DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2011

DEFERRED POLICY ACQUISITION COSTS

Rollforward of deferred policy acquisition costs

Years Ended December 31, (in millions)		2011			2010			2009
Chartis:
	Balance, beginning of year	$	2,099		$	1,919		$	2,420
	Dispositions(a)		-			-			(418	)
	Acquisition costs deferred		4,548			4,058			4,158
	Amortization expense		(4,324	)		(3,894	)		(4,352	)
	Increase due to foreign exchange and other		52			16			111
	Balance, end of year	$	2,375		$	2,099		$	1,919
SunAmerica:
	Balance, beginning of year	$	7,258		$	8,462		$	11,294
	Dispositions(b)		-			-			(479	)
	Acquisition costs deferred		869			701			716
	Amortization expense		(1,142	)		(1,086	)		(1,287	)
	Change in net unrealized losses on securities(c)		(486	)		(817	)		(735	)
	Increase (decrease) due to foreign exchange		3			1			(10	)
	Other(d)		-			(3	)		(1,037	)
Balance, end of year(e)		$	6,502		$	7,258		$	8,462
Other operations:
	Balance, beginning of year	$	32		$	17,505		$	17,304
	Dispositions(b)		-			(16,117	)		-
	Acquisition costs deferred		14			1,218			1,286
	Amortization expense		(20	)		(841	)		(1,031	)
	Change in net unrealized gains (losses) on securities(c)		-			28			(37	)
	Increase due to foreign exchange		1			314			687
	Activity of discontinued operations		-			59			446
	Reclassified to Assets held for sale		-			(1,960	)		(1,090	)
	Other(d)		(2	)		(174	)		(60	)
Subtotal		$	25		$	32		$	17,505
Consolidation and eliminations			35			42			49
Balance, end of year(e)		$	60		$	74		$	17,554
Total deferred policy acquisition costs		$	8,937		$	9,431		$	27,935

(a)

In 2009, Transatlantic was deconsolidated and 21st Century and HSB were sold.

(b)

In 2010, includes AIA which was deconsolidated and ALICO which was sold. In 2009, AIG Life Canada was sold.

(c)

In 2009, includes an increase of $1.0 billion and $2 million related to the cumulative effect of adopting a new other-than-temporary impairments accounting standard for SunAmerica and Divested businesses, respectively.

(d)

In 2009, includes a decrease of $1.0 billion and $2 million related to the cumulative effect of adopting a new other-than-temporary impairments accounting standard for SunAmerica and Divested businesses, respectively.

(e)

Includes $(1.4) billion, $(758) million and $176 million for SunAmerica at December 31, 2011, 2010 and 2009, respectively. For the year ended December 31, 2010, there were no net unrealized gains and losses on available for sale securities associated with divested businesses.