2007 Annual Report - AIG.com

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American International Group, Inc. and Subsidiaries Part II Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities AIG’s common stock is listed on the New York Stock Exchange, as well as on the stock exchanges in Paris and Tokyo. The following table presents the high and low closing sales prices and the dividends paid per share of AIG’s common stock on the New York Stock Exchange Composite Tape, for each quarter of 2007 and 2006: 2007 2006 Dividends Dividends High Low Paid High Low Paid First quarter $72.15 $66.77 $0.165 $70.83 $65.35 $0.150 Second quarter 72.65 66.49 0.165 66.54 58.67 0.150 Third quarter 70.44 61.64 0.200 66.48 57.76 0.165 Fourth quarter 70.11 51.33 0.200 72.81 66.30 0.165 The approximate number of holders of common stock as of January 31, 2008, based upon the number of record holders, was 56,500. Subject to the dividend preference of any of AIG’s serial preferred stock that may be outstanding, the holders of shares of common stock are entitled to receive such dividends as may be declared by AIG’s Board of Directors from funds legally available therefor. In February 2007, AIG’s Board of Directors adopted a new dividend policy, which took effect with the dividend that was declared in the second quarter of 2007. Under ordinary circumstances, AIG’s plan is to increase its common stock dividend by approximately 20 percent annually. The payment of any dividend, however, is at the discretion of AIG’s Board of Directors, and the future payment of dividends will depend on various factors, including the performance of AIG’s businesses, AIG’s consolidated financial condition, results of operations and liquidity and the existence of investment opportunities. For a discussion of certain restrictions on the payment of dividends to AIG by some of its insurance subsidiaries, see Note 14 to Consolidated Financial Statements. The following table summarizes AIG’s stock repurchases for the three-month period ended December 31, 2007: Maximum Number Total Number of Shares that of Shares May Yet Be Total Number Purchased as Part Purchased Under the of Shares Average Price of Publicly Announced Plans or Programs Period Purchased (a)(b) Paid per Share Plans or Programs at End of Month (b) October 1 - 31, 2007 13,964,098 $66.12 13,964,098 November 1 - 30, 2007 5,709,067 61.56 5,709,067 December 1 - 31, 2007 1,584,199 55.58 1,584,199 Total 21,257,364 $64.11 21,257,364 (a) Reflects date of delivery. Does not include 49,583 shares delivered or attested to in satisfaction of the exercise price by holders of AIG employee stock options exercised during the three months ended December 31, 2007 or 23,300 shares purchased by ILFC to satisfy obligations under employee benefit plans. (b) In February 2007, AIG’s Board of Directors increased AIG’s share repurchase program by authorizing the repurchase of shares with an aggregate purchase price of $8 billion. In November 2007, AIG’s Board of Directors authorized the repurchase of an additional $8 billion in common stock. A balance of $10.9 billion remained for purchases under the program as of December 31, 2007, although $912 million of that amount has been advanced by AIG to purchase shares under the program and an additional $1 billion was required to be advanced in January 2008 to meet commitments that existed at December 31, 2007. AIG does not expect to purchase additional shares under its share repurchase program for the foreseeable future, other than to meet commitments that existed at December 31, 2007. AIG’s table of equity compensation plans previously approved by security holders and equity compensation plans not previously approved by security holders will be included in AIG’s Definitive Proxy Statement in connection with its 2008 Annual Meeting of Shareholders, which will be filed with the SEC within 120 days of AIG’s fiscal year end. 26 AIG 2007 Form 10-K
American International Group, Inc. and Subsidiaries Performance Graph The following Performance Graph compares the cumulative total shareholder return on AIG common stock for a five-year period (December 31, 2002 to December 31, 2007) with the cumulative total return of the Standard & Poor’s 500 stock index (which includes AIG) and a peer group of companies consisting of nine insurance companies to which AIG compares its business and operations: ACE Limited, Aflac Incorporated, The Chubb Corporation, The Hartford Financial Services Group, Inc., Lincoln National Corporation, MetLife, Inc., Prudential Financial, Inc., The Travelers Companies, Inc. (formerly The St. Paul Travelers Companies, Inc.) and XL Capital Ltd. FIVE-YEAR CUMULATIVE TOTAL SHAREHOLDER RETURNS Value of $100 Invested on December 31, 2002 $250 $200 $150 $100 $50 $0 2002 2003 2004 2005 2006 2007 Years Ending AMERICAN INTERNATIONAL GROUP S&P 500 INDEX PEER GROUP As of December 31, 2002 2003 2004 2005 2006 2007 AIG $100.00 $115.02 $114.43 $119.98 $127.24 $104.67 S&P 500 100.00 128.68 142.69 149.70 173.34 182.86 Peer Group 100.00 126.10 145.73 179.22 207.37 216.60 AIG 2007 Form 10-K 27
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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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Index of Notes to Consolidated Fina
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SHAREHOLDER INFORMATION Corporate H
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2007 Annual Report - AIG.com

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