American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Q3 2008 Earnings Presentation
11 slides from American International Group, Inc. New's earnings presentation, Nov 10, 2008
Slide 1: Capital Structure and 3Q 2008 Earnings Investor Presentation
Capital Structure and 3Q 2008 Earnings Investor Presentation November 10, 2008
Slide 2: Forward-looking statements disclaimer
It should be noted that the remarks made in this document, the conference call and press release may contain projections concerning financial information and statements concerning future economic performance and events, plans and objectives relating to special purpose vehicles formed with the Federa
Slide 3: Win-Win Plan Designed to Accomplish Multiple Objectives
Win-Win Plan Designed to Accomplish Multiple Objectives • Creates durable capital structure for AIG • Provides Fed loan with lower cost of capital and increased liquidity flexibility • Addresses Securities Lending liquidity issue and multi-sector Credit Default Swap issue, which has accounted for vi
Slide 4: Current Funding Sources
Current Funding Sources ($ in billions as of 11/05/08) Undrawn 85.0 Drawn 37.8 17.9 20.9 5.6 19.9 15.3 Securities Lending Commercial Paper Facility Funding Facility 4
Slide 5: Comprehensive Plan Combines Ongoing Financing and One-Time Transactions
Comprehensive Plan Combines Ongoing Financing and One-Time Transactions Preferred Stock and 5-Year Debt Facility Commercial Paper Ongoing Financing Warrants ($ in billions) Funding Facility ($ in billions) ($ in billions as of 11/05/08) 60.0 Undrawn 40.0 39.0 Drawn 20.9 5.6 21.0 15.3 Securities Lend
Slide 6: Benefits to US Taxpayers
Benefits to US Taxpayers • Over $2 billion in fees and interest to date on existing bridge loan • 10% annual dividend on preferred stock • Interest on revised 5-year debt facility at LIBOR + 3.0% • Fee on undrawn portion of revised 5-year debt facility at 0.75% • Majority of potential upside on RMBS
Slide 7: Third Quarter Earnings
Third Quarter Earnings 7
Slide 8: Third Quarter Earnings
Third Quarter Earnings • Reported loss reflects a confluence of unprecedented events • Global franchise strength allowed us to continue to write significant amounts of new business this quarter – Consolidated premiums and other considerations totaled $21 billion, up 7% – Foreign General NPW up 11.5%
Slide 9: 3Q Earnings Reflect Significant Charges Related to Market Disruption, Restructuring Actions & Cat Losses
3Q Earnings Reflect Significant Charges Related to Market Disruption, Restructuring Actions & Cat Losses • Market Disruption – Other Than Temporary Impairments (OTTI) reflect continued turmoil in credit markets – Continued significant negative impact on AIGFP CDS exposure • Restructuring Actions – C
Slide 10: Reference Slides
REFERENCE SLIDES
Slide 11: Significant Items Affecting 3Q Reported Earnings
Significant Items Affecting 3Q Reported Earnings Pre-Tax After-Tax Net income (loss) (24,468) Net realized capital gains (losses), net of tax (15,056) FAS 133 gains (losses), excluding net realized capital gains, net of tax (172) Adjusted loss – reported (9,474) (9,240) Significant items affecting t
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