Schedule II Condensed Financial Information of Registrant - Parent Company Only

12 Months Ended

Dec. 31, 2019

INFORMATION PROVIDED IN CONNECTION WITH OUTSTADING DEBT

Schedule II Condensed Financial Information of Registrant - Parent Company Only

Condensed Financial Information of Registrant

Balance Sheets — Parent Company Only

		Schedule II
December 31,
(in millions)		2019		2018
Assets:
Short-term investments(a)	$	3,329	$	1,141
Other investments		4,804		3,377
Total investments		8,133		4,518
Cash		2		2
Loans to subsidiaries(b)		35,352		34,963
Due from affiliates - net(b)		1,504		1,206
Intercompany tax receivable(b)		3,121		3,053
Deferred income taxes		9,426		10,747
Investment in consolidated subsidiaries(b)		39,921		33,300
Other assets(c)		340		383
Total assets	$	97,799	$	88,172
Liabilities:
Due to affiliate(b)	$	3,231	$	2,329
Intercompany tax payable(b)		2,700		2,954
Notes and bonds payable		20,467		20,853
Junior subordinated debt		1,542		1,548
Series AIGFP matched notes and bonds payable		21		21
Loans from subsidiaries(b)		715		615
Other liabilities (includes intercompany derivative liabilities of $33 in 2019 and $105 in 2018)		3,448		3,491
Total liabilities		32,124		31,811
AIG Shareholders’ equity:
Preferred stock		485		-
Common stock		4,766		4,766
Treasury stock		(48,987)		(49,144)
Additional paid-in capital		81,345		81,268
Retained earnings		23,084		20,884
Accumulated other comprehensive income (loss)		4,982		(1,413)
Total AIG shareholders’ equity		65,675		56,361
Total liabilities and equity	$	97,799	$	88,172

(a)At December 31, 2019 and 2018, included restricted cash of $102 million and $124 million, respectively.

(b)Eliminated in consolidation.

(c)At December 31, 2019 and 2018, included restricted cash of $1 million and $1 million, respectively.

See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Income — Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2019		2018		2017
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries(a)	$	44	$	(5,160)	$	(2,375)
Dividend income from consolidated subsidiaries(a)		3,819		4,580		2,226
Interest income(b)		1,034		961		656
Net realized capital gains (losses)		(3)		(49)		46
Other income		125		26		189
Expenses:
Interest expense		985		954		949
Net loss on extinguishment of debt		-		-		2
Net loss on sale of divested businesses		1		3		30
Other expenses		728		800		922
Income (loss) from continuing operations before income tax expense (benefit)		3,305		(1,399)		(1,161)
Income tax expense (benefit)		(45)		(1,433)		4,922
Net income (loss)		3,350		34		(6,083)
Loss from discontinued operations		(2)		(40)		(1)
Net income (loss) attributable to AIG Parent Company	$	3,348	$	(6)	$	(6,084)

(a)Eliminated in consolidation.

(b)Includes interest income on intercompany borrowings of $904 million, $840 million and $512 million on December 31, 2019, 2018 and 2017, respectively, eliminated in consolidation.

See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Comprehensive Income — Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2019		2018		2017
Net income (loss)	$	3,348	$	(6)	$	(6,084)
Other comprehensive income (loss)		6,395		(6,302)		2,235
Total comprehensive income (loss) attributable to AIG	$	9,743	$	(6,308)	$	(3,849)
See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Cash Flows — Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2019		2018		2017
Net cash provided by operating activities	$	3,484	$	1,256	$	36
Cash flows from investing activities:
Sales and maturities of investments		2,313		5,587		5,714
Sales of divested businesses		-		-		40
Purchase of investments		(2,957)		(1,980)		(2,465)
Net change in short-term investments		(2,170)		1,533		1,994
Contributions from (to) subsidiaries - net		(237)		1		2,446
Acquisition of businesses		-		(5,475)		-
Payments received on mortgage and other loans receivable		-		-		107
Loans to subsidiaries - net		513		868		199
Other, net		67		(73)		(183)
Net cash provided by (used in) investing activities		(2,471)		461		7,852
Cash flows from financing activities:
Issuance of long-term debt		595		2,470		1,505
Repayments of long-term debt		(1,006)		(1,493)		(1,724)
Issuance of preferred stock		485		-		-
Cash dividends paid on preferred stock		(22)		-		-
Cash dividends paid on common stock		(1,114)		(1,138)		(1,172)
Loans from subsidiaries - net		93		90		(63)
Purchase of common stock		-		(1,739)		(6,275)
Other, net		(66)		212		(154)
Net cash used in financing activities		(1,035)		(1,598)		(7,883)
Change in cash and restricted cash		(22)		119		5
Cash and restricted cash at beginning of year		127		8		3
Cash and restricted cash at end of year	$	105	$	127	$	8
Supplementary disclosure of cash flow information:
	Years Ended December 31,
(in millions)		2019		2018		2017
Cash	$	2	$	2	$	3
Restricted cash included in Short-term investments		102		124		4
Restricted cash included in Other assets		1		1		1
Total cash and restricted cash shown in Statements of Cash Flows — Parent Company Only	$	105	$	127	$	8
Cash (paid) received during the period for:
Interest:
Third party	$	(941)	$	(914)	$	(948)
Intercompany		(3)		1		-
Taxes:
Income tax authorities		(11)		(32)		(329)
Intercompany		1,179		895		614
Intercompany non-cash financing and investing activities:
Capital contributions		15		2,369		259
Return of capital		15		2,706		26
Dividends received in the form of securities		702		745		735
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 2019 Annual Report on Form 10-K for the year ended December 31, 2019 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 21, 2020.

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.

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 16 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 and deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated income tax group.

For additional information see Note 23 to the Consolidated Financial Statements.

The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards 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.