Schedule II Condensed Financial Information of Registrant - Parent Company Only

12 Months Ended

Dec. 31, 2020

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)		2020		2019
Assets:
Short-term investments(a)	$	6,918	$	3,329
Other investments		4,227		4,804
Total investments		11,145		8,133
Cash		3		2
Loans to subsidiaries(b)		36,981		35,352
Due from affiliates - net(b)		1,531		1,504
Intercompany tax receivable(b)		978		3,121
Deferred income taxes		8,525		9,426
Investment in consolidated subsidiaries(b)		41,294		39,921
Other assets(c)		313		340
Total assets	$	100,770	$	97,799
Liabilities:
Due to affiliate(b)	$	3,224	$	3,231
Intercompany tax payable(b)		2,669		2,700
Notes and bonds payable		23,068		20,467
Junior subordinated debt		1,561		1,542
Series AIGFP matched notes and bonds payable		21		21
Loans from subsidiaries(b)		735		715
Other liabilities (includes intercompany derivative liabilities of $0 in 2020 and $33 in 2019)		3,130		3,448
Total liabilities		34,408		32,124
AIG Shareholders’ equity:
Preferred stock		485		485
Common stock		4,766		4,766
Treasury stock		(49,322)		(48,987)
Additional paid-in capital		81,418		81,345
Retained earnings		15,504		23,084
Accumulated other comprehensive income		13,511		4,982
Total AIG shareholders’ equity		66,362		65,675
Total liabilities and equity	$	100,770	$	97,799

(a)At December 31, 2020 and 2019, included restricted cash of $0 million and $102 million, respectively.

(b) Eliminated in consolidation.

(c) At December 31, 2020 and 2019, 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)		2020		2019		2018
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries(a)	$	(2,569)	$	44	$	(5,160)
Dividend income from consolidated subsidiaries(a)		1,797		3,819		4,580
Interest income(b)		348		1,034		961
Net realized capital losses		(149)		(3)		(49)
Other income		(1)		125		26
Expenses:
Interest expense		1,043		985		954
Net loss on extinguishment of debt		2		-		-
Net loss on sale of divested businesses		4,010		1		3
Other expenses		980		728		800
Income (loss) from continuing operations before income tax benefit		(6,609)		3,305		(1,399)
Income tax benefit		(667)		(45)		(1,433)
Net income (loss)		(5,942)		3,350		34
Loss from discontinued operations		(2)		(2)		(40)
Net income (loss) attributable to AIG Parent Company	$	(5,944)	$	3,348	$	(6)

(a)Eliminated in consolidation.

(b) Includes interest income on intercompany borrowings of $295 million, $904 million and $840 million on December 31, 2020, 2019 and 2018, 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)		2020		2019		2018
Net income (loss)	$	(5,944)	$	3,348	$	(6)
Other comprehensive income (loss)		8,529		6,395		(6,302)
Total comprehensive income (loss) attributable to AIG	$	2,585	$	9,743	$	(6,308)
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)		2020		2019		2018
Net cash provided by (used in) operating activities	$	(30)	$	3,484	$	1,256
Cash flows from investing activities:
Sales and maturities of investments		5,181		2,313		5,587
Sales of divested businesses		2,225		-		-
Purchase of investments		(3,250)		(2,957)		(1,980)
Net change in short-term investments		(3,559)		(2,170)		1,533
Contributions from (to) subsidiaries - net		(964)		(237)		1
Acquisition of businesses		-		-		(5,475)
Loans to subsidiaries - net		(22)		513		868
Other, net		(402)		67		(73)
Net cash provided by (used in) investing activities		(791)		(2,471)		461
Cash flows from financing activities:
Issuance of long-term debt		4,065		595		2,470
Repayments of long-term debt		(1,696)		(1,006)		(1,493)
Issuance of preferred stock		-		485		-
Cash dividends paid on preferred stock		(29)		(22)		-
Cash dividends paid on common stock		(1,103)		(1,114)		(1,138)
Loans from subsidiaries - net		16		93		90
Purchase of common stock		(500)		-		(1,739)
Other, net		(33)		(66)		212
Net cash provided by (used in) financing activities		720		(1,035)		(1,598)
Change in cash and restricted cash		(101)		(22)		119
Cash and restricted cash at beginning of year		105		127		8
Cash and restricted cash at end of year	$	4	$	105	$	127
Supplementary disclosure of cash flow information:
	Years Ended December 31,
(in millions)		2020		2019		2018
Cash	$	3	$	2	$	2
Restricted cash included in Short-term investments		-		102		124
Restricted cash included in Other assets		1		1		1
Total cash and restricted cash shown in Statements of Cash Flows – Parent Company Only	$	4	$	105	$	127
Cash (paid) received during the period for:
Interest:
Third party	$	(1,014)	$	(941)	$	(914)
Intercompany		-		(3)		1
Taxes:
Income tax authorities		(466)		(11)		(32)
Intercompany		1,592		1,179		895
Intercompany non-cash financing and investing activities:
Capital contributions		333		15		2,369
Return of capital		-		15		2,706
Dividends received in the form of securities		879		702		745
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 2020 Annual Report on Form 10-K for the year ended December 31, 2020 (Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 19, 2021.

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.

The five-year debt maturity schedule is incorporated by reference from Note 15 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 22 to the Consolidated Financial Statements.

The consolidated U.S. deferred tax asset for net operating 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.