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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES AND EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 9, 2001
AMERICAN INTERNATIONAL GROUP, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 1-8787 13-2592361
(State or Other (Commission File Number) (IRS Employer
Jurisdiction of Identification No.)
Incorporation)
70 Pine Street
New York, New York 10270
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (212) 770-7000
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(Former name or Former Address, if Changed Since Last Report)
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Item 5. Other events.
On October 9, 2001, American International Group, Inc. (AIG) Chairman
M.R. Greenberg held a conference call for investors and analysts during which
he provided the following information:
AIG continues to update the estimates of its total expected
net losses resulting from the terrorist attacks of September 11,
2001. It is impossible for any company to precisely estimate its
total losses at the current time. Although AIG's property insurance
coverages on the World Trade Center complex are minor, AIG expects
ultimately to receive claims from many insureds across a wide range
of coverages. Based on the information available at the current time,
AIG's net pre-tax losses are expected to approximate $800 million.
On August 29, 2001, AIG acquired American General Corporation
(AGC) in a transaction accounted for as a pooling of interests. It is
estimated that the combined entity will incur one-time pre-tax costs
of approximately $1.3 billion in the third quarter of 2001 ($950 million
after tax) with additional less significant costs expected to be incurred
in the fourth quarter of 2001 and in 2002 and 2003 related to the ongoing
integration of operations.
Approximately 40 percent of the one-time costs incurred in the third
quarter are related to direct costs with respect to the acquisition such as
investment banking, legal and accounting fees, employee severance and other
termination benefits, and other compensation costs related to change in
control provisions applicable to AGC executives. Also included in one-time
costs are charges resulting from post-business combination plans. Such
charges recognize that certain assets will have no future economic benefit
or ability to generate future revenues. Such costs include asset impairment
charges related to software, leasehold improvements and certain goodwill
related to such operations as part of the post-business combination plans.
Also included are certain adjustments associated with conforming AGC's
balances to AIG's existing accounting policies and methodologies.
Ongoing costs with respect to the integration of operations will be
expensed in future periods as incurred. AIG expects that these ongoing
costs will include costs for the integration of computer systems, the
training and relocation of certain employees and the consolidation of
facilities.
As previously stated, AIG ultimately anticipates annual savings of
approximately $400 million from the business combination, reflecting
principally the benefits of reductions in redundant operations.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
AMERICAN INTERNATIONAL GROUP, INC.
(Registrant)
Date: October 9, 2001 By /s/ KATHLEEN E. SHANNON
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Name: Kathleen E. Shannon
Title: Vice President and Secretary