TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2012

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE

Rollforward of common stock outstanding

	Preferred Stock
												Common Stock Issued		Treasury Stock			Outstanding Shares
	AIG Series E			AIG Series F			AIG Series C			AIG Series G
Three Months Ended March 31, 2012
Shares, beginning of year		-			-			-			-		1,906,568,099		(9,746,617	)		1,896,821,482
Issuances		-			-			-			-		46,453		27,654			74,107
Shares repurchased		-			-			-			-		-		(103,448,276	)		(103,448,276	)
Shares, end of period		-			-			-			-		1,906,614,552		(113,167,239	)		1,793,447,313
Three Months Ended March 31, 2011
Shares, beginning of year		400,000			300,000			100,000			-		147,124,067		(6,660,908	)		140,463,159
Issuances		-			-			-			20,000		1,218,766		56			1,218,822
Shares exchanged*		(400,000	)		(300,000	)		(100,000	)		-		1,655,037,962		-			1,655,037,962
Shares, end of period		-			-			-			20,000		1,803,380,795		(6,660,852	)		1,796,719,943

*

See Note 1 to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K for further discussion of shares exchanged in connection with the Recapitalization.

Accumulated Other Comprehensive Income

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken			Unrealized Appreciation (Depreciation) of All Other Investments			Foreign Currency Translation Adjustments			Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities			Change in Retirement Plan Liabilities Adjustment			Total
Balance, December 31, 2011, net of tax	$	(736	)	$	7,891		$	(1,028	)	$	(17	)	$	(957	)	$	5,153
Change in unrealized appreciation of investments		1,109			1,602			-			-			-			2,711
Change in deferred acquisition costs adjustment and other		(65	)		(314	)		-			-			-			(379	)
Change in future policy benefits		(41	)		75			-			-			-			34
Change in foreign currency translation adjustments		-			-			87			-			-			87
Change in net derivative gains arising from cash flow hedging activities		-			-			-			4			-			4
Net actuarial gain		-			-			-			-			41			41
Prior service credit		-			-			-			-			(12	)		(12	)
Change attributable to divestitures and deconsolidations		-			-			-			-			-			-
Deferred tax asset (liability)		(390	)		(382	)		4			18			(11	)		(761	)
Total other comprehensive income		613			981			91			22			18			1,725
Noncontrolling interests		-			4			1			-			-			5
Balance, March 31, 2012, net of tax	$	(123	)	$	8,868		$	(938	)	$	5		$	(939	)	$	6,873
Balance, December 31, 2010, net of tax	$	(659	)	$	8,888		$	298		$	(34	)	$	(869	)	$	7,624
Cumulative effect of change in accounting principle		-			283			(364	)		-			-			(81	)
Change in unrealized appreciation of investments		646			(69	)		-			-			-			577
Change in deferred acquisition costs adjustment and other		(87	)		(71	)		-			-			-			(158	)
Change in future policy benefits		-			-			-			-			-			-
Change in foreign currency translation adjustments		-			-			649			-			-			649
Change in net derivative losses arising from cash flow hedging activities		-			-			-			18			-			18
Net actuarial gain		-			-			-			-			3			3
Prior service credit		-			-			-			-			(1	)		(1	)
Change attributable to divestitures and deconsolidations		53			(1,129	)		(1,506	)		-			248			(2,334	)
Deferred tax asset (liability)		(216	)		462			340			(5	)		(115	)		466
Total other comprehensive income (loss)		396			(807	)		(517	)		13			135			(780	)
Acquisition of noncontrolling interest		-			78			84			-			(19	)		143
Noncontrolling interests		3			(3	)		36			-			-			36
Balance, March 31, 2011, net of tax	$	(266	)	$	8,445		$	(535	)	$	(21	)	$	(753	)	$	6,870

Other comprehensive income reclassification adjustments

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken			Unrealized Appreciation (Depreciation) of All Other Investments			Foreign Currency Translation Adjustments			Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities			Change in Retirement Plan Liabilities Adjustment			Total
Three Months Ended March 31, 2012
Unrealized change arising during period	$	1,001		$	2,323		$	87		$	(1	)	$	-		$	3,410
Less: Reclassification adjustments included in net income		(2	)		960			-			(5	)		(29	)		924
Total other comprehensive income, before income tax expense (benefit)		1,003			1,363			87			4			29			2,486
Less: Income tax expense (benefit)		390			382			(4	)		(18	)		11			761
Total other comprehensive income, net of income tax expense (benefit)	$	613		$	981		$	91		$	22		$	18		$	1,725
Three Months Ended March 31, 2011
Unrealized change arising during period	$	542		$	(342	)	$	649		$	-		$	-		$	849
Less: Reclassification adjustments included in net income		(70	)		927			1,506			(18	)		(250	)		2,095
Total other comprehensive income (loss), before income tax expense (benefit)		612			(1,269	)		(857	)		18			250			(1,246	)
Less: Income tax expense (benefit)		216			(462	)		(340	)		5			115			(466	)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	396		$	(807	)	$	(517	)	$	13		$	135		$	(780	)

Rollforward of non-controlling interests

	Redeemable Noncontrolling interests									Non-redeemable Noncontrolling interests
(in millions)	Held by Department of Treasury			Other			Total			Held by FRBNY			Other			Total
Three Months Ended March 31, 2012
Balance, beginning of year	$	8,427		$	96		$	8,523		$	-		$	855		$	855
Repayment to Department of the Treasury		(8,635	)		-			(8,635	)		-			-			-
Net contributions		-			18			18			-			28			28
Consolidation (deconsolidation)		-			(5	)		(5	)		-			-			-
Comprehensive income:
Net income		208			10			218			-			23			23
Accumulated other comprehensive income, net of tax:
Unrealized gains on investments		-			2			2			-			2			2
Foreign currency translation adjustments		-			-			-			-			1			1
Total accumulated other comprehensive income, net of tax		-			2			2			-			3			3
Total comprehensive income		208			12			220			-			26			26
Other		-			-			-			-			(16	)		(16	)
Balance, end of period	$	-		$	121		$	121		$	-		$	893		$	893
Three Months Ended March 31, 2011
Balance, beginning of year	$	-		$	434		$	434		$	26,358		$	1,562		$	27,920
Repurchase of SPV preferred interests in connection with Recapitalization		-			-			-			(26,432	)		-			(26,432	)
Exchange of consideration for preferred stock in connection with Recapitalization		20,292			-			20,292			-			-			-
Repayment to Department of the Treasury		(9,146	)		-			(9,146	)		-			-			-
Net contributions		-			(26	)		(26	)		-			(96	)		(96	)
Consolidation (deconsolidation)		-			(125	)		(125	)		-			(109	)		(109	)
Acquisition of noncontrolling interest		-			-			-			-			(509	)		(509	)
Comprehensive income:
Net income		178			9			187			74			(57	)		17
Accumulated other comprehensive income, net of tax: Unrealized gains on investments		-			(1	)		(1	)		-			1			1
Foreign currency translation adjustments		-			-			-			-			36			36
Total accumulated other comprehensive income (loss), net of tax		-			(1	)		(1	)		-			37			37
Total comprehensive income (loss)		178			8			186			74			(20	)		54
Other		-			(13	)		(13	)		-			(9	)		(9	)
Balance, end of period	$	11,324		$	278		$	11,602		$	-		$	819		$	819

Computation of basic and diluted EPS

Three Months Ended March 31, (dollars in millions, except per share data)	2012		2011
Numerator for EPS:
Income (loss) from continuing operations	$	3,436	$	(1,084	)
Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		208		252
Other		33		(55	)
Total net income (loss) from continuing operations attributable to noncontrolling interests		241		197
Net income (loss) attributable to AIG from continuing operations		3,195		(1,281	)
Income (loss) from discontinued operations	$	13	$	2,585
Net income (loss) from discontinued operations attributable to noncontrolling interests		-		7
Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS		13		2,578
Deemed dividends to AIG Series E and F Preferred Stock		-		(812	)
Net income (loss) attributable to AIG common shareholders from continuing operations, applicable to common stock for EPS	$	3,195	$	(2,093	)
Denominator for EPS:
Weighted average shares outstanding – basic		1,875,972,970		1,557,748,353
Dilutive shares		29,805		-
Weighted average shares outstanding – diluted*		1,876,002,775		1,557,748,353
EPS attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations	$	1.70	$	(1.34	)
Income (loss) from discontinued operations	$	0.01	$	1.65
Diluted:
Income (loss) from continuing operations	$	1.70	$	(1.34	)
Income (loss) from discontinued operations	$	0.01	$	1.65

*

Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans and the warrants issued to the Department of the Treasury in 2009. The number of shares and warrants excluded from diluted shares outstanding were 78 million and 65 million for the three months ended March 31, 2012 and 2011, respectively, because the effect would have been anti-dilutive. Included in the anti-dilutive total for the three months ended March 31, 2012 and 2011 were 75 million and 59 million shares, respectively, representing the weighted average amount of warrants to purchase AIG Common Stock that were issued to shareholders on January 19, 2011.