INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

9 Months Ended

Sep. 30, 2012

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

Condensed Consolidating Balance Sheet

(in millions)	American International Group, Inc. (As Guarantor)		SAFG, Inc.		Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG
September 30, 2012
Assets:
Short-term investments	$	9,056	$	–	$	15,611		$	(2,110	)	$	22,557
Other investments(a)		12,418		–		374,641			499			387,558
Total investments		21,474		–		390,252			(1,611	)		410,115
Cash		125		–		1,483			–			1,608
Loans to subsidiaries(b)		38,402		–		(33,862	)		(4,540	)		–
Debt issuance costs		189		–		279			–			468
Investment in consolidated subsidiaries(b)		70,499		43,235		(31,570	)		(82,164	)		–
Other assets, including current and deferred income taxes		25,947		257		120,087			(7,759	)		138,532
Total assets	$	156,636	$	43,492	$	446,669		$	(96,074	)	$	550,723
Liabilities:
Insurance liabilities	$	–	$	–	$	281,731		$	(288	)	$	281,443
Other long-term debt		36,626		1,638		34,982			502			73,748
Other liabilities, including intercompany balances(a)(c)		17,256		837		84,586			(9,720	)		92,959
Loans from subsidiaries(b)		1,088		851		2,727			(4,666	)		–
Total liabilities		54,970		3,326		404,026			(14,172	)		448,150
Other		–		–		51			108			159
Redeemable noncontrolling interests		–		–		51			108			159
Total AIG shareholders' equity		101,666		40,166		42,228			(82,394	)		101,666
Non-redeemable noncontrolling interests		–		–		364			384			748
Total equity		101,666		40,166		42,592			(82,010	)		102,414
Total liabilities and equity	$	156,636	$	43,492	$	446,669		$	(96,074	)	$	550,723
December 31, 2011
Assets:
Short-term investments	$	12,868	$	–	$	14,110		$	(4,406	)	$	22,572
Other investments(a)		6,599		–		481,525			(100,258	)		387,866
Total investments		19,467		–		495,635			(104,664	)		410,438
Cash		176		13		1,285			–			1,474
Loans to subsidiaries(b)		39,971		–		(39,971	)		–			–
Debt issuance costs		196		–		297			–			493
Investment in consolidated subsidiaries(b)(d)		80,990		32,361		(11,463	)		(101,888	)		–
Other assets, including current and deferred income taxes		24,595		2,704		117,231			(4,575	)		139,955
Total assets	$	165,395	$	35,078	$	563,014		$	(211,127	)	$	552,360
Liabilities:
Insurance liabilities	$	–	$	–	$	282,790		$	(274	)	$	282,516
Other long-term debt		35,906		1,638		138,240			(100,531	)		75,253
Other liabilities, including intercompany balances(a)(c)(d)		15,635		2,402		75,132			(9,494	)		83,675
Loans from subsidiaries(b)		12,316		249		(12,565	)		–			–
Total liabilities		63,857		4,289		483,597			(110,299	)		441,444
Redeemable noncontrolling interests (see Note 11):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		–		–		–			8,427			8,427
Other		–		–		29			67			96
Total redeemable noncontrolling interests		–		–		29			8,494			8,523
Total AIG shareholders' equity		101,538		30,789		78,996			(109,785	)		101,538
Non-redeemable noncontrolling interests		–		–		392			463			855
Total equity		101,538		30,789		79,388			(109,322	)		102,393
Total liabilities and equity	$	165,395	$	35,078	$	563,014		$	(211,127	)	$	552,360

(a)       Includes intercompany derivative asset positions, which are reported at fair value before credit valuation adjustment.

(b)       Eliminated in consolidation.

(c)       For September 30, 2012 and December 31, 2011, includes intercompany tax payable of $10 billion and $9.8 billion, respectively, and intercompany derivative liabilities of $875 million and $901 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable of $205 million and $128 million, respectively, for SAFG, Inc.

(d)       Prior period amounts have been conformed to the current period presentation.

Condensed Consolidating Statement of Income (Loss)

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG
Three Months Ended September 30, 2012
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	1,811		$	1,612		$	–		$	(3,423	)	$	–
Change in fair value of ML III		330			–			–			–			330
Other income(b)		373			–			17,006			(61	)		17,318
Total revenues		2,514			1,612			17,006			(3,484	)		17,648
Expenses:
Other interest expense(c)		550			70			428			(60	)		988
Other expenses		173			–			13,892			–			14,065
Total expenses		723			70			14,320			(60	)		15,053
Income (loss) from continuing operations before income tax expense (benefit)		1,791			1,542			2,686			(3,424	)		2,595
Income tax expense (benefit)		(65	)		117			683			–			735
Income (loss) from continuing operations		1,856			1,425			2,003			(3,424	)		1,860
Income from discontinued operations		–			–			1			–			1
Net income (loss)		1,856			1,425			2,004			(3,424	)		1,861
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred
interests		–			–			–			–			–
Other		–			–			5			–			5
Total net income attributable to noncontrolling interests		–			–			5			–			5
Net income (loss) attributable to AIG	$	1,856		$	1,425		$	1,999		$	(3,424	)	$	1,856
Three Months Ended September 30, 2011
Revenues:
Equity in earnings of consolidated subsidiaries(a)(d)	$	(2,604	)	$	(383	)	$	–		$	2,987		$	–
Change in fair value of ML III		(484	)		–			(447	)		–			(931	)
Other income(b)(d)		406			831			12,667			(254	)		13,650
Total revenues		(2,682	)		448			12,220			2,733			12,719
Expenses:
Other interest expense(c)		712			64			448			(254	)		970
Other expenses		230			–			15,789			–			16,019
Total expenses		942			64			16,237			(254	)		16,989
Income (loss) from continuing operations before income tax expense (benefit)		(3,624	)		384			(4,017	)		2,987			(4,270	)
Income tax expense (benefit)		161			(17	)		(809	)		–			(665	)
Income (loss) from continuing operations		(3,785	)		401			(3,208	)		2,987			(3,605	)
Loss from discontinued operations		(205	)		–			(16	)		–			(221	)
Net income (loss)		(3,990	)		401			(3,224	)		2,987			(3,826	)
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			145			145
Other		–			–			19			–			19
Total income from continuing operations attributable to noncontrolling interests		–			–			19			145			164
Income (loss) from discontinued operations attributable to noncontrolling interests		–			–			–			–			–
Total net income attributable to noncontrolling interests		–			–			19			145			164
Net income (loss) attributable to AIG	$	(3,990	)	$	401		$	(3,243	)	$	2,842		$	(3,990	)

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG
Nine Months Ended September 30, 2012
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	5,757		$	1,716		$	–		$	(7,473	)	$	–
Change in fair value of ML III		2,287			–			601			–			2,888
Other income(b)		1,074			49			49,533			(330	)		50,326
Total revenues		9,118			1,765			50,134			(7,803	)		53,214
Expenses:
Other interest expense(c)		1,719			136			1,368			(328	)		2,895
Net loss on extinguishment of debt		9			–			23			–			32
Other expenses		1,278			–			40,079			–			41,357
Total expenses		3,006			136			41,470			(328	)		44,284
Income (loss) from continuing operations before income tax expense (benefit)		6,112			1,629			8,664			(7,475	)		8,930
Income tax expense (benefit)		(1,284	)		580			1,994			–			1,290
Income (loss) from continuing operations		7,396			1,049			6,670			(7,475	)		7,640
Income from discontinued operations		–			–			9			–			9
Net income (loss)		7,396			1,049			6,679			(7,475	)		7,649
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			208			208
Other		–			–			45			–			45
Total net income attributable to noncontrolling interests		–			–			45			208			253
Net income (loss) attributable to AIG	$	7,396		$	1,049		$	6,634		$	(7,683	)	$	7,396
Nine Months Ended September 30, 2011
Revenues:
Equity in earnings of consolidated subsidiaries(a)(d)	$	3,574		$	127		$	–		$	(3,701	)	$	–
Change in fair value of ML III		(831	)		–			(23	)		–			(854	)
Other income(b)(d)		639			1,297			46,596			(840	)		47,692
Total revenues		3,382			1,424			46,573			(4,541	)		46,838
Expenses:
Interest expense on FRBNY Credit Facility		72			–			–			(2	)		70
Other interest expense(c)		2,194			223			1,408			(840	)		2,985
Net loss on extinguishment of debt		3,331			–			61			–			3,392
Other expenses		502			–			43,675			–			44,177
Total expenses		6,099			223			45,144			(842	)		50,624
Income (loss) from continuing operations before income tax benefit		(2,717	)		1,201			1,429			(3,699	)		(3,786	)
Income tax benefit		(926	)		(13	)		(248	)		–			(1,187	)
Income (loss) from continuing operations		(1,791	)		1,214			1,677			(3,699	)		(2,599	)
Income (loss) from discontinued operations		934			–			1,395			(2	)		2,327
Net income (loss)		(857	)		1,214			3,072			(3,701	)		(272	)
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			538			538
Other		–			–			28			–			28
Total income from continuing operations attributable to
noncontrolling interests		–			–			28			538			566
Income from discontinued operations attributable to
noncontrolling interests		–			–			19			–			19
Total net income attributable to noncontrolling interests		–			–			47			538			585
Net income (loss) attributable to AIG	$	(857	)	$	1,214		$	3,025		$	(4,239	)	$	(857	)

(a)       Eliminated in consolidation.

(b)       Includes intercompany income of $59 million and $77 million for the three-month periods ended September 30, 2012 and 2011, respectively, and $191 million and $288 million for the nine-month periods ended September 30, 2012 and 2011, respectively, for American International Group, Inc. (As Guarantor).

(c)       Includes intercompany interest expense of $4 million and $177 million for the three-month periods ended September 30, 2012 and 2011, respectively, and $140 million and $552 million for the nine-month periods ended September 30, 2012 and 2011, respectively, for American International Group, Inc. (As Guarantor).

(d)       Prior period amounts have been conformed to the current period presentation.

Condensed Consolidating Statement of Comprehensive Income (Loss)

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.		Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG
Three Months Ended September 30, 2012
Net income (loss)	$	1,856		$	1,425	$	2,004		$	(3,424	)	$	1,861
Other comprehensive income (loss)		3,096			1,995		3,096			(5,088	)		3,099
Comprehensive income (loss)		4,952			3,420		5,100			(8,512	)		4,960
Total comprehensive income attributable to noncontrolling interests		–			–		8			–			8
Comprehensive income (loss) attributable to AIG	$	4,952		$	3,420	$	5,092		$	(8,512	)	$	4,952
Three Months Ended September 30, 2011
Net income (loss)	$	(3,990	)	$	401	$	(3,224	)	$	2,987		$	(3,826	)
Other comprehensive income (loss)		(3,064	)		432		(2,180	)		1,642			(3,170	)
Comprehensive income (loss)		(7,054	)		833		(5,404	)		4,629			(6,996	)
Total comprehensive income (loss) attributable to noncontrolling interests		–			–		(87	)		145			58
Comprehensive income (loss) attributable to AIG	$	(7,054	)	$	833	$	(5,317	)	$	4,484		$	(7,054	)
Nine Months Ended September 30, 2012
Net income (loss)	$	7,396		$	1,049	$	6,679		$	(7,475	)	$	7,649
Other comprehensive income (loss)		5,734			3,754		6,791			(10,545	)		5,734
Comprehensive income (loss)		13,130			4,803		13,470			(18,020	)		13,383
Total comprehensive income attributable to noncontrolling interests		–			–		45			208			253
Comprehensive income (loss) attributable to AIG	$	13,130		$	4,803	$	13,425		$	(18,228	)	$	13,130
Nine Months Ended September 30, 2011
Net income (loss)	$	(857	)	$	1,214	$	3,072		$	(3,701	)	$	(272	)
Other comprehensive income (loss)		(1,683	)		1,537		(1,995	)		305			(1,836	)
Comprehensive income (loss)		(2,540	)		2,751		1,077			(3,396	)		(2,108	)
Total comprehensive income (loss) attributable to noncontrolling interests		–			–		(106	)		538			432
Comprehensive income (loss) attributable to AIG	$	(2,540	)	$	2,751	$	1,183		$	(3,934	)	$	(2,540	)

Condensed Consolidating Statement of Cash Flows

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries and Eliminations			Consolidated AIG
Nine Months Ended September 30, 2012
Net cash (used in) provided by operating activities	$	1,275		$	2,243		$	(679	)	$	2,839
Cash flows from investing activities:
Sales of investments		9,806			–			65,405			75,211
Purchase of investments		(4,339	)		–			(53,355	)		(57,694	)
Loans to subsidiaries – net		1,730			–			(1,730	)		–
Contributions to subsidiaries – net		954			–			(954	)		–
Net change in restricted cash		(381	)		–			1,076			695
Net change in short-term investments		4,881			–			(3,740	)		1,141
Net change in derivative assets and liabilities		262			–			(380	)		(118	)
Other, net		(10	)		–			(67	)		(77	)
Net cash provided by investing activities		12,903			–			6,255			19,158
Cash flows from financing activities:
Issuance of long-term debt		3,754			–			4,231			7,985
Repayments of long-term debt		(2,995	)		–			(6,852	)		(9,847	)
Purchase of Common Stock		(13,000	)		–			–			(13,000	)
Intercompany loans – net		(1,944	)		(2,256	)		4,200			–
Other, net		(44	)		–			(6,948	)		(6,992	)
Net cash (used in) financing activities		(14,229	)		(2,256	)		(5,369	)		(21,854	)
Effect of exchange rate changes on cash		–			–			(9	)		(9	)
Change in cash		(51	)		(13	)		198			134
Cash at beginning of period		176			13			1,285			1,474
Cash at end of period	$	125		$	–		$	1,483		$	1,608
Nine Months Ended September 30, 2011
Net cash (used in) provided by operating activities – continuing operations	$	(4,473	)	$	1,033		$	(1,131	)	$	(4,571	)
Net cash provided by operating activities – discontinued operations		–			–			3,370			3,370
Net cash (used in) provided by operating activities		(4,473	)		1,033			2,239			(1,201	)
Cash flows from investing activities:
Sales of investments		2,425			–			63,818			66,243
Sales of divested businesses, net		1,075			–			(488	)		587
Purchase of investments		(8	)		–			(77,636	)		(77,644	)
Loans to subsidiaries – net		4,031			–			(4,031	)		–
Contributions to subsidiaries – net*		(16,878	)		–			16,878			–
Net change in restricted cash		2,001			–			24,407			26,408
Net change in short-term investments		(9,892	)		–			25,302			15,410
Net change in derivative assets and liabilities		1,223			–			(241	)		982
Other, net*		(58	)		–			(260	)		(318	)
Net cash (used in) provided by investing activities – continuing operations		(16,081	)		–			47,749			31,668
Net cash provided by investing activities – discontinued operations		–			–			4,478			4,478
Net cash (used in) provided by investing activities		(16,081	)		–			52,227			36,146
Cash flows from financing activities:
FRBNY credit facility repayments		(14,622	)		–			–			(14,622	)
Issuance of long-term debt		2,135			–			4,162			6,297
Repayments of long-term debt		(4,450	)		–			(10,494	)		(14,944	)
Proceeds from drawdown on the Department of the Treasury Commitment*		20,292			–			–			20,292
Settlement of equity unit stock purchase contracts		5,055			–			–			5,055
Intercompany loans – net		12,408			(1,033	)		(11,375	)		–
Other, net*		(148	)		–			(35,432	)		(35,580	)
Net cash (used in) provided by financing activities – continuing operations		20,670			(1,033	)		(53,139	)		(33,502	)
Net cash (used in) financing activities – discontinued operations		–			–			(1,942	)		(1,942	)
Net cash (used in) provided by financing activities		20,670			(1,033	)		(55,081	)		(35,444	)
Effect of exchange rate changes on cash		–			–			37			37
Change in cash		116			–			(578	)		(462	)
Cash at beginning of period		49			–			1,509			1,558
Change in cash of businesses held for sale		–			–			446			446
Cash at end of period	$	165		$	–		$	1,377		$	1,542

*         Includes activities related to the Recapitalization.

Supplementary disclosure of cash flow information

	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries and Eliminations			Consolidated AIG
Cash (paid) received during the nine months ended September 30, 2012 for:
Interest:
Third party	$	(1,535	)	$	(109	)	$	(1,412	)	$	(3,056	)
Intercompany		(129	)		(49	)		178			–
Taxes:
Income tax authorities	$	(11	)	$	–		$	(392	)	$	(403	)
Intercompany		(884	)		(41	)		925			–
Cash (paid) received during the nine months ended September 30, 2011 for:
Interest:
Third party*	$	(6,337	)	$	(96	)	$	(1,519	)	$	(7,952	)
Intercompany		(258	)		(149	)		407			–
Taxes:
Income tax authorities	$	13		$	–		$	(656	)	$	(643	)
Intercompany		(793	)		–			793			–

*         Includes payment of FRBNY Credit Facility accrued compounded interest of $4.7 billion in the first quarter of 2011.

Supplementary disclosure of non-cash activities

Nine Months Ended September 30, (in millions)	2012		2011
Intercompany non-cash financing and investing activities:
Capital contributions in the form of bond available for sale securities	$	959	$	–
Return of capital and dividend received
in the form of cancellation of intercompany loan		9,303		–
in the form of bond trading securities		3,320		3,668
Intercompany loan receivable offset by intercompany payable		–		18,284
Other capital contributions – net		381		412