Condensed Financial Information of Registrant
Balance Sheets — Parent Company Only




December 31, (in millions)	2013			2012

Assets:
Short-term investments	$	11,965		$	14,764
Other investments		7,561			3,902

Total investments		19,526			18,666
Cash		30			81
Loans to subsidiaries^*		31,220			35,064
Due from affiliates – net^*		765			422
Deferred income taxes		19,352			20,601
Investments in consolidated subsidiaries^*		66,201			70,781
Other assets		1,489			2,130

Total assets	$	138,583		$	147,745

Liabilities:
Intercompany tax payable^*	$	1,419		$	6,078
Notes and bonds payable		14,312			14,334
Junior subordinated debt		5,533			9,416
MIP notes payable		7,963			9,287
Series AIGFP matched notes and bonds payable		3,031			3,329
Loans from subsidiaries^*		852			1,002
Other liabilities (includes intercompany derivative liabilities of $249 in 2013 and $602 in 2012)		5,003			6,297

Total liabilities		38,113			49,743

AIG Shareholders' equity:
Common stock		4,766			4,766
Treasury stock		(14,520	)		(13,924	)
Additional paid-in capital		80,899			80,410
Retained earnings		22,965			14,176
Accumulated other comprehensive income		6,360			12,574

Total AIG shareholders' equity		100,470			98,002

Total liabilities and equity	$	138,583		$	147,745

* Eliminated in consolidation.

See Accompanying Notes to Condensed Financial Information of Registrant.

Statements of Income — Parent Company Only




Years Ended December 31, (in millions)	2013			2012			2011

Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries^*	$	(2,226	)	$	(8,740	)	$	432
Dividend income from consolidated subsidiaries^*		9,864			10,710			5,828
Interest income		387			358			596
Change in fair value of ML III		–			2,287			(723	)
Net realized capital gains		169			747			213
Other income		931			806			279
Expenses:
Interest expense		1,938			2,257			2,917
Net loss on extinguishment of debt		580			9			2,847
Other expenses		1,520			1,602			867

Income (loss) from continuing operations before income tax expense (benefit)		5,087			2,300			(6	)
Income tax benefit		(4,012	)		(1,137	)		(19,695	)

Net income		9,099			3,437			19,689
Income (loss) from discontinued operations		(14	)		1			933

Net income attributable to AIG Parent Company	$	9,085		$	3,438		$	20,622

* Eliminated in consolidation.

See Accompanying Notes to Condensed Financial Information of Registrant.

Statements of Income — Parent Company Only




Years Ended December 31, (in millions)	2013			2012		2011

Net income	$	9,085		$	3,438	$	20,622
Other comprehensive income		(6,214	)		6,093		(2,483	)

Total comprehensive income attributable to AIG	$	2,871		$	9,531	$	18,139

See accompanying Notes to Condensed Financial Information of Registrant

Statements of Cash Flows — Parent Company Only




Years Ended December 31, (in millions)	2013			2012			2011

Net cash provided by (used in) operating activities	$	6,422		$	(825	)	$	(5,600	)

Cash flows from investing activities:
Sales and maturities of investments		1,074			16,546			2,224
Sales of divested businesses		–			–			1,075
Purchase of investments		(5,506	)		(4,406	)		(19	)
Net change in restricted cash		493			(377	)		1,945
Net change in short-term investments		2,361			(2,029	)		(7,130	)
Contributions to subsidiaries – net		(2,081	)		(152	)		(15,973	)
Payments received on mortgages and other loan receivables		351			328			341
Loans to subsidiaries – net		3,660			5,126			3,757
Other, net		130			259			1,543

Net cash provided by (used in) investing activities		482			15,295			(12,237	)

Cash flows from financing activities:
Federal Reserve Bank of New York credit facility repayments		–			–			(14,622	)
Issuance of long-term debt		2,015			3,754			2,135
Repayment of long-term debt		(7,439	)		(3,238	)		(6,181	)
Proceeds from drawdown on the Department of the Treasury Commitment		–			–			20,292
Issuance of Common Stock		–			–			5,055
Cash dividends paid		(294	)		–			–
Loans from subsidiaries – net		(123	)		(2,032	)		11,519
Purchase of Common Stock		(597	)		(13,000	)		(70	)
Other, net		(517	)		(49	)		(164	)

Net cash provided by (used in) financing activities		(6,955	)		(14,565	)		17,964

Change in cash		(51	)		(95	)		127
Cash at beginning of year		81			176			49

Cash at end of year	$	30		$	81		$	176

Supplementary disclosure of cash flow information:




	Years Ended December 31,
(in millions)	2013			2012			2011

Cash (paid) received during the period for:
Interest:
Third party*	$	(1,963	)	$	(2,089	)	$	(6,909	)
Intercompany		(12	)		(133	)		(311	)
Taxes:
Income tax authorities		(161	)		(7	)		13
Intercompany		288			230			(335	)
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		341			–			–
Other capital contributions – net		523			579			523
Intercompany loan receivable offset by intercompany payable		–			–			18,284
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 other bonds securities		–			3,320			3,668

See Accompanying Notes to Condensed Financial Information of Registrant.

* 2011 includes payment of the FRBNY credit facility accrued compounded interest of $4.7 billion, before the facility was terminated on January 14, 2011 in connection with the Recapitalization.

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 2013 Annual Report on Form 10-K for the year ended December 31, 2013 (2013 Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 20, 2014.

The Registrant includes in its statement of income 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 14 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 from affiliates in the accompanying Condensed Balance Sheets.

Income taxes in the accompanying Condensed Balance Sheets are composed 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 23 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.