TOTAL EQUITY (Tables)

12 Months Ended

Dec. 31, 2012

TOTAL EQUITY

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
Year Ended December 31, 2010
Shares, beginning of year		400,000			300,000			100,000			–			141,732,263		(6,661,356	)		135,070,907
Issuances		–			–			–			–			5,391,804		–			5,391,804
Shares exchanged		–			–			–			–			–		448			448
Shares, end of year		400,000			300,000			100,000			–			147,124,067		(6,660,908	)		140,463,159
Year Ended December 31, 2011
Shares, beginning of year		400,000			300,000			100,000			–			147,124,067		(6,660,908	)		140,463,159
Issuances		–			–			–			20,000			100,799,653		–			100,799,653
Settlement of equity unit stock purchase contracts		–			–			–			–			3,606,417		–			3,606,417
Shares exchanged*		(400,000	)		(300,000	)		(100,000	)		–			1,655,037,962		(11,678	)		1,655,026,284
Shares purchased		–			–			–			–			–		(3,074,031	)		(3,074,031	)
Shares cancelled		–			–			–			(20,000	)		–		–			–
Shares, end of year		–			–			–			–			1,906,568,099		(9,746,617	)		1,896,821,482
Year Ended December 31, 2012
Shares, beginning of year		–			–			–			–			1,906,568,099		(9,746,617	)		1,896,821,482
Issuances		–			–			–			–			43,581		685,727			729,308
Shares purchased		–			–			–			–			–		(421,228,855	)		(421,228,855	)
Shares, end of year		–			–			–			–			1,906,611,680		(430,289,745	)		1,476,321,935

Consolidated balance sheet line items affected by the recapitalization

	Effect of Recapitalization
Increase (Decrease) (in millions)	Repayment and Termination of FRBNY Credit Facility(a)			Repurchase and Exchange of SPV Preferred Interests			Exchange of Preferred Stock for Common Stock(c)			Total Effect of Recapitalization
Other assets	$	(24,297	)	$	(6,140	)(b)	$	–		$	(30,437	)
Other liabilities		(325	)		–			–			(325	)
Federal Reserve Bank of New York credit facility		(20,689	)		–			–			(20,689	)
Redeemable noncontrolling nonvoting, callable, junior preferred interests held by Department of Treasury		–			20,292			–			20,292
AIG shareholders' equity:
Preferred stock
Series C preferred stock		–			–			(23,000	)		(23,000	)
Series E preferred stock		–			–			(41,605	)		(41,605	)
Series F preferred stock		–			20,292			(7,378	)		(7,378	)
					(20,292	)
Series G preferred stock; 20,000 shares issued; liquidation value $0(d)		–			–			–			–
Common stock		–			–			4,138			4,138
Additional paid-in capital		–			–			67,845			67,845
Retained Earnings		(3,283	)		–			–			(3,283	)
Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York		–			(26,432	)		–			(26,432	)
Shares outstanding								1,655,037,962			1,655,037,962

(a)     Repayment and Termination of the FRBNY Credit Facility – Funds held in escrow and included in Other assets from the AIA IPO and the ALICO sale were used to repay the FRBNY Credit Facility. The adjustments to Other assets and Accumulated deficit reflects the write-off of the unamortized portion of the net prepaid commitment fee asset.

(b)     Repurchase and Exchange of SPV Preferred Interests – We used remaining net cash proceeds from the AIA IPO and the ALICO sale to pay down a portion of the liquidation preference on the SPV Preferred Interests held by the FRBNY and drew down approximately $20.3 billion under the Department of the Treasury Commitment (Series F) to repurchase the FRBNY's remaining SPV Preferred Interests, which we then transferred to the Department of the Treasury as part of the consideration for the exchange of the Series F Preferred Stock.

(c)     Exchange of our Series C, E and F Preferred Stock for AIG Common Stock. The adjustments represent the exchange of Series C Preferred Stock, Series E Preferred Stock, and Series F Preferred Stock for AIG Common Stock. As a result of the Recapitalization, the Department of the Treasury acquired 1,655,037,962 shares of newly issued AIG Common Stock.

(d)     In connection with the May 2011 AIG Common Stock offering and sale, the Series G Preferred Stock was cancelled.

Rollforward of preferred stock

(in millions)	AIG Series E			AIG Series F			AIG Series C			Total Preferred Stock
Balance, January 1, 2010	$	41,605		$	5,179		$	23,000		$	69,784
AIG Series F drawdown		–			2,199			–			2,199
Balance, December 31, 2010	$	41,605		$	7,378		$	23,000		$	71,983
Shares Exchanged		(41,605	)		(7,378	)		(23,000	)		(71,983	)
Balance, December 31, 2011	$	–		$	–		$	–		$	–
Shares Exchanged		–			–			–			–
Balance, December 31, 2012	$	–		$	–		$	–		$	–

Summarizes information of public offerings of common stock by Department of the Treasury, as selling shareholder

			U.S. Treasury				AIG*
(dollars in millions, except share-price data)
	Price		Shares Sold		Amount		Shares Purchased		Amount
May 2011 Offering	$	29.00		200,000,000	$	5,800		–	$	–
2012 Offerings:
March Offering		29.00		206,896,552		6,000		103,448,276		3,000
May Offering		30.50		188,524,589		5,750		65,573,770		2,000
August Offering		30.50		188,524,590		5,750		98,360,656		3,000
September Offering		32.50		636,923,075		20,700		153,846,153		5,000
December Offering		32.50		234,169,156		7,610		–		–
				1,655,037,962	$	51,610		421,228,855	$	13,000

*         Shares purchased by us in each of the 2012 offerings were purchased pursuant to AIG Board of Directors authorization.

Accumulated Other Comprehensive Income (Loss)

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized			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, January 1, 2010, net of tax	$	(1,785	)	$	7,829		$	2,249		$	(128	)	$	(1,144	)	$	7,021
Cumulative effect of change in accounting principle		(76	)		(168	)		(688	)		–			–			(932	)
Change in unrealized appreciation of investments		2,645			7,265			–			–			–			9,910
Change in deferred acquisition costs adjustment and other		(166	)		(491	)		–			–			–			(657	)
Change in foreign currency translation adjustments		–			–			654			–			–			654
Change in net derivative losses arising from cash flow hedging activities		–			–			–			105			–			105
Net actuarial loss		–			–			–			–			(1	)		(1	)
Prior service credit		–			–			–			–			10			10
Change attributable to divestitures and deconsolidations		43			(2,854	)		(2,357	)		6			290			(4,872	)
Deferred tax asset (liability)		(1,293	)		(1,627	)		775			(17	)		(24	)		(2,186	)
Total other comprehensive income (loss)		1,229			2,293			(928	)		94			275			2,963
Acquisition of noncontrolling interest		–			–			–			–			–			–
Noncontrolling interests		2			99			80			–			–			181
Balance, December 31, 2010, net of tax	$	(634	)	$	9,855		$	553		$	(34	)	$	(869	)	$	8,871
Change in unrealized appreciation of investments		55			5,463			–			–			–			5,518
Change in deferred acquisition costs adjustment and other(a)		11			(641	)		–			–			–			(630	)
Change in future policy benefits(b)		–			(2,302	)		–			–			–			(2,302	)
Change in foreign currency translation adjustments		–			–			(97	)		–			–			(97	)
Change in net derivative losses arising from cash flow hedging activities		–			–			–			51			–			51
Net actuarial loss		–			–			–			–			(752	)		(752	)
Prior service credit		–			–			–			–			387			387
Change attributable to divestitures and deconsolidations		23			(3,643	)		(1,681	)		–			260			(5,041	)
Deferred tax asset (liability)		(163	)		(362	)		786			(34	)		35			262
Total other comprehensive income (loss)		(74	)		(1,485	)		(992	)		17			(70	)		(2,604	)
Acquisition of noncontrolling interest		–			45			66			–			(18	)		93
Noncontrolling interests		3			(160	)		36			–			–			(121	)
Balance, December 31, 2011, net of tax	$	(711	)	$	8,575		$	(409	)	$	(17	)	$	(957	)	$	6,481
Change in unrealized appreciation of investments		2,306			8,404			–			–			–			10,710
Change in deferred acquisition costs adjustment and other		(49	)		(840	)		–			–			–			(889	)
Change in future policy benefits		(85	)		(432	)		–			–			–			(517	)
Change in foreign currency translation adjustments		–			–			(33	)		–			–			(33	)
Change in net derivative gains (losses) arising from cash flow hedging activities		–			–			–			33			–			33
Net actuarial loss		–			–			–			–			(273	)		(273	)
Prior service credit		–			–			–			–			(46	)		(46	)
Deferred tax asset (liability)		(886	)		(2,252	)		33			(16	)		232			(2,889	)
Total other comprehensive income (loss)		1,286			4,880			–			17			(87	)		6,096
Noncontrolling interests		–			9			(6	)		–			–			3
Balance, December 31, 2012, net of tax	$	575		$	13,446		$	(403	)	$	–		$	(1,044	)	$	12,574

(a)     Includes the pre-tax adjustment to Accumulated other comprehensive income related to a $152 million reduction of deferred acquisition costs as a consequence of the recognition of additional policyholder benefit reserves disclosed below.

(b)     The adjustment to policyholder benefit reserves assumes that the unrealized appreciation on available for sale securities is actually realized and that the proceeds are reinvested at lower yields.

Other comprehensive income (loss) reclassification adjustments

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized			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
December 31, 2010
Unrealized change arising during period	$	2,469		$	9,270		$	654		$	(25	)	$	(89	)	$	12,279
Less: Reclassification adjustments included in net income		(53	)		5,350			2,357			(136	)		(388	)		7,130
Total other comprehensive income (loss), before income tax expense (benefit)		2,522			3,920			(1,703	)		111			299			5,149
Less: Income tax expense (benefit)		1,293			1,627			(775	)		17			24			2,186
Total other comprehensive income (loss), net of income tax expense (benefit)	$	1,229		$	2,293		$	(928	)	$	94		$	275		$	2,963
December 31, 2011
Unrealized change arising during period	$	84		$	4,222		$	(97	)	$	(5	)	$	(440	)	$	3,764
Less: Reclassification adjustments included in net income		(5	)		5,345			1,681			(56	)		(335	)		6,630
Total other comprehensive income (loss), before income tax expense (benefit)		89			(1,123	)		(1,778	)		51			(105	)		(2,866	)
Less: Income tax expense (benefit)		163			362			(786	)		34			(35	)		(262	)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	(74	)	$	(1,485	)	$	(992	)	$	17		$	(70	)	$	(2,604	)
December 31, 2012
Unrealized change arising during period	$	2,236		$	8,896		$	(33	)	$	(2	)	$	(406	)	$	10,691
Less: Reclassification adjustments included in net income		64			1,764			–			(35	)		(87	)		1,706
Total other comprehensive income, before income tax expense (benefit)		2,172			7,132			(33	)		33			(319	)		8,985
Less: Income tax expense (benefit)		886			2,252			(33	)		16			(232	)		2,889
Total other comprehensive income, net of income tax expense (benefit)	$	1,286		$	4,880		$	–		$	17		$	(87	)	$	6,096