On Feb. 3 the company stock plummeted after AIG said it was taking the $1.8 billion charge after taxes, to account for higher than expected claim costs from its workers' compensation, directors and officers and excess accident insurance lines.

This Monday, AIG shares hit a price of $45.90 per share--a 52-week low. Today it was at $47.67 in early afternoon trading.

AIG's loss figure for the last quarter of 2002 translated into a loss of 3 cents per share. For the same period in 2001, the company recorded a net profit of $1.87 billion, or 70 cents per share.

The company said that for this year in its entirety it expects net income, excluding realized capital gains and losses, in the range of $9.9 billion to $10.3 billion, or $3.78 to $3.92 per share. That would compare with the $7.1 billion, or $2.70 per share, figure recorded last year.

Mr. Greenberg, who said he expects war between the United States and Iraq, said the prospects of achieving that net would be impacted by interest rates, the strength of the economy "after the war in Iraq," and whether the North Korean nuclear threat "is going to be hobbled."

In response to a question, Mr. Greenberg said in the last Gulf War his company was not impacted. He said the company had profited from insuring buildings in the reconstruction following that conflict.

AIG business in the Middle East "is not huge" and globally it has taken steps to protect itself against terrorism, he said. Rates for marine hull insurance will increase in war zones, he said.

Mr. Greenberg said he anticipated no further reserve actions this year. He said he would give no guidance on combined ratios, because they can be affected by catastrophes. But he noted that the company would like an overall ratio in the 93-to-94 range,.

For all of 2002, AIG's net income was $5.52 billion compared with $5.36 billion in 2001. If the $1.8 billion reserve is recognized as a one-time event "it was a pretty good year," said Mr. Greenberg.

The company's rise in revenues during 2002 included general insurance net premiums written of $27.4 billion, which increased 36.4 percent, and life insurance premium income and deposits of $48.66 billion, for a 11.6 percent gain.

A drop for 2002 results was recorded in the company's retirement savings and asset management sector which declined from $1.09 billion in 2001 to $1.02 billion.

Last month, AIG's International Lease Finance Corp. subsidiary, which leases aircraft, repossessed a jet from France's Varig Airlines. Company officials said ILFC was in good financial shape this year with 83 new aircraft preleased to airlines around the world.

The U.S. airlines slump is not affecting the company because only four new aircraft have been leased to U.S. carriers, the company said.