• Included in 2007 net income and adjusted net income was a charge of $11.47 billion pretax ($7.46 billion after tax) for unrealized market valuation
  losses related to the AIG Financial Products Corp. (AIGFP) super senior credit default swap portfolio.
• Based upon its most current analysis, AIG believes any losses that are realized over time on the super senior credit default swap portfolio of AIGFP will not be material to AIG’s overall financial condition, although it is possible that realized losses could be material to AIG’s consolidated results of operations for an individual reporting period. (p4-5)

2007 AIG Annual Report - 276p