Balance Sheet – Parent Company Only




December 31, (in millions)	2012			2011

Assets:
Short-term investments	$	14,764		$	12,868
Other investments		3,902			6,599

Total investments		18,666			19,467
Cash		81			176
Loans to subsidiaries^*		35,064			39,971
Due from affiliates – net^*		422			303
Current and deferred income taxes		20,601			22,944
Investments in consolidated subsidiaries^*		70,781			80,990
Other assets		2,130			1,772

Total assets	$	147,745		$	165,623

Liabilities:
Intercompany tax payable^*	$	6,078		$	9,801
Notes and bonds payable		14,334			12,725
Junior subordinated debt		9,416			9,327
MIP notes payable		9,287			10,138
Series AIGFP matched notes and bonds payable		3,329			3,560
Loans and mortgages payable		–			156
Loans from subsidiaries^*		1,002			12,316
Other liabilities (includes intercompany derivative liabilities of $602 in 2012 and $901 in 2011)		6,297			6,062

Total liabilities		49,743			64,085

AIG Shareholders' equity:
Common stock		4,766			4,766
Treasury stock		(13,924	)		(942	)
Additional paid-in capital		80,410			80,459
Retained earnings		14,176			10,774
Accumulated other comprehensive income		12,574			6,481

Total AIG shareholders' equity		98,002			101,538

Total liabilities and equity	$	147,745		$	165,623

* Eliminated in consolidation.

See Accompanying Notes to Condensed Financial Information of Registrant, which include a summary of revisions to prior year balances in connection with a change in accounting principle.

Statement of Income (Loss) – Parent Company Only




Years Ended December 31, (in millions)	2012			2011			2010

Revenues:
Equity in earnings of consolidated subsidiaries^*	$	1,970		$	6,260		$	21,385
Interest income		358			596			3,249
Change in fair value of ML III		2,287			(723	)		–
Net realized capital gains (losses)		747			213			(209	)
Other income		806			279			6
Expenses:
Accrued and compounding interest		–			(24	)		(636	)
Amortization of prepaid commitment asset		–			(48	)		(3,471	)

Total interest expense on FRBNY Credit Facility		–			(72	)		(4,107	)
Other interest expense		(2,257	)		(2,845	)		(2,279	)
Restructuring expense and related asset impairment and other expenses		(47	)		(36	)		(451	)
Net loss on extinguishment of debt		(9	)		(2,847	)		(104	)
Other expenses		(1,555	)		(831	)		(1,213	)

Income (loss) from continuing operations before income tax expense (benefit)		2,300			(6	)		16,277
Income tax expense (benefit)		(1,137	)		(19,695	)		5,402

Net income		3,437			19,689			10,875
Income (loss) from discontinued operations		1			933			(817	)

Net income attributable to AIG Parent Company	$	3,438		$	20,622		$	10,058

* Eliminated in consolidation.

See Accompanying Notes to Condensed Financial Information of Registrant, which include a summary of revisions to prior year balances in connection with a change in accounting principle.

Statement of Comprehensive Income (Loss) – Parent Company Only




Years Ended December 31, (in millions)	2012		2011			2010

Net income (loss)	$	3,438	$	20,622		$	10,058
Other comprehensive income (loss)		6,093		(2,483	)		2,782

Total comprehensive income attributable to AIG	$	9,531	$	18,139		$	12,840

See accompanying Notes to Condensed Financial Information of Registrant.

Statement of Cash Flows – Parent Company Only




Years Ended December 31, (in millions)	2012			2011			2010

Net cash used in operating activities	$	(825	)	$	(5,600	)	$	(1,942	)

Cash flows from investing activities:
Sales and maturities of investments		16,546			2,224			3,212
Sales of divested businesses		–			1,075			278
Purchase of investments		(4,406	)		(19	)		(55	)
Net change in restricted cash		(377	)		1,945			(183	)
Net change in short-term investments		(2,029	)		(7,130	)		(4,291	)
Contributions to subsidiaries – net		(152	)		(15,973	)		(2,574	)
Payments received on mortgages and other loan receivables		328			341			785
Loans to subsidiaries – net		5,126			3,757			5,703
Other, net		259			1,543			(300	)

Net cash provided by (used in) investing activities		15,295			(12,237	)		2,575

Cash flows from financing activities:
Federal Reserve Bank of New York credit facility borrowings		–			–			19,900
Federal Reserve Bank of New York credit facility repayments		–			(14,622	)		(19,110	)
Issuance of long-term debt		3,754			2,135			1,996
Repayment of long-term debt		(3,238	)		(6,181	)		(3,681	)
Proceeds from drawdown on the Department of the Treasury Commitment		–			20,292			2,199
Issuance of Common Stock		–			5,055			–
Loans from subsidiaries – net		(2,032	)		11,519			(1,777	)
Purchase of Common Stock		(13,000	)		(70	)		–
Other, net		(49	)		(164	)		(168	)

Net cash provided by (used in) financing activities		(14,565	)		17,964			(641	)

Change in cash		(95	)		127			(8	)
Cash at beginning of year		176			49			57

Cash at end of year	$	81		$	176		$	49

Supplementary disclosure of cash flow information:




	Years Ended December 31,
(in millions)	2012		2011		2010

Intercompany non-cash financing and investing activities:
Capital contributions in the form of available for sale securities	$	4,078	$	–	$	–
Capital contributions to subsidiaries through forgiveness of loans		–		–		2,510
Other capital contributions – net		579		523		346
Paydown of FRBNY Credit Facility by subsidiary		–		–		4,068
Investment assets received through reduction of intercompany loan receivable		–		–		468
Exchange of intercompany payable with loan payable		–		–		469
Intercompany loan receivable offset by intercompany payable		–		18,284		1,364
Return of capital and dividend received in the form of cancellation of intercompany loan		9,303		–		–
Return of capital and dividend received in the form of bond trading securities		3,320		3,668		–

See Accompanying Notes to Condensed Financial Information of Registrant.

Notes to Condensed Financial Information of Registrant

American International Group, Inc.'s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant's 2012 Annual Report on Form 10-K for the year ended December 31, 2012 (2012 Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 21, 2013.

On January 1, 2012, the Registrant retrospectively adopted a standard that changed its subsidiaries' method of accounting for costs associated with acquiring or renewing insurance contracts. The standard clarifies how to determine whether the costs incurred in connection with the acquisition of new or renewal insurance contracts qualify as deferred policy acquisition costs. Accordingly, the Registrant revised its financial information and accompanying notes included herein.

The following tables present the Condensed Balance Sheet as of December 31, 2011 and the Condensed Statement of Income (Loss) for the years ended December 31, 2011 and 2010, showing the amounts previously reported, the effect of the change due to the adoption of the standard and the adjusted amounts that are reflected in the Registrant's condensed financial information:

December 31, 2011 (in millions)	As Previously Reported		Effect of Change			As Currently Reported



Assets:
Investments in consolidated subsidiaries	$	84,403	$	(3,413)		$	80,990

Total assets		169,036		(3,413	)		165,623

AIG shareholders' equity:
Retained earnings		14,332		(3,558	)		10,774
Accumulated other comprehensive income		6,336		145			6,481

Total AIG shareholders' equity	$	104,951	$	(3,413	)	$	101,538

Year Ended December 31, 2011 (dollars in millions)	As Previously Reported			Effect of Change			As Currently Reported



Statement of Operations:
Equity in earnings of consolidated subsidiaries	$	5,222		$	1,038		$	6,260

Income (loss) from continuing operations before income tax benefit		(1,044	)		1,038			(6	)

Income tax benefit		(17,909	)		(1,786	)		(19,695	)

Net income		16,865			2,824			19,689

Net income attributable to AIG Parent Company	$	17,798		$	2,824		$	20,622

Year Ended December 31, 2010 (dollars in millions)	As Previously Reported			Effect of Change			As Currently Reported



Statement of Operations:
Equity in earnings of consolidated subsidiaries	$	18,040		$	3,345		$	21,385

Income from continuing operations before income tax benefit		12,932			3,345			16,277

Income tax expense		5,144			258			5,402

Net income		7,788			3,087			10,875

Loss from discontinued operations		(2	)		(815	)		(817	)

Net income attributable to AIG Parent Company	$	7,786		$	2,272		$	10,058

The Registrant adopted this standard on January 1, 2012 and included the Condensed Consolidating Statement of Comprehensive Income (Loss).

The Registrant includes in its statement of income (loss) dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

On December 1, 2009, the Registrant and the Federal Reserve Bank of New York (FRBNY) completed two transactions that reduced the outstanding balance and the maximum amount of credit available under the FRBNY Credit Facility by $25 billion. In connection with one of those transactions, the Registrant assigned $16 billion of its obligation under the FRBNY Credit Agreement to a subsidiary. The Registrant subsequently settled its obligation to the subsidiary with a $15.5 billion non-cash dividend from the subsidiary. The difference was recognized over the remaining term of the FRBNY Credit Agreement as a reduction to interest expense. The remaining difference was derecognized by AIG through earnings due to the repayment in January 2011 of all amounts owed under, and the termination of, the FRBNY Credit Facility.

Certain prior period amounts have been reclassified to conform to the current period presentation.

The five-year debt maturity schedule is incorporated by reference from Note 15 to Consolidated Financial Statements.

The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due to Affiliates in the accompanying Condensed Balance Sheets.

Income taxes in the accompanying Condensed Balance Sheets are comprised of the Registrant's current and deferred tax assets, the consolidated group's current income tax receivable, deferred taxes related to tax attribute carryforwards of AIG's U.S. consolidated income tax group and a valuation allowance to reduce the consolidated deferred tax asset to an amount more likely than not to be realized. See Note 24 to the Consolidated Financial Statements for additional information.

The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards and valuation allowance are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries.