BUSINESS COMBINATION (Tables)

9 Months Ended

Sep. 30, 2018

BUSINESS COMBINATION

Identifiable Assets Acquired and Liabilities Assumed

(in millions)		July 18, 2018
Identifiable net assets:
Investments	$	6,613
Cash		330
Premiums and other receivables		2,130
Reinsurance assets		1,692
Value of business acquired*		298
Deferred income taxes		63
Other assets, including restricted cash of $93		1,008
Liability for unpaid claims and claims adjustment expense		(4,138)
Unearned premiums		(2,083)
Long-term debt		(1,106)
Other liabilities		(913)
Preference shares		(416)
Total identifiable net assets acquired		3,478
Cash consideration paid		5,475
Goodwill recognized from acquisition	$	1,997

*Reported in Deferred policy acquisition costs in the Condensed Consolidated Balance Sheet.

Pro Forma Income Statement Information

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in millions)		2018		2017*		2018*		2017*
Total revenues	$	11,486	$	12,418	$	36,028	$	38,752
Net income (loss)		(1,259)		(1,958)		576		571
Net income (loss) attributable to AIG		(1,259)		(1,984)		571		531
Income (loss) per common share attributable to AIG:
Basic:
Net income (loss) attributable to AIG		(1.41)		(2.18)		0.63		0.57
Diluted:
Net income (loss) attributable to AIG		(1.41)		(2.18)		0.62		0.55

* Pro forma adjustments were made to Validus external reporting results prior to the acquisition date for the deconsolidation of certain asset management entities consistent with AIG’s post acquisition accounting, which had no impact on Net income attributable to Validus.

Identified Intangible Assets Acquired

The following table presents details of the identified intangible assets acquired:

			Estimated Weighted
(in millions, except years)		Fair Value	Average Useful Life
Definite lived intangibles
Value of distribution network acquired(a)(b)	$	444	15 years
Value of business acquired(c)		298	2 years
Indefinite lived intangibles(a)
Syndicate capacity		193
Other		75
Total	$	1,010

(a) Reported in Other assets in the Condensed Consolidated Balance Sheet.

(b) Amortization is reported in General operating and other expenses in the Condensed Consolidated Statement of Income (Loss).

(c) Reported in Deferred policy acquisition costs in the Condensed Consolidated Balance Sheet and Amortization of deferred policy acquisition costs in the Condensed Consolidated Statement of Income (Loss).