Exhibit 12

Computation of Ratios of Earnings to Fixed Charges

Years Ended December 31,
(in millions, except ratios)		2003		2002		2001		2000		1999
Income before income taxes, minority interest and cumulative effect of accounting changes		$	13,908	$	8,142	$	8,139	$	10,023	$	9,399
Less – Equity income of less than 50% owned persons			148		132		15		9		22
Add – Dividends from less than 50% owned persons			13		13		3		3		13
			13,773		8,023		8,127		10,017		9,390
Add – Fixed charges			5,861		5,291		5,632		5,072		3,936
Less – Capitalized interest			52		61		71		69		60
Income before income taxes, minority interest, cumulative effect of accounting changes and fixed charges		$	19,582	$	13,253	$	13,688	$	15,020	$	13,266
Fixed charges:
	Interest costs	$	5,687	$	5,123	$	5,475	$	4,935	$	3,806
	Rental expense*		174		168		157		137		130
Total fixed charges		$	5,861	$	5,291	$	5,632	$	5,072	$	3,936
Ratio of earnings to fixed charges			3.34		2.50		2.43		2.96		3.37
Secondary Ratio
Interest credited to GIC and GIA policy and contract holders		$	3,759	$	3,225	$	3,320	$	2,782	$	1,973
Total fixed charges excluding interest credited to GIC and GIA policy and contract holders		$	2,102	$	2,066	$	2,312	$	2,290	$	1,963
Secondary ratio of earnings to fixed charges			7.53		4.85		4.48		5.34		5.75

* The proportion deemed representative of the interest factor.

The secondary ratio is disclosed for the convenience of fixed income investors and the rating agencies that serve them and is more comparable to the ratios disclosed by all issuers of fixed income securities. The secondary ratio removes interest credited to guaranteed investment contract (GIC) policyholders and guaranteed investment agreement (GIA) contractholders. Such expenses are also removed from earnings used in this calculation. GICs and GIAs are entered into by AIG’s insurance subsidiaries, principally Sun America Life Insurance Company and AIG Financial Products Corp. and its subsidiaries, respectively. The proceeds from GICs and GIAs are invested in a diversified portfolio of securities, primarily investment grade bonds. The assets acquired yield rates greater than the rates on the related policyholders obligation or contract, with the intent of earning a profit from the spread.

FORM 10-K : II- 6