Programa psicopedagógico

(in millions) 2002 2001(a)

Premium Income, Deposits and Other Considerations(b) _{$23,225.7 $20,060.6}

GAAP Premium Income 15,698.5 14,114.9

Operating Income Before Realized Capital Gains (Losses) 3,293.9 2,641.1

Operating Income 3,224.9 2,717.5

Premium income, deposits and other considerations for AIG’s Foreign Life operations increased 15.8 percent to $23.23 billion and operating income excluding realized capital losses increased 24.7 percent to $3.29 billion.

American International Assurance, Ltd. (AIA)is the

premier life insurer in Asia with an extensive network of branches, subsidiaries and affiliates in Australia, Brunei, China, Guam, Hong Kong, India, Indonesia, Macau, Malaysia, New Zealand, Saipan, Singapore, Sri Lanka, South Korea, Thailand and Vietnam. AIA achieved strong results in 2002. AIA’s strong performance is driven by its high quality agency force, well-respected brand and reputation in local markets, and its wide range of distribution channels, including strategic alliances with the region’s top banks and financial companies.

In 2002, AIA capitalized on the application of new technologies to provide enhanced service to agents and policyholders. In Hong Kong, e-business initiatives improved operating efficiency and allowed agents to streamline the underwriting process. In Singapore, new laptop financial planning software was introduced to enable financial advisors to conduct interactive needs analyses, illustrate product benefits to customers, and generate application forms through a single system.

AIAmade significant new inroads in China, becoming the first foreign life insurer to have wholly owned life insurance operations in Beijing, Suzhou, Dongguan and Jiangmen. AIA also established new agency offices in Shanghai, Guangzhou, Foshan and Shenzhen, broadening its reach in this important country.

In Hong Kong, AIA launched a popular nonlinked endowment product to meet the high demand for savings instruments. Sales of index products were strong in Singapore and Malaysia. AIA Thailand, the country’s largest life insurer, strengthened its market leading position through the launch of a series of savings products featuring enhanced returns to policyholders. In India, Tata AIG Life Insurance Company Limited reported strong premium growth in its first full year of operation. During 2002, Tata AIG opened three new branches, expanding its market presence to 11 cities. AIA’s insurance operation in Korea, AIG Life Insurance, continued to be one of the fastest-growing insurers in the market and opened several new agency offices. A combination of direct marketing initiatives, advertising and alliance marketing with financial institutions significantly increased sales volume while building AIG Life’s brand throughout the country. AIA Vietnam received the 2001 Golden Dragon Award for its professional business practices in the finance and banking sector. The award acknowledged and reflected AIA Vietnam’s success in establishing its brand and reputation in the local market.

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(a)_{2001 has been restated to conform to the 2002 presentation.}

(b)_{Includes premium income, deposits, annuities, pensions and investment products.}

Renowned for its high quality agency force and personalized service, AIA is the leading life insurer in Southeast Asia. Clients rely on AIA’s professional agents for their product knowledge and ability to provide financial planning expertise. AIA Malaysia Senior District Director Jeffrey Chiew a 25-year AIA veteran, is the top-producing district manager in Malaysia. He is also a noted financial expert, entrepreneur, sought-after public

speaker and author, whose best-selling works include How to Be a Superachieverand King of Insurance. Mr. Chiew is pictured in Kuala

Lumpur amid stacks of his publications.

Foreign Life Insurance – Operating Income* (millions of dollars) 92 93 94 95 96 97 98 99 00 01 02 500 1,000 1,500 2,000 2,500 3,000 3,500

American Life Insurance Company (ALICO)operates in more than 50 countries encompassing Japan, Europe, the Middle East, Africa, Latin America, South Asia and the Caribbean. ALICO’s branches and subsidiaries market a broad range of life and health products through a network of approximately 30,000 agents and brokers. Its extensive product line includes traditional life, unit-linked life, accident and health, group insurance for large and small organizations, pensions and annuities. ALICO had record premiums and operating income in 2002.

ALICOJapan is a leading foreign life insurer and the leading foreign provider of annuity products. During 2002, ALICO Japan had excellent results driven by new product launches, distribution expansion and advertising, which supported its position as one of the most recognized insurance companies in Japan. Total ALICO Japan premiums reached record highs. Diverse distribution channels, including 8,400 independent agents, 3,600 career agents and direct marketing, allow ALICO to offer a broad range of products to middle-income and high- net-worth individuals, as well as small business owners. Direct marketing operations, which distribute guaranteed issue life and accident and health products, had a record year. Distribution was enhanced by the addition of a new bank channel for retirement savings products.

In the United Kingdom, ALICO’s focus on marketing innovative products through multiple distribution channels, including direct marketing and agency initiatives, allowed the region to achieve strong premium growth. A new direct marketing company based in France, AIG Marketing Europe, combined with telemarketing efforts, increased distribution throughout Western Europe. The Central and Eastern Europe region had an excellent year, with the Czech Republic, Greece, Hungary, Poland and Slovakia all reporting double-digit profit growth.

In the Middle East, where ALICO is the leading life insurance company, a record of growth continued despite political and economic uncertainties in the region. Due to the expansion of its high quality agency force and the broadening use of bank and other distribution channels, ALICO recorded strong results, especially in Bangladesh, Jordan, Saudi Arabia and the Persian Gulf.

In Latin America, the crisis in certain financial markets resulted in reduced profits. In Brazil, ALICO expanded its joint activities with Unibanco, the country’s third largest private banking group. Unibanco AIG Seguros, S.A. and the joint pension and retirement business achieved strong premium growth and solid profits.

AIG Star Life Insurance Co., Ltd. (AIG Star)contributed

to AIG’s growing presence in Japan in its first full year of operation as an AIG-owned company. During 2002, AIG Star streamlined operations to achieve more effective distribution, enhance agent productivity and improve customer service. With over 3,900 exclusive agents and more than two million policies in force, AIGStar is well-positioned in the Japanese market with a core product line of basic life and medical insurance.

In Taiwan, Nan Shan Life Insurance Company, Ltd.

(Nan Shan)achieved good premium growth. Nan Shan launched

its first investment product and continued to develop alternative distribution channels, including bancassurance and direct marketing. The company developed new technologies to support sales and simplify customer service procedures, and was honored by national and international insurance associations for having the best insurance professionals, the best training programs, and the most innovative products.

The Philippine American Life and General Insurance

Company (Philamlife)in 2002 achieved good premium growth,

launched innovative products, pursued alternative distribution channels and developed profitable niche markets, including a strong high-net-worth individual segment. Philamlife also established a joint marketing venture with Security Bank Corporation (SBC), a leading Philippine financial institution, to direct market Philamlife products and services to SBC clients. Philamlife had good growth through initiatives in the asset management sector, as well as in the pre-need accumulation products segment, a growing market where customers can invest in plans that cover future events including education, pension and retirement, as well as funerals. In 2002, Philamlife enhanced its market-leading positions in both areas. PhilamCare Health Systems, Inc. acquired ING’s healthcare arm in the Philippines, Orange Healthcare, Inc., supporting PhilamCare’s reputation as the leading healthcare provider in the country.

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For nearly 40 years, Greece has been one of ALICO’s most successful European markets. Top-selling agents like Zak Soussis exemplify the dedication and professional standards that distinguish the ALICO sales force and consistently result in ALICO’s top ranking among life insurance companies in Greece. Over the course of his 15-year career with ALICO Greece, Mr. Soussis has gained numerous regional and international sales awards, as well as the distinction of managing the largest personal accident portfolio in all of ALICO worldwide.

Foreign Life Insurance – GAAP Premium Income (millions of dollars) 92 93 94 95 96 97 98 99 00 01 02 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500

AIG’s Domestic Life Insurance businesses distribute a broad range of products and services through both independent and career agent networks, as well as via multiple distribution channels, including banks. These extensive product offerings and distribution resources, combined with AIG’s financial strength, provide key competitive advantages in individual consumer, business and institutional markets.