TOTAL EQUITY

3 Months Ended

Mar. 31, 2013

TOTAL EQUITY

TOTAL EQUITY

11. TOTAL EQUITY

Shares Outstanding

The following table presents a rollforward of outstanding shares:

	Common Stock Issued		Treasury Stock			Outstanding Shares
Three Months Ended March 31, 2013
Shares, beginning of year		1,906,611,680		(430,289,745	)		1,476,321,935
Issuances		616		22,612			23,228
Shares, end of period		1,906,612,296		(430,267,133	)		1,476,345,163

Dividends

Payment of future dividends to our shareholders depends in part on the regulatory framework that will ultimately be applicable to us, including our status as a savings and loan holding company under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and whether we are determined to be a non-bank systemically important financial institution (SIFI). In addition, dividends will be payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available therefor. In considering whether to pay a dividend or purchase shares of AIG Common Stock, our Board of Directors will take into account such matters as the performance of our businesses, our consolidated financial condition, results of operations and liquidity, available capital, the existence of investment opportunities, contractual, legal and regulatory restrictions on the payment of dividends by our subsidiaries, rating agency considerations, including the potential effect on our debt ratings, and such other factors as our Board may deem relevant. We did not pay any cash dividends in the first quarter of 2013.

See Note 20 to the Consolidated Financial Statements in the 2012 Annual Report for a discussion of restrictions on payments of dividends to AIG Parent by its subsidiaries.

Accumulated Other Comprehensive Income

The following table presents a rollforward of Accumulated other comprehensive income:

(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, December 31, 2012, net of tax	$	575		$	13,446		$	(403	)	$	–	$	(1,044	)	$	12,574
Change in unrealized appreciation of investments		414			(1,607	)		–			–		–			(1,193	)
Change in deferred acquisition costs adjustment and other		(2	)		(309	)		–			–		–			(311	)
Change in future policy benefits		13			411			–			–		–			424
Change in foreign currency translation adjustments		–			–			(293	)		–		–			(293	)
Net actuarial gain		–			–			–			–		57			57
Prior service credit		–			–			–			–		(14	)		(14	)
Change in deferred tax asset (liability)		(143	)		717			20			–		1			595
Total other comprehensive income (loss)		282			(788	)		(273	)		–		44			(735	)
Noncontrolling interests		–			(1	)		1			–		–			–
Balance, March 31, 2013, net of tax	$	857		$	12,659		$	(677	)	$	–	$	(1,000	)	$	11,839

The following table presents the other comprehensive income reclassification adjustments for the three-month periods ended March 31, 2013 and 2012:

(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
Three Months Ended March 31, 2013
Unrealized change arising during period	$	474		$	(1,278	)	$	(293	)	$	–		$	18		$	(1,079	)
Less: Reclassification adjustments included in net income		49			227			–			–			(25	)		251
Total other comprehensive income (loss), before income tax expense (benefit)		425			(1,505	)		(293	)		–			43			(1,330	)
Less: Income tax expense (benefit)		143			(717	)		(20	)		–			(1	)		(595	)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	282		$	(788	)	$	(273	)	$	–		$	44		$	(735	)
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		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

The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Condensed Consolidated Statement of Income:

Three Months Ended March 31, 2013 (in millions)	Amount Reclassified from Accumulated Other Comprehensive Income			Affected Line Item in the Condensed Consolidated Statement of Income
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized
Investments	$	49		Other realized capital gains
Unrealized appreciation (depreciation) of all other investments
Investments		286		Other realized capital gains
Deferred acquisition costs adjustment		43		Amortization of deferred acquisition costs
Future policy benefits		(102	)	Policyholder benefits and claims incurred
Total		227
Change in retirement plan liabilities adjustment
Prior-service costs		12		*
Actuarial gains/(losses)		(37	)	*
Total		(25	)
Total reclassifications for the period	$	251

*     These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 14.