This summary is based on the fourth quarter fiscal 2007 earnings call conducted by American International Group. (AIG: chart) on February 29, 2008.

Management:

– President and CEO: Martin J. Sullivan
– EVP and CFO: Steven J. Bensinger
– EVP and Chief Investment Officer: Win Jay Neuger
– Sr. VP and Chief Risk Officer: Robert E. Lewis
– Senior Vice Chairman, Life Insurance: Edmund S.W. Tse
– EVP, Domestic General Insurance: Kristian P. Moor
– EVP, Foreign General Insurance: Nicholas C. Walsh
– Chairman and CEO, American General Finance: Frederick W. Geissinger
– Sr. VP, Domestic General Insurance: John Q. Doyle
– President and CEO, UGC: William V. Nutt, Jr.
– VP and Chief Credit Officer: Kevin B. McGinn
– President, AIG Financial Products Corp.: Joseph J. Cassano
– VP and Casualty Actuary: Frank H. Douglas
– EVP of Domestic Personal Lines: Robert M. Sandler
– VP and Director of IR: Charlene M. Hamrah

Key Investors Issues

- Net premiums written were up 2.3% to $11 billion.
- The firm reported a net loss of $5.3 billion or $2.08 a share.
- The firm repurchased over 21 million shares.

Full Year Highlights:

- Net premiums written increased 5% to $47 billion.
- Adjusted net income was $9.31 billion or $3.58 per share, compared to $15.41 billion or $5.88 per share for 2006.
- Total shares purchased numbered 76.4 million.
Fourth Quarter Highlights

The firm reported a net loss of $5.3 billion or $2.08 a share, from a profit of $3.4 billion or $1.31 a share in the prior year as a number of businesses were adversely affected by their exposure to the domestic residential real estate market.

- Adjusted net loss of $3.2 billion was reduced by the net unrealized market valuation loss of $11.12 billion pretax or $7.23 billion after-tax, related to AIG financial products'' Super Senior credit Default Swap Portfolio.
- These losses occurred in the context of a significant widening of spreads of asset-backed securities, principally those related to U.S. residential mortgages.
- Losses were also due to the severe liquidity crisis affecting the structured finance markets and the affects of rating agency downgrades on the underlying collateral.
- Net income was affected by $1.7 billion in after-tax net realized capital losses, as well as $418 million in after-tax other than temporary impairment charges related to AIGFP''s ''Available for Sale'' investment securities.

United Guaranty and American General Finance reported an operating loss of $348 million and $9 million, respectively, due to an increase in the provision for finance receivable losses and a decline in mortgage banking revenues.

- Net premiums written were up 2.3% to $11 billion from $10.8 billion in the prior year.
- Operating results in both these businesses are expected to continue to be challenged as future premiums on the existing in-force broking, of both domestic first and secondly lien risks will exceed future losses incurred.
- While not immune to the downward cycle of the housing market, AGF''s adherence to disciplined underwriting standards will continue to help maintain credit quality.

The firm also believes that opportunity to acquire high-quality portfolios, similar to the pending acquisition of Equity One''s branch loan portfolio will continue.

- It also recorded $2.54 billion after-tax or $3.8 billion pretax in unrealized depreciation of investments included in other comprehensive income.
- The firm repurchased over 21 million shares bringing the total to 76.4 million purchased for the full year 2007 and an additional 12 million shares were purchased in 2008 through February 15th, funded by hybrid debt issuances.
- No additional shares will purchased in the foreseeable future, other than for filling commitments that existed at December 31st.

Valuation of AIGFP’s Credit Default Swap Portfolio:

- The firm could not find observable data points in this highly disrupted and a liquid market to value to the protection it provided.
- The business was carefully underwritten and structured using models to ensure that attachment points would withstand highly stressed economic conditions.
- Management believes that the unrealized market valuation losses on this Super Senior Credit Default Swap Portfolio are not indicative of the losses AIGFP may realize over time.
- Under the terms of these credit derivatives, losses to AIG would result from the credit impairment of any bonds AIG would acquire in satisfying its swap obligations.

Based upon current analysis, any credit impairment losses realized over time by AIGFP would not be material to AIG''s consolidated financial condition, although they could be material to results of individual operations.

- Except to the extent of any such realized credit impairment losses, the firm expects AIGFP unrealized market valuation losses to reverse over the remaining life of the Super Senior Credit Default Swap Portfolio.
- The firm recorded pretax charges of $3.3 billion for other than temporary declines in value, including $2.32 billion in pretax impairments related to investments and structure securities including RMBS.
- Most of these impairment charges resulted from the significant rapid declines in market values of certain residential mortgage-backed securities, which where priced at a severe discount to book.

Significant Accomplishments:

- It increased distribution through acquisitions and new partnership by appointingW¨uBA a middle market commercial insurer in Germany and Matrix Direct, a direct marketing life insurance business in the U.S.
- It also struck new distribution agreements with Japan Post and Signopec in Taiwan.
- In China, the firm secured a license for the Foreign General business to establish a wholly-owned foreign enterprise.

Several new ventures were compleed, including establishing an asset management company in India and launching three new mutual funds there.