Schedule II Condensed Financial Information of Registrant - Parent Company Only

12 Months Ended

Dec. 31, 2015

Schedule II Condensed Financial Information of Registrant - Parent Company Only

Schedule II Condensed Financial Information of Registrant - Parent Company Only

Condensed Financial Information of Registrant

Balance Sheets — Parent Company Only

		Schedule II
December 31,
(in millions)		2015		2014
Assets:
Short-term investments	$	4,042	$	6,078
Other investments		7,425		11,415
Total investments		11,467		17,493
Cash		34		26
Loans to subsidiaries*		35,927		31,070
Due from affiliates - net*		1,967		3,561
Intercompany tax receivable*		3,234		-
Deferred income taxes		17,564		18,309
Investments in consolidated subsidiaries*		51,151		62,811
Other assets		633		1,965
Total assets	$	121,977	$	135,235
Liabilities:
Due to affiliate*	$	4,059	$	-
Intercompany tax payable*		3,916		343
Deferred tax liabilities		9		-
Notes and bonds payable		17,136		15,821
Junior subordinated debt		1,337		2,466
MIP notes payable		1,372		2,870
Series AIGFP matched notes and bonds payable		31		33
Loans from subsidiaries*		574		951
Other liabilities (includes intercompany derivative liabilities of $144 in 2015 and $275 in 2014)		3,885		5,853
Total liabilities		32,319		28,337
AIG Shareholders’ equity:
Common stock		4,766		4,766
Treasury stock		(30,098)		(19,218)
Additional paid-in capital		81,510		80,958
Retained earnings		30,943		29,775
Accumulated other comprehensive income		2,537		10,617
Total AIG shareholders’ equity		89,658		106,898
Total liabilities and equity	$	121,977	$	135,235

* Eliminated in consolidation.

See Accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Income — Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2015		2014		2013
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries*	$	(2,929)	$	(5,573)	$	(2,226)
Dividend income from consolidated subsidiaries*		6,883		15,023		9,864
Interest income		342		305		387
Net realized capital gains (losses)		(587)		8		169
Other income		333		1,345		931
Expenses:
Interest expense		1,049		1,507		1,938
Net loss on extinguishment of debt		703		2,248		580
Other expenses		1,178		1,546		1,520
Income from continuing operations before income tax expense (benefit)		1,112		5,807		5,087
Income tax benefit		(1,086)		(1,735)		(4,012)
Net income		2,198		7,542		9,099
Loss from discontinued operations		(2)		(13)		(14)
Net income attributable to AIG Parent Company	$	2,196	$	7,529	$	9,085
* Eliminated in consolidation.
See Accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Comprehensive Income — Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2015		2014		2013
Net income	$	2,196	$	7,529	$	9,085
Other comprehensive income		(8,080)		4,257		(6,214)
Total comprehensive income attributable to AIG	$	(5,884)	$	11,786	$	2,871
See accompanying Notes to Condensed Financial Information of Registrant

Condensed Financial Information of Registrant (Continued)
Statements of Cash Flows — Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2015		2014		2013
Net cash provided by operating activities	$	4,443	$	9,316	$	6,422
Cash flows from investing activities:
Sales and maturities of investments		7,609		2,996		1,074
Purchase of investments		(1,881)		(1,051)		(5,506)
Net change in restricted cash		-		(501)		493
Net change in short-term investments		2,300		5,792		2,361
Contributions to subsidiaries - net		565		(148)		(2,081)
Payments received on mortgages and other loan receivables		158		40		351
Loans to subsidiaries - net		(83)		446		3,660
Other, net		(175)		(141)		130
Net cash provided by investing activities		8,493		7,433		482
Cash flows from financing activities:
Issuance of long-term debt		5,540		3,247		2,015
Repayment of long-term debt		(6,504)		(14,468)		(7,439)
Cash dividends paid		(1,028)		(712)		(294)
Loans from subsidiaries - net		(201)		110		(123)
Purchase of Common Stock		(10,691)		(4,902)		(597)
Other, net		(44)		(28)		(517)
Net cash used in financing activities		(12,928)		(16,753)		(6,955)
Change in cash		8		(4)		(51)
Cash at beginning of year		26		30		81
Cash at end of year	$	34	$	26	$	30
Supplementary disclosure of cash flow information:
	Years Ended December 31,
(in millions)		2015		2014		2013
Cash (paid) received during the period for:
Interest:
Third party	$	(1,030)	$	(1,624)	$	(1,963)
Intercompany		-		5		(12)
Taxes:
Income tax authorities		(11)		(18)		(161)
Intercompany		829		1,172		288
Intercompany non-cash financing and investing activities:
Capital contributions to subsidiaries through forgiveness of loans		-		-		341
Other capital contributions - net		494		2,457		523
Return of capital*		-		4,836		-
Dividends received in the form of securities		2,326		3,088		-
See Accompanying Notes to Condensed Financial Information of Registrant.
* Includes $4.8 billion return of capital from AIG Capital Corporation related to the sale of ILFC.

Notes to Condensed Financial Information of Registrant

American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant’s 2015 Annual Report on Form 10-K for the year ended December 31, 2015(2015 Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 19, 2016.

The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

Certain prior period amounts have been reclassified to conform to the current period presentation.

The five-year debt maturity schedule is incorporated by reference from Note 14 to Consolidated Financial Statements.

The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accompanying Condensed Balance Sheets.

Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and deferred tax assets, the consolidated group’s current income tax receivable, deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated income tax group and a valuation allowance to reduce the consolidated deferred tax asset to an amount more likely than not to be realized. See Note 22 to the Consolidated Financial Statements for additional information.

The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards and valuation allowance are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries.