2007 Annual Report - AIG.com

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American International Group, Inc. and Subsidiaries Computation of Ratios of Earnings to Fixed Charges Exhibit 12 Years Ended December 31, (in millions, except ratios) 2007 2006 2005 2004 2003 Income before income taxes, minority interest and cumulative effect of accounting changes $ 8,943 $21,687 $15,213 $14,845 $11,907 Less — Equity income of less than 50% owned companies 160 188 (129) 164 146 Add — Dividends from less than 50% owned companies 30 28 146 22 13 8,813 21,527 15,488 14,703 11,774 Add — Fixed charges 11,470 9,062 7,663 6,049 5,762 Less — Capitalized interest 37 59 64 59 52 Income before income taxes, minority interest, cumulative effect of accounting changes and fixed charges $20,246 $30,530 $23,087 $20,693 $17,484 Fixed charges: Interest costs $11,213 $ 8,843 $ 7,464 $ 5,860 $ 5,588 Rental expense* 257 219 199 189 174 Total fixed charges $11,470 $ 9,062 $ 7,663 $ 6,049 $ 5,762 Ratio of earnings to fixed charges 1.77 3.37 3.01 3.42 3.03 Secondary Ratio Interest credited to GIC and GIA policy and contract holders $ (6,660) $ (5,128) $ (4,760) $ (3,674) $ (3,578) Total fixed charges excluding interest credited to GIC and GIA policy and contract holders $ 4,810 $ 3,934 $ 2,903 $ 2,375 $ 2,184 Secondary ratio of earnings to fixed charges 2.82 6.46 6.31 7.17 6.37 * The proportion deemed representative of the interest factor. The secondary ratio is disclosed for the convenience of fixed income investors and the rating agencies that serve them and is more comparable to the ratios disclosed by all issuers of fixed income securities. The secondary ratio removes interest credited to guaranteed investment contract (GIC) policyholders and guaranteed investment agreement (GIA) contractholders. Such interest expenses are also removed from earnings used in this calculation. GICs and GIAs are entered into by AIG’s insurance subsidiaries, principally SunAmerica Life Insurance Company and AIG Financial Products Corp. and its subsidiaries, respectively. The proceeds from GICs and GIAs are invested in a diversified portfolio of securities, primarily investment grade bonds. The assets acquired yield rates greater than the rates on the related policyholders obligation or contract, with the intent of earning a profit from the spread. 208 AIG 2007 Form 10-K
American International Group, Inc. and Subsidiaries Subsidiaries of Registrant Exhibit 21 Percentage of Voting Securities Jurisdiction of held by Incorporation or Immediate As of December 31, 2007 Organization Parent 1 American International Group, Inc. (2) Delaware (3) AIG Capital Corporation Delaware 100 AIG Capital India Private Limited India 99.99 (4) AIG Global Asset Management Company (India) Private Limited India 99 (5) AIG Consumer Finance Group, Inc. Delaware 100 AIG Bank Polska S.A. Poland 99.92 AIG Credit SA Poland 100 Compania Financiera Argentina S.A. Argentina 100 AIG Credit Corp. Delaware 100 A.I. Credit Consumer Discount Company Pennsylvania 100 A.I. Credit Corp. New Hampshire 100 AICCO, Inc. Delaware 100 AICCO, Inc. California 100 AIG Credit Corp. of Canada Canada 100 Imperial Premium Funding, Inc. Delaware 100 AIG Equipment Finance Holdings, Inc. Delaware 100 AIG Commercial Equipment Finance, Inc. Delaware 100 AIG Commercial Equipment Finance Company, Canada Canada 100 AIG Rail Services, Inc. Delaware 100 AIG Finance Holdings, Inc. New York 100 AIG Finance (Hong Kong) Limited Hong Kong 100 American General Finance, Inc. Indiana 100 American General Auto Finance, Inc. Delaware 100 American General Finance Corporation Indiana 100 Merit Life Insurance Co. Indiana 100 MorEquity, Inc. Nevada 100 Wilmington Finance, Inc. Delaware 100 Ocean Finance and Mortgages Limited England 100 Yosemite Insurance Company Indiana 100 CommoLoCo, Inc. Puerto Rico 100 American General Financial Services of Alabama, Inc. Delaware 100 AIG Global Asset Management Holdings Corp. Delaware 100 AIG Asset Management Services, Inc. Delaware 100 AIG Capital Partners, Inc. Delaware 100 AIG Equity Sales Corp. New York 100 AIG Global Investment Corp. New Jersey 100 AIG Global Real Estate Investment Corp. Delaware 100 AIG Securities Lending Corp. Delaware 100 Brazos Capital Management, L.P. Delaware 100 AIG 2007 Form 10-K 209
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AMERICAN INTERNATIONAL GROUP, INC.
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FINANCIAL HIGHLIGHTS (in millions,
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overall financial condition, althou
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Group Executive Committee We are ad
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AIG’s life insurance network is t
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We have also begun to address the e
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WHAT WE SEE The ability to see and
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The Major Accounts Practice within
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Around the world, the middle class
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WE SEE GROWTH OPPORTUNITIES IN EMER
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To grow the strength of the AIG glo
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Since 2003, the AIG Disaster Relief
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RESPECT Respect encompasses how we
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Life Insurance & Retirement Service
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Domestic Brokerage Group— Gross P
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In the summer of 2007, widespread f
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in gross premiums written. It launc
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It grew new business premiums from
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emerging markets for its services,
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ILFC—Revenues by Region Total = $
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AIG Investments acquired a 94 perce
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and changing interest rates, as wel
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American International Group, Inc.
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UNITED STATES SECURITIES AND EXCHAN
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Index of Notes to Consolidated Fina
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Page 211 and 212: American International Group, Inc.
Page 261: American International Group, Inc.
Page 275 and 276: SHAREHOLDER INFORMATION Corporate H
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2007 Annual Report - AIG.com

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