American International Group has finally filed its 2004 annual report after delaying it three times. Along with the filing, the international insurance group has reported its restated 2004 results and revised figures for the previous five years; with the headline that income had been overstated by nearly $4 billion.
AIG’s net income for the year 2004 amounted to $9.73 billion, a reduction of $1.32 billion or 11.9% from the $11.05 billion previously announced in the February 9 earnings release. Furthermore, having reviewed its figures from 2000, the company revealed that it had overstated net income for the past five years by $3.9 billion.
The insurer reported consolidated shareholders’ equity at December 31, 2004 of $80.61 billion, a reduction of $2.26 billion or 2.7% from the unaudited consolidated shareholders’ equity of $82.87 billion, which was previously announced in AIG’s earnings release. This change includes an after-tax reduction of $1.19 billion for changes in estimates for the 2004 fourth quarter.
Martin Sullivan, AIG president and CEO, said, I am pleased that we have completed our internal review and filed our 2004 form 10-K, which reflects the results of our detailed and thorough review of AIG’s major business units globally.
We are embarking on a new era for AIG that will be marked by changes in the way we operate – including greater responsiveness and transparency – while preserving the core values that have enabled us to build an unequaled franchise and effectively meet our customers’ needs. I am confident that the changes we are initiating throughout the organization will make AIG an even stronger and better company.