American International Group, Inc. (AIG) a parent company of AIG Pivate Bankreported that its net income for the third quarter of 2007 was $3.09 billionor $1.19 per diluted share, compared to $4.22 billion or $1.61 per dilutedshare in the third quarter of 2006. Net income, as reported, includes theeffect of economically effective hedging activities that did not qualify forhedge accounting treatment under FAS 133, including the related foreign exchangegains and losses.

Third quarter 2007 adjusted net income, as defined below, was $3.49 billionor $1.35 per diluted share, compared to $4.02 billion or $1.53 per dilutedshare in the third quarter of 2006.

Net income for the first nine months of 2007 was $11.49 billion or$4.40 per diluted share, compared to $10.61 billion or $4.04 per dilutedshare in the first nine months of 2006. Adjusted net income for the first ninemonths of 2007 was $12.51 billion or $4.79 per diluted share, compared to$11.55 billion or $4.40 per diluted share in the first nine monthsof 2006.

At September 30, 2007, AIG’s consolidated assets were $1.072 trillion andshareholders’ equity was $104.07 billion. Shareholders’ equity declinedslightly compared to June 30, 2007, primarily as a result of net income offsetby share repurchase activity and $2.45 billion after tax in unrealizeddepreciation of investments reported in Other Comprehensive Income.

Commenting on the third quarter’s results, AIG President and ChiefExecutive Officer Martin J. Sullivan said, “In a volatile market environmentthat challenged many financial institutions, AIG reported adjusted net income of$3.49 billion in the third quarter of 2007 and increased book value per shareto $40.81, once again confirming the benefits of our diversified portfolio ofglobal businesses. While U.S. residential mortgage and credit market conditionsadversely affected our results, our active and strong risk management processeshelped contain the exposure. Our balance sheet remains strong with the financialresources to weather continued uncertainty as well as to take advantage ofattractive market opportunities as they emerge.

WIOF congratulates AIG on its success!!!

Source: www.morningstar.com