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Member, Beacon International Group, Ltd.
NEW YORK—A change in the accounting standards applied to insurance companies led American International Group Inc. to post new figures for net income for 2011 and 2010.
Under the new standards, which took effect Jan. 1, AIG’s 2011 net income would have been reported as $21.33 billion compared with $17.8 billion under existing standards. Income for 2010 using the new standard increased to $10.06 billion from $7.89 billion.
The revised Financial Accounting Standards Board standards include an insurer-specific addition to generally accepted accounting principals.
“The unaudited financial information contained in this financial supplement reflects the retrospective adoption of an accounting standard update on Jan. 1, 2012 that amends the accounting for costs incurred by insurance companies that can be capitalized in connection with acquiring or renewing insurance contracts,” New York-based AIG said in a statement. “All amounts contained in this financial supplement have been revised accordingly.”
Financial and other information in earlier financial supplements for each quarter in 2010 and 2011 “that is not affected by the adoption of the accounting standard and remains unchanged has been omitted from this financial supplement,” AIG said.
“We did this as a courtesy to investors so that they can see how the numbers will be presented going forward,” an AIG spokesman said.
AIG is due to report its first-quarter results on May 3.