entity that purchases a portfolio of assets such as bank loans, corporate debt, or non-performing credits and issues trust certificates or debt securities that represent interests in the portfolio of assets. These transactions can be cash-based or synthetic and are actively or passively managed. For investment partnerships, hedge funds and private equity funds, AIG acts as the general partner or manager of the fund and is responsible for carrying out the investment mandate of the VIE. Often, AIG&#146;s insurance operations participate in these AIG managed structures as a passive investor in the debt or equity issued by the VIE. Typically, AIG does not provide any guarantees to the investors in the VIE. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG Investments is an investor in various real estate investments. These investments are typically with unaffiliated third-party developers via a partnership or limited liability company structure. Some of these entities are VIEs. The activities of these VIEs principally consist of the development or redevelopment of all major types of commercial (retail, office, industrial, logistics parks, mixed use, etc.) and residential real estate. AIG&#146;s involvement varies from being a passive equity investor to actively managing the activities of the VIE. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to changes in a VIE&#146;s governing documentation or capitalization structure, AIG reconsiders its decision with respect to whether it is the primary beneficiary for these VIEs, when AIG purchases, or when a VIE sells or otherwise disposes of, variable interests in the CDO, CLO, investment, partnership, hedge fund or private equity fund to other unrelated parties. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>SunAmerica Affordable Housing Partnerships </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>SunAmerica Affordable Housing Partners, Inc. (SAAHP)&nbsp;organizes limited partnerships (investment partnerships) that are considered to be VIEs, and that are consolidated by AIG when AIG has determined that it is the primary beneficiary. The investment partnerships invest as limited partners in operating partnerships that develop and operate affordable housing qualifying for federal tax credits and a few market rate properties across the United States. The general partners in the operating partnerships are almost exclusively unaffiliated third-party developers. AIG does not normally consolidate an operating partnership if the general partner is an unaffiliated person. Through approximately 1,200&nbsp;partnerships, SAAHP has invested in developments with approximately 157,000&nbsp;apartment units nationwide, and has syndicated over $7&nbsp;billion in partnership equity since 1991 to other investors who will receive, among other benefits, tax credits under certain sections of the Internal Revenue Code. AIG Retirement Services, Inc. functions as the general partner in certain investment partnerships and acts both as a credit enhancer in certain transactions, through differing structures with respect to funding development costs for the operating partnerships, and as guarantor that investors will receive the tax benefits projected at the time of syndication. AIG Retirement Services, Inc. consolidates these investment partnerships as a result of the guarantee provided to the investors. As part of their incentive compensation, certain key SAAHP employees have been awarded residual cash flow interests in the partnerships, subject to certain vesting requirements. The operating income of SAAHP is reported, along with other SunAmerica partnership income, as a component of AIG&#146;s Asset Management segment. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Insurance Investments </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>As part of its investment activities, AIG&#146;s insurance operations invest in obligations which include debt and equity securities and interests issued by VIEs. These investments include investments in AIG sponsored and non-sponsored investment funds, hedge funds, private equity funds, and structured financing arrangements. The investments in these VIEs allow AIG&#146;s insurance entities to purchase assets permitted by insurance regulations while maximizing their return on these assets. AIG&#146;s insurance operations typically are not involved in the design or establishment of the VIE, nor do they actively participate in the management of the VIE. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In addition to changes in a VIE&#146;s governing documentation or capitalization structure, AIG reconsiders its position as to whether it is the primary beneficiary as the result of investments in these VIEs when AIG purchases or sells VIE issued debt and equity interests to other unrelated parties. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>AIGFP </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The variable interests that AIGFP may hold in VIEs include debt securities, equity interests, loans, derivative instruments and other credit support arrangements. Transactions associated with VIEs include an asset-backed commercial paper conduit, asset securitizations, collateralized debt obligations, investment vehicles and other structured financial transactions. AIGFP engages in these transactions to facilitate client needs for investment purposes and to obtain funding. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP invests in preferred securities issued by VIEs. Additionally, AIGFP establishes VIEs that issue preferred interests to third parties and uses the proceeds to provide financing to AIGFP subsidiaries. In certain instances, AIGFP consolidates these VIEs. Consistent with FIN&nbsp;46R requirements, AIGFP reviews any changes in its holdings of a VIEs preferred stock investment as part of its reconsideration review to determine a VIE&#146;s primary beneficiary. In addition, AIG reviews all changes in such VIEs&#146; governing documentation or capitalization structures as part of the determination of whether there is a change in the VIEs&#146; primary beneficiaries. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP is the primary beneficiary of an asset-backed commercial paper conduit with which it entered into several total return swaps covering all the conduit&#146;s assets that absorb the majority of the expected losses of the entity. The assets of the conduit serve as collateral for the conduit&#146;s obligations. AIGFP is also the primary beneficiary of several structured financing transactions in which AIGFP holds the first loss position either by investing in the equity of the VIE or implicitly through a lending or derivative arrangement. These VIEs are subject to the reconsideration event reviews noted above. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In certain instances, AIGFP enters into liquidity facilities with various SPEs when AIGFP provides liquidity to the SPE in the form of a guarantee, derivative, or a letter of credit and does not consolidate the VIE. AIGFP also executes various swap and option transactions with VIEs. Such contractual arrangements are done in the ordinary course of business. Typically, interest rate derivatives such as interest rate swaps and options executed with VIEs are not deemed to be variable interests or significant variable interests because the underlying is an observable market interest rate and AIGFP as the derivative counterparty to the VIE is senior to the debt and equity holders. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2007, AIGFP sponsored its only structured investment vehicle (SIV)&nbsp;which invests in variable rate, investment-grade debt securities. The SIV is a VIE because is does not have sufficient equity to operate without subordinated capital notes which serve as equity though they are legally debt instruments. The capital notes absorb losses prior to the senior debt. Based on the sale of more than 88&nbsp;percent of its capital notes to unrelated third-party investors and the continued holding by those investors of their capital notes, AIGFP is not the primary beneficiary of the SIV. AIGFP reviews its primary beneficiary position when the governing document or capital structure changes or the amount of senior or capital note holdings change. Based on a change in the governing documents under which AIGFP committed to provide short-term funding to the SIV, as necessary, a quantitative analysis performed under FIN&nbsp;46R as of December&nbsp;31, 2007 showed that AIGFP is not the primary beneficiary. This outcome is a result of the high credit quality of the assets and the fact that 85&nbsp;percent of credit losses, if any, would be shared by other capital note holders. At December&nbsp;31, 2007 assets of this unconsolidated SIV totaled $2.4&nbsp;billion. AIGFP&#146;s invested assets at December&nbsp;31, 2007 included $1.7&nbsp;billion of securities purchased under agreements to resell and commercial paper and medium-term and capital notes issued by this entity. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP has entered into transactions with VIEs that are used, in part, to provide tax planning strategies to investors and/or AIGFP through an enhanced yield investment security. These structures typically provide financing to AIGFP and/or the investor at enhanced rates. AIGFP may be either the primary beneficiary of and consolidate the VIE, or may be a significant variable interest holder in the VIE. </DIV></BODY></HTML> 7.&nbsp;Variable Interest Entities FIN&nbsp;46R, &#147;Consolidation of Variable Interest Entities&#148; clarifies the consolidation accounting for certain false false Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 2, 14, 15, 16, 23, 24, 25, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 4 -Subparagraph g Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 35 false 10 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration string Description of risk management strategies, derivatives in hedging activities and nonhedging derivative instruments, the... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>8.&nbsp;Derivatives and Hedge Accounting</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG uses derivatives and other financial instruments as part of its financial risk management programs and as part of its investment operations. AIGFP also transacts in derivatives as a dealer. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Derivatives, as defined in FAS 133, are financial arrangements among two or more parties with returns linked to or &#147;derived&#148; from some underlying equity, debt, commodity or other asset, liability, or foreign exchange rate or other index or the occurrence of a specified payment event. Derivative payments may be based on interest rates, exchange rates, prices of certain securities, commodities, or financial or commodity indices or other variables. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Unless subject to a scope exclusion, AIG carries all derivatives on the consolidated balance sheet at fair value. The changes in fair value of the derivative transactions of AIGFP are presented as a component of AIG&#146;s operating income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>AIGFP</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIGFP, in the ordinary course of operations and as principal, structures and enters into derivative transactions to meet the needs of counterparties who may be seeking to hedge certain aspects of such counterparties&#146; operations or obtain a desired financial exposure. In most cases AIGFP does not hedge its exposures related to the credit default swaps it has written. AIGFP also enters into derivative transactions to mitigate risk in its exposures (interest rates, currencies, commodities, credit and equities) arising from such transactions. Such instruments are carried at market or fair value, whichever is appropriate, and are reflected on the balance sheet in &#147;Unrealized gain on swaps, options and forward transactions&#148; and &#147;Unrealized loss on swaps, options and forward contracts.&#148; </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Beginning in 2007, AIGFP designated certain interest rate swaps as fair value hedges of the benchmark interest rate risk on certain of its interest bearing financial assets and liabilities. In these hedging relationships, AIG is hedging its fixed rate available for sale securities and fixed rate borrowings. AIGFP also designated foreign currency forward contracts as fair value hedges for changes in spot foreign exchange rates of the non-U.S. dollar denominated available for sale debt securities. Under these strategies, all or portions of individual or multiple derivatives may be designated against a single hedged item. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At inception of each hedging relationship, AIGFP performs and documents its prospective assessments of hedge effectiveness to demonstrate that the hedge is expected to be highly effective. For hedges of interest rate risk, AIGFP uses regression to demonstrate the hedge is highly effective, while it uses the periodic dollar offset method for its foreign currency hedges. AIGFP uses the periodic dollar offset method to assess whether its hedging relationships were highly effective on a retrospective basis. The prospective and retrospective assessments are updated on a daily basis. The passage of time component of the hedging instruments and the forward points on foreign currency hedges are excluded from the assessment of hedge effectiveness and measurement of hedge ineffectiveness. AIGFP does not utilize the shortcut, matched terms or equivalent methods to assess hedge effectiveness. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The change in fair value of the derivative that qualifies under the requirements of FAS 133 as a fair value hedge is recorded in current period earnings along with the gain or loss on the hedged item for the hedged risk. For interest rate hedges, the adjustments to the carrying value of the hedged items are amortized into income using the effective yield method over the remaining life of the hedged item. Amounts excluded from the assessment of hedge effectiveness are recognized in current period earnings. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For the year ended December&nbsp;31, 2007, AIGFP recognized net losses of $0.7&nbsp;million in earnings, representing hedge ineffectiveness, and also recognized net losses of $456&nbsp;million related to the portion of the hedging instruments excluded from the assessment of hedge effectiveness. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP&#146;s derivative transactions involving interest rate swap transactions generally involve the exchange of fixed and floating rate interest payment obligations without the exchange of the underlying notional amounts. AIGFP typically becomes a principal in the exchange of interest payments between the parties and, therefore, is exposed to counterparty credit risk and may be exposed to loss, if counterparties default. Currency, commodity, and equity swaps are similar to interest rate swaps, but involve the exchange of specific currencies or cashflows based on the underlying commodity, equity securities or indices. Also, they may involve the exchange of notional amounts at the beginning and end of the transaction. Swaptions are options where the holder has the right but not the obligation to enter into a swap transaction or cancel an existing swap transaction. At December&nbsp;31, 2007, the aggregate notional amount of AIGFP&#146;s outstanding swap transactions approximated $2,133&nbsp;billion, primarily related to interest rate swaps of approximately $1,167&nbsp;billion. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP follows a policy of minimizing interest rate, currency, commodity, and equity risks associated with securities available for sale by entering into internal offsetting positions, on a security by security basis within its derivatives portfolio, thereby offsetting a significant portion of the unrealized appreciation and depreciation. In addition, to reduce its credit risk, AIGFP has entered into credit derivative transactions with respect to $82&nbsp;million of securities available for sale to economically hedge its credit risk. As previously discussed, these economic offsets did not meet the hedge accounting requirements of FAS&nbsp;133 and, therefore, are recorded in Other income in the Consolidated Statement of Income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Notional amount represents a standard of measurement of the volume of swaps business of Capital Markets operations. Notional amount is not a quantification of market risk or credit risk and is not recorded on the consolidated balance sheet. Notional amounts generally represent those amounts used to calculate contractual cash flows to be exchanged and are not paid or received, except for certain contracts such as currency swaps. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The timing and the amount of cash flows relating to Capital Markets foreign exchange forwards and exchange traded futures and options contracts are determined by each of the respective contractual agreements. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents the notional amounts by remaining maturity of Capital Markets&#146; interest rate, credit default and currency swaps and swaptions derivatives portfolio at December&nbsp;31, 2007 and 2006:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 4pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="24%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>Remaining Life of Notional Amount*</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=14>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>One</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Two Through</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Six Through</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>After Ten</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>Total</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Year</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Five Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Ten Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B>2007</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest rate swaps</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>441,801</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>554,917</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>156,634</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,112</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,167,464</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,058,279</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Credit default swaps</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>184,924</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>286,069</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>85,792</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,028</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>561,813</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>483,648</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Currency swaps</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38,384</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>135,187</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>41,675</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,029</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>224,275</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>218,091</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Swaptions, equity and commodity swaps</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>57,709</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>62,849</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35,270</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23,139</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>178,967</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>180,040</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>722,818</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,039,022</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>319,371</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>51,308</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>2,132,519</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,940,058</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Notional amount is not representative of either market risk or credit risk and is not recorded in the consolidated balance sheet.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Futures and forward contracts are contracts that obligate the holder to sell or purchase foreign currencies, commodities or financial indices in which the seller/purchaser agrees to make/take delivery at a specified future date of a specified instrument, at a specified price or yield. Options are contracts that allow the holder of the option to purchase or sell the underlying commodity, currency or index at a specified price and within, or at, a specified period of time. As a writer of options, AIGFP generally receives an option premium and then manages the risk of any unfavorable change in the value of the underlying commodity, currency or index by entering into offsetting transactions with third-party market participants. Risks arise as a result of movements in current market prices from contracted prices, and the potential inability of the counterparties to meet their obligations under the contracts. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents Capital Markets futures, forward and option contracts portfolio by maturity and type of derivative at December&nbsp;31, 2007 and 2006:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="31%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=24>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=15>Remaining Life</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=15>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>One</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Two Through</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Six Through</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>After Ten</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>Total</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Year</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Five Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Ten Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Years</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2007</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=24>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Exchange traded futures and options contracts contractual amount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>27,588</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,359</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28,947</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>27,271</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Over the counter forward contracts contractual amount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>485,332</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,864</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,850</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>493,046</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>492,913</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>512,920</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,223</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,850</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>521,993</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>520,184</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=25>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>AIGFP Credit Default Swaps</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIGFP enters into credit derivative transactions in the ordinary course of its business. The majority of AIGFP&#146;s credit derivatives require AIGFP to provide credit protection on a designated portfolio of loans or debt securities. AIGFP provides such credit protection on a &#147;second loss&#148; basis, under which AIGFP&#146;s payment obligations arise only after credit losses in the designated portfolio exceed a specified threshold amount or level of &#147;first losses.&#148; The threshold amount of credit losses that must be realized before AIGFP has any payment obligation is negotiated by AIGFP for each transaction to provide that the likelihood of any payment obligation by AIGFP under each transaction is remote. The underwriting process for these derivatives included assumptions of severely stressed recessionary market scenarios to minimize the likelihood of realized losses under these obligations. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In certain cases, the credit risk associated with a designated portfolio is tranched into different layers of risk, which are then analyzed and rated by the credit rating agencies. Typically, there will be an equity layer covering the first credit losses in respect of the portfolio up to a specified percentage of the total portfolio, and then successive layers ranging from generally a BBB-rated layer to one or more AAA-rated layers. In transactions that are rated with respect to the risk layer or tranche that is immediately junior to the threshold level above which AIGFP&#146;s payment obligation would generally arise, a significant majority are rated AAA by the rating agencies. In transactions that are not rated, AIGFP applies the same risk criteria for setting the threshold level for its payment obligations. Therefore, the risk layer assumed by AIGFP with respect to the designated portfolio in these transactions is often called the &#147;super senior&#148; risk layer, defined as the layer of credit risk senior to a risk layer that has been rated AAA by the credit rating agencies, or if the transaction is not rated, equivalent thereto. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <B><FONT color=#002868>At December&nbsp;31, 2007 and 2006, the notional amounts and unrealized market valuation loss of the super senior credit default swap portfolio by asset classes were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="62%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="11%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="17%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B>Notional</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>Unrealized Market</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>Amount</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>Valuation Loss</B></TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>(in billions)</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>(in millions)</B></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Corporate loans<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>230</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prime residential mortgages<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>149</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Corporate Debt/CLOs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>70</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>226</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Multi-sector CDO<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>78</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,246</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>527</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>11,472</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Predominantly represent transactions written to facilitate regulatory capital relief.</I></TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Approximately $61.4&nbsp;billion, in notional amount, of the multi-sector CDO pools includes some exposure to U.S.&nbsp;subprime mortgages.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Approximately $379&nbsp;billion of the $527&nbsp;billion in notional exposure of AIGFP&#146;s super senior credit default swap portfolio as of December&nbsp;31, 2007 represents derivatives written for financial institutions, principally in Europe, for the purpose of providing them with regulatory capital relief rather than risk mitigation. In exchange for a minimum guaranteed fee, the counterparties receive credit protection in respect of portfolios of various debt securities or loans they own, thus improving their regulatory capital position. These derivatives are generally expected to terminate at no additional cost to the counterparty upon the counterparty&#146;s adoption of models compliant with the Basel&nbsp;II Accord. AIG expects that the majority of these transactions will terminate within the next 12 to 18&nbsp;months. As of February&nbsp;26, 2008, approximately $54&nbsp;billion in notional exposures have either been terminated or are in the process of being terminated. AIGFP was not required to make any payments as part of these terminations and in certain cases was paid a fee upon termination. In light of this experience to date and after other comprehensive analyses, AIG did not recognize an unrealized market valuation adjustment for this regulatory capital relief portfolio for the year ended December&nbsp;31, 2007. AIG will continue to assess the valuation of this portfolio and monitor developments in the marketplace. There can be no assurance that AIG will not recognize unrealized market valuation losses from this portfolio in future periods. In addition to writing credit protection on the super senior risk layer on designated portfolios of loans or debt securities, AIGFP also wrote protection on tranches below the super senior risk layer. At December&nbsp;31, 2007 the notional amount of the credit default swaps in the regulatory capital relief portfolio written on tranches below the super senior risk layer was $5.8&nbsp;billion, with an estimated fair value of $(25)&nbsp;million. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP has also written credit protection on the super senior risk layer of diversified portfolios of investment grade corporate debt, collateralized loan obligations (CLOs) and multi-sector CDOs. AIGFP is at risk only on the super senior portion related to a diversified portfolio of credits referenced to loans or debt securities. The super senior risk portion is the last tranche to suffer losses after significant subordination. Credit losses would have to erode all tranches junior to the super senior tranche before AIGFP would suffer any realized losses. The subordination level required for each transaction is determined based on internal modeling and analysis of the pool of underlying assets and is not dependent on ratings determined by the rating agencies. While the credit default swaps written on corporate debt obligations are cash settled, the majority of the credit default swaps written on CDOs and CLOs require physical settlement. Under a physical settlement arrangement, AIGFP would be required to purchase the referenced super senior note obligation at par in the event of a non-payment on that security. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain of these credit derivatives are subject to collateral posting provisions. These provisions differ among counterparties and asset classes. In the case of most of the multi-sector CDO transactions, the amount of collateral required is determined based on the change in value of the underlying cash security that represents the super senior risk layer subject to credit protection, and not the change in value of the super senior credit derivative. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP is indirectly exposed to U.S. residential mortgage subprime collateral in the CDO portfolios, the majority of which is from 2004 and 2005 vintages. However, certain of the CDOs on which AIGFP provided credit protection permit the collateral manager to substitute collateral during the reinvestment period, subject to certain restrictions. As a result, in certain transactions, U.S. residential mortgage subprime collateral of 2006 and 2007 vintages has been added to the collateral pools. At December&nbsp;31, 2007, U.S. residential mortgage subprime collateral of 2006 and 2007 vintages comprised approximately 4.9 percent of the total collateral pools underlying the entire portfolio of CDOs with credit protection. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP has written maturity-shortening puts that allow the holders of the securities issued by certain multi-sector CDOs to treat the securities as eligible short-term 2a-7 investments under the Investment Company Act of 1940 (2a-7 Puts). Holders of securities are permitted, in certain circumstances, to tender their securities to the issuers at par. If an issuer&#146;s remarketing agent is unable to resell the securities so tendered, AIGFP must purchase the securities at par as long as the securities have not experienced a default. During 2007, AIGFP repurchased securities with a principal amount of approximately $754&nbsp;million pursuant to these obligations. In certain transactions, AIGFP has contracted with third parties to provide liquidity for the notes if they are put to AIGFP for up to a three-year period. Such liquidity facilities totaled approximately $3&nbsp;billion at December&nbsp;31, 2007. As of February&nbsp;26, 2008, AIGFP has not utilized these liquidity facilities. At December&nbsp;31, 2007, AIGFP had approximately $6.5&nbsp;billion of notional exposure on 2a-7 Puts, included as part of the multi-sector CDO portfolio discussed herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>As of January&nbsp;31, 2008, a significant majority of AIGFP&#146;s super senior exposures continued to have tranches below AIGFP&#146;s attachment point that have been explicitly rated AAA or, in AIGFP&#146;s judgment, would have been rated AAA had they been rated. AIGFP&#146;s portfolio of credit default swaps undergoes regular monitoring, modeling and analysis and contains protection through collateral subordination. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP accounts for its credit default swaps in accordance with FAS&nbsp;133 &#147;Accounting For Derivative Instruments and Hedging Activities&#148; and Emerging Issues Task Force 02-3, &#147;Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities&#148; (EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3).</FONT> In accordance with EITF&nbsp;<FONT style="WHITE-SPACE: nowrap">02-3,</FONT> AIGFP does not recognize income in earnings at the inception of each transaction because the inputs to value these instruments are not derivable from observable market data. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The valuation of the super senior credit derivatives has become increasingly challenging given the limitation on the availability of market observable information due to the lack of trading and price transparency in the structured finance market, particularly in the fourth quarter of 2007. These market conditions have increased the reliance on management estimates and judgments in arriving at an estimate of fair value for financial reporting purposes. Further, disparities in the valuation methodologies employed by market participants and the varying judgments reached by such participants when assessing volatile markets has increased the likelihood that the various parties to these instruments may arrive at significantly different estimates as to their fair values. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP&#146;s valuation methodologies for the super senior credit default swap portfolio have evolved in response to the deteriorating market conditions and the lack of sufficient market observable information. AIG has sought to calibrate the model to market information and to review the assumptions of the model on a regular basis. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP employs a modified version of the BET model to value its super senior credit default swap portfolio, including the 2a-7 Puts. The BET model utilizes default probabilities derived from credit spreads implied from market prices for the individual securities included in the underlying collateral pools securing the CDOs. AIGFP obtained prices on these securities from the CDO collateral managers. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The BET model also utilizes diversity scores, weighted average lives, recovery rates and discount rates. The determination of some of these inputs require the use of judgment and estimates, particularly in the absence of market observable data. AIGFP also employed a Monte Carlo simulation to assist in quantifying the effect on valuation of the CDO of the unique features of the CDO&#146;s structure such as triggers that divert cash flows to the most senior level of the capital structure. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The credit default swaps written by AIGFP cover only the failure of payment on the super senior CDO security. AIGFP does not own the securities in the CDO collateral pool. The credit spreads implied from the market prices of the securities in the CDO collateral pool incorporate the risk of default (credit risk), the market&#146;s price for liquidity risk and in distressed markets, the risk aversion costs. Spreads on credit derivatives tend to be narrower because, unlike in the case of investing in a bond, there is no need to fund the position (except when an actual credit event occurs). In times of illiquidity, the difference between spreads on cash securities and derivative instruments (the &#147;negative basis&#148;) may be even wider for high quality assets. AIGFP was unable to reliably verify this negative basis due to the accelerating severe dislocation, illiquidity and lack of trading in the asset backed securities market during the fourth quarter of 2007 and early 2008. The valuations produced by the BET model therefore represent the valuations of the underlying super senior CDO cash securities with no recognition of the effect of the basis differential on that valuation. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP also considered the valuation of the super senior CDO securities provided by third parties, including counterparties to these transactions, and made adjustments as necessary. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As described above, AIGFP uses numerous assumptions in determining its best estimate of the fair value of the super senior credit default swap portfolio. The most significant assumption utilized in developing the estimate is the pricing of the securities within the CDO collateral pools. If the actual pricing of the securities within the collateral pools differs from the pricing used in estimating the fair value of the super senior credit default swap portfolio, there is potential for significant variation in the fair value estimate. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In the case of credit default swaps written on investment grade corporate debt and CLOs, AIGFP estimated the value of its obligations by reference to the relevant market indices or third party quotes on the underlying super senior tranches where available. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP monitors the underlying portfolios to determine whether the credit loss experience for any particular portfolio has caused the likelihood of AIGFP having a payment obligation under the transaction to be greater than super senior risk. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Other Derivative Users</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and its subsidiaries (other than AIGFP) also use derivatives and other instruments as part of their financial risk management programs. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with investments in fixed income securities, commercial paper issuances, medium- and long-term note offerings, and other interest rate sensitive assets and liabilities. In addition, foreign exchange derivatives (principally cross currency swaps, forwards and options) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures and foreign exchange transactions. The derivatives are effective economic hedges of the exposures they are meant to offset. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2007, AIG and its subsidiaries other than AIGFP designated certain derivatives as either fair value or cash flow hedges of their debt. The fair value hedges included (i)&nbsp;interest rate swaps that were designated as hedges of the change in the fair value of fixed rate debt attributable to changes in the benchmark interest rate and (ii)&nbsp;foreign currency swaps designated as hedges of the change in fair value of foreign currency denominated debt attributable to changes in foreign exchange rates and/or the benchmark interest rate. With respect to the cash flow hedges, (i)&nbsp;interest rate swaps were designated as hedges of the changes in cash flows on floating rate debt attributable to changes in the benchmark interest rate, and (ii)&nbsp;foreign currency swaps were designated as hedges of changes in cash flows on foreign currency denominated debt attributable to changes in the benchmark interest rate and foreign exchange rates. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG assesses, both at the hedge&#146;s inception and on an ongoing basis, whether the derivatives used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items. Regression analysis is employed to assess the effectiveness of these hedges both on a prospective and retrospective basis. AIG does not utilize the shortcut, matched terms or equivalent methods to assess hedge effectiveness. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The change in fair value of derivatives designated and effective as fair value hedges along with the gain or loss on the hedged item are recorded in current period earnings. Upon discontinuation of hedge accounting, the cumulative adjustment to the carrying value of the hedged item resulting from changes in the benchmark interest rate or exchange rate is amortized into income using the effective yield method over the remaining life of the hedged item. Amounts excluded from the assessment of hedge effectiveness are recognized in current period earnings. During the year ended December&nbsp;31, 2007, AIG recognized a loss of $1&nbsp;million in earnings related to the ineffective portion of the hedging instruments. During the year ended December&nbsp;31, 2007, AIG also recognized gains of $3&nbsp;million related to the change in the hedging instruments forward points excluded from the assessment of hedge effectiveness. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The effective portion of the change in fair value of a derivative qualifying as a cash flow hedge is recorded in Accumulated other comprehensive income (loss), until earnings are affected by the variability of cash flows in the hedged item. The ineffective portion of these hedges is recorded in net realized capital gains (losses). During the year ended December&nbsp;31, 2007, AIG recognized gains of $1&nbsp;million in earnings representing hedge ineffectiveness. At December&nbsp;31, 2007, $36&nbsp;million of the deferred net loss in Accumulated other comprehensive income is expected to be recognized in earnings during the next 12&nbsp;months. All components of the derivatives&#146; gains and losses were included in the assessment of hedge effectiveness. There were no instances of the discontinuation of hedge accounting in 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to hedging activities, AIG also uses derivative instruments with respect to investment operations, which include, among other things, credit default swaps, and purchasing investments with embedded derivatives, such as equity linked notes and convertible bonds. All changes in the fair value of these derivatives are recorded in earnings. AIG bifurcates an embedded derivative where: <I>(i)&nbsp;</I>the economic characteristics of the embedded instruments are not clearly and closely related to those of the remaining components of the financial instrument; <I>(ii)&nbsp;</I>the contract that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value; and <I>(iii)&nbsp;</I>a separate instrument with the same terms as the embedded instrument meets the definition of a derivative under FAS&nbsp;133. </DIV></BODY></HTML> 8.&nbsp;Derivatives and Hedge Accounting AIG uses derivatives and other financial instruments as part of its financial risk management programs and as part false false Description of risk management strategies, derivatives in hedging activities and nonhedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44, 45, 46, 47 false 11 1 aig_ReserveForLossExpensesAndFutureLifePolicyBenefitsAndPolicyholdersContractDepositsTextBlock aig false na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>9.&nbsp;Reserve for Losses and Loss Expenses and Future Life Policy Benefits and Policyholders&#146; Contract Deposits</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following analysis provides a reconciliation of the activity in the reserve for losses and loss expenses:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="64%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">At beginning of year:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve for losses and loss expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>79,999</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>77,169</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>61,878</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reinsurance recoverable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(17,369</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(19,693</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(14,624</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>62,630</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>57,476</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,254</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign exchange effect</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>955</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>741</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(628</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Acquisitions<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>317</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>55</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses and loss expenses incurred:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Current year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>30,261</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,805</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,426</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prior years, other than accretion of discount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(656</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,680</TD> <TD vAlign=bottom noWrap align=left><I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prior years, accretion of discount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>327</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>300</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(15</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>29,932</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,052</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33,091</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Losses and loss expenses paid:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Current year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,684</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,368</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,331</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prior years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14,862</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,326</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,910</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>24,546</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23,694</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,241</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">At end of year:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net reserve for losses and loss expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>69,288</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>62,630</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>57,476</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reinsurance recoverable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>16,212</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17,369</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,693</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>85,500</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>79,999</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>77,169</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Reflects the opening balance with respect to the acquisition of W&#252;Ba and the Central Insurance Co., Ltd. in 2007 and 2006, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Includes a fourth quarter charge of $1.8&nbsp;billion resulting from the annual review of General Insurance loss and loss adjustment reserves.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The analysis of the future policy benefits and policyholders&#146; contract deposits liabilities follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="70%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=10><B>At December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Future policy benefits:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Long duration contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135,202</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>120,138</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Short duration contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>866</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>866</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>136,068</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>121,004</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Policyholders&#146; contract deposits:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Annuities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>140,444</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>141,826</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Guaranteed investment contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>25,321</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33,054</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Universal life products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>27,114</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,497</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Variable products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>46,407</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34,821</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Corporate life products</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,124</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,083</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other investment contracts</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>17,049</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,983</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>258,459</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>248,264</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Long duration contract liabilities included in future policy benefits, as presented in the preceding table, result primarily from life products. Short duration contract liabilities are primarily accident and health products. The liability for future life policy benefits has been established based upon the following assumptions: </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest rates (exclusive of immediate/terminal funding annuities), which vary by territory, year of issuance and products, range from 1.0&nbsp;percent to 12.5&nbsp;percent within the first 20&nbsp;years. Interest rates on immediate/terminal funding annuities are at a maximum of 11.5&nbsp;percent and grade to not greater than 6.0&nbsp;percent.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Mortality and surrender rates are based upon actual experience by geographical area modified to allow for variations in policy form. The weighted average lapse rate, including surrenders, for individual and group life approximated 5.7&nbsp;percent.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>The portions of current and prior net income and of current unrealized appreciation of investments that can inure to the benefit of AIG are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Participating life business represented approximately 12&nbsp;percent of the gross insurance in force at December&nbsp;31, 2007 and 25&nbsp;percent of gross premiums and other considerations in 2007. The amount of annual dividends to be paid is determined locally by the boards of directors. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The liability for policyholders&#146; contract deposits has been established based on the following assumptions: </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest rates credited on deferred annuities, which vary by territory and year of issuance, range from 1.4&nbsp;percent to, including bonuses, 13.0&nbsp;percent. Less than 1.0&nbsp;percent of the liabilities are credited at a rate greater than 9.0&nbsp;percent. Current declared interest rates are generally guaranteed to remain in effect for a period of one year though some are guaranteed for longer periods. Withdrawal charges generally range from zero&nbsp;percent to 20.0&nbsp;percent grading to zero over a period of zero to 19&nbsp;years.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Domestically, guaranteed investment contracts (GICs) have market value withdrawal provisions for any funds withdrawn other than benefit responsive payments. Interest rates credited generally range from 2.8&nbsp;percent to 9.0&nbsp;percent. The vast majority of these GICs mature within five&nbsp;years.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Interest rates on corporate life insurance products are guaranteed at 4.0&nbsp;percent and the weighted average rate credited in 2007 was 5.2&nbsp;percent.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>The universal life funds have credited interest rates of 1.0&nbsp;percent to 7.0&nbsp;percent and guarantees ranging from 1.0&nbsp;percent to 5.5&nbsp;percent depending on the year of issue. Additionally, universal life funds are subject to surrender charges that amount to 12.0&nbsp;percent of the aggregate fund balance grading to zero over a period not longer than 20&nbsp;years.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>For variable products and investment contracts, policy values are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units plus any liability for guaranteed minimum death or withdrawal benefits.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain products are subject to experience adjustments. These include group life and group medical products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as revenue, and the unearned portions of the premiums recorded as liabilities. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance. </DIV></BODY></HTML> 9.&nbsp;Reserve for Losses and Loss Expenses and Future Life Policy Benefits and Policyholders&#146; Contract Deposits The following analysis provides a false false No definition available. No authoritative reference available. false 12 1 aig_VariableLifeAndAnnuityContractsTextBlock aig false na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>10.&nbsp;Variable Life and Annuity Contracts</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG follows American Institute of Certified Public Accountants Statement of Position <FONT style="WHITE-SPACE: nowrap">03-1</FONT> (SOP <FONT style="WHITE-SPACE: nowrap">03-1),</FONT> which requires recognition of a liability for guaranteed minimum death benefits and other living benefits related to variable annuity and variable life contracts as well as certain disclosures for these products. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG reports variable contracts through separate and variable accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities), and the separate account qualifies for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1.</FONT> In some foreign jurisdictions, separate accounts are not legally insulated from general account creditors and therefore do not qualify for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1.</FONT> In such cases, the variable contracts are reported as general account contracts even though the policyholder bears the risks associated with the performance of the assets. AIG also reports variable annuity and life contracts through separate and variable accounts, or general accounts when not qualified for separate account reporting, when AIG contractually guarantees to the contract holder (variable contracts with guarantees) either <I>(a)&nbsp;</I>total deposits made to the contract less any partial withdrawals plus a minimum return (and in minor instances, no minimum returns) (Net Deposits Plus a Minimum Return) or <I>(b)&nbsp;</I>the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary (Highest Contract Value Attained). These guarantees include benefits that are payable in the event of death, annuitization, or, in other instances, at specified dates during the accumulation period. Such benefits are referred to as guaranteed minimum death benefits (GMDB), guaranteed minimum income benefits (GMIB), guaranteed minimum withdrawal benefits (GMWB) and guaranteed minimum account value benefits (GMAV). For AIG, GMDB is by far the most widely offered benefit. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The assets supporting the variable portion of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as Separate and variable account assets with an equivalent summary total reported as Separate and variable account liabilities when the separate account qualifies for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1.</FONT> Assets for separate accounts that do not qualify for separate account treatment are reported as trading account assets, and liabilities are included in the respective policyholder liability account of the general account. Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenue and changes in liabilities for minimum guarantees are included in incurred policy losses and benefits in the consolidated statement of income. Separate and variable account net investment income, net investment gains and losses, and the related liability changes are offset within the same line item in the consolidated statement of income for those accounts that qualify for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1.</FONT> Net investment income and gains and losses on trading accounts for contracts that do not qualify for separate account treatment under SOP <FONT style="WHITE-SPACE: nowrap">03-1</FONT> are reported in net investment income and are principally offset by amounts reported in incurred policy losses and benefits. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The vast majority of AIG&#146;s exposure on guarantees made to variable contract holders arises from GMDB. Details concerning AIG&#146;s GMDB exposures at December&nbsp;31, 2007 and 2006 are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="59%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="9%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net Deposits</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plus&nbsp;a&nbsp;Minimum</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Highest Contract</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(dollars in billions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Return</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value Attained</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Account value<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>$66</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>$17</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amount at risk<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Average attained age of contract holders by product</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>38-69&nbsp;years</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>55-72&nbsp;years</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Range of guaranteed minimum return rates</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3-10%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Account value<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$64</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$15</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amount at risk<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Average attained age of contract holders by product</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38-70&nbsp;years</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>56-71&nbsp;years</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Range of guaranteed minimum return rates</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0-10%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Included in Policyholders&#146; contract deposits in the consolidated balance sheet.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Represents the amount of death benefit currently in excess of Account value.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following summarizes GMDB liabilities for guarantees on variable contracts reflected in the general account.</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="72%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at January&nbsp;1</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>406</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>442</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Reserve increase</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>111</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Benefits paid</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(54</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(71</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Balance at December&nbsp;31</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>463</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>406</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The GMDB liability is determined each period end by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. AIG regularly evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The following assumptions and methodology were used to determine the GMDB liability at December&nbsp;31, 2007: </DIV> <TABLE style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Data used was up to 1,000 stochastically generated investment performance scenarios.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Mean investment performance assumptions ranged from three&nbsp;percent to approximately ten&nbsp;percent depending on the block of business.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Volatility assumptions ranged from eight&nbsp;percent to 23&nbsp;percent depending on the block of business.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>Mortality was assumed at between 50&nbsp;percent and 102&nbsp;percent of various life and annuity mortality tables.</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left>For domestic contracts, lapse rates vary by contract type and duration and ranged from zero percent to 40&nbsp;percent. For</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <TABLE style="FONT-SIZE: 10pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">Japan, lapse rates ranged from zero percent to 20&nbsp;percent depending on the type of contract. </FONT></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap"><FONT style="FONT-SIZE: 8.5pt" color=#002868>&#149; &nbsp;</FONT></FONT></TD> <TD align=left><FONT style="FONT-SIZE: 8.5pt">For domestic contracts, the discount rate ranged from 3.25&nbsp;percent to 11&nbsp;percent. For Japan, the discount rate ranged from two&nbsp;percent to seven&nbsp;percent. </FONT></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to GMDB, AIG&#146;s contracts currently include to a lesser extent GMIB. The GMIB liability is determined each period end by estimating the expected value of the annuitization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. AIG periodically evaluates estimates used and adjusts the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG contracts currently include a minimal amount of GMAV and GMWB. GMAV and GMWB are considered to be embedded derivatives and are recognized at fair value through earnings. AIG enters into derivative contracts to economically hedge a portion of the exposure that arises from GMAV and GMWB. </DIV></BODY></HTML> 10.&nbsp;Variable Life and Annuity Contracts AIG follows American Institute of Certified Public Accountants Statement of Position 03-1 (SOP 03-1), which false false No definition available. No authoritative reference available. false 13 1 us-gaap_DebtDisclosureTextBlock us-gaap true na duration string Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit,... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>11.&nbsp;Debt Outstanding</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>At December&nbsp;31, 2007 and 2006, AIG&#146;s total borrowings were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="73%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total long-term borrowings</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>162,935</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>135,316</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Commercial paper and extendible commercial notes</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>13,114</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,363</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total borrowings</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>176,049</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>148,679</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Maturities of Long-term borrowings at December&nbsp;31, 2007, excluding borrowings of consolidated investments, are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="29%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=29>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2008</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2009</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2010</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2011</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>2012</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><I>Thereafter</I></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=29>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,588</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,591</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,441</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,349</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>450</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>27</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>9,730</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Junior subordinated debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,809</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,809</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Loans and mortgages payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>729</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>627</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>102</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">MIP matched notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,267</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,218</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,309</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,188</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,039</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,313</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Series&nbsp;AIGFP matched notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>874</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>65</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>77</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>32</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>56</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>619</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total AIG</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,267</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,736</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,690</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,663</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,122</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21,573</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGFP:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">GIAs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,908</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,370</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,831</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,127</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>581</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>660</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,339</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,676</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23,670</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,522</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>431</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>403</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,885</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,765</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Loans and mortgages payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,384</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>160</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,224</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Hybrid financial instrument liabilities<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,479</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,581</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>425</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,739</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>693</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>332</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,709</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total AIGFP</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>65,447</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>31,621</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,778</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,297</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,677</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,037</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17,037</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGLH notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>797</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>499</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>298</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities connected to trust preferred stock</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,435</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,435</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">ILFC<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,111</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,065</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,978</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,808</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,021</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,531</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,708</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Junior subordinated debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>999</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>999</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Export credit facility<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,542</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>522</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>470</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>356</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>266</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>237</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>691</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Bank financings</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,084</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>471</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>103</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>160</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>325</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total ILFC</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26,736</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,612</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,919</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,267</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,447</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,093</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,398</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AGF<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Notes and bonds payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,369</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,085</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,108</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,902</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,073</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,001</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Junior subordinated debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>349</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>349</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total AGF</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22,718</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,085</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,108</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,200</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,902</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,073</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,350</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGCFG Loans and mortgages payable <I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,839</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,000</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>542</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>225</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>54</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other subsidiaries<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>775</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>90</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>685</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>156,014</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>43,891</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>18,083</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,178</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,700</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>13,332</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>53,830</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Represents structured notes issued by AIGFP that are accounted for at fair value.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>AIG does not guarantee these borrowings.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)&nbsp;</I></TD> <TD align=left><I>Reflects future minimum payment for ILFC&#146;s borrowing under Export Credit Facilities.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Commercial Paper:</B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>At December&nbsp;31, 2007, the commercial paper issued and outstanding was as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="52%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=20>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=5>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unamortized</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Net</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Discount</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Average</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Average</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Book</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>and Accrued</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Face</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Interest</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Maturity</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(dollars in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Interest</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amount</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Rate</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>in Days</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=20>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">ILFC</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>16</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,499</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.63</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AGF</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,607</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,617</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.85</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG Funding</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,222</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,237</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>29</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGCC&nbsp;&#151; Taiwan<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>151</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>151</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>42</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGF&nbsp;&#151; Thailand<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>136</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>137</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3.36</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=21>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,599</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>42</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,641</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=21>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>Issued in local currencies at prevailing local interest rates.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Excludes $321&nbsp;million of borrowings of consolidated investments and $194&nbsp;million of extendible commercial notes.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, AIG did not guarantee the commercial paper of any of its subsidiaries other than AIG Funding. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;AIG Borrowings:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(i)&nbsp;Notes and bonds issued by AIG:</FONT> AIG maintains a medium-term note program under its shelf registration statement. At December&nbsp;31, 2007, approximately $7.3&nbsp;billion principal amount of senior notes were outstanding under the medium-term note program, of which $3.2&nbsp;billion was used for AIG&#146;s general corporate purposes, $873&nbsp;million was used by AIGFP and $3.2&nbsp;billion was used to fund the Matched Investment Program (MIP). The maturity dates of these notes range from 2008 to 2052. To the extent deemed appropriate, AIG may enter into swap transactions to manage its effective borrowing rates with respect to these notes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG also maintains a Euro medium-term note program under which an aggregate nominal amount of up to $20.0&nbsp;billion of senior notes may be outstanding at any one time. At December&nbsp;31, 2007, the equivalent of $12.7&nbsp;billion of notes were outstanding under the program, of which $9.8&nbsp;billion were used to fund the MIP and the remainder was used for AIG&#146;s general corporate purposes. The aggregate amount outstanding includes a $1.1&nbsp;billion loss resulting from foreign exchange translation into U.S.&nbsp;dollars, of which a $332&nbsp;million loss relates to notes issued by AIG for general corporate purposes and a $726&nbsp;million loss relates to notes issued to fund the MIP. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; During 2007, AIG issued in Rule&nbsp;144A offerings an aggregate of $3.0&nbsp;billion principal amount of senior notes, of which $650&nbsp;million was used to fund the MIP and $2.3&nbsp;billion was used for AIG&#146;s general corporate purposes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG maintains a shelf registration statement in Japan, providing for the issuance of up to Japanese Yen 300&nbsp;billion principal amount of senior notes, of which the equivalent of $450&nbsp;million was outstanding at December&nbsp;31, 2007, and was used for AIG&#146;s general corporate purposes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(ii)&nbsp;Junior subordinated debt:</FONT> During 2007, AIG issued an aggregate of $5.6&nbsp;billion of junior subordinated debentures in five series of securities. Substantially all of the proceeds from these sales, net of expenses, are being used to repurchase shares of AIG&#146;s common stock. In connection with each series of junior subordinated debentures, AIG entered into a Replacement Capital Covenant (RCC) for the benefit of the holders of AIG&#146;s 6.25&nbsp;percent senior notes due 2036. The RCCs provide that AIG will not repay, redeem, or purchase the applicable series of junior subordinated debentures on or before a specified date, unless AIG has received qualifying proceeds from the sale of replacement capital securities. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(c)&nbsp;AIGFP Borrowings:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(i)&nbsp;Borrowings under Obligations of Guaranteed Investment Agreements:</FONT> Borrowings under obligations of guaranteed investment agreements (GIAs), which are guaranteed by AIG, are recorded at the amount outstanding under each contract. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity, and range up to 9.8&nbsp;percent. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Funds received from GIA borrowings are invested in a diversified portfolio of securities and derivative transactions. At December&nbsp;31, 2007, the fair value of securities pledged as collateral with respect to these obligations approximated $14.5&nbsp;billion. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(ii)&nbsp;Notes and Bonds issued by AIGFP: </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>At December&nbsp;31, 2007, AIGFP&#146;s notes and bonds outstanding, the proceeds of which are invested in a diversified portfolio of securities and derivative transactions, were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="19%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="49%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=7>Range of</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Dollar</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=3>Maturities</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Range of</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Carrying</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(dollars in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=left>Currency</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Interest Rates</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2054</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>U.S.&nbsp;dollar</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.26&nbsp;-&nbsp;9.00</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>29,490</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2049</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Euro</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.25&nbsp;-&nbsp;6.53</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,819</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>United Kingdom pound</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.67&nbsp;-&nbsp;6.31</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,936</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2037</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Japanese Yen</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01&nbsp;-&nbsp;2.9</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,025</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2024</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Swiss francs</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>512</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>New Zealand dollar</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8.35</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>386</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2009&nbsp;-&nbsp;2017</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Australian dollar</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.14&nbsp;-&nbsp;2.65</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>177</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008&nbsp;-&nbsp;2017</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>Other</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.39&nbsp;-&nbsp;4.95</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>194</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=11>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>45,539</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=11>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGFP economically hedges its notes and bonds. AIG guarantees all of AIGFP&#146;s debt. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(iii)&nbsp;Hybrid financial instrument liabilities:</FONT> AIGFP&#146;s notes and bonds include structured debt instruments whose payment terms are linked to one or more financial or other indices (such as an equity index or commodity index or another measure that is not considered to be clearly and closely related to the debt instrument). These notes contain embedded derivatives that otherwise would be required to be accounted for separately under FAS&nbsp;133. Upon AIG&#146;s early adoption of FAS&nbsp;155, AIGFP elected the fair value option for these notes. The notes that are accounted for using the fair value option are reported separately under hybrid financial instrument liabilities at fair value. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(d)&nbsp;AIGLH Borrowings:</B><FONT style="FONT-SIZE: 8.5pt"> At December&nbsp;31, 2007, AIGLH notes aggregating $797&nbsp;million were outstanding with maturity dates ranging from 2010 to 2029 at interest rates from 6.625&nbsp;percent to 7.50&nbsp;percent. AIG guarantees the notes and bonds of AIGLH. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(e)&nbsp;Liabilities Connected to Trust&nbsp;Preferred Stock:</B><FONT style="FONT-SIZE: 8.5pt"> AIGLH issued Junior Subordinated Debentures (liabilities)&nbsp;to certain trusts established by AIGLH, which represent the sole assets of the trusts. The trusts have no independent operations. The trusts issued mandatory redeemable preferred stock to investors. The interest terms and payment dates of the liabilities correspond to those of the preferred stock. AIGLH&#146;s obligations with respect to the liabilities and related agreements, when taken together, constitute a full and unconditional guarantee by AIGLH of payments due on the preferred securities. AIG guarantees the obligations of AIGLH with respect to these liabilities and related agreements. The liabilities are redeemable, under certain conditions, at the option of AIGLH on a proportionate basis. </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, the preferred stock outstanding consisted of $300&nbsp;million liquidation value of 8.5&nbsp;percent preferred stock issued by American General Capital&nbsp;II in June 2000, $500&nbsp;million liquidation value of 8.125&nbsp;percent preferred stock issued by American General Institutional Capital B in March 1997, and $500&nbsp;million liquidation value of 7.57&nbsp;percent preferred stock issued by American General Institutional Capital A in December 1996. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B>(f)&nbsp;ILFC Borrowings:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(i)&nbsp;Notes and Bonds issued by ILFC:</FONT> At December&nbsp;31, 2007, notes aggregating $23.1&nbsp;billion were outstanding, consisting of $10.8&nbsp;billion of term notes, $11.3&nbsp;billion of medium-term notes with maturities ranging from 2008 to 2014 and interest rates ranging from 2.75&nbsp;percent to 5.75&nbsp;percent and $1.0&nbsp;billion of junior subordinated debt as discussed below. Notes aggregating $5.3&nbsp;billion are at floating interest rates and the remainder are at fixed rates. To the extent deemed appropriate, ILFC may enter into swap transactions to manage its effective borrowing rates with respect to these notes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a well-known seasoned issuer, ILFC has filed an automatic shelf registration statement with the SEC allowing ILFC immediate access to the U.S.&nbsp;public debt markets. At December&nbsp;31, 2007, $4.7&nbsp;billion of debt securities had been issued under this registration statement and $5.9&nbsp;billion had been issued under a prior registration statement. In addition, ILFC has a Euro medium term note program for $7.0&nbsp;billion, under which $3.8&nbsp;billion in notes were outstanding at December&nbsp;31, 2007. Notes issued under the Euro medium-term note program are included in ILFC notes and bonds payable in the preceding table of borrowings. The cumulative foreign exchange adjustment loss for the foreign currency denominated debt was $969&nbsp;million at December&nbsp;31, 2007 and $733&nbsp;million at December&nbsp;31, 2006. ILFC has substantially eliminated the currency exposure arising from foreign currency denominated notes by economically hedging the portion of the note exposure not already offset by <FONT style="WHITE-SPACE: nowrap">Euro-denominated</FONT> operating lease payments. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(ii)&nbsp;Junior subordinated debt: </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In December 2005, ILFC issued two tranches of junior subordinated debt totaling $1.0&nbsp;billion to underlie trust preferred securities issued by a trust sponsored by ILFC. Both tranches mature on December&nbsp;21, 2065, but each tranche has a different call option. The $600&nbsp;million tranche has a call date of December&nbsp;21, 2010 and the $400&nbsp;million tranche has a call date of December&nbsp;21, 2015. The note with the 2010 call date has a fixed interest rate of 5.90&nbsp;percent for the first five years. The note with the 2015 call date has a fixed interest rate of 6.25&nbsp;percent for the first ten years. Both tranches have interest rate adjustments if the call option is not exercised. The new interest rate is a floating quarterly reset rate based on the initial credit spread plus the highest of (i)&nbsp;3&nbsp;month LIBOR, (ii)&nbsp;<FONT style="WHITE-SPACE: nowrap">10-year</FONT> constant maturity treasury and (iii)&nbsp;<FONT style="WHITE-SPACE: nowrap">30-year</FONT> constant maturity treasury. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(iii)&nbsp;Export credit facility:</FONT> ILFC had a $4.3&nbsp;billion Export Credit Facility (ECA)&nbsp;for use in connection with the purchase of approximately 75 aircraft delivered through 2001. This facility was guaranteed by various European Export Credit Agencies. The interest rate varies from 5.75&nbsp;percent to 5.90&nbsp;percent on these amortizing ten-year borrowings depending on the delivery date of the aircraft. At December&nbsp;31, 2007, ILFC had $664 million outstanding under this facility. The debt is collateralized by a pledge of the shares of a subsidiary of ILFC, which holds title to the aircraft financed under the facility. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In May 2004, ILFC entered into a similarly structured ECA for up to a maximum of $2.6&nbsp;billion for Airbus aircraft to be delivered through May&nbsp;31, 2005. The facility was subsequently increased to $3.6&nbsp;billion and extended to include aircraft to be delivered through May&nbsp;31, 2008. The facility becomes available as the various European Export Credit Agencies provide their guarantees for aircraft based on a six-month forward-looking calendar, and the interest rate is determined through a bid process. At December&nbsp;31, 2007, ILFC had $1.9 billion outstanding under this facility. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(iv)&nbsp;Bank Financings:</FONT> From time to time, ILFC enters into various bank financings. At December&nbsp;31, 2007, the total funded amount was $1.1 billion. The financings mature through 2012. AIG does not guarantee any of the debt obligations of ILFC. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(g)&nbsp;AGF Borrowings:</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>(i)&nbsp;Notes and bonds issued by AGF:</FONT> At December&nbsp;31, 2007, notes and bonds aggregating $22.4&nbsp;billion were outstanding with maturity dates ranging from 2008 to 2031 at interest rates ranging from 1.94&nbsp;percent to 8.45&nbsp;percent. To the extent deemed appropriate, AGF may enter into swap transactions to manage its effective borrowing rates with respect to these notes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a well-known seasoned issuer, AGF has filed an automatic shelf registration statement with the SEC allowing AGF immediate access to the U.S.&nbsp;public debt markets. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AGF uses the proceeds from the issuance of notes and bonds for the funding of its finance receivables. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left>(ii)&nbsp;Junior subordinated debt: In January 2007, AGF issued junior subordinated debentures in an aggregate principal amount of $350&nbsp;million that mature in January 2067. The debentures underlie a series of trust preferred securities sold by a trust sponsored by AGF in a Rule&nbsp;144A/ Regulation&nbsp;S offering. AGF can redeem the debentures at par beginning in January 2017. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG does not guarantee any of the debt obligations of AGF. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(h)&nbsp;Other Notes, Bonds, Loans and Mortgages Payable at December&nbsp;31, 2007, consisted of the following:</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="59%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="9%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Uncollateralized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Collateralized</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Notes/Bonds/Loans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Loans and</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Payable</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Mortgages Payable</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIGCFG</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,839</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>729</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>600</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>175</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3,168</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>175</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(i)&nbsp;Interest Expense for All Indebtedness:</B><FONT style="FONT-SIZE: 8.5pt"> Total interest expense for all indebtedness, net of capitalized interest, aggregated $9.69 billion in 2007, $6.95&nbsp;billion in 2006 and $5.7&nbsp;billion in 2005. Capitalized interest was $37 million in 2007, $59&nbsp;million in 2006 and $64&nbsp;million in 2005. Cash distributions on the preferred shareholders&#146; equity in subsidiary companies of ILFC and liabilities connected to trust preferred stock of AIGLH subsidiaries are accounted for as interest expense in the consolidated statement of income. The cash distributions for ILFC were approximately $5&nbsp;million for each of the years ended December&nbsp;31, 2007, 2006 and 2005. The cash distributions for AIGLH subsidiaries were approximately $107 million, $107&nbsp;million and $112&nbsp;million for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively. </FONT></DIV></BODY></HTML> 11.&nbsp;Debt Outstanding At December&nbsp;31, 2007 and 2006, AIG&#146;s total borrowings were as follows: &nbsp; &nbsp; &nbsp; false false Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancings and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 false 14 1 us-gaap_CommitmentsAndContingenciesDisclosureTextBlock us-gaap true na duration string Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>12.&nbsp;Commitments, Contingencies and Guarantees</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In the normal course of business, various commitments and contingent liabilities are entered into by AIG and certain of its subsidiaries. In addition, AIG guarantees various obligations of certain subsidiaries. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Litigation and Investigations</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Litigation Arising from Operations.</I> AIG and its subsidiaries, in common with the insurance and financial services industries in general, are subject to litigation, including claims for punitive damages, in the normal course of their business. In AIG&#146;s insurance operations, litigation arising from claims settlement activities is generally considered in the establishment of AIG&#146;s reserve for losses and loss expenses. However, the potential for increasing jury awards and settlements makes it difficult to assess the ultimate outcome of such litigation. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Litigation Arising from Insurance Operations&nbsp;&#151; Caremark.</I> AIG and certain of its subsidiaries have been named defendants in two putative class actions in state court in Alabama that arise out of the 1999 settlement of class and derivative litigation involving Caremark Rx, Inc. (Caremark). The plaintiffs in the second-filed action have intervened in the first-filed action, and the second-filed action has been dismissed. An excess policy issued by a subsidiary of AIG with respect to the 1999 litigation was expressly stated to be without limit of liability. In the current actions, plaintiffs allege that the judge approving the 1999 settlement was misled as to the extent of available insurance coverage and would not have approved the settlement had he known of the existence and/or unlimited nature of the excess policy. They further allege that AIG, its subsidiaries, and Caremark are liable for fraud and suppression for misrepresenting and/or concealing the nature and extent of coverage. In addition, the intervenor-plaintiffs allege that various lawyers and law firms who represented parties in the underlying class and derivative litigation (the &#147;Lawyer Defendants&#148;) are also liable for fraud and suppression, misrepresentation, and breach of fiduciary duty. The complaints filed by the plaintiffs and the intervenor-plaintiffs request compensatory damages for the 1999 class in the amount of $3.2&nbsp;billion, plus punitive damages. AIG and its subsidiaries deny the allegations of fraud and suppression and have asserted that information concerning the excess policy was publicly disclosed months prior to the approval of the settlement. AIG and its subsidiaries further assert that the current claims are barred by the statute of limitations and that plaintiffs&#146; assertions that the statute was tolled cannot stand against the public disclosure of the excess coverage. The plaintiffs and intervenor-plaintiffs, in turn, have asserted that the disclosure was insufficient to inform them of the nature of the coverage and did not start the running of the statute of limitations. On November&nbsp;26, 2007, the trial court issued an order that dismissed the intervenors&#146; complaint against the Lawyer Defendants and entered a final judgment in favor of the Lawyer Defendants. The intervenors are appealing the dismissal of the Lawyer Defendants and have requested a stay of all trial court proceedings pending the appeal. If the motion to stay is granted, no further proceedings at the trial court level will occur until the appeal is resolved. If the motion to stay is denied, the next step will be to proceed with class discovery so that the trial court can determine, under standards mandated by the Alabama Supreme Court, whether the action should proceed as a class action. AIG cannot reasonably estimate either the likelihood of its prevailing in these actions or the potential damages in the event liability is determined. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Litigation Arising from Insurance Operations&nbsp;&#151; Gunderson.</I> A subsidiary of AIG has been named as a defendant in a putative class action lawsuit in the 14th&nbsp;Judicial District Court for the State of Louisiana. The <I>Gunderson </I>complaint alleges failure to comply with certain provisions of the Louisiana Any Willing Provider Act (the Act) relating to discounts taken by defendants on bills submitted by Louisiana medical providers and hospitals that provided treatment or services to workers compensation claimants and seeks monetary penalties and injunctive relief. On July&nbsp;20, 2006, the court denied defendants&#146; motion for summary judgment and granted plaintiffs&#146; partial motion for summary judgment, holding that the AIG subsidiary was a &#147;group purchaser&#148; and, therefore, potentially subject to liability under the Act. On November&nbsp;28, 2006, the court issued an order certifying a class of providers and hospitals. In an unrelated action also arising under the Act, a Louisiana appellate court ruled that the district court lacked jurisdiction to adjudicate the claims at issue. In response, defendants in <I>Gunderson </I>filed an exception for lack of subject matter jurisdiction. On January&nbsp;19, 2007, the court denied the motion, holding that it has jurisdiction over the putative class claims. The AIG subsidiary has appealed the class certification and jurisdictional rulings. While the appeal was pending, the AIG subsidiary settled the lawsuit. On January&nbsp;25, 2008, plaintiffs and the AIG subsidiary agreed to resolve the lawsuit on a class-wide basis for approximately $29&nbsp;million. The court has preliminarily approved the settlement and will hold a final approval hearing on May&nbsp;29, 2008. In the event that the settlement is not finally approved, AIG believes that it has meritorious defenses to plaintiffs&#146; claims and expects that the ultimate resolution of this matter will not have a material adverse effect on AIG&#146;s consolidated financial condition or results of operations for any period. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>2006 Regulatory Settlements.</I> In February 2006, AIG reached a resolution of claims and matters under investigation with the United States Department of Justice (DOJ), the Securities and Exchange Commission (SEC), the Office of the New York Attorney General (NYAG)&nbsp;and the New York State Department of Insurance (DOI). AIG recorded an after-tax charge of $1.15&nbsp;billion relating to these settlements in the fourth quarter of 2005. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The settlements resolved investigations conducted by the SEC, NYAG and DOI in connection with the accounting, financial reporting and insurance brokerage practices of AIG and its subsidiaries, as well as claims relating to the underpayment of certain workers compensation premium taxes and other assessments. These settlements did not, however, resolve investigations by regulators from other states into insurance brokerage practices related to contingent commissions and other broker-related conduct, such as alleged bid rigging. Nor did the settlements resolve any obligations that AIG may have to state guarantee funds in connection with any of these matters. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a result of these settlements, AIG made payments or placed amounts in escrow in 2006 totaling approximately $1.64&nbsp;billion, $225&nbsp;million of which represented fines and penalties. Amounts held in escrow totaling $347&nbsp;million, including interest thereon, are included in other assets at December&nbsp;31, 2007. At that date, approximately $330&nbsp;million of the funds were escrowed for settlement of claims resulting from the underpayment by AIG of its residual market assessments for workers compensation. On May&nbsp;24, 2007, The National Workers Compensation Reinsurance Pool, on behalf of its participant members, filed a lawsuit against AIG with respect to the underpayment of such assessments. On August&nbsp;6, 2007, the court denied AIG&#146;s motion seeking to dismiss or stay the complaint based on <I>Colorado River</I> abstention or <I>forum non conveniens</I>, or in the alternative, to transfer to the Southern District of New York. On December&nbsp;26, 2007, the court denied AIG&#146;s motion to dismiss the complaint. AIG filed its answer on January&nbsp;22, 2008. On February&nbsp;5, 2008, following agreement of the parties, the court entered an order staying all proceedings through March&nbsp;3, 2008. In addition, a similar lawsuit filed by the Minnesota Workers Compensation Reinsurance Association and the Minnesota Workers Compensation Insurers Association is pending. On August&nbsp;6, 2007, AIG moved to dismiss the complaint and that motion is <I>sub judice</I>. A purported class action was filed in South Carolina Federal Court on January&nbsp;25, 2008 against AIG and certain of its subsidiaries, on behalf of a class of employers that obtained workers compensation insurance from AIG companies and allegedly paid inflated premiums as a result of AIG&#146;s alleged underreporting of workers compensation premiums. AIG cannot currently estimate whether the amount ultimately required to settle these claims will exceed the funds escrowed or otherwise accrued for this purpose. AIG has settled litigation that was filed by the Minnesota Attorney General with respect to claims by the Minnesota Department of Revenue and the Minnesota Special Compensation Fund. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The National Association of Insurance Commissioners has formed a Market Analysis Working Group directed by the State of Indiana, which has commenced its own investigation into the underreporting of workers compensation premium. In early 2008, AIG was informed that the Market Analysis Working Group had been disbanded in favor of a multi-state targeted market conduct exam focusing on worker&#146;s compensation insurance. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The remaining escrowed funds, which amounted to $17&nbsp;million at December&nbsp;31, 2007, are set aside for settlements for certain specified AIG policyholders. As of February&nbsp;20, 2008, eligible policyholders entitled to receive approximately $359&nbsp;million (or 95&nbsp;percent) of the excess casualty fund had opted to receive settlement payments in exchange for releasing AIG and its subsidiaries from liability relating to certain insurance brokerage practices. Amounts remaining in the excess casualty fund may be used by AIG to settle claims from other policyholders relating to such practices through February&nbsp;29, 2008 (originally set for January&nbsp;31, 2008 and later extended), after which they will be distributed pro rata to participating policyholders. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In addition to the escrowed funds, $800&nbsp;million was deposited into a fund under the supervision of the SEC as part of the settlements to be available to resolve claims asserted against AIG by investors, including the shareholder lawsuits described herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Also, as part of the settlements, AIG agreed to retain, for a period of three years, an independent consultant to conduct a review that will include, among other things, the adequacy of AIG&#146;s internal control over financial reporting, the policies, procedures and effectiveness of AIG&#146;s regulatory, compliance and legal functions and the remediation plan that AIG has implemented as a result of its own internal review. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Other than as described above, at the current time, AIG cannot predict the outcome of the matters described above, or estimate any potential additional costs related to these matters. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Private Litigation</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Securities Actions.</I> Beginning in October 2004, a number of putative securities fraud class action suits were filed against AIG and consolidated as <I>In re American International Group, Inc.</I>&nbsp;Securities Litigation. Subsequently, a separate, though similar, securities fraud action was also brought against AIG by certain Florida pension funds. The lead plaintiff in the class action is a group of public retirement systems and pension funds benefiting Ohio state employees, suing on behalf of themselves and all purchasers of AIG&#146;s publicly traded securities between October&nbsp;28, 1999 and April&nbsp;1, 2005. The named defendants are AIG and a number of present and former AIG officers and directors, as well as Starr, SICO, General Reinsurance Corporation, and PricewaterhouseCoopers LLP (PwC), among others. The lead plaintiff alleges, among other things, that AIG: (1)&nbsp;concealed that it engaged in anti-competitive conduct through alleged payment of contingent commissions to brokers and participation in illegal bid-rigging; (2)&nbsp;concealed that it used &#147;income smoothing&#148; products and other techniques to inflate its earnings; (3)&nbsp;concealed that it marketed and sold &#147;income smoothing&#148; insurance products to other companies; and (4)&nbsp;misled investors about the scope of government investigations. In addition, the lead plaintiff alleges that AIG&#146;s former Chief Executive Officer manipulated AIG&#146;s stock price. The lead plaintiff asserts claims for violations of Sections&nbsp;11 and 15 of the Securities Act of 1933, Section&nbsp;10(b) of the Exchange Act, and Rule&nbsp;<FONT style="WHITE-SPACE: nowrap">10b-5</FONT> promulgated thereunder, Section&nbsp;20(a) of the Exchange Act, and Section&nbsp;20A of the Exchange Act. In April 2006, the court denied the defendants&#146; motions to dismiss the second amended class action complaint and the Florida complaint. In December 2006, a third amended class action complaint was filed, which does not differ substantially from the prior complaint. Fact and class discovery is currently ongoing. On February&nbsp;20, 2008, the lead plaintiff filed a motion for class certification. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>ERISA Action.</I> Between November&nbsp;30, 2004 and July&nbsp;1, 2005, several Employee Retirement Income Security Act of 1974 (ERISA)&nbsp;actions were filed on behalf of purported class of participants and beneficiaries of three pension plans sponsored by AIG or its subsidiaries. A consolidated complaint filed on September&nbsp;26, 2005 alleges a class period between September&nbsp;30, 2000 and May&nbsp;31, 2005 and names as defendants AIG, the members of AIG&#146;s Retirement Board and the Administrative Boards of the plans at issue, and four present or former members of AIG&#146;s Board of Directors. The factual allegations in the complaint are essentially identical to those in the securities actions described above. The parties have reached an agreement in principle to settle this matter for an amount within AIG&#146;s insurance coverage limits. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Securities Action&nbsp;&#151; Oregon State Court.</I> On February&nbsp;27,&nbsp;2008, The State of Oregon, by and through the Oregon State Treasurer, and the Oregon Public Employee Retirement Board, on behalf of the Oregon Public Employee Retirement Fund, filed a lawsuit against American International Group, Inc. for damages arising out of plaintiffs&#146; purchase of AIG common stock at prices that allegedly were inflated. Plaintiffs allege, among other things, that AIG: (1) made false and misleading statements concerning its accounting for a $500&nbsp;million transaction with General Re; (2)&nbsp;concealed that it marketed and misrepresented its control over off-shore entities in order to improve financial results; (3)&nbsp;improperly accounted for underwriting losses as investment losses in connection with transactions involving CAPCO Reinsurance Company, Ltd. and Union Excess; (4) misled investors about the scope of government investigations; and (5) engaged in market manipulation through its then Chairman and CEO Maurice&nbsp;R. Greenburg. The complaint asserts claims for violations of Oregon Securities Law, and seeks compensatory damages in an amount in excess of $15&nbsp;million, and prejudgment interest and costs and fees. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Derivative Actions&nbsp;&#151; Southern District of New York.</I> On November&nbsp;20, 2007, two purported shareholder derivative actions were filed in the Southern District of New York naming as defendants the current directors of AIG and certain senior officers of AIG and its subsidiaries. Plaintiffs assert claims for breach of fiduciary duty, waste of corporate assets and unjust enrichment, as well as violations of Section&nbsp;10(b) of the Exchange Act and Rule&nbsp;<FONT style="WHITE-SPACE: nowrap">10b-5</FONT> promulgated thereunder, and Section&nbsp;20(a) of the Exchange Act, among other things, in connection with AIG&#146;s public disclosures regarding its exposure to what the lawsuits describe as the subprime market crisis. The actions were consolidated as <I>In re American International Group, Inc. 2007 Derivative Litigation</I>. On February&nbsp;15, 2008, plaintiffs filed a consolidated amended complaint alleging the same causes of action. AIG may become subject to litigation with respect to these or similar issues. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Between October&nbsp;25, 2004 and July&nbsp;14, 2005, seven separate derivative actions were filed in the Southern District of New York, five of which were consolidated into a single action. The New York derivative complaint contains nearly the same types of allegations made in the securities fraud and ERISA actions described above. The named defendants include current and former officers and directors of AIG, as well as Marsh&nbsp;&amp; McLennan Companies, Inc. (Marsh), SICO, Starr, ACE Limited and subsidiaries (ACE), General Reinsurance Corporation, PwC, and certain employees or officers of these entity defendants. Plaintiffs assert claims for breach of fiduciary duty, gross mismanagement, waste of corporate assets, unjust enrichment, insider selling, auditor breach of contract, auditor professional negligence and disgorgement from AIG&#146;s former Chief Executive Officer and Chief Financial Officer of incentive-based compensation and AIG share proceeds under Section&nbsp;304 of the Sarbanes-Oxley Act, among others. Plaintiffs seek, among other things, compensatory damages, corporate governance reforms, and a voiding of the election of certain AIG directors. AIG&#146;s Board of Directors has appointed a special committee of independent directors (special committee) to review the matters asserted in the operative consolidated derivative complaint. The court has entered an order staying the derivative case in the Southern District of New York pending resolution of the consolidated derivative action in the Delaware Chancery Court (discussed below). The court also has entered an order that termination of certain named defendants from the Delaware derivative action applies to the New York derivative action without further order of the court. On October&nbsp;17, 2007, plaintiffs and those AIG officer and director defendants against whom the shareholder plaintiffs in the Delaware action are no longer pursuing claims filed a stipulation providing for all claims in the New York action against such defendants to be dismissed with prejudice. Former directors and officers Maurice R. Greenberg and Howard I. Smith have asked the court to refrain from so ordering this stipulation. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Derivative Actions&nbsp;&#151;&nbsp;Delaware Chancery Court.</I> From October 2004 to April 2005, AIG shareholders filed five derivative complaints in the Delaware Chancery Court. All of these derivative lawsuits were consolidated into a single action as <I>In re American International Group, Inc. Consolidated Derivative Litigation</I>. The amended consolidated complaint named 43 defendants (not including nominal defendant AIG) who, like the New York consolidated derivative litigation, were current and former officers and directors of AIG, as well as other entities and certain of their current and former employees and directors. The factual allegations, legal claims and relief sought in the Delaware action are similar to those alleged in the New York derivative actions, except that shareholder plaintiffs in the Delaware derivative action assert claims only under state law. Earlier in 2007, the Court approved an agreement that AIG be realigned as plaintiff, and, on June&nbsp;13, 2007, acting on the direction of the special committee, AIG filed an amended complaint against former directors and officers Maurice R. Greenberg and Howard I. Smith, alleging breach of fiduciary duty and indemnification. Also on June&nbsp;13, 2007, the special committee filed a motion to terminate the litigation as to certain defendants, while taking no action as to others. Defendants Greenberg and Smith filed answers to AIG&#146;s complaint and brought third-party complaints against certain current and former AIG directors and officers, PwC and Regulatory Insurance Services, Inc. On September&nbsp;28, 2007, AIG and the shareholder plaintiffs filed a combined amended complaint in which AIG continued to assert claims against defendants Greenberg and Smith and took no position as to the claims asserted by the shareholder plaintiffs in the remainder of the combined amended complaint. In that pleading, the shareholder plaintiffs are no longer pursuing claims against certain AIG officers and directors. In November 2007, the shareholder plaintiffs moved to sever their claims to a separate action. AIG joined the motion to the extent that, among other things, the claims against defendants Greenberg and Smith would remain in prosecution in the pending action. In addition, a number of parties, including AIG, filed motions to stay discovery. On February&nbsp;12, 2008, the court granted AIG&#146;s motion to stay discovery pending the resolution of claims against AIG in the New York consolidated securities action. The court also denied plaintiff&#146;s motion to sever and directed the parties to coordinate a briefing schedule for the motions to dismiss. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; A separate derivative lawsuit was filed in the Delaware Chancery Court against twenty directors and executives of AIG as well as against AIG as a nominal defendant that alleges, among other things, that the directors of AIG breached the fiduciary duties of loyalty and care by approving the payment of commissions to Starr and of rental and service fees to SICO and the executives breached their duty of loyalty by causing AIG to enter into contracts with Starr and SICO and their fiduciary duties by usurping AIG&#146;s corporate opportunity. The complaint further alleges that the Starr agencies did not provide any services that AIG was not capable of providing itself, and that the diversion of commissions to these entities was solely for the benefit of Starr&#146;s owners. The complaint also alleged that the service fees and rental payments made to SICO and its subsidiaries were improper. Under the terms of a stipulation approved by the Court on February&nbsp;16, 2006, the claims against the outside independent directors were dismissed with prejudice, while the claims against the other directors were dismissed without prejudice. On October&nbsp;31, 2005, Defendants&nbsp;Greenberg, Matthews and Smith, SICO and Starr filed motions to dismiss the amended complaint. In an opinion dated June&nbsp;21, 2006, the Court denied defendants&#146; motion to dismiss, except with respect to plaintiff&#146;s challenge to payments made to Starr before January&nbsp;1, 2000. On July&nbsp;21, 2006, plaintiff filed its second amended complaint, which alleges that, between January&nbsp;1, 2000 and May&nbsp;31, 2005, individual defendants breached their duty of loyalty by causing AIG to enter into contracts with Starr and SICO and breached their fiduciary duties by usurping AIG&#146;s corporate opportunity. Starr is charged with aiding and abetting breaches of fiduciary duty and unjust enrichment for its acceptance of the fees. SICO is no longer named as a defendant. On April&nbsp;20, 2007, the individual defendants and Starr filed a motion seeking leave of the Court to assert a cross-claim against AIG and a third-party complaint against PwC and the directors previously dismissed from the action, as well as certain other AIG officers and employees. On June&nbsp;13, 2007, the Court denied the individual defendants&#146; motion to file a third-party complaint, but granted the proposed cross-claim against AIG. On June&nbsp;27, 2007, Starr filed its cross-claim against AIG, alleging one count that includes contribution, unjust enrichment and setoff. AIG has filed an answer and moved to dismiss Starr&#146;s cross-claim to the extent it seeks affirmative relief, as opposed to a reduction in the judgment amount. On November&nbsp;15, 2007, the court granted AIG&#146;s motion to dismiss the cross-claim by Starr to the extent that it sought affirmative relief from AIG. On November&nbsp;21, 2007, shareholder plaintiff submitted a motion for leave to file its Third Amended Complaint in order to add Thomas Tizzio as a defendant. On February&nbsp;14, 2008, the court granted this motion and allowed Mr.&nbsp;Tizzio until April 2008 to take additional discovery. Document discovery and depositions are otherwise complete. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Policyholder Actions.</I> After the NYAG filed its complaint against insurance broker Marsh, policyholders brought multiple federal antitrust and Racketeer Influenced and Corrupt Organizations Act (RICO)&nbsp;class actions in jurisdictions across the nation against </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; insurers and brokers, including AIG and a number of its subsidiaries, alleging that the insurers and brokers engaged in a broad conspiracy to allocate customers, steer business, and rig bids. These actions, including 24 complaints filed in different federal courts naming AIG or an AIG subsidiary as a defendant, were consolidated by the judicial panel on multi-district litigation and transferred to the United States District Court for the District of New Jersey for coordinated pretrial proceedings. The consolidated actions have proceeded in that court in two parallel actions, <I>In re</I> <EM>Insurance Brokerage Antitrust Litigation </EM>(the <I>First Commercial Complaint</I>) and <I>In re Employee Benefit Insurance Brokerage Antitrust Litigation </I>(the <I>First Employee Benefits Complaint, </I>and, together with the <I>First Commercial Complaint, </I>the multi-district litigation). </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The plaintiffs in the <I>First Commercial Complaint </I>are nineteen corporations, individuals and public entities that contracted with the broker defendants for the provision of insurance brokerage services for a variety of insurance needs. The broker defendants are alleged to have placed insurance coverage on the plaintiffs&#146; behalf with a number of insurance companies named as defendants, including AIG subsidiaries. The <I>First Commercial Complaint </I>also named ten brokers and fourteen other insurers as defendants (two of which have since settled). The <I>First Commercial Complaint </I>alleges that defendants engaged in a widespread conspiracy to allocate customers through &#147;bid-rigging&#148; and &#147;steering&#148; practices. The <I>First Commercial Complaint </I>also alleges that the insurer defendants permitted brokers to place business with AIG subsidiaries through wholesale intermediaries affiliated with or owned by those same brokers rather than placing the business with AIG subsidiaries directly. Finally, the <I>First Commercial Complaint </I>alleges that the insurer defendants entered into agreements with broker defendants that tied insurance placements to reinsurance placements in order to provide additional compensation to each broker. Plaintiffs assert that the defendants violated the Sherman Antitrust Act, RICO, the antitrust laws of 48&nbsp;states and the District of Columbia, and are liable under common law breach of fiduciary duty and unjust enrichment theories. Plaintiffs seek treble damages plus interest and attorneys&#146; fees as a result of the alleged RICO and Sherman Antitrust Act violations. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The plaintiffs in the <I>First Employee Benefits Complaint </I>are nine individual employees and corporate and municipal employers alleging claims on behalf of two separate nationwide purported classes: an employee class and an employer class that acquired insurance products from the defendants from August&nbsp;26, 1994 to the date of any class certification. The <I>First Employee Benefits Complaint </I>names AIG, as well as eleven brokers and five other insurers, as defendants. The activities alleged in the <I>First Employee Benefits Complaint, </I>with certain exceptions, track the allegations of contingent commissions, bid-rigging and tying made in the <I>First Commercial Complaint.</I> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; On October&nbsp;3, 2006, Judge Hochberg of the District of New Jersey reserved in part and denied in part motions filed by the insurer defendants and broker defendants to dismiss the multi-district litigation. The Court also ordered the plaintiffs in both actions to file supplemental statements of particularity to elaborate on the allegations in their complaints. Plaintiffs filed their supplemental statements on October&nbsp;25, 2006, and the AIG defendants, along with other insurer and broker defendants in the two consolidated actions, filed renewed motions to dismiss on November&nbsp;30, 2006. On February&nbsp;16, 2007, the case was transferred to Judge Garrett E. Brown, Chief Judge of the District of New Jersey. On April&nbsp;5, 2007, Chief Judge Brown granted the defendants&#146; renewed motions to dismiss the <I>First Commercial Complaint </I>and <I>First Employee Benefits Complaint </I>with respect to the antitrust and RICO claims. The claims were dismissed without prejudice and the plaintiffs were given 30&nbsp;days, later extended to 45&nbsp;days, to file amended complaints. On April&nbsp;11, 2007, the Court stayed all proceedings, including all discovery, that are part of the multi-district litigation until any renewed motions to dismiss the amended complaints are resolved. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; A number of complaints making allegations similar to those in the <I>First Commercial Complaint </I>have been filed against AIG and other defendants in state and federal courts around the country. The defendants have thus far been successful in having the federal actions transferred to the District of New Jersey and consolidated into the multi-district litigation. The AIG defendants have also sought to have state court actions making similar allegations stayed pending resolution of the multi-district litigation proceeding. In one state court action pending in Florida, the trial court recently decided not to grant an additional stay, but instead to allow the case to proceed. Defendants filed their motions to dismiss, and on September&nbsp;24, 2007, the court denied the motions with respect to the state antitrust, RICO, and common law claims and granted the motions with respect to both the Florida insurance bad faith claim against AIG (with prejudice) and the punitive damages claim (without prejudice). Discovery in this action is ongoing. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Plaintiffs filed amended complaints in both <I>In re Insurance Brokerage Antitrust Litigation </I>(the <I>Second Commercial Complaint</I>) and <I>In re Employee Benefit Insurance Brokerage Antitrust Litigation </I>(the <I>Second Employee Benefits Complaint</I>) along with revised particularized statements in both actions on May&nbsp;22, 2007. The allegations in the <I>Second Commercial Complaint </I>and the <I>Second Employee Benefits Complaint </I>are substantially similar to the allegations in the <I>First Commercial Complaint and First Employee Benefits Complaint,</I> respectively. The complaints also attempt to add several new parties and delete others; the <I>Second Commercial Complaint </I>adds two new plaintiffs and twenty seven new defendants (including three new AIG defendants), and the <I>Second Employee Benefits Complaint </I>adds eight new plaintiffs and nine new defendants (including two new AIG defendants). The defendants filed motions to dismiss the amended complaints and to strike the newly added parties. The Court granted (without leave to amend) defendants&#146; motions to dismiss the federal antitrust and RICO claims on August&nbsp;31, 2007 and September&nbsp;28, 2007, respectively. The Court declined to exercise supplemental jurisdiction over the state law claims in the <I>Second Commercial Complaint </I>and therefore dismissed it in its entirety. On January&nbsp;14, 2008, the court granted defendants&#146; motion for summary judgment on the ERISA claims in the Second Employee Benefits Complaint and subsequently dismissed the remaining state law claims without prejudice, thereby dismissing the Second Employee Benefits Complaint in its entirety. On February 12, 2008, plaintiffs filed a notice of appeal to the United States Court of Appeals for the Third Circuit with respect to the dismissal of the Second Employee Benefits Complaint. Plaintiffs previously appealed the dismissal of the Second Commercial Complaint to the United States Court of Appeals for the Third Circuit on October 10, 2007. Several similar actions that were consolidated before Chief Judge Brown are still pending in the District Court. Those actions are currently stayed pending a decision by the court on whether they will proceed during the appeal of the dismissal of the Second Commercial Complaint and the Second Employee Benefits Complaint. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; On August&nbsp;24, 2007, the Ohio Attorney General filed a complaint in the Ohio Court of Common Pleas against AIG and a number of its subsidiaries, as well as several other broker and insurer defendants, asserting violation of Ohio&#146;s antitrust laws. The complaint, which is similar to the <I>Second Commercial Complaint,</I> alleges that AIG and the other broker and insurer defendants conspired to allocate customers, divide markets, and restrain competition in commercial lines of casualty insurance sold through the broker defendant. The complaint seeks treble damages on behalf of Ohio public purchasers of commercial casualty insurance, disgorgement on behalf of both public and private purchasers of commercial casualty insurance, as well as a $500&nbsp;per day penalty for each day of conspiratorial conduct. AIG, along with other co-defendants, moved to dismiss the complaint on November&nbsp;16, 2007. Discovery is stayed in the case pending a ruling on the motion to dismiss or until May&nbsp;15, 2008, whichever occurs first. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>SICO. </I>In July, 2005, SICO filed a complaint against AIG in the Southern District of New York, claiming that AIG had refused to provide SICO access to certain artwork and asked the court to order AIG immediately to release the property to SICO. AIG filed an answer denying SICO&#146;s allegations and setting forth defenses to SICO&#146;s claims. In addition, AIG filed counterclaims asserting breach of contract, unjust enrichment, conversion, breach of fiduciary duty, a constructive trust and declaratory judgment, relating to SICO&#146;s breach of its commitment to use its AIG shares only for the benefit of AIG and AIG employees. Fact and expert discovery has been concluded and SICO&#146;s motion for summary judgment is pending. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Regulatory Investigations.</I> Regulators from several states have commenced investigations into insurance brokerage practices related to contingent commissions and other industry wide practices as well as other broker-related conduct, such as alleged bid-rigging. In addition, various federal, state and foreign regulatory and governmental agencies are reviewing certain transactions and practices of AIG and its subsidiaries in connection with industry wide and other inquiries. AIG has cooperated, and will continue to cooperate, in producing documents and other information in response to subpoenas and other requests. On January&nbsp;29, 2008, AIG reached settlement agreements with nine states and the District of Columbia. The settlement agreements call for AIG to pay a total of $12.5&nbsp;million to be allocated among the ten jurisdictions and also require AIG to continue to maintain certain producer compensation disclosure and ongoing compliance initiatives. AIG will also continue to cooperate with these states in their ongoing investigations. AIG has not admitted liability under the settlement agreements and continues to deny the allegations. Nevertheless, AIG agreed to settle in order to avoid the expense and uncertainty of protracted litigation. The settlement agreements, which remain subject to court approvals, were reached with the Attorneys General of the States of Florida, Hawaii, Maryland, Michigan, Oregon, Texas and West Virginia, the Commonwealths of Massachusetts and Pennsylvania, and the District of Columbia, the Florida Department of Financial Services, and the Florida Office of Insurance Regulation. The agreement with the Texas Attorney General also settles allegations of anticompetitive conduct relating to AIG&#146;s relationship with Allied World Assurance Company and includes an additional settlement payment of $500,000 related thereto. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Wells Notices.</I> AIG understands that some of its employees have received Wells notices in connection with previously disclosed SEC investigations of certain of AIG&#146;s transactions or accounting practices. Under SEC procedures, a Wells notice is an indication that the SEC staff has made a preliminary decision to recommend enforcement action that provides recipients with an opportunity to respond to the SEC staff before a formal recommendation is finalized. It is possible that additional current and former employees could receive similar notices in the future as the regulatory investigations proceed. </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Effect on AIG</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In the opinion of AIG management, AIG&#146;s ultimate liability for the unresolved litigation and investigation matters referred to above is not likely to have a material adverse effect on AIG&#146;s consolidated financial condition, although it is possible that the effect would be material to AIG&#146;s consolidated results of operations for an individual reporting period. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;Commitments</B> </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B>Flight Equipment</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>At December&nbsp;31, 2007, ILFC had committed to purchase 234 new aircraft deliverable from 2008 through 2017 at an estimated aggregate purchase price of $20.1 billion. ILFC will be required to find customers for any aircraft acquired, and it must arrange financing for portions of the purchase price of such equipment. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Minimum future rental income on noncancelable operating leases of flight equipment which have been delivered at December&nbsp;31, 2007 was as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="88%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=5>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=5>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,142</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2009</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,783</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2010</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,274</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2011</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,726</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,075</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Remaining years after 2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,921</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20,921</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Flight equipment is leased, under operating leases, with remaining terms ranging from 1 to 12&nbsp;years. </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 21pt 0px 0px; COLOR: #000000" align=left><B>Lease Commitments</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and its subsidiaries occupy leased space in many locations under various long-term leases and have entered into various leases covering the long-term use of data processing equipment. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>At December&nbsp;31, 2007, the future minimum lease payments under operating leases were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="89%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=5>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=5>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>747</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2009</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>581</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2010</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>460</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2011</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>371</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>322</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Remaining years after 2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,945</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,426</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Rent expense approximated $771&nbsp;million, $657&nbsp;million, and $597&nbsp;million for the years ended December&nbsp;31, 2007, 2006, and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Other Commitments</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In the normal course of business, AIG enters into commitments to invest in limited partnerships, private equities, hedge funds and mutual funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $9.1&nbsp;billion at December&nbsp;31, 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; On June&nbsp;27, 2005, AIG entered into an agreement pursuant to which AIG agrees, subject to certain conditions, to make any payment that is not promptly paid with respect to the benefits accrued by certain employees of AIG and its subsidiaries under the SICO Plans (as discussed in Note&nbsp;19 herein). </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(c)&nbsp;Contingencies</B> </DIV> <DIV style="FONT-SIZE: 9pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B>Loss Reserves</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>Although AIG regularly reviews the adequacy of the established reserve for losses and loss expenses, there can be no assurance that AIG&#146;s ultimate loss reserves will not develop adversely and materially exceed AIG&#146;s current loss reserves. Estimation of ultimate net losses, loss expenses and loss reserves is a complex process for long-tail casualty lines of business, which include excess and umbrella liability, directors and officers liability (D&amp;O), professional liability, medical malpractice, workers compensation, general liability, products liability and related classes, as well as for asbestos and environmental exposures. Generally, actual historical loss development factors are used to project future loss development. However, there can be no assurance that future loss development patterns will be the same as in the past. Moreover, any deviation in loss cost trends or in loss development factors might not be discernible for an extended period of time subsequent to the recording of the initial loss reserve estimates for any accident year. Thus, there is the potential for reserves with respect to a number of years to be significantly affected by changes in loss cost trends or loss development factors that were relied upon in setting the reserves. These changes in loss cost trends or loss development factors could be attributable to changes in inflation, in labor and material costs or in the judicial environment, or in other social or economic phenomena affecting claims. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Synthetic Fuel Tax Credits.</I> AIG generated income tax credits as a result of investing in synthetic fuel production. Tax credits generated from the production and sale of synthetic fuel under the Internal Revenue Code were subject to an annual phase-out provision based on the average wellhead price of domestic crude oil. The price range within which the tax credits are phased-out was originally established in 1980 and is adjusted annually for inflation. Depending on the price of domestic crude oil for a particular year, all or a portion of the tax credits generated in that year might be eliminated. AIG evaluated the production levels of its synthetic fuel production facilities in light of the risk of phase-out of the associated tax credits. As a result of fluctuating domestic crude oil prices, AIG evaluated and adjusted production levels when appropriate in light of this risk. Under current legislation, the opportunity to generate additional tax credits from the production and sale of synthetic fuel expired on December&nbsp;31, 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; <I>Lease Transactions.</I> In June and August, 2007, field agents at the Internal Revenue Service (IRS) issued Notices of Proposed Adjustment (NOPAs) relating to a series of lease transactions by an AIG subsidiary. In the NOPAs, the field agents asserted that the leasing transactions were &#147;lease-in lease-out&#148; transactions described in Revenue Ruling 2002-69 and proposed adjustments to taxable income of approximately $203&nbsp;million in the aggregate for the years 1998, 1999, 2001 and 2002. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(d)&nbsp;Guarantees</B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and certain of its subsidiaries become parties to derivative financial instruments with market risk resulting from both dealer and end-user activities and to reduce currency, interest rate, equity and commodity exposures. These instruments are carried at their estimated fair values in the consolidated balance sheet. The vast majority of AIG&#146;s derivative activity is transacted by AIGFP. See also Note&nbsp;8 herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG has issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP arising from transactions entered into by AIGFP. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; SAI Deferred Compensation Holdings, Inc., a wholly owned subsidiary of AIG, has established a deferred compensation plan for registered representatives of certain AIG subsidiaries, pursuant to which participants have the opportunity to invest deferred commissions and fees on a notional basis. The value of the deferred compensation fluctuates with the value of the deferred investment alternatives chosen. AIG has provided a full and unconditional guarantee of the obligations of SAI Deferred Compensation Holdings, Inc. to pay the deferred compensation under the plan. </DIV></BODY></HTML> 12.&nbsp;Commitments, Contingencies and Guarantees In the normal course of business, various commitments and contingent liabilities are entered into by AIG false false Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 false 15 1 aig_PreferredShareholdersEquityInSubsidiaryCompaniesTextBlock aig false na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>13.&nbsp;Preferred Shareholders&#146; Equity in Subsidiary Companies</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>At December&nbsp;31, 2007, preferred shareholders&#146; equity in subsidiary companies represents preferred stocks issued by ILFC, a wholly owned subsidiary of AIG. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, the preferred stock consists of 1,000&nbsp;shares of market auction preferred stock (MAPS)&nbsp;in two series (Series&nbsp;A and B) of 500&nbsp;shares each. Each of the MAPS shares has a liquidation value of $100,000&nbsp;per share and is not convertible. The dividend rate, other than the initial rate, for each dividend period for each series is reset approximately every seven weeks (49&nbsp;days) on the basis of orders placed in an auction. During 2006, ILFC extended each of the MAPS dividend periods for three years. At December&nbsp;31, 2007, the dividend rate for Series&nbsp;A MAPS was 4.70 percent and the dividend rate for Series&nbsp;B MAPS was 5.59 percent.</DIV></BODY></HTML> 13.&nbsp;Preferred Shareholders&#146; Equity in Subsidiary Companies At December&nbsp;31, 2007, preferred shareholders&#146; equity in subsidiary companies false false No definition available. No authoritative reference available. false 16 1 aig_ShareholdersEquityAndEarningsPerShareTextBlock aig false na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>14.&nbsp;Shareholders&#146; Equity and Earnings Per Share</FONT></B> </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Shareholders&#146; Equity </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG parent depends on its subsidiaries for cash flow in the form of loans, advances, reimbursement for shared expenses, and dividends. AIG&#146;s insurance subsidiaries are subject to regulatory restrictions on the amount of dividends that can be remitted to AIG parent. These restrictions vary by jurisdiction. For example, unless permitted by the New York Superintendent of Insurance, general insurance companies domiciled in New York may not pay dividends to shareholders that, in any twelve-month period, exceed the lesser of ten percent of such company&#146;s statutory policyholders&#146; surplus or 100&nbsp;percent of its &#147;adjusted net investment income,&#148; as defined. Generally, less severe restrictions applicable to both general and life insurance companies exist in most of the other states in which AIG&#146;s insurance subsidiaries are domiciled. Certain foreign jurisdictions have restrictions that could delay or limit the remittance of dividends. There are also various local restrictions limiting cash loans and advances to AIG by its subsidiaries. Largely as a result of these restrictions, approximately 81&nbsp;percent of the aggregate equity of AIG&#146;s consolidated subsidiaries was restricted from immediate transfer to AIG parent at December&nbsp;31, 2007. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Dividends declared per common share were $0.77, $0.65, and $0.63 in 2007, 2006, and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; During 2007 and 2005, AIG repurchased 76&nbsp;million and 2&nbsp;million shares of its common stock, respectively, at a total cost of $5.1&nbsp;billion and $165&nbsp;million, respectively. The average price paid per share for repurchased shares was $66.84 and $66.46 in 2007 and 2005, respectively. During 2006, AIG did not purchase any shares of its common stock under its existing share repurchase authorization. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, there were 6,000,000&nbsp;shares of AIG&#146;s $5&nbsp;par value serial preferred stock authorized, issuable in series, none of which were outstanding. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Earnings Per Share </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>Basic earnings per share is based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. Diluted earnings per share is based on those shares used in basic earnings per share plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding, adjusted to reflect all stock dividends and stock splits. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The computation of earnings per share for the years ended December&nbsp;31, 2007, 2006 and 2005 was as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="58%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions, except per share data)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Numerator for earnings per share:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,014</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,477</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income applicable to common stock for basic EPS</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,048</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,477</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest on contingently convertible bonds, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income applicable to common stock for diluted EPS</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>14,058</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,488</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(34</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income before cumulative effect of an accounting change applicable to common stock for diluted EPS</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,024</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,488</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Denominator for earnings per share:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average shares outstanding used in the computation of EPS:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Common stock issued</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,751</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,751</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,751</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Common stock in treasury</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(179</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(153</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(155</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred shares</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>13</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average shares outstanding&nbsp;&#151; basic</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,585</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,608</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,597</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Incremental shares from potential common stock:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average number of shares arising from outstanding employee stock plans (treasury stock method)<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>13</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Contingently convertible bonds</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average shares outstanding&nbsp;&#151; diluted<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2,598</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,623</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,627</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Earnings per share:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Basic:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.40</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5.38</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4.03</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.40</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5.39</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4.03</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Diluted:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.39</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5.35</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3.99</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.39</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5.36</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3.99</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Certain shares arising from employee stock plans were not included in the computation of diluted earnings per share if the exercise price of the options exceeded the average market price and were antidilutive. The number of shares excluded were 8&nbsp;million, 13&nbsp;million and 19&nbsp;million for the years ended December&nbsp;31, 2007, 2006 and 2005, respectively.</I></TD></TR></TBODY></TABLE></BODY></HTML> 14.&nbsp;Shareholders&#146; Equity and Earnings Per Share Shareholders&#146; Equity AIG parent depends on its subsidiaries for cash flow in the form of false false No definition available. No authoritative reference available. false 17 1 us-gaap_StatutoryAccountingPracticesDisclosureTextBlock us-gaap true na duration string Discloses how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>15.&nbsp;Statutory Financial Data</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Statutory surplus and net income for General Insurance and Life Insurance&nbsp;&amp; Retirement Services operations in accordance with statutory accounting practices were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="56%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><B>Years Ended December&nbsp;31,</B></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Statutory surplus<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">General Insurance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>37,705</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>32,665</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>24,508</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life Insurance&nbsp;&amp; Retirement Services</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>33,212</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35,058</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,739</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Statutory net income<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)(b)</SUP></I>:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">General Insurance<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>8,018</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,010</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,713</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Life Insurance&nbsp;&amp; Retirement Services<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,465</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,088</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,762</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>Statutory surplus and net income with respect to foreign operations are estimated at November&nbsp;30. The basis of presentation for branches of AIA is the Hong Kong statutory filing basis. The basis of presentation for branches of ALICO is the U.S. statutory filing basis. AIG Star Life, AIG Edison Life, Nan Shan and Philamlife are estimated based on their respective local country filing basis.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>Includes realized capital gains and losses and taxes.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>Includes catastrophe losses, net of tax, of $177&nbsp;million and $1.9&nbsp;billion in 2007 and 2005, respectively.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s insurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The differences between statutory financial statements and financial statements prepared in accordance with U.S.&nbsp;GAAP vary between domestic and foreign by jurisdiction. The principal differences are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, assets and liabilities are presented net of reinsurance, policyholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, 2006 and 2005, statutory capital of AIG&#146;s insurance subsidiaries exceeded minimum company action level requirements. In 2005, AIG nonetheless contributed an additional $750&nbsp;million of capital into American Home Assurance Company (American Home) effective September&nbsp;30, 2005 and contributed a further $2.25&nbsp;billion of capital in February 2006 for a total of approximately $3&nbsp;billion of capital into Domestic General Insurance subsidiaries effective December&nbsp;31, 2005. </DIV></BODY></HTML> 15.&nbsp;Statutory Financial Data Statutory surplus and net income for General Insurance and Life Insurance&nbsp;&amp; Retirement Services operations in false false Discloses how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact should be disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 60 -Subparagraph h Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-5 -Paragraph 8, 9 false 18 1 us-gaap_FairValueDisclosuresTextBlock us-gaap true na duration string This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>16.&nbsp;Fair Value of Financial Instruments</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>FAS&nbsp;107, &#147;Disclosures about Fair Value of Financial Instruments&#148; (FAS&nbsp;107), requires disclosure of fair value information about financial instruments for which it is practicable to estimate such fair value. FAS&nbsp;107 excludes certain financial instruments, including those related to insurance contracts and lease contracts. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments traded in other than active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction and general market conditions. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Fixed maturities, equity securities, securities available for sale, trading securities and securities sold under agreements to repurchase:</I> AIG maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. AIG obtains market price data to value financial instruments whenever such information is available. Market price data generally is obtained from market exchanges or dealer quotations. The types of instruments valued based on market price data include G-7 government and agency securities, equities listed in active markets, and investments in publicly traded mutual funds with quoted market prices. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG estimates the fair value of fixed income instruments not traded in active markets by referring to traded securities with similar attributes and using a matrix pricing methodology. This methodology considers such factors as the issuer&#146;s industry, the security&#146;s rating and tenor, its coupon rate, its position in the capital structure of the issuer, and other relevant factors. The types of fixed income instruments not traded in active markets include non-G-7 government securities, municipal bonds, certain hybrid financial instruments, most investment-grade and high-yield corporate bonds, and most mortgage- and asset-backed products. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG initially estimates the fair value of equity instruments not traded in active markets by reference to the transaction price. This valuation is adjusted only when changes to inputs and assumptions are corroborated by evidence such as transactions in similar instruments, completed or pending third-party transactions in the underlying investment or comparable entities, subsequent rounds of financing, recapitalizations and other transactions across the capital structure, offerings in the equity capital markets, and changes in financial ratios or cash flows. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; For equity and fixed income instruments that are not traded in active markets or that are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and/or non-transferability, and such adjustments generally are based on available market evidence. In the absence of such evidence, management&#146;s best estimate is used. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I><FONT color=#002868>Unrealized gain (loss)&nbsp;on swaps, options and forward transactions:</FONT></I> Unrealized gain (loss)&nbsp;on swaps, options and forward transactions (derivative assets and liabilities) can be exchange-traded or traded over the counter (OTC). AIG generally values exchange-traded derivatives within portfolios using models that calibrate to market clearing levels and that eliminate timing differences between the closing price of the exchange-traded derivatives and their underlying instruments. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in, the instrument as well as the availability of pricing information in the market. AIG generally uses similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be verified and model selection does not involve significant management judgment. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Certain OTC derivatives trade in less liquid markets with limited pricing information, and the determination of fair value for these derivatives is inherently more difficult. When AIG does not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, transaction price is initially used as the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so that the model value at inception equals the transaction price. Subsequent to initial recognition, AIG updates valuation inputs when corroborated by evidence such as similar market transactions, third-party pricing services and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management&#146;s best estimate is used. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Mortgage and other loans receivable:</I> When practical, the fair values of loans on real estate and collateral loans were estimated using discounted cash flow calculations based upon AIG&#146;s current incremental lending rates for similar type loans. The fair values of the policy loans were not calculated as AIG believes it would have to expend excessive costs for the benefits derived. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Finance receivables:</I> Fair values were estimated using discounted cash flow calculations based upon the weighted average rates currently being offered for similar finance receivables. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Securities lending invested collateral and securities lending payable:</I> Securities lending collateral are floating rate fixed maturity securities recorded at fair value. Fair values were based upon quoted market prices or internally developed models consistent with the methodology for other fixed maturity securities. The contract values of securities lending payable approximate fair value as these obligations are short-term in nature. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Spot commodities:</I> Fair values were based on current market prices of reference spot futures contracts traded on exchanges. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Cash, short-term investments, trade receivables, trade payables, securities purchased (sold)&nbsp;under agreements to resell (repurchase), commercial paper and extendible commercial notes:</I> The carrying values of these assets and liabilities approximate fair values because of the relatively short period of time between origination and expected realization. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Other invested assets:</I> Consisting principally of hedge funds and limited partnerships. Fair values are determined based on the net asset values provided by the general partner or manager of each investment. AIG obtains the fair value of its investments in limited partnerships and hedge funds from information provided by the general partner or manager of these investments, the accounts of which generally are audited on an annual basis. The transaction price is used as the best estimate of fair value at inception. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Policyholders&#146; contract deposits:</I> Fair values were estimated using discounted cash flow calculations based upon interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Securities and spot commodities sold but not yet purchased:</I> The carrying amounts for the securities and spot commodities sold but not yet purchased approximate fair values. Fair values for securities and spot commodities sold short were based on current market prices. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Trust deposits and deposits due to banks and other depositors:</I> To the extent certain amounts are not demand deposits or certificates of deposit which mature in more than one year, fair values were not calculated as AIG believes it would have to expend excessive costs for the benefits derived. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Commercial paper and extendible commercial notes:</I> The carrying amount approximates fair value. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><I>Long-term borrowings:</I> When practical, the fair values of these obligations were estimated using discounted cash flow calculations based upon AIG&#146;s current incremental borrowing rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The carrying values and fair values of AIG&#146;s financial instruments at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="45%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7><B><FONT color=#002868>2007</FONT></B></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>2006</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Carrying</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Fair</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Carrying</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Fair</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assets:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fixed maturities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>428,935</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>429,511</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>419,142</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>419,859</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>41,646</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>41,646</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,650</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,650</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Mortgage and other loans receivable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>33,727</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>34,123</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,418</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28,655</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities available for sale</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40,305</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40,305</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,205</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,205</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Trading securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,197</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,197</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,031</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,031</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Spot commodities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>238</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>238</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>220</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>220</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unrealized gain on swaps, options and forward transactions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>16,442</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>16,442</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,252</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,252</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Trade receivables</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,467</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,467</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,317</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,317</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities purchased under agreements to resell</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,950</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,950</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,291</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,291</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Finance receivables, net of allowance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>31,234</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28,693</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>29,573</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26,712</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities lending invested collateral</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>75,662</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>75,662</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69,306</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69,306</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other invested assets<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>57,134</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>57,979</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>42,111</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>42,418</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Short-term investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,351</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51,351</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,483</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,284</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,284</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,590</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,590</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Policyholders&#146; contract deposits</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>258,459</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>259,045</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>248,264</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>243,570</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities sold under agreements to repurchase</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,331</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,048</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,677</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19,677</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Trade payables</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>10,568</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>10,568</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,174</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,174</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities and spot commodities sold but not yet purchased</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,709</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,709</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,076</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,076</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unrealized loss on swaps, options and forward transactions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,613</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,613</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,401</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,401</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Trust deposits and deposits due to banks and other depositors</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,903</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,986</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,249</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,261</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Commercial paper and extendible commercial notes</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,114</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>13,114</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,363</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,363</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Long-term borrowings</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>162,935</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>165,064</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>135,316</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>135,605</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Securities lending payable</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>81,965</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>81,965</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>70,198</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>70,198</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>(a)&nbsp;The carrying value of all other financial instruments approximates fair value.</I> </DIV> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left><I>(b)&nbsp;Excludes aircraft asset investments held by non-Financial Services subsidiaries.</I> </DIV></BODY></HTML> 16.&nbsp;Fair Value of Financial Instruments FAS&nbsp;107, &#147;Disclosures about Fair Value of Financial Instruments&#148; (FAS&nbsp;107), requires false false This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 false 19 1 us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock us-gaap true na duration string Disclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>17.&nbsp;Share-based Employee Compensation Plans</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>During the year ended December&nbsp;31, 2007, AIG employees had received compensation pursuant to awards under seven different share-based employee compensation plans: <I>(i)&nbsp;</I>AIG 1999 Stock Option Plan, as amended (1999 Plan); <I>(ii)&nbsp;</I>AIG 1996 Employee Stock Purchase Plan, as amended (1996 Plan); <I>(iii)&nbsp;</I>AIG 2002 Stock Incentive Plan, as amended (2002 Plan) under which AIG has issued time-vested restricted stock units (RSUs) and performance restricted stock units (performance RSUs); <I>(iv)&nbsp;</I>AIG 2007 Stock Incentive Plan, as amended (2007 Plan); <I>(v)&nbsp;</I>SICO&#146;s Deferred Compensation Profit Participation Plans (SICO Plans); <I>(vi)&nbsp;</I>AIG&#146;s 2005-2006 Deferred Compensation Profit Participation Plan (AIG DCPPP) and <I>(vii)&nbsp;</I>the AIG Partners Plan. The AIG DCPPP was adopted as a replacement for the SICO Plans for the 2005-2006 period, and the AIG Partners Plan replaced the AIG DCPPP. Share-based employee compensation earned under the AIG DCPPP was granted as time-vested RSUs under the 2002 Plan. Share-based employee compensation awarded under the AIG Partners Plan was granted as performance-based RSUs under the 2002 Plan, except for the December&nbsp;2007 grant which was made under the 2007&nbsp;Plan. All future grants will be made under the 2007 Plan. Although awards granted under all the plans described above remained outstanding at December&nbsp;31, 2007, future grants of options, RSUs and performance RSUs can be made only under the 2007 Plan. AIG currently settles share option exercises and other share awards to participants by issuing shares it previously acquired and holds in its treasury account, except for share awards made by SICO, which are settled by SICO. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2006 and for prior years, AIG&#146;s non-employee directors received share-based compensation in the form of options granted pursuant to the 1999 Plan and grants of AIG common stock with delivery deferred until retirement from the Board, pursuant to the AIG Director Stock Plan, which was approved by the shareholders at the 2004 Annual Meeting of Shareholders and which is now a subplan under the 2007 Plan. From and after May&nbsp;16, 2007, non-employee directors receive deferred stock units (DSUs) under the 2007 Plan with delivery deferred until retirement from the Board. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; From January&nbsp;1, 2003 through December&nbsp;31, 2005, AIG accounted for share-based payment transactions with employees under FAS&nbsp;123, &#147;Accounting for Stock-Based Compensation.&#148; Share-based employee compensation expense from option awards was not recognized in the consolidated statement of income in prior periods. Effective January&nbsp;1, 2006, AIG adopted the fair value recognition provisions of FAS&nbsp;123R. FAS&nbsp;123R requires that companies use a fair value method to value share-based payments and recognize the related compensation expense in net earnings. AIG adopted FAS&nbsp;123R using the modified prospective application method, and accordingly, financial statement amounts for the prior periods presented have not been restated to reflect the fair value method of expensing share-based compensation under FAS&nbsp;123R. The modified prospective application method requires recognition of the fair value of share-based compensation for shares subscribed for or granted on or after January&nbsp;1, 2006 and all previously granted but unvested awards at January&nbsp;1, 2006. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The adoption of FAS&nbsp;123R resulted in share-based compensation expense of approximately $17&nbsp;million during 2006, related to awards that were accounted for under Accounting Principles Board Opinion&nbsp;25, &#147;Accounting for Stock Issued to Employees.&#148; FAS&nbsp;123R also requires AIG to estimate forfeitures in calculating the expense relating to share-based compensation, rather than recognizing these forfeitures and corresponding reductions in expense as they occur. The cumulative effect of adoption of $46&nbsp;million was recorded as a cumulative effect of an accounting change, net of tax. FAS&nbsp;123R requires AIG to reflect the cash savings resulting from excess tax benefits in its financial statements as cash flow from financing activities, rather than as cash flow from operating activities as in prior periods. The amount of this excess tax benefit in 2007 and 2006 was $26.1&nbsp;million and $27.9&nbsp;million, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Included in AIG&#146;s consolidated statement of income for the years ended December&nbsp;31, 2007 and 2006 was pre-tax share-based compensation expense of $275&nbsp;million ($216&nbsp;million after tax), and $353&nbsp;million ($326&nbsp;million after tax), respectively. Share-based compensation expense in 2006 included a one-time compensation cost of approximately $54&nbsp;million related to the Starr tender offer and various out of period adjustments totaling $61&nbsp;million, primarily relating to stock splits and other miscellaneous items for the SICO Plans. See Note&nbsp;19 herein for a discussion of the Starr tender offer. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>1999 Stock Option Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The 1999 Plan was approved by the shareholders at the 2000 Annual Meeting of Shareholders, with certain amendments approved at the 2003 Annual Meeting of Shareholders. The 1999 Plan superseded the 1991 Employee Stock Option Plan (the 1991 Plan), although outstanding options granted under the 1991 Plan continue until exercise or expiration. Options granted under the 1999 Plan generally vest over four years (25&nbsp;percent vesting per year) and expire 10&nbsp;years from the date of grant. The 2007 Plan supersedes the 1999 Plan. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, there were no&nbsp;shares reserved for future grants under the 1999 Plan and 36,363,769&nbsp;shares reserved for issuance under the 1999 and 1991 Plans. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Deferrals </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>At December&nbsp;31, 2007, AIG was obligated to issue 12,521,342&nbsp;shares in connection with previous exercises of options with delivery deferred. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Valuation </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG uses a binomial lattice model to calculate the fair value of stock option grants. A more detailed description of the valuation methodology is provided below. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following weighted-average assumptions were used for stock options granted in 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="65%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>2006</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>2005</B></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected annual dividend yield<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.39%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.92%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.71%</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected volatility<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>32.82%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>23.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27.30%</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Risk-free interest rate<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.08%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.61%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.17%</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected term<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(d)</SUP></I></DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>7&nbsp; years</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7&nbsp; years</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)</I></TD> <TD align=left><I>The dividend yield is determined at the grant date.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)</I></TD> <TD align=left><I>In 2007, expected volatility is the average of historical volatility (based on seven years of daily stock price changes) and the implied volatility of actively traded options on AIG shares.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)</I></TD> <TD align=left><I>The interest rate curves used in the valuation model were the U.S.&nbsp;Treasury STRIP rates with terms from 3&nbsp;months to 10&nbsp;years.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(d)</I></TD> <TD align=left><I>The contractual term of the option is generally 10&nbsp;years with an expected term of 7&nbsp;years calculated based on an analysis of historical employee exercise behavior and employee turnover (post-vesting terminations). The early exercise rate is a function of time elapsed since the grant. Fifteen years of historical data were used to estimate the early exercise rate.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 6.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=right>&nbsp;</DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Additional information with respect to AIG&#146;s stock option plans at December&nbsp;31, 2007, and changes for the year then ended, were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="46%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=9>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=9>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Average</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=9>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Remaining</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Aggregate</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=5>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted Average</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Contractual</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Intrinsic Values</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left>Options:</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Shares</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Exercise Price</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Life</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>(in millions)</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Outstanding at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47,655,720</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>57.99</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Granted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,738,530</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>57.43</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Exercised*</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(12,308,493</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>40.00</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Forfeited or expired</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(721,988</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>69.00</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Outstanding at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36,363,769</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>63.83</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>59</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Options exercisable at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30,703,527</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>63.98</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>57</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Weighted average fair value per share of options granted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20.97</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*</I></TD> <TD align=left><I>Includes options with respect to 8,489,584&nbsp;shares exercised with delivery deferred, resulting in obligations to issue 4,138,713&nbsp;shares.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Vested and <FONT style="WHITE-SPACE: nowrap">expected-to</FONT>-vest options at December&nbsp;31, 2007, included in the table above, totaled 34,349,762, with a weighted average exercise price of $64.14, a weighted average contractual life of 4.46&nbsp;years and an aggregate intrinsic value of $57&nbsp;million. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, total unrecognized compensation cost (net of expected forfeitures) was $100&nbsp;million and $3&nbsp;million related to non-vested share-based compensation awards granted under the 1999 Plan and the 1996 Plan, respectively, with blended weighted average periods of 1.38&nbsp;years and 0.41&nbsp;years, respectively. The cost of awards outstanding under these plans at December&nbsp;31, 2007 is expected to be recognized over approximately four years and one year, respectively, for the 1999 Plan and the 1996 Plan. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The intrinsic value of options exercised during 2007 was approximately $360&nbsp;million. The fair value of options vesting during 2007 was approximately $63&nbsp;million. AIG received $482&nbsp;million and $104&nbsp;million in cash during 2007 and 2006, respectively, from the exercise of stock options. The tax benefits realized as a result of stock option exercises were $16&nbsp;million and $35&nbsp;million in 2007 and 2006, respectively. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>2002 Stock Incentive Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The 2002 Plan was adopted at the 2002 Annual Meeting of shareholders and amended and restated by AIG&#146;s Board of Directors on September&nbsp;18, 2002. During 2007 and 2006, 179,106 and 6,836,785 RSUs, respectively, including performance RSUs, were granted under the 2002 Plan. Because the 2002 Plan has been superseded by the 2007 Plan, there were no shares reserved for issuance in connection with future awards at December&nbsp;31, 2007. Substantially all time-vested RSUs granted under the 2002 Plan vest on the fourth anniversary of the date of grant. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>2007 Stock Incentive Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The 2007 Plan was adopted at the 2007 Annual Meeting of shareholders and amended and restated by AIG&#146;s Board of Directors on November&nbsp;14, 2007. The 2007 Plan supersedes the 1999 Plan and the 2002 Plan. During 2007, 7,121,252&nbsp;RSUs, including performance RSUs were granted under the 2007 Plan. Each RSU, performance RSU and DSU awarded reduces the number of shares available for future grants by 2.9&nbsp;shares. At December&nbsp;31, 2007, there were 157,562,672&nbsp;shares reserved for issuance under the 2007 Plan. A significant majority of the time-vested RSUs granted in 2007 under the 2007 Plan vest on the fourth anniversary of the date of grant. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Non-Employee Director Stock Awards </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The methodology used for valuing employee stock options is also used to value director stock options. Director stock options vest one year after the grant date, but are otherwise the same as employee stock options. Commencing in 2007, directors no longer receive awards of options. Options with respect to 40,000&nbsp;shares and 32,500&nbsp;shares were granted during 2006 and 2005, respectively. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2007, AIG granted to directors 22,542&nbsp;DSUs, including DSUs representing dividend-equivalent amounts. AIG also granted to directors 6,375&nbsp;shares, 14,000&nbsp;shares and 6,250&nbsp;shares, with delivery deferred, during 2007, 2006 and 2005, respectively, under the Director Stock Plan. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Employee Stock Purchase Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG&#146;s 1996 Plan provides that eligible employees (those employed at least one year) may receive privileges to purchase up to an aggregate of 10,000,000&nbsp;shares of AIG common stock, at a price equal to 85&nbsp;percent of the fair market value on the date of the grant of the purchase privilege. Purchase privileges are granted quarterly and are limited to the number of whole shares that can be purchased on an annual basis by an amount equal to the lesser of 10&nbsp;percent of an employee&#146;s annual salary or $10,000. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>SICO Plans </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The SICO Plans provide that shares of AIG common stock currently held by SICO are set aside for the benefit of the participant and distributed upon retirement. The SICO Board of Directors currently may permit an early payout of shares under certain circumstances. Prior to payout, the participant is not entitled to vote, dispose of or receive dividends with respect to such shares, and shares are subject to forfeiture under certain conditions, including but not limited to the participant&#146;s termination of employment with AIG prior to normal retirement age. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Historically, SICO&#146;s Board of Directors could elect to pay a participant cash in lieu of shares of AIG common stock. On December&nbsp;9, 2005, SICO notified participants that essentially all subsequent distributions would be made only in shares, and not cash. At that date, AIG modified its accounting for the SICO Plans from variable to fixed measurement accounting. Variable measurement accounting is used for those few awards for which cash elections had been made prior to March 2005. At December&nbsp;9, 2005, there were 12,650,292 non-vested AIG shares under the SICO Plans with a weighted average fair value per share of $61.92. The SICO Plans are also described in Note&nbsp;19 herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Although none of the costs of the various benefits provided under the SICO Plans have been paid by AIG, AIG has recorded compensation expense for the deferred compensation amounts payable to AIG employees by SICO, with an offsetting amount credited to additional paid-in capital reflecting amounts deemed contributed by SICO. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; A significant portion of the awards under the SICO Plans vest the year after the participant reaches age&nbsp;65, provided that the participant remains employed by AIG through age 65. The portion of the awards for which early payout is available vest on the applicable payout date. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>AIG DCPPP </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In September 2005, AIG adopted the AIG DCPPP to provide share-based compensation to key AIG employees, including senior executive officers. The AIG DCPPP was modeled on the SICO Plans. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The AIG DCPPP contingently allocated a fixed number of time-vested RSUs to each participant if AIG&#146;s cumulative adjusted earnings per share in 2005 and 2006 exceeded that in 2003 and 2004 as determined by AIG&#146;s Compensation Committee. This goal was met, and pursuant to the terms of the DCPPP Plan, 3,696,836&nbsp;time-vested RSUs were awarded in 2007. These RSUs vest in three pre-retirement installments and a final retirement installment&nbsp;at age&nbsp;65. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, RSU awards with respect to 3,272,268&nbsp;shares remained outstanding. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>AIG Partners Plan </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>On June&nbsp;26, 2006, AIG&#146;s Compensation Committee approved two grants under the AIG Partners Plan. The first grant had a performance period that ran from January&nbsp;1, 2006 through December&nbsp;31, 2007. The second grant has a performance period that runs from January&nbsp;1, 2007 through December&nbsp;31, 2008. In December 2007, the Compensation Committee approved a grant with a performance period from January&nbsp;1, 2008 through December&nbsp;31, 2009. The Compensation Committee will approve the performance metrics for this grant in the first quarter of 2008. All grants vest 50&nbsp;percent on the fourth and sixth anniversaries of the first day of the related performance period. The Compensation Committee approved the performance metrics for the first two grants prior to the date of grant. The measurement of the first two grants is deemed to have occurred on June&nbsp;26, 2006 when there was mutual understanding of the key terms and conditions of the first two grants. In 2007, no compensation cost was recognized, and compensation cost recognized in 2006 was reversed, for the first grant under the Partners Plan because the performance threshold for these awards was not met. </DIV> <DIV style="FONT-SIZE: 12pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><FONT color=#002868>Valuation </FONT></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The fair value of each award granted under the plans described above is based on the closing price of AIG stock on the date of grant. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents a summary of shares relating to outstanding awards unvested under the foregoing plans at December&nbsp;31, 2007, and changes for the year then ended<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></FONT></B><FONT color=#002868>: </FONT></DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 7.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="20%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=40>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=18>Number of Shares</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=18>Weighted Average Grant-Date Fair Value</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Total</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>Time-vested</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Partners</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>SICO</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Time-vested</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Partners</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>SICO</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>RSUs</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>DCPPP</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plan</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plan</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>RSUs</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>DCPPP</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plan</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=40>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unvested at January&nbsp;1, 2007</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,181,595</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,590,622</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,607,040</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,379,257</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,443,772</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$66.56</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$52.09</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$56.50</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>59.88</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>61.72</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Granted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,752,738</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,547,620</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>7,300,358</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>57.90</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>53.93</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>56.51</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Vested</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(168,214</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(196,690</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(550</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(365,454</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,691,306</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>63.82</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61.44</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>66.97</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>62.55</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>64.18</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Forfeited</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(422,431</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(173,472</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,212,585</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,808,488</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(282,657</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>65.34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>53.25</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>56.83</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>58.47</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>59.93</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=41>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unvested at December&nbsp;31, 2007</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,343,688</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,220,460</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,941,525</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>20,505,673</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,469,809</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$63.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$54.53</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$55.08</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>59.36</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>61.27</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=41>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Options and DSUs awarded under the 2007 Plan are not included. For the AIG DCPPP, includes all incremental shares granted or to be granted.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The total unrecognized compensation cost (net of expected forfeitures) related to non-vested share-based compensation awards granted under the 2002 Plan, the 2007 Plan, the AIG DCPPP, and the SICO Plans at December&nbsp;31, 2007 and the blended weighted-average periods over which those costs are expected to be recognized at December&nbsp;31, 2007 are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="66%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="13%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Blended</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Unrecognized</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Weighted-</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Compensation</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Average</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Cost</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Period</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=right><I>(in millions)</I></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Time-vested RSUs - 2002 Plan</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$218</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.35&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Time-vested RSUs - 2007 Plan</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$209</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.05&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG DCPPP</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$146</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.47&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total AIG Plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$573</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.65&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total SICO Plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>$249</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.93&nbsp; years</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>The total cost for awards outstanding at December&nbsp;31, 2007 under the 2002 Plan, the 2007 Plan, the AIG DCPPP and the SICO Plans is expected to be recognized over approximately 4&nbsp;years, 4&nbsp;years, 32&nbsp;years and 32&nbsp;years, respectively. </DIV></BODY></HTML> 17.&nbsp;Share-based Employee Compensation Plans During the year ended December&nbsp;31, 2007, AIG employees had received compensation pursuant to awards false false Disclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 false 20 1 us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock us-gaap true na duration string Description containing the entire pension and other postretirement benefits disclosure as a single block of text. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>18.&nbsp;Employee Benefits</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Pension Plans</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG, its subsidiaries and certain affiliated companies, offer various defined benefit plans to eligible employees based on either completion of a specified period of continuous service or date of hire, subject to age limitations. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG&#146;s U.S. retirement plan is a qualified, noncontributory defined benefit plan which is subject to the provisions of ERISA. U.S. employees who are employed by a participating company, have attained age 21 and completed twelve months of continuous service are eligible to participate in this plan. Employees generally vest after 5&nbsp;years of service. Unreduced benefits are paid to retirees at normal retirement (age 65) and are based upon a percentage of final average compensation multiplied by years of credited service, up to 44&nbsp;years. Non-U.S. defined benefit plans are generally either based on the employee&#146;s years of credited service and compensation in the years preceding retirement, or on points accumulated based on the employee&#146;s job grade and other factors during each year of service. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In 2007, AIG acquired the outstanding minority interest of 21st Century. Assets, obligations and costs with respect to 21st Century&#146;s plans are included herein. The assumptions used by 21st Century in its plans were not significantly different from those used by AIG in AIG&#146;s U.S. plans. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG also sponsors several unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by AIG&#146;s other retirement plans. These include the AIG Excess Retirement Income Plan, which provides a benefit equal to the reduction in benefits payable to certain employees under the AIG U.S. retirement plan as a result of federal tax limitations on compensation and benefits payable, and the Supplemental Executive Retirement Plan (Supplemental Plan), which provides additional retirement benefits to designated executives. Under the Supplemental Plan, an annual benefit accrues at a percentage of final average pay multiplied by each year of credited service, not greater than 60&nbsp;percent of final average pay, reduced by any benefits from the current and any predecessor retirement plans (including the AIG Excess Retirement Income Plan and any comparable plans), Social Security, if any, and from any qualified pension plan of prior employers. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Postretirement Plans</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and its subsidiaries also provide postretirement medical care and life insurance benefits in the U.S.&nbsp;and in certain <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>countries. Eligibility in the various plans is generally based upon completion of a specified period of eligible service and attaining a specified age. Overseas, benefits vary by geographic location. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; U.S.&nbsp;postretirement medical and life insurance benefits are based upon the employee electing immediate retirement and having a minimum of ten years of service. Medical benefits are contributory, while the life insurance benefits are non-contributory. Retiree medical contributions vary with age and length of service and range from requiring no cost for pre-1989 retirees to requiring actual premium payments reduced by certain credits for post-1993 retirees. These contributions are subject to adjustment annually. Other cost sharing features of the medical plan include deductibles, coinsurance and Medicare coordination and a lifetime maximum benefit of $2&nbsp;million. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents the funded status of the plans, reconciled to the amount reported in the consolidated balance sheet at December&nbsp;31, 2007 and 2006. The measurement date for some of the <FONT style="WHITE-SPACE: nowrap">non-U.S.</FONT> defined benefit pension and postretirement plans is November&nbsp;30, consistent with the fiscal year end of the sponsoring companies. For all other plans, measurement occurs as of December&nbsp;31, 2007.</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="28%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=14>Pension</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=14>Postretirement<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(a)</SUP></I></TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>Non-U.S.&nbsp;Plans<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(b)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>U.S.&nbsp;Plans<I><SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">(c)</SUP></I></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=33>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Change in projected benefit obligation:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Benefit obligation, beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,578</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1,351</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,079</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,131</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>53</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>43</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>252</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>205</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Service cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>90</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>78</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>130</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>11</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>36</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>186</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>169</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>15</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Participant contributions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Actuarial (gain)&nbsp;loss</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(12</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(40</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(159</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(245</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Plan amendments and mergers</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Benefits paid:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(36</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(28</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(11</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(18</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(16</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Plan assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(43</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(27</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(91</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(84</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of foreign currency fluctuation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>78</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>71</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>38</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>136</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(12</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Projected benefit obligation, end of year</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,745</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1,578</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,156</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,079</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>79</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>53</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>257</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>252</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Change in plan assets:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fair value of plan assets, at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>850</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>699</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,760</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>2,561</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Actual return on plan assets, net of expenses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>36</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>33</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>162</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>282</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG contributions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>87</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>69</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>309</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>16</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Participant contributions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Benefits paid:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">AIG assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(36</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(28</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(11</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(10</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(18</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(16</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Plan assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(43</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(27</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(91</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(84</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of foreign currency fluctuation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>51</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>41</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>62</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Fair value of plan assets, end of year</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>952</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>850</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,129</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>2,760</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Funded status, end of year</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(793</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(728</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(27</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(319</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(79</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(257</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(252</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Amounts recognized in the consolidated balance sheet:</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>18</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>228</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(821</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(746</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(255</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(319</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(79</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(257</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(252</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Total amounts recognized</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(793</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(728</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(27</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(319</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(79</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(53</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(257</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>(252</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Amounts recognized in Accumulated other comprehensive income (loss):</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net loss</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>242</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>256</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>513</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>687</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Prior service cost (credit)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(67</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(72</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(20</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>23</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B>Total amounts recognized</B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>175</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>184</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>511</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>667</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>7</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>25</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=34>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>(a)&nbsp;</I></TD> <TD align=left><I>AIG does not currently fund postretirement benefits.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(b)&nbsp;</I></TD> <TD align=left><I>Includes unfunded plans for which the aggregate pension benefit obligation was $559&nbsp;million and $494&nbsp;million at December 2007, and 2006, respectively. For 2007 and 2006, approximately 83% pertain to Japanese plans, which are not required by local regulation to be funded. The projected benefit obligation for these plans total $464&nbsp;million and $414&nbsp;million, respectively.</I></TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><I>(c)&nbsp;</I></TD> <TD align=left><I>Includes non-qualified unfunded plans, for which the aggregate projected benefit obligation was $240&nbsp;million and $228&nbsp;million at December 2007 and 2006, respectively.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The accumulated benefit obligations for both <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>and U.S.&nbsp;pension benefit plans at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="69%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="8%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Non-U.S.&nbsp;pension benefit plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B>1,504</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,384</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.&nbsp;pension benefit plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,752</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,689</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets and in which the accumulated benefit obligation was in excess of the related plan assets at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="28%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=32>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=14>PBO exceeds fair value of plan assets</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=14>ABO exceeds fair value of plan assets</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=14>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=32>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Projected benefit obligation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,676</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1,486</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>368</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>3,079</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,415</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,465</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>240</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>240</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Accumulated benefit obligation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,462</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,323</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>317</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,689</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,277</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1,311</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>206</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>204</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Fair value of plan assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>855</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>740</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>113</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2,760</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>652</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>723</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=33>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in Accumulated other comprehensive income (loss) with respect to the defined benefit pension plans and other postretirement benefit plans for the year ended December&nbsp;31, 2007 and 2006 (no amounts related to the adoption of FAS&nbsp;158 were recognized in Accumulated other comprehensive income (loss) for the year ended 2005):</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="27%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=49>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=22>Pension</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=22>Postretirement</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=22>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=22>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=10>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=10>U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=10>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=10>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=10>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=10>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=10>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2005</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2005</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2005</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=49>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Components of net periodic benefit cost:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Service cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>90</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>78</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>71</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>130</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>111</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>4</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>4</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>11</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>5</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Interest cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>36</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>32</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>186</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>169</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>153</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>2</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>15</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>11</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>11</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected return on assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(36</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(28</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(21</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(216</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(201</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(180</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amortization of prior service cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(10</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(9</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(10</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(3</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>(3</FONT></TD> <TD vAlign=bottom noWrap align=left><FONT color=#002868>)</FONT></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(6</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(6</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Amortization of transitional obligation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Recognition of net actuarial (gains)/losses</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>16</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>21</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>43</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>75</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>55</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>7</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=50>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net periodic benefit cost</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>105</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>95</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>101</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>159</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>176</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>137</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>24</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>11</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=50>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total recognized in Accumulated other comprehensive income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(10</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>38</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(155</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>24</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(7</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>&#151;</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=50>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total recognized in net periodic benefit cost and other comprehensive income</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>95</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>133</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>101</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>200</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>137</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>6</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>6</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>17</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>11</FONT></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>10</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=50>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The estimated net loss and prior service credit that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $31&nbsp;million and $11&nbsp;million, respectively, for AIG&#146;s combined defined benefit pension plans. For the defined benefit postretirement plans, the estimated amortization from Accumulated other comprehensive income for net loss, prior service credit and transition obligation that will be amortized into net periodic benefit cost over the next fiscal year will be less than $5&nbsp;million in the aggregate. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Assumptions</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The weighted average assumptions used to determine the benefit obligations at December&nbsp;31, 2007 and 2006 are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="38%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Pension</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Postretirement</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.00 - 11.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6.50%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.75 - 6.50%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6.50</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.50 - &nbsp;9.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.25%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3.00 - 3.50%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.25</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.25 - 10.75%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.00 - 5.75%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6.00</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.50 - 10.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>The benefit obligations for <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Assumed health care cost trend rates for the U.S. plans were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="77%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2><B>2007</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2>Following year:</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Medical (before age&nbsp;65)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>9.00%</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8.00%</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Medical (age&nbsp;65 and older)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>7.00%</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6.70%</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Ultimate rate to which cost increase is assumed to decline</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5.00%</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.00%</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year in which the ultimate trend rate is reached:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Medical (before age&nbsp;65)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2015</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2013</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Medical (age&nbsp;65 and older)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>2015</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2013</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>A one percent point change in the assumed healthcare cost trend rate would have the following effect on AIG&#146;s postretirement benefit obligations at December&nbsp;31, 2007 and 2006:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="56%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=17>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>One Percent</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>One Percent</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Increase</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Decrease</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=17>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Non-U.S.&nbsp;plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>12</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(8</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(7</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.&nbsp;plans</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>3</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(3</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG&#146;s postretirement plans provide benefits primarily in the form of defined employer contributions rather than defined employer benefits. Changes in the assumed healthcare cost trend rate are subject to caps for U.S. plans. AIG&#146;s non-U.S. postretirement plans are not subject to caps. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The weighted average assumptions used to determine the net periodic benefit costs for the years ended December&nbsp;31, 2007, 2006 and 2005 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 9pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="36%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Pension</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Postretirement</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.&nbsp;Plans*</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.&nbsp;Plans*</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.&nbsp;Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=18>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.25 - 10.75%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.00 - 5.75%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6.00</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.50 - 10.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.25%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4.25</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected return on assets</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2.50 - 10.50%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8.00%</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>N/A</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>N/A</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.75 - 12.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.50 - 5.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.50</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.50 - 10.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.50 - 3.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected return on assets</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.50 - 13.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>N/A</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>N/A</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Discount rate</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.75 - 12.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.75%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.50 - 6.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5.75</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Rate of compensation increase</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.50 - 10.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4.25</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Expected return on assets</DIV></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2.15 - 13.50%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8.00%</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>N/A</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>N/A</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=18>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>The benefit obligations for <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Discount Rate Methodology</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>The projected benefit cash flows under the AIG U.S.&nbsp;Retirement Plan were discounted using the spot rates derived from the Citigroup Pension Discount Curve at December&nbsp;31, 2007 and 2006 and an equivalent single discount rate was derived resulting in the same liability. This single discount rate was rounded to the nearest 25&nbsp;basis points, namely 6.5&nbsp;percent and 6.0&nbsp;percent at December&nbsp;31, 2007 and 2006, respectively. The rates applied to other U.S.&nbsp;plans were not significantly different from those discussed above. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Both funded and unfunded plans for Japan represent over 62&nbsp;percent of the liabilities of the <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>pension plans at December&nbsp;31, 2007 and 2006, respectively. The discount rate for Japan was selected by reference to the published Moody&#146;s/ S&amp;P AA Corporate Bond Universe at the measurement date having regard to the duration of the plans&#146; liabilities. </DIV> <DIV style="FONT-SIZE: 10pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Plan assets</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The asset allocation percentage by major asset class for AIG&#146;s plans at December&nbsp;31, 2007 and 2006, and the target allocation for 2008 follow:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="43%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=11>Non-U.S.&nbsp;Plans-Allocation</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=11>U.S.&nbsp;Plans-Allocation</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=10>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Target</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>Actual</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Actual</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Target</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>Actual</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Actual</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2008</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B>2007</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2008</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B>2007</B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Asset class:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>50</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>47</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>42</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>56</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>64</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Debt securities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>28</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>32</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>32</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>30</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>22</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>26</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>100</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>100</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>100</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Other includes cash, insurance contracts, real estate, private equity and hedge funds asset classes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; No shares of AIG common stock were included in the U.S.&nbsp;plans at December&nbsp;31, 2007 and 55,680&nbsp;shares of AIG common stock with a value of $4&nbsp;million were included in the U.S.&nbsp;plans at December&nbsp;31, 2006. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The investment strategy with respect to AIG&#146;s pension plan assets is designed to achieve investment returns that will fully fund the pension plan over the long term, while limiting the risk of under funding over shorter time periods. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The expected rate of return with respect to AIG&#146;s domestic pension plan was 8.0&nbsp;percent for years ended December&nbsp;31, 2007 and 2006. This rate of return is an aggregation of expected returns within each asset category that, when combined with AIG&#146;s contribution to the plan, will maintain the plan&#146;s ability to meet all required benefit obligations. The return with respect to each asset class considers both historical returns and the future expectations for such returns. <BR><BR></DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Expected Cash Flows</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>Funding for the U.S.&nbsp;pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S.&nbsp;tax purposes. This range is generally not determined until the fourth quarter. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. Supplemental and excess plans&#146; payments and postretirement plan payments are deductible when paid. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; During 2007 AIG contributed $396&nbsp;million to its U.S. and <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>pension plans. The annual pension contribution in 2008 is expected to be approximately $118&nbsp;million for U.S. and <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>plans. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The expected future benefit payments, net of participants&#146; contributions, with respect to the defined benefit pension plans and other postretirement benefit plans, are as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="56%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Pension</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>Postretirement</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Non-U.S.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>U.S.</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Plans</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=16>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2008</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>74</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>135</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>17</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2009</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>79</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>130</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2010</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>79</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>139</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>18</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2011</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>85</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>150</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>18</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2012</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>85</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>163</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>19</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">2013-2017</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>474</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,022</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>102</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=17>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Defined Contribution Plans</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In addition to several small defined contribution plans, AIG sponsors a voluntary savings plan for domestic employees (the AIG Incentive Savings plan), which provides for salary reduction contributions by employees and matching contributions by AIG of up to seven percent of annual salary depending on the employees&#146; years of service. Pre-tax expense associated with this plan was $114&nbsp;million, $104&nbsp;million and $96&nbsp;million in 2007, 2006 and 2005, respectively. </DIV></BODY></HTML> 18.&nbsp;Employee Benefits Pension Plans AIG, its subsidiaries and certain affiliated companies, offer various defined benefit plans to eligible employees false false Description containing the entire pension and other postretirement benefits disclosure as a single block of text. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 74, 77, 78, 518 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 54, 56, 264 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-02 -Paragraph 8 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 88 -Paragraph 17, 48 false 21 1 aig_BenefitsProvidedByEconomicInterestHolderTextBlock aig false na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>19.&nbsp;Benefits Provided by Starr International Company, Inc. and C.V. Starr&nbsp;&amp; Co., Inc.</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>SICO has provided a series of two-year Deferred Compensation Profit Participation Plans (SICO Plans) to certain AIG employees. The SICO Plans came into being in 1975 when the voting shareholders and Board of Directors of SICO, a private holding company whose principal asset is AIG common stock, decided that a portion of the capital value of SICO should be used to provide an incentive plan for the current and succeeding managements of all American International companies, including AIG. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; None of the costs of the various benefits provided under the SICO Plans has been paid by AIG, although AIG has recorded a charge to reported earnings for the deferred compensation amounts paid to AIG employees by SICO, with an offsetting amount credited to additional paid-in capital reflecting amounts deemed contributed by SICO. The SICO Plans provide that shares currently owned by SICO are set aside by SICO for the benefit of the participant and distributed upon retirement. The SICO Board of Directors currently may permit an early payout of units under certain circumstances. Prior to payout, the participant is not entitled to vote, dispose of or receive dividends with respect to such shares, and shares are subject to forfeiture under certain conditions, including but not limited to the participant&#146;s voluntary termination of employment with AIG prior to normal retirement age. Under the SICO Plans, SICO&#146;s Board of Directors may elect to pay a participant cash in lieu of shares of AIG common stock. Following notification from SICO to participants in the SICO Plans that it will settle specific future awards under the SICO Plans with shares rather than cash, AIG modified its accounting for the SICO Plans from variable to fixed measurement accounting. AIG gave effect to this change in settlement method beginning on December&nbsp;9, 2005, the date of SICO&#146;s notice to participants in the SICO Plans. See also Note&nbsp;12(a) Commitments herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Compensation expense in 2006 included various out of period adjustments totaling $61&nbsp;million, primarily relating to stock-splits and other miscellaneous items for the SICO plans. See also Note&nbsp;17 herein. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; In January 2006, C.V. Starr&nbsp;&amp; Co., Inc. (Starr) completed its tender offer to purchase Starr interests from AIG employees. In conjunction with AIG&#146;s adoption of FAS&nbsp;123R, Starr is considered to be an &#147;economic interest holder&#148; in AIG. As a result, compensation expense of $54&nbsp;million was recorded in 2006 results with respect to the Starr tender offer. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; As a result of its changing relationship with Starr and SICO, AIG has established new executive compensation plans to replace the SICO plans and investment opportunities previously provided by Starr. See Note&nbsp;17 for a description of these plans. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Compensation expense with respect to the SICO Plans aggregated $39&nbsp;million, $108&nbsp;million and $205&nbsp;million in 2007, 2006 and 2005, respectively. </DIV></BODY></HTML> 19.&nbsp;Benefits Provided by Starr International Company, Inc. and C.V. Starr&nbsp;&amp; Co., Inc. SICO has provided a series of two-year Deferred false false No definition available. No authoritative reference available. false 22 1 us-gaap_RelatedPartyTransactionsDisclosureTextBlock us-gaap true na duration string This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>20.&nbsp;Ownership and Transactions With Related Parties</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(a)&nbsp;Ownership:</B><FONT style="FONT-SIZE: 8.5pt"> According to the Schedule&nbsp;13D filed on March&nbsp;20, 2007 by Starr, SICO, Edward E. Matthews, Maurice R. Greenberg, the Maurice R. and Corinne P. Greenberg Family Foundation, Inc., the Universal Foundation, Inc., the Maurice R. and Corinne P. Greenberg Joint Tenancy Company, LLC and the C.V. Starr&nbsp;&amp; Co., Inc. Trust, these reporting persons could be deemed to beneficially own 354,987,261&nbsp;shares of AIG&#146;s common stock at that date. Based on the shares of AIG&#146;s common stock outstanding at January&nbsp;31, 2008, this ownership would represent approximately 14.1&nbsp;percent of the voting stock of AIG. Although these reporting persons have made filings under Section&nbsp;16 of the Exchange Act, reporting sales of shares of common stock, no amendment to the Schedule&nbsp;13D has been filed to report a change in ownership subsequent to March&nbsp;20, 2007. </FONT></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>(b)&nbsp;Transactions with Related Parties:</B><FONT style="FONT-SIZE: 8.5pt"> Prior to the termination of their agency relationships with Starr during 2006, AIG and its <FONT size=2>subsidiaries paid commissions to Starr and its subsidiaries for the production and management of insurance business in the ordinary course of business. Payment for the production of insurance business to Starr aggregated approximately $12&nbsp;million in 2007, $47&nbsp;million in 2006, and $214&nbsp;million in 2005. AIG also received no rental fees in 2007, approximately $4&nbsp;million in 2006, and $23&nbsp;million in 2005 from Starr, and paid no rental fees in 2007 or 2006 and approximately $20,000 in 2005 to Starr. AIG also received none in 2007 and 2006 and approximately $2&nbsp;million in 2005, respectively, from SICO, and paid none in 2007 and 2006 and approximately $1&nbsp;million in 2005 to SICO, as reimbursement for services rendered at cost. AIG also paid to SICO $2&nbsp;million in 2007, $2&nbsp;million in 2006, and $3&nbsp;million in 2005 in rental fees. There are no significant receivables from/payables to related parties at December&nbsp;31, 2007.&nbsp;</FONT>&nbsp;</FONT></DIV></BODY></HTML> 20.&nbsp;Ownership and Transactions With Related Parties (a)&nbsp;Ownership: According to the Schedule&nbsp;13D filed on March&nbsp;20, 2007 by Starr, SICO, false false This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 1-4 false 23 1 us-gaap_IncomeTaxDisclosureTextBlock us-gaap true na duration string Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>21.&nbsp;Federal Income Taxes</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>Tax Filings</I> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>AIG and its eligible U.S.&nbsp;subsidiaries file a consolidated U.S.&nbsp;federal income tax return. Prior to 2007, Life Insurance subsidiaries of AIG Life Holdings (US), Inc. (AIGLH), formerly known as American General Corporation,&nbsp;also filed a consolidated U.S.&nbsp;federal income tax return and were not eligible to be included in AIG&#146;s consolidated federal income tax return. AIGLH will be included in the 2007 AIG consolidated federal income tax return. Other U.S. subsidiaries included in the consolidated financial statements also file separate U.S.&nbsp;federal income tax returns. Subsidiaries operating outside the U.S.&nbsp;are taxed, and income tax expense is recorded, based on applicable U.S. and foreign statutes. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><I>Undistributed Earnings and Distributions from Life Surplus</I> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>U.S.&nbsp;federal income taxes have not been provided on $1.5&nbsp;billion of undistributed earnings of certain U.S.&nbsp;subsidiaries that are not included in the consolidated AIG U.S.&nbsp;federal income tax return. Tax planning strategies are available, and would be utilized, to eliminate the tax liability related to these earnings. U.S.&nbsp;federal income taxes have not been provided on the undistributed earnings of certain <FONT style="WHITE-SPACE: nowrap">non-U.S.&nbsp;</FONT>subsidiaries to the extent that such earnings have been reinvested abroad indefinitely. At December&nbsp;31, 2007, the cumulative amount of undistributed earnings in these subsidiaries approximated $21.2&nbsp;billion. Determining the deferred tax liability that would arise if these earnings were not permanently reinvested abroad is not practicable. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; A component of life insurance surplus accumulated prior to 1984 is not taxable unless it exceeds certain statutory limitations or is distributed to shareholders. The American Jobs Creation Act of 2004 amended the federal income tax law to permit life insurance companies to distribute amounts from their policyholders&#146; surplus accounts in 2005 and 2006 without incurring federal income tax on the distributions. In 2005 and 2006, AIG made distributions and eliminated the aggregate balance of $945&nbsp;million from its policyholders&#146; surplus accounts. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><I>Tax Examinations</I> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left>In December 2007, AIG reached a settlement with the IRS in the United States Tax Court for SunAmerica, Inc. and Subsidiaries (&#147;SunAmerica&#148;) for tax years ended September&nbsp;30, 1993 and September&nbsp;30, 1994, which are years prior to AIG&#146;s 1999 acquisition of SunAmerica. The terms of this settlement will be incorporated into the IRS examinations for tax years of SunAmerica from September&nbsp;30, 1995 through December&nbsp;31, 1998, and for SunAmerica Life Insurance Company and Subsidiaries for tax year December&nbsp;31, 1999, to resolve these years. As a result of this settlement, a net refund is due AIG for the periods from 1993 to 1999, the amount of which is immaterial to AIG&#146;s consolidated financial condition. The IRS&#146;s examination of the separate life consolidated federal return for SunAmerica Life and its subsidiaries for years 2000-2002 was closed in January 2008 with a signed settlement agreement. An immaterial amount is payable to the IRS for these years. AIG is in a net refund position for all years 1993-2002 for aggregated SunAmerica audits. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIGLH&#146;s tax years prior to 2000 are closed. Although a Revenue Agent&#146;s Report has not yet been issued to AIGLH for years ended December&nbsp;31, 2000, August&nbsp;29, 2001, December&nbsp;31, 2001, and December&nbsp;31, 2002, AIGLH has received from the IRS a notice of proposed adjustment for certain items during that period. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The statute of limitations for all tax years prior to 1997 has now expired for AIG&#146;s consolidated federal income tax return. In June, 2007, AIG filed a refund claim for years <FONT style="WHITE-SPACE: nowrap">1991-1996.</FONT> The refund claim relates to the tax effects of the restatements of AIG&#146;s 2004 and prior financial statements. A refund claim for the tax years ending December&nbsp;31, 1997-2004 will be filed before September&nbsp;30, 2008. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG has executed a partial settlement with the IRS for tax years 1997 through 1999. Two issues remain open, neither one of which, separately or in total, is material to AIG&#146;s consolidated financial condition. The statute of limitations for these years expires on March&nbsp;31, 2008. AIG is currently under examination for the tax years 2000 through 2002. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG believes there are substantial arguments in support of the tax positions taken in its tax returns. Although the final outcome of any issue still outstanding is uncertain, AIG believes that any tax obligation, including interest thereon, would not be material to AIG&#146;s consolidated financial condition, results of operations, or liquidity. </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The pretax components of U.S. and foreign income reflect the locations in which such pretax income was generated. The pretax U.S. and foreign income was as follows for the years ended December&nbsp;31, 2007, 2006 and 2005:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="62%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=12>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3,957</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>9,862</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,103</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>12,900</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>11,825</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,110</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,943</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,687</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15,213</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=13>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 10pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The provision for income taxes for the years ended December&nbsp;31, 2007, 2006 and 2005 consists of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 6pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="59%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=14><I>Years Ended December 31,</I></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=right>(in millions)</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=13>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign and U.S.&nbsp;components of actual income tax expense:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Foreign:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Current</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,157</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,725</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>974</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>461</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>933</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>426</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Current</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>62</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,764</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,613</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2,225</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>115</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,245</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,455</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,537</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,258</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=14>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The U.S.&nbsp;federal income tax rate was 35&nbsp;percent for 2007, 2006 and 2005. Actual tax expense on income differs from the &#147;expected&#148; amount computed by applying the federal income tax rate because of the following:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="33%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=middle colSpan=27>2007 2006 2005</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=26>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=26>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=7>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Percent</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Percent</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Percent</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=7><B>Years Ended December&nbsp;31,</B></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>of Pretax</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>of&nbsp;Pretax</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>of&nbsp;Pretax</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=3><I>(dollars in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><FONT color=#002868>Amount</FONT></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Income</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amount</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Income</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Amount</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Income</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=26>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">U.S.&nbsp;federal income tax at statutory rate</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,130</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>35.0</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,591</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35.0</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>5,325</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>35.0</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Adjustments:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Tax exempt interest</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(823</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(9.2</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(718</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(3.3</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(566</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(3.7</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Partnerships and joint ventures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(312</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3.5</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(265</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1.2</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(85</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.5</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Synthetic fuel and other tax credits</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(127</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1.4</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(196</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.9</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(296</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1.9</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of foreign operations</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(294</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(3.3</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(132</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.6</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(253</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1.7</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Dividends received deduction</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(129</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1.4</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(102</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.5</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(117</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(0.8</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">State income taxes</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>45</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>0.5</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>59</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.3</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>86</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.6</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Nondeductible compensation</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>41</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>0.5</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.3</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>83</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.5</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">SICO benefit</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(194</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(2.2</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>118</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1.3</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>239</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1.0</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>81</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.5</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=27>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Actual income tax expense</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,455</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>16.3</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>%</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,537</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>30.1</TD> <TD vAlign=bottom noWrap align=left>%</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>4,258</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>28.0</TD> <TD vAlign=bottom noWrap align=left>%</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=27>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The components of the net deferred tax liability at December&nbsp;31, 2007 and 2006 were as follows:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="69%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="6%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=9>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred tax assets:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Loss reserve discount</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,249</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,969</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unearned premium reserve reduction</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,743</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,352</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unrealized depreciation of investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>104</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Loan loss and other reserves</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,408</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,054</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investments in foreign subsidiaries and joint ventures</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,121</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>420</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Adjustment to life policy reserves</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,213</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,584</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">NOL&#146;s and tax attributes</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,814</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>222</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Accruals not currently deductible, and other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,305</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,209</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred tax assets<SUP style="FONT-SIZE: 85%; VERTICAL-ALIGN: text-top">*</SUP></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>12,957</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,810</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Valuation allowance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(223</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(11</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net deferred tax assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>12,734</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>9,799</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred tax liabilities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Deferred policy acquisition costs</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>11,716</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,396</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Flight equipment, fixed assets and intangible assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>5,239</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,377</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Unrealized appreciation of investments</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>&#151;</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,370</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>1,041</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>508</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total deferred tax liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>17,996</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>18,651</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net deferred tax liability</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>5,262</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>8,852</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=10>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>AIG has recorded deferred tax assets for alternative minimum tax credit carry forwards of $101&nbsp;million and $222&nbsp;million at December&nbsp;31, 2007 and 2006, respectively. In 2007, AIG generated net operating loss carryforwards, unused foreign tax credits and general business tax credits in the amount of $4.2&nbsp;billion, $130&nbsp;million and $125&nbsp;million, respectively. Net operating loss carryforwards and general business tax credits may be carried forward for twenty years while foreign tax credits may be carried forward for ten years. Unused minimum tax credits are available for future use without expiration.</I></TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows:</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 4pt; FONT-SIZE: 8.2pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="68%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="11%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="11%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left colSpan=3><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=3><B>2007</B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=7>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Gross unrecognized tax benefits at January&nbsp;1, 2007</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>1,138</B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Agreed audit adjustments with taxing authorities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">included in the beginning balance</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(188</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increases in tax positions for prior years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>646</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Decreases in tax positions for prior years</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(189</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Increases in tax positions for current year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>82</B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Lapse in statute of limitations</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(1</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Settlements</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(178</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=7>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Gross unrecognized tax benefits at December&nbsp;31, 2007</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>1,310</B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=7>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 9pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; At December&nbsp;31, 2007, AIG&#146;s unrecognized tax benefits, excluding interest and penalties, were $1.3&nbsp;billion, which includes $299&nbsp;million related to tax positions the disallowance of which would not affect the annual effective income tax rate. Accordingly, the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $1.0&nbsp;billion. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At January&nbsp;1, 2007 and December&nbsp;31, 2007, AIG had accrued $175&nbsp;million and $281&nbsp;million, respectively, for the payment of interest (net of the federal benefit) and penalties. For the year ended December&nbsp;31, 2007, AIG recognized $170&nbsp;million of interest (net of the federal benefit) and penalties in the Consolidated Statement of Income. </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; AIG continually evaluates adjustments proposed by taxing authorities. At December&nbsp;31, 2007, such proposed adjustments would not result in a material change to AIG&#146;s consolidated financial condition. However, AIG believes that it is reasonably possible that the balance of the unrecognized tax benefits could decrease by $50 to $150&nbsp;million within the next twelve months due to settlements or the expiration of statutes. </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>Listed below are the tax years that remain subject to examination by major tax jurisdictions:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 4pt; FONT-SIZE: 8.2pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="76%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="19%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=4>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><B>Major Tax Jurisdictions</B></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Open Tax Years</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=4>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">United States</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1997-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">United Kingdom</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2003-2006</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Hong Kong</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1997-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Malaysia</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1999-2006</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Singapore</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1993-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Thailand</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2001-2006</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Taiwan</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2000-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Japan</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2000-2006</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Korea</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2001-2006</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">France</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2003-2006</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=5>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left>&nbsp;&nbsp;&nbsp; The reserve for uncertain tax positions increased in the fourth quarter 2007 by $210&nbsp;million for items attributable to prior restatements, including certain tax positions associated with compensation deductions. In addition, income tax expense has been reduced by $162&nbsp;million for interest receivable from the IRS attributable to refund claims for prior restatements. </DIV></BODY></HTML> 21.&nbsp;Federal Income Taxes Tax Filings AIG and its eligible U.S.&nbsp;subsidiaries file a consolidated U.S.&nbsp;federal income tax return. Prior to false false Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 false 24 1 us-gaap_QuarterlyFinancialInformationTextBlock us-gaap true na duration string This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a... false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left><B><FONT color=#002868>22.&nbsp;Quarterly Financial Information (Unaudited)</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following quarterly financial information for each of the three months ended March&nbsp;31, June&nbsp;30, September&nbsp;30 and December&nbsp;31, 2007 and 2006 is unaudited. However, in the opinion of management, all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the results of operations for such periods, have been made.</FONT></B> </DIV> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B>Consolidated Statements of Operations</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="30%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=34>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=30>Three Months Ended</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=30>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>March&nbsp;31,</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>June&nbsp;30,</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>September&nbsp;30,</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=6>December&nbsp;31,</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=3><I>(in millions, except per share data)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007*</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2><B><FONT color=#002868>2007*</FONT></B></TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=34>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total revenues</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>30,645</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>27,278</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>31,150</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>26,854</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>29,836</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>29,247</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,433</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>30,008</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income (loss) before income taxes, minority interest and cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,172</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,793</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,328</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,241</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,879</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,301</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(8,436</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,352</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income (loss) before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,130</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,161</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,277</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,190</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,085</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,224</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5,292</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,439</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,130</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,195</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,277</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,190</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,085</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>4,224</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(5,292</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>3,439</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Earnings per common share:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Basic</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income (loss) before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.58</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.64</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.23</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.20</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.62</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2.08</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.32</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.58</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.22</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.64</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.23</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.20</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.62</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2.08</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><FONT color=#002868>$</FONT></TD> <TD vAlign=bottom noWrap align=right><FONT color=#002868>1.32</FONT></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Diluted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income (loss) before cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.58</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.64</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.19</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2.08</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.31</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change, net of tax</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>0.01</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;&#151;</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.58</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.22</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.64</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1.19</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.61</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(2.08</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>$</TD> <TD vAlign=bottom noWrap align=right>1.31</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=3> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Average shares outstanding:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Basic</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,612</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,605</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,602</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,606</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,576</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,607</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,550</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,610</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Diluted</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,621</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,624</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,613</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,625</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,589</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,626</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,550</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=left>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,622</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=35>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="2%"></TD> <TD width="98%"></TD></TR> <TR vAlign=top> <TD><I>*&nbsp;</I></TD> <TD align=left><I>Both revenues and operating income include (i)&nbsp;an unrealized market valuation loss of $352 million and $11.1&nbsp;billion in the third quarter and fourth quarter of 2007, respectively, on AIGFP&#146;s super senior credit default swap portfolio and (ii)&nbsp;other-than-temporary impairment charges of $3.3&nbsp;billion in the fourth quarter of 2007.</I></TD></TR></TBODY></TABLE> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000">&nbsp;</DIV></BODY></HTML> 22.&nbsp;Quarterly Financial Information (Unaudited) The following quarterly financial information for each of the three months ended March&nbsp;31, false false This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section G -Subsection 1 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 28 -Paragraph 23, 24 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 28 -Paragraph 30 -Subparagraph a-j Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 302 -Paragraph a false 25 1 aig_CondensedConsolidatingFinancialInformationTextBlock aig false na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>23.&nbsp;Information Provided in Connection With Outstanding Debt</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The following condensed consolidating financial statements reflect the following:</FONT></B> </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000"></DIV> <TABLE style="FONT-SIZE: 8pt; BACKGROUND: #ffffff; COLOR: #000000" cellSpacing=0 cellPadding=0 width="100%" border=0> <TBODY> <TR> <TD width="1%"></TD> <TD width="99%"></TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap">&#149; &nbsp;</FONT></TD> <TD align=left>AIGLH, formerly known as American General Corporation, is a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH.</TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap">&#149; &nbsp;</FONT></TD> <TD align=left>AIG Liquidity Corp. is a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all obligations of AIG Liquidity Corp.</TD></TR> <TR> <TD style="FONT-SIZE: 3pt">&nbsp;</TD></TR> <TR vAlign=top> <TD><FONT style="WHITE-SPACE: nowrap">&#149; &nbsp;</FONT></TD> <TD align=left>AIG Program Funding, Inc. is a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all obligations of AIG Program Funding, Inc., which was established in 2007.</TD></TR></TBODY></TABLE> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B>Condensed Consolidating Balance Sheet</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 3pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="17%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=30>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>American</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=23>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>International</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Group, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Liquidity</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Program</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>(As Guarantor)</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIGLH</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Corp.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Funding, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Subsidiaries</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Eliminations</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=3><B>AIG</B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=middle colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>December&nbsp;31, 2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assets:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investments and financial services assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>14,648</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>859,063</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(21,790</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>851,961</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>84</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,199</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,284</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Carrying value of subsidiaries and partially owned companies, at equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>111,714</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>24,396</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,542</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(153,998</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>654</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>9,414</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,592</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>193,445</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>155</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>205,606</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135,860</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>27,029</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,073,249</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(175,633</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,060,505</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>43</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>534,369</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(75</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>534,337</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>36,045</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,136</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>156,003</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(18,135</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>176,049</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,971</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,826</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>250,506</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3,085</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>254,218</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>40,059</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>4,962</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>940,878</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(21,295</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>964,604</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Preferred shareholders&#146; equity in subsidiary companies</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>100</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>100</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total shareholders&#146; equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>95,801</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22,067</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>132,271</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(154,338</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>95,801</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total liabilities, preferred shareholders&#146; equity in subsidiary companies and shareholders&#146; equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>135,860</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>27,029</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,073,249</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(175,633</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,060,505</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">December&nbsp;31, 2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Assets:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Investments and financial services assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>7,346</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>800,350</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(14,822</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>792,874</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>76</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,514</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,590</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Carrying value of subsidiaries and partially owned companies, at equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>109,125</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>27,967</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,436</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(144,427</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,101</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,989</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,622</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>179,183</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,949</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>183,845</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total assets</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>120,536</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>30,589</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>989,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(161,198</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>979,410</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Liabilities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Insurance liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>498,263</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(64</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>498,220</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>15,157</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,136</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>146,206</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(14,820</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>148,679</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,681</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,508</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>224,936</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,482</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>230,643</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total liabilities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>18,859</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>5,644</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>869,405</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(16,366</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>877,542</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Preferred shareholders&#146; equity in subsidiary companies</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>191</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>191</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total shareholders&#146; equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>101,677</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>24,945</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>119,887</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(144,832</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>101,677</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Total liabilities, preferred shareholders&#146; equity in subsidiary companies and shareholders&#146; equity</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>120,536</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>30,589</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>989,483</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(161,198</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>979,410</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=30>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; COLOR: #000000" align=left><I>*&nbsp;Less than $1&nbsp;million.</I> </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B>Condensed Consolidating Statement of Income</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="19%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=28>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>American</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=23>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>International</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=11>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Group, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Liquidity</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Program</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Guarantor</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIGLH</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Corp.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Funding, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Subsidiaries</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Eliminations</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=28>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>Year Ended December&nbsp;31, 2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>(2,379</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(152</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>11,474</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,943</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity in undistributed net income of consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>3,121</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(27</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(3,094</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Dividend income from consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>4,685</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,358</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(6,043</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B>(773</B></TD> <TD vAlign=bottom noWrap align=left><B>)</B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>248</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,980</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,455</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Minority interest</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,288</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,288</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B>$</B></TD> <TD vAlign=bottom noWrap align=right><B>6,200</B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>931</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8,206</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(9,137</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>6,200</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year Ended December&nbsp;31, 2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(786</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>122</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>22,351</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>21,687</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity in undistributed net income of consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>13,308</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,263</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(14,571</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Dividend income from consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,689</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>602</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(2,291</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>197</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(131</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,471</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>6,537</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Minority interest</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,136</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,136</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cumulative effect of an accounting change</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>34</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,048</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,118</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,744</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(16,862</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>14,048</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year Ended December&nbsp;31, 2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Operating income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(1,569</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(200</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>16,982</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>15,213</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Equity in undistributed net income of consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>10,156</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,530</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(12,686</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Dividend income from consolidated subsidiaries</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,958</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,958</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Income taxes (benefits)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>68</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(92</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,282</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>4,258</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Minority interest</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(478</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(478</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net income (loss)</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,477</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>2,422</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>*</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>12,222</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(14,644</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>10,477</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=29>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>*&nbsp;Less than $1&nbsp;million.</I> </DIV> <DIV style="BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000"></DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 15pt 0px 0px; COLOR: #000000" align=left><B>Condensed Consolidating Statements of Cash Flow</B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8.5pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="3%">&nbsp;</TD> <TD width="28%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="2%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="4%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=25>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>American</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=19>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>International</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=7>&nbsp;</TD></TR> <TR style="FONT-SIZE: 7pt"> <TD colSpan=2>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Group, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD colSpan=3>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Liquidity</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Program</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Other</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Consolidated</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=left colSpan=2><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Guarantor</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIGLH</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Corp.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Funding, Inc.</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>Subsidiaries</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>AIG</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7pt"> <TD noWrap align=right colSpan=25> <DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 2px solid">&nbsp;</DIV></TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px"><B><FONT color=#002868>Year Ended December&nbsp;31, 2007</FONT></B></DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) operating activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(770</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>214</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>35,727</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>35,171</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets disposed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,057</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>175,201</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>178,258</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets acquired</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(9,666</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(235,729</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(245,395</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(4,128</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>3,258</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(870</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash used in investing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(10,737</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(57,270</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(68,007</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Issuance of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>20,582</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>82,628</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>103,210</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Repayments of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,253</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(78,823</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(80,076</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Payments advanced to purchase shares</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(6,000</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(6,000</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash dividends paid to shareholders</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,881</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(1,881</FONT></B></TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>)</FONT></B></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>67</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(213)</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,373</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>18,227</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) financing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>11,515</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>(213)</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>22,178</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>33,480</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of exchange rate changes on cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>50</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Change in cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>8</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>685</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>694</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>76</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,514</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1,590</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>84</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>1</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left><B><FONT color=#002868>*</FONT></B></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>&#151;</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,199</FONT></B></TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right><B><FONT color=#002868>$</FONT></B></TD> <TD vAlign=bottom noWrap align=right><B><FONT color=#002868>2,284</FONT></B></TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=26> <DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 2px solid">&nbsp;</DIV></TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year Ended December&nbsp;31, 2006</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) operating activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(590</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>258</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,619</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,287</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets disposed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>3,402</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>154,704</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>158,106</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets acquired</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(8,298</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(216,663</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(224,961</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(2,747</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(67)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,717</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,097</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash used in investing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(7,643</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(67)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(60,242</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(67,952</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Issuance of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>12,038</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61,950</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>73,988</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Repayments of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(2,417</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(34,072</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(36,489</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash dividends paid to shareholders</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,638</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,638</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>136</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(191)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25,438</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>25,383</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) financing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>8,119</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(191)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>53,316</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>61,244</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of exchange rate changes on cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>114</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>114</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Change in cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(114</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(193</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(307</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>190</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,707</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,897</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>76</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,514</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,590</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=26> <DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 2px solid">&nbsp;</DIV></TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Year Ended December&nbsp;31, 2005</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by operating activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,854</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>805</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>20,754</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>23,413</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets disposed</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>185,884</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>185,884</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Invested assets acquired</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(598</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(245,804</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(246,402</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,083</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(247)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>389</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(941</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash used in investing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,681</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(247)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(59,531</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(61,459</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities:</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Issuance of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,101</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>64,960</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>67,061</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Repayments of debt</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(607</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(398)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(51,099</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(52,104</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash dividends paid to shareholders</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,421</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,421</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD>&nbsp;</TD> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Other</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(73</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(160)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>24,794</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>24,561</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Net cash provided by (used in) financing activities</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(558)</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38,655</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>38,097</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Effect of exchange rate changes on cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(163</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(163</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Change in cash</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>173</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(285</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(112</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at beginning of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>17</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,992</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>2,009</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=26>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left colSpan=2> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash at end of year</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>190</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=left>*</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>&#151;</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,707</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>1,897</TD> <TD>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left colSpan=26> <DIV style="FONT-SIZE: 1px; BORDER-BOTTOM: #000000 2px solid">&nbsp;</DIV></TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>*&nbsp;Less than $1&nbsp;million.</I> </DIV></BODY></HTML> 23.&nbsp;Information Provided in Connection With Outstanding Debt The following condensed consolidating financial statements reflect the following: false false No definition available. No authoritative reference available. false 26 1 aig_CashFlowsRestatedTextBlock aig false na duration string No definition available. false false false false false false false false false 1 false false 0 0 <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> <HTML><HEAD> <META http-equiv=Content-Type content="text/html; charset=utf-8"> <META content="MSHTML 6.00.2900.3429" name=GENERATOR></HEAD> <BODY> <DIV style="FONT-SIZE: 11.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>24.&nbsp;Cash Flows</FONT></B> </DIV> <DIV style="FONT-SIZE: 9.5pt; BACKGROUND: #ffffff; MARGIN: 6pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>As part of its ongoing remediation activities, AIG has made certain revisions to the Consolidated Statement of Cash Flows, primarily relating to the effect of reclassifying certain policyholders&#146; account balances, the elimination of certain intercompany balances and revisions related to separate account assets. Accordingly, AIG revised the previous periods presented to conform to the revised presentation.</FONT></B> </DIV> <DIV style="FONT-SIZE: 8.5pt; BACKGROUND: #ffffff; MARGIN: 12pt 0px 0px; COLOR: #000000" align=left><B><FONT color=#002868>The revisions and their effect in the consolidated statement of cash flows for the years ended 2006 and 2005 are presented below:</FONT></B> </DIV> <CENTER> <TABLE style="MARGIN-TOP: 5pt; FONT-SIZE: 8pt" cellSpacing=0 cellPadding=0 width="100%" align=center border=0> <TBODY> <TR style="FONT-SIZE: 1pt"> <TD width="69%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="7%">&nbsp;</TD> <TD width="3%">&nbsp;</TD> <TD width="5%">&nbsp;</TD> <TD width="1%">&nbsp;</TD> <TD width="4%">&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>For the Years Ended</TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD noWrap align=middle colSpan=7>December&nbsp;31,</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=6>&nbsp;</TD> <TD></TD></TR> <TR style="FONT-SIZE: 7.5pt"> <TD noWrap align=left><I>(in millions)</I></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2006</TD> <TD></TD> <TD>&nbsp;</TD> <TD noWrap align=right colSpan=2>2005</TD> <TD></TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" noWrap align=right colSpan=8>&nbsp;</TD> <TD></TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from operating activities&nbsp;&#151; As previously reported</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,829</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>25,382</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Revisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(542</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(1,969</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from operating activities&nbsp;&#151; As revised</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>6,287</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>23,413</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing activities&nbsp;&#151; As previously reported</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(67,040</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(62,500</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Revisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>(912</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,041</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from investing activities&nbsp;&#151; As revised</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(67,952</TD> <TD vAlign=bottom noWrap align=left>)</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>(61,459</TD> <TD vAlign=bottom noWrap align=left>)</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities&nbsp;&#151; As previously reported</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>59,790</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>37,169</TD> <TD>&nbsp;</TD></TR> <TR> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Revisions</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>1,454</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>&nbsp;</TD> <TD vAlign=bottom noWrap align=right>928</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR> <TR vAlign=bottom bgColor=#cceeff> <TD vAlign=top align=left> <DIV style="MARGIN-LEFT: 10px; TEXT-INDENT: -10px">Cash flows from financing activities&nbsp;&#151; As revised</DIV></TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>61,244</TD> <TD>&nbsp;</TD> <TD>&nbsp;</TD> <TD vAlign=bottom align=right>$</TD> <TD vAlign=bottom noWrap align=right>38,097</TD> <TD>&nbsp;</TD></TR> <TR style="FONT-SIZE: 1px" vAlign=bottom> <TD style="BORDER-TOP: #000000 1pt solid" align=left colSpan=9>&nbsp;</TD></TR></TBODY></TABLE></CENTER> <DIV style="FONT-SIZE: 7.5pt; BACKGROUND: #ffffff; MARGIN: 3pt 0px 0px; COLOR: #000000" align=left><I>There was no effect on ending cash balances.</I></DIV></BODY></HTML> 24.&nbsp;Cash Flows As part of its ongoing remediation activities, AIG has made certain revisions to the Consolidated Statement of Cash Flows, primarily false false No definition available. No authoritative reference available. false false 1 24 false UnKnown UnKnown UnKnown false true XML 12 R5.xml IDEA: Income Statement 1.0.0.3 false Income Statement (USD $) false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 4 2 us-gaap_RevenuesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 5 3 us-gaap_PremiumsEarnedNet us-gaap true credit duration monetary Premiums earned on the income statement for all insurance and reinsurance contracts after subtracting any amounts ceded to... false false false false false false false false false 1 true true 79302000000 79302000000.00 false false 2 true true 74213000000 74213000000.00 false false 3 true true 70310000000 70310000000.00 false false Premiums earned on the income statement for all insurance and reinsurance contracts after subtracting any amounts ceded to another insurer and adding premiums assumed from other insurers. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 1 -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 113 -Paragraph 27 -Subparagraph a, b false 6 3 us-gaap_NetInvestmentIncome us-gaap true credit duration monetary The income earned from investments in securities and property, equipment and other capital assets. It includes rent from... false false false false false false false false false 1 false true 28619000000 28619000000.00 false false 2 false true 26070000000 26070000000.00 false false 3 false true 22584000000 22584000000.00 false false The income earned from investments in securities and property, equipment and other capital assets. It includes rent from property and equipment, dividends from shares in corporations, and interest from bonds, loans, mortgages, derivatives, commercial paper, bank accounts, certificates of deposits, treasuries, and other financial securities. It does not include realized gains and losses on investments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 16 -Article 12 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 2 -Article 7 false 7 3 us-gaap_RealizedInvestmentGainsLosses us-gaap true credit duration monetary The net realized gains or losses on investments during the period. false false false false false false false false false 1 false true -3592000000 -3592000000.00 false false 2 false true 106000000 106000000.00 false false 3 false true 341000000 341000000.00 false false The net realized gains or losses on investments during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 3 -Subparagraph (a) -Article 7 false 8 3 aig_UnrealizedMarketValuationLossesonAigfp aig false debit duration monetary Unrealized market valuation losses on AIGFP super senior credit default swap portfolio false false false false false false false false false 1 false true -11472000000 -11472000000.00 false false 2 false false 0 0 false false 3 false false 0 0 false false Unrealized market valuation losses on AIGFP super senior credit default swap portfolio No authoritative reference available. false 9 3 us-gaap_OtherIncome us-gaap true credit duration monetary Reflects the sum of all other revenue and income recognized by the entity in the period not otherwise specified in the income... false false false false false false false false false 1 false true 17207000000 17207000000.00 false false 2 false true 12998000000 12998000000.00 false false 3 false true 15546000000 15546000000.00 false false Reflects the sum of all other revenue and income recognized by the entity in the period not otherwise specified in the income statement. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 4 -Article 7 false 10 3 us-gaap_Revenues us-gaap true credit duration monetary Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other... false false false false false false false false false 1 false true 110064000000 110064000000.00 false false 2 false true 113387000000 113387000000.00 false false 3 false true 108781000000 108781000000.00 false false Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 1 -Article 5 true 11 2 us-gaap_BenefitsLossesAndExpensesAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 12 3 us-gaap_PolicyholderBenefitsAndClaimsIncurredNet us-gaap true debit duration monetary Provision for benefits, claims and claims settlement expenses incurred during the year net of the effects of contracts... false false false false false false false false false 1 false true 66115000000 66115000000.00 false false 2 false true 60287000000 60287000000.00 false false 3 false true 64100000000 64100000000.00 false false Provision for benefits, claims and claims settlement expenses incurred during the year net of the effects of contracts assumed and ceded. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 5 -Article 7 false 13 3 us-gaap_SellingGeneralAndAdministrativeExpense us-gaap true debit duration monetary The aggregate total costs related to selling a firm's product and services, as well as all other general and administrative... false false false false false false false false false 1 false true 35006000000 35006000000.00 false false 2 false true 31413000000 31413000000.00 false false 3 false true 29468000000 29468000000.00 false false The aggregate total costs related to selling a firm's product and services, as well as all other general and administrative expenses. Direct selling expenses (for example, credit, warranty, and advertising) are expenses that can be directly linked to the sale of specific products. Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of nonsales personnel, rent, utilities, communication, etc. No authoritative reference available. false 14 3 us-gaap_BenefitsLossesAndExpenses us-gaap true debit duration monetary The total amount of expense recognized during the period for future policy benefits, claims and claims adjustment costs, and... false false false false false false false false false 1 false true 101121000000 101121000000.00 false false 2 false true 91700000000 91700000000.00 false false 3 false true 93568000000 93568000000.00 false false The total amount of expense recognized during the period for future policy benefits, claims and claims adjustment costs, and for selling, general and administrative costs. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 5, 6, 7 -Article 7 true 15 2 aig_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndCumulativeEffectOfChangeInAccountingPrinciple aig false credit duration monetary Income before income taxes, minority interest and cumulative effect of accounting changes false false false false false false false false false 1 false true 8943000000 8943000000.00 false false 2 false true 21687000000 21687000000.00 false false 3 false true 15213000000 15213000000.00 false false Income before income taxes, minority interest and cumulative effect of accounting changes No authoritative reference available. false 16 2 us-gaap_IncomeTaxExpenseBenefitAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 17 3 us-gaap_CurrentIncomeTaxExpenseBenefit us-gaap true debit duration monetary The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for... false false false false false false false false false 1 false true 3219000000 3219000000.00 false false 2 false true 5489000000 5489000000.00 false false 3 false true 2587000000 2587000000.00 false false The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable income (loss) from continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph a false 18 3 us-gaap_DeferredIncomeTaxExpenseBenefit us-gaap true debit duration monetary The component of income tax expense for the period representing the net change in the entity's deferred tax assets and... false false false false false false false false false 1 false true -1764000000 -1764000000.00 false false 2 false true 1048000000 1048000000.00 false false 3 false true 1671000000 1671000000.00 false false The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph b false 19 3 us-gaap_IncomeTaxExpenseBenefit us-gaap true debit duration monetary The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing... false false false false false false false false false 1 false true 1455000000 1455000000.00 false false 2 false true 6537000000 6537000000.00 false false 3 false true 4258000000 4258000000.00 false false The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph a, b true 20 2 aig_IncomeLossFromContinuingOperationsBeforeMinorityInterestAndCumulativeEffectOfChangeInAccountingPrinciple aig false credit duration monetary Income before minority interest and cumulative effect of accounting changes false false false false false false false false false 1 false true 7488000000 7488000000.00 false false 2 false true 15150000000 15150000000.00 false false 3 false true 10955000000 10955000000.00 false false Income before minority interest and cumulative effect of accounting changes No authoritative reference available. true 21 2 us-gaap_MinorityInterestInNetIncomeLossOfConsolidatedEntities us-gaap true debit duration monetary Amount of net income (loss) for the period allocated to noncontrolling shareholders, partners, or other equity holders in one... false false false false false false false false false 1 false true -1288000000 -1288000000.00 false false 2 false true -1136000000 -1136000000.00 false false 3 false true -478000000 -478000000.00 false false Amount of net income (loss) for the period allocated to noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 18 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 10 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 14 -Subparagraph (e) -Article 9 false 22 2 us-gaap_IncomeLossBeforeCumulativeEffectOfChangeInAccountingPrinciple us-gaap true credit duration monetary Income (loss) from continuing operations and from discontinued operations after extraordinary items and income taxes but... false false false false false false false false false 1 false true 6200000000 6200000000.00 false false 2 false true 14014000000 14014000000.00 false false 3 false true 10477000000 10477000000.00 false false Income (loss) from continuing operations and from discontinued operations after extraordinary items and income taxes but before the cumulative effect of a change in accounting principle. No authoritative reference available. false 23 2 us-gaap_CumulativeEffectOfChangeInAccountingPrinciplePresentedOnIncomeStatementNetOfTax us-gaap true credit duration monetary The effect on net income, net of income taxes, of a change in accounting principle reported on the income statement in the... false false false false false false false false false 1 false false 0 0 false false 2 false true 34000000 34000000.00 false false 3 false false 0 0 false false The effect on net income, net of income taxes, of a change in accounting principle reported on the income statement in the period, which occurred before retrospective adjustments were required. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 20 -Paragraph 19, 20 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 9 -Paragraph 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 36 -Subparagraph a false 24 2 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 true true 6200000000 6200000000.00 false false 2 true true 14048000000 14048000000.00 false false 3 true true 10477000000 10477000000.00 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 true 26 2 us-gaap_EarningsPerShareBasicAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 27 3 us-gaap_IncomeLossBeforeCumulativeEffectOfChangeInAccountingPrinciplePerBasicShare us-gaap true na duration decimal Income (loss) from continuing operations and from discontinued operations after extraordinary items and income taxes but... false false false false false false false false true 1 true true 2.40 2.40 false false 2 true true 5.38 5.38 false false 3 true true 4.03 4.03 false false Income (loss) from continuing operations and from discontinued operations after extraordinary items and income taxes but before the cumulative effect of a change in accounting principle, per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 154 -Paragraph 17 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 37 false 28 3 us-gaap_CumulativeEffectOfChangeInAccountingPrincipleNetOfTaxPerBasicShare us-gaap true na duration decimal The amount of income (loss) from the cumulative effect of a change in accounting principle, net of tax effect, per each share... false false false false false false false false true 1 false false 0 0 false false 2 true true 0.01 0.01 false false 3 false false 0 0 false false The amount of income (loss) from the cumulative effect of a change in accounting principle, net of tax effect, per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 20 -Paragraph 19, 20 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 37 false 29 3 us-gaap_EarningsPerShareBasic us-gaap true na duration decimal The amount of net income or loss for the period per each share of common stock outstanding during the reporting period. false false false false false false false false true 1 true true 2.40 2.40 false false 2 true true 5.39 5.39 false false 3 true true 4.03 4.03 false false The amount of net income or loss for the period per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 21 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 36, 37, 38 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 20 -Article 5 true 30 2 us-gaap_EarningsPerShareDilutedAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 31 3 us-gaap_IncomeLossBeforeCumulativeEffectOfChangeInAccountingPrinciplePerDilutedShare us-gaap true na duration decimal Income (loss) from continuing operations and from discontinued operations after extraordinary items and income taxes but... false false false false false false false false true 1 true true 2.39 2.39 false false 2 true true 5.35 5.35 false false 3 true true 3.99 3.99 false false Income (loss) from continuing operations and from discontinued operations after extraordinary items and income taxes but before the cumulative effect of a change in accounting principle, per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 154 -Paragraph 17 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 37 false 32 3 us-gaap_CumulativeEffectOfChangeInAccountingPrincipleNetOfTaxPerDilutedShare us-gaap true na duration decimal The amount of income (loss) from the cumulative effect of a change in accounting principle, net of tax effect, per each share... false false false false false false false false true 1 false false 0 0 false false 2 true true 0.01 0.01 false false 3 false false 0 0 false false The amount of income (loss) from the cumulative effect of a change in accounting principle, net of tax effect, per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 20 -Paragraph 19, 20 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 37 false 33 3 us-gaap_EarningsPerShareDiluted us-gaap true na duration decimal The amount of net income or loss for the period per each share of common stock and dilutive common stock equivalents... false false false false false false false false true 1 true true 2.39 2.39 false false 2 true true 5.36 5.36 false false 3 true true 3.99 3.99 false false The amount of net income or loss for the period per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 18 -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 20 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 21 -Article 9 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 11, 12, 36 false 34 2 aig_AverageSharesOutstandingAbstract aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 35 3 us-gaap_WeightedAverageNumberOfSharesOutstandingBasic us-gaap true na duration shares Number of basic shares determined by relating the portion of time within a reporting period that common shares have been... false false false false false false false false false 1 false true 2585000000 2585000000.00 false false 2 false true 2608000000 2608000000.00 false false 3 false true 2597000000 2597000000.00 false false Number of basic shares determined by relating the portion of time within a reporting period that common shares have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 false 36 3 us-gaap_WeightedAverageNumberOfDilutedSharesOutstanding us-gaap true na duration shares The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing... false false false false false false false false false 1 false true 2598000000 2598000000.00 false false 2 false true 2623000000 2623000000.00 false false 3 false true 2627000000 2627000000.00 false false The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing of issuance of shares in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 false false 3 32 false NoRounding NoRounding Hundreds false true XML 13 defnref.xml IDEA: XBRL DOCUMENT Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Concepts (CON) -Number 6 -Paragraph 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 18 -Article 5 The net change during the reporting period in the amount of cash that is received as security when loaning securities. No authoritative reference available. The carrying value of funds outstanding loaned in the form of security resale agreements if the agreement requires the purchaser to resell the identical security purchased or a security that meets the definition of "substantially the same" in the case of a dollar roll. Also includes purchases of participations in pools of securities that are subject to a resale agreement. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 41 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 100 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Article 9 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (m) -Subparagraph (1)i -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (m) -Subparagraph (2) -Article 4 Other invested assets consists of investments not otherwise specified in the taxonomy. No authoritative reference available. The net cash inflow (outflow) from other financing activities. This element is used when there is not a more specific and appropriate element in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18, 19, 20 The fair value as of the balance sheet date of firm holdings in physical commodity contracts (for example, agricultural products, metals and energy). Includes both pledged (to counterparties as collateral for financing transactions) and unpledged holdings. No authoritative reference available. The allowance for loan and lease losses represents the reserve to cover probable credit losses related to specifically identified loans and leases, as well as probable credit losses inherent in the remainder of the loan portfolio as of the balance sheet date. For banks, include currently required allocated transfer risk reserves. Include carryover of or adjustments to the allowance for loan losses in connection with business combinations determined to be appropriate. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Paragraph 8 -Subparagraph (a)(ii) -Subsection I Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section L -Paragraph 1 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 118 -Paragraph 6 -Subparagraph i Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Subparagraph (d) -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 8, 9 The cash inflow from the issuance of an equity stock that has been previously reacquired by the entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph a The cash inflow associated with mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. No authoritative reference available. This item represents debt securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) or for debt securities formerly categorized as available-for-sale or held-to-maturity which the entity held as of the date it opted to account for such securities at fair value. An enterprise may also categorize such a security as trading without the intent to sell it in the near term assuming the decision to categorize the security as trading occurred at acquisition; this is the reason why the trading category of investments in debt securities are bought and sold "principally" for sale in the near term. Transfers into and out of the trading category should be rare. Such financial instruments that are held as of the reporting date are measured at fair value with unrealized holding gains and losses (the difference between fair value and the previously reported carrying amount) included in earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 29 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number Q&A 115 -Paragraph 35 The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 27 -Subparagraph (f) No authoritative reference available. No authoritative reference available. The amount of income (loss) from the cumulative effect of a change in accounting principle, net of tax effect, per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 20 -Paragraph 19, 20 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 37 Unrealized market valuation losses on AIGFP super senior credit default swap portfolio No authoritative reference available. The cash outflow for the purchase of amounts due from customers, clients, lessees, borrowers, or others under the terms of its agreements therewith. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph a Changes in net unrealized (gains) losses on derivative instruments, such as swaps, forwards, options not entered into by broker dealer entities. No authoritative reference available. Carrying amount as of the balance sheet date of the unpaid sum of the known and estimated amounts payable to satisfy all currently due domestic and foreign income tax obligations. In theory, the sum represents amounts due to tax jurisdictions based on tax returns as if they were ready and available for filing on and as of the balance sheet date, plus accrued interest and penalties pertaining to amounts of tax uncertainties. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 15(b)(1) -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 15 -Subparagraph (1) -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 15, 21 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Section Appendix E -Paragraph 289 The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing of issuance of shares in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 Cash flows associated with securities lending payable. No authoritative reference available. This item represents the total of all debt securities grouped by maturity dates, at cost, net of adjustments made for accretion, amortization, other-than-temporary impairments, and hedging, if any, which are classified neither as held-to-maturity nor trading securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS115-1/124-1 -Paragraph 7 -Subparagraph fn2 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 20 For an unclassified balance sheet, total of (current and noncurrent) carrying amounts of long-term borrowings as of the balance sheet date, which may include notes payable, bonds payable, commercial loans, mortgage loans, convertible debt, subordinated debt and other types of long term debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 16 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 47 -Paragraph 10 -Subparagraph b Information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancings and noncompliance with debt covenants. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity during the period and held in treasury on the financial statement date. This stock has no voting rights and receives no dividends. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30 -Article 5 No authoritative reference available. No authoritative reference available. Reflects the sum of all other revenue and income recognized by the entity in the period not otherwise specified in the income statement. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 4 -Article 7 Cash flows associated with outstanding preferred stock or interest of a wholly owned subsidiary. No authoritative reference available. The net prior service cost or credit recognized in other comprehensive income that is a reclassification adjustment of other comprehensive income as a result of being recognized as a component of net periodic benefit cost for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 4 -Subparagraph c, d Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph i Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7 -Subparagraph a Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 17, 19, 24 The income earned from investments in securities and property, equipment and other capital assets. It includes rent from property and equipment, dividends from shares in corporations, and interest from bonds, loans, mortgages, derivatives, commercial paper, bank accounts, certificates of deposits, treasuries, and other financial securities. It does not include realized gains and losses on investments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 16 -Article 12 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 2 -Article 7 Treasury stock, shares held by subsidiaries No authoritative reference available. The amount needed to reflect the estimated ultimate cost of settling claims relating to casualty insurance insured events that have occurred on or before a particular date (ordinarily, the balance sheet date) and the amount needed to provide for the estimated ultimate cost required to investigate and settle claims relating to insured events that have occurred on or before a particular date (ordinarily, the balance sheet date), whether or not reported to the insurer at that date. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 18 -Article 12 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-5 -Paragraph 11 -Subparagraph a The net change in the beginning and end of period Spot Commodities balances. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Cumulative effect of initial adoption of new accounting principle on beginning retained earnings, net of tax. This element can be used, generally, for the adjustment to retained earnings of a new accounting principle. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 154 -Paragraph 17, 18 The sum of the periodic provision charged to earnings, based on an assessment of uncollectibility from the counterparty on account of loan, lease or other credit losses, to reduce these accounts to the amount that approximates their net realizable value. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-DEP -Chapter 5 -Paragraph 168, 169, 170 -IssueDate 2006-05-01 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 11 -Article 9 No authoritative reference available. No authoritative reference available. Fair value as of the balance sheet date of hybrid instruments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 155 -Paragraph 4 -Subparagraph (e) This element may be used for the entire related party transactions disclosure as a single block of text. Disclosure may include: the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph b -Article 3A Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 57 -Paragraph 1-4 Carrying amount as of the balance sheet date of liabilities not otherwise specified in the taxonomy. Also serves as the sum of liabilities not individually reported in the financial statements, or not separately disclosed in notes. No authoritative reference available. Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being reported on. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 The reserve to cover probable credit losses related to specifically identified fixed maturity real estate loans as well as probable credit losses inherent in the remainder of that loan portfolio. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 47 For an unclassified balance sheet, this item represents investments in debt and equity securities which are categorized neither as held-to-maturity nor trading. Such securities are reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain or loss of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13, 14 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 22 The net change in the beginning and end of period of general and life insurance reserve balances; shall be classified as cash flows from operating activities. No authoritative reference available. The cash outflow for purchases of and capital improvements on property, plant and equipment (capital expenditures), software, and other intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph c The change, in other policyholder funds recorded on the balance sheet, is needed to adjust net income to arrive at net cash flows provided by (used in) operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 No authoritative reference available. No authoritative reference available. Amortization of premium and discount on securities and long-term borrowings includes: (a) Accretion (Amortization) of Discounts and Premiums, Investments:The sum of the periodic adjustments of the differences between securities' face values and purchase prices that are charged against earnings. This is called accretion if the security was purchased at a discount and amortization if it was purchased at premium. As a noncash item, this element is an adjustment to net income when calculating cash provided by (used in) operations using the indirect method. (b) Amortization of Financing Costs and Discounts, Total: The component of interest expense representing the noncash expenses charged against earnings in the period to allocate debt discount and premium, and the costs to issue debt and obtain financing over the related debt instruments. No authoritative reference available. The cash outflow to reacquire common stock during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a Description containing the entire pension and other postretirement benefits disclosure as a single block of text. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 74, 77, 78, 518 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 54, 56, 264 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-02 -Paragraph 8 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 88 -Paragraph 17, 48 No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The net change during the reporting period in investment income that has been earned but not yet received in cash. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 The amount of expense charged against earnings in the period to allocate the cost, net of salvage value, of premises and equipment over their remaining estimated productive lives. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Description containing the entire organization, consolidation, basis of presentation of financial statements and significant accounting policies disclosure. No authoritative reference available. The cash outflow for acquisition of or capital improvements on passenger aircraft, freighter aircraft, or flight equipment. No authoritative reference available. The cash outflow for a segregated fund account during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26, 31 The cash inflow associated with the maturity, prepayments and calls (requests for early payments) of debt securities designated as held-to-maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph a This item represents the complete disclosure regarding the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the Company is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risk is are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15B -Subparagraph a, b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 3, 10, 14, 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 157 -Paragraph 32, 33, 34 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15C, 15D Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 107 -Paragraph 15A -Subparagraph a-d Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 17-22, 27, 28 Total investments and financial services assets No authoritative reference available. No authoritative reference available. No authoritative reference available. The amount of net income or loss for the period per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 18 -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 20 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 21 -Article 9 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 11, 12, 36 Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 Describes the nature and amount of capitalized costs incurred to write or acquire insurance contracts, the basis for and methodology for capitalizing such costs, the accounting for such deferred acquisition costs (DAC) when modifications or internal replacements of related insurance contracts occur and the effect on results of operations, and the methodology and amount of amortization. No authoritative reference available. No authoritative reference available. No authoritative reference available. Cash represents cash on hand and non-interest bearing demand deposits. No authoritative reference available. Number of basic shares determined by relating the portion of time within a reporting period that common shares have been outstanding to the total time in that period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 40 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 8 The cash inflow from the sale of passenger aircraft, freighter aircraft, or flight equipment. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 Disclosure of variable interest entities (VIE), including, but not limited to the nature, purpose, size, and activities of the VIE, the carrying amount and classification of consolidated assets that are collateral for the VIE's obligations, lack of recourse if creditors (or beneficial interest holders) of a consolidated VIE have no recourse to the general credit of the primary beneficiary. An enterprise that holds a significant variable interest in a VIE but is not the primary beneficiary may disclose the nature of its involvement with the VIE and when that involvement began, the nature, purpose, size, and activities of the VIE and the enterprise's maximum exposure to loss as a result of its involvement with the VIE. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 2, 14, 15, 16, 23, 24, 25, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 46R -Paragraph 4 -Subparagraph g Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 35 Includes disclosure of claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (k) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 The cash inflow associated with the sale or collection of receivables arising from the financing of goods and services. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph a Number of shares of stock issued, as of the end of the period. No authoritative reference available. The change in funds held under reinsurance agreements or treaty (contract between the reinsurer and the ceding entity stipulating the manner in which insurance written on various risks is to be shared). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 The known and estimated amount recoverable as of the balance sheet date from reinsurers for claims paid or incurred by the ceding insurer and associated claims settlement expenses, including estimated amounts for claims incurred but not reported, and policy benefits, net of any related valuation allowance. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 6 -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 113 -Paragraph 14, 16, 27, 113 No authoritative reference available. No authoritative reference available. Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 14 -Paragraph 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 9, 10, 11, 12 Fair values as of the balance sheet date of all liabilities resulting from contracts that meet the criteria of being accounted for as derivative instruments, net of the effects of master netting arrangements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FIN39-1 -Paragraph 10A, 10B Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 4, 17 Describes statutory deposits, net investment income, net realized gains and losses, fair value of available for sale and held to maturity securities, non-income producing invested assets, gross unrealized losses on investments, other invested assets and investment in life settlement contracts. No authoritative reference available. The cash inflow from a debt initially having maturity due after one year or beyond the operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 19 -Subparagraph b This item represents the cost of debt and equity securities, which are categorized neither as held-to-maturity nor trading, net of adjustments made for accretion, amortization, other-than-temporary impairments, and hedging, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS115-1/124-1 -Paragraph 7 -Subparagraph fn2 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 19 The periodic expense charged against earnings that represents the sales costs that are associated with acquiring a new customer over the term of the insurance contract. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 60 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 97 -Paragraph 27 For entities with classified balance sheets, the net change during the reporting period in the value of other assets or liabilities used in operating activities, that are not otherwise defined in the taxonomy. For entities with unclassified balance sheets, the net change during the reporting period in the value of all other assets or liabilities used in operating activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Originations and purchases of Finance receivables and other loans held for sale No authoritative reference available. The net change during the reporting period in receivables (payables) that result from buying and selling securities for the firm's own account or from acting as an agent or intermediary in the sale of securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Tax effect of the adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 Number of shares that have been repurchased during the period and are being held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30 -Article 5 For an unclassified balance sheet, this item represents investments in debt securities which are categorized as held-to-maturity; such investments are measured at amortized cost (carrying value). The held-to-maturity category is for those securities that the Entity has the positive intent and ability to hold until maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 3 -Section A -Paragraph 4, 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 17 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 7, 8, 9, 10, 11 The aggregate total costs related to selling a firm's product and services, as well as all other general and administrative expenses. Direct selling expenses (for example, credit, warranty, and advertising) are expenses that can be directly linked to the sale of specific products. Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of nonsales personnel, rent, utilities, communication, etc. No authoritative reference available. The cash inflow associated with the sale of equity securities classified as available-for-sale securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph b Reflects the sum of the carrying amounts of the various categories of unpaid loans issued to individuals to acquire goods and services. Includes credit card, automobile, boat, student and durable home appliance loans. Also includes the carrying amount of unpaid loans issued to individuals to provide financing in the legal form of a lease agreement which meets the criteria for treating the arrangement as a direct financing lease. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-DEP -Chapter 8 -Paragraph 31-39 -IssueDate 2006-05-01 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Paragraph 8 -Subparagraph (b)(iii) -Subsection I Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph e Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Subparagraph (a), (b) -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Paragraph 8 -Subparagraph (c)(iii) -Subsection I Fair values as of the balance sheet date of all assets resulting from contracts that meet the criteria of being accounted for as derivative instruments, net of the effects of master netting arrangements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FIN39-1 -Paragraph 10A, 10B Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 4, 17 The aggregate amount of loans receivable that will be sold to other entities. Includes mortgage and all other loans (collectively, loans) not classified as held for investment. Such loans are stated at the lower of cost or market (approximates fair value). Mortgage loans exclude mortgage-backed securities which are considered a debt security (other loan). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Section Appendix B -Paragraph 128 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 65 -Paragraph 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Subparagraph (a) -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Paragraph 8 -Subparagraph (h) -Subsection I For an unclassified balance sheet, this item represents common stocks not categorized as trading. Equity securities represent ownership interests or the right to acquire ownership interests in corporations and other legal entities which ownership interest is represented by shares of common or preferred stock (which is not mandatorily redeemable or redeemable at the option of the holder), convertible securities, stock rights, or stock warrants. Unrealized gains and losses related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. No authoritative reference available. The cash flows associated with derivative instruments, such as swaps, forwards, options not entered into by broker dealer entities. No authoritative reference available. This element represents the amount by which the carrying amount exceeds the fair value of the investment. The amount is charged to income if the decline in fair value is deemed to be other than temporary. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 16 Carrying amount as of the balance sheet date of assets not otherwise specified in the taxonomy. Also serves as the sum of assets not individually reported in the financial statements, or not separately disclosed in notes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 The net change during the period in the amount of cash payments due to taxing authorities for taxes that are based on the reporting entity's earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Value of issued common stock that may be calculated differently depending on whether the stock is issued at par value, no par or stated value. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Article 5 Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 1 -Article 5 Aggregate cash and stock dividends declared for common stock during the period. Includes dividends from the redeemable stock of the parent company that is treated as capital but displayed in the balance sheet as mezzanine capital. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 14 -Subparagraph l The net gain or loss previously recognized in other comprehensive income that is a reclassification adjustment of other comprehensive income as a result of being recognized as a component of net periodic benefit cost for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph i Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7 -Subparagraph a Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 4 -Subparagraph d Interest, dividends, rents, ancillary and other revenues earned but not yet received by the entity on its investments. No authoritative reference available. Adjustment of accumulated other comprehensive income, net of tax, to reflect the application of SFAS 158 recognition provisions. It excludes the adjustment to other comprehensive income to eliminate additional minimum pension liability (AML), as well as related intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph A7 Sales of finance receivables and other loans - held for sale No authoritative reference available. The fair value of the assets held by the Entity for the benefit of separate account policyholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 10 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 03-1 -Paragraph 10-18 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 113 -Paragraph 53, 54 Number of treasury shares reissued during the period. Upon reissuance, these are common and preferred shares outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 No authoritative reference available. No authoritative reference available. The net change during the reporting period in the aggregate amount of obligations due within one year (or one business cycle). This may include trade payables, amounts due to related parties, royalties payable, and other obligations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Income (loss) from continuing operations and from discontinued operations after extraordinary items and income taxes but before the cumulative effect of a change in accounting principle, per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 154 -Paragraph 17 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 37 Excess of cost over proceeds of common stock issued under stock plans No authoritative reference available. Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 32 -Article 5 Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. This caption alerts the reader that one or more notes to the financial statements disclose pertinent information about the entity's commitments and contingencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 17 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 25 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 19 -Article 7 Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 The liability as of the balance sheet date to the policyholders for deposits held under the terms of insurance contracts. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 97 -Paragraph 15-21 This item represents the cost of preferred stocks, which are not categorized as trading. No authoritative reference available. Carrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized prior to adoption of SFAS 142 and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 43 No authoritative reference available. No authoritative reference available. The sum of adjustments which are added to net income to reflect net cash generated by operating activities using the indirect method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 No authoritative reference available. No authoritative reference available. Represents investments accounted for under the equity method that are entered into for strategic purposes and not solely for capital appreciation or for income generation. No authoritative reference available. Net gains on sales of securities available for sale and other assets No authoritative reference available. Accumulated change in equity from transactions and other events and circumstances from nonowner sources, net of tax effect, at fiscal year-end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 26 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 The cash outflow associated with other investments held by the entity for investment purposes not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Carrying value as of the balance sheet date of obligations incurred from short sales. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 7 -Paragraph 40 -IssueDate 2006-05-01 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 38 -IssueDate 2006-05-01 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 7 -Paragraph 19 -IssueDate 2006-05-01 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 7 -Paragraph 2 -IssueDate 2006-05-01 The cash outflow for debt initially having maturity due after one year or beyond the normal operating cycle, if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph b The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph a, b Total common and preferred stock (which is neither mandatorily redeemable nor redeemable at the option of the holder) equity securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) or for equity securities formerly categorized as available-for-sale or held-to-maturity which the entity held as of the date it opted to account for such securities at fair value. An enterprise may also categorize such a security as trading without the intent to sell it in the near term assuming the decision to categorize the security as trading occurred at acquisition; this is the reason why the trading category of investments in debt securities are bought and sold "principally" for sale in the near term. Transfers into and out of the trading category should be rare. Such financial instruments that are held as of the reporting date are measured at fair value with unrealized holding gains and losses (the difference between fair value and the previously reported carrying amount) included in earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 29 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number Q&A 115 -Paragraph 35 This item represents the aggregate fair value of investments in debt securities as of the balance sheet date and which are categorized as held-to-maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 19 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 137 Passenger aircraft, freighter aircraft, and flight equipment stated at cost, net of accumulated depreciation. Major additions, modifications and interest are capitalized. No authoritative reference available. Value of treasury stock reissued during the period. Upon reissuance, common and preferred stock are outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 1 -Section B -Paragraph 7 -Subparagraph b For an unclassified balance sheet, total of debt securities categorized neither as held-to-maturity nor trading. Such securities are reported at fair value; unrealized gains and losses of such securities are excluded from earnings and included in other comprehensive income, a separate component of shareholders' equity, unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 22 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13, 137 Relates principally to outstanding preferred stock or interest of a wholly owned subsidiary. Cash distributions on such preferred stock or interest are accounted for as interest expense. No authoritative reference available. The fair value of collateral received by the entity associated with securities borrowed that must be returned if the counterparty fulfills its obligations. It appears on the balance sheet as a liability and has a corresponding asset that appears on the balance sheet called Securities Received as Collateral. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 The cash flows associated with short-term investments, which consist of interest-bearing cash equivalents, time deposits, and investments with original maturities within one year from the date of purchase, such as commercial paper. No authoritative reference available. Treasury stock acquired using payments advanced to purchase shares No authoritative reference available. Income before minority interest and cumulative effect of accounting changes No authoritative reference available. The net change between the beginning and ending balance of cash on hand and non-interest bearing deposits No authoritative reference available. Description of risk management strategies, derivatives in hedging activities and nonhedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44, 45, 46, 47 Provision for benefits, claims and claims settlement expenses incurred during the year net of the effects of contracts assumed and ceded. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 5 -Article 7 The cumulative amount of depreciation, depletion and amortization (related to flight equipment) that has been recognized in the income statement. No authoritative reference available. Amounts recognized in other comprehensive income (but not yet recognized in net periodic benefit cost), including the net gain (loss) and net prior service cost (credit) arising during the period. Also includes reclassification adjustments out of other comprehensive income as a result of being recognized as components of net periodic benefit cost for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 22, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7 -Subparagraph a Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph C3 Income (loss) from continuing operations and from discontinued operations after extraordinary items and income taxes but before the cumulative effect of a change in accounting principle, per each share of common stock and dilutive common stock equivalents outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 154 -Paragraph 17 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 37 Gross appreciation or the gross loss in value of the total of unsold available-for-sale securities during the period being reported (except when designated as a fair value hedge). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 17 The cash outflow associated with mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. No authoritative reference available. No authoritative reference available. No authoritative reference available. The total amount of expense recognized during the period for future policy benefits, claims and claims adjustment costs, and for selling, general and administrative costs. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 5, 6, 7 -Article 7 Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No authoritative reference available. Payments advanced to purchase shares under structured share repurchase agreements providing for the purchase of shares over time. No authoritative reference available. This element may be used to capture the complete disclosure of reporting segments including data and tables. Reportable segments include those that that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10% or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 The carrying value as of the balance sheet date of the assets received as collateral against securities loaned to other broker-dealers. Borrowers of securities generally are required to provide collateral to the lenders of securities, commonly cash but sometimes other securities or standby letters of credit, with a value slightly higher than that of the securities borrowed. In instances where the entity is permitted to sell or repledge these securities, the entity reports the fair value of the collateral received and the related obligation to return the collateral as a liability Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 49 -IssueDate 2006-05-01 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 17 -Subparagraph (a)(3) Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 15 -Subparagraph a, b, c, d Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 91 The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 The cash flow from securities and spot commodities sold under the agreement to repurchase such investments. No authoritative reference available. The cash flows associated with unsecured obligations issued by banks, corporations and other borrowers to investors. No authoritative reference available. Shares purchased during the period under structured share repurchase agreements providing for the purchase of shares over time. No authoritative reference available. The net realized gains or losses on investments during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 3 -Subparagraph (a) -Article 7 Income before income taxes, minority interest and cumulative effect of accounting changes No authoritative reference available. Discloses how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact should be disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 60 -Subparagraph h Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-5 -Paragraph 8, 9 The equivalent summary total of separate account assets representing contract holder funds that are carried at fair value. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 03-1 -Section Summary Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 18 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 53, 54 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 03-1 -Paragraph 10-18 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 03-1 -Paragraph 19-23, 38 The net cash from (used in) all of the entity's operating activities, including those of discontinued operations, of the reporting entity. Operating activities generally involve producing and delivering goods and providing services. Operating activity cash flows include transactions, adjustments, and changes in value that are not defined as investing or financing activities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 Amount of net income (loss) for the period allocated to noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 18 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 10 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 14 -Subparagraph (e) -Article 9 The total amount of [all] liabilities that an Entity assumes in acquiring a business or in consideration for an asset received in a noncash (or part noncash) acquisition. Noncash is defined as transactions during a period that affect recognized assets or liabilities but that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 32 The cash outflow associated with the acquisition of a business, net of the cash acquired from the purchase. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 17 The aggregate of all deposit liabilities held by the entity, including foreign and domestic, interest and noninterest bearing; may include demand deposits, saving deposits, Negotiable Order of Withdrawal (NOW) and time deposits among others. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 12 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-DEP -Chapter 13 -Paragraph 37, 38, 39 -IssueDate 2006-05-01 The aggregate unrealized foreign currency transaction gain or loss (pretax) included in determining net income for the reporting period. Represents the aggregate of gains and losses on transactions that are unsettled as of the balance sheet date, which is therefore an adjustment to reconcile income (loss) from continuing operations to net cash provided by (used in) continuing operations. (Excludes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting entity's financial statements. For certain entities, primarily banks, that are dealers in foreign exchange, foreign currency transaction gains or losses may be disclosed as dealer gains or losses.) Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 52 -Paragraph 15, 20, 30 The amount of cash paid during the current period for interest owed on money borrowed; includes amount of interest capitalized Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 29 Value of common and preferred stock of an entity that have been repurchased by an entity. Treasury stock is issued but not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Technical Bulletin (FTB) -Number 85-6 -Paragraph 3 The cash outflow to acquire debt securities classified as available-for-sale securities, because they are not classified as either held-to-maturity securities or trading securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph a Includes mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. Mortgage loans on real estate and collateral, commercial and guaranteed loans are carried at unpaid principal balances less credit allowances and plus or minus adjustments for the accretion or amortization of discount or premium. Policy loans are carried at unpaid principal amount. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. No authoritative reference available. This item represents the cost of common stocks, which are not categorized as trading. No authoritative reference available. The net cash inflow (outflow) from investing activity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 The cash inflow associated with the sale of other investments not otherwise defined in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15, 16 Finance receivables held for sale No authoritative reference available. Pre tax adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains (losses). Includes gain (loss) on foreign currency forward exchange contracts. Includes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements. Includes the gain or loss on a derivative instrument or nonderivative financial instrument that may give rise to a foreign currency transaction gain or loss under SFAS 52 and that have been designated and have qualified as hedging instruments for hedges of the foreign currency exposure of a net investment in a foreign operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 52 -Paragraph 13, 20, 31 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 19, 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph c The carrying amount as of the balance sheet date of the following combination (a) the known and estimated amounts owed to insurers under reinsurance treaties or other arrangements and (b) any reserves for outstanding life insurance and accident and health claims, net of applicable reinsurance. No authoritative reference available. This item represents the entity's proportionate share for the period of the undistributed net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. Such amount typically reflects adjustments similar to those made in preparing consolidated statements, including adjustments to eliminate intercompany gains and losses, and to amortize, if appropriate, any difference between cost and underlying equity in net assets of the investee at the date of investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 19 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 9 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 6 -Subparagraph b Represents changes in Additional paid in capital not otherwise specified in the taxonomy. No authoritative reference available. The cost as of the balance sheet date of the assets received as collateral against securities loaned to other broker-dealers. Borrowers of securities generally are required to provide collateral to the lenders of securities, commonly cash but sometimes other securities or standby letters of credit, with a value slightly higher than that of the securities borrowed. No authoritative reference available. The cash outflow from the entity's earnings to the shareholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 20 -Subparagraph a The net change during the reporting period in the amount of benefits the ceding insurer expects to recover on insurance policies ceded to other insurance entities as of the balance sheet date for all guaranteed benefit types. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 12 -Paragraph 5 -Subparagraph b, c Unrealized market valuation losses on AIGFP super senior credit default swap portfolio No authoritative reference available. Carrying amount of premiums written on insurance contracts that have not been earned as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 13(a)(2) -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 16 -Article 12 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 13 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 97 -Paragraph 16, 17, 20 The cash flow from investments sold under the agreement to repurchase such investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 The cash inflow from a segregated fund account during the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26, 31 No authoritative reference available. No authoritative reference available. Liability as of the balance sheet date to the policyholders for funds held that are returnable under the terms of insurance contracts that were not separately reported. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 14 -Article 7 Total tax effect of the change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges after taxes. The change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 Other liabilities, hybrid financial instruments at fair value No authoritative reference available. Premiums earned on the income statement for all insurance and reinsurance contracts after subtracting any amounts ceded to another insurer and adding premiums assumed from other insurers. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 1 -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 113 -Paragraph 27 -Subparagraph a, b The after-tax amount of the change in the additional pension liability not yet recognized pursuant to SFAS 87 par 37 and 38 as a net periodic pension cost. If the additional pension liability required to be recognized exceeds the unrecognized prior service costs, then the excess (which is the net loss not yet recognized as net periodic pension cost) is to be recorded as a reduction of other comprehensive income, before adjusting for tax effects. If in a subsequent measurement, the amount of minimum liability is eliminated or adjusted, this adjustment is offset against other comprehensive income in Accumulated Comprehensive Income. This line also includes changes in an entity's share of an equity investee's increase (decrease) in additional pension liability not yet recognized as a net periodic pension cost. Eliminated upon adoption of SFAS 158. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 19, 20-25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph c(5) Payments advanced during the period to purchase shares under structured share repurchase agreements providing for the purchase of shares over time. No authoritative reference available. No authoritative reference available. No authoritative reference available. For an unclassified balance sheet, this item represents preferred stocks not categorized as trading. Equity securities represent ownership interests or the right to acquire ownership interests in corporations and other legal entities which ownership interest is represented by shares of common or preferred stock (which is not mandatorily redeemable or redeemable at the option of the holder), convertible securities, stock rights, or stock warrants. Unrealized gains and losses related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. No authoritative reference available. Description containing the entire income tax disclosure. Examples include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 Interest credited to policyholder accounts included in financing activities No authoritative reference available. Aggregate amounts payable to broker-dealers and clearing organizations include amounts payable for securities failed to receive, certain deposits received for securities loaned, amounts payable to clearing organizations on open transactions, and floor-brokerage payables. In addition, the net receivable or payable arising from unsettled trades would be reflected in those captions. A broker-dealer that purchases securities, either for its own account or for a customer's account, but does not receive the securities on the settlement date records the amount of money representing the purchase price of the securities, including any accrued interest, as a liability to the selling broker-dealer. This liability is paid when the securities are received by the purchasing broker-dealer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 80 -Subparagraph Exhibit 4-8, 4 -IssueDate 2006-05-01 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 24-31, 35 -IssueDate 2006-05-01 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 7 -Paragraph 24, 25 -IssueDate 2006-05-01 Disclosure of compensation-related costs for share-based compensation which may include disclosure of policies, compensation plan details, allocation of stock compensation, incentive distributions, share-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Income (loss) from continuing operations and from discontinued operations after extraordinary items and income taxes but before the cumulative effect of a change in accounting principle. No authoritative reference available. Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12 -Subparagraph b Net amount of deferred policy acquisition costs capitalized on contracts remaining in force as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 28, 29, 30, 31 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 97 -Paragraph 22 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 60 -Subparagraph c Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 7 -Article 7 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 95-1 -Paragraph 19-23 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 120 -Paragraph 5, 6 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 16 -Article 12 The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from nonowner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 8, 9, 10, 11, 12, 13, 14 This element represents Other Comprehensive Income (Loss), Net of Tax, for the period. Includes deferred gains (losses) on qualifying hedges, unrealized holding gains (losses) on available-for-sale securities, minimum pension liability, and cumulative translation adjustment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 22, 23, 24, 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Pre tax change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges, net of reclassifications into earnings during the period. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset or liability or a forecasted transaction that is attributable to a particular risk. Includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 31, 46 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph (b)(1) Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 46 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 24, 26 Transactions that result in no cash inflows or outflows in the period in which they occur, but affect net income and thus are removed when calculating net cash flow from operating activities using the indirect method. This element is used when there is not a more specific and appropriate element. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Other investments not otherwise specified in the taxonomy that will be realized in a short period of time, usually less than one year or the normal operating cycle, whichever is longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Subsection I Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 5 -Article 9 The valuation allowance as of the balance sheet date to reduce the gross amount of reinsurance assets to estimated net realizable value. No authoritative reference available. The net cash inflow (outflow) from financing activity for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 26 Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. For classified balance sheets, used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer); for unclassified balance sheets, used to reflect the total liabilities (regardless of due date). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that have been repurchased). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued includes shares outstanding and shares held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 Net cash inflow (outflow) in all other deposits that have not otherwise been stated in the taxonomy. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-DEP -Chapter 13 -IssueDate 2006-05-01 Represents (a) changes in the carrying amount, net of allowance for doubtful accounts, of all premiums and other types of receivables due from other persons or entities and (b) changes in the carrying amount of the following combination (1) the known and estimated amounts owed to insurers under reinsurance treaties or other arrangements and (2) any reserves for outstanding life insurance and accident and health claims, net of applicable reinsurance. No authoritative reference available. The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable income (loss) from continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph a The net change during the reporting period in the balance sheet value of capitalized sales costs that are associated with acquiring a new insurance customers. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Aggregate dividends paid during the period for each share of common stock outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 In an unclassified balance sheet, carrying value as of the balance sheet date of unsecured obligations issued by banks, corporations and other borrowers to investors. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 The increases (decreases) in the market value of derivative instruments, including options, swaps, futures, and forward contracts, which were included in earnings in the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The cash outflow to acquire equity securities classified as available-for-sale securities, because they are not classified as trading securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph b Carrying amount as of the balance sheet date, net of allowance for doubtful accounts, of all premiums and other types of receivables due from other persons or entities. No authoritative reference available. This element can be used to disclose the entire quarterly financial data disclosure in the annual financial statements as a single block of text. The disclosure includes a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income (loss) before extraordinary items and cumulative effect of a change in accounting principle and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished. Alternatively, the details of this disclosure can be reported using the elements in this group, or by using other taxonomy elements and applying the appropriate quarterly date and period contexts when creating an instance document. For example, the element for "Interest and Dividend Income, Operating" may be used by financial institutions from the Statement of Income, applying the appropriate quarterly date and period context when creating an instance document. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section G -Subsection 1 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 28 -Paragraph 23, 24 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 28 -Paragraph 30 -Subparagraph a-j Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 302 -Paragraph a The total of financial instruments that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) or for debt and equity securities formerly categorized as available-for-sale or held-to-maturity which the entity held as of the date it opted to account for such securities at fair value. An enterprise may also categorize such a security as trading without the intent to sell it in the near term assuming the decision to categorize the security as trading occurred at acquisition; this is the reason why the trading category of investments in debt and equity securities are bought and sold "principally" for sale in the near term. Transfers into and out of the trading category should be rare. Such financial instruments that are held as of the reporting date are measured at fair value with unrealized holding gains and losses (the difference between fair value and the previously reported carrying amount) included in earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 29 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number Q&A 115 -Paragraph 35 The cash outflow to acquire a debt financial instrument for which the entity has the ability and intent to hold until maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 17 -Subparagraph a The valuation allowance as of the balance sheet date to reduce the gross amount of receivables to estimated net realizable value, which would be presented in parentheses on the face of the balance sheet. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 5 -Article 7 The effect on net income, net of income taxes, of a change in accounting principle reported on the income statement in the period, which occurred before retrospective adjustments were required. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 20 -Paragraph 19, 20 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 9 -Paragraph 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 36 -Subparagraph a Cash outflow for origination of loan for purchasing common stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 18 No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The amount of income (loss) from the cumulative effect of a change in accounting principle, net of tax effect, per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 20 -Paragraph 19, 20 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 37 Carrying amount of the equity interests owned by noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 27 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 20 -Article 7 The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 -Subparagraph c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 14 -Article 5 The effect of exchange rate changes on cash balances held in foreign currencies. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 25 No authoritative reference available. No authoritative reference available. The sum of the known and estimated amounts payable as of the balance sheet date to life insurance policyholders that relates to insured events which can be viewed as either (a) the present value of future benefits to be paid to or on behalf of policyholders and expenses less the present value of future net premiums payable under the insurance contracts or (b) the accumulated amount of net premiums already collected less the accumulated amount of benefits and expenses already paid to or on behalf of policyholders. Additionally, the amount needed to reflect the estimated ultimate cost of settling claims relating to accident and health insurance insured events that have occurred on or before a particular date (ordinarily, the balance sheet date) and the amount needed to provide for the estimated ultimate cost required to investigate and settle claims relating to insured events that have occurred on or before a particular date (ordinarily, the balance sheet date), whether or not reported to the insurer at that date. No authoritative reference available. The cash inflow associated with the sale or maturity (principal being due) of securities not classified as either held-to-maturity securities or trading securities which are classified as available-for-sale securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 18 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 16 -Subparagraph b The cash flow from investments purchased under the agreement to resell such investment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 15 Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of APIC associated with common AND preferred stock. For APIC associated with only common stock, use the element Additional Paid In Capital, Common Stock. For APIC associated with only preferred stock, use the element Additional Paid In Capital, Preferred Stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 98-5 -Paragraph 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 62, 63 The component of income tax expense for the period representing the net change in the entity's deferred tax assets and liabilities pertaining to continuing operations. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (h) -Article 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 45 -Subparagraph b Funds held by the ceding insurer on behalf the reinsurer, including funds held in trust, under reinsurance treaties or contracts with the assuming insurer as security for the payment of the obligations thereunder, which represent a liability of the ceding insurer. There is another concept for the corresponding asset of the reinsurer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 13(c) -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-LHI -Section Glossary -IssueDate 2006-05-01 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-PLI -Section Glossary -IssueDate 2006-09-01 The amount of net income or loss for the period per each share of common stock outstanding during the reporting period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 21 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 128 -Paragraph 36, 37, 38 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 20 -Article 5 No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. The carrying value as of the balance sheet date of securities that an institution sells and agrees to repurchase (the identical or substantially the same securities) as a seller-borrower at a specified date for a specified price, also known as a repurchase agreement, or repo. Most repos involve obligations of the federal government or its agencies, but other financial instruments, such as commercial paper, banker's acceptances, and negotiable certificates of deposit, are sometimes used in repos. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 13 -Subparagraph 1 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 100 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 36 -IssueDate 2006-05-01 Amounts due that are not specifically identified in the taxonomy and are due from other broker-dealers. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 80 -Subparagraph Exhibit 4-8, 4 -IssueDate 2006-05-01 XML 14 R1.xml IDEA: Document And Entity Information 1.0.0.3 false Document And Entity Information (USD $) false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 0 aig_DocumentAndEntityInformationAbstract aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 3 1 dei_EntityRegistrantName dei false na duration normalizedstring No definition available. false false false false false false false false false 1 false false 0 0 American International Group, Inc. American International Group, Inc. false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 4 1 dei_EntityCentralIndexKey dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 0000005272 0000005272 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 5 1 dei_DocumentType dei false na duration normalizedstring No definition available. false false false false false false false false false 1 false false 0 0 10-K 10-K false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 6 1 dei_DocumentReportType dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 Annual Report Annual Report false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 7 1 dei_DocumentPeriodEndDate dei false na duration date No definition available. false false false false false false false false false 1 false false 0 0 2007-12-31 2007-12-31 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 8 1 dei_AmendmentFlag dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 false false false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 9 1 dei_CurrentFiscalYearEndDate dei false na duration monthday No definition available. false false false false false false false false false 1 false false 0 0 --12-31 --12-31 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 10 1 dei_EntityWellKnownSeasonedIssuer dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 No No false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 11 1 dei_EntityVoluntaryFilers dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 Yes Yes false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 12 1 dei_EntityCurrentReportingStatus dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 Yes Yes false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 13 1 dei_EntityFilerCategory dei false na duration na No definition available. false false false false false false false false false 1 false false 0 0 Large Accelerated Filer Large Accelerated Filer false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 14 1 dei_EntityPublicFloat dei false credit instant monetary No definition available. false false false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 true true 152287000000 152287000000 false false No definition available. No authoritative reference available. false 15 1 dei_EntityCommonStockSharesOutstanding dei false na instant shares No definition available. false false false false false false false false false 1 false false 0 0 false false 2 false true 2522336771 2522336771 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false false 3 14 false NoRounding NoRounding UnKnown false true XML 15 R2.xml IDEA: Balance Sheet 1.0.0.3 true Balance Sheet (USD $) false 1 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 2 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 3 $ false false usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 2 2 aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 33 2 aig_InvestmentsAndFinancialServicesAssets aig false debit instant monetary Total investments and financial services assets false false false false false false false false false 1 true true 851961000000 851961000000.00 false false 2 true true 792874000000 792874000000.00 false false 3 false false 0 0 false false Total investments and financial services assets No authoritative reference available. true 34 2 aig_CashOnHandAndNonInterestBearingDeposits aig false debit instant monetary Cash represents cash on hand and non-interest bearing demand deposits. false false false false false false false false false 1 false true 2284000000 2284000000.00 false false 2 false true 1590000000 1590000000.00 false false 3 false true 1897000000 1897000000.00 false false Cash represents cash on hand and non-interest bearing demand deposits. No authoritative reference available. false 35 2 us-gaap_AccruedInvestmentIncomeReceivable us-gaap true debit instant monetary Interest, dividends, rents, ancillary and other revenues earned but not yet received by the entity on its investments. false false false false false false false false false 1 false true 6587000000 6587000000.00 false false 2 false true 6091000000 6091000000.00 false false 3 false false 0 0 false false Interest, dividends, rents, ancillary and other revenues earned but not yet received by the entity on its investments. No authoritative reference available. false 36 2 us-gaap_PremiumsAndOtherReceivablesNet us-gaap true debit instant monetary Carrying amount as of the balance sheet date, net of allowance for doubtful accounts, of all premiums and other types of... false false false false false false false false false 1 false true 18395000000 18395000000.00 false false 2 false true 17789000000 17789000000.00 false false 3 false false 0 0 false false Carrying amount as of the balance sheet date, net of allowance for doubtful accounts, of all premiums and other types of receivables due from other persons or entities. No authoritative reference available. false 37 2 us-gaap_AllowanceForDoubtfulAccountsPremiumsAndOtherReceivables us-gaap true credit instant monetary The valuation allowance as of the balance sheet date to reduce the gross amount of receivables to estimated net realizable... false false false false false false false false false 1 false true 662000000 662000000.00 false false 2 false true 756000000 756000000.00 false false 3 false false 0 0 false false The valuation allowance as of the balance sheet date to reduce the gross amount of receivables to estimated net realizable value, which would be presented in parentheses on the face of the balance sheet. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 5 -Article 7 false 38 2 us-gaap_ReinsuranceRecoverables us-gaap true debit instant monetary The known and estimated amount recoverable as of the balance sheet date from reinsurers for claims paid or incurred by the... false false false false false false false false false 1 false true 23103000000 23103000000.00 false false 2 false true 23355000000 23355000000.00 false false 3 false false 0 0 false false The known and estimated amount recoverable as of the balance sheet date from reinsurers for claims paid or incurred by the ceding insurer and associated claims settlement expenses, including estimated amounts for claims incurred but not reported, and policy benefits, net of any related valuation allowance. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 6 -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 113 -Paragraph 14, 16, 27, 113 false 39 2 aig_AllowanceForReinsuranceRecoverables aig false credit instant monetary The valuation allowance as of the balance sheet date to reduce the gross amount of reinsurance assets to estimated net... false false false false false false false false false 1 false true 520000000 520000000.00 false false 2 false true 536000000 536000000.00 false false 3 false false 0 0 false false The valuation allowance as of the balance sheet date to reduce the gross amount of reinsurance assets to estimated net realizable value. No authoritative reference available. false 40 2 us-gaap_DeferredPolicyAcquisitionCosts us-gaap true debit instant monetary Net amount of deferred policy acquisition costs capitalized on contracts remaining in force as of the balance sheet date. false false false false false false false false false 1 false true 43150000000 43150000000.00 false false 2 false true 37235000000 37235000000.00 false false 3 false false 0 0 false false Net amount of deferred policy acquisition costs capitalized on contracts remaining in force as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 28, 29, 30, 31 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 97 -Paragraph 22 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 60 -Subparagraph c Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 7 -Article 7 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 95-1 -Paragraph 19-23 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 120 -Paragraph 5, 6 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 16 -Article 12 false 41 2 aig_InvestmentsInPartiallyOwnedCompanies aig false debit instant monetary Represents investments accounted for under the equity method that are entered into for strategic purposes and not solely for... false false false false false false false false false 1 false true 654000000 654000000.00 false false 2 false true 1101000000 1101000000.00 false false 3 false false 0 0 false false Represents investments accounted for under the equity method that are entered into for strategic purposes and not solely for capital appreciation or for income generation. No authoritative reference available. false 42 2 us-gaap_PropertyPlantAndEquipmentNet us-gaap true debit instant monetary Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others,... false false false false false false false false false 1 false true 5518000000 5518000000.00 false false 2 false true 4381000000 4381000000.00 false false 3 false false 0 0 false false Tangible assets that are held by an entity for use in the production or supply of goods and services, for rental to others, or for administrative purposes and that are expected to provide economic benefit for more than one year; net of accumulated depreciation. Examples include land, buildings, and production equipment. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 13 -Subparagraph a -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 12 -Paragraph 5 -Subparagraph b, c false 43 2 us-gaap_AccumulatedDepreciationDepletionAndAmortizationPropertyPlantAndEquipment us-gaap true credit instant monetary The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not... false false false false false false false false false 1 false true 5446000000 5446000000.00 false false 2 false true 4940000000 4940000000.00 false false 3 false false 0 0 false false The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 5 -Subparagraph c Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 14 -Article 5 false 44 2 us-gaap_SeparateAccountAssets us-gaap true debit instant monetary The fair value of the assets held by the Entity for the benefit of separate account policyholders. false false false false false false false false false 1 false true 78684000000 78684000000.00 false false 2 false true 70277000000 70277000000.00 false false 3 false false 0 0 false false The fair value of the assets held by the Entity for the benefit of separate account policyholders. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 10 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 03-1 -Paragraph 10-18 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 113 -Paragraph 53, 54 false 45 2 us-gaap_Goodwill us-gaap true debit instant monetary Carrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized... false false false false false false false false false 1 false true 9414000000 9414000000.00 false false 2 false true 8628000000 8628000000.00 false false 3 false false 0 0 false false Carrying amount as of the balance sheet date, which is the cumulative amount paid, adjusted for any amortization recognized prior to adoption of SFAS 142 and for any impairment charges, in excess of the fair value of net assets acquired in one or more business combination transactions. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 43 false 46 2 us-gaap_OtherAssets us-gaap true debit instant monetary Carrying amount as of the balance sheet date of assets not otherwise specified in the taxonomy. Also serves as the sum of... false false false false false false false false false 1 false true 20755000000 20755000000.00 false false 2 false true 16089000000 16089000000.00 false false 3 false false 0 0 false false Carrying amount as of the balance sheet date of assets not otherwise specified in the taxonomy. Also serves as the sum of assets not individually reported in the financial statements, or not separately disclosed in notes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 false 47 2 us-gaap_Assets us-gaap true debit instant monetary Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future... false false false false false false false false false 1 false true 1060505000000 1060505000000.00 false false 2 false true 979410000000 979410000000.00 false false 3 false false 0 0 false false Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Concepts (CON) -Number 6 -Paragraph 25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 18 -Article 5 true 48 2 us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 49 2 us-gaap_LiabilityForClaimsAndClaimsAdjustmentExpensePropertyCasualtyLiability us-gaap true credit instant monetary The amount needed to reflect the estimated ultimate cost of settling claims relating to casualty insurance insured events... false false false false false false false false false 1 false true 85500000000 85500000000.00 false false 2 false true 79999000000 79999000000.00 false false 3 false false 0 0 false false The amount needed to reflect the estimated ultimate cost of settling claims relating to casualty insurance insured events that have occurred on or before a particular date (ordinarily, the balance sheet date) and the amount needed to provide for the estimated ultimate cost required to investigate and settle claims relating to insured events that have occurred on or before a particular date (ordinarily, the balance sheet date), whether or not reported to the insurer at that date. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 18 -Article 12 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 94-5 -Paragraph 11 -Subparagraph a false 50 2 us-gaap_UnearnedPremiums us-gaap true credit instant monetary Carrying amount of premiums written on insurance contracts that have not been earned as of the balance sheet date. false false false false false false false false false 1 false true 28022000000 28022000000.00 false false 2 false true 26271000000 26271000000.00 false false 3 false false 0 0 false false Carrying amount of premiums written on insurance contracts that have not been earned as of the balance sheet date. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 13(a)(2) -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 16 -Article 12 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 13 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 97 -Paragraph 16, 17, 20 false 51 2 aig_FuturePolicyBenefitsForLifeAndAccidentAndHealthInsuranceContracts aig false credit instant monetary The sum of the known and estimated amounts payable as of the balance sheet date to life insurance policyholders that relates... false false false false false false false false false 1 false true 136068000000 136068000000.00 false false 2 false true 121004000000 121004000000.00 false false 3 false false 0 0 false false The sum of the known and estimated amounts payable as of the balance sheet date to life insurance policyholders that relates to insured events which can be viewed as either (a) the present value of future benefits to be paid to or on behalf of policyholders and expenses less the present value of future net premiums payable under the insurance contracts or (b) the accumulated amount of net premiums already collected less the accumulated amount of benefits and expenses already paid to or on behalf of policyholders. Additionally, the amount needed to reflect the estimated ultimate cost of settling claims relating to accident and health insurance insured events that have occurred on or before a particular date (ordinarily, the balance sheet date) and the amount needed to provide for the estimated ultimate cost required to investigate and settle claims relating to insured events that have occurred on or before a particular date (ordinarily, the balance sheet date), whether or not reported to the insurer at that date. No authoritative reference available. false 52 2 us-gaap_PolicyholderContractDeposits us-gaap true credit instant monetary The liability as of the balance sheet date to the policyholders for deposits held under the terms of insurance contracts. false false false false false false false false false 1 false true 258459000000 258459000000.00 false false 2 false true 248264000000 248264000000.00 false false 3 false false 0 0 false false The liability as of the balance sheet date to the policyholders for deposits held under the terms of insurance contracts. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 97 -Paragraph 15-21 false 53 2 us-gaap_OtherPolicyholderFunds us-gaap true credit instant monetary Liability as of the balance sheet date to the policyholders for funds held that are returnable under the terms of insurance... false false false false false false false false false 1 false true 12599000000 12599000000.00 false false 2 false true 10986000000 10986000000.00 false false 3 false false 0 0 false false Liability as of the balance sheet date to the policyholders for funds held that are returnable under the terms of insurance contracts that were not separately reported. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 14 -Article 7 false 54 2 us-gaap_AccountsPayable us-gaap true credit instant monetary Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and... false false false false false false false false false 1 false true 6310000000 6310000000.00 false false 2 false true 5305000000 5305000000.00 false false 3 false false 0 0 false false Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. For classified balance sheets, used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer); for unclassified balance sheets, used to reflect the total liabilities (regardless of due date). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19 -Subparagraph a -Article 5 false 55 2 aig_InsuranceBalancesPayable aig false credit instant monetary The carrying amount as of the balance sheet date of the following combination (a) the known and estimated amounts owed to... false false false false false false false false false 1 false true 4878000000 4878000000.00 false false 2 false true 3789000000 3789000000.00 false false 3 false false 0 0 false false The carrying amount as of the balance sheet date of the following combination (a) the known and estimated amounts owed to insurers under reinsurance treaties or other arrangements and (b) any reserves for outstanding life insurance and accident and health claims, net of applicable reinsurance. No authoritative reference available. false 56 2 us-gaap_FundsHeldUnderReinsuranceAgreementsLiability us-gaap true credit instant monetary Funds held by the ceding insurer on behalf the reinsurer, including funds held in trust, under reinsurance treaties or... false false false false false false false false false 1 false true 2501000000 2501000000.00 false false 2 false true 2602000000 2602000000.00 false false 3 false false 0 0 false false Funds held by the ceding insurer on behalf the reinsurer, including funds held in trust, under reinsurance treaties or contracts with the assuming insurer as security for the payment of the obligations thereunder, which represent a liability of the ceding insurer. There is another concept for the corresponding asset of the reinsurer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 13(c) -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-LHI -Section Glossary -IssueDate 2006-05-01 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-PLI -Section Glossary -IssueDate 2006-09-01 false 57 2 us-gaap_AccruedIncomeTaxesPayable us-gaap true credit instant monetary Carrying amount as of the balance sheet date of the unpaid sum of the known and estimated amounts payable to satisfy all... false false false false false false false false false 1 false true 3823000000 3823000000.00 false false 2 false true 9546000000 9546000000.00 false false 3 false false 0 0 false false Carrying amount as of the balance sheet date of the unpaid sum of the known and estimated amounts payable to satisfy all currently due domestic and foreign income tax obligations. In theory, the sum represents amounts due to tax jurisdictions based on tax returns as if they were ready and available for filing on and as of the balance sheet date, plus accrued interest and penalties pertaining to amounts of tax uncertainties. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 15(b)(1) -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 15 -Subparagraph (1) -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 15, 21 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Section Appendix E -Paragraph 289 false 58 2 aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 59 2 us-gaap_SecuritiesSoldUnderAgreementsToRepurchase us-gaap true credit instant monetary The carrying value as of the balance sheet date of securities that an institution sells and agrees to repurchase (the... false false false false false false false false false 1 false true 8331000000 8331000000.00 false false 2 false true 19677000000 19677000000.00 false false 3 false false 0 0 false false The carrying value as of the balance sheet date of securities that an institution sells and agrees to repurchase (the identical or substantially the same securities) as a seller-borrower at a specified date for a specified price, also known as a repurchase agreement, or repo. Most repos involve obligations of the federal government or its agencies, but other financial instruments, such as commercial paper, banker's acceptances, and negotiable certificates of deposit, are sometimes used in repos. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 13 -Subparagraph 1 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 100 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 36 -IssueDate 2006-05-01 false 60 2 us-gaap_PayablesToBrokerDealersAndClearingOrganizations us-gaap true credit instant monetary Aggregate amounts payable to broker-dealers and clearing organizations include amounts payable for securities failed to... false false false false false false false false false 1 false true 10568000000 10568000000.00 false false 2 false true 6174000000 6174000000.00 false false 3 false false 0 0 false false Aggregate amounts payable to broker-dealers and clearing organizations include amounts payable for securities failed to receive, certain deposits received for securities loaned, amounts payable to clearing organizations on open transactions, and floor-brokerage payables. In addition, the net receivable or payable arising from unsettled trades would be reflected in those captions. A broker-dealer that purchases securities, either for its own account or for a customer's account, but does not receive the securities on the settlement date records the amount of money representing the purchase price of the securities, including any accrued interest, as a liability to the selling broker-dealer. This liability is paid when the securities are received by the purchasing broker-dealer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 80 -Subparagraph Exhibit 4-8, 4 -IssueDate 2006-05-01 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 24-31, 35 -IssueDate 2006-05-01 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 7 -Paragraph 24, 25 -IssueDate 2006-05-01 false 61 2 us-gaap_FinancialInstrumentsSoldNotYetPurchasedAtFairValue us-gaap true credit instant monetary Carrying value as of the balance sheet date of obligations incurred from short sales. false false false false false false false false false 1 false true 4709000000 4709000000.00 false false 2 false true 4076000000 4076000000.00 false false 3 false false 0 0 false false Carrying value as of the balance sheet date of obligations incurred from short sales. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 7 -Paragraph 40 -IssueDate 2006-05-01 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 38 -IssueDate 2006-05-01 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 7 -Paragraph 19 -IssueDate 2006-05-01 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 7 -Paragraph 2 -IssueDate 2006-05-01 false 62 2 us-gaap_DerivativeLiabilities us-gaap true credit instant monetary Fair values as of the balance sheet date of all liabilities resulting from contracts that meet the criteria of being... false false false false false false false false false 1 false true 20613000000 20613000000.00 false false 2 false true 11401000000 11401000000.00 false false 3 false false 0 0 false false Fair values as of the balance sheet date of all liabilities resulting from contracts that meet the criteria of being accounted for as derivative instruments, net of the effects of master netting arrangements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FIN39-1 -Paragraph 10A, 10B Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 4, 17 false 63 2 us-gaap_Deposits us-gaap true credit instant monetary The aggregate of all deposit liabilities held by the entity, including foreign and domestic, interest and noninterest... false false false false false false false false false 1 false true 4903000000 4903000000.00 false false 2 false true 5249000000 5249000000.00 false false 3 false false 0 0 false false The aggregate of all deposit liabilities held by the entity, including foreign and domestic, interest and noninterest bearing; may include demand deposits, saving deposits, Negotiable Order of Withdrawal (NOW) and time deposits among others. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 12 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-DEP -Chapter 13 -Paragraph 37, 38, 39 -IssueDate 2006-05-01 false 64 2 us-gaap_CommercialPaper us-gaap true credit instant monetary In an unclassified balance sheet, carrying value as of the balance sheet date of unsecured obligations issued by banks,... false false false false false false false false false 1 false true 13114000000 13114000000.00 false false 2 false true 13363000000 13363000000.00 false false 3 false false 0 0 false false In an unclassified balance sheet, carrying value as of the balance sheet date of unsecured obligations issued by banks, corporations and other borrowers to investors. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 20 -Article 5 false 65 2 us-gaap_LongTermDebt us-gaap true credit instant monetary For an unclassified balance sheet, total of (current and noncurrent) carrying amounts of long-term borrowings as of the... false false false false false false false false false 1 false true 162935000000 162935000000.00 false false 2 false true 135316000000 135316000000.00 false false 3 false false 0 0 false false For an unclassified balance sheet, total of (current and noncurrent) carrying amounts of long-term borrowings as of the balance sheet date, which may include notes payable, bonds payable, commercial loans, mortgage loans, convertible debt, subordinated debt and other types of long term debt. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 22 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 16 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 47 -Paragraph 10 -Subparagraph b false 66 2 us-gaap_SeparateAccountsLiability us-gaap true credit instant monetary The equivalent summary total of separate account assets representing contract holder funds that are carried at fair value. false false false false false false false false false 1 false true 78684000000 78684000000.00 false false 2 false true 70277000000 70277000000.00 false false 3 false false 0 0 false false The equivalent summary total of separate account assets representing contract holder funds that are carried at fair value. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 03-1 -Section Summary Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 18 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 53, 54 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 03-1 -Paragraph 10-18 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 03-1 -Paragraph 19-23, 38 false 67 2 us-gaap_ObligationToReturnSecuritiesReceivedAsCollateral us-gaap true credit instant monetary The fair value of collateral received by the entity associated with securities borrowed that must be returned if the... false false false false false false false false false 1 false true 81965000000 81965000000.00 false false 2 false true 70198000000 70198000000.00 false false 3 false false 0 0 false false The fair value of collateral received by the entity associated with securities borrowed that must be returned if the counterparty fulfills its obligations. It appears on the balance sheet as a liability and has a corresponding asset that appears on the balance sheet called Securities Received as Collateral. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 false 68 2 us-gaap_MinorityInterest us-gaap true credit instant monetary Carrying amount of the equity interests owned by noncontrolling shareholders, partners, or other equity holders in one or... false false false false false false false false false 1 false true 10422000000 10422000000.00 false false 2 false true 7778000000 7778000000.00 false false 3 false false 0 0 false false Carrying amount of the equity interests owned by noncontrolling shareholders, partners, or other equity holders in one or more of the entities included in the reporting entity's consolidated financial statements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 27 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (a) -Subparagraph 20 -Article 7 false 69 2 us-gaap_OtherLiabilities us-gaap true credit instant monetary Carrying amount as of the balance sheet date of liabilities not otherwise specified in the taxonomy. Also serves as the sum... false false false false false false false false false 1 false true 30200000000 30200000000.00 false false 2 false true 26267000000 26267000000.00 false false 3 false false 0 0 false false Carrying amount as of the balance sheet date of liabilities not otherwise specified in the taxonomy. Also serves as the sum of liabilities not individually reported in the financial statements, or not separately disclosed in notes. No authoritative reference available. false 70 2 aig_HybridFinancialInstrumentsAtFairValue aig false credit instant monetary Other liabilities, hybrid financial instruments at fair value false false false false false false false false false 1 false true 47000000 47000000.00 false false 2 false true 111000000 111000000.00 false false 3 false false 0 0 false false Other liabilities, hybrid financial instruments at fair value No authoritative reference available. false 71 2 us-gaap_Liabilities us-gaap true credit instant monetary Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable... false false false false false false false false false 1 false true 964604000000 964604000000.00 false false 2 false true 877542000000 877542000000.00 false false 3 false false 0 0 false false Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No authoritative reference available. true 72 2 aig_PreferredStockholdersEquityInSubsidiaryCompanies aig false credit instant monetary Relates principally to outstanding preferred stock or interest of a wholly owned subsidiary. Cash distributions on such... false false false false false false false false false 1 false true 100000000 100000000.00 false false 2 false true 191000000 191000000.00 false false 3 false false 0 0 false false Relates principally to outstanding preferred stock or interest of a wholly owned subsidiary. Cash distributions on such preferred stock or interest are accounted for as interest expense. No authoritative reference available. false 73 2 us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 74 2 us-gaap_CommonStockValue us-gaap true credit instant monetary Value of issued common stock that may be calculated differently depending on whether the stock is issued at par value, no par... false false false false false false false false false 1 false true 6878000000 6878000000.00 false false 2 false true 6878000000 6878000000.00 false false 3 false true 6878000000 6878000000.00 false false Value of issued common stock that may be calculated differently depending on whether the stock is issued at par value, no par or stated value. Note: elements for number of common shares, par value and other disclosure concepts are in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Article 5 false 75 2 us-gaap_CommonStockParOrStatedValuePerShare us-gaap true na instant decimal Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. false false false false false false false false true 1 true true 2.50 2.50 false false 2 true true 2.50 2.50 false false 3 false false 0 0 false false Face amount or stated value of common stock per share; generally not indicative of the fair market value per share. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false 76 2 us-gaap_CommonStockSharesAuthorized us-gaap true na instant shares The maximum number of common shares permitted to be issued by an entity's charter and bylaws. false false false false false false false false false 1 false true 5000000000 5000000000.00 false false 2 false true 5000000000 5000000000.00 false false 3 false false 0 0 false false The maximum number of common shares permitted to be issued by an entity's charter and bylaws. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false 77 2 us-gaap_CommonStockSharesIssued us-gaap true na instant shares Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that have... false false false false false false false false false 1 false true 2751327476 2751327476.00 false false 2 false true 2751327476 2751327476.00 false false 3 false false 0 0 false false Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that have been repurchased). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued includes shares outstanding and shares held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 30 -Article 5 false 78 2 us-gaap_AdditionalPaidInCapital us-gaap true credit instant monetary Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions... false false false false false false false false false 1 false true 2848000000 2848000000.00 false false 2 false true 2590000000 2590000000.00 false false 3 false true 2339000000 2339000000.00 false false Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of APIC associated with common AND preferred stock. For APIC associated with only common stock, use the element Additional Paid In Capital, Common Stock. For APIC associated with only preferred stock, use the element Additional Paid In Capital, Preferred Stock. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 98-5 -Paragraph 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 62, 63 false 79 2 aig_AdvancePaymentsForSharePurchase aig false debit instant monetary Payments advanced to purchase shares under structured share repurchase agreements providing for the purchase of shares over... false false false false false false false false false 1 false true -912000000 -912000000.00 false false 2 false false 0 0 false false 3 false false 0 0 false false Payments advanced to purchase shares under structured share repurchase agreements providing for the purchase of shares over time. No authoritative reference available. false 80 2 us-gaap_RetainedEarningsAccumulatedDeficit us-gaap true credit instant monetary The cumulative amount of the reporting entity's undistributed earnings or deficit. false false false false false false false false false 1 false true 89029000000 89029000000.00 false false 2 false true 84996000000 84996000000.00 false false 3 false true 72330000000 72330000000.00 false false The cumulative amount of the reporting entity's undistributed earnings or deficit. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 81 2 us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTax us-gaap true credit instant monetary Accumulated change in equity from transactions and other events and circumstances from nonowner sources, net of tax effect,... false false false false false false false false false 1 false true 4643000000 4643000000.00 false false 2 false true 9110000000 9110000000.00 false false 3 false true 6967000000 6967000000.00 false false Accumulated change in equity from transactions and other events and circumstances from nonowner sources, net of tax effect, at fiscal year-end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, and unrealized gains and losses on certain investments in debt and equity securities as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 26 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 31 -Article 5 false 82 2 us-gaap_TreasuryStockValue us-gaap true debit instant monetary Value of common and preferred stock of an entity that have been repurchased by an entity. Treasury stock is issued but not... false false false false false false false false false 1 false true -6685000000 -6685000000.00 false false 2 false true -1897000000 -1897000000.00 false false 3 false true -2197000000 -2197000000.00 false false Value of common and preferred stock of an entity that have been repurchased by an entity. Treasury stock is issued but not outstanding. This stock has no voting rights and receives no dividends. Note that treasury stock may be recorded at its total cost or separately as par (or stated) value and additional paid in capital. Note: number of treasury shares concept is in another section within stockholders' equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Technical Bulletin (FTB) -Number 85-6 -Paragraph 3 false 83 2 us-gaap_TreasuryStockShares us-gaap true na instant shares Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity during the... false false false false false false false false false 1 false true 221743421 221743421.00 false false 2 false true 150131273 150131273.00 false false 3 false false 0 0 false false Number of common and preferred shares that were previously issued and that were repurchased by the issuing entity during the period and held in treasury on the financial statement date. This stock has no voting rights and receives no dividends. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30 -Article 5 false 84 2 aig_TreasuryStockSharesHeldBySubsidiaries aig false na instant shares Treasury stock, shares held by subsidiaries false false false false false false false false false 1 false true 119293487 119293487.00 false false 2 false true 119278644 119278644.00 false false 3 false false 0 0 false false Treasury stock, shares held by subsidiaries No authoritative reference available. false 85 2 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false false false false false false false 1 false true 95801000000 95801000000.00 false false 2 false true 101677000000 101677000000.00 false false 3 false true 86317000000 86317000000.00 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 true 86 2 us-gaap_LiabilitiesAndStockholdersEquity us-gaap true credit instant monetary Total of all Liabilities and Stockholders' Equity items. false false false false false false false false false 1 false true 1060505000000 1060505000000.00 false false 2 false true 979410000000 979410000000.00 false false 3 false false 0 0 false false Total of all Liabilities and Stockholders' Equity items. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 32 -Article 5 true 87 0 na true na na na No definition available. false true false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 88 2 aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 89 2 us-gaap_AvailableForSaleSecuritiesDebtSecurities us-gaap true debit instant monetary For an unclassified balance sheet, total of debt securities categorized neither as held-to-maturity nor trading. Such... false false false false false false false false false 1 false true 397372000000 397372000000.00 false false 2 false true 386869000000 386869000000.00 false false 3 false false 0 0 false false For an unclassified balance sheet, total of debt securities categorized neither as held-to-maturity nor trading. Such securities are reported at fair value; unrealized gains and losses of such securities are excluded from earnings and included in other comprehensive income, a separate component of shareholders' equity, unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 22 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13, 137 false 90 2 us-gaap_AvailableForSaleSecuritiesDebtMaturitiesAmortizedCost us-gaap true debit instant monetary This item represents the total of all debt securities grouped by maturity dates, at cost, net of adjustments made for... false false false false false false false false false 1 false true 393170000000 393170000000.00 false false 2 false true 377163000000 377163000000.00 false false 3 false false 0 0 false false This item represents the total of all debt securities grouped by maturity dates, at cost, net of adjustments made for accretion, amortization, other-than-temporary impairments, and hedging, if any, which are classified neither as held-to-maturity nor trading securities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS115-1/124-1 -Paragraph 7 -Subparagraph fn2 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 20 false 91 2 us-gaap_HeldToMaturitySecurities us-gaap true debit instant monetary For an unclassified balance sheet, this item represents investments in debt securities which are categorized as... false false false false false false false false false 1 false true 21581000000 21581000000.00 false false 2 false true 21437000000 21437000000.00 false false 3 false false 0 0 false false For an unclassified balance sheet, this item represents investments in debt securities which are categorized as held-to-maturity; such investments are measured at amortized cost (carrying value). The held-to-maturity category is for those securities that the Entity has the positive intent and ability to hold until maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 3 -Section A -Paragraph 4, 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 17 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 7, 8, 9, 10, 11 false 92 2 us-gaap_HeldToMaturitySecuritiesFairValue us-gaap true debit instant monetary This item represents the aggregate fair value of investments in debt securities as of the balance sheet date and which are... false false false false false false false false false 1 false true 22157000000 22157000000.00 false false 2 false true 22154000000 22154000000.00 false false 3 false false 0 0 false false This item represents the aggregate fair value of investments in debt securities as of the balance sheet date and which are categorized as held-to-maturity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 19 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 137 false 93 2 us-gaap_TradingSecuritiesDebt us-gaap true debit instant monetary This item represents debt securities that are bought and held principally for the purpose of selling them in the near term... false false false false false false false false false 1 false true 9982000000 9982000000.00 false false 2 false true 10836000000 10836000000.00 false false 3 false false 0 0 false false This item represents debt securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) or for debt securities formerly categorized as available-for-sale or held-to-maturity which the entity held as of the date it opted to account for such securities at fair value. An enterprise may also categorize such a security as trading without the intent to sell it in the near term assuming the decision to categorize the security as trading occurred at acquisition; this is the reason why the trading category of investments in debt securities are bought and sold "principally" for sale in the near term. Transfers into and out of the trading category should be rare. Such financial instruments that are held as of the reporting date are measured at fair value with unrealized holding gains and losses (the difference between fair value and the previously reported carrying amount) included in earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 29 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number Q&A 115 -Paragraph 35 false 94 2 us-gaap_HybridInstrumentsAtFairValueNet us-gaap true debit instant monetary Fair value as of the balance sheet date of hybrid instruments. false false false false false false false false false 1 false true 555000000 555000000.00 false false 2 false true 522000000 522000000.00 false false 3 false false 0 0 false false Fair value as of the balance sheet date of hybrid instruments. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44A, 44B Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 155 -Paragraph 4 -Subparagraph (e) false 95 2 aig_CommonStocksAvailableForSaleFairValue aig false debit instant monetary For an unclassified balance sheet, this item represents common stocks not categorized as trading. Equity securities represent... false false false false false false false false false 1 false true 17900000000 17900000000.00 false false 2 false true 13256000000 13256000000.00 false false 3 false false 0 0 false false For an unclassified balance sheet, this item represents common stocks not categorized as trading. Equity securities represent ownership interests or the right to acquire ownership interests in corporations and other legal entities which ownership interest is represented by shares of common or preferred stock (which is not mandatorily redeemable or redeemable at the option of the holder), convertible securities, stock rights, or stock warrants. Unrealized gains and losses related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. No authoritative reference available. false 96 2 aig_CommonStocksAvailableForSaleCost aig false debit instant monetary This item represents the cost of common stocks, which are not categorized as trading. false false false false false false false false false 1 false true 12588000000 12588000000.00 false false 2 false true 10662000000 10662000000.00 false false 3 false false 0 0 false false This item represents the cost of common stocks, which are not categorized as trading. No authoritative reference available. false 97 2 us-gaap_TradingSecuritiesEquity us-gaap true debit instant monetary Total common and preferred stock (which is neither mandatorily redeemable nor redeemable at the option of the holder) equity... false false false false false false false false false 1 false true 21376000000 21376000000.00 false false 2 false true 14855000000 14855000000.00 false false 3 false false 0 0 false false Total common and preferred stock (which is neither mandatorily redeemable nor redeemable at the option of the holder) equity securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) or for equity securities formerly categorized as available-for-sale or held-to-maturity which the entity held as of the date it opted to account for such securities at fair value. An enterprise may also categorize such a security as trading without the intent to sell it in the near term assuming the decision to categorize the security as trading occurred at acquisition; this is the reason why the trading category of investments in debt securities are bought and sold "principally" for sale in the near term. Transfers into and out of the trading category should be rare. Such financial instruments that are held as of the reporting date are measured at fair value with unrealized holding gains and losses (the difference between fair value and the previously reported carrying amount) included in earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 29 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number Q&A 115 -Paragraph 35 false 98 2 aig_PreferredStocksAvailableForSaleFairValue aig false debit instant monetary For an unclassified balance sheet, this item represents preferred stocks not categorized as trading. Equity securities... false false false false false false false false false 1 false true 2370000000 2370000000.00 false false 2 false true 2539000000 2539000000.00 false false 3 false false 0 0 false false For an unclassified balance sheet, this item represents preferred stocks not categorized as trading. Equity securities represent ownership interests or the right to acquire ownership interests in corporations and other legal entities which ownership interest is represented by shares of common or preferred stock (which is not mandatorily redeemable or redeemable at the option of the holder), convertible securities, stock rights, or stock warrants. Unrealized gains and losses related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. No authoritative reference available. false 99 2 aig_PreferredStocksAvailableForSaleCost aig false debit instant monetary This item represents the cost of preferred stocks, which are not categorized as trading. false false false false false false false false false 1 false true 2600000000 2600000000.00 false false 2 false true 2485000000 2485000000.00 false false 3 false false 0 0 false false This item represents the cost of preferred stocks, which are not categorized as trading. No authoritative reference available. false 100 2 aig_MortgageAndOtherLoansReceivableNet aig false debit instant monetary Includes mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. Mortgage loans on real... false false false false false false false false false 1 false true 33727000000 33727000000.00 false false 2 false true 28418000000 28418000000.00 false false 3 false false 0 0 false false Includes mortgage loans on real estate, policy loans and collateral, commercial and guaranteed loans. Mortgage loans on real estate and collateral, commercial and guaranteed loans are carried at unpaid principal balances less credit allowances and plus or minus adjustments for the accretion or amortization of discount or premium. Policy loans are carried at unpaid principal amount. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy. No authoritative reference available. false 101 2 us-gaap_AllowanceForLoanAndLeaseLossesRealEstate us-gaap true credit instant monetary The reserve to cover probable credit losses related to specifically identified fixed maturity real estate loans as well as... false false false false false false false false false 1 false true 77000000 77000000.00 false false 2 false true 64000000 64000000.00 false false 3 false false 0 0 false false The reserve to cover probable credit losses related to specifically identified fixed maturity real estate loans as well as probable credit losses inherent in the remainder of that loan portfolio. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 60 -Paragraph 47 false 102 2 us-gaap_LoansReceivableHeldForSaleNet us-gaap true debit instant monetary The aggregate amount of loans receivable that will be sold to other entities. Includes mortgage and all other loans... false false false false false false false false false 1 false true 399000000 399000000.00 false false 2 false false 0 0 false false 3 false false 0 0 false false The aggregate amount of loans receivable that will be sold to other entities. Includes mortgage and all other loans (collectively, loans) not classified as held for investment. Such loans are stated at the lower of cost or market (approximates fair value). Mortgage loans exclude mortgage-backed securities which are considered a debt security (other loan). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Section Appendix B -Paragraph 128 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 65 -Paragraph 4 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Subparagraph (a) -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Paragraph 8 -Subparagraph (h) -Subsection I false 115 2 us-gaap_SecuritiesReceivedAsCollateral us-gaap true debit instant monetary The carrying value as of the balance sheet date of the assets received as collateral against securities loaned to other... false false false false false false false false false 1 false true 75662000000 75662000000.00 false false 2 false true 69306000000 69306000000.00 false false 3 false false 0 0 false false The carrying value as of the balance sheet date of the assets received as collateral against securities loaned to other broker-dealers. Borrowers of securities generally are required to provide collateral to the lenders of securities, commonly cash but sometimes other securities or standby letters of credit, with a value slightly higher than that of the securities borrowed. In instances where the entity is permitted to sell or repledge these securities, the entity reports the fair value of the collateral received and the related obligation to return the collateral as a liability Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 49 -IssueDate 2006-05-01 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 17 -Subparagraph (a)(3) Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 15 -Subparagraph a, b, c, d Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 91 false 116 2 aig_SecuritiesReceivedAsCollateralAtCost aig false debit instant monetary The cost as of the balance sheet date of the assets received as collateral against securities loaned to other broker-dealers.... false false false false false false false false false 1 false true 80641000000 80641000000.00 false false 2 false true 69306000000 69306000000.00 false false 3 false false 0 0 false false The cost as of the balance sheet date of the assets received as collateral against securities loaned to other broker-dealers. Borrowers of securities generally are required to provide collateral to the lenders of securities, commonly cash but sometimes other securities or standby letters of credit, with a value slightly higher than that of the securities borrowed. No authoritative reference available. false 117 2 aig_InvestedAssetsOther aig false debit instant monetary Other invested assets consists of investments not otherwise specified in the taxonomy. false false false false false false false false false 1 false true 58823000000 58823000000.00 false false 2 false true 42111000000 42111000000.00 false false 3 false false 0 0 false false Other invested assets consists of investments not otherwise specified in the taxonomy. No authoritative reference available. false 118 2 us-gaap_OtherShortTermInvestments us-gaap true debit instant monetary Other investments not otherwise specified in the taxonomy that will be realized in a short period of time, usually less than... false false false false false false false false false 1 false true 51351000000 51351000000.00 false false 2 false true 27483000000 27483000000.00 false false 3 false false 0 0 false false Other investments not otherwise specified in the taxonomy that will be realized in a short period of time, usually less than one year or the normal operating cycle, whichever is longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Subsection I Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 5 -Article 9 false 173 0 na true na na na No definition available. false true false false false false false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. No authoritative reference available. false 174 2 aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false 3 false false 0 0 false false No definition available. false 189 2 aig_FlightEquipmentNet aig false debit instant monetary Passenger aircraft, freighter aircraft, and flight equipment stated at cost, net of accumulated depreciation. Major... false false false false false false false false false 1 false true 41984000000 41984000000.00 false false 2 false true 39875000000 39875000000.00 false false 3 false false 0 0 false false Passenger aircraft, freighter aircraft, and flight equipment stated at cost, net of accumulated depreciation. Major additions, modifications and interest are capitalized. No authoritative reference available. false 190 2 aig_AccumulatedDepreciationFlightEquipment aig false credit instant monetary The cumulative amount of depreciation, depletion and amortization (related to flight equipment) that has been recognized in... false false false false false false false false false 1 false true 10499000000 10499000000.00 false false 2 false true 8835000000 8835000000.00 false false 3 false false 0 0 false false The cumulative amount of depreciation, depletion and amortization (related to flight equipment) that has been recognized in the income statement. No authoritative reference available. false 191 2 us-gaap_AvailableForSaleSecurities us-gaap true debit instant monetary For an unclassified balance sheet, this item represents investments in debt and equity securities which are categorized... false false false false false false false false false 1 false true 40305000000 40305000000.00 false false 2 false true 47205000000 47205000000.00 false false 3 false false 0 0 false false For an unclassified balance sheet, this item represents investments in debt and equity securities which are categorized neither as held-to-maturity nor trading. Such securities are reported at fair value, with unrealized gains and losses excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale Security is designated as a hedge. All or a portion of the unrealized holding gain or loss of an Available-for-sale Security that is designated as being hedged in a fair value hedge shall be recognized in earnings during the period of the hedge. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph b Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13, 14 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 22 false 192 2 us-gaap_AvailableForSaleSecuritiesAmortizedCost us-gaap true debit instant monetary This item represents the cost of debt and equity securities, which are categorized neither as held-to-maturity nor trading,... false false false false false false false false false 1 false true 40157000000 40157000000.00 false false 2 false true 45912000000 45912000000.00 false false 3 false false 0 0 false false This item represents the cost of debt and equity securities, which are categorized neither as held-to-maturity nor trading, net of adjustments made for accretion, amortization, other-than-temporary impairments, and hedging, if any. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS115-1/124-1 -Paragraph 7 -Subparagraph fn2 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 19 false 193 2 us-gaap_TradingSecurities us-gaap true debit instant monetary The total of financial instruments that are bought and held principally for the purpose of selling them in the near term... false false false false false false false false false 1 false true 4197000000 4197000000.00 false false 2 false true 5031000000 5031000000.00 false false 3 false false 0 0 false false The total of financial instruments that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) or for debt and equity securities formerly categorized as available-for-sale or held-to-maturity which the entity held as of the date it opted to account for such securities at fair value. An enterprise may also categorize such a security as trading without the intent to sell it in the near term assuming the decision to categorize the security as trading occurred at acquisition; this is the reason why the trading category of investments in debt and equity securities are bought and sold "principally" for sale in the near term. Transfers into and out of the trading category should be rare. Such financial instruments that are held as of the reporting date are measured at fair value with unrealized holding gains and losses (the difference between fair value and the previously reported carrying amount) included in earnings. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 12 -Subparagraph a Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 159 -Paragraph 29 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number Q&A 115 -Paragraph 35 false 194 2 us-gaap_FinancialInstrumentsOwnedPhysicalCommoditiesAtFairValue us-gaap true debit instant monetary The fair value as of the balance sheet date of firm holdings in physical commodity contracts (for example, agricultural... false false false false false false false false false 1 false true 238000000 238000000.00 false false 2 false true 220000000 220000000.00 false false 3 false false 0 0 false false The fair value as of the balance sheet date of firm holdings in physical commodity contracts (for example, agricultural products, metals and energy). Includes both pledged (to counterparties as collateral for financing transactions) and unpledged holdings. No authoritative reference available. false 195 2 us-gaap_DerivativeAssets us-gaap true debit instant monetary Fair values as of the balance sheet date of all assets resulting from contracts that meet the criteria of being accounted for... false false false false false false false false false 1 false true 16442000000 16442000000.00 false false 2 false true 19252000000 19252000000.00 false false 3 false false 0 0 false false Fair values as of the balance sheet date of all assets resulting from contracts that meet the criteria of being accounted for as derivative instruments, net of the effects of master netting arrangements. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FIN39-1 -Paragraph 10A, 10B Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 4, 17 false 196 2 us-gaap_OtherReceivablesFromBrokerDealersAndClearingOrganizations us-gaap true debit instant monetary Amounts due that are not specifically identified in the taxonomy and are due from other broker-dealers. false false false false false false false false false 1 false true 6467000000 6467000000.00 false false 2 false true 4317000000 4317000000.00 false false 3 false false 0 0 false false Amounts due that are not specifically identified in the taxonomy and are due from other broker-dealers. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-BRD -Chapter 4 -Paragraph 80 -Subparagraph Exhibit 4-8, 4 -IssueDate 2006-05-01 false 197 2 us-gaap_SecuritiesPurchasedUnderAgreementsToResell us-gaap true debit instant monetary The carrying value of funds outstanding loaned in the form of security resale agreements if the agreement requires the... false false false false false false false false false 1 false true 20950000000 20950000000.00 false false 2 false true 30291000000 30291000000.00 false false 3 false false 0 0 false false The carrying value of funds outstanding loaned in the form of security resale agreements if the agreement requires the purchaser to resell the identical security purchased or a security that meets the definition of "substantially the same" in the case of a dollar roll. Also includes purchases of participations in pools of securities that are subject to a resale agreement. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 41 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 140 -Paragraph 100 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Article 9 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (m) -Subparagraph (1)i -Article 4 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph (m) -Subparagraph (2) -Article 4 false 198 2 us-gaap_LoansAndLeasesReceivableConsumerInstallmentAndRevolving us-gaap true debit instant monetary Reflects the sum of the carrying amounts of the various categories of unpaid loans issued to individuals to acquire goods and... false false false false false false false false false 1 false true 31234000000 31234000000.00 false false 2 false true 29573000000 29573000000.00 false false 3 false false 0 0 false false Reflects the sum of the carrying amounts of the various categories of unpaid loans issued to individuals to acquire goods and services. Includes credit card, automobile, boat, student and durable home appliance loans. Also includes the carrying amount of unpaid loans issued to individuals to provide financing in the legal form of a lease agreement which meets the criteria for treating the arrangement as a direct financing lease. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Audit and Accounting Guide (AAG) -Number AAG-DEP -Chapter 8 -Paragraph 31-39 -IssueDate 2006-05-01 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Paragraph 8 -Subparagraph (b)(iii) -Subsection I Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph e Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Subparagraph (a), (b) -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Paragraph 8 -Subparagraph (c)(iii) -Subsection I false 199 2 us-gaap_LoansAndLeasesReceivableAllowance us-gaap true credit instant monetary The allowance for loan and lease losses represents the reserve to cover probable credit losses related to specifically... false false false false false false false false false 1 false true 878000000 878000000.00 false false 2 false true 737000000 737000000.00 false false 3 false false 0 0 false false The allowance for loan and lease losses represents the reserve to cover probable credit losses related to specifically identified loans and leases, as well as probable credit losses inherent in the remainder of the loan portfolio as of the balance sheet date. For banks, include currently required allocated transfer risk reserves. Include carryover of or adjustments to the allowance for loan losses in connection with business combinations determined to be appropriate. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher OTS -Name Federal Regulation (FR) -Number Title 12 -Chapter V -Section 563c.102 -Paragraph 8 -Subparagraph (a)(ii) -Subsection I Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 6 -Section L -Paragraph 1 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 118 -Paragraph 6 -Subparagraph i Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Subparagraph (d) -Article 9 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 8, 9 false 200 2 aig_FinanceReceivablesHeldForSale aig false debit instant monetary Finance receivables held for sale false false false false false false false false false 1 true true 233000000 233000000.00 false false 2 true true 1124000000 1124000000.00 false false 3 false false 0 0 false false Finance receivables held for sale No authoritative reference available. false false 3 89 false NoRounding NoRounding Hundreds false true XML 16 FilingSummary.xml IDEA: XBRL DOCUMENT 1.0.0.3 true Sheet http://xbrl.aig.com/2007/DocumentAndEntityInformation Document And Entity Information R1.xml false Sheet http://xbrl.aig.com/2007/role/BalanceSheet Balance Sheet R2.xml false Sheet http://xbrl.aig.com/2007/role/CashFlowStatement Cash Flow Statement R3.xml false Sheet http://xbrl.aig.com/2007/role/CashFlowSupplemental Cash Flow Supplemental R4.xml false Sheet http://xbrl.aig.com/2007/role/IncomeStatement Income Statement R5.xml false Notes http://xbrl.aig.com/2007/role/NotesToConsolidatedFinancials Notes To Consolidated Financials R6.xml false Sheet http://xbrl.aig.com/2007/role/ShareholdersEquityStatement Shareholders Equity Statement R7.xml false Sheet http://xbrl.aig.com/2007/role/StatementOfComprehensiveIncome Statement Of Comprehensive Income R8.xml false Book All Reports All Reports 1 87 13 0 3 247 false false I2005_CommonStockMember 2 I2007_AccumulatedDefinedBenefitPlansAdjustmentMember 1 D2007 142 I2004_RetainedEarningsMember 1 D2006_AdditionalPaidInCapitalMember 2 I2007_AdditionalPaidInCapitalMember 1 I2004_CommonStockMember 2 I2006_AccumulatedNetUnrealizedInvestmentGainLossMember 1 I2007_AccumulatedOtherComprehensiveIncomeMember 1 D2007_AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2 I2006_CommonStockMember 2 I2005_AccumulatedTranslationAdjustmentMember 1 D2006_TreasuryStockMember 6 D2007_AdditionalPaidInCapitalMember 2 I2007_PaymentsAdvancedToPurchaseSharesMember 1 I2004_AccumulatedDefinedBenefitPlansAdjustmentMember 1 I2006_PaymentsAdvancedToPurchaseSharesMember 1 D2005_AccumulatedDefinedBenefitPlansAdjustmentMember 2 I2004_AccumulatedNetUnrealizedInvestmentGainLossMember 1 D2005_AccumulatedTranslationAdjustmentMember 2 I2007_CommonStockMember 2 I2004_AccumulatedTranslationAdjustmentMember 1 I2005_AdditionalPaidInCapitalMember 1 I2004_PaymentsAdvancedToPurchaseSharesMember 1 I2007_InvestmentsMember 18 I2005_RetainedEarningsMember 1 D2007_AccumulatedNetUnrealizedInvestmentGainLossMember 2 I2006_AccumulatedTranslationAdjustmentMember 1 I2006_RetainedEarningsMember_ScenarioAdjustmentMember 1 D2005_AdditionalPaidInCapitalMember 2 SharesOutstanding 1 D2005_TreasuryStockMember 6 D2005_AccumulatedNetUnrealizedInvestmentGainLossMember 2 I2004_TreasuryStockMember 2 I2005 7 I2006_TreasuryStockMember 2 I2007_AccumulatedNetUnrealizedInvestmentGainLossMember 1 D2006_RetainedEarningsMember 4 D2007_RetainedEarningsMember 4 I2006_AccumulatedOtherComprehensiveIncomeMember 1 I2004_RetainedEarningsMember_ScenarioAdjustmentMember 1 D2006_AccumulatedDefinedBenefitPlansAdjustmentMember 3 D2007_AccumulatedTranslationAdjustmentMember 2 I2006_AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 1 D2006_AccumulatedNetUnrealizedInvestmentGainLossMember 2 I2004 2 I2005_AccumulatedDefinedBenefitPlansAdjustmentMember 1 I2005_TreasuryStockMember 2 I2006_InvestmentsMember 17 D2007_AccumulatedDefinedBenefitPlansAdjustmentMember 3 D2007_TreasuryStockMember 6 D2005_AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2 I2005_PaymentsAdvancedToPurchaseSharesMember 1 I2006_RetainedEarningsMember 1 I2007 53 I2007_AccumulatedTranslationAdjustmentMember 1 I2006 51 PublicFloat 1 I2005_AccumulatedOtherComprehensiveIncomeMember 1 I2006_FinancialServicesMember 12 D2006_AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2 I2007_TreasuryStockMember 2 I2004_AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 1 D2005_RetainedEarningsMember 3 I2006_AccumulatedDefinedBenefitPlansAdjustmentMember 1 I2005_AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 1 I2007_RetainedEarningsMember 1 I2005_RetainedEarningsMember_ScenarioAdjustmentMember 1 I2007_FinancialServicesMember 12 I2007_AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 1 D2006 105 D2007_PaymentsAdvancedToPurchaseSharesMember 2 D2005 102 I2006_AdditionalPaidInCapitalMember 1 D2006_AccumulatedTranslationAdjustmentMember 2 I2004_AdditionalPaidInCapitalMember 1 I2005_AccumulatedNetUnrealizedInvestmentGainLossMember 1 true true EXCEL 17 Financial_Report.xls IDEA: XBRL DOCUMENT begin 644 Financial_Report.xls MT,\1X*&Q&N$`````````````````````/@`#`/[_"0`&```````````````# M`````0``````````$```>0$```$```#^____```````````"`````P```/__ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M_______________________]_____O____W____]____!0````8````'```` M"`````D````*````"P````P````-````#@````\````0````$0```!(````3 M````%````!4````6````%P```!@````9````&@```!L````<````'0```!X` M```?````(````"$````B````(P```"0````E````)@```"<````H````*0`` M`"H````K````+````"T````N````+P```#`````Q````,@```#,````T```` M-0```#8````W````.````#D````Z````.P```#P````]````/@```#\```!` M````00```$(```!#````1````$4```!&````1P```$@```!)````2@```$L` M``!,````30```$X```!/````4````%$```!2````4P```%0```!5````5@`` M`%<```!8````60```%H```!;````7````%T```!>````7P```&````!A```` M8@```&,```!D````90```&8```!G````:````&D```!J````:P```&P```!M M````;@```&\```!P````<0```'(```!S````=````'4```!V````=P```'@` M``!Y````>@```'L```!\````?0```'X```!_````@````%(`;P!O`'0`(`!% M`&X`=`!R`'D````````````````````````````````````````````````` M```````````6``4`__________\"```````````````````````````````` M`````````"`!5X^6?@$``$`!````````5P!O`'(`:P!B`&\`;P!K```` M```````````````````````````````````````````````````````````` M`!(``@#_______________\````````````````````````````````````` M```````````$````J^D"```````%`%,`=0!M`&T`80!R`'D`20!N`&8`;P!R M`&T`80!T`&D`;P!N````````````````````````````````````*``"`0$` M```#````_____P`````````````````````````````````````````````` M``````"```````````4`1`!O`&,`=0!M`&4`;@!T`%,`=0!M`&T`80!R`'D` M20!N`&8`;P!R`&T`80!T`&D`;P!N```````````````X``(`____________ M____`````````````````````````````````````````````````@```*`` M````````@0```((```"#````A````(4```"&````AP```(@```")````B@`` M`(L```",````C0```(X```"/````D````)$```"2````DP```)0```"5```` ME@```)<```"8````F0```)H```";````G````)T```">````GP```*````"A M````H@```*,```"D````I0```*8```"G````J````*D```"J````JP```*P` M``"M````K@```*\```"P````L0```+(```"S````M````+4```"V````MP`` M`+@```"Y````N@```+L```"\````O0```+X```"_````P````,$```#"```` MPP```,0```#%````Q@```,<```#(````R0```,H```#+````S````,T```#. M````SP```-````#1````T@```-,```#4````U0```-8```#7````V````-D` M``#:````VP```-P```#=````W@```-\```#@````X0```.(```#C````Y``` M`.4```#F````YP```.@```#I````Z@```.L```#L````[0```.X```#O```` M\````/$```#R````\P```/0```#U````]@```/<```#X````^0```/H```#[ M````_````/T```#^````_P`````!```!`0```@$```,!```$`0``!0$```8! M```'`0``"`$```D!```*`0``"P$```P!```-`0``#@$```\!```0`0``$0$` M`!(!```3`0``%`$``!4!```6`0``%P$``!@!```9`0``&@$``!L!```<`0`` M'0$``!X!```?`0``(`$``"$!```B`0``(P$``"0!```E`0``)@$``"`0``7P$``&`! M``!A`0``8@$``&,!``!D`0``90$``&8!``!G`0``:`$``&D!``!J`0``:P$` M`&P!``!M`0``;@$``&\!``!P`0``<0$``'(!``!S`0``=`$``'4!``!V`0`` M=P$``'@!``#^_____O____[______________________________PD($``` M!@4`1AC-!\&````&`@``X0`"`+`$P0`"````X@```%P`<``'``!S!$T`"``D M``$B`"0`(@`C`"P`(P`C`#``+@`P`#``7P`I`#L`6P!2`&4`9`!=`%P`*``@ M`"(`)``B`",`+``C`",`,``N`#``,`!<`"``*0`>!'$`*@`V``%?`"@`(@`D M`"(`*@`@`",`+``C`",`,`!?`"D`.P!?`"@`(@`D`"(`*@`@`%P`*``@`",` M+``C`",`,`!<`"``*0`[`%\`*``B`"0`(@`J`"``(@`M`"(`7P`I`#L`7P`H M`"``0`!?`"``*0`>!%\`*0`M``%?`"@`*@`@`",`+``C`",`,`!?`"D`.P!? M`"@`*@`@`%P`*``@`",`+``C`",`,`!<`"``*0`[`%\`*``J`"``(@`M`"(` M7P`I`#L`7P`H`"``0`!?`"``*0`>!($`+``^``%?`"@`(@`D`"(`*@`@`",` M+``C`",`,``N`#``,`!?`"D`.P!?`"@`(@`D`"(`*@`@`%P`*``@`",`+``C M`",`,``N`#``,`!<`"``*0`[`%\`*``B`"0`(@`J`"``(@`M`"(`/P`_`%\` M*0`[`%\`*``@`$``7P`@`"D`'@1O`"L`-0`!7P`H`"H`(``C`"P`(P`C`#`` M+@`P`#``7P`I`#L`7P`H`"H`(`!<`"@`(``C`"P`(P`C`#``+@`P`#``7``@ M`"D`.P!?`"@`*@`@`"(`+0`B`#\`/P!?`"D`.P!?`"@`(`!``%\`(``I`!X$ M(P"D``\``20`(P`L`",`(P`P`#L`*``D`",`+``C`",`,``I`!X$'P"E``T` M`2,`+``C`",`,``[`"@`(P`L`",`(P`P`"D`'@0O`*8`%0`!)``C`"P`(P`C M`#``+@`C`",`.P`H`"0`(P`L`",`(P`P`"X`(P`C`"D`X``4``````#U_R`` M`````````````,`@X``4``$```#U_R```/0``````````$$@X``4``$```#U M_R```/0``````````$$@X``4``(```#U_R```/0``````````$$@X``4``(` M``#U_R```/0``````````$$@X``4``````#U_R```/0``````````$$@X``4 M``````#U_R```/0``````````$$@X``4``````#U_R```/0``````````$$@ MX``4``````#U_R```/0``````````$$@X``4``````#U_R```/0````````` M`$$@X``4``````#U_R```/0``````````$$@X``4``````#U_R```/0````` M`````$$@X``4``````#U_R```/0``````````$$@X``4``````#U_R```/0` M`````````$$@X``4``````#U_R```/0``````````$$@X``4```````!`"`` M`````````````,`@X``4``$`*P#U_R```/@``````````$$@X``4``$`*0#U M_R```/@``````````$$@X``4``$`+`#U_R```/@``````````$$@X``4``$` M*@#U_R```/@``````````$$@X``4``$`"0#U_R```/@``````````$$@X``4 M``4````!`"````@``````````,`@X``4``4````!`"@``!@``````````,`@ MX``4``4````!`"H``!@``````````,`@X``4```````!`"@``!`````````` M`,`@X``4```````)`"```````````````,`@X``4```````)`"@``!`````` M`````,`@X``4```````)``@``!```````````,`@X``4````I``!`"````0` M`````````,`@X``4````I0`!`"````0``````````,`@X``4````I@`!`"`` M``0``````````,`@X``4``8`I``!`"````P``````````,`@X``4``8````! M`"````@``````````,`@X``4``8`I0`!`"````P``````````,`@X``4``4` M```!`"@``%@`````````!"D@X``4```````!`"```$``````````!"D@X``4 M``8`I@`!`"````P``````````,`@DP($``"``/^3`@0`$(`#_Y,"!``1@`;_ MDP($`!*`!/^3`@0`$X`'_Y,"!``4@`7_8`$"````A0!&`$M_`@```!\!1`!O M`&,`=0!M`&4`;@!T`"``00!N`&0`(`!%`&X`=`!I`'0`>0`@`$D`;@!F`&\` M<@!M`&$`=`!I`&\`;@"%`"(`NH,"````#0%"`&$`;`!A`&X`8P!E`"``4P!H M`&4`90!T`(4`+@"9G0(````3`4,`80!S`&@`(`!&`&P`;P!W`"``4P!T`&$` M=`!E`&T`90!N`'0`A0`T`%"Y`@```!8!0P!A`',`:``@`$8`;`!O`'<`(`!3 M`'4`<`!P`&P`90!M`&4`;@!T`&$`;`"%`"@`[[P"````$`%)`&X`8P!O`&T` M90`@`%,`=`!A`'0`90!M`&4`;@!T`(4`1@">QP(````?`4X`;P!T`&4`0`@`%,`=`!A`'0`90!M`&4`;@!T`(4`1@`6Y`(````?`5,` M=`!A`'0`90!M`&4`;@!T`"``3P!F`"``0P!O`&T`<`!R`&4`:`!E`&X`0`@`$D`;@!F`&\`<@!M M`&$`=`!I`&\`;@`6``%%`&X`=`!I`'0`>0`@`%(`90!G`&D`0`@`%<`90!L`&P`+0!K`&X` M;P!W`&X`(`!3`&4`80!S`&\`;@!E`&0`(`!)`',`0`@`$8`:0!L`&4` M<@!S``,``5D`90!S`!\``44`;@!T`&D`=`!Y`"``0P!U`'(`<@!E`&X`=``@ M`%(`90!P`&\`<@!T`&D`;@!G`"``4P!T`&$`=`!U`',`%0`!10!N`'0`:0!T M`'D`(`!&`&D`;`!E`'(`(`!#`&$`=`!E`&<`;P!R`'D`%P`!3`!A`'(`9P!E M`"``00!C`&,`90!L`&4`<@!A`'0`90!D`"``1@!I`&P`90!R`!,``44`;@!T M`&D`=`!Y`"``4`!U`&(`;`!I`&,`(`!&`&P`;P!A`'0`)P`!10!N`'0`:0!T M`'D`(`!#`&\`;0!M`&\`;@`@`%,`=`!O`&,`:P`L`"``4P!H`&$`<@!E`',` M(`!/`'4`=`!S`'0`80!N`&0`:0!N`&<`%0`!0@!A`&P`80!N`&,`90`@`%,` M:`!E`&4`=``@`"@`50!3`$0`(``D`"D`#P`!1`!E`&,`+@`@`#,`,0`L`"`` M,@`P`#``-P`-``H`#P`!1`!E`&,`+@`@`#,`,0`L`"``,@`P`#``-@`-``H` M#P`!1`!E`&,`+@`@`#,`,0`L`"``,@`P`#``-0`-``H`$0`!1@!I`'@`90!D M`"``;0!A`'0`=0!R`&D`=`!I`&4`0!H`&\`;`!D`&4`<@!S M`"<`(`!C`&\`;@!T`'(`80!C`'0`(`!D`&4`<`!O`',`:0!T`',`&@`!3P!T M`&@`90!R`"``<`!O`&P`:0!C`'D`:`!O`&P`9`!E`'(``!E`',`(`!P`&$`>0!A`&(`;`!E`!H``4D` M;@!S`'4`<@!A`&X`8P!E`"``8@!A`&P`80!N`&,`90!S`"``<`!A`'D`80!B M`&P`90`R``%&`'4`;@!D`',`(`!H`&4`;`!D`"``8@!Y`"``8P!O`&T`<`!A M`&X`:0!E`',`(`!U`&X`9`!E`'(`(`!R`&4`:0!N`',`=0!R`&$`;@!C`&4` M(`!T`'(`90!A`'0`:0!E`',`%``!20!N`&,`;P!M`&4`(`!T`&$`>`!E`',` M(`!P`&$`>0!A`&(`;`!E`!\``48`:0!N`&$`;@!C`&D`80!L`"``@!E`&0`(`!L`&\`0!A`&(`;`!E`!$``4T`:0!N`&\`<@!I`'0`>0`@ M`&D`;@!T`&4`<@!E`',`=`!@``%/`'0`:`!E`'(`(`!L`&D`80!B`&D`;`!I M`'0`:0!E`',`(``H`&D`;@!C`&P`=0!D`&4`0!B`'(`:0!D`"`` M9@!I`&X`80!N`&,`:0!A`&P`(`!I`&X`0`@`&D` M;@`@`',`=0!B`',`:0!D`&D`80!R`'D`(`!C`&\`;0!P`&$`;@!I`&4`@!E`&0`.P`@`',`:`!A M`'(`90!S`"``:0!S`',`=0!E`&0`(``R`#``,``W`"``80!N`&0`(``R`#`` M,``V`"``+0`@`#(`+``W`#4`,0`L`#,`,@`W`"P`-``W`#8`%P`!0P!O`&T` M;0!O`&X`(`!S`'0`;P!C`&L`+``@`'``80!R`"``=@!A`&P`=0!E`!\``4,` M;P!M`&T`;P!N`"``@!E`&0`&P`!0P!O`&T`;0!O`&X`(`!S`'0`;P!C`&L`+``@ M`',`:`!A`'(`90!S`"``:0!S`',`=0!E`&0`&@`!00!D`&0`:0!T`&D`;P!N M`&$`;``@`'``80!I`&0`+0!I`&X`(`!C`&$`<`!I`'0`80!L`"0``5``80!Y M`&T`90!N`'0`0`@`',`=`!O`&,`:P`L`"``4P!H`&$`<@!E`',` M(`!O`&8`(`!C`&\`;0!M`&\`;@`@`',`=`!O`&,`:P`K``%4`'(`90!A`',` M=0!R`'D`(`!S`'0`;P!C`&L`+``@`',`:`!A`'(`90!S`"``:`!E`&P`9``@ M`&(`>0`@`',`=0!B`',`:0!D`&D`80!R`&D`90!S`!H``50`;P!T`&$`;``@ M`',`:`!A`'(`90!H`&\`;`!D`&4`<@!S`"<`(`!E`'$`=0!I`'0`>0!B``%4 M`&\`=`!A`&P`(`!L`&D`80!B`&D`;`!I`'0`:0!E`',`+``@`'``<@!E`&8` M90!R`'(`90!D`"``0`@`&,`;P!M`'`` M80!N`&D`90!S`"``80!N`&0`(`!S`&@`80!R`&4`:`!O`&P`9`!E`'(`0`L`"``80!T`"``9@!A`&D`<@`@`'8`80!L`'4`90!H``%"`&\` M;@!D`"``=`!R`&$`9`!I`&X`9P`@`',`90!C`'4`<@!I`'0`:0!E`',`+``@ M`&$`=``@`&8`80!I`'(`(`!V`&$`;`!U`&4`(``H`&D`;@!C`&P`=0!D`&4` M0!B`'(`:0!D`"``9@!I`&X`80!N`&,`:0!A`&P`(`!I`&X`0`@`'4`;@!D`&4`<@`@`&\` M<`!E`'(`80!T`&D`;@!G`"``;`!E`&$`@!E`&0`(`!G`&$`:0!N`"``;P!N`"``0!E`&$`<@`E``%#`&$`0`@`&D`;@`@`&D`;@!C`&\`;0!E`"``;P!F`"``<`!A`'(`=`!I`&$` M;`!L`'D`(`!O`'<`;@!E`&0`(`!C`&\`;0!P`&$`;@!I`&4`@!A`'0`:0!O`&X`(`!O`&8`(`!D`&4`9@!E`'(` M<@!E`&0`(`!P`&\`;`!I`&,`>0`@`&$`8P!Q`'4`:0!S`&D`=`!I`&\`;@`@ M`&,`;P!S`'0``!P`&4`;@!S`&4`@!A M`'0`:0!O`&X`(`!O`&8`(`!D`&4`9@!E`'(`<@!E`&0`(`!P`&\`;`!I`&,` M>0`@`&$`8P!Q`'4`:0!S`&D`=`!I`&\`;@`@`&,`;P!S`'0`0!A`&(`;`!E`',`(``M`"``;@!E`'0`$@`!5`!R`&$`9`!I M`&X`9P`@`%,`90!C`'4`<@!I`'0`:0!E`',`$``!4P!P`&\`=``@`$,`;P!M M`&T`;P!D`&D`=`!I`&4`@!E M`&0`(``H`&<`80!I`&X`*0`@`&P`;P!S`',`(`!O`&X`(`!S`'<`80!P`',` M+``@`&\`<`!T`&D`;P!N`',`(`!A`&X`9``@`&8`;P!R`'<`80!R`&0`(`!T M`'(`80!N`',`80!C`'0`:0!O`&X`0`@`',`90!C`'4`<@!I`'0`:0!E M`',`(`!A`'8`80!I`&P`80!B`&P`90`@`&8`;P!R`"```!E`&0`(`!M`&$`=`!U`'(`:0!T`'D`(`!S`&4`8P!U M`'(`:0!T`&D`90!S`"``80!V`&$`:0!L`&$`8@!L`&4`(`!F`&\`<@`@`',` M80!L`&4`(`!A`&X`9``@`&@`>0!B`'(`:0!D`"``:0!N`'8`90!S`'0`;0!E M`&X`=`!S`#$``5``=0!R`&,`:`!A`',`90!S`"``;P!F`"``90!Q`'4`:0!T M`'D`(`!S`&4`8P!U`'(`:0!T`&D`90!S`"``80!V`&$`:0!L`&$`8@!L`&4` M(`!F`&\`<@`@`',`80!L`&4`-P`!4`!U`'(`8P!H`&$``!E`&0`(`!M`&$`=`!U`'(`:0!T`'D`(`!S`&4`8P!U`'(`:0!T M`&D`90!S`"``:`!E`&P`9``@`'0`;P`@`&T`80!T`'4`<@!I`'0`>0`=``%0 M`'4`<@!C`&@`80!S`&4``!E`&0`(`!A`',``!T`&4`;@!D`&D`8@!L`&4` M(`!C`&\`;0!M`&4`<@!C`&D`80!L`"``;@!O`'0`90!S`!L``4P`;P!N`&<` M+0!T`&4`<@!M`"``8@!O`'(`<@!O`'<`:0!N`&<`0!M`&4`;@!T`',`(`!O`&X`(`!L`&\`;@!G`"T`=`!E M`'(`;0`@`&(`;P!R`'(`;P!W`&D`;@!G`',`)``!0P!H`&$`;@!G`&4`(`!I M`&X`(`!S`&4`8P!U`'(`:0!T`&D`90!S`"``;`!E`&X`9`!I`&X`9P`@`'`` M80!Y`&$`8@!L`&4`,``!4@!E`&0`90!M`'``=`!I`&\`;@`@`&\`9@`@`',` M=0!B`',`:0!D`&D`80!R`'D`(`!C`&\`;0!P`&$`;@!Y`"``<`!R`&4`9@!E M`'(`<@!E`&0`(`!S`'0`;P!C`&L`&@`!20!S`',`=0!A`&X`8P!E`"``;P!F M`"``=`!R`&4`80!S`'4`<@!Y`"``0`@`',`=`!O`&,`:P`C``%#`&$``!E`',`'@`!3@!O`&X`+0!C`&$``!P`&4`;@!S M`&4``!P`&4`;@!S`&4``!E`',`+``@`&T`:0!N`&\`<@!I`'0` M>0`@`&D`;@!T`&4`<@!E`',`=``@`&$`;@!D`"``8P!U`&T`=0!L`&$`=`!I M`'8`90`@`&4`9@!F`&4`8P!T`"``;P!F`"``80!C`&,`;P!U`&X`=`!I`&X` M9P`@`&,`:`!A`&X`9P!E`',`&``!20!N`&,`;P!M`&4`(`!T`&$`>`!E`',` M(``H`&(`90!N`&4`9@!I`'0``!E`',`2P`!20!N`&,`;P!M`&4`(`!B`&4`9@!O`'(`90`@ M`&T`:0!N`&\`<@!I`'0`>0`@`&D`;@!T`&4`<@!E`',`=``@`&$`;@!D`"`` M8P!U`&T`=0!L`&$`=`!I`'8`90`@`&4`9@!F`&4`8P!T`"``;P!F`"``80!C M`&,`;P!U`&X`=`!I`&X`9P`@`&,`:`!A`&X`9P!E`',`-0`!20!N`&,`;P!M M`&4`(`!B`&4`9@!O`'(`90`@`&,`=0!M`'4`;`!A`'0`:0!V`&4`(`!E`&8` M9@!E`&,`=``@`&\`9@`@`&$`8P!C`&\`=0!N`'0`:0!N`&<`(`!C`&@`80!N M`&<`90!S`#,``4,`=0!M`'4`;`!A`'0`:0!V`&4`(`!E`&8`9@!E`&,`=``@ M`&\`9@`@`&$`8P!C`&\`=0!N`'0`:0!N`&<`(`!C`&@`80!N`&<`90!S`"P` M(`!N`&4`=``@`&\`9@`@`'0`80!X``4``4(`80!S`&D`8P`'``%$`&D`;`!U M`'0`90!D`!L``4$`=@!E`'(`80!G`&4`(`!S`&@`80!R`&4`0`@`&\`9@`@`%,`:0!G M`&X`:0!F`&D`8P!A`&X`=``@`$$`8P!C`&\`=0!N`'0`:0!N`&<`(`!0`&\` M;`!I`&,`:0!E`',`(``@``T`#0!"`&$`0`@`&$`8P!C`&4`<`!T`&4`9``@`&$`8P!C`&\`=0!N`'0` M:0!N`&<`(`!P`'(`:0!N`&,`:0!P`&P`90!S`"``*`!'`$$`00!0`"D`+@`@ M`$$`;`!L`"``;0!A`'0`90!R`&D`80!L`"``:0!N`'0`90!R`&,`;P!M`'`` M80!N`'D`(`!A`&,`8P!O`'4`;@!T`',`(`!A`&X`9``@`'0`<@!A`&X`0`@`'<`:0!T`&@`(`!'`$$`00!0`"`` M<@!E`'$`=0!I`'(`90!S`"``;0!A`&X`80!G`&4`;0!E`&X`=``@`'0`;P`@ M`&T`80!K`&4`(`!E`',`=`!I`&T`80!T`&4`0`L`"``9@!R M`&\`;0`@`'0`:`!O`',`90`@`&4`0`@`&$`8P!Q`'4`:0!S`&D`=`!I`&\`;@`@ M`&,`;P!S`'0`0`@`&D`;0!P`&$`:0!R`&T`90!N`'0`0`@`&D`;@`@`'0`:`!E`"``9@!O`'4`<@!T`&@`(`!Q`'4` M80!R`'0`90!R`"P`(`!C`'(`90!A`'0`90!D`"``:0!N`&,`<@!E`&$`0`L`"``;`!E`',`0`@`$$`20!'`"P`(`!S`'4`8P!H`"``80!S`"`` M00!)`$<`1@!0`',`(`!S`'4`<`!E`'(`(`!S`&4`;@!I`&\`<@`@`&,`<@!E M`&0`:0!T`"``9`!E`&8`80!U`&P`=``@`',`=P!A`'``(`!P`&\`<@!T`&8` M;P!L`&D`;P`N`"``(``-``T`4@!E`'8`:0!S`&D`;P!N`',`(`!A`&X`9``@ M`%(`90!C`&P`80!S`',`:0!F`&D`8P!A`'0`:0!O`&X`0`@`&$`;`!L`"``;`!I`&X`90!S`"``;P!F`"``8P!O`&T` M;0!E`'(`8P!I`&$`;``@`'``<@!O`'``90!R`'0`>0`@`&$`;@!D`"``8P!A M`',`=0!A`&P`=`!Y`"``:0!N`',`=0!R`&$`;@!C`&4`(`!A`&X`9``@`'8` M80!R`&D`;P!U`',`(`!P`&4`<@!S`&\`;@!A`&P`(`!L`&D`;@!E`',`(`!B M`&\`=`!H`"``9`!O`&T`90!S`'0`:0!C`&$`;`!L`'D`(`!A`&X`9``@`&$` M8@!R`&\`80!D`"X`(`!2`&4`=@!E`&X`=0!E`',`(`!I`&X`(`!T`&@`90`@ M`$<`90!N`&4`<@!A`&P`(`!)`&X`0`@`&8`<@!O`&T`(`!I`&X`0`@`'``<@!O`&0`=0!C`'0`0`@`'(`:0!S`&L`0`@`$D`;@!S`'4`<@!A`&X`8P!E`"``1P!R`&\`=0!P`"``*``R M`#$`0`I`"P`(`!A`&X`9``@`'0`:`!E`"`` M00!G`&4`;@!C`'D`(`!!`'4`=`!O`"``1`!I`'8`:0!S`&D`;P!N`"P`(`!A M`',`(`!W`&4`;`!L`"``80!S`"``80`@`&(`<@!O`&$`9``@`'(`80!N`&<` M90`@`&\`9@`@`&,`;P!V`&4`<@!A`&<`90!S`"``9@!O`'(`(`!H`&D`9P!H M`"``;@!E`'0`(`!W`&\`<@!T`&@`(`!I`&X`9`!I`'8`:0!D`'4`80!L`',` M(`!T`&@`<@!O`'4`9P!H`"``=`!H`&4`(`!!`$D`1P`@`%``<@!I`'8`80!T M`&4`(`!#`&P`:0!E`&X`=``@`$<`<@!O`'4`<``N`"``(``-``T`(`!-`&\` M<@!T`&<`80!G`&4`(`!'`'4`80!R`&$`;@!T`'D`(`!O`'``90!R`&$`=`!I M`&\`;@!S`"``<`!R`&\`=@!I`&0`90`@`'(`90!S`&D`9`!E`&X`=`!I`&$` M;``@`&T`;P!R`'0`9P!A`&<`90`@`&<`=0!A`'(`80!N`'0`>0`@`&D`;@!S M`'4`<@!A`&X`8P!E`"``=`!H`&$`=``@`&,`;P!V`&4`<@!S`"``=`!H`&4` M(`!F`&D`<@!S`'0`(`!L`&\`0`@`'(`90!S`&D`9`!E M`&X`8P!E`',`+@`@`"``#0`-`"``00!)`$<`0`@`&$` M;@!D`"``80!B`'(`;P!A`&0`+@`@`$D`;@!S`'4`<@!A`&X`8P!E`"T`;P!R M`&D`90!N`'0`90!D`"``<`!R`&\`9`!U`&,`=`!S`"``8P!O`&X`0`@ M`&$`=0!T`&@`;P!R`&D`=`!I`&4`0`@`&D`;@!T`&4`<@!E`',` M=``@`&4`>`!P`&4`;@!S`&4`(`!O`&X`(`!S`&4`8P!U`'(`:0!T`&D`90!S M`"``;`!E`&X`9`!I`&X`9P`@`'``80!Y`&$`8@!L`&4`+@`@``T`#0`-`"@` M8P`I`$X`90!T`"``4@!E`&$`;`!I`'H`90!D`"``1P!A`&D`;@!S`"``80!N M`&0`(`!,`&\`0`@`',`90!C`'4`<@!I`'0`:0!E`',`(``)``D` M(``)`#$`+``P`#@`-P`@``D`"0`@``D`"0`X`#$`,P`@``D`"0`@``D`"0`V M`#0`,P`@``D`#0`-``T`4P!A`&P`90!S`"``;P!F`"``<@!E`&$`;``@`&4` M`!C`&@`80!N`&<`90`@`'0`<@!A`&X`@!E`&0`(`!A`'``<`!R`&4`8P!I`&$`=`!I M`&\`;@`@`&\`9@`@`&D`;@!V`&4`@!E`&0`(`!G`&$`:0!N`',`(``H`&P` M;P!S`',`90!S`"D`(`!I`&X`8P!L`'4`9`!E`&0`(`!I`&X`(`!T`&@`90`@ M`&,`;P!N`',`;P!L`&D`9`!A`'0`90!D`"``@!E`&0`(`!L M`&\`@!E`&0`(``)``D`(``)`%(`90!A`&P`:0!Z`&4`9``@``D`"0`@``D` M4@!E`&$`;`!I`'H`90!D`"``"0`)`"``"0!2`&4`80!L`&D`>@!E`&0`(``) M``D`(``)`%(`90!A`&P`:0!Z`&4`9``@``D`"0`@``D`4@!E`&$`;`!I`'H` M90!D`"``"0`-``T`"0`H`&D`;@`@`&T`:0!L`&P`:0!O`&X``!E`&0` M(`!M`&$`=`!U`'(`:0!T`&D`90!S`"``"0`)`"0`(``)`#8`.``P`"``"0`) M`"``"0`D`"``"0`Q`"P`,0`T`#@`(``)``D`(``)`"0`(``)`#<`,0`Q`"`` M"0`)`"``"0`D`"``"0`Q`"P`,``Y`#,`(``)``D`(``)`"0`(``)`#$`+``U M`#@`-@`@``D`"0`@``D`)``@``D`,0`L`#(`,0`T`"``"0`-``T`#0!%`'$` M=0!I`'0`>0`@`',`90!C`'4`<@!I`'0`:0!E`',`(``)``D`(``)`#$`+``S M`#8`.``@``D`"0`@``D`"0`R`#D`,0`@``D`"0`@``D`"0`Q`"P`,0`Q`#$` M(``)``D`(``)``D`,P`R`#``(``)``D`(``)``D`.0`S`#``(``)``D`(``) M``D`,P`U`#0`(``)``T`#0`-`%``<@!E`&8`90!R`'(`90!D`"``0`@`&,`;P!N`',`:0!S M`'0`0`@`&(`90!N`&4`9@!I`'0`0`@ M`&8`;P!R`"``00!)`$<`0`@`'(`:0!S`&L`(`!A M`&X`9``@`'(`90!L`&$`=`!I`&\`;@!S`&@`:0!P`',`(`!A`&X`9``@`&T` M80!N`&$`9P!E`"``9P!L`&\`8@!A`&P`(`!L`&D`9@!E`"``8P!A`'0`80!S M`'0`<@!O`'``:`!E`"``<@!I`',`:P!S`"X`(``@``T`#0!'`&4`;@!E`'(` M80!L`"``4@!E`&D`;@!S`'4`<@!A`&X`8P!E`"``(``-``T`1P!E`&X`90!R M`&$`;``@`'(`90!I`&X``!C`&4`@!E`&0`(`!A`',`(`!A`"``<@!E M`&0`=0!C`'0`:0!O`&X`(`!O`&8`(`!P`'(`90!M`&D`=0!M`',`(`!E`&$` M<@!N`&4`9``@`&\`=@!E`'(`(`!T`&@`90`@`&,`;P!N`'0`<@!A`&,`=``@ M`'``90!R`&D`;P!D`"``:0!N`"``<`!R`&\`<`!O`'(`=`!I`&\`;@`@`'0` M;P`@`'0`:`!E`"``<`!R`&\`=`!E`&,`=`!I`&\`;@`@`'(`90!C`&4`:0!V M`&4`9``N`"``00!M`&\`=0!N`'0``!P`&4`;@!S`&4` M+@`@`%0`;P`@`&T`90!E`'0`(`!R`&D`0`@`&\`9@`@`&$`(`!S`&D` M9P!N`&D`9@!I`&,`80!N`'0`(`!L`&\`0`@`'<`<@!I M`'0`=`!E`&X`(`!I`&X`0`@`$$`8P!Q`'4`:0!S`&D`=`!I`&\`;@`@`$,`;P!S`'0`0`@`$$`8P!Q`'4`:0!S`&D`=`!I`&\`;@`@`$,` M;P!S`'0``!P`&4`;@!S`&4`(``)``D`(``)`"@`.``L`#(`,P`U`"`` M"0`I`"``"0`)`"``"0`H`#<`+``X`#8`-@`@``D`*0`@``D`"0`@``D`*``W M`"P`,P`V`#4`(``)`"D`(``-``T`#0!)`&X`8P!R`&4`80!S`&4`(``H`&0` M90!C`'(`90!A`',`90`I`"``9`!U`&4`(`!T`&\`(`!F`&\`<@!E`&D`9P!N M`"``90!X`&,`:`!A`&X`9P!E`"``80!N`&0`(`!O`'0`:`!E`'(`(``)``D` M(``)`"@`,0`S`#@`(``)`"D`(``)``D`(``)`#4`.``@``D`"0`@``D`"0`H M`#8`-0`@``D`*0`@``T`#0!"`&$`;`!A`&X`8P!E`"``80!T`"``90!N`&0` M(`!O`&8`(`!Y`&4`80!R`"``"0`)`"0`(``)`#0`+``V`#0`,P`@``D`"0`@ M``D`)``@``D`-``L`#,`-0`U`"``"0`)`"``"0`D`"``"0`T`"P`,``T`#@` M(``)``T`#0!,`&D`9@!E`"``20!N`',`=0!R`&$`;@!C`&4`(`!2`&4`=`!I M`'(`90!M`&4`;@!T`"``4P!E`'(`=@!I`&,`90!S`"``;P!P`&4`<@!A`'0` M:0!O`&X`@!A`'0`:0!O`&X`(`!E`'@`<`!E M`&X`@!E`&0`(`!G`&$`:0!N`',`(``H`&P`;P!S`',`90!S M`"D`(`!O`&X`(`!S`&4`8P!U`'(`:0!T`&D`90!S`"``"0`)`"``"0`W`#0` M-0`@``D`"0`@``D`"0`V`#0`-@`@``D`"0`@``D`"0`Y`#<`-P`@``D`#0`- M``T`20!N`&,`<@!E`&$``!C`&@`80!N`&<`90`@ M``D`"0`@``D`.0`Q`#8`(``)``D`(``)``D`.0`T`#<`(``)``D`(``)``D` M*``Q`"P`,0`S`#8`(``)`"D`(``-``T`#0!/`'0`:`!E`'(`*`!B`"D`(``) M``D`(``)`#8`-0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`#0`-`%,` M=0!B`'0`;P!T`&$`;``@``D`"0`D`"``"0`S`#@`+``T`#0`-0`@``D`"0`@ M``D`)``@``D`,P`R`"P`.``Q`#``(``)``D`(``)`"0`(``)`#(`.``L`#$` M,``V`"``"0`-``T`0P!O`&X`0`@`&$`8P!Q`'4`:0!S M`&D`=`!I`&\`;@`@`&,`;P!S`'0`0`@`"0`-P`S`#,` M;0!I`&P`;`!I`&\`;@`@`'(`90!L`&$`=`!E`&0`(`!T`&\`(`!C`&@`80!N M`&<`90!S`"``:0!N`"``80!C`'0`=0!A`'(`:0!A`&P`(`!E`',`=`!I`&T` M80!T`&4`0`@ M`&\`9@!F`',`90!T`"``:0!N`"``:0!N`&,`=0!R`'(`90!D`"``<`!O`&P` M:0!C`'D`(`!L`&\`0`L`"``<@!E`&P`80!T`&4`9``@`'0` M;P`@`'0`:`!E`"``90!F`&8`90!C`'0`(`!O`&8`(`!N`&4`=``@`'4`;@!R M`&4`80!L`&D`>@!E`&0`(`!G`&$`:0!N`',`(`!A`&X`9``@`&P`;P!S`',` M90!S`"``;P!N`"``80!V`&$`:0!L`&$`8@!L`&4`(`!F`&\`<@`@`',`80!L M`&4`(`!S`&4`8P!U`'(`:0!T`&D`90!S`"X`(``-``T`(`!)`&X`8P!L`'4` M9`!E`&0`(`!I`&X`(`!T`&@`90`@`&$`8@!O`'8`90`@`'0`80!B`&P`90`@ M`&D`@!E`&0`(`!I M`&X`(`!A`"``;0!A`&X`;@!E`'(`(`!S`&D`;0!I`&P`80!R`"``=`!O`"`` M1`!!`$,`+@`@`$$`;0!O`'(`=`!I`'H`80!T`&D`;P!N`"``;P!F`"``5@!/ M`$(`00`@`'<`80!S`"``)``R`#$`,P!M`&D`;`!L`&D`;P!N`"P`(``D`#(` M,P`Y`&T`:0!L`&P`:0!O`&X`(`!A`&X`9``@`"0`,@`Y`#$`;0!I`&P`;`!I M`&\`;@`@`&D`;@`@`#(`,``P`#<`+``@`#(`,``P`#8`(`!A`&X`9``@`#(` M,``P`#4`+``@`'(`90!S`'``90!C`'0`:0!V`&4`;`!Y`"P`(`!W`&@`:0!L M`&4`(`!T`&@`90`@`'4`;@!A`&T`;P!R`'0`:0!Z`&4`9``@`&(`80!L`&$` M;@!C`&4`(`!W`&$`0`N`"``5`!H`&4`(`!P`&4`<@!C`&4`;@!T M`&$`9P!E`"``;P!F`"``=`!H`&4`(`!U`&X`80!M`&\`<@!T`&D`>@!E`&0` M(`!B`&$`;`!A`&X`8P!E`"``;P!F`"``5@!/`$(`00`@`&$`=``@`#(`,``P M`#<`(`!E`'@`<`!E`&,`=`!E`&0`(`!T`&\`(`!B`&4`(`!A`&T`;P!R`'0` M:0!Z`&4`9``@`&D`;@`@`#(`,``P`#@`(`!T`&@`<@!O`'4`9P!H`"``,@`P M`#$`,@`@`&(`>0`@`'D`90!A`'(`(`!I`',`.@`@`#$`,0`N`#<`<`!E`'(` M8P!E`&X`=``L`"``,0`P`"X`,@!P`&4`<@!C`&4`;@!T`"P`(``X`"X`-`!P M`&4`<@!C`&4`;@!T`"P`(``V`"X`-@!P`&4`<@!C`&4`;@!T`"``80!N`&0` M(``U`"X`.0!P`&4`<@!C`&4`;@!T`"P`(`!R`&4`0`L`"``=P!I`'0`:``@`#4`-P`N`#(`<`!E`'(`8P!E`&X`=``@`&(` M90!I`&X`9P`@`&$`;0!O`'(`=`!I`'H`90!D`"``80!F`'0`90!R`"``9@!I M`'8`90`@`'D`90!A`'(`0`L`"``;0!O M`'(`=`!A`&P`:0!T`'D`(`!A`&X`9``@`&T`;P!R`&(`:0!D`&D`=`!Y`"`` M80!S`',`=0!M`'``=`!I`&\`;@!S`"X`(`!4`&@`90`@`$0`00!#`"``80!M M`&\`<@!T`&D`>@!A`'0`:0!O`&X`(`!C`&@`80!R`&<`90!D`"``=`!O`"`` M:0!N`&,`;P!M`&4`(`!I`&X`8P!L`'4`9`!E`',`(`!T`&@`90`@`&D`;@!C M`'(`90!A`',`90`@`&\`<@`@`&0`90!C`'(`90!A`',`90`@`&\`9@`@`&$` M;0!O`'(`=`!I`'H`80!T`&D`;P!N`"``9@!O`'(`(`!&`$$`4P`Y`#<`+0!R M`&4`;`!A`'0`90!D`"``<@!E`&$`;`!I`'H`90!D`"``8P!A`'``:0!T`&$` M;``@`&<`80!I`&X`0`N`"``(``-``T`(`!4 M`&@`90!R`&4`(`!W`&4`<@!E`"``;@!O`"``:0!M`'``80!I`'(`;0!E`&X` M=`!S`"``;P!F`"``1`!!`$,`(`!O`'(`(`!6`$\`0@!!`"``9@!O`'(`(`!T M`&@`90`@`'D`90!A`'(``!T`"``0@!L`&\`8P!K`%T`@`P!(``@`"``#0`-`#<`+@!6`&$` M<@!I`&$`8@!L`&4`(`!)`&X`=`!E`'(`90!S`'0`(`!%`&X`=`!I`'0`:0!E M`',`(``@``T`#0!&`$D`3@`T`#8`4@`L`"``0P!O`&X`0!P`&4`0`@`&D`=`!S`"``<`!R M`&D`;0!A`'(`>0`@`&(`90!N`&4`9@!I`&,`:0!A`'(`>0`L`"``=P!H`&D` M8P!H`"``:0!S`"``=`!H`&4`(`!P`&$`<@!T`'D`(`!T`&@`80!T`"``80!B M`',`;P!R`&(``!P`&4`8P!T`&4`9``@`&P`;P!S`',`90!S`"``;P!R`"``80`@ M`&T`80!J`&\`<@!I`'0`>0`@`&\`9@`@`'0`:`!E`"``90!X`'``90!C`'0` M90!D`"``<@!E`',`:0!D`'4`80!L`"``<@!E`'0`=0!R`&X`0`@`&D`0`@`&(`90!N`&4`9@!I`&,`:0!A`'(`>0`@`&\`9@`@ M`'0`:`!E`"``5@!)`$4`(`!B`'D`(`!P`&4`<@!F`&\`<@!M`&D`;@!G`"`` M80!N`"``80!N`&$`;`!Y`',`:0!S`"``;P!F`"``=`!H`&4`(`!D`&4`0!S`"``:0!N`'0`90!R`&4`0`@`'<`:`!I`&,`:``@`&4`:0!T`&@` M90!R`"``8P!R`&4`80!T`&4`(`!O`'(`(`!A`&(`0`@`&$`;@!D`"``<@!E`&P`80!T`&4`9``@`'`` M80!R`'0`>0`@`'(`90!L`&$`=`!I`&\`;@!S`&@`:0!P`',`+@`@`$$`20!' M`"``8P!O`&X``!P`&4`8P!T`&4`9``@`&P`;P!S`',` M90!S`"``;P!R`"``80`@`&T`80!J`&\`<@!I`'0`>0`@`&\`9@`@`'0`:`!E M`"``90!X`'``90!C`'0`90!D`"``<@!E`',`:0!D`'4`80!L`"``<@!E`'0` M=0!R`&X`0`@`%8`20!%`',` M(`!W`&@`:0!C`&@`(`!A`'(`90`@`&,`=0!R`'(`90!N`'0`;`!Y`"``8P!O M`&X`0`@`&@`80!S`"```!T`"``0@!L`&\`8P!K M`%T`@`P!(``@`"``#0`-`#@`+@!$`&4`<@!I`'8`80!T`&D`=@!E`',`(`!A M`&X`9``@`$@`90!D`&<`90`@`$$`8P!C`&\`=0!N`'0`:0!N`&<`(``@``T` M#0!!`$D`1P`@`'4`0`L`"``9`!E`&(`=``L`"``8P!O`&T` M;0!O`&0`:0!T`'D`(`!O`'(`(`!O`'0`:`!E`'(`(`!A`',```@`&\`<@`@`'0`:`!E`"``;P!C`&,`=0!R`'(`90!N`&,` M90`@`&\`9@`@`&$`(`!S`'``90!C`&D`9@!I`&4`9``@`'``80!Y`&T`90!N M`'0`(`!E`'8`90!N`'0`+@`@`$0`90!R`&D`=@!A`'0`:0!V`&4`(`!P`&$` M>0!M`&4`;@!T`',`(`!M`&$`>0`@`&(`90`@`&(`80!S`&4`9``@`&\`;@`@ M`&D`;@!T`&4`<@!E`',`=``@`'(`80!T`&4``!C`&P`=0!S`&D`;P!N`"P`(`!!`$D`1P`@`&,`80!R`'(`:0!E M`',`(`!A`&P`;``@`&0`90!R`&D`=@!A`'0`:0!V`&4`0`@`&(`90`@ M`',`90!E`&L`:0!N`&<`(`!T`&\`(`!H`&4`9`!G`&4`(`!C`&4`<@!T`&$` M:0!N`"``80!S`'``90!C`'0``!P`&\`0`@`&8`;P!R`'<`80!R`&0`(`!C`&\`;@!T M`'(`80!C`'0`0`@`&@`90!D`&<`90!S`"X`(`!!`$D`1P!&`%``(`!U M`',`90!S`"``=`!H`&4`(`!P`&4`<@!I`&\`9`!I`&,`(`!D`&\`;`!L`&$` M<@`@`&\`9@!F`',`90!T`"``;0!E`'0`:`!O`&0`(`!T`&\`(`!A`',`0`@`&@`90!D`&<`90!S`"``80!R M`&4`(`!E`'@`8P!L`'4`9`!E`&0`(`!F`'(`;P!M`"``=`!H`&4`(`!A`',` M0!H`&\`;`!D`&4`<@!S`"<`(`!#`&\`;@!T`'(`80!C`'0`(`!$`&4`<`!O M`',`:0!T`',`@`P!(``@`"``#0`-`#D`+@!2`&4``!P`&4` M;@!S`&4``!P`&4` M;@!S`&4`0!E`&$`<@`Z`"``"0`)`"``"0`)`"``"0`)`"`` M"0`)`"``"0`)`"``"0`)``T`#0`-`%(`90!S`&4`<@!V`&4`(`!F`&\`<@`@ M`&P`;P!S`',`90!S`"``80!N`&0`(`!L`&\``!C`&@`80!N`&<`90`@`&4` M9@!F`&4`8P!T`"``"0`)`"``"0`Y`#4`-0`@``D`"0`@``D`"0`W`#0`,0`@ M``D`"0`@``D`"0`H`#8`,@`X`"``"0`I`"``#0`-``T`00!C`'$`=0!I`',` M:0!T`&D`;P!N`',`*`!A`"D`(``)``D`(``)`#,`,0`W`"``"0`)`"``"0`) M`#4`-0`@``D`"0`@``D`"0`@``D`#0`-`$P`;P!S`',`90!S`"``80!N`&0` M(`!L`&\`0!E`&$`<@`Z`"``"0`)`"``"0`)`"``"0`)`"``"0`)`"``"0`) M`"``"0`)``T`#0`-`$X`90!T`"``<@!E`',`90!R`'8`90`@`&8`;P!R`"`` M;`!O`',`0`@`&(`90!N`&4`9@!I`'0`0`@ M`&8`<@!O`&T`(`!L`&D`9@!E`"``<`!R`&\`9`!U`&,`=`!S`"X`(`!3`&@` M;P!R`'0`(`!D`'4`<@!A`'0`:0!O`&X`(`!C`&\`;@!T`'(`80!C`'0`(`!L M`&D`80!B`&D`;`!I`'0`:0!E`',`(`!A`'(`90`@`'``<@!I`&T`80!R`&D` M;`!Y`"``80!C`&,`:0!D`&4`;@!T`"``80!N`&0`(`!H`&4`80!L`'0`:``@ M`'``<@!O`&0`=0!C`'0`0`@`&8`;P!R`"``9@!U`'0`=0!R`&4`(`!L`&D`9@!E`"``<`!O`&P`:0!C M`'D`(`!B`&4`;@!E`&8`:0!T`',`(`!H`&$``!C`&P`=0!S`&D`=@!E`"``;P!F`"``:0!M`&T`90!D`&D`80!T`&4` M+P!T`&4`<@!M`&D`;@!A`&P`(`!F`'4`;@!D`&D`;@!G`"``80!N`&X`=0!I M`'0`:0!E`',`*0`L`"``=P!H`&D`8P!H`"``=@!A`'(`>0`@`&(`>0`@`'0` M90!R`'(`:0!T`&\`<@!Y`"P`(`!Y`&4`80!R`"``;P!F`"``:0!S`',`=0!A M`&X`8P!E`"``80!N`&0`(`!P`'(`;P!D`'4`8P!T`',`+``@`'(`80!N`&<` M90`@`&8`<@!O`&T`(``Q`"X`,`!P`&4`<@!C`&4`;@!T`"``=`!O`"``,0`R M`"X`-0!P`&4`<@!C`&4`;@!T`"``=P!I`'0`:`!I`&X`(`!T`&@`90`@`&8` M:0!R`',`=``@`#(`,`!Y`&4`80!R`',`+@`@`$D`;@!T`&4`<@!E`',`=``@ M`'(`80!T`&4`0`@`&<`90!O`&<`<@!A`'``:`!I`&,`80!L`"`` M80!R`&4`80`@`&T`;P!D`&D`9@!I`&4`9``@`'0`;P`@`&$`;`!L`&\`=P`@ M`&8`;P!R`"``=@!A`'(`:0!A`'0`:0!O`&X`0`@`$,`;P!N`'0`<@!A`&,` M=`!S`"``(``-``T`00!)`$<`(`!F`&\`;`!L`&\`=P!S`"``00!M`&4`<@!I M`&,`80!N`"``20!N`',`=`!I`'0`=0!T`&4`(`!O`&8`(`!#`&4`<@!T`&D` M9@!I`&4`9``@`%``=0!B`&P`:0!C`"``00!C`&,`;P!U`&X`=`!A`&X`=`!S M`"``4P!T`&$`=`!E`&T`90!N`'0`(`!O`&8`(`!0`&\`0`@`'0`;P`L`"`` M80!N`&0`(`!I`&X`=@!E`',`=`!M`&4`;@!T`"``<@!I`',`:P`@`&D`0`L`"``=`!H`&4`(`!C`&\`;@!T`'(`80!C`'0` M(`!H`&\`;`!D`&4`<@`@`"@`=`!R`&$`9`!I`'0`:0!O`&X`80!L`"``=@!A M`'(`:0!A`&(`;`!E`"``80!N`&X`=0!I`'0`:0!E`',`*0`L`"``80!N`&0` M(`!T`&@`90`@`',`90!P`&$`<@!A`'0`90`@`&$`8P!C`&\`=0!N`'0`(`!Q M`'4`80!L`&D`9@!I`&4`0`@`&$`;@!D`"``;`!I M`&8`90`@`&,`;P!N`'0`<@!A`&,`=`!S`"``=`!H`'(`;P!U`&<`:``@`',` M90!P`&$`<@!A`'0`90`@`&$`;@!D`"``=@!A`'(`:0!A`&(`;`!E`"``80!C M`&,`;P!U`&X`=`!S`"P`(`!O`'(`(`!G`&4`;@!E`'(`80!L`"``80!C`&,` M;P!U`&X`=`!S`"``=P!H`&4`;@`@`&X`;P!T`"``<0!U`&$`;`!I`&8`:0!E M`&0`(`!F`&\`<@`@`',`90!P`&$`<@!A`'0`90`@`&$`8P!C`&\`=0!N`'0` M(`!R`&4`<`!O`'(`=`!I`&X`9P`L`"``=P!H`&4`;@`@`$$`20!'`"``8P!O M`&X`=`!R`&$`8P!T`'4`80!L`&P`>0`@`&<`=0!A`'(`80!N`'0`90!E`',` M(`!T`&\`(`!T`&@`90`@`&,`;P!N`'0`<@!A`&,`=``@`&@`;P!L`&0`90!R M`"``*`!V`&$`<@!I`&$`8@!L`&4`(`!C`&\`;@!T`'(`80!C`'0`0`@`'``80!R`'0`:0!A`&P`(`!W`&D`=`!H`&0`<@!A`'<`80!L`',` M(`!P`&P`=0!S`"``80`@`&T`:0!N`&D`;0!U`&T`(`!R`&4`=`!U`'(`;@`@ M`"@`80!N`&0`(`!I`&X`(`!M`&D`;@!O`'(`(`!I`&X`0`@ M`&\`;@`@`&$`;@!Y`"``80!N`&X`:0!V`&4`<@!S`&$`<@!Y`"``9`!A`'0` M90`@`&T`:0!N`'4`0!A`&(`;`!E`"``:0!N M`"``=`!H`&4`(`!E`'8`90!N`'0`(`!O`&8`(`!D`&4`80!T`&@`+``@`&$` M;@!N`'4`:0!T`&D`>@!A`'0`:0!O`&X`+``@`&\`<@`L`"``:0!N`"``;P!T M`&@`90!R`"``:0!N`',`=`!A`&X`8P!E`',`+``@`&$`=``@`',`<`!E`&,` M:0!F`&D`90!D`"``9`!A`'0`90!S`"``9`!U`'(`:0!N`&<`(`!T`&@`90`@ M`&$`8P!C`'4`;0!U`&P`80!T`&D`;P!N`"``<`!E`'(`:0!O`&0`+@`@`%,` M=0!C`&@`(`!B`&4`;@!E`&8`:0!T`',`(`!A`'(`90`@`'(`90!F`&4`<@!R M`&4`9``@`'0`;P`@`&$`0`@`&\`9@!F`&4`<@!E`&0`(`!B`&4`;@!E`&8` M:0!T`"X`(``@``T`#0`@`%0`:`!E`"``80!S`',`90!T`',`(`!S`'4`<`!P M`&\`<@!T`&D`;@!G`"``=`!H`&4`(`!V`&$`<@!I`&$`8@!L`&4`(`!P`&\` M<@!T`&D`;P!N`"``;P!F`"``8@!O`'0`:``@`'0`<@!A`&0`:0!T`&D`;P!N M`&$`;``@`'8`80!R`&D`80!B`&P`90`@`&$`;@!N`'4`:0!T`&D`90!S`"`` M80!N`&0`(`!V`&$`<@!I`&$`8@!L`&4`(`!C`&\`;@!T`'(`80!C`'0`0!A`&(`;`!E`"``"0`)`"``"0`W`#(`.0`@``D`"0`@``D`"0`V`#(` M-P`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@ M``D`"0`@``D`"0`@``D`"0`Q`#``,@`@``D`#0`-``T`30!)`%``(`!M`&$` M=`!C`&@`90!D`"``;@!O`'0`90!S`"``80!N`&0`(`!B`&\`;@!D`',`(`!P M`&$`>0!A`&(`;`!E`"``"0`)`"``"0`Q`#0`+``R`#8`-P`@``D`"0`@``D` M"0`R`#``,``@``D`"0`@``D`"0`Q`"P`,@`Q`#@`(``)``D`(``)``D`,@`L M`#,`,``Y`"``"0`)`"``"0`)`#,`+``Q`#@`.``@``D`"0`@``D`"0`R`"P` M,``S`#D`(``)``D`(``)``D`-0`L`#,`,0`S`"``"0`-``T`#0!3`&4`<@!I M`&4`0!A`&(`;`!E`"``"0`)`"``"0`X M`#<`-``@``D`"0`@``D`"0`V`#4`(``)``D`(``)``D`-P`W`"``"0`)`"`` M"0`)`#,`/``;(`$R`"``"0`)`"``"0`)`#(`-0`@``D`"0`@``D`"0`U`#8` M(``)``D`(``)``D`-@`Q`#D`(``)``T`#0!4`&\`=`!A`&P`(`!!`$D`1P`@ M``D`"0`@``D`,P`V`"P`,@`V`#<`(``)``D`(``)``D`,@`L`#0`.``S`"`` M"0`)`"``"0`)`#(`+``W`#,`-@`@``D`"0`@``D`"0`S`"P`-@`Y`#``(``) M``D`(``)``D`,P`L`#8`-@`S`"``"0`)`"``"0`)`#(`+``Q`#(`,@`@``D` M"0`@``D`"0`R`#$`+``U`#<`,P`@``D`#0`-`$$`20!'`$8`4``Z`"``"0`) M`"``"0`)`"``"0`)`"``"0`)`"``"0`)`"``"0`)`"``"0`)`"``"0`)`"`` M"0`)`"``"0`)`"``"0`)`"``"0`)`"``"0`)`"``"0`)``T`#0`-`$<`20!! M`',`(``)``D`(``)`#$`.0`L`#D`,``X`"``"0`)`"``"0`)`#8`+``S`#<` M,``@``D`"0`@``D`"0`Q`"P`.``S`#$`(``)``D`(``)``D`,0`L`#$`,@`W M`"``"0`)`"``"0`)`#4`.``Q`"``"0`)`"``"0`)`#8`-@`P`"``"0`)`"`` M"0`)`#D`+``S`#,`.0`@``D`#0`-``T`3@!O`'0`90!S`"``80!N`&0`(`!B M`&\`;@!D`',`(`!P`&$`>0!A`&(`;`!E`"``"0`)`"``"0`S`#8`+``V`#<` M-@`@``D`"0`@``D`"0`R`#,`+``V`#<`,``@``D`"0`@``D`"0`T`"P`-0`R M`#(`(``)``D`(``)``D`-``S`#$`(``)``D`(``)``D`-``P`#,`(``)``D` M(``)``D`,P`L`#@`.``U`"``"0`)`"``"0`)`#,`+``W`#8`-0`@``D`#0`- M``T`3`!O`&$`;@!S`"``80!N`&0`(`!M`&\`<@!T`&<`80!G`&4`0!B M`'(`:0!D`"``9@!I`&X`80!N`&,`:0!A`&P`(`!I`&X`0`H`&,`*0`@``D` M"0`@``D`,@`L`#4`-``R`"``"0`)`"``"0`)`#4`,@`R`"``"0`)`"``"0`) M`#0`-P`P`"``"0`)`"``"0`)`#,`-0`V`"``"0`)`"``"0`)`#(`-@`V`"`` M"0`)`"``"0`)`#(`,P`W`"``"0`)`"``"0`)`#8`.0`Q`"``"0`-``T`#0!" M`&$`;@!K`"``9@!I`&X`80!N`&,`:0!N`&<`0!A`&(`;`!E`"``*`!B`"D`(``)``D`(``)`#$`+``X`#,`.0`@ M``D`"0`@``D`"0`Q`"P`,``P`#``(``)``D`(``)``D`-0`T`#(`(``)``D` M(``)``D`,@`R`#4`(``)``D`(``)``D`,0`Q`"``"0`)`"``"0`)`#<`(``) M``D`(``)``D`-0`T`"``"0`-``T`#0!/`'0`:`!E`'(`(`!S`'4`8@!S`&D` M9`!I`&$`<@!I`&4`0`@`$$`20!'`$8`4``@`'0`:`!A`'0` M(`!A`'(`90`@`&$`8P!C`&\`=0!N`'0`90!D`"``9@!O`'(`(`!A`'0`(`!F M`&$`:0!R`"``=@!A`&P`=0!E`"X`(``-``T`#0`)`"@`8@`I`"``"0!!`$D` M1P`@`&0`;P!E`',`(`!N`&\`=``@`&<`=0!A`'(`80!N`'0`90!E`"``=`!H M`&4`0`@`$$`20!'`"``80!N`&0`(`!C`&4` M<@!T`&$`:0!N`"``;P!F`"``:0!T`',`(`!S`'4`8@!S`&D`9`!I`&$`<@!I M`&4`0`@`&$`=P!A`'(`9`!S`"``80!N M`&0`(`!S`&4`=`!T`&P`90!M`&4`;@!T`',`(`!M`&$`:P!E`',`(`!I`'0` M(`!D`&D`9@!F`&D`8P!U`&P`=``@`'0`;P`@`&$```L`"``20!N M`&,`+@`@`"@`0P!A`'(`90!M`&$`<@!K`"D`+@`@`%0`:`!E`"``<`!L`&$` M:0!N`'0`:0!F`&8`0`@`&D`0`N`"``20!N`"``=`!H`&4` M(`!C`'4`<@!R`&4`;@!T`"``80!C`'0`:0!O`&X``!C M`&4`0`@`'0`:`!E`"``0`@`&D`;@`@`%,`=0!B`',`:0!D`&D`80!R M`'D`(`!#`&\`;0!P`&$`;@!I`&4`0`@`$,`;P!M M`'``80!N`&D`90!S`"``(``-``T`00!T`"``1`!E`&,`90!M`&(`90!R`#,` M,0`L`"``,@`P`#``-P`L`"``<`!R`&4`9@!E`'(`<@!E`&0`(`!S`&@`80!R M`&4`:`!O`&P`9`!E`'(`0`@`&,`;P!M`'``80!N`&D`90!S`"``<@!E`'``<@!E M`',`90!N`'0`0`@`$D`3`!&`$,`+``@`&$`(`!W`&@`;P!L M`&P`>0`@`&\`=P!N`&4`9``@`',`=0!B`',`:0!D`&D`80!R`'D`(`!O`&8` M(`!!`$D`1P`N`"``(``-``T`(`!!`'0`(`!$`&4`8P!E`&T`8@!E`'(`,P`Q M`"P`(``R`#``,``W`"P`(`!T`&@`90`@`'``<@!E`&8`90!R`'(`90!D`"`` M`!I`&T`80!T`&4`;`!Y`"``90!V`&4`<@!Y`"``0`@`&(`>0`@`&H`=0!R`&D``!A`&T`<`!L`&4`+``@`'4`;@!L`&4``!I`',`=``@`&D`;@`@`&T`;P!S`'0`(`!O`&8` M(`!T`&@`90`@`&\`=`!H`&4`<@`@`',`=`!A`'0`90!S`"``:0!N`"``=P!H M`&D`8P!H`"``00!)`$<`0`@`&$``!I`&T`80!T`&4`;`!Y`"``.``Q`'``90!R M`&,`90!N`'0`(`!O`&8`(`!T`&@`90`@`&$`9P!G`'(`90!G`&$`=`!E`"`` M90!Q`'4`:0!T`'D`(`!O`&8`(`!!`$D`1P!S`"``8P!O`&X`0`L`"``80!T`"``80`@`'0`;P!T M`&$`;``@`&,`;P!S`'0`(`!O`&8`(``D`#4`+@`Q`&(`:0!L`&P`:0!O`&X` M(`!A`&X`9``@`"0`,0`V`#4`;0!I`&P`;`!I`&\`;@`L`"``<@!E`',`<`!E M`&,`=`!I`'8`90!L`'D`+@`@`%0`:`!E`"``80!V`&4`<@!A`&<`90`@`'`` M<@!I`&,`90`@`'``80!I`&0`(`!P`&4`<@`@`',`:`!A`'(`90`@`&8`;P!R M`"``<@!E`'``=0!R`&,`:`!A`',`90!D`"```!C`&4` M<`!T`"``<`!E`'(`(`!S`&@`80!R`&4`(`!D`&$`=`!A`"D`(``)``D`,@`P M`#``-P`@``D`"0`@``D`,@`P`#``-@`@``D`"0`@``D`,@`P`#``-0`@``D` M#0`-`$X`=0!M`&4`<@!A`'0`;P!R`"``9@!O`'(`(`!E`&$`<@!N`&D`;@!G M`',`(`!P`&4`<@`@`',`:`!A`'(`90`Z`"``"0`)`"``"0`)`"``"0`)`"`` M"0`)`"``"0`)`"``"0`)``T`#0`-`$D`;@!C`&\`;0!E`"``8@!E`&8`;P!R M`&4`(`!C`'4`;0!U`&P`80!T`&D`=@!E`"``90!F`&8`90!C`'0`(`!O`&8` M(`!A`&X`(`!A`&,`8P!O`'4`;@!T`&D`;@!G`"``8P!H`&$`;@!G`&4`(``) M``D`)``@``D`-@`L`#(`,``P`"``"0`)`"``"0`D`"``"0`Q`#0`+``P`#$` M-``@``D`"0`@``D`)``@``D`,0`P`"P`-``W`#<`(``)``T`#0`-`$,`=0!M M`'4`;`!A`'0`:0!V`&4`(`!E`&8`9@!E`&,`=``@`&\`9@`@`&$`;@`@`&$` M8P!C`&\`=0!N`'0`:0!N`&<`(`!C`&@`80!N`&<`90`L`"``;@!E`'0`(`!O M`&8`(`!T`&$`>``@``D`"0`@``D`"0`@``D`"0`@``D`,P`T`"``"0`)`"`` M"0`)`"``"0`-``T`3@!E`'0`(`!I`&X`8P!O`&T`90`@`&$`<`!P`&P`:0!C M`&$`8@!L`&4`(`!T`&\`(`!C`&\`;0!M`&\`;@`@`',`=`!O`&,`:P`@`&8` M;P!R`"``8@!A`',`:0!C`"``10!0`%,`(``)``D`(``)`#8`+``R`#``,``@ M``D`"0`@``D`"0`Q`#0`+``P`#0`.``@``D`"0`@``D`"0`Q`#``+``T`#<` M-P`@``D`#0`-``T`20!N`'0`90!R`&4`0`@`$8`:0!N`&$`;@!C`&D`80!L`"`` M1`!A`'0`80`@`"``#0`-`%,`=`!A`'0`=0!T`&\`<@!Y`"``0`@`&8`:0!L`&D`;@!G`"``8@!A`',`:0!S`"X`(`!4`&@`90`@`&(`80!S M`&D`0`@`&8`:0!L`&D` M;@!G`"``8@!A`',`:0!S`"X`(`!!`$D`1P`@`%,`=`!A`'(`(`!,`&D`9@!E M`"P`(`!!`$D`1P`@`$4`9`!I`',`;P!N`"``3`!I`&8`90`L`"``3@!A`&X` M(`!3`&@`80!N`"``80!N`&0`(`!0`&@`:0!L`&$`;0!L`&D`9@!E`"``80!R M`&4`(`!E`',`=`!I`&T`80!T`&4`9``@`&(`80!S`&4`9``@`&\`;@`@`'0` M:`!E`&D`<@`@`'(`90!S`'``90!C`'0`:0!V`&4`(`!L`&\`8P!A`&P`(`!C M`&\`=0!N`'0`<@!Y`"``9@!I`&P`:0!N`&<`(`!B`&$``!E`',`+@`@``T`#0`-``D`*`!C M`"D`(``)`$D`;@!C`&P`=0!D`&4`0`@`&8`:0!N`&$`;@!C`&D`80!L`"``0`@`&H`=0!R`&D`@!E`&0` M(`!C`&\`0!H`&\`;`!D`&4`<@`@`&P`:0!A`&(`:0!L`&D`=`!I`&4`0`@`&,`80!P`&D`=`!A`&P`(`!O`&8`(`!!`$D`1P!S M`"``:0!N`',`=0!R`&$`;@!C`&4`(`!S`'4`8@!S`&D`9`!I`&$`<@!I`&4` M`!C`&4`90!D`&4`9``@`&T`:0!N`&D`;0!U`&T`(`!C`&\`;0!P M`&$`;@!Y`"``80!C`'0`:0!O`&X`(`!L`&4`=@!E`&P`(`!R`&4`<0!U`&D` M<@!E`&T`90!N`'0`0`@`"0`,P!B`&D`;`!L`&D`;P!N`"`` M;P!F`"``8P!A`'``:0!T`&$`;``@`&D`;@!T`&\`(`!$`&\`;0!E`',`=`!I M`&,`(`!'`&4`;@!E`'(`80!L`"``20!N`',`=0!R`&$`;@!C`&4`(`!S`'4` M8@!S`&D`9`!I`&$`<@!I`&4``!T`"``0@!L`&\`8P!K`%T`@`P!(``@`"``#0`-`#$`-@`N`$8`80!I`'(` M(`!6`&$`;`!U`&4`(`!O`&8`(`!&`&D`;@!A`&X`8P!I`&$`;``@`$D`;@!S M`'0`<@!U`&T`90!N`'0``!C M`&P`=0!D`&4`0`@`&D`;@`@`&$`;@`@`&\`<@!D M`&4`<@!L`'D`(`!T`'(`80!N`',`80!C`'0`:0!O`&X`(`!B`&4`=`!W`&4` M90!N`"``;0!A`'(`:P!E`'0`(`!P`&$`<@!T`&D`8P!I`'``80!N`'0`0`@`&@`80!V`&4`(`!M`&\`<@!E`"`` M<`!R`&D`8P!I`&X`9P`@`&\`8@!S`&4`<@!V`&$`8@!I`&P`:0!T`'D`(`!A M`&X`9``@`&P`90!S`',`(`!J`'4`9`!G`&T`90!N`'0`(`!I`',`(`!U`',` M90!D`"``:0!N`"``;0!E`&$`0!P`&4`(`!O`&8`(`!F`&D`;@!A`&X`8P!I`&$`;``@`&D`;@!S`'0` M<@!U`&T`90!N`'0`+``@`'<`:`!E`'0`:`!E`'(`(`!T`&@`90`@`&8`:0!N M`&$`;@!C`&D`80!L`"``:0!N`',`=`!R`'4`;0!E`&X`=``@`&D``!E`&0`(`!M`&$`=`!U`'(` M:0!T`&D`90!S`"P`(`!E`'$`=0!I`'0`>0`@`',`90!C`'4`<@!I`'0`:0!E M`',`+``@`',`90!C`'4`<@!I`'0`:0!E`',`(`!A`'8`80!I`&P`80!B`&P` M90`@`&8`;P!R`"``@!E`',`(`!T`&@`90`@`'4`0`@`',`90!C`'4`<@!I`'0`:0!E`',`+``@`&4`<0!U`&D`=`!I`&4` M0`@`'0`<@!A`&0`90!D`"``;0!U`'0`=0!A M`&P`(`!F`'4`;@!D`',`(`!W`&D`=`!H`"``<0!U`&\`=`!E`&0`(`!M`&$` M<@!K`&4`=``@`'``<@!I`&,`90!S`"X`(``@``T`#0`@`$$`20!'`"``90!S M`'0`:0!M`&$`=`!E`',`(`!T`&@`90`@`&8`80!I`'(`(`!V`&$`;`!U`&4` M(`!O`&8`(`!F`&D`>`!E`&0`(`!I`&X`8P!O`&T`90`@`&D`;@!S`'0`<@!U M`&T`90!N`'0`0`N`"``5`!H M`&D`0`@`&,`;P!N`',`:0!D`&4` M<@!S`"```!E`&0`(`!I`&X`8P!O`&T`90`@`&D`;@!S`'0`<@!U M`&T`90!N`'0`0!B`'(`:0!D`"``9@!I`&X`80!N`&,` M:0!A`&P`(`!I`&X`0!I`&4`;`!D`"``8P!O`'(`<`!O`'(`80!T`&4`(`!B`&\`;@!D M`',`+``@`&$`;@!D`"``;0!O`',`=``@`&T`;P!R`'0`9P!A`&<`90`M`"`` M80!N`&0`(`!A`',`0`@`&D`;@!S`'0`<@!U`&T`90!N`'0` M0`@`&4`=@!I`&0`90!N`&,`90`@`',`=0!C`&@`(`!A`',`(`!T`'(` M80!N`',`80!C`'0`:0!O`&X`0`@ M`'0`<@!A`&X``!T`"``0@!L M`&\`8P!K`%T`@`P!(``@`"``#0`-`#$`-P`N`%,`:`!A`'(`90`M`&(`80!S M`&4`9``@`$4`;0!P`&P`;P!Y`&4`90`@`$,`;P!M`'``90!N`',`80!T`&D` M;P!N`"``4`!L`&$`;@!S`"``(``-``T`1`!U`'(`:0!N`&<`(`!T`&@`90`@ M`'D`90!A`'(`(`!E`&X`9`!E`&0`(`!$`&4`8P!E`&T`8@!E`'(`,P`Q`"P` M(``R`#``,``W`"P`(`!!`$D`1P`@`&4`;0!P`&P`;P!Y`&4`90!S`"``:`!A M`&0`(`!R`&4`8P!E`&D`=@!E`&0`(`!C`&\`;0!P`&4`;@!S`&$`=`!I`&\` M;@`@`'``=0!R`',`=0!A`&X`=``@`'0`;P`@`&$`=P!A`'(`9`!S`"``=0!N M`&0`90!R`"``0!E`&4`(`!C`&\`;0!P M`&4`;@!S`&$`=`!I`&\`;@`@`'``;`!A`&X`0`@`&$`8P!C M`&\`=0!N`'0`+``@`&4`>`!C`&4`<`!T`"``9@!O`'(`(`!S`&@`80!R`&4` M(`!A`'<`80!R`&0`0!E`&$`<@!S`"P`(`!!`$D`1P!S`"``;@!O`&X` M+0!E`&T`<`!L`&\`>0!E`&4`(`!D`&D`<@!E`&,`=`!O`'(`0!E`&4`(`!C`&\`;0!P`&4`;@!S`&$`=`!I`&\`;@`@`&4`>`!P`&4`;@!S M`&4`(`!F`'(`;P!M`"``;P!P`'0`:0!O`&X`(`!A`'<`80!R`&0`0!M`&4`;@!T M`',`(`!A`&X`9``@`'(`90!C`&\`9P!N`&D`>@!E`"``=`!H`&4`(`!R`&4` M;`!A`'0`90!D`"``8P!O`&T`<`!E`&X`0`L`"``9@!I`&X` M80!N`&,`:0!A`&P`(`!S`'0`80!T`&4`;0!E`&X`=``@`&$`;0!O`'4`;@!T M`',`(`!F`&\`<@`@`'0`:`!E`"``<`!R`&D`;P!R`"``<`!E`'(`:0!O`&0` M`!P`&4`;@!S`&D`;@!G`"``0!E`&4`(`!"`&4`;@!E`&8`:0!T`',`(``@``T`#0!0`&4` M;@!S`&D`;P!N`"``4`!L`&$`;@!S`"``(``-``T`00!)`$<`+``@`&D`=`!S M`"``0`@`'8`90!S`'0`(`!A`&8`=`!E`'(`(``U`'D`90!A`'(`0!E`&$`<@!S`"X`(`!.`&\`;@`M M`%4`+@!3`"X`(`!D`&4`9@!I`&X`90!D`"``8@!E`&X`90!F`&D`=``@`'`` M;`!A`&X`0!E`&$`<@!S`"``<`!R`&4`8P!E`&0`:0!N M`&<`(`!R`&4`=`!I`'(`90!M`&4`;@!T`"P`(`!O`'(`(`!O`&X`(`!P`&\` M:0!N`'0`0`N`"``00!S`',`90!T`',` M+``@`&\`8@!L`&D`9P!A`'0`:0!O`&X`0!S`"``<`!L`&$`;@!S`"``80!R`&4`(`!I`&X`8P!L M`'4`9`!E`&0`(`!H`&4`<@!E`&D`;@`N`"``5`!H`&4`(`!A`',`0!E`&4`0`@`&4`>`!E`&,`=0!T`&D`=@!E`',` M+``@`&0`90!S`&D`9P!N`&4`9``@`'0`;P`@`',`=0!P`'``;`!E`&T`90!N M`'0`(`!P`&4`;@!S`&D`;P!N`"``8@!E`&X`90!F`&D`=`!S`"``<`!R`&\` M=@!I`&0`90!D`"``8@!Y`"``00!)`$<`0!A`&(`;`!E M`"``=`!O`"``8P!E`'(`=`!A`&D`;@`@`&4`;0!P`&P`;P!Y`&4`90!S`"`` M=0!N`&0`90!R`"``=`!H`&4`(`!!`$D`1P`@`%4`+@!3`"X`(`!R`&4`=`!I M`'(`90!M`&4`;@!T`"``<`!L`&$`;@`@`&$```@`&P`:0!M`&D`=`!A M`'0`:0!O`&X`0!A`&(`;`!E`"P`(`!A M`&X`9``@`'0`:`!E`"``4P!U`'``<`!L`&4`;0!E`&X`=`!A`&P`(`!%`'@` M90!C`'4`=`!I`'8`90`@`%(`90!T`&D`<@!E`&T`90!N`'0`(`!0`&P`80!N M`"``*`!3`'4`<`!P`&P`90!M`&4`;@!T`&$`;``@`%``;`!A`&X`*0`L`"`` M=P!H`&D`8P!H`"``<`!R`&\`=@!I`&0`90!S`"``80!D`&0`:0!T`&D`;P!N M`&$`;``@`'(`90!T`&D`<@!E`&T`90!N`'0`(`!B`&4`;@!E`&8`:0!T`',` M(`!T`&\`(`!D`&4`0`@ M`&4`80!C`&@`(`!Y`&4`80!R`"``;P!F`"``8P!R`&4`9`!I`'0`90!D`"`` M0`@`'``<@!E`&0`90!C M`&4``!C M`&4`0`L`"``80!N`&0`(`!F`'(`;P!M`"``80!N M`'D`(`!Q`'4`80!L`&D`9@!I`&4`9``@`'``90!N`',`:0!O`&X`(`!P`&P` M80!N`"``;P!F`"``<`!R`&D`;P!R`"``90!M`'``;`!O`'D`90!R`',`+@`@ M`"``#0`-`%``;P!S`'0`<@!E`'0`:0!R`&4`;0!E`&X`=``@`%``;`!A`&X` M0`L`"``=P!H`&D`;`!E`"``=`!H`&4` M(`!L`&D`9@!E`"``:0!N`',`=0!R`&$`;@!C`&4`(`!B`&4`;@!E`&8`:0!T M`',`(`!A`'(`90`@`&X`;P!N`"T`8P!O`&X`=`!R`&D`8@!U`'0`;P!R`'D` M+@`@`%(`90!T`&D`<@!E`&4`(`!M`&4`9`!I`&,`80!L`"``8P!O`&X`=`!R M`&D`8@!U`'0`:0!O`&X`0!M`&4`;@!T M`',`(`!R`&4`9`!U`&,`90!D`"``8@!Y`"``8P!E`'(`=`!A`&D`;@`@`&,` M<@!E`&0`:0!T`',`(`!F`&\`<@`@`'``;P!S`'0`+0`Q`#D`.0`S`"``<@!E M`'0`:0!R`&4`90!S`"X`(`!4`&@`90!S`&4`(`!C`&\`;@!T`'(`:0!B`%$` M`4(`90!N`&4`9@!I`'0`0`@`%,` M=`!A`'(`<@`@`$D`;@!T`&4`<@!N`&$`=`!I`&\`;@!A`&P`(`!#`&\`;0!P M`&$`;@!Y`"P`(`!)`&X`8P`N`"``80!N`&0`(`!#`"X`5@`N`"``4P!T`&$` M<@!R`"``)@`@`$,`;P`N`"P`(`!)`&X`8P`N`*<+`2``(``@``T`#0`Q`#D` M+@!"`&4`;@!E`&8`:0!T`',`(`!0`'(`;P!V`&D`9`!E`&0`(`!B`'D`(`!3 M`'0`80!R`'(`(`!)`&X`=`!E`'(`;@!A`'0`:0!O`&X`80!L`"``0P!O`&T` M<`!A`&X`>0`L`"``20!N`&,`+@`@`&$`;@!D`"``0P`N`%8`+@`@`%,`=`!A M`'(`<@`@`$,`;P`N`"P`(`!)`&X`8P`N`"``(``-``T`4P!)`$,`3P`@`&@` M80!S`"``<`!R`&\`=@!I`&0`90!D`"``80`@`',`90!R`&D`90!S`"``;P!F M`"``=`!W`&\`+0!Y`&4`80!R`"``1`!E`&8`90!R`'(`90!D`"``0P!O`&T` M<`!E`&X`0`@`$$`20!'`"P`(`!A`&P` M=`!H`&\`=0!G`&@`(`!!`$D`1P`@`&@`80!S`"``<@!E`&,`;P!R`&0`90!D M`"``80`@`&,`:`!A`'(`9P!E`"``=`!O`"``<@!E`'``;P!R`'0`90!D`"`` M90!A`'(`;@!I`&X`9P!S`"``9@!O`'(`(`!T`&@`90`@`&0`90!F`&4`<@!R M`&4`9``@`&,`;P!M`'``90!N`',`80!T`&D`;P!N`"``80!M`&\`=0!N`'0` M0`@`%,`20!#`$\` M(`!F`&\`<@`@`'0`:`!E`"``8@!E`&X`90!F`&D`=``@`&\`9@`@`'0`:`!E M`"``<`!A`'(`=`!I`&,`:0!P`&$`;@!T`"``80!N`&0`(`!D`&D`0`@`&T`80!Y`"``<`!E M`'(`;0!I`'0`(`!A`&X`(`!E`&$`<@!L`'D`(`!P`&$`>0!O`'4`=``@`&\` M9@`@`'4`;@!I`'0`0!O`'4`=``L`"``=`!H`&4`(`!P`&$`<@!T`&D`8P!I`'``80!N M`'0`(`!I`',`(`!N`&\`=``@`&4`;@!T`&D`=`!L`&4`9``@`'0`;P`@`'8` M;P!T`&4`+``@`&0`:0!S`'``;P!S`&4`(`!O`&8`(`!O`'(`(`!R`&4`8P!E M`&D`=@!E`"``9`!I`'8`:0!D`&4`;@!D`',`(`!W`&D`=`!H`"``<@!E`',` M<`!E`&,`=``@`'0`;P`@`',`=0!C`&@`(`!S`&@`80!R`&4`0`@`'0`90!R`&T`:0!N`&$`=`!I`&\`;@`@`&\`9@`@`&4`;0!P M`&P`;P!Y`&T`90!N`'0`(`!W`&D`=`!H`"``00!)`$<`(`!P`'(`:0!O`'(` M(`!T`&\`(`!N`&\`<@!M`&$`;``@`'(`90!T`&D`<@!E`&T`90!N`'0`(`!A M`&<`90`N`"``50!N`&0`90!R`"``=`!H`&4`(`!3`$D`0P!/`"``4`!L`&$` M;@!S`"P`(`!3`$D`0P!/`',`(`!"`&\`80!R`&0`(`!O`&8`(`!$`&D`<@!E M`&,`=`!O`'(``!P`&4`;@!S M`&4`(`!I`&X`(``R`#``,``V`"``:0!N`&,`;`!U`&0`90!D`"``=@!A`'(` M:0!O`'4`0`@`'(`90!L`&$`=`!I M`&X`9P`@`'0`;P`@`',`=`!O`&,`:P`M`',`<`!L`&D`=`!S`"``80!N`&0` M(`!O`'0`:`!E`'(`(`!M`&D`0`@`#(`,``P`#8` M+``@`$,`+@!6`"X`(`!3`'0`80!R`'(`(`!#`&\`+@`L`"``20!N`&,`+@`@ M`"@`4P!T`&$`<@!R`"D`(`!C`&\`;0!P`&P`90!T`&4`9``@`&D`=`!S`"`` M=`!E`&X`9`!E`'(`(`!O`&8`9@!E`'(`(`!T`&\`(`!P`'4`<@!C`&@`80!S M`&4`(`!3`'0`80!R`'(`(`!I`&X`=`!E`'(`90!S`'0`0`N`"``(``R``%2`&4`;`!A`'0`90!D`"``4`!A`'(`=`!Y M`"``5`!R`&$`;@!S`&$`8P!T`&D`;P!N`',`(`!$`&D``!T`"``0@!L`&\`8P!K`%T`C@0`@`%,`=`!A`'(`<@`L`"``4P!)`$,`3P`L`"`` M10!D`'<`80!R`&0`(`!%`"X`(`!-`&$`=`!T`&@`90!W`',`+``@`$T`80!U M`'(`:0!C`&4`(`!2`"X`(`!'`'(`90!E`&X`8@!E`'(`9P`L`"``=`!H`&4` M(`!-`&$`=0!R`&D`8P!E`"``4@`N`"``80!N`&0`(`!#`&\`<@!I`&X`;@!E M`"``4``N`"``1P!R`&4`90!N`&(`90!R`&<`(`!&`&$`;0!I`&P`>0`@`$8` M;P!U`&X`9`!A`'0`:0!O`&X`+``@`$D`;@!C`"X`+``@`'0`:`!E`"``50!N M`&D`=@!E`'(`0`S`#$`+``@`#(`,``P`#@`+``@ M`'0`:`!I`',`(`!O`'<`;@!E`'(`0`@ M`#$`-``N`#$`<`!E`'(`8P!E`&X`=``@`&\`9@`@`'0`:`!E`"``=@!O`'0` M:0!N`&<`(`!S`'0`;P!C`&L`(`!O`&8`(`!!`$D`1P`N`"``00!L`'0`:`!O M`'4`9P!H`"``=`!H`&4``!C`&@`80!N`&<`90`@`$$`8P!T`"P`(`!R`&4`<`!O`'(`=`!I M`&X`9P`@`',`80!L`&4`0`@`&,`;P!U`'(`0!M`&4`;@!T`"``9@!O`'(`(`!T`&@`90`@`'``<@!O`&0`=0!C M`'0`:0!O`&X`(`!O`&8`(`!I`&X``!I`&T`80!T`&4`;`!Y`"``)``Q`#(`;0!I`&P` M;`!I`&\`;@`@`&D`;@`@`#(`,``P`#<`+``@`"0`-``W`&T`:0!L`&P`:0!O M`&X`(`!I`&X`(``R`#``,``V`"P`(`!A`&X`9``@`"0`,@`Q`#0`;0!I`&P` M;`!I`&\`;@`@`&D`;@`@`#(`,``P`#4`+@`@`$$`20!'`"``80!L`',`;P`@ M`'(`90!C`&4`:0!V`&4`9``@`&X`;P`@`'(`90!N`'0`80!L`"``9@!E`&4` M0`@`"0`,@`P`"P`,``P`#``(`!I`&X`(``R`#``,``U`"``=`!O`"``4P!T M`&$`<@!R`"X`(`!!`$D`1P`@`&$`;`!S`&\`(`!R`&4`8P!E`&D`=@!E`&0` M(`!N`&\`;@!E`"``:0!N`"``,@`P`#``-P`@`&$`;@!D`"``,@`P`#``-@`@ M`&$`;@!D`"``80!P`'``<@!O`'@`:0!M`&$`=`!E`&P`>0`@`"0`,@!M`&D` M;`!L`&D`;P!N`"``:0!N`"``,@`P`#``-0`L`"``<@!E`',`<`!E`&,`=`!I M`'8`90!L`'D`+``@`&8`<@!O`&T`(`!3`$D`0P!/`"P`(`!A`&X`9``@`'`` M80!I`&0`(`!N`&\`;@!E`"``:0!N`"``,@`P`#``-P`@`&$`;@!D`"``,@`P M`#``-@`@`&$`;@!D`"``80!P`'``<@!O`'@`:0!M`&$`=`!E`&P`>0`@`"0` M,0!M`&D`;`!L`&D`;P!N`"``:0!N`"``,@`P`#``-0`@`'0`;P`@`%,`20!# M`$\`+``@`&$`0!A`&(`;`!E`',`(`!T`&\` M(`!R`&4`;`!A`'0`90!D`"``<`!A`'(`=`!I`&4``!T`"`` M0@!L`&\`8P!K`%T`@`P!(``@`"``#0`-`#(`,0`N`$8`90!D`&4`<@!A`&P` M(`!)`&X`8P!O`&T`90`@`%0`80!X`&4```@ M`'(`90!T`'4`<@!N`"X`(`!0`'(`:0!O`'(`(`!T`&\`(``R`#``,``W`"P` M(`!,`&D`9@!E`"``20!N`',`=0!R`&$`;@!C`&4`(`!S`'4`8@!S`&D`9`!I M`&$`<@!I`&4```@`'(`90!T`'4`<@!N`"X`(`!/ M`'0`:`!E`'(`(`!5`"X`4P`N`"```!E`&0`+``@`&$`;@!D`"``:0!N M`&,`;P!M`&4`(`!T`&$`>``@`&4`>`!P`&4`;@!S`&4`(`!I`',`(`!R`&4` M8P!O`'(`9`!E`&0`+``@`&(`80!S`&4`9``@`&\`;@`@`&$`<`!P`&P`:0!C M`&$`8@!L`&4`(`!5`"X`4P`N`"``80!N`&0`(`!F`&\`<@!E`&D`9P!N`"`` M`!E`',`(`!H`&$`=@!E`"``;@!O`'0`(`!B`&4`90!N M`"``<`!R`&\`=@!I`&0`90!D`"``;P!N`"``)``Q`"X`-0!B`&D`;`!L`&D` M;P!N`"``;P!F`"``=0!N`&0`:0!S`'0`<@!I`&(`=0!T`&4`9``@`&4`80!R M`&X`:0!N`&<`0`@`'(`90!L`&$`=`!E`&0`(`!T`&\`(`!T`&@`90!S`&4`(`!E`&$`<@!N M`&D`;@!G`',`+@`@`%4`+@!3`"X`9@!E`&0`90!R`&$`;``@`&D`;@!C`&\` M;0!E`"``=`!A`'@`90!S`"``:`!A`'8`90`@`&X`;P!T`"``8@!E`&4`;@`@ M`'``<@!O`'8`:0!D`&4`9``@`&\`;@`@`'0`:`!E`"``=0!N`&0`:0!S`'0` M<@!I`&(`=0!T`&4`9``@`&4`80!R`&X`:0!N`&<``!T`&4`;@!T`"``=`!H`&$`=``@ M`',`=0!C`&@`(`!E`&$`<@!N`&D`;@!G`',`(`!H`&$`=@!E`"``8@!E`&4` M;@`@`'(`90!I`&X`=@!E`',`=`!E`&0`(`!A`&(`<@!O`&$`9``@`&D`;@!D M`&4`9@!I`&X`:0!T`&4`;`!Y`"X`(`!!`'0`(`!$`&4`8P!E`&T`8@!E`'(` M,P`Q`"P`(``R`#``,``W`"P`(`!T`&@`90`@`&,`=0!M`'4`;`!A`'0`:0!V M`&4`(`!A`&T`;P!U`&X`=``@`&\`9@`@`'4`;@!D`&D`0`@`'0`:`!A`'0`(`!W`&\`=0!L`&0`(`!A M`'(`:0!S`&4`(`!I`&8`(`!T`&@`90!S`&4`(`!E`&$`<@!N`&D`;@!G`',` M(`!W`&4`<@!E`"``;@!O`'0`(`!P`&4`<@!M`&$`;@!E`&X`=`!L`'D`(`!R M`&4`:0!N`'8`90!S`'0`90!D`"``80!B`'(`;P!A`&0`(`!I`',`(`!N`&\` M=``@`'``<@!A`&,`=`!I`&,`80!B`&P`90`N`"``(``-``T`(`!!`"``8P!O M`&T`<`!O`&X`90!N`'0`(`!O`&8`(`!L`&D`9@!E`"``:0!N`',`=0!R`&$` M;@!C`&4`(`!S`'4`<@!P`&P`=0!S`"``80!C`&,`=0!M`'4`;`!A`'0`90!D M`"``<`!R`&D`;P!R`"``=`!O`"``,0`Y`#@`-``@`&D`0`@`&P` M:0!M`&D`=`!A`'0`:0!O`&X```@`&P`80!W`"``=`!O`"``<`!E`'(`;0!I`'0`(`!L`&D`9@!E`"`` M:0!N`',`=0!R`&$`;@!C`&4`(`!C`&\`;0!P`&$`;@!I`&4```@`$4`>`!A`&T`:0!N`&$`=`!I`&\`;@!S M`"``(``-``T`20!N`"``1`!E`&,`90!M`&(`90!R`"``,@`P`#``-P`L`"`` M00!)`$<`(`!R`&4`80!C`&@`90!D`"``80`@`',`90!T`'0`;`!E`&T`90!N M`'0`(`!W`&D`=`!H`"``=`!H`&4`(`!)`%(`4P`@`&D`;@`@`'0`:`!E`"`` M50!N`&D`=`!E`&0`(`!3`'0`80!T`&4```@`'D`90!A`'(`0!E`&$`<@!S`"``;P!F`"``4P!U M`&X`00!M`&4`<@!I`&,`80`@`&8`<@!O`&T`(`!3`&4`<`!T`&4`;0!B`&4` M<@`S`#``+``@`#$`.0`Y`#4`(`!T`&@`<@!O`'4`9P!H`"``1`!E`&,`90!M M`&(`90!R`#,`,0`L`"``,0`Y`#D`.``L`"``80!N`&0`(`!F`&\`<@`@`%,` M=0!N`$$`;0!E`'(`:0!C`&$`(`!,`&D`9@!E`"``20!N`',`=0!R`&$`;@!C M`&4`(`!#`&\`;0!P`&$`;@!Y`"``80!N`&0`(`!3`'4`8@!S`&D`9`!I`&$` M<@!I`&4``!A`&T`:0!N`&$`=`!I`&\`;@`@ M`&\`9@`@`'0`:`!E`"``0!E`&$`<@!S`"``,@`P`#``,``M`#(`,``P`#(`(`!W`&$` M0`@`#(`,``P M`#@`(`!W`&D`=`!H`"``80`@`',`:0!G`&X`90!D`"``0!A`&(` M;`!E`"``=`!O`"``=`!H`&4`(`!)`%(`4P`@`&8`;P!R`"``=`!H`&4`0!E`&$`<@!S`"X`(`!!`$D`1P`@`&D`0`@`$8`:0!N`&$`;@!C`&D`80!L`"`` M20!N`&8`;P!R`&T`80!T`&D`;P!N`"``*`!5`&X`80!U`&0`:0!T`&4`9``I M`"``(``-``T`5`!H`&4`(`!F`&\`;`!L`&\`=P!I`&X`9P`@`'$`=0!A`'(` M=`!E`'(`;`!Y`"``9@!I`&X`80!N`&,`:0!A`&P`(`!I`&X`9@!O`'(`;0!A M`'0`:0!O`&X`(`!F`&\`<@`@`&4`80!C`&@`(`!O`&8`(`!T`&@`90`@`'0` M:`!R`&4`90`@`&T`;P!N`'0`:`!S`"``90!N`&0`90!D`"``30!A`'(`8P!H M`#,`,0`L`"``2@!U`&X`90`S`#``+``@`%,`90!P`'0`90!M`&(`90!R`#,` M,``@`&$`;@!D`"``1`!E`&,`90!M`&(`90!R`#,`,0`L`"``,@`P`#``-P`@ M`&$`;@!D`"``,@`P`#``-@`@`&D`0`@`&8`;P!R`"``80`@`&8`80!I`'(`(`!S`'0`80!T`&4`;0!E`&X` M=``@`&\`9@`@`'0`:`!E`"``<@!E`',`=0!L`'0``!E`',`+``@`&T`:0!N`&\`<@!I`'0`>0`@ M`&D`;@!T`&4`<@!E`',`=``@`&$`;@!D`"``8P!U`&T`=0!L`&$`=`!I`'8` M90`@`&4`9@!F`&4`8P!T`"``;P!F`"``80!N`"``80!C`&,`;P!U`&X`=`!I M`&X`9P`@`&,`:`!A`&X`9P!E`"``"0`)`"``"0`V`"P`,0`W`#(`(``)``D` M(``)``D`-``L`#<`.0`S`"``"0`)`"``"0`)`#8`+``S`#(`.``@``D`"0`@ M``D`"0`U`"P`,@`T`#$`(``)``D`(``)``D`-``L`#@`-P`Y`"``"0`)`"`` M"0`)`#8`+``S`#``,0`@``D`"0`@``D`"0`H`#@`+``T`#,`-@`@``D`*0`@ M``D`"0`@``D`-0`L`#,`-0`R`"``"0`-``T`#0!)`&X`8P!O`&T`90`@`"@` M;`!O`',```@``D`"0`@``D`"0`@``D`"0`@``D`,``N`#``,0`@``D`"0`@``D`"0`@ M``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D`"0`@``D` M"0`@``D`"0`@``D`"0`@``D`#0`-`$X`90!T`"``:0!N`&,`;P!M`&4`(``H M`&P`;P!S`',`*0`@``D`"0`D`"``"0`Q`"X`-0`X`"``"0`)`"``"0`D`"`` M"0`Q`"X`,@`R`"``"0`)`"``"0`D`"``"0`Q`"X`-@`T`"``"0`)`"``"0`D M`"``"0`Q`"X`,@`S`"``"0`)`"``"0`D`"``"0`Q`"X`,@`P`"``"0`)`"`` M"0`D`"``"0`Q`"X`-@`R`"``"0`)`"``"0`D`"``"0`H`#(`+@`P`#@`(``) M`"D`(``)``D`)``@``D`,0`N`#,`,@`@``D`#0`-`$0`:0!L`'4`=`!E`&0` M(``)``D`(``)``D`(``)``D`(``)``D`(``)``D`(``)``D`(``)``D`(``) M``D`(``)``D`(``)``D`(``)``D`(``)``D`(``)``D`(``)``D`(``)``D` M(``)``D`#0`-``D`(``)``T`#0!)`&X`8P!O`&T`90`@`"@`;`!O`',`0`@`&\`=P!N`&4`9``@`',`=0!B`',`:0!D`&D`80!R`'D`(`!O`&8` M(`!!`$D`1P`N`"``00!)`$<`(`!P`'(`;P!V`&D`9`!E`',`(`!A`"``9@!U M`&P`;``@`&$`;@!D`"``=0!N`&,`;P!N`&0`:0!T`&D`;P!N`&$`;``@`&<` M=0!A`'(`80!N`'0`90!E`"``;P!F`"``80!L`&P`(`!O`'4`=`!S`'0`80!N M`&0`:0!N`&<`(`!D`&4`8@!T`"``;P!F`"``00!)`$<`3`!(`"X`(``-``T` M#0`)`$$`20!'`"``3`!I`'$`=0!I`&0`:0!T`'D`(`!#`&\`<@!P`"X`(`!I M`',`(`!A`"``=P!H`&\`;`!L`'D`(`!O`'<`;@!E`&0`(`!S`'4`8@!S`&D` M9`!I`&$`<@!Y`"``;P!F`"``00!)`$<`+@`@`$$`20!'`"``<`!R`&\`=@!I M`&0`90!S`"``80`@`&8`=0!L`&P`(`!A`&X`9``@`'4`;@!C`&\`;@!D`&D` M=`!I`&\`;@!A`&P`(`!G`'4`80!R`&$`;@!T`&4`90`@`&\`9@`@`&$`;`!L M`"``;P!B`&P`:0!G`&$`=`!I`&\`;@!S`"``;P!F`"``00!)`$<`(`!,`&D` M<0!U`&D`9`!I`'0`>0`@`$,`;P!R`'``+@`@``T`#0`-``D`00!)`$<`(`!0 M`'(`;P!G`'(`80!M`"``1@!U`&X`9`!I`&X`9P`L`"``20!N`&,`+@`@`&D` M0`@`&\`=P!N`&4`9``@`',`=0!B`',`:0!D M`&D`80!R`'D`(`!O`&8`(`!!`$D`1P`N`"``00!)`$<`(`!P`'(`;P!V`&D` M9`!E`',`(`!A`"``9@!U`&P`;``@`&$`;@!D`"``=0!N`&,`;P!N`&0`:0!T M`&D`;P!N`&$`;``@`&<`=0!A`'(`80!N`'0`90!E`"``;P!F`"``80!L`&P` M(`!O`&(`;`!I`&<`80!T`&D`;P!N`',`(`!O`&8`(`!!`$D`1P`@`%``<@!O M`&<`<@!A`&T`(`!&`'4`;@!D`&D`;@!G`"P`(`!)`&X`8P`N`"P`(`!W`&@` M:0!C`&@`(`!W`&$`0`@`&D`;@`@`',`=0!B`',`:0!D`&D` M80!R`'D`(`!C`&\`;0!P`&$`;@!I`&4`0`@`&,`;P!M`'``80!N`&D`90!S`"``80!N`&0`(`!S M`&@`80!R`&4`:`!O`&P`9`!E`'(`0!I`&X`9P`@`&,`90!R`'0`80!I`&X`(`!P`&\`;`!I`&,`>0!H`&\`;`!D M`&4`<@!S`"``80!C`&,`;P!U`&X`=``@`&(`80!L`&$`;@!C`&4`0`@`'(`90!P`&\`<@!T`&4`9``@``D` M"0`D`"``"0`H`#8`-P`L`#``-``P`"``"0`I`"``"0`)`"0`(``)`"@`-@`R M`"P`-0`P`#``(``)`"D`(``-``T`#0!2`&4`=@!I`',`:0!O`&X`0`@`%,`=`!A`'0`90!M`&4`;@!T`"`` M*`!5`%,`1``@`"0`*0`"``$-``H`)P`!#0`*`$$`9`!J`'4`0!E`&$`<@`-``H`!P`!5`!O`'0`80!L``T`"@`T``%"`&$`;`!A`&X`8P!E M`"P`(`!B`&4`9P!I`&X`;@!I`&X`9P`@`&\`9@`@`'D`90!A`'(`(``H`',` M:`!A`'(`90!S`"D`(`!A`'0`(`!$`&4`8P`N`"``,P`Q`"P`(``R`#``,``T M`"L``4(`80!L`&$`;@!C`&4`+``@`&(`90!G`&D`;@!N`&D`;@!G`"``;P!F M`"``>0!E`&$`<@`@`&$`=``@`$0`90!C`"X`(``S`#$`+``@`#(`,``P`#0` M10`!10!X`&,`90!S`',`(`!O`&8`(`!C`&\`0`@`&$`9`!J`'4`0!E`&$`<@`@`"@```E``%"`&$`;`!A`&X`8P!E`"P` M(`!E`&X`9``@`&\`9@`@`'D`90!A`'(`(`!A`'0`(`!$`&4`8P`N`"``,P`Q M`"P`(``R`#``,``V`"X``4(`80!L`&$`;@!C`&4`+``@`&4`;@!D`"``;P!F M`"``>0!E`&$`<@`@`"@`0!E`&$`<@`@`&$`=``@ M`$0`90!C`"X`(``S`#$`+``@`#(`,``P`#<`+@`!0@!A`&P`80!N`&,`90`L M`"``90!N`&0`(`!O`&8`(`!Y`&4`80!R`"``*`!S`&@`80!R`&4`@!E`&0`(`!P`&4`<@!I`&\` M9`!I`&,`(`!B`&4`;@!E`&8`:0!T`"``*`!C`&\`9P(`TAH``$ET M`@`>!P``(7@"`/8*``#]>0(`T@P``!]\`@#T#@``"@````D($```!A``1AC- M!\&````&`@``"P(4````````````$`````````!3@P(`#0`"``$`#``"`&0` M#P`"``$`$0`"````$``(`/RI\=)-8E`_7P`"``$`*@`"````*P`"````@@`" M``$`@``(````````````)0($````_P"!``(`P004````%0```(,``@```(0` M`@```*$`(@`)`&0``0`!``$`1@!8`E@"````````X#\```````#@/P$`50`" M``@`?0`,``````"V/`\````$`'T`#``!``,`MA@/````!`!]``P`!`#_`"0) M#P````0```(.```````0```````$````"`(0`````````/\````````!#P`( M`A```0````,`_P````````$/``@"$``"``````#_`````````0\`"`(0``,` M```!`/\````````!#P`(`A``!`````$`_P````````$/``@"$``%`````0#_ M`````````0\`"`(0``8````!`/\````````!#P`(`A``!P````$`_P`````` M``$/``@"$``(`````0#_`````````0\`"`(0``D````!`/\````````!#P`( M`A``"@````$`_P````````$/``@"$``+`````0#_`````````0\`"`(0``P` M```!`/\````````!#P`(`A``#0````$`_P````````$/``@"$``.`````P#_ M`````````0\`"`(0``\````"`/\````````!#P#]``H``````!<```````$" M!@`!````%P#]``H``0`!`!<``0```/T`"@`!``(`%P`"````_0`*``$``P`7 M``,```#]``H``@```!8`!````/T`"@`#````&``%````_0`*``,``0`;``8` M``#]``H`!````!@`!P```/T`"@`$``$`&P`(````_0`*``4````8``D```#] M``H`!0`!`!L`"@```/T`"@`&````&``+````_0`*``8``0`;``P```#]``H` M!P```!@`#0```/T`"@`'``$`&P`.````_0`*``@````8``\```#]``H`"``! M`!L`$````/T`"@`)````&``1````_0`*``D``0`;`!(```#]``H`"@```!@` M$P```/T`"@`*``$`&P`4````_0`*``L````8`!4```#]``H`"P`!`!L`%@`` M`/T`"@`,````&``7````_0`*``P``0`;`!8```#]``H`#0```!@`&````/T` M"@`-``$`&P`9````_0`*``X````8`!H````#`@X`#@`#`!P```#@FH&Z04+] M``H`#P```!@`&P````,"#@`/``(`'0```&#`^O`T(#`@X`'@`"`!T`````./S_]D'] M``H`'P```!@`/0````,"#@`?``$`'0`````TVHKQ00,"#@`?``(`'0````!@ M6E[N0=<`1`!*"```;`(.`#0`#@`\`$0`,@`R`#(`,@`D`#(`,@`R`#(`,@`R M`#(`/``.`#(`,@`R`#(`,@`R`#(`,@`R``X`,@`R``@"$``@`````@#_```` M`````0\`"`(0`"$````"`/\````````!#P`(`A``(@````(`_P````````$/ M``@"$``C`````@#_`````````0\`"`(0`"0````"`/\````````!#P`(`A`` M)0````(`_P````````$/``@"$``F`````@#_`````````0\`"`(0`"<````" M`/\````````!#P`(`A``*`````(`_P````````$/``@"$``I`````P#_```` M`````0\`"`(0`"H````"`/\````````!#P`(`A``*P``````_P````````$/ M``@"$``L`````P#_`````````0\`"`(0`"T````"`/\````````!#P`(`A`` M+@````(`_P````````$/``@"$``O`````@#_`````````0\`"`(0`#`````# M`/\````````!#P`(`A``,0````$`_P````````$/``@"$``R`````P#_```` M`````0\`"`(0`#,````#`/\````````!#P`(`A``-`````,`_P````````$/ M``@"$``U`````@#_`````````0\`"`(0`#8````"`/\````````!#P`(`A`` M-P````,`_P````````$/``@"$``X`````P#_`````````0\`"`(0`#D````# M`/\````````!#P`(`A``.@``````_P````````$/``@"$``[`````@#_```` M`````0\`"`(0`#P````"`/\````````!#P`(`A``/0````(`_P````````$/ M``@"$``^`````@#_`````````0\`"`(0`#\````"`/\````````!#P#]``H` M(````!@`/@````,"#@`@``$`'0````"MA3(30@,"#@`@``(`'0````"B:SP% M0OT`"@`A````&``_`````P(.`"$``0`=`````'S=0_)!`P(.`"$``@`=```` M`"36C?-!_0`*`"(````8`$`````#`@X`(@`!`!T`````%#YM"$(#`@X`(@`" M`!T`````EOGC"$+]``H`(P```!@`00````,"#@`C``$`'0```.!EU_="0@," M#@`C``(`'0````!-=H$_0OT`"@`D````&``L`````P(.`"0``0`=`````(_N M43)"`P(.`"0``@`=````0.O57#!"_0`*`"4````8`$(````#`@X`)0`!`!T` M``!`I7X5,T(#`@X`)0`"`!T```"`>2!8,$+]``H`)@```!@`0P````,"#@`F M``$`'0````#,F&D#0@,"#@`F``(`'0````#(K?G\0?T`"@`G````&`!$```` M`P(.`"<``0`=`````+@](!Q"`P(.`"<``@`=`````'.*=AA"_0`*`"@````8 M`$4```"]`!(`*``!`!T``J701T``K>)+0(`_0`*`"L````6`$@` M``#]``H`+````!@`20````,"#@`L``$`'0`````X7Y_Y00,"#@`L``(`'0`` M```X7Y_Y00,"#@`L``,`'0`````X7Y_Y0?T`"@`M````&`!*````O0`2`"T` M`0`>````!$`>````!$`"`/T`"@`N````&`!+`````P(.`"X``0`=`````"!? MH/)!`P(.`"X``@`=`````"!?H/)!_0`*`"\````8`$P````#`@X`+P`!`!T` M``"`GKU_Y$$#`@X`+P`"`!T```"`GKU_Y$']``H`,````!@`30````,"#@`P M``$`'0``````(3CE00,"#@`P``(`'0````!P"$SC00,"#@`P``,`'0````#8 M26WA0?T`"@`Q````&`!.`````P(.`#$``0`=```````"+LO!_0`*`#(````8 M`$\````#`@X`,@`!`!T```!`NXJZ-$(#`@X`,@`"`!T`````"2C*,T(#`@X` M,@`#`!T```"`-C37,$+]``H`,P```!@`4`````,"#@`S``$`'0````#LZ$OQ M00,"#@`S``(`'0````",_/<`0@,"#@`S``,`'0````"\/_3Y0?T`"@`T```` M&`!1`````P(.`#0``0`=`````!10Y_C!`P(.`#0``@`=`````!![1-S!`P(. M`#0``P`=`````.AQ7N#!_0`*`#4````8`%(```"]`!(`-0`!`!T`]B3>-!T` M)DG+(P(`_0`*`#8````8`%,```"]`!(`-@`!`!T`OAAQ'!T`TC!P'`(`_0`* M`#<````8`%0````#`@X`-P`!`"$```!`0"].-D(#`@X`-P`"`"$```!`Y6NL M-T(#`@X`-P`#`"$```!`Y>08-$+]``H`.````!@`50````,"#@`X``$`(0`` M``C#8-UN0@,"#@`X``(`(0```!!3+(%L0@$"!@`X``,`(`#]``H`.0```"(` M5@```+X`#``Y``$`(P`C`",``P#]``H`.@```!8`(````/T`"@`[````&`!7 M`````P(.`#L``0`=````P.%-(5="`P(.`#L``@`=````T!W,A%9"_0`*`#P` M```8`%@````#`@X`/``!`!T````@AK#B5D(#`@X`/``"`!T````PJBKT54+] M``H`/0```!@`60````,"#@`]``$`'0````"U3QD40@,"#@`]``(`'0````"E M^O830OT`"@`^````&`!:`````P(.`#X``0`=`````/6CHA1"`P(.`#X``@`= M`````-KLH11"_0`*`#\````8`%L````#`@X`/P`!`!T`````W,F7`D(#`@X` M/P`"`!T`````Z`$O!$+7`$0`C`@``&P",@`R`#(`,@`R`#(`,@`R`"0`/``D M``X`1``D`#(`,@!$`"``1`!$`$0`)``D`$0`/``>``X`,@`R`#(`,@`(`A`` M0`````(`_P````````$/``@"$`!!`````@#_`````````0\`"`(0`$(````" M`/\````````!#P`(`A``0P````(`_P````````$/``@"$`!$`````@#_```` M`````0\`"`(0`$4````"`/\````````!#P`(`A``1@````(`_P````````$/ M``@"$`!'`````@#_`````````0\`"`(0`$@````!`/\````````!#P`(`A`` M20````(`_P````````$/``@"$`!*`````@#_`````````0\`"`(0`$L````" M`/\````````!#P`(`A``3`````(`_P````````$/``@"$`!-`````P#_```` M`````0\`"`(0`$X``````/\````````!#P`(`A``3P````(`_P````````$/ M``@"$`!0`````@#_`````````0\`"`(0`%$````"`/\````````!#P`(`A`` M4@````(`_P````````$/``@"$`!3`````@#_`````````0\`"`(0`%0````" M`/\````````!#P`(`A``50````(`_P````````$/``@"$`!6`````@#_```` M`````0\`"`(0`%<````"`/\````````!#P`(`A``6`````(`_P````````$/ M``@"$`!9`````@#_`````````0\`"`(0`%H````"`/\````````!#P#]``H` M0````!@`10````,"#@!```$`'0````!@4(K`07X""@!```(`'0`"6G1\_0`* M`$$````8`%P````#`@X`00`!`!T`````3+&K$$(#`@X`00`"`!T`````$/2P M"$+]``H`0@```!@`70````,"#@!"``$`'0`````8;7('0@,"#@!"``(`'0`` M``"L"=P#0OT`"@!#````&`!>`````P(.`$,``0`=`````(!OZ!-"`P(.`$,` M`@`=`````'YJJPM"_0`*`$0````8`%\````#`@X`1``!`!T`````D&JHX4$# M`@X`1``"`!T`````&,+JXD']``H`10```!@`8`````,"#@!%``$`'0````!` M&U_C00,"#@!%``(`'0````#HPH/B0?T`"@!&````&`!A`````P(.`$8``0`= M`````+$ MZ2="`P(.`$P``@`=`````#-UF!E"_0`*`$T````B`&@```"^``P`30`!`",` M(P`C``,`_0`*`$X````6`"````#]``H`3P```!@`:0````,"#@!/``$`'0`` M````XHPC0@,"#@!/``(`'0```(!M>)$B0OT`"@!0````&`!J`````P(.`%`` M`0`=`````#90C@-"`P(.`%```@`=`````#;;=`!"_0`*`%$````8`&L````# M`@X`40`!`!T```"`_+K$(D(#`@X`40`"`!T```"`1D;[)4+]``H`4@```!@` M;`````,"#@!2``$`'0```(!B%K,B0@,"#@!2``(`'0`````,(V$E0OT`"@!3 M````&`!M`````P(.`%,``0`=`````&@D1>]!`P(.`%,``@`=`````'SOO?)! M_0`*`%0````8`&X```"]`!(`5``!`!T``EZ^.!T``KQS-`(`_0`*`%4````8 M`&\````#`@X`50`!`!T`````%"B@#D(#`@X`50`"`!T`````U`CN$4+]``H` M5@```!@`<`````,"#@!6``$`'0````!L:1?X00,"#@!6``(`'0`````4`Q7P M0?T`"@!7````&`!Q`````P(.`%<``0`=`````(;>@A-"`P(.`%<``@`=```` M`.OO-1Q"_0`*`%@````8`'(````#`@X`6``!`!T`````$L06'4(#`@X`6``" M`!T`````K<"*&T+]``H`60```!@```X`,@`R`#(`,@`R`"0`,@`R`#(`,@`R`#X"$@"V``````!` M``````````````"@``0`9`!D`!T`#P`#`````````0````````#O``8````W M````"@````D($```!A``1AC-!\&````&`@``"P(<````````````4P`````` M```SJ`(`U[("`..X`@`-``(``0`,``(`9``/``(``0`1``(````0``@`_*GQ MTDUB4#]?``(``0`J``(````K``(```""``(``0"```@````````````E`@0` M``#_`($``@#!!!0````5````@P`"````A``"````H0`B``D`9``!``$``0!& M`%@"6`(```````#@/P```````.`_`0!5``(`"`!]``P``````+8\#P````0` M?0`,``$``P"V&`\````$`'T`#``$`/\`)`D/````!````@X``````%,````` M``0````(`A``````````_P````````$/``@"$``!`````P#_`````````0\` M"`(0``(``````/\````````!#P`(`A```P````,`_P````````$/``@"$``$ M`````P#_`````````0\`"`(0``4````#`/\````````!#P`(`A``!@````,` M_P````````$/``@"$``'`````P#_`````````0\`"`(0``@````#`/\````` M```!#P`(`A``"0````,`_P````````$/``@"$``*``````#_`````````0\` M"`(0``L````#`/\````````!#P`(`A``#```````_P````````$/``@"$``- M`````0#_`````````0\`"`(0``X````#`/\````````!#P`(`A``#P````,` M_P````````$/``@"$``0`````P#_`````````0\`"`(0`!$````#`/\````` M```!#P`(`A``$@````,`_P````````$/``@"$``3`````P#_`````````0\` M"`(0`!0````#`/\````````!#P`(`A``%0````,`_P````````$/``@"$``6 M`````P#_`````````0\`"`(0`!<``````/\````````!#P`(`A``&`````,` M_P````````$/``@"$``9`````P#_`````````0\`"`(0`!H````#`/\````` M```!#P`(`A``&P````,`_P````````$/``@"$``<`````P#_`````````0\` M"`(0`!T````#`/\````````!#P`(`A``'@````,`_P````````$/``@"$``? M`````P#_`````````0\`_0`*```````7`'4````!`@8``0```!<`_0`*``$` M`0`7``$```#]``H``0`"`!<`=@```/T`"@`!``,`%P!W````_0`*``(````6 M`'@```#]``H``P```!@`>0````,"#@`#``$`'````("]M6`@0@,"#@`#``(` M'``````T3<0?T`"@`*````%@"`````_0`*``L````8`($````#`@X` M"P`!`!T`````X,<8]T$#`@X`"P`"`!T`````P)LJ"D(#`@X`"P`#`!T````` MJM*#`T+]``H`#````!8`@@```/T`"@`-````&`"#`````P(.``T``0`=```` M`*!&7@5"_0`*``X````8`(0````#`@X`#@`!`!T`````T`8:U,$#`@X`#@`" M`!T`````8#J]QL$#`@X`#@`#`!T`````($TFTL']``H`#P```!@`A0```'X" M"@`/``$`'0"HRYC!`P(.``\``@`=`````+!AO]I!`P(.``\``P`=`````)!X MS^C!_0`*`!`````8`(8```!^`@H`$``!`!T`%*B;00,"#@`0``(`'0`````@ MPC_%P0,"#@`0``,`'0````#`FRK*0?T`"@`1````&`"'`````P(.`!$``0`= M`````&!]N_'!`P(.`!$``@`=`````#!2NNW!`P(.`!$``P`=`````%"O+-7! M_0`*`!(````8`(@````#`@X`$@`!`!T`````Q$.``$`'0`` M``#@9'G400,"#@`>``(`'0````"`X*Z]P0,"#@`>``,`'0````!@<"O(0?T` M"@`?````&``Y`````P(.`!\``0`=`````"A;HNO!`P(.`!\``@`=`````+#6 MV-U!`P(.`!\``P`=`````/`3_M9!UP!$`(X)``!L`@X`-``.`$0`1`!$`#8` M0`!$`$0`#@!$``X`(`!$`$``0`!$`$0`0`!$`#8`1``.`$0`0`!$`$0`1`!$ M`$0`"`(0`"`````#`/\````````!#P`(`A``(0````,`_P````````$/``@" M$``B`````P#_`````````0\`"`(0`",````#`/\````````!#P`(`A``)``` M``,`_P````````$/``@"$``E`````P#_`````````0\`"`(0`"8````#`/\` M```````!#P`(`A``)P````,`_P````````$/``@"$``H`````P#_```````` M`0\`"`(0`"D````#`/\````````!#P`(`A``*@````,`_P````````$/``@" M$``K`````P#_`````````0\`"`(0`"P````#`/\````````!#P`(`A``+0`` M``,`_P````````$/``@"$``N`````P#_`````````0\`"`(0`"\``````/\` M```````!#P`(`A``,`````,`_P````````$/``@"$``Q`````P#_```````` M`0\`"`(0`#(````#`/\````````!#P`(`A``,P````,`_P````````$/``@" M$``T`````P#_`````````0\`"`(0`#4````#`/\````````!#P`(`A``-@`` M``,`_P````````$/``@"$``W`````P#_`````````0\`"`(0`#@````#`/\` M```````!#P`(`A``.0````,`_P````````$/``@"$``Z`````P#_```````` M`0\`"`(0`#L````#`/\````````!#P`(`A``/`````$`_P````````$/``@" M$``]`````P#_`````````0\`"`(0`#X````#`/\````````!#P`(`A``/P`` M``,`_P````````$/`/T`"@`@````&``V`````P(.`"```0`=`````*!X>P1T``HIA:0,`_0`*`"8````8`)@````#`@X`)@`!`!T` M````T"H.U4$#`@X`)@`"`!T`````H&$5UL$#`@X`)@`#`!T`````P-K5RT'] M``H`)P```!@`F0````,"#@`G``$`'0````#*(F8!0@,"#@`G``(`'0````#P M/-P.P@,"#@`G``,`'0````#2]8D"0OT`"@`H````&`":`````P(.`"@``0`= M`````.ZF-P7"`P(.`"@``@`=`````*"_R@%"`P(.`"@``P`=`````$RM6`?" M_0`*`"D````8`)L````#`@X`*0`!`!T`````(&C=PD$#`@X`*0`"`!T````` M,!Q,W,$#`@X`*0`#`!T`````8&($P4']``H`*@```!@`G`````,"#@`J``$` M'0````"$IRKSP0,"#@`J``(`'0````!D*A<$P@,"#@`J``,`'0````#\0E@( MPOT`"@`K````&`"=`````P(.`"L``0`=`````'Q)(/5!`P(.`"L``@`=```` M`'1MOP-"`P(.`"L``P`=`````'J'X0="_0`*`"P````8`)X```!^`@H`+``! M`!T``L6Y<0,"#@`L``(`'0````"@@!_`00,"#@`L``,`'0````!PC]_6P?T` M"@`M````&`"?`````P(.`"T``0`A`````(,Y^QI"`P(.`"T``@`A`````&1W MZ?S!`P(.`"T``P`A`````)!=&`A"_0`*`"X````8`'D````#`@X`+@`!`"$` M``"`O;5@($(#`@X`+@`"`"$`````',!K]T$#`@X`+@`#`"$`````'1C.%4+] M``H`+P```!8`H````/T`"@`P````&`"A`````P(.`#```0`=`````/CBSCY" M`P(.`#```@`=````@+L!23I"`P(.`#```P`=````@!&73D!"_0`*`#$````8 M`*(````#`@X`,0`!`!T`````($3I`4(#`@X`,0`"`!T`````)HL\!T(#`@X` M,0`#`!T`````ZF6X!4+]``H`,@```!@`HP```+T`&``R``$`'0`"7U5&'0`" M->`P'0`\[X5!`P#]``H`,P```!@`I````'X""@`S``$`'0`"ISU(`P(.`#,` M`@`=`````""PQ<1!`P(.`#,``P`=`````*"D$\%!_0`*`#0````8`*4````# M`@X`-``!`!T`````"K)'"D(#`@X`-``"`!T`````2,8["D(#`@X`-``#`!T` M````EF7`"T+]``H`-0```!@`I@````,"#@`U``$`'0`````L&>$`0@,"#@`U M``(`'0````!4NCWS00,"#@`U``,`'0````"X(FGK0?T`"@`V````&`"G```` M`P(.`#8``0`=`````**\80="`P(.`#8``@`=`````/1X<0="`P(.`#8``P`= M`````"K>-0="_0`*`#<````8`*@````#`@X`-P`!`!T`````I@$T0,(#`@X` M-P`"`!T````@1?\,0<(#`@X`-P`#`!T````@COQR1,+]``H`.````!@`J0`` M``,"#@`X``$`'0````"Z0ET$P@,"#@`X``(`'0````!$COD*P@,"#@`X``,` M'0````!"#[D(POT`"@`Y````&`"J`````P(.`#D``0`=``````"MM:_!`P(. M`#D``@`=`````(#V>Z?!`P(.`#D``P`=`````&@QU>C!_0`*`#H````8`*L` M```#`@X`.@`!`!T`````$._&\<$#`@X`.@`"`!T`````!*%B]L$#`@X`.@`# M`!T`````Y!H2]\']``H`.P```!@`K`````,"#@`[``$`'0````!G;987P@," M#@`[``(`'0````#0=^`-P@,"#@`[``,`'0````#6L`P,POT`"@`\````&`"M M`````P(.`#P``0`=`````)#-1]3!_0`*`#T````8`*X````#`@X`/0`!`!T` M````GF`K!\(#`@X`/0`"`!T`````^&VU^\$#`@X`/0`#`!T`````N`+(\\'] M``H`/@```!@`KP````,"#@`^``$`'0````"^QW$,P@,"#@`^``(`'0````!L MJ,()P@,"#@`^``,`'0````!@````,"#@!# M``$`(0```(#O$*LOP@,"#@!#``(`(0````!X@J0OP@,"#@!#``,`(0```(#5 M>YXLPOT`"@!$````%@"T````_0`*`$4````8`#0````#`@X`10`!`!T```"` M$C@P+D(#`@X`10`"`!T```"`ZFFB*D(#`@X`10`#`!T```"`10`3*$+]``H` M1@```!@`M0````,"#@!&``$`'0```(#EFE(KP@,"#@!&``(`'0```(">.SRP6C8P0,"#@!/``,`'0````!0KRS5P?T`"@!0````&`"_ M````O0`8`%```0`=`("$;L$=`-`2<\$=`!C[I,$#`/T`"@!1````&`">```` MO0`2`%$``0`=``+4;DD=``+^XUX"``,"#@!1``,`'0``````_4.4P?T`"@!2 M````&`![`````P(.`%(``0`<``````A!+A]"`P(.`%(``@`<`````([:A"Q" M`P(.`%(``P`<````@"R$O2%"UP`J`,0%``!H`40`1`!$`$0`#@!$`$0`1`!$ M`$0`1`!$`!P`*@`@`$0`*@`V`#X"$@"V``````!```````````````"@``0` M9`!D`!T`#P`#`````````0````````#O``8````W````"@````D($```!A`` M1AC-!\&````&`@``"P(4````````````"@````````"4O`(`#0`"``$`#``" M`&0`#P`"``$`$0`"````$``(`/RI\=)-8E`_7P`"``$`*@`"````*P`"```` M@@`"``$`@``(````````````)0($````_P"!``(`P004````%0```(,``@`` M`(0``@```*$`(@`)`&0``0`!``$`1@!8`E@"````````X#\```````#@/P$` M50`"``@`?0`,``````"V/`\````$`'T`#``!``,`MA@/````!`!]``P`!`#_ M`"0)#P````0```(.```````*```````$````"`(0`````````/\````````! M#P`(`A```0````,`_P````````$/``@"$``"``````#_`````````0\`"`(0 M``,````#`/\````````!#P`(`A``!`````,`_P````````$/``@"$``%```` M``#_`````````0\`"`(0``8````#`/\````````!#P`(`A``!P````$`_P`` M``````$/``@"$``(``````#_`````````0\`"`(0``D````!`/\````````! M#P#]``H``````!<`P`````$"!@`!````%P#]``H``0`!`!<``0```/T`"@`! M``(`%P!V````_0`*``$``P`7`'<```#]``H``@```!8`P0```/T`"@`#```` M&`#"`````P(.``,``0`<``````3`;`!"`P(.``,``@`<`````(P37/A!`P(. M``,``P`<`````*S*,/)!_0`*``0````8`,,````#`@X`!``!`!T`````#-([ M\T$#`@X`!``"`!T`````])=[\4$#`@X`!``#`!T`````2,%1XT']``H`!0`` M`!8`Q````/T`"@`&````&`#%`````P(.``8``0`=`````)BIJ`5"`P(.``8` M`@`=`````)07!`1"`P(.``8``P`=`````,QK.`)"_0`*``<````8`,8````# M`@X`!P`!`!T`````@$OT\D']``H`"````!8`QP```/T`"@`)````&`#(```` M`P(.``D``0`<`````.#9DL=!UP`8`$`"``"T``X`-``.`$0`1``.`$0`(``. M`#X"$@"V``````!```````````````"@``0`9`!D`!T`#P`#`````````0`` M``````#O``8````W````"@````D($```!A``1AC-!\&````&`@``"P(8```` M````````(@````````!;Q@(`4\<"``T``@`!``P``@!D``\``@`!`!$``@`` M`!``"`#\J?'236)0/U\``@`!`"H``@```"L``@```((``@`!`(``"``````` M`````"4"!````/\`@0`"`,$$%````!4```"#``(```"$``(```"A`"(`"0!D M``$``0`!`$8`6`)8`@```````.`_````````X#\!`%4``@`(`'T`#``````` MMCP/````!`!]``P``0`#`+88#P````0`?0`,``0`_P`D"0\````$```"#@`` M````(@``````!`````@"$`````````#_`````````0\`"`(0``$````#`/\` M```````!#P`(`A```@``````_P````````$/``@"$``#`````P#_```````` M`0\`"`(0``0````#`/\````````!#P`(`A``!0````,`_P````````$/``@" M$``&`````0#_`````````0\`"`(0``<````#`/\````````!#P`(`A``"``` M``,`_P````````$/``@"$``)``````#_`````````0\`"`(0``H````#`/\` M```````!#P`(`A``"P````,`_P````````$/``@"$``,`````P#_```````` M`0\`"`(0``T````#`/\````````!#P`(`A``#@``````_P````````$/``@" M$``/`````P#_`````````0\`"`(0`!`````#`/\````````!#P`(`A``$0`` M``,`_P````````$/``@"$``2`````P#_`````````0\`"`(0`!,````#`/\` M```````!#P`(`A``%`````,`_P````````$/``@"$``5`````@#_```````` M`0\`"`(0`!8````#`/\````````!#P`(`A``%P``````_P````````$/``@" M$``8`````P#_`````````0\`"`(0`!D````"`/\````````!#P`(`A``&@`` M``,`_P````````$/``@"$``;``````#_`````````0\`"`(0`!P````#`/\` M```````!#P`(`A``'0````(`_P````````$/``@"$``>`````P#_```````` M`0\`"`(0`!\``````/\````````!#P#]``H``````!<`R0````$"!@`!```` M%P#]``H``0`!`!<``0```/T`"@`!``(`%P!V````_0`*``$``P`7`'<```#] M``H``@```!8`R@```/T`"@`#````&`#+`````P(.``,``0`<````@'W$=C)" M`P(.``,``@`<````0(-P1S%"`P(.``,``P`<````@'7-7C!"_0`*``0````8 M`,P````#`@X`!``!`!T`````(TVG&D(#`@X`!``"`!T`````AI)'&$(#`@X` M!``#`!T`````^'$(%4+]``H`!0```!@`S0````,"#@`%``$`'0````!`,L/J MP;T`$@`%``(`'0`"ND49'0`"_4Q1`P#]``H`!@```!@`@P````,"#@`&``$` M'0````"@1EX%POT`"@`'````&`#.`````P(.``<``0`=`````.]W!A!"`P(. M``<``@`=`````.SM-0A"`P(.``<``P`=`````!3I]`Q"_0`*``@````8`,\` M```#`@X`"``!`"$`````7%.@.4(#`@X`"``"`"$```#`4&1F.D(#`@X`"``# M`"$```!`5=I3.4+]``H`"0```!8`T````/T`"@`*````&`#1`````P(.``H` M`0`=````@*V%R2Y"`P(.``H``@`=````@#O%$BQ"`P(.``H``P`=`````,)0 MV2U"_0`*``L````8`-(````#`@X`"P`!`!T`````5PI-($(#`@X`"P`"`!T` M````77%!'4(#`@X`"P`#`!T`````_+=Q&T+]``H`#````!@`TP````,"#@`, M``$`(0```$`"2(LW0@,"#@`,``(`(0````#UOEDU0@,"#@`,``,`(0````!@ M%LDU0OT`"@`-````&`#4`````P(.``T``0`=`````,Y:J`!"`P(.``T``@`= M`````&^5,A1"`P(.``T``P`=`````*H?5@Q"_0`*``X````6`-4```#]``H` M#P```!@`U@````,"#@`/``$`'0````!8P?OG00,"#@`/``(`'0````#DMW+T M00,"#@`/``,`'0````"83T;C0?T`"@`0````&`#7`````P(.`!```0`=```` M`$`@2=K!`P(.`!```@`=``````";.\]!`P(.`!```P`=`````/!;YMA!_0`* M`!$````8`-@````#`@X`$0`!`"$`````<&*NU4$#`@X`$0`"`"$`````1"M: M^$$#`@X`$0`#`"$`````D'VY[T']``H`$@```!@`V0````,"#@`2``$`(0`` M````'>7[00,"#@`2``(`(0`````\%3@,0@,"#@`2``,`(0````!&P&<$0OT` M"@`3````&`!#`````P(.`!,``0`=`````(!4,=/!`P(.`!,``@`=``````!_ M[=#!`P(.`!,``P`=`````("S?;S!_0`*`!0````8`-H````#`@X`%``!`!T` M````X,<8]T$#`@X`%``"`!T`````7&4:"D(#`@X`%``#`!T`````JM*#`T+] M``H`%0```!@`VP```'X""@`5``(`'0!D-H!!_0`*`!8````8`($````#`@X` M%@`!`!\`````X,<8]T$#`@X`%@`"`!\`````P)LJ"D(#`@X`%@`#`!\````` MJM*#`T+]``H`%P```!8`W````/T`"@`8````&`#:````O0`8`!@``0`>``$` M;D`>``'0@$`>``$P>4`#`/T`"@`9````&`#;````?@(*`!D``@`>``$`\#_] M``H`&@```!@`@0```+T`&``:``$`)``!`&Y`)``!V(!`)``!,'E``P#]``H` M&P```!8`W0```/T`"@`<````&`#:````O0`8`!P``0`>``'@;4`>``&X@$`> M``'P>$`#`/T`"@`=````&`#;````?@(*`!T``@`>``$`\#_]``H`'@```!@` M@0```+T`&``>``$`'@`!X&U`'@`!P(!`'@`!\'A``P#]``H`'P```!8`W@`` M`-<`1`!D"```;`(.`#0`#@!$`$0`-@`@`$0`1``.`$0`1`!$`$0`#@!$`$0` M1`!$`$0`1``<`$0`#@`J`!P`*@`.`"H`'``J``@"$``@`````P#_```````` M`0\`"`(0`"$````#`/\````````!#P#]``H`(````!@`W`````,"#@`@``$` M'0`````(?T+C00,"#@`@``(`'0````"`76[C00,"#@`@``,`'0````!H8EGC M0?T`"@`A````&`#=`````P(.`"$``0`=`````+!*6^-!`P(.`"$``@`=```` M`+CYBN-!`P(.`"$``P`=`````-B:DN-!UP`(`+`````4`$0`/@(2`+8````` M`$```````````````*``!`!D`&0`'0`/``,````````!`````````.\`!@`` M`#<````*````"0@0```&$`!&&,T'P8````8"```+`A0````````````:```` M`````'#-`@`-``(``0`,``(`9``/``(``0`1``(````0``@`_*GQTDUB4#]? M``(``0`J``(````K``(```""``(``0"```@````````````E`@0```#_`($` M`@#!!!0````5````@P`"````A``"````H0`B``D`9``!``$``0!&`%@"6`(` M``````#@/P```````.`_`0!5``(`"`!]``P``````+8\#P````0`?0`,``$` M`0"V&`\````$`'T`#``"`/\`)`D/````!````@X``````!H```````(````( M`A``````````_P````````$/``@"$``!`````0#_`````````0\`"`(0``(` M```!`/\````````!#P`(`A```P````$`_P````````$/``@"$``$`````0#_ M`````````0\`"`(0``4````!`/\````````!#P`(`A``!@````$`_P`````` M``$/``@"$``'`````0#_`````````0\`"`(0``@````!`/\````````!#P`( M`A``"0````$`_P````````$/``@"$``*`````0#_`````````0\`"`(0``L` M```!`/\````````!#P`(`A``#`````$`_P````````$/``@"$``-`````0#_ M`````````0\`"`(0``X````!`/\````````!#P`(`A``#P````$`_P`````` M``$/``@"$``0`````0#_`````````0\`"`(0`!$````!`/\````````!#P`( M`A``$@````$`_P````````$/``@"$``3`````0#_`````````0\`"`(0`!0` M```!`/\````````!#P`(`A``%0````$`_P````````$/``@"$``6`````0#_ M`````````0\`"`(0`!<````!`/\````````!#P`(`A``&`````$`_P`````` M``$/``@"$``9`````0#_`````````0\`_0`*```````7`-\````!`@8``0`` M`!<`_0`*``$``0`7`.````#]``H``@```!@`X0```/T`"@`"``$`&P#B```` M_0`*``,````8`.,```#]``H``P`!`!L`Y````/T`"@`$````&`#E````_0`* M``0``0`;`.8```#]``H`!0```!@`YP```/T`"@`%``$`&P#H````_0`*``8` M```8`.D```#]``H`!@`!`!L`Z@```/T`"@`'````&`#K````_0`*``<``0`; M`.P```#]``H`"````!@`[0```/T`"@`(``$`&P#N````_0`*``D````8`.\` M``#]``H`"0`!`!L`\````/T`"@`*````&`#Q````_0`*``H``0`;`/(```#] M``H`"P```!@`\P```/T`"@`+``$`&P#T````_0`*``P````8`/4```#]``H` M#``!`!L`]@```/T`"@`-````&`#W````_0`*``T``0`;`/@```#]``H`#@`` M`!@`^0```/T`"@`.``$`&P#Z````_0`*``\````8`/L```#]``H`#P`!`!L` M_````/T`"@`0````&`#]````_0`*`!```0`;`/X```#]``H`$0```!@`_P`` M`/T`"@`1``$`&P```0``_0`*`!(````8``$!``#]``H`$@`!`!L``@$``/T` M"@`3````&``#`0``_0`*`!,``0`;``0!``#]``H`%````!@`!0$``/T`"@`4 M``$`&P`&`0``_0`*`!4````8``>#!`P(.``,`#``<```` M0(#AC#)"_0`*``0````8`!``&`3T#]``H` M"0```!@`&P$```,"#@`)``<`'0`````(EJ;JP0,"#@`)``P`'0`````(EJ;J MP?T`"@`*````&``<`0```P(.``H`!P`=`````'"ST]=!`P(.``H`#``=```` M`'"ST]=!_0`*``L````8`!T!```#`@X`"P`)`!T`````P-&8R\$#`@X`"P`, M`!T`````P-&8R\']``H`#````!@`'`$``'X""@`,``D`'0`"D@=%!?@(*`!@``P`=```````#`@X`&``$`!T```"`-C37,$(#`@X`&``%`!T` M``"`ZX_I,$(#`@X`&``&`!T`````O#_T^4$#`@X`&``'`!T`````\$49_T%^ M`@H`&``(`!T`A-=WP0,"#@`8``D`'0`````0"G[2P0,"#@`8``H`'0`````` M"VN;P0,"#@`8``L`'0````#H<5[@P0,"#@`8``P`'0```$#EY!@T0OT`"@`9 M````&``F`0```P(.`!D``0`=````@)Z]?^1!`P(.`!D`"P`=``````![<*+! M_0`*`!H````8`!P?T`"@`;````&``8`0``?@(* M`!L``@`=``)37%K]``H`'````!@`VP```'X""@`<``0`'0`"U&Y)_0`*`!T` M```8`($````#`@X`'0`$`!T`````P)LJ"D(#`@X`'0`,`!T`````P)LJ"D+] M``H`'@```!@`&0$```,"#@`>``0`'0````"@UB[9P?T`"@`?````&``:`0`` M?@(*`!\`!``>``%`4$#7`$0`V`@``&P"#@"R`#(`S``@`!P`,@`@`!P`,@`R M`#(`*@`J`"H`*@`J`!P`'``<``X`'``<`!P`W@`R`!P`'``<`#(`(``(`A`` M(`````P`_P````````$/``@"$``A````#`#_`````````0\`"`(0`"(````, M`/\````````!#P`(`A``(P````P`_P````````$/``@"$``D````#`#_```` M`````0\`"`(0`"4````,`/\````````!#P`(`A``)@````P`_P````````$/ M``@"$``G````#`#_`````````0\`"`(0`"@````,`/\````````!#P`(`A`` M*0````L`_P````````$/``@"$``J````"P#_`````````0\`"`(0`"L````+ M`/\````````!#P`(`A``+```````_P````````$/``@"$``M````"P#_```` M`````0\`"`(0`"X````+`/\````````!#P`(`A``+P````L`_P````````$/ M``@"$``P````#`#_`````````0\`"`(0`#$````+`/\````````!#P`(`A`` M,@````(`_P````````$/``@"$``S`````@#_`````````0\`"`(0`#0````# M`/\````````!#P`(`A``-0````,`_P````````$/``@"$``V````!`#_```` M`````0\`"`(0`#<````,`/\````````!#P`(`A``.`````0`_P````````$/ M``@"$``Y````!`#_`````````0\`"`(0`#H````,`/\````````!#P`(`A`` M.P````P`_P````````$/``@"$``\````#`#_`````````0\`"`(0`#T````, M`/\````````!#P`(`A``/@````P`_P````````$/``@"$``_````#`#_```` M`````0\`_0`*`"`````8`!L!```#`@X`(``'`!T`````\(,MXT$#`@X`(``, M`!T`````\(,MXT']``H`(0```!@`'`$```,"#@`A``<`'0````#@#P')P0," M#@`A``P`'0````#@#P')P?T`"@`B````&``=`0```P(.`"(`"0`=`````+!! M'M-!`P(.`"(`#``=`````+!!'M-!_0`*`",````8`!P!```#`@X`(P`)`!T` M````P,RNM,$#`@X`(P`,`!T`````P,RNM,']``H`)````!@`'@$``'X""@`D M``@`'0"HRVA!?@(*`"0`#``=`*C+:$']``H`)0```!@`'P$``'X""@`E``@` M'0`XG&S!?@(*`"4`#``=`#B<;,']``H`)@```!@`(`$``'X""@`F``H`'0#0 M$I-!?@(*`"8`#``=`-`2DT']``H`)P```!@`'`$```,"#@`G``H`'0`````` MFJ21P0,"#@`G``P`'0``````FJ21P?T`"@`H````&``G`0```P(.`"@`"@`= M``````"MM;_!`P(.`"@`#``=``````"MM;_!_0`*`"D````8`"$!``!^`@H` M*0`+`!T`T!)SP?T`"@`J````&``B`0``?@(*`"H`"P`=``([847]``H`*P`` M`!@`(P$``'X""@`K``L`'0`4J'M!_0`*`"P````6`"0!``#]``H`+0```!@` M(0$``'X""@`M``L`'0"TF1'!_0`*`"X````8`"(!``!^`@H`+@`+`!T`)HD7 M`?T`"@`O````&``C`0``?@(*`"\`"P`=`-AZ#T']``H`,````!@`*`$```," M#@`P``$`'0`````X7Y_Y00,"#@`P``(`'0````!P"$SC07X""@`P``,`'0`` M`````P(.`#``!``=``````DHRC-"`P(.`#``!0`=````0(`.OC-"`P(.`#`` M!@`=`````(S\]P!"`P(.`#``!P`=`````/;RQP)"?@(*`#``"``=`,R_><$# M`@X`,``)`!T`````0.XMLL$#`@X`,``*`!T`````('$:P\$#`@X`,``+`!T` M````$'M$W,$#`@X`,``,`!T```!`Y6NL-T+]``H`,0```!@`*0$```,"#@`Q M``$`'0```(">O7_D00,"#@`Q``L`'0````"2I.6AP?T`"@`R````&``7`0`` M`P(.`#(``@`=``````!R79?!_0`*`#,````8`!@!``!^`@H`,P`"`!T``H3@ M5/T`"@`T````&``J`0```P(.`#0``P`=`````,`+6O;!_0`*`#4````8`"L! M```#`@X`-0`#`!T`````@$OT\D']``H`-@```!@`VP````,"#@`V``0`'0`` M``"`$3.HP?T`"@`W````&`"!`````P(.`#<`!``=`````.#'&/=!`P(.`#<` M#``=`````.#'&/=!_0`*`#@````8`!D!```#`@X`.``$`!T`````P!!$W<'] M``H`.0```!@`&@$``'X""@`Y``0`'@`!0%-`_0`*`#H````8`!L!```#`@X` M.@`'`!T`````>$/Y_<$#`@X`.@`,`!T`````>$/Y_<']``H`.P```!@`'`$` M``,"#@`[``<`'0````"086OA00,"#@`[``P`'0````"086OA0?T`"@`\```` M&``=`0```P(.`#P`"0`=`````%!YOM-!`P(.`#P`#``=`````%!YOM-!_0`* M`#T````8`!P!```#`@X`/0`)`!T``````':PH,$#`@X`/0`,`!T``````':P MH,']``H`/@```!@`'@$```,"#@`^``@`'0``````K;6?P0,"#@`^``P`'0`` M````K;6?P?T`"@`_````&``?`0``?@(*`#\`"``=``*19Q%^`@H`/P`,`!T` M`I%G$=<`1``>"```;`(R`#(`,@`R`"H`*@`J`#(`,@`<`!P`'``.`!P`'``< M`-X`,@`@`!P`(``@`"``,@`@`!P`,@`R`#(`,@`R``@"$`!`````#`#_```` M`````0\`"`(0`$$````,`/\````````!#P`(`A``0@````P`_P````````$/ M``@"$`!#````"P#_`````````0\`"`(0`$0````+`/\````````!#P`(`A`` M10````L`_P````````$/``@"$`!&``````#_`````````0\`"`(0`$<````+ M`/\````````!#P`(`A``2`````L`_P````````$/``@"$`!)````"P#_```` M`````0\`"`(0`$H````,`/\````````!#P`(`A``2P````L`_P````````$/ M`/T`"@!`````&``L`0``?@(*`$``"@`=``+M]RY^`@H`0``,`!T``NWW+OT` M"@!!````&``M`0``?@(*`$$`"@`=`&#C=L%^`@H`00`,`!T`8.-VP?T`"@!" M````&``<`0```P(.`$(`"@`=```````"+HO!`P(.`$(`#``=```````"+HO! M_0`*`$,````8`"$!```#`@X`0P`+`!T`````P(T#\\']``H`1````!@`(@$` M`'X""@!$``L`'0`"N;=(_0`*`$4````8`",!``!^`@H`10`+`!T`&/MD0?T` M"@!&````%@`D`0``_0`*`$<````8`"$!```#`@X`1P`+`!T`````S&8^DL'] M``H`2````!@`(@$``'X""@!(``L`'0`FHBX!_0`*`$D````8`",!``!^`@H` M20`+`!T`0+GHP/T`"@!*````&``N`0```P(.`$H``0`<`````#A?G_E!`P(. M`$H``@`<```````A..5!`P(.`$H``P`<```````"+LO!`P(.`$H`!``<```` M0+N*NC1"`P(.`$H`!@`<`````.SH2_%!`P(.`$H`!P`<`````#Q33/!!`P(. M`$H`"``<```````/OI3!`P(.`$H`"0`<``````#>.A)O MJL'7`!P`.@,``-P`*@`J`#(`(``<`!P`#@`@`!P`'`#4`#X"$@"V``````!` M``````````````"@``0`9`!D`!T`#P`#`````````0````````#O``8````W M````"@````D($```!A``1AC-!\&````&`@``"P(4````````````#P`````` M``!&Z0(`#0`"``$`#``"`&0`#P`"``$`$0`"````$``(`/RI\=)-8E`_7P`" M``$`*@`"````*P`"````@@`"``$`@``(````````````)0($````_P"!``(` MP004````%0```(,``@```(0``@```*$`(@`)`&0``0`!``$`1@!8`E@"```` M````X#\```````#@/P$`50`"``@`?0`,``````"V/`\````$`'T`#``!``,` MMA@/````!`!]``P`!`#_`"0)#P````0```(.```````/```````$````"`(0 M`````````/\````````!#P`(`A```0````,`_P````````$/``@"$``"```` M``#_`````````0\`"`(0``,````#`/\````````!#P`(`A``!```````_P`` M``````$/``@"$``%`````P#_`````````0\`"`(0``8````#`/\````````! M#P`(`A``!P````,`_P````````$/``@"$``(`````P#_`````````0\`"`(0 M``D````#`/\````````!#P`(`A``"@````,`_P````````$/``@"$``+```` M`P#_`````````0\`"`(0``P````#`/\````````!#P`(`A``#0````,`_P`` M``````$/``@"$``.`````P#_`````````0\`_0`*```````7`#`!```!`@8` M`0```!<`_0`*``$``0`7``$```#]``H``0`"`!<`=@```/T`"@`!``,`%P!W M````_0`*``(````6`#$!``#]``H``P```!@`@0````,"#@`#``$`'`````#@ MQQCW00,"#@`#``(`'`````#`FRH*0@,"#@`#``,`'`````"JTH,#0OT`"@`$ M````%@`R`0``_0`*``4````8`!L!```#`@X`!0`!`!T`````>$/Y_<$#`@X` M!0`"`!T`````\(,MXT$#`@X`!0`#`!T`````"):FZL']``H`!@```!@`'`$` M``,"#@`&``$`'0````"086OA00,"#@`&``(`'0````#@#P')P0,"#@`&``,` M'0````!PL]/70?T`"@`'````&``=`0```P(.``<``0`=`````%!YOM-!`P(. M``<``@`=`````+!!'M-!`P(.``<``P`=`````,#1F,O!_0`*``@````8`!P! M```#`@X`"``!`!T``````':PH,$#`@X`"``"`!T`````P,RNM,%^`@H`"``# M`!T``I('7/T`"@`)````&``>`0```P(.``D``0`=``````"MM9_!O0`2``D` M`@`=`*C+:$$=``([6`@#`/T`"@`*````&``?`0``O0`8``H``0`=``*19Q$= M`#B<;,$=`/"S6L$#`/T`"@`+````&``S`0``O0`8``L``0`=``(5/RD=`-`2 MDT$=``+93Q,#`/T`"@`,````&``<`0```P(.``P``0`=```````"+HO!`P(. M``P``@`=``````":I)'!?@(*``P``P`=`&0VD,']``H`#0```!@`-`$```," M#@`-``$`(0`````L$*3PP0,"#@`-``(`(0````!8*.[C00,"#@`-``,`(0`` M``"H@'3BP?T`"@`.````&``U`0```P(.``X``0`?`````-#>TME!`P(.``X` M`@`?`````-8E)@]"`P(.``X``P`?``````!ES?U!UP`B`"P$```8`0X`-``. M`$0`#@!$`$0`1`!``#8`*@`J`$``1``^`A(`M@``````0``````````````` MH``$`&0`9``=``\``P````````$`````````[P`&````-P````H````````` M```````````````````````````````````````````````````````````` M`````````````````````````````````````````````````0```/[___\# M````!````/[_________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M____________________________________________________________ M___________^_P``!0("```````````````````````!````X(6?\OE/:!"K MD0@`*R>SV3````!0`````P````$````H````````@#`````$````.``````` M`````````@```+`$```3````"00``!\````(`````!B`'(`;``` M`/[_```%`@(```````````````````````(````"U XML 18 R7.xml IDEA: Shareholders Equity Statement 1.0.0.3 true Shareholders Equity Statement (USD $) false 1 $ true false false false Common stock: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_CommonStockMember us-gaap_StatementEquityComponentsAxis explicitMember shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 2 $ true false false false Additional paid-in capital: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AdditionalPaidInCapitalMember us-gaap_StatementEquityComponentsAxis explicitMember usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 3 $ true false false false Payments advanced to purchase shares: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi aig_PaymentsAdvancedToPurchaseSharesMember us-gaap_StatementEquityComponentsAxis explicitMember usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 4 $ true false false false Retained earnings: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_RetainedEarningsMember us-gaap_StatementEquityComponentsAxis explicitMember usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 false 5 $ true false false false Retained earnings: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_RetainedEarningsMember us-gaap_StatementEquityComponentsAxis explicitMember false false Adjusted balance, beginning of year us-gaap_StatementScenarioAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_ScenarioAdjustmentMember us-gaap_StatementScenarioAxis explicitMember usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 6 $ true false false false Accumulated other comprehensive income (loss): us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AccumulatedOtherComprehensiveIncomeMember us-gaap_StatementEquityComponentsAxis explicitMember usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 7 $ true false false false Unrealized appreciation (depreciation) of investments, net of tax: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AccumulatedNetUnrealizedInvestmentGainLossMember us-gaap_StatementEquityComponentsAxis explicitMember usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 8 $ true false false false Net derivative gains (losses) arising from cash flow hedging activities: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember us-gaap_StatementEquityComponentsAxis explicitMember usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 9 $ true false false false Foreign currency translation adjustments, net of tax: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AccumulatedTranslationAdjustmentMember us-gaap_StatementEquityComponentsAxis explicitMember usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 10 $ true false false false Retirement plan liabilities adjustment, net of taxes: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_AccumulatedDefinedBenefitPlansAdjustmentMember us-gaap_StatementEquityComponentsAxis explicitMember usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 11 $ true false false false Treasury stock, at cost: us-gaap_StatementEquityComponentsAxis xbrldi http://xbrl.org/2006/xbrldi us-gaap_TreasuryStockMember us-gaap_StatementEquityComponentsAxis explicitMember shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 false 12 $ false false shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 usd Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 usdPerShare Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 32 4 us-gaap_SharesIssued us-gaap true na instant shares Number of shares of stock issued, as of the end of the period. false false false true false false true false false 1 false true 2751327476 2751327476.00 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 false false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -154904286 -154904286.00 true false 12 false false 0 0 false false Number of shares of stock issued, as of the end of the period. No authoritative reference available. false 5 3 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false true false false true false false 1 true true 6878000000 6878000000.00 true false 2 true true 2094000000 2094000000.00 true false 3 true true 0 0 true false 4 true true 63468000000 63468000000.00 true false 5 true true 63468000000 63468000000.00 true false 6 false false 0 0 false false 7 true true 10326000000 10326000000.00 true false 8 true true -53000000 -53000000.00 true false 9 true true -701000000 -701000000.00 true false 10 true true -128000000 -128000000.00 true false 11 true true -2211000000 -2211000000.00 true false 12 true true 79673000000 79673000000.00 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 6 3 aig_ExcessOfCostOverProceedsOfCommonStockIssuedUnderStockPlans aig false debit duration monetary Excess of cost over proceeds of common stock issued under stock plans false false false false false false false false false 1 false false 0 0 true false 2 false true -91000000 -91000000.00 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Excess of cost over proceeds of common stock issued under stock plans No authoritative reference available. false 7 3 aig_AdjustmentsToAdditionalPaidInCapitalOther aig false credit duration monetary Represents changes in Additional paid in capital not otherwise specified in the taxonomy. false false false false false false false false false 1 false false 0 0 true false 2 false true 336000000 336000000.00 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Represents changes in Additional paid in capital not otherwise specified in the taxonomy. No authoritative reference available. false 11 3 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true 10477000000 10477000000.00 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 10477000000 10477000000.00 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 false 12 3 us-gaap_DividendsCommonStock us-gaap true debit duration monetary Aggregate cash and stock dividends declared for common stock during the period. Includes dividends from the redeemable stock... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -1615000000 -1615000000.00 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Aggregate cash and stock dividends declared for common stock during the period. Includes dividends from the redeemable stock of the parent company that is treated as capital but displayed in the balance sheet as mezzanine capital. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 14 -Subparagraph l false 13 4 us-gaap_CommonStockDividendsPerShareCashPaid us-gaap true na duration decimal Aggregate dividends paid during the period for each share of common stock outstanding. false false false false false false false false true 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 true true 0.63 0.63 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Aggregate dividends paid during the period for each share of common stock outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 15 3 us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax us-gaap true credit duration monetary Gross appreciation or the gross loss in value of the total of unsold available-for-sale securities during the period being... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false true -3577000000 -3577000000.00 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true -3577000000 -3577000000.00 false false Gross appreciation or the gross loss in value of the total of unsold available-for-sale securities during the period being reported (except when designated as a fair value hedge). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 17 false 16 3 us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax us-gaap true debit duration monetary Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false true 1599000000 1599000000.00 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 1599000000 1599000000.00 false false Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being reported on. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 17 3 us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentBeforeTaxPeriodIncreaseDecrease us-gaap true na duration monetary Pre tax adjustment that results from the process of translating subsidiary financial statements and foreign equity... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false true -926000000 -926000000.00 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true -926000000 -926000000.00 false false Pre tax adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains (losses). Includes gain (loss) on foreign currency forward exchange contracts. Includes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements. Includes the gain or loss on a derivative instrument or nonderivative financial instrument that may give rise to a foreign currency transaction gain or loss under SFAS 52 and that have been designated and have qualified as hedging instruments for hedges of the foreign currency exposure of a net investment in a foreign operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 52 -Paragraph 13, 20, 31 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 19, 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph c false 18 3 us-gaap_OtherComprehensiveIncomeForeignCurrencyTranslationAdjustmentTax us-gaap true debit duration monetary Tax effect of the adjustment that results from the process of translating subsidiary financial statements and foreign equity... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false true 386000000 386000000.00 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 386000000 386000000.00 false false Tax effect of the adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 19 3 us-gaap_OtherComprehensiveIncomeDerivativesQualifyingAsHedgesBeforeTaxPeriodIncreaseDecrease us-gaap true na duration monetary Pre tax change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false true 35000000 35000000.00 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 35000000 35000000.00 false false Pre tax change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges, net of reclassifications into earnings during the period. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset or liability or a forecasted transaction that is attributable to a particular risk. Includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 31, 46 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph (b)(1) Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 46 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 24, 26 false 20 3 us-gaap_OtherComprehensiveIncomeDerivativesQualifyingAsHedgesTaxEffectPeriodIncreaseDecrease us-gaap true na duration monetary Total tax effect of the change in accumulated gains and losses from derivative instruments designated and qualifying as the... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false true -7000000 -7000000.00 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true -7000000 -7000000.00 false false Total tax effect of the change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges after taxes. The change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 23 3 us-gaap_OtherComprehensiveIncomeMinimumPensionLiabilityNetAdjustmentNetOfTax us-gaap true debit duration monetary The after-tax amount of the change in the additional pension liability not yet recognized pursuant to SFAS 87 par 37 and 38... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false true 81000000 81000000.00 true false 11 false false 0 0 true false 12 false true 81000000 81000000.00 false false The after-tax amount of the change in the additional pension liability not yet recognized pursuant to SFAS 87 par 37 and 38 as a net periodic pension cost. If the additional pension liability required to be recognized exceeds the unrecognized prior service costs, then the excess (which is the net loss not yet recognized as net periodic pension cost) is to be recorded as a reduction of other comprehensive income, before adjusting for tax effects. If in a subsequent measurement, the amount of minimum liability is eliminated or adjusted, this adjustment is offset against other comprehensive income in Accumulated Comprehensive Income. This line also includes changes in an entity's share of an equity investee's increase (decrease) in additional pension liability not yet recognized as a net periodic pension cost. Eliminated upon adoption of SFAS 158. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 19, 20-25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph c(5) false 24 3 us-gaap_OtherComprehensiveIncomeDefinedBenefitPlansTax us-gaap true debit duration monetary Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false true -68000000 -68000000.00 true false 11 false false 0 0 true false 12 false true -68000000 -68000000.00 false false Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 27 3 us-gaap_TreasuryStockValueAcquiredCostMethod us-gaap true debit duration monetary Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -176000000 -176000000.00 true false 12 false false 0 0 false false Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12 -Subparagraph b false 28 3 us-gaap_StockIssuedDuringPeriodValueTreasuryStockReissued us-gaap true credit duration monetary Value of treasury stock reissued during the period. Upon reissuance, common and preferred stock are outstanding. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 173000000 173000000.00 true false 12 false false 0 0 false false Value of treasury stock reissued during the period. Upon reissuance, common and preferred stock are outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 1 -Section B -Paragraph 7 -Subparagraph b false 29 3 aig_TreasuryStockValueOther aig false na duration monetary No definition available. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 17000000 17000000.00 true false 12 false false 0 0 false false No definition available. No authoritative reference available. false 31 3 aig_StockholdersEquityNumberOfSharesAbstract aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false No definition available. false 33 4 us-gaap_TreasuryStockSharesAcquired us-gaap true na duration shares Number of shares that have been repurchased during the period and are being held in treasury. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -2654272 -2654272.00 true false 12 false false 0 0 false false Number of shares that have been repurchased during the period and are being held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30 -Article 5 false 34 4 us-gaap_StockIssuedDuringPeriodSharesTreasuryStockReissued us-gaap true na duration shares Number of treasury shares reissued during the period. Upon reissuance, these are common and preferred shares outstanding. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 2625227 2625227.00 true false 12 false false 0 0 false false Number of treasury shares reissued during the period. Upon reissuance, these are common and preferred shares outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 35 4 aig_TreasuryStockSharesOther aig false na duration shares No definition available. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 252627 252627.00 true false 12 false false 0 0 false false No definition available. No authoritative reference available. false 30 3 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false true false false false true false 1 false true 6878000000 6878000000.00 true false 2 false true 2339000000 2339000000.00 true false 3 false true 0 0 true false 4 false true 72330000000 72330000000.00 true false 5 false true 72638000000 72638000000.00 true false 6 false true 6967000000 6967000000.00 true false 7 false true 8348000000 8348000000.00 true false 8 false true -25000000 -25000000.00 true false 9 false true -1241000000 -1241000000.00 true false 10 false true -115000000 -115000000.00 true false 11 false true -2197000000 -2197000000.00 true false 12 false true 86317000000 86317000000.00 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 36 4 us-gaap_SharesIssued us-gaap true na instant shares Number of shares of stock issued, as of the end of the period. false false false true false false false true false 1 false true 2751327476 2751327476.00 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -154680704 -154680704.00 true false 12 false false 0 0 false false Number of shares of stock issued, as of the end of the period. No authoritative reference available. false 6 3 aig_ExcessOfCostOverProceedsOfCommonStockIssuedUnderStockPlans aig false debit duration monetary Excess of cost over proceeds of common stock issued under stock plans false false false false false false false false false 1 false false 0 0 true false 2 false true -128000000 -128000000.00 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Excess of cost over proceeds of common stock issued under stock plans No authoritative reference available. false 7 3 aig_AdjustmentsToAdditionalPaidInCapitalOther aig false credit duration monetary Represents changes in Additional paid in capital not otherwise specified in the taxonomy. false false false false false false false false false 1 false false 0 0 true false 2 false true 379000000 379000000.00 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Represents changes in Additional paid in capital not otherwise specified in the taxonomy. No authoritative reference available. false 10 3 us-gaap_CumulativeEffectOfInitialAdoptionOfNewAccountingPrinciple us-gaap true credit duration monetary Cumulative effect of initial adoption of new accounting principle on beginning retained earnings, net of tax. This element... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true 308000000 308000000.00 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Cumulative effect of initial adoption of new accounting principle on beginning retained earnings, net of tax. This element can be used, generally, for the adjustment to retained earnings of a new accounting principle. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 154 -Paragraph 17, 18 false 11 3 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true 14048000000 14048000000.00 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 14048000000 14048000000.00 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 false 12 3 us-gaap_DividendsCommonStock us-gaap true debit duration monetary Aggregate cash and stock dividends declared for common stock during the period. Includes dividends from the redeemable stock... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -1690000000 -1690000000.00 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Aggregate cash and stock dividends declared for common stock during the period. Includes dividends from the redeemable stock of the parent company that is treated as capital but displayed in the balance sheet as mezzanine capital. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 14 -Subparagraph l false 13 4 us-gaap_CommonStockDividendsPerShareCashPaid us-gaap true na duration decimal Aggregate dividends paid during the period for each share of common stock outstanding. false false false false false false false false true 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 true true 0.65 0.65 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Aggregate dividends paid during the period for each share of common stock outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 15 3 us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax us-gaap true credit duration monetary Gross appreciation or the gross loss in value of the total of unsold available-for-sale securities during the period being... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false true 2574000000 2574000000.00 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 2574000000 2574000000.00 false false Gross appreciation or the gross loss in value of the total of unsold available-for-sale securities during the period being reported (except when designated as a fair value hedge). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 17 false 16 3 us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax us-gaap true debit duration monetary Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false true -839000000 -839000000.00 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true -839000000 -839000000.00 false false Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being reported on. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 17 3 us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentBeforeTaxPeriodIncreaseDecrease us-gaap true na duration monetary Pre tax adjustment that results from the process of translating subsidiary financial statements and foreign equity... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false true 1283000000 1283000000.00 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 1283000000 1283000000.00 false false Pre tax adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains (losses). Includes gain (loss) on foreign currency forward exchange contracts. Includes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements. Includes the gain or loss on a derivative instrument or nonderivative financial instrument that may give rise to a foreign currency transaction gain or loss under SFAS 52 and that have been designated and have qualified as hedging instruments for hedges of the foreign currency exposure of a net investment in a foreign operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 52 -Paragraph 13, 20, 31 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 19, 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph c false 18 3 us-gaap_OtherComprehensiveIncomeForeignCurrencyTranslationAdjustmentTax us-gaap true debit duration monetary Tax effect of the adjustment that results from the process of translating subsidiary financial statements and foreign equity... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false true -347000000 -347000000.00 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true -347000000 -347000000.00 false false Tax effect of the adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 19 3 us-gaap_OtherComprehensiveIncomeDerivativesQualifyingAsHedgesBeforeTaxPeriodIncreaseDecrease us-gaap true na duration monetary Pre tax change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false true 13000000 13000000.00 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 13000000 13000000.00 false false Pre tax change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges, net of reclassifications into earnings during the period. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset or liability or a forecasted transaction that is attributable to a particular risk. Includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 31, 46 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph (b)(1) Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 46 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 24, 26 false 20 3 us-gaap_OtherComprehensiveIncomeDerivativesQualifyingAsHedgesTaxEffectPeriodIncreaseDecrease us-gaap true na duration monetary Total tax effect of the change in accumulated gains and losses from derivative instruments designated and qualifying as the... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false true -15000000 -15000000.00 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true -15000000 -15000000.00 false false Total tax effect of the change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges after taxes. The change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 23 3 us-gaap_OtherComprehensiveIncomeMinimumPensionLiabilityNetAdjustmentNetOfTax us-gaap true debit duration monetary The after-tax amount of the change in the additional pension liability not yet recognized pursuant to SFAS 87 par 37 and 38... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false true 80000000 80000000.00 true false 11 false false 0 0 true false 12 false true 80000000 80000000.00 false false The after-tax amount of the change in the additional pension liability not yet recognized pursuant to SFAS 87 par 37 and 38 as a net periodic pension cost. If the additional pension liability required to be recognized exceeds the unrecognized prior service costs, then the excess (which is the net loss not yet recognized as net periodic pension cost) is to be recorded as a reduction of other comprehensive income, before adjusting for tax effects. If in a subsequent measurement, the amount of minimum liability is eliminated or adjusted, this adjustment is offset against other comprehensive income in Accumulated Comprehensive Income. This line also includes changes in an entity's share of an equity investee's increase (decrease) in additional pension liability not yet recognized as a net periodic pension cost. Eliminated upon adoption of SFAS 158. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 19, 20-25 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph c(5) false 24 3 us-gaap_OtherComprehensiveIncomeDefinedBenefitPlansTax us-gaap true debit duration monetary Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false true -74000000 -74000000.00 true false 11 false false 0 0 true false 12 false true -74000000 -74000000.00 false false Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 25 3 us-gaap_ApplicationOfRecognitionProvisionsOfSFAS158EffectOnAccumulatedOtherComprehensiveIncomeNetOfTax us-gaap true debit duration monetary Adjustment of accumulated other comprehensive income, net of tax, to reflect the application of SFAS 158 recognition... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false true -532000000 -532000000.00 true false 11 false false 0 0 true false 12 false true -532000000 -532000000.00 false false Adjustment of accumulated other comprehensive income, net of tax, to reflect the application of SFAS 158 recognition provisions. It excludes the adjustment to other comprehensive income to eliminate additional minimum pension liability (AML), as well as related intangible assets. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph A7 false 27 3 us-gaap_TreasuryStockValueAcquiredCostMethod us-gaap true debit duration monetary Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -20000000 -20000000.00 true false 12 false false 0 0 false false Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12 -Subparagraph b false 28 3 us-gaap_StockIssuedDuringPeriodValueTreasuryStockReissued us-gaap true credit duration monetary Value of treasury stock reissued during the period. Upon reissuance, common and preferred stock are outstanding. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 291000000 291000000.00 true false 12 false false 0 0 false false Value of treasury stock reissued during the period. Upon reissuance, common and preferred stock are outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 1 -Section B -Paragraph 7 -Subparagraph b false 29 3 aig_TreasuryStockValueOther aig false na duration monetary No definition available. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 29000000 29000000.00 true false 12 false false 0 0 false false No definition available. No authoritative reference available. false 31 3 aig_StockholdersEquityNumberOfSharesAbstract aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false No definition available. false 33 4 us-gaap_TreasuryStockSharesAcquired us-gaap true na duration shares Number of shares that have been repurchased during the period and are being held in treasury. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -288365 -288365.00 true false 12 false false 0 0 false false Number of shares that have been repurchased during the period and are being held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30 -Article 5 false 34 4 us-gaap_StockIssuedDuringPeriodSharesTreasuryStockReissued us-gaap true na duration shares Number of treasury shares reissued during the period. Upon reissuance, these are common and preferred shares outstanding. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 4579913 4579913.00 true false 12 false false 0 0 false false Number of treasury shares reissued during the period. Upon reissuance, these are common and preferred shares outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 35 4 aig_TreasuryStockSharesOther aig false na duration shares No definition available. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 257883 257883.00 true false 12 false false 0 0 false false No definition available. No authoritative reference available. false 30 3 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false true false false false true false 1 false true 6878000000 6878000000.00 true false 2 false true 2590000000 2590000000.00 true false 3 false true 0 0 true false 4 false true 84996000000 84996000000.00 true false 5 false true 84793000000 84793000000.00 true false 6 false true 9110000000 9110000000.00 true false 7 false true 10083000000 10083000000.00 true false 8 false true -27000000 -27000000.00 true false 9 false true -305000000 -305000000.00 true false 10 false true -641000000 -641000000.00 true false 11 false true -1897000000 -1897000000.00 true false 12 false true 101677000000 101677000000.00 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 36 4 us-gaap_SharesIssued us-gaap true na instant shares Number of shares of stock issued, as of the end of the period. false false false true false false false true false 1 false true 2751327476 2751327476.00 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 true false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -150131273 -150131273.00 true false 12 false false 0 0 false false Number of shares of stock issued, as of the end of the period. No authoritative reference available. false 6 3 aig_ExcessOfCostOverProceedsOfCommonStockIssuedUnderStockPlans aig false debit duration monetary Excess of cost over proceeds of common stock issued under stock plans false false false false false false false false false 1 false false 0 0 true false 2 false true -98000000 -98000000.00 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Excess of cost over proceeds of common stock issued under stock plans No authoritative reference available. false 7 3 aig_AdjustmentsToAdditionalPaidInCapitalOther aig false credit duration monetary Represents changes in Additional paid in capital not otherwise specified in the taxonomy. false false false false false false false false false 1 false false 0 0 true false 2 false true 356000000 356000000.00 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Represents changes in Additional paid in capital not otherwise specified in the taxonomy. No authoritative reference available. false 8 3 aig_AdvancePaymentsToPurchaseSharesUnderStructuredShareRepurchaseAgreements aig false debit duration monetary Payments advanced during the period to purchase shares under structured share repurchase agreements providing for the... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false true -6000000000 -6000000000.00 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Payments advanced during the period to purchase shares under structured share repurchase agreements providing for the purchase of shares over time. No authoritative reference available. false 9 3 aig_SharesPurchasedUnderStructuredShareRepurchaseAgreements aig false credit duration monetary Shares purchased during the period under structured share repurchase agreements providing for the purchase of shares over... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false true 5088000000 5088000000.00 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Shares purchased during the period under structured share repurchase agreements providing for the purchase of shares over time. No authoritative reference available. false 10 3 us-gaap_CumulativeEffectOfInitialAdoptionOfNewAccountingPrinciple us-gaap true credit duration monetary Cumulative effect of initial adoption of new accounting principle on beginning retained earnings, net of tax. This element... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -203000000 -203000000.00 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Cumulative effect of initial adoption of new accounting principle on beginning retained earnings, net of tax. This element can be used, generally, for the adjustment to retained earnings of a new accounting principle. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 154 -Paragraph 17, 18 false 11 3 us-gaap_NetIncomeLoss us-gaap true credit duration monetary The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true 6200000000 6200000000.00 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 6200000000 6200000000.00 false false The profit or loss of the entity net of income taxes for the reporting period, calculated and presented in the income statement in accordance with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph (b) -Subparagraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 false 12 3 us-gaap_DividendsCommonStock us-gaap true debit duration monetary Aggregate cash and stock dividends declared for common stock during the period. Includes dividends from the redeemable stock... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false true -1964000000 -1964000000.00 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Aggregate cash and stock dividends declared for common stock during the period. Includes dividends from the redeemable stock of the parent company that is treated as capital but displayed in the balance sheet as mezzanine capital. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 14 -Subparagraph l false 13 4 us-gaap_CommonStockDividendsPerShareCashPaid us-gaap true na duration decimal Aggregate dividends paid during the period for each share of common stock outstanding. false false false false false false false false true 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 true true 0.77 0.77 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false Aggregate dividends paid during the period for each share of common stock outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 15 3 us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodBeforeTax us-gaap true credit duration monetary Gross appreciation or the gross loss in value of the total of unsold available-for-sale securities during the period being... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false true -8046000000 -8046000000.00 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true -8046000000 -8046000000.00 false false Gross appreciation or the gross loss in value of the total of unsold available-for-sale securities during the period being reported (except when designated as a fair value hedge). Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 115 -Paragraph 13 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 17 false 16 3 us-gaap_OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodTax us-gaap true debit duration monetary Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false true 2338000000 2338000000.00 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 2338000000 2338000000.00 false false Tax effect on gross appreciation or the gross loss in value of the total of unsold securities during the period being reported on. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 17 3 us-gaap_OtherComprehensiveIncomeForeignCurrencyTransactionAndTranslationAdjustmentBeforeTaxPeriodIncreaseDecrease us-gaap true na duration monetary Pre tax adjustment that results from the process of translating subsidiary financial statements and foreign equity... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false true 1325000000 1325000000.00 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 1325000000 1325000000.00 false false Pre tax adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity, net of reclassification of realized foreign currency translation gains (losses). Includes gain (loss) on foreign currency forward exchange contracts. Includes foreign currency transactions designated as hedges of net investment in a foreign entity and intercompany foreign currency transactions that are of a long-term nature, when the entities to the transaction are consolidated, combined, or accounted for by the equity method in the reporting enterprise's financial statements. Includes the gain or loss on a derivative instrument or nonderivative financial instrument that may give rise to a foreign currency transaction gain or loss under SFAS 52 and that have been designated and have qualified as hedging instruments for hedges of the foreign currency exposure of a net investment in a foreign operation. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 52 -Paragraph 13, 20, 31 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 19, 26 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph c false 18 3 us-gaap_OtherComprehensiveIncomeForeignCurrencyTranslationAdjustmentTax us-gaap true debit duration monetary Tax effect of the adjustment that results from the process of translating subsidiary financial statements and foreign equity... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false true -140000000 -140000000.00 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true -140000000 -140000000.00 false false Tax effect of the adjustment that results from the process of translating subsidiary financial statements and foreign equity investments into functional currency of the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 19 3 us-gaap_OtherComprehensiveIncomeDerivativesQualifyingAsHedgesBeforeTaxPeriodIncreaseDecrease us-gaap true na duration monetary Pre tax change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false true -133000000 -133000000.00 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true -133000000 -133000000.00 false false Pre tax change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges, net of reclassifications into earnings during the period. A cash flow hedge is a hedge of the exposure to variability in the cash flows of a recognized asset or liability or a forecasted transaction that is attributable to a particular risk. Includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 31, 46 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 45 -Subparagraph (b)(1) Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 46 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 24 -Subparagraph b Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 14, 17, 20, 24, 26 false 20 3 us-gaap_OtherComprehensiveIncomeDerivativesQualifyingAsHedgesTaxEffectPeriodIncreaseDecrease us-gaap true na duration monetary Total tax effect of the change in accumulated gains and losses from derivative instruments designated and qualifying as the... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false true 73000000 73000000.00 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false true 73000000 73000000.00 false false Total tax effect of the change in accumulated gains and losses from derivative instruments designated and qualifying as the effective portion of cash flow hedges after taxes. The change includes an entity's share of an equity investee's increase (decrease) in deferred hedging gains or losses. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 21 3 us-gaap_OtherComprehensiveIncomeReclassificationOfDefinedBenefitPlansNetGainLossRecognizedInNetPeriodicBenefitCostBeforeTax us-gaap true credit duration monetary The net gain or loss previously recognized in other comprehensive income that is a reclassification adjustment of other... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false true 197000000 197000000.00 true false 11 false false 0 0 true false 12 false true 197000000 197000000.00 false false The net gain or loss previously recognized in other comprehensive income that is a reclassification adjustment of other comprehensive income as a result of being recognized as a component of net periodic benefit cost for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph i Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7 -Subparagraph a Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 4 -Subparagraph d false 22 3 us-gaap_OtherComprehensiveIncomeAmortizationOfDefinedBenefitPlanNetPriorServiceCostCreditRecognizedInNetPeriodicBenefitCostBeforeTax us-gaap true credit duration monetary The net prior service cost or credit recognized in other comprehensive income that is a reclassification adjustment of other... false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false true -24000000 -24000000.00 true false 11 false false 0 0 true false 12 false true -24000000 -24000000.00 false false The net prior service cost or credit recognized in other comprehensive income that is a reclassification adjustment of other comprehensive income as a result of being recognized as a component of net periodic benefit cost for the period. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 4 -Subparagraph c, d Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph i Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7 -Subparagraph a Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 17, 19, 24 false 24 3 us-gaap_OtherComprehensiveIncomeDefinedBenefitPlansTax us-gaap true debit duration monetary Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false true -57000000 -57000000.00 true false 11 false false 0 0 true false 12 false true -57000000 -57000000.00 false false Tax effects of the net changes to accumulated comprehensive income during the period related to benefit plans. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 25 false 27 3 us-gaap_TreasuryStockValueAcquiredCostMethod us-gaap true debit duration monetary Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -5104000000 -5104000000.00 true false 12 false false 0 0 false false Cost of common and preferred stock that were repurchased during the period. Recorded using the cost method. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 6 -Paragraph 12 -Subparagraph b false 28 3 us-gaap_StockIssuedDuringPeriodValueTreasuryStockReissued us-gaap true credit duration monetary Value of treasury stock reissued during the period. Upon reissuance, common and preferred stock are outstanding. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 305000000 305000000.00 true false 12 false false 0 0 false false Value of treasury stock reissued during the period. Upon reissuance, common and preferred stock are outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 43 -Chapter 1 -Section B -Paragraph 7 -Subparagraph b false 29 3 aig_TreasuryStockValueOther aig false na duration monetary No definition available. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 11000000 11000000.00 true false 12 false false 0 0 false false No definition available. No authoritative reference available. false 31 3 aig_StockholdersEquityNumberOfSharesAbstract aig false na duration string No definition available. false false false false false true false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false false 0 0 true false 12 false false 0 0 false false No definition available. false 33 4 us-gaap_TreasuryStockSharesAcquired us-gaap true na duration shares Number of shares that have been repurchased during the period and are being held in treasury. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -76519859 -76519859.00 true false 12 false false 0 0 false false Number of shares that have been repurchased during the period and are being held in treasury. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30 -Article 5 false 34 4 us-gaap_StockIssuedDuringPeriodSharesTreasuryStockReissued us-gaap true na duration shares Number of treasury shares reissued during the period. Upon reissuance, these are common and preferred shares outstanding. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true 4958345 4958345.00 true false 12 false false 0 0 false false Number of treasury shares reissued during the period. Upon reissuance, these are common and preferred shares outstanding. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 12 -Paragraph 10 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Article 3 false 35 4 aig_TreasuryStockSharesOther aig false na duration shares No definition available. false false false false false false false false false 1 false false 0 0 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -50634 -50634.00 true false 12 false false 0 0 false false No definition available. No authoritative reference available. false 30 3 us-gaap_StockholdersEquity us-gaap true credit instant monetary Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the... false false false true false false false true false 1 true true 6878000000 6878000000.00 true false 2 true true 2848000000 2848000000.00 true false 3 true true -912000000 -912000000.00 true false 4 true true 89029000000 89029000000.00 true false 5 false false 0 0 false false 6 true true 4643000000 4643000000.00 true false 7 true true 4375000000 4375000000.00 true false 8 true true -87000000 -87000000.00 true false 9 true true 880000000 880000000.00 true false 10 true true -525000000 -525000000.00 true false 11 true true -6685000000 -6685000000.00 true false 12 true true 95801000000 95801000000.00 false false Total of all Stockholders' Equity (deficit) items, net of receivables from officers, directors owners, and affiliates of the entity. This excludes temporary equity and is sometimes called permanent equity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section E Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 29, 30, 31 -Article 5 false 36 4 us-gaap_SharesIssued us-gaap true na instant shares Number of shares of stock issued, as of the end of the period. false false false true false false false true false 1 false true 2751327476 2751327476.00 true false 2 false false 0 0 true false 3 false false 0 0 true false 4 false false 0 0 true false 5 false false 0 0 false false 6 false false 0 0 true false 7 false false 0 0 true false 8 false false 0 0 true false 9 false false 0 0 true false 10 false false 0 0 true false 11 false true -221743421 -221743421.00 true false 12 false false 0 0 false false Number of shares of stock issued, as of the end of the period. No authoritative reference available. false false 12 74 false NoRounding NoRounding Hundreds false true