INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

3 Months Ended

Mar. 31, 2016

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

14.INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

The following Condensed Consolidating Financial Statements reflect the results of AIGLH, a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH.

Condensed Consolidating Balance Sheets

		American
		International					Reclassifications
		Group, Inc.				Other		and	Consolidated
(in millions)	(As Guarantor)		AIGLH			Subsidiaries		Eliminations		AIG
March 31, 2016
Assets:
Short-term investments	$	4,391	$	-	$	10,635	$	(4,112)	$	10,914
Other investments(a)		5,437		-		326,495		-		331,932
Total investments		9,828		-		337,130		(4,112)		342,846
Cash		36		7		1,456		-		1,499
Loans to subsidiaries(b)		35,109		-		411		(35,520)		-
Investment in consolidated subsidiaries(b)		55,010		30,908		-		(85,918)		-
Other assets, including deferred income taxes		24,470		125		137,311		(3,474)		158,432
Total assets	$	124,453	$	31,040	$	476,308	$	(129,024)	$	502,777
Liabilities:
Insurance liabilities	$	-	$	-	$	274,789	$	-	$	274,789
Long-term debt		22,133		678		9,141		-		31,952
Other liabilities, including intercompany balances(a)		13,407		54		101,237		(7,743)		106,955
Loans from subsidiaries(b)		395		-		35,125		(35,520)		-
Total liabilities		35,935		732		420,292		(43,263)		413,696
Total AIG shareholders’ equity		88,518		30,308		55,453		(85,761)		88,518
Non-redeemable noncontrolling interests		-		-		563		-		563
Total equity		88,518		30,308		56,016		(85,761)		89,081
Total liabilities and equity	$	124,453	$	31,040	$	476,308	$	(129,024)	$	502,777
December 31, 2015
Assets:
Short-term investments	$	4,042	$	-	$	9,637	$	(3,547)	$	10,132
Other investments(a)		7,425		-		320,797		-		328,222
Total investments		11,467		-		330,434		(3,547)		338,354
Cash		34		116		1,479		-		1,629
Loans to subsidiaries(b)		35,927		-		578		(36,505)		-
Investment in consolidated subsidiaries(b)		51,151		30,239		-		(81,390)		-
Other assets, including deferred income taxes		23,299		258		135,690		(2,388)		156,859
Total assets	$	121,878	$	30,613	$	468,181	$	(123,830)	$	496,842
Liabilities:
Insurance liabilities	$	-	$	-	$	271,645	$	-	$	271,645
Long-term debt		19,777		704		8,768		-		29,249
Other liabilities, including intercompany balances(a)		11,869		201		99,777		(6,109)		105,738
Loans from subsidiaries(b)		574		3		35,928		(36,505)		-
Total liabilities		32,220		908		416,118		(42,614)		406,632
Total AIG shareholders’ equity		89,658		29,705		51,511		(81,216)		89,658
Non-redeemable noncontrolling interests		-		-		552		-		552
Total equity		89,658		29,705		52,063		(81,216)		90,210
Total liabilities and equity	$	121,878	$	30,613	$	468,181	$	(123,830)	$	496,842

(a)Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment.

(b) Eliminated in consolidation.

Condensed Consolidating Statements of Income

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended March 31, 2016
Revenues:
Equity in earnings of consolidated subsidiaries*	$	(944)	$	(1,683)	$	-	$	2,627	$	-
Other income		(63)		5		12,038		(201)		11,779
Total revenues		(1,007)		(1,678)		12,038		2,426		11,779
Expenses:
Interest expense		244		14		49		(1)		306
Loss on extinguishment of debt		77		-		6		-		83
Other expenses		191		7		11,605		(199)		11,604
Total expenses		512		21		11,660		(200)		11,993
Income (loss) from continuing operations before income tax
expense (benefit)		(1,519)		(1,699)		378		2,626		(214)
Income tax expense (benefit)		(1,337)		(6)		1,285		-		(58)
Income (loss) from continuing operations		(182)		(1,693)		(907)		2,626		(156)
Loss from discontinued operations, net of income taxes		(1)		-		(46)		-		(47)
Net income (loss)		(183)		(1,693)		(953)		2,626		(203)
Less:
Total net loss attributable to
noncontrolling interests		-		-		(20)		-		(20)
Net income (loss) attributable to AIG	$	(183)	$	(1,693)	$	(933)	$	2,626	$	(183)
Three Months Ended March 31, 2015
Revenues:
Equity in earnings of consolidated subsidiaries*	$	2,757	$	773	$	-	$	(3,530)	$	-
Other income		150		-		15,914		(89)		15,975
Total revenues		2,907		773		15,914		(3,619)		15,975
Expenses:
Interest expense		289		16		65		(30)		340
Loss on extinguishment of debt		61		-		-		7		68
Other expenses		246		(5)		11,609		(59)		11,791
Total expenses		596		11		11,674		(82)		12,199
Income (loss) from continuing operations before income tax
expense (benefit)		2,311		762		4,240		(3,537)		3,776
Income tax expense (benefit)		(157)		(43)		1,501		(1)		1,300
Income (loss) from continuing operations		2,468		805		2,739		(3,536)		2,476
Income from discontinued operations, net of income taxes		-		-		1		-		1
Net income (loss)		2,468		805		2,740		(3,536)		2,477
Less:
Total net loss attributable to
noncontrolling interests		-		-		9		-		9
Net income (loss) attributable to AIG	$	2,468	$	805	$	2,731	$	(3,536)	$	2,468

* Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended March 31, 2016
Net income (loss)	$	(183)	$	(1,693)	$	(953)	$	2,626	$	(203)
Other comprehensive income (loss)		2,988		(474)		55,554		(55,080)		2,988
Comprehensive income (loss)		2,805		(2,167)		54,601		(52,454)		2,785
Total comprehensive loss attributable to noncontrolling interests		-		-		(20)		-		(20)
Comprehensive income (loss) attributable to AIG	$	2,805	$	(2,167)	$	54,621	$	(52,454)	$	2,805
Three Months Ended March 31, 2015
Net income (loss)	$	2,468	$	805	$	2,740	$	(3,536)	$	2,477
Other comprehensive income (loss)		38		908		(1,061)		152		37
Comprehensive income (loss)		2,506		1,713		1,679		(3,384)		2,514
Total comprehensive income attributable to noncontrolling interests		-		-		6		-		6
Comprehensive income (loss) attributable to AIG	$	2,506	$	1,713	$	1,673	$	(3,384)	$	2,508

Condensed Consolidating Statements of Cash Flows

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries*		Eliminations*		AIG
Three Months Ended March 31, 2016
Net cash (used in) provided by operating activities	$	1,483	$	97	$	(1,481)	$	(1,067)	$	(968)
Cash flows from investing activities:
Sales of investments		392		-		17,004		(1,154)		16,242
Purchase of investments		(322)		-		(16,634)		1,154		(15,802)
Loans to subsidiaries - net		880		-		180		(1,060)		-
Contributions from (to) subsidiaries - net		644		-		-		(644)		-
Net change in restricted cash		-		-		(59)		-		(59)
Net change in short-term investments		(1,022)		-		445		-		(577)
Other, net		(127)		-		708		-		581
Net cash (used in) provided by investing activities		445		-		1,644		(1,704)		385
Cash flows from financing activities:
Issuance of long-term debt		2,986		-		303		-		3,289
Repayments of long-term debt		(710)		(26)		(222)		-		(958)
Purchase of common stock		(3,486)		-		-		-		(3,486)
Intercompany loans - net		(180)		(3)		(877)		1,060		-
Cash dividends paid		(363)		(177)		(890)		1,067		(363)
Other, net		(173)		-		1,500		644		1,971
Net cash (used in) provided by financing activities		(1,926)		(206)		(186)		2,771		453
Effect of exchange rate changes on cash		-		-		-		-		-
Change in cash		2		(109)		(23)		-		(130)
Cash at beginning of year		34		116		1,479		-		1,629
Cash at end of period	$	36	$	7	$	1,456	$	-	$	1,499
Three Months Ended March 31, 2015
Net cash (used in) provided by operating activities	$	1,111	$	284	$	2,257	$	(3,264)	$	388
Cash flows from investing activities:
Sales of investments		505		-		15,995		(1,271)		15,229
Purchase of investments		(897)		-		(13,483)		1,271		(13,109)
Loans to subsidiaries - net		1,091		-		395		(1,486)		-
Contributions from (to) subsidiaries - net		(70)		-		-		70		-
Net change in restricted cash		-		-		(47)		-		(47)
Net change in short-term investments		(1,035)		-		231		-		(804)
Other, net		-		-		(955)		-		(955)
Net cash (used in) provided by investing activities		(406)		-		2,136		(1,416)		314
Cash flows from financing activities:
Issuance of long-term debt		2,342		-		243		-		2,585
Repayments of long-term debt		(977)		-		(916)		-		(1,893)
Purchase of common stock		(1,398)		-		-		-		(1,398)
Intercompany loans - net		(394)		-		(1,092)		1,486		-
Cash dividends paid		(170)		(367)		(2,897)		3,264		(170)
Other, net		(69)		-		411		(70)		272
Net cash (used in) provided by financing activities		(666)		(367)		(4,251)		4,680		(604)
Effect of exchange rate changes on cash		-		-		(33)		-		(33)
Change in cash		39		(83)		109		-		65
Cash at beginning of year		26		91		1,641		-		1,758
Cash at end of period	$	65	$	8	$	1,750	$	-	$	1,823

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

		American
		International						Reclassifications
		Group, Inc.				Other		and		Consolidated
(in millions)		(As Guarantor)		AIGLH		Subsidiaries*		Eliminations*		AIG
Cash (paid) received during the 2016 period for:
Interest:
Third party	$	(285)	$	(24)	$	(53)	$	-	$	(362)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(1)	$	-	$	(38)	$	-	$	(39)
Intercompany		182		-		(182)		-		-
Cash (paid) received during the 2015 period for:
Interest:
Third party	$	(240)	$	(27)	$	(40)	$	-	$	(307)
Intercompany		-		-		-		-		-
Taxes:
Income tax authorities	$	(1)	$	-	$	(139)	$	-	$	(140)
Intercompany		291		-		(291)		-		-

American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities:

Three Months Ended March 31,
(in millions)		2016		2015
Intercompany non-cash financing and investing activities:
Capital contributions	$	2,904	$	111
Dividends received in the form of securities		697		140