EQUITY (Tables)

12 Months Ended

Dec. 31, 2013

EQUITY

Rollforward of common stock outstanding

	Preferred Stock
													Common Stock Issued		Treasury Stock			Common Stock Outstanding
	AIG Series E			AIG Series F			AIG Series C			AIG Series G
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
Year Ended December 31, 2013
Shares, beginning of year														1,906,611,680		(430,289,745	)		1,476,321,935
Shares issued														34,009		24,778			58,787
Shares repurchased														–		(12,317,399	)		(12,317,399	)
Shares, end of year														1,906,645,689		(442,582,366	)		1,464,063,323

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, 2011	$	41,605		$	7,378		$	23,000		$	71,983
Shares Exchanged		(41,605	)		(7,378	)		(23,000	)		(71,983	)
Balance, December 31, 2011	$	–		$	–		$	–		$	–

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. In connection with the May 2011 Offering, AIG issued and sold 100 million shares of AIG Common Stock for aggregate net proceeds of approximately $2.9 billion.

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, 2011	$	(634	)	$	9,855		$	553		$	(34	)	$	(869	)	$	8,871
Change in unrealized appreciation of investments		55			5,463			–			–			–			5,518
Change in deferred policy acquisition costs adjustment and other		11			(641	)		–			–			–			(630	)
Change in future policy benefits*		–			(2,302	)		–			–			–			(2,302	)
Change in foreign currency translation adjustments		–			–			(97	)		–			–			(97	)
Change in net derivative gains 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 interests		–			45			66			–			(18	)		93
Noncontrolling interests		3			(160	)		36			–			–			(121	)
Balance, December 31, 2011	$	(711	)	$	8,575		$	(409	)	$	(17	)	$	(957	)	$	6,481
Change in unrealized appreciation of investments		2,306			8,404			–			–			–			10,710
Change in deferred policy 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 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	$	575		$	13,446		$	(403	)	$	–		$	(1,044	)	$	12,574
Change in unrealized appreciation (depreciation) of investments		464			(14,069	)		–			–			–			(13,605	)
Change in deferred policy acquisition costs adjustment and other		(127	)		1,000			–			–			–			873
Change in future policy benefits		79			2,658			–			–			–			2,737
Change in foreign currency translation adjustments		–			–			(454	)		–			–			(454	)
Net actuarial gain		–			–			–			–			1,012			1,012
Prior service cost		–			–			–			–			(51	)		(51	)
Deferred tax asset (liability)		(55	)		3,738			(102	)		–			(330	)		3,251
Total other comprehensive income (loss)		361			(6,673	)		(556	)		–			631			(6,237	)
Noncontrolling interests		–			(16	)		(7	)		–			–			(23	)
Balance, December 31, 2013	$	936		$	6,789		$	(952	)	$	–		$	(413	)	$	6,360

*     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, 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 (loss), 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 (loss), net of income tax expense (benefit)	$	1,286		$	4,880		$	–		$	17		$	(87	)	$	6,096
December 31, 2013
Unrealized change arising during period	$	507		$	(9,556	)	$	(454	)	$	–		$	851		$	(8,652	)
Less: Reclassification adjustments included in net income		91			855			–			–			(110	)		836
Total other comprehensive income (loss), before income tax expense (benefit)		416			(10,411	)		(454	)		–			961			(9,488	)
Less: Income tax expense (benefit)		55			(3,738	)		102			–			330			(3,251	)
Total other comprehensive income (loss), net of income tax expense (benefit)	$	361		$	(6,673	)	$	(556	)	$	–		$	631		$	(6,237	)

Schedule of effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income

	Amount Reclassified from Accumulated Other Comprehensive Income
(in millions)	Year Ended December 31, 2013			Affected Line Item in the Consolidated Statements of Income
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were recognized
Investments	$	91		Other realized capital gains
Total		91
Unrealized appreciation (depreciation) of all other investments
Investments		2,452		Other realized capital gains
Deferred acquisition costs adjustment		(28	)	Amortization of deferred acquisition costs
Future policy benefits		(1,569	)	Policyholder benefits and claims incurred
Total		855
Change in retirement plan liabilities adjustment
Prior-service costs		47		*
Actuarial gains/(losses)		(157	)	*
Total		(110	)
Deferred tax asset (liability)		–
Total reclassifications for the period	$	836

*     These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 21 to the Consolidated Financial Statements.