DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2012

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

13. DISCONTINUED OPERATIONS

    The results of operations for the following sales are presented as discontinued operations through the date of disposition in the 2011 Consolidated Statement of Operations:

    See Note 9(D) herein for a discussion of guarantees and indemnifications associated with sales of businesses.

• •

  AIG Star and AIG Edison Sale — On September 30, 2010, AIG entered into a definitive agreement with Prudential Financial, Inc. for the sale of its Japan-based insurance subsidiaries, AIG Star and AIG Edison, for total consideration of $4.8 billion, including the assumption of certain outstanding debt totaling $0.6 billion owed by AIG Star and AIG Edison. The transaction closed on February 1, 2011 and AIG recognized a pre-tax gain of $3.5 billion on the sale that is reflected in Income (loss) from discontinued operations in the Consolidated Statement of Operations.

  •

  Nan Shan Sale — On January 12, 2011, AIG entered into an agreement to sell its 97.57 percent interest in Nan Shan Life Insurance Company, Ltd. to a Taiwan-based consortium. For the three months ended March 31, 2011, AIG recorded a pre-tax loss of $305 million.

The following table summarizes income (loss) from discontinued operations:

Three Months Ended March 31, (in millions)	2011
Revenues:
Premiums	$	2,549
Net investment income		712
Net realized capital gains (losses)		369
Other income		5
Total revenues		3,635
Benefits, claims and expenses		3,095
Interest expense allocation		2
Income (loss) from discontinued operations		538
Gain (loss) on sales		3,028
Income (loss) from discontinued operations, before tax expense (benefit)		3,566
Income tax expense (benefit)		981
Income (loss) from discontinued operations, net of income tax	$	2,585