Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2012	Apr. 30, 2012
Document and Entity Information
Entity Registrant Name	AMERICAN INTERNATIONAL GROUP INC
Entity Central Index Key	0000005272
Document Type	10-Q
Document Period End Date	Mar. 31, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		1,794,014,435
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1

Consolidated Balance Sheet (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2012 - $250,164; 2011 - $250,770)	$ 266,362	$ 263,981
Bond trading securities, at fair value	24,481	24,364
Equity securities:
Common and preferred stock available for sale, at fair value (cost: 2012 - $1,782; 2011 - $1,820)	3,026	3,624
Common and preferred stock trading, at fair value	123	125
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2012 - $114; 2011 - $107)	19,519	19,489
Flight equipment primarily under operating leases, net of accumulated depreciation	35,452	35,539
Other invested assets (portion measured at fair value: 2012 - $17,094; 2011 - $20,876)	37,209	40,744
Short-term investments (portion measured at fair value: 2012 - $4,408; 2011 - $5,913)	20,789	22,572
Total investments	406,961	410,438
Cash	1,315	1,474
Accrued investment income	3,165	3,108
Premiums and other receivables, net of allowance	15,648	14,721
Reinsurance assets, net of allowance	28,257	27,211
Current and deferred income taxes	15,955	17,802
Deferred policy acquisition costs	8,753	8,937
Derivative assets, at fair value	4,221	4,499
Other assets, including restricted cash of $3,520 in 2012 and $2,988 in 2011	14,103	12,782
Separate account assets, at fair value	56,025	51,388
Total assets	554,403	552,360
Liabilities:
Liability for unpaid claims and claims adjustment expense	89,785	91,145
Unearned premiums	25,034	23,465
Future policy benefits for life and accident and health insurance contracts	34,493	34,317
Policyholder contract deposits (portion measured at fair value: 2012 - $782; 2011 - $918)	126,376	126,898
Other policyholder funds	6,561	6,691
Derivative liabilities, at fair value	4,222	4,733
Other liabilities (portion measured at fair value: 2012 - $1,516; 2011 - $907)	31,346	27,554
Long-term debt (portion measured at fair value: 2012 - $10,579; 2011 - $10,766)	76,096	75,253
Separate account liabilities	56,025	51,388
Total liabilities	449,938	441,444
Commitments, contingencies and guarantees (see Note 9)
Redeemable noncontrolling interests (see Note 1):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		8,427
Other	121	96
Total redeemable noncontrolling interests	121	8,523
AIG shareholders' equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2012 - 1,906,614,552 and 2011 - 1,906,568,099	4,766	4,766
Treasury stock, at cost; 2012 - 113,167,239; 2011 - 9,746,617 shares of common stock	(3,942)	(942)
Additional paid-in capital	81,772	81,787
Retained earnings	13,982	10,774
Accumulated other comprehensive income	6,873	5,153
Total AIG shareholders' equity	103,451	101,538
Non-redeemable noncontrolling interests	893	855
Total equity	104,344	102,393
Total liabilities and equity	$ 554,403	$ 552,360

Consolidated Balance Sheet (Parenthetical - assets and liabilities) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Assets:
Bonds available for sale, amortized cost	$ 250,164	$ 250,770
Common and preferred stock available for sale, cost	1,782	1,820
Mortgage and other loans receivable, portion measured at fair value	114	107
Other invested assets, portion measured at fair value	17,094	20,876
Short-term investments, portion measured at fair value	4,408	5,913
Other assets, restricted cash	3,520	2,988
Liabilities:
Policyholder contract deposits, portion measured at fair value	782	918
Other liabilities, portion measured at fair value	1,516	907
Long-term debt, portion measured at fair value	$ 10,579	$ 10,766

Consolidated Balance Sheet (Parenthetical - equity) (USD $)	Mar. 31, 2012	Dec. 31, 2011
AIG shareholders' equity:
Common stock, par value (in dollars per share)	$ 2.50	$ 2.50
Common stock, shares authorized	5,000,000,000	5,000,000,000
Common stock, shares issued	1,906,614,552	1,906,568,099
Treasury stock, shares of common stock	113,167,239	9,746,617
Common Stock
AIG shareholders' equity:
Common stock, shares issued	1,906,614,552	1,906,568,099
Series G \| Preferred Stock
AIG shareholders' equity:
Preferred stock, shares issued	0	0
Series E \| Preferred Stock
AIG shareholders' equity:
Preferred stock, shares issued	0	0
Series F \| Preferred Stock
AIG shareholders' equity:
Preferred stock, shares issued	0	0
Series C \| Preferred Stock
AIG shareholders' equity:
Preferred stock, shares issued	0	0

Consolidated Statement of Operations (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Revenues:
Premiums	$ 9,461	$ 9,482
Policy fees	691	684
Net investment income	7,105	5,569
Net realized capital losses:
Total other-than-temporary impairments on available for sale securities	(168)	(218)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income	(285)	3
Net other-than-temporary impairments on available for sale securities recognized in net income	(453)	(215)
Other realized capital gains (losses)	150	(433)
Total net realized capital losses	(303)	(648)
Aircraft leasing revenue	1,156	1,156
Other income	333	1,196
Total revenues	18,443	17,439
Benefits, claims and expenses:
Policyholder benefits and claims incurred	7,102	8,959
Interest credited to policyholder account balances	1,069	1,106
Amortization of deferred acquisition costs	1,347	1,231
Other acquisition and insurance expenses	2,258	1,968
Interest expense	953	1,061
Aircraft leasing expenses	625	670
Net loss on extinguishment of debt	21	3,313
Other expenses	484	441
Total benefits, claims and expenses	13,859	18,749
Income (loss) from continuing operations before income tax expense (benefit)	4,584	(1,310)
Income tax expense (benefit)	1,148	(226)
Income (loss) from continuing operations	3,436	(1,084)
Income from discontinued operations, net of income tax expense (benefit)	13	2,585
Net income	3,449	1,501
Less: Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests	208	252
Other	33	(55)
Total net income from continuing operations attributable to noncontrolling interests	241	197
Net income from discontinued operations attributable to noncontrolling interests		7
Total net income attributable to noncontrolling interests	241	204
Net income attributable to AIG	3,208	1,297
Net income attributable to AIG common shareholders	$ 3,208	$ 485
Basic:
Income (loss) from continuing operations (in dollars per share)	$ 1.70	$ (1.34)
Income from discontinued operations (in dollars per share)	$ 0.01	$ 1.65
Diluted:
Income (loss) from continuing operations (in dollars per share)	$ 1.70	$ (1.34)
Income from discontinued operations (in dollars per share)	$ 0.01	$ 1.65
Weighted average shares outstanding:
Basic (in shares)	1,875,972,970	1,557,748,353
Diluted (in shares)	1,876,002,775	1,557,748,353

Consolidated Statement of Comprehensive Income (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Net income (loss)	$ 3,449	$ 1,501
Other comprehensive income (loss), net of tax
Change in unrealized appreciation of fixed maturity investments on which other-than-temporary credit impairments were taken	613	396
Change in unrealized appreciation (depreciation) of all other investments	981	(807)
Change in foreign currency translation adjustments	91	(517)
Change in net derivative gains arising from cash flow hedging activities	22	13
Change in retirement plan liabilities adjustment	18	135
Other comprehensive income (loss)	1,725	(780)
Comprehensive income	5,174	721
Comprehensive income attributable to noncontrolling nonvoting, callable, junior and senior preferred interests	208	252
Comprehensive income (loss) attributable to other noncontrolling interests	38	(12)
Total comprehensive income attributable to noncontrolling interests	246	240
Comprehensive loss attributable to AIG	$ 4,928	$ 481

Consolidated Statement of Cash Flows (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash flows from operating activities:
Net income (loss)	$ 3,449	$ 1,501
Income from discontinued operations	(13)	(2,585)
Noncash revenues, expenses, gains and losses included in income:
Net (gains) losses on sales of securities available for sale and other assets	(930)	129
Net losses on extinguishment of debt	21	3,313
Unrealized gains in earnings - net	(3,630)	(2,139)
Equity in income from equity method investments, net of dividends or distributions	(225)	(482)
Depreciation and other amortization	1,720	1,852
Impairments of assets	741	445
Changes in operating assets and liabilities:
General and life insurance reserves	271	5,824
Premiums and other receivables and payables - net	(50)	(676)
Reinsurance assets and funds held under reinsurance treaties	(1,059)	(4,049)
Capitalization of deferred policy acquisition costs	(1,417)	(1,337)
Other policyholder funds	(128)	(104)
Current and deferred income taxes - net	1,050	(611)
Trading securities	(118)	278
Payment of FRBNY Credit Facility accrued compounded interest and fees		(6,363)
Other, net	207	(1,538)
Total adjustments	(3,547)	(5,458)
Net cash used in operating activities - continuing operations	(111)	(6,542)
Net cash provided by operating activities - discontinued operations		1,230
Net cash used in operating activities	(111)	(5,312)
Proceeds from (payments for)
Sales of available for sale investments	10,750	11,665
Maturities of fixed maturity securities available for sale and hybrid investments	4,865	4,305
Sales of trading securities	3,067	6,987
Sales or distributions of other invested assets (including flight equipment)	6,799	2,671
Principal payments received on and sales of mortgage and other loans receivable	715	759
Purchases of available for sale investments	(14,500)	(19,456)
Purchases of trading securities	(379)	(199)
Purchases of other invested assets (including flight equipment)	(1,720)	(1,488)
Mortgage and other loans receivable issued and purchased	(794)	(403)
Net change in restricted cash	(531)	26,280
Net change in short-term investments	2,172	4,180
Net change in derivative assets and liabilities other than AIGFP	(136)	79
Other, net	(122)	32
Net cash provided by investing activities - continuing operations	10,186	35,412
Net cash provided by investing activities - discontinued operations		4,205
Net cash provided by investing activities	10,186	39,617
Proceeds from (payments for)
Policyholder contract deposits	3,510	4,804
Policyholder contract withdrawals	(3,930)	(3,684)
Federal Reserve Bank of New York credit facility repayments		(14,622)
Issuance of long-term debt	4,769	183
Repayments of long-term debt	(4,264)	(3,894)
Proceeds from drawdown on the Department of the Treasury Commitment		20,292
Repayment of Department of the Treasury SPV Preferred Interests	(8,636)	(9,146)
Repayment of Federal Reserve Bank of New York SPV Preferred Interests		26,432
Issuance of Common Stock		723
Purchase of Common Stock	(3,000)
Acquisition of noncontrolling interest	(14)	(533)
Other, net	1,333	(539)
Net cash used in financing activities - continuing operations	(10,232)	(32,848)
Net cash used in financing activities - discontinued operations		(1,637)
Net cash used in financing activities	(10,232)	(34,485)
Effect of exchange rate changes on cash	(2)	23
Net decrease in cash	(159)	(157)
Cash at beginning of period	1,474	1,558
Change in cash of businesses held for sale		400
Cash at end of period	$ 1,315	$ 1,801

Consolidated Statement of Equity (USD $)
In Millions, unless otherwise specified

Total

Total AIG Shareholders' Equity

Preferred Stock

Common Stock

Treasury Stock

Additional Paid-in Capital

Retained Earnings (Accumulated Deficit)

Accumulated Other Comprehensive Income

Non-redeemable non-controlling Interests

Balance at Dec. 31, 2010

$ 113,239

$ 85,319

$ 71,983

$ 368

$ (873)

$ 9,683

$ (3,466)

$ 7,624

$ 27,920

Increase (Decrease) in Stockholders' Equity

Cumulative effect of change in accounting principle, net of tax

(6,463)

(6,382)

(81)

Series F drawdown

20,292

Repurchase of SPV preferred interests in connection with Recapitalization

(26,432)

Exchange of consideration for preferred stock in connection with Recapitalization

(20,677)

(92,275)

4,138

67,460

Settlement of equity unit stock purchase contract

723

720

Net income (loss) attributable to AIG or other noncontrolling interests

^[1]

1,240

1,297

(57)

Net income attributable to noncontrolling nonvoting, callable, junior and senior preferred interests

Other comprehensive income (loss)

^[2]

(779)

(816)

Acquisition of noncontrolling interest

(538)

(29)

(172)

143

(509)

Net decrease due to deconsolidation

(109)

Contributions from noncontrolling interests

Distributions to noncontrolling interests

(101)

Other

(8)

(1)

(4)

(9)

Balance at Mar. 31, 2011

80,466

79,647

4,508

(873)

77,697

(8,555)

6,870

819

Balance at Dec. 31, 2011

102,393

101,538

4,766

(942)

81,787

10,774

5,153

855

Increase (Decrease) in Stockholders' Equity

Purchase of common stock

(3,000)

Net income (loss) attributable to AIG or other noncontrolling interests

^[1]

3,231

3,208

Other comprehensive income (loss)

^[2]

1,723

1,720

Deferred income taxes

(7)

Contributions from noncontrolling interests

Distributions to noncontrolling interests

(14)

Other

(24)

(8)

(16)

Balance at Mar. 31, 2012

$ 104,344

$ 103,451

$ 4,766

$ (3,942)

$ 81,772

$ 13,982

$ 6,873

$ 893

[1]	Excludes gains of $218 million and $187 million for the three months ended March 31, 2012 and 2011, respectively, attributable to redeemable noncontrolling interests.
[2]	Excludes $2 million and $(1) million attributable to redeemable noncontrolling interests for the three months ended March 31, 2012 and 2011, respectively.

Consolidated Statement of Equity (Parenthetical) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Consolidated Statement of Equity
Net gains attributable to redeemable noncontrolling interests	$ 218	$ 187
Other comprehensive income attributable to redeemable noncontrolling interests	$ 2	$ (1)

BASIS OF PRESENTATION AND SIGNIFICANT EVENTS

3 Months Ended

Mar. 31, 2012

BASIS OF PRESENTATION AND SIGNIFICANT EVENTS

BASIS OF PRESENTATION AND SIGNIFICANT EVENTS

1. BASIS OF PRESENTATION AND SIGNIFICANT EVENTS

These unaudited condensed consolidated financial statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited consolidated financial statements and the related notes included in the Annual Report on Form 10-K of American International Group, Inc. (AIG) for the year ended December 31, 2011, as amended by Amendment No. 1 and Amendment No. 2 on Form 10-K/A filed on February 27, 2012 and March 30, 2012, respectively (collectively, the 2011 Annual Report on Form 10-K). The condensed consolidated financial information as of December 31, 2011 included herein has been derived from audited consolidated financial statements not included herein.

Certain of AIG's foreign subsidiaries included in the consolidated financial statements report on different fiscal-period bases. The effect on AIG's consolidated financial condition and results of operations of all material events occurring at these subsidiaries through the date of each of the periods presented in these financial statements has been recorded.

In the opinion of management, these consolidated financial statements contain the normal recurring adjustments necessary for a fair statement of the results presented herein. Interim period operating results may not be indicative of the operating results for a full year. AIG evaluated the need to recognize or disclose events that occurred subsequent to March 31, 2012 and prior to the issuance of AIG's financial statements. All material intercompany accounts and transactions have been eliminated.

REVISIONS TO PRIOR YEAR FINANCIAL STATEMENTS

During the quarter ended March 31, 2012, AIG retroactively adopted a standard that changed its method of accounting for costs associated with acquiring or renewing insurance contracts. See Note 2 herein for additional details, including a summary of revisions to prior year financial statements.

USE OF ESTIMATES

The preparation of financial statements requires the application of accounting policies that often involve a significant degree of judgment. AIG considers that its accounting policies that are most dependent on the application of estimates and assumptions are those relating to items considered by management in the determination of:

•: estimates with respect to income taxes, including the recoverability of deferred tax assets and the predictability of future tax planning strategies and operating profitability of the character necessary for their realization;
•: recoverability of assets, including deferred policy acquisition costs (DAC), flight equipment, and reinsurance;
•: insurance liabilities, including general insurance unpaid claims and claims adjustment expenses and future policy benefits for life and accident and health contracts;
•: estimated gross profits for investment-oriented products;
•: impairment charges, including other-than-temporary impairments on financial instruments and goodwill impairments;
•: liabilities for legal contingencies; and
•: fair value measurements of certain financial assets and liabilities, including credit default swaps (CDS) and AIG's equity interest in Maiden Lane III LLC (ML III).

These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, AIG's consolidated financial condition, results of operations and cash flows could be materially affected.

SIGNIFICANT EVENTS

During the three months ended March 31, 2012, AIG executed significant transactions in the debt and equity capital markets as described below.

March 2012 Common Stock Offering by the Department of the Treasury and AIG Purchase of Shares

On March 13, 2012, the United States Department of the Treasury (Department of the Treasury), as selling shareholder, completed a registered public offering (the Offering) of AIG Common Stock, par value $2.50 per share (AIG Common Stock), in which it sold approximately 207 million shares of AIG Common Stock for aggregate proceeds of approximately $6.0 billion. AIG purchased approximately 103 million shares of AIG Common Stock in the Offering for an aggregate purchase amount of approximately $3.0 billion. As a result of the Department of the Treasury's sale of AIG Common Stock and AIG's purchase of shares in the Offering, ownership by the Department of the Treasury was reduced from approximately 77 percent to approximately 70 percent of the AIG Common Stock outstanding after the completion of the Offering.

Sale of AIA Shares

On March 7, 2012, AIG sold approximately 1.72 billion ordinary shares of AIA Group Limited (AIA) for gross proceeds of approximately $6.0 billion (the AIA Sale). As a result of the AIA Sale, AIG's retained interest in AIA decreased from approximately 33 percent to approximately 19 percent. At March 31, 2012 and December 31, 2011, the fair value of AIG's retained interest in AIA was approximately $8.2 billion and $12.4 billion, respectively.

Senior Notes Offering

On March 22, 2012, AIG completed a registered offering of $750 million 3.000% Notes Due 2015 and $1.25 billion 3.800% Notes Due 2017 for the Matched Investment Program (MIP).

ILFC Debt Offerings

In the first quarter of 2012, International Lease Finance Corporation (ILFC) raised approximately $2.4 billion through a combination of secured and unsecured financings.

Pay Down of Department of the Treasury's AIA SPV Preferred Interests in Full

On March 7, 2012, AIG entered into an agreement with the Department of the Treasury to amend various agreements (the Amendment), whereby the special purpose vehicle that held AIG's remaining shares in AIA (the AIA SPV) was entitled to retain and distribute to AIG the net proceeds in excess of $5.6 billion received by the AIA SPV from the AIA Sale. In addition, the liens created by the agreements on (i) the equity interests in ILFC, (ii) the ordinary shares of AIA held by the AIA SPV subsequent to the closing of the AIA Sale and (iii) the common equity interests in the AIA SPV were released and such interests and AIA ordinary shares no longer constituted collateral securing the repayment of the liquidation preference of the Department of the Treasury's preferred interests in the AIA SPV (the AIA SPV Preferred Interests). The Amendment also required the AIA SPV and AM Holdings LLC (the ALICO SPV) to redeem their preferred participating return rights held by the Department of the Treasury before the release of the collateral. AIG contributed a portion of the net proceeds received by AIG in respect of its interest in Maiden Lane II LLC (ML II) to redeem these residual rights.

On March 21, 2012, AIG entered into an agreement with the Department of the Treasury, pursuant to which the AIA SPV paid down in full the remaining liquidation preference of the AIA SPV Preferred Interests. As a result of the payment, the remaining liens on AIG assets supporting the paydown of these interests were released.

SUPPLEMENTARY DISCLOSURE OF CONSOLIDATED CASH FLOW INFORMATION

Three Months Ended March 31, (in millions)	2012		2011



Cash paid during the period for:
Interest^*	$	939	$	5,796
Taxes	$	97	$	384
Non-cash financing/investing activities:
Interest credited to policyholder contract deposits included in financing activities	$	1,100	$	1,255

*: 2011 includes payment of FRBNY Credit Facility accrued compounded interest of $4.7 billion, before the facility was terminated on January 14, 2011 in connection with the series of integrated transactions to recapitalize AIG (the Recapitalization) with the Department of the Treasury, the Federal Reserve Bank of New York and the AIG Credit Facility Trust, including the repayment of all amounts owned under the Credit Agreement, dated as of September 22, 2008 (as amended, the FRBNY Credit Facility).

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

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+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

RECENT ACCOUNTING STANDARDS

AIG adopted the following accounting standards on January 1, 2012:

Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts

In October 2010, the Financial Accounting Standards Board (FASB) issued an accounting standard update that amends the accounting for costs incurred by insurance companies that can be capitalized in connection with acquiring or renewing insurance contracts. The standard clarifies how to determine whether the costs incurred in connection with the acquisition of new or renewal insurance contracts qualify as deferred policy acquisition costs. AIG adopted the standard retrospectively on January 1, 2012.

Policy acquisition costs represent those costs that are incremental and directly related to the successful acquisition of new or renewal insurance contracts. AIG defers incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such costs generally include agent or broker commissions and bonuses, premium taxes, and medical and inspection fees that would not have been incurred if the insurance contract had not been acquired or renewed. Each cost is analyzed to assess whether it is fully deferrable. AIG partially defers costs, including certain commissions, when it does not believe the entire cost is directly related to the acquisition or renewal of insurance contracts.

AIG also defers a portion of employee total compensation and payroll-related fringe benefits directly related to time spent performing specific acquisition or renewal activities including costs associated with the time spent on underwriting, policy issuance and processing, and sales force contract selling. The amounts deferred are derived based on successful efforts for each distribution channel and/or cost center from which the cost originates.

Advertising costs related to the issuance of insurance contracts that meet the direct-advertising criteria are deferred and amortized as part of deferred policy acquisition costs.

The method AIG uses to amortize deferred policy acquisition costs for either short- or long-duration insurance contracts did not change as a result of the adoption of the standard.

The adoption of the standard resulted in a reduction to beginning of period retained earnings for the earliest period presented and a decrease in the amount of capitalized costs in connection with the acquisition or renewal of insurance contracts. Accordingly, AIG revised its historical financial statements and accompanying notes to the financial statements for the changes in deferred policy acquisition costs and associated changes in acquisition expenses and income taxes for affected entities and segments, including divested entities presented in continuing and discontinued operations.

The following tables present amounts previously reported in 2011, the effect of the change due to the retrospective adoption of the standard, and the adjusted amounts that are reflected in AIG's consolidated financial statements.

December 31, 2011 (in millions)	As Previously Reported		Effect of Change			As Currently Reported



Balance Sheet:
Current and deferred income taxes	$	16,084	$	1,718		$	17,802
Deferred policy acquisition costs		14,026		(5,089	)		8,937
Other assets		12,824		(42	)		12,782

Total assets		555,773		(3,413	)		552,360

Retained earnings		14,332		(3,558	)		10,774
Accumulated other comprehensive income		5,008		145			5,153

Total AIG shareholders' equity		104,951		(3,413	)		101,538

Three Months Ended March 31, 2011 (dollars in millions, except per share data)	As Previously Reported			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital losses	$	(651	)	$	3		$	(648	)

Total revenues		17,436			3			17,439

Interest credited to policyholder account balances		1,105			1			1,106
Amortization of deferred acquisition costs		1,716			(485	)		1,231
Other acquisition and other insurance expenses		1,551			417			1,968

Total benefits, claims and expenses		18,816			(67	)		18,749

Income (loss) from continuing operations before income tax benefit		(1,380	)		70			(1,310	)

Income tax benefit^(a)		(200	)		(26	)		(226	)

Income (loss) from continuing operations		(1,180	)		96			(1,084	)
Income (loss) from discontinued operations, net of income tax expense^(b)		1,653			932			2,585

Net income		473			1,028			1,501

Net income attributable to AIG		269			1,028			1,297

Net income (loss) attributable to AIG common shareholders		(543	)		1,028			485

Income (loss) per share attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations	$	(1.41	)	$	0.07		$	(1.34	)
Income from discontinued operations	$	1.06		$	0.59		$	1.65
Diluted
Income (loss) from continuing operations	$	(1.41	)	$	0.07		$	(1.34	)
Income from discontinued operations	$	1.06		$	0.59		$	1.65

(a): Includes a change in the deferred tax asset valuation allowance for the period.
(b): Represents the effect on the gain on sale of AIG Star Life Insurance Co. Ltd. (AIG Star) and AIG Edison Life Insurance Company (AIG Edison), which were sold in the first quarter of 2011.

Adoption of the standard did not affect the previously reported totals for net cash flows provided by (used in) operating, investing, or financing activities, but did affect the following components of net cash flows provided by (used in) operating activities.

Three Months Ended March 31, 2011 (in millions)	As Previously Reported			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net income	$	473		$	1,028		$	1,501
Income from discontinued operations		(1,653	)		(932	)		(2,585	)

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings – net		(2,136	)		(3	)		(2,139	)
Depreciation and other amortization		2,336			(484	)		1,852
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(1,754	)		417			(1,337	)
Current and deferred income taxes – net		(585	)		(26	)		(611	)
Total adjustments		(5,362	)		(96	)		(5,458	)

For short-duration insurance contracts, starting in 2012, AIG has elected to include anticipated investment income in its determination of whether the deferred policy acquisition costs are recoverable. AIG believes the inclusion of anticipated investment income in the recoverability analysis is a preferable accounting policy, as it includes in the recoverability analysis the fact that there is a timing difference between when the premiums are collected and in turn invested and when the losses and related expenses are paid. This is considered a change in accounting principle that requires retrospective application to all periods presented. Because AIG historically has not recorded any premium deficiency on its short-duration insurance contracts even without the inclusion of anticipated investment income, there were no changes to the historical financial statements for the change in accounting principle.

Reconsideration of Effective Control for Repurchase Agreements

In April 2011, the FASB issued an accounting standard that amends the criteria used to determine effective control for repurchase agreements and other similar arrangements such as securities lending transactions. The standard modifies the criteria for determining when these transactions would be accounted for as secured borrowings (i.e., financings) instead of sales of the securities.

The standard removes from the assessment of effective control the requirement that the transferor have the ability to repurchase or redeem the financial assets on substantially agreed terms, even in the event of default by the transferee. The removal of this requirement makes the level of collateral received by the transferor in a repurchase agreement or similar arrangement irrelevant in determining whether the transaction should be accounted for as a sale. Consequently, more repurchase agreements, securities lending transactions and similar arrangements will be accounted for as secured borrowings.

The guidance in the standard must be applied prospectively to transactions or modifications of existing transactions that occur on or after January 1, 2012. Under this standard, $1.2 billion in repurchase agreements (related to securities with a fair value of $1.8 billion) continued to be accounted for as sales as of March 31, 2012. Any modifications to these transactions that occur subsequent to adoption will result in an assessment of whether they should be accounted for as secured borrowings under the standard.

Common Fair Value Measurements and Disclosure Requirements in GAAP and IFRS

In May 2011, the FASB issued an accounting standard that amended certain aspects of the fair value measurement guidance in GAAP, primarily to achieve the FASB's objective of a converged definition of fair value and substantially converged measurement and disclosure guidance with International Financial Reporting Standards (IFRS). The measurement and disclosure requirements under GAAP and IFRS are now generally consistent, with certain exceptions including the accounting for day one gains and losses, measuring the fair value of alternative investments using net asset value and certain disclosure requirements.

The standard's fair value measurement and disclosure guidance applies to all companies that measure assets, liabilities, or instruments classified in shareholders' equity at fair value or provide fair value disclosures for items not recorded at fair value. While many of the amendments are not expected to significantly affect current practice, the guidance clarifies how a principal market is determined, addresses the fair value measurement of financial instruments with offsetting market or counterparty credit risks and the concept of valuation premise (i.e., in use or in exchange) and highest and best use, extends the prohibition on blockage factors to all three levels of the fair value hierarchy, and requires additional disclosures. The standard is effective for AIG for interim and annual periods beginning on January 1, 2012. The new disclosure requirements must be applied prospectively. The standard did not have any effect on AIG's consolidated financial condition, results of operations or cash flows. See Note 4 herein.

Presentation of Comprehensive Income

In June 2011, the FASB issued an accounting standard that requires the presentation of comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In the two-statement approach, the first statement should present total net income and its components, followed consecutively by a second statement that presents total other comprehensive income and its components. The standard did not have any effect on AIG's consolidated financial condition, results of operations or cash flows.

Testing Goodwill for Impairment

In September 2011, the FASB issued an accounting standard that amends the approach to testing goodwill for impairment. The standard simplifies how entities test goodwill for impairment by permitting an entity to first assess qualitative factors to determine whether it is more likely than not the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative, two-step goodwill impairment test. The standard is effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of the standard did not affect AIG's consolidated financial condition, results of operations or cash flows.

- Definition

The entire disclosure for all significant accounting policies of the reporting entity.

+ References+ Details

SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

3. SEGMENT INFORMATION

AIG reports the results of its operations through three reportable segments: Chartis, SunAmerica Financial Group (SunAmerica) and Aircraft Leasing. AIG evaluates performance based on pre-tax income (loss), excluding results from discontinued operations, because AIG believes this provides more meaningful information on how its operations are performing.

In order to align financial reporting with changes made during 2012 to the manner in which AIG's chief operating decision makers review the Chartis businesses to assess performance and make decisions about resources to be allocated, certain products previously reported in Commercial Insurance were reclassified to Consumer Insurance. These revisions did not affect the total Chartis reportable segment results previously reported.

The following table presents AIG's operations by reportable segment:

	Reportable Segment


	Reportable Segment													Consolidation and Eliminations
(in millions)	Chartis			SunAmerica		Aircraft Leasing^*		Other Operations			Total			Consolidation and Eliminations			Consolidated

Three Months Ended March 31, 2012
Total revenues	$	9,798		$	3,696	$	1,154	$	4,003		$	18,651		$	(208	)	$	18,443
Pre-tax income (loss)		910			862		120		2,736			4,628			(44	)		4,584

Three Months Ended March 31, 2011
Total revenues	$	9,880		$	3,839	$	1,159	$	2,732		$	17,610		$	(171	)	$	17,439
Pre-tax income (loss)		(374	)		967		120		(1,997	)		(1,284	)		(26	)		(1,310	)

*: AIG's Aircraft Leasing operations consist of a single operating segment.

The following table presents Chartis operations by operating segment:

(in millions)	Commercial Insurance			Consumer Insurance			Other		Total Chartis



Three Months Ended March 31, 2012
Total revenues	$	5,929		$	3,612		$	257	$	9,798
Pre-tax income		565			234			111		910

Three Months Ended March 31, 2011
Total revenues	$	6,066		$	3,434		$	380	$	9,880
Pre-tax income (loss)		(384	)		(255	)		265		(374	)

The following table presents SunAmerica operations by operating segment:

(in millions)	Domestic Life Insurance		Domestic Retirement Services		Total SunAmerica



Three Months Ended March 31, 2012
Total revenues	$	2,159	$	1,537	$	3,696
Pre-tax income		488		374		862

Three Months Ended March 31, 2011
Total revenues	$	1,962	$	1,877	$	3,839
Pre-tax income		333		634		967

The following table presents the components of AIG's Other operations:

(in millions)	Mortgage Guaranty		Global Capital Markets		Direct Investment Book		Retained Interests		Corporate & Other			Consolidation and Eliminations			Total Other Operations



Three Months Ended March 31, 2012
Total revenues	$	200	$	160	$	344	$	3,047	$	262		$	(10	)	$	4,003
Pre-tax income (loss)		8		88		248		3,047		(658	)		3			2,736

Three Months Ended March 31, 2011
Total revenues	$	238	$	386	$	463	$	1,649	$	11		$	(15	)	$	2,732
Pre-tax income (loss)		8		290		410		1,649		(4,347	)		(7	)		(1,997	)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

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-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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+ Details

FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2012

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

4. FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS ON A RECURRING BASIS

AIG carries certain of its financial instruments at fair value. AIG defines the fair value of a financial instrument as the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 6 to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K for a discussion of AIG's accounting policies and procedures regarding fair value measurements related to the following information.

Assets and liabilities recorded at fair value in the Consolidated Balance Sheet are measured and classified in accordance with a fair value hierarchy established in U.S. GAAP. The hierarchy consists of three "levels" based on the observability of inputs available in the marketplace used to measure the fair values as discussed below:

•: Level 1: Fair value measurements that are quoted prices (unadjusted) in active markets that AIG has the ability to access for identical assets or liabilities.
•: Level 2: Fair value measurements based on inputs other than quoted prices included in Level 1, that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.
•: Level 3: Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, AIG must make certain assumptions as to the inputs a hypothetical market participant would use to value that asset or liability.

ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON A RECURRING BASIS

The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the levels of the inputs used:

March 31, 2012 (in millions)	Level 1		Level 2		Level 3		Counterparty Netting^(a)			Cash Collateral^(b)			Total



Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	-	$	4,786	$	-	$	-		$	-		$	4,786
Obligations of states, municipalities and political subdivisions		-		36,628		1,054		-			-			37,682
Non-U.S. governments		396		25,711		15		-			-			26,122
Corporate debt		-		145,157		1,323		-			-			146,480
RMBS		-		21,811		13,240		-			-			35,051
CMBS		-		3,890		4,173		-			-			8,063
CDO/ABS		-		3,296		4,882		-			-			8,178

Total bonds available for sale		396		241,279		24,687		-			-			266,362

Bond trading securities:
U.S. government and government sponsored entities		505		6,951		-		-			-			7,456
Obligations of states, municipalities and political subdivisions		-		236		-		-			-			236
Non-U.S. governments		-		36		-		-			-			36
Corporate debt		-		1,088		5		-			-			1,093
RMBS		-		1,339		314		-			-			1,653
CMBS		-		1,280		433		-			-			1,713
CDO/ABS		-		3,878		8,416		-			-			12,294

Total bond trading securities		505		14,808		9,168		-			-			24,481

Equity securities available for sale:
Common stock		2,754		1		50		-			-			2,805
Preferred stock		-		48		106		-			-			154
Mutual funds		54		13		-		-			-			67

Total equity securities available for sale		2,808		62		156		-			-			3,026

Equity securities trading		38		85		-		-			-			123
Mortgage and other loans receivable		-		113		1		-			-			114
Other invested assets^(c)		8,332		1,576		7,186		-			-			17,094
Derivative assets:
Interest rate contracts		2		6,510		1,015		-			-			7,527
Foreign exchange contracts		-		38		-		-			-			38
Equity contracts		110		128		48		-			-			286
Commodity contracts		-		153		2		-			-			155
Credit contracts		-		1		64		-			-			65
Other contracts		-		480		214		-			-			694
Counterparty netting and cash collateral		-		-		-		(3,264	)		(1,280	)		(4,544	)

Total derivative assets		112		7,310		1,343		(3,264	)		(1,280	)		4,221

Short-term investments^(d)		433		3,975		-		-			-			4,408
Separate account assets		53,210		2,815		-		-			-			56,025
Other assets		-		701		-		-			-			701

Total	$	65,834	$	272,724	$	42,541	$	(3,264	)	$	(1,280	)	$	376,555

Liabilities:
Policyholder contract deposits	$	-	$	-	$	782	$	-		$	-		$	782
Derivative liabilities:
Interest rate contracts		-		6,307		237		-			-			6,544
Foreign exchange contracts		-		165		-		-			-			165
Equity contracts		1		232		8		-			-			241
Commodity contracts		-		156		-		-			-			156
Credit contracts^(e)		-		2		2,769		-			-			2,771
Other contracts		-		159		251		-			-			410
Counterparty netting and cash collateral		-		-		-		(3,264	)		(2,801	)		(6,065	)

Total derivative liabilities		1		7,021		3,265		(3,264	)		(2,801	)		4,222

Other long-term debt^(f)		-		10,004		575		-			-			10,579
Other liabilities^(g)		111		1,405		-		-			-			1,516

Total	$	112	$	18,430	$	4,622	$	(3,264	)	$	(2,801	)	$	17,099

December 31, 2011 (in millions)	Level 1		Level 2		Level 3		Counterparty Netting^(a)			Cash Collateral^(b)			Total



Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	174	$	5,904	$	-	$	-		$	-		$	6,078
Obligations of states, municipalities and political subdivisions		-		36,538		960		-			-			37,498
Non-U.S. governments		259		25,467		9		-			-			25,735
Corporate debt		-		142,883		1,935		-			-			144,818
RMBS		-		23,727		10,877		-			-			34,604
CMBS		-		3,991		3,955		-			-			7,946
CDO/ABS		-		3,082		4,220		-			-			7,302

Total bonds available for sale		433		241,592		21,956		-			-			263,981

Bond trading securities:
U.S. government and government sponsored entities		100		7,404		-		-			-			7,504
Obligations of states, municipalities and political subdivisions		-		257		-		-			-			257
Non-U.S. governments		-		35		-		-			-			35
Corporate debt		-		809		7		-			-			816
RMBS		-		1,345		303		-			-			1,648
CMBS		-		1,283		554		-			-			1,837
CDO/ABS		-		3,835		8,432		-			-			12,267

Total bond trading securities		100		14,968		9,296		-			-			24,364

Equity securities available for sale:
Common stock		3,294		70		57		-			-			3,421
Preferred stock		-		44		99		-			-			143
Mutual funds		55		5		-		-			-			60

Total equity securities available for sale		3,349		119		156		-			-			3,624

Equity securities trading		43		82		-		-			-			125
Mortgage and other loans receivable		-		106		1		-			-			107
Other invested assets^(c)		12,549		1,709		6,618		-			-			20,876
Derivative assets:
Interest rate contracts		2		7,251		1,033		-			-			8,286
Foreign exchange contracts		-		143		2		-			-			145
Equity contracts		92		133		38		-			-			263
Commodity contracts		-		134		2		-			-			136
Credit contracts		-		-		89		-			-			89
Other contracts		29		462		250		-			-			741
Counterparty netting and cash collateral		-		-		-		(3,660	)		(1,501	)		(5,161	)

Total derivative assets		123		8,123		1,414		(3,660	)		(1,501	)		4,499

Short-term investments^(d)		2,309		3,604		-		-			-			5,913
Separate account assets		48,502		2,886		-		-			-			51,388

Total	$	67,408	$	273,189	$	39,441	$	(3,660	)	$	(1,501	)	$	374,877

Liabilities:
Policyholder contract deposits	$	-	$	-	$	918	$	-		$	-		$	918
Derivative liabilities:
Interest rate contracts		-		6,661		248		-			-			6,909
Foreign exchange contracts		-		178		-		-			-			178
Equity contracts		-		198		10		-			-			208
Commodity contracts		-		146		-		-			-			146
Credit contracts^(e)		-		4		3,362		-			-			3,366
Other contracts		-		155		217		-			-			372
Counterparty netting and cash collateral		-		-		-		(3,660	)		(2,786	)		(6,446	)

Total derivative liabilities		-		7,342		3,837		(3,660	)		(2,786	)		4,733

Other long-term debt^(f)		-		10,258		508		-			-			10,766
Other liabilities^(g)		193		714		-		-			-			907

Total	$	193	$	18,314	$	5,263	$	(3,660	)	$	(2,786	)	$	17,324

(a): Represents netting of derivative exposures covered by a qualifying master netting agreement.
(b): Represents cash collateral posted and received. Securities collateral posted for derivative transactions that is reflected in Fixed maturity securities in the Consolidated Balance Sheet, and collateral received, not reflected in the Consolidated Balance Sheet, were $1.2 billion and $87 million, respectively, at March 31, 2012 and $1.8 billion and $100 million, respectively, at December 31, 2011.
(c): Included in Level 1 are $8.2 billion and $12.4 billion at March 31, 2012 and December 31, 2011, respectively, of AIA shares publicly traded on the Hong Kong Stock Exchange. Approximately 3 percent of the fair value of the assets recorded as Level 3 relate to various private equity, real estate, hedge fund and fund-of-funds investments that are consolidated by AIG at both March 31, 2012 and December 31, 2011. AIG's ownership in these funds represented 63.6 percent, or $0.9 billion, of Level 3 assets at March 31, 2012 and 57.3 percent, or $0.8 billion, of Level 3 assets at December 31, 2011.
(d): Included in Level 2 is the fair value of securities purchased under agreements to resell of $0.7 billion and $0.1 billion at March 31, 2012 and December 31, 2011, respectively.
(e): Included in Level 3 is the fair value derivative liability of $2.6 billion and $3.2 billion at March 31, 2012 and December 31, 2011, respectively, on the super senior credit default swap portfolio.
(f): Includes Guaranteed Investment Agreements (GIAs), notes, bonds, loans and mortgages payable.
(g): Included in Level 2 is the fair value of securities sold under agreements to repurchase and securities and spot commodities sold but not yet purchased, of $1.4 billion and $53 million, respectively, at March 31, 2012. Included in Level 2 is the fair value of securities sold under agreements to repurchase, securities and spot commodities sold but not yet purchased and trust deposits and deposits due to banks and other depositors, of $0.6 billion, $144 million and $6 million, respectively, at December 31, 2011.

TRANSFERS OF LEVEL 1 AND LEVEL 2 ASSETS AND LIABILITIES

AIG's policy is to record transfers of assets and liabilities between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. AIG had no material transfers between Level 1 and Level 2 during the three-month period ended March 31, 2012.

CHANGES IN LEVEL 3 RECURRING FAIR VALUE MEASUREMENTS

The following tables present changes during the three-month period ended March 31, 2012 and 2011 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) recorded in the Consolidated Statement of Operations during those periods related to the Level 3 assets and liabilities that remained in the Consolidated Balance Sheet at March 31, 2012 and 2011:

(in millions)	Fair value Beginning of Period^(a)			Net Realized and Unrealized Gains (Losses) Included in Income			Accumulated Other Comprehensive Income (Loss)			Purchases, Sales, Issues and Settlements, Net			Gross Transfers in			Gross Transfers out			Fair value End of Period			Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period



Three Months Ended March 31, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	960		$	1		$	16		$	100		$	-		$	(23	)	$	1,054		$	-
Non-U.S. governments		9			-			8			(2	)		-			-			15			-
Corporate debt		1,935			(16	)		76			(3	)		291			(960	)		1,323			-
RMBS		10,877			(70	)		793			1,326			348			(34	)		13,240			-
CMBS		3,955			(69	)		287			11			31			(42	)		4,173			-
CDO/ABS		4,220			14			177			70			438			(37	)		4,882			-

Total bonds available for sale		21,956			(140	)		1,357			1,502			1,108			(1,096	)		24,687			-

Bond trading securities:
Corporate debt		7			-			-			(2	)		-			-			5			-
RMBS		303			33			-			(19	)		-			(3	)		314			39
CMBS		554			33			-			(135	)		32			(51	)		433			85
CDO/ABS		8,432			1,621			-			(1,637	)		-			-			8,416			2,122

Total bond trading securities		9,296			1,687			-			(1,793	)		32			(54	)		9,168			2,246

Equity securities available for sale:
Common stock		57			14			(12	)		(14	)		5			-			50			-
Preferred stock		99			2			8			8			-			(11	)		106			-

Total equity securities available for sale		156			16			(4	)		(6	)		5			(11	)		156			-

Mortgage and other loans receivable		1			-			-			-			-			-			1			-
Other invested assets		6,618			(147	)		210			101			742			(338	)		7,186			(4	)

Total	$	38,027		$	1,416		$	1,563		$	(196	)	$	1,887		$	(1,499	)	$	41,198		$	2,242

Liabilities:
Policyholder contract deposits	$	(918	)	$	139		$	-		$	(3	)	$	-		$	-		$	(782	)	$	(144	)
Derivative liabilities, net:
Interest rate contracts		785			-			-			(7	)		-			-			778			(23	)
Foreign exchange contracts		2			-			-			(2	)		-			-			-			-
Equity contracts		28			12			-			2			(2	)		-			40			10
Commodity contracts		2			-			-			-			-			-			2			-
Credit contracts		(3,273	)		(143	)		-			711			-			-			(2,705	)		(525	)
Other contracts		33			(410	)		9			412			(81	)		-			(37	)		24

Total derivative liabilities, net		(2,423	)		(541	)		9			1,116			(83	)		-			(1,922	)		(514	)

Other long-term debt^(b)		(508	)		(110	)		(77	)		114			-			6			(575	)		(104	)

Total	$	(3,849	)	$	(512	)	$	(68	)	$	1,227		$	(83	)	$	6		$	(3,279	)	$	(762	)

(in millions)	Fair value Beginning of Period^(a)			Net Realized and Unrealized Gains (Losses) Included in Income			Accumulated Other Comprehensive Income (Loss)			Purchases, Sales, Issues and Settlements, Net			Gross Transfers In			Gross Transfers Out			Fair value End of Period			Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period



Three Months Ended March 31, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	609		$	-		$	4		$	112		$	-		$	(23	)	$	702		$	-
Non-U.S. governments		5			-			-			-			-			-			5			-
Corporate debt		2,262			(3	)		7			(33	)		226			(1,224	)		1,235			-
RMBS		6,367			(81	)		533			38			11			-			6,868			-
CMBS		3,604			(27	)		664			72			25			(22	)		4,316			-
CDO/ABS		4,241			20			238			(455	)		72			(259	)		3,857			-

Total bonds available for sale		17,088			(91	)		1,446			(266	)		334			(1,528	)		16,983			-

Bond trading securities:
Corporate debt		-			-			-			-			18			-			18			-
RMBS		91			2			-			6			-			-			99			2
CMBS		506			38			-			(58	)		81			(44	)		523			39
CDO/ABS		9,431			1,030			5			(5	)		-			-			10,461			1,027

Total bond trading securities		10,028			1,070			5			(57	)		99			(44	)		11,101			1,068

Equity securities available for sale:
Common stock		61			15			(2	)		(15	)		6			(2	)		63			-
Preferred stock		64			(2	)		-			1			-			-			63			-

Total equity securities available for sale		125			13			(2	)		(14	)		6			(2	)		126			-

Equity securities trading		1			-			-			-			-			-			1			-
Other invested assets		7,414			53			343			(350	)		-			(390	)		7,070			(192	)

Total	$	34,656		$	1,045		$	1,792		$	(687	)	$	439		$	(1,964	)	$	35,281		$	876

Liabilities:
Policyholder contract deposits	$	(445	)	$	79		$	-		$	(3	)	$	-		$	-		$	(369	)	$	(93	)
Derivative liabilities, net:
Interest rate contracts		732			(116	)		-			3			-			-			619			(25	)
Foreign exchange contracts		16			-			-			-			-			-			16			-
Equity contracts		22			(7	)		-			38			-			(19	)		34			(7	)
Commodity contracts		23			3			-			(11	)		-			-			15			2
Credit contracts		(3,798	)		382			-			(4	)		-			-			(3,420	)		381
Other contracts		(112	)		4			25			50			-			27			(6	)		(70	)

Total derivatives liabilities, net		(3,117	)		266			25			76			-			8			(2,742	)		281

Other long-term debt^(b)		(982	)		(54	)		-			61			(21	)		-			(996	)		(42	)

Total	$	(4,544	)	$	291		$	25		$	134		$	(21	)	$	8		$	(4,107	)	$	146

(a): Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.
(b): Includes GIAs, notes, bonds, loans and mortgages payable.

Net realized and unrealized gains and losses related to Level 3 items shown above are reported in the Consolidated Statement of Operations as follows:

(in millions)	Net Investment Income			Net Realized Capital Gains (Losses)			Other Income			Total



Three Months Ended March 31, 2012
Bonds available for sale	$	231		$	(375	)	$	4		$	(140	)
Bond trading securities		1,549			-			138			1,687
Equity securities available for sale		-			16			-			16
Other invested assets		(14	)		(132	)		(1	)		(147	)
Policyholder contract deposits		-			139			-			139
Derivative liabilities, net		(1	)		19			(559	)		(541	)
Other long-term debt		-			-			(110	)		(110	)

Three Months Ended March 31, 2011
Bonds available for sale	$	81		$	(176	)	$	4		$	(91	)
Bond trading securities		1,001			-			69			1,070
Equity securities available for sale		-			13			-			13
Other invested assets		46			(15	)		22			53
Policyholder contract deposits		-			79			-			79
Derivative liabilities, net		-			(54	)		320			266
Other long-term debt		-			-			(54	)		(54	)

The following table presents the gross components of purchases, sales, issues and settlements, net, shown above:

(in millions)	Purchases		Sales			Settlements			Purchases, Sales, Issues and Settlements, Net^(a)



Three Months Ended March 31, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	108	$	(8	)	$	-		$	100
Non-U.S. governments		-		(2	)		-			(2	)
Corporate debt		61		(1	)		(63	)		(3	)
RMBS		1,912		(94	)		(492	)		1,326
CMBS		126		(64	)		(51	)		11
CDO/ABS		317		(4	)		(243	)		70

Total bonds available for sale		2,524		(173	)		(849	)		1,502

Bond trading securities:
Corporate debt		-		-			(2	)		(2	)
RMBS		-		-			(19	)		(19	)
CMBS		113		(57	)		(191	)		(135	)
CDO/ABS		-		(310	)		(1,327	)		(1,637	)

Total bond trading securities		113		(367	)		(1,539	)		(1,793	)

Equity securities available for sale:
Common stock		-		(14	)		-			(14	)
Preferred stock		11		-			(3	)		8

Total equity securities available for sale		11		(14	)		(3	)		(6	)

Other invested assets		266		(4	)		(161	)		101

Total assets	$	2,914	$	(558	)	$	(2,552	)	$	(196	)

Liabilities:
Policyholder contract deposits	$	-	$	(6	)	$	3		$	(3	)
Derivative liabilities, net:
Interest rate contracts		-		-			(7	)		(7	)
Foreign exchange contracts		-		-			(2	)		(2	)
Equity contracts		2		-			-			2
Credit contracts		-		-			711			711
Other contracts		-		-			412			412

Total derivative liabilities, net		2		-			1,114			1,116

Other long-term debt^(b)		-		-			114			114

Total liabilities	$	2	$	(6	)	$	1,231		$	1,227

(in millions)	Purchases		Sales			Settlements			Purchases, Sales, Issues and Settlements, Net^(a)



Three Months Ended March 31, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	113	$	-		$	(1	)	$	112
Corporate debt		8		(19	)		(22	)		(33	)
RMBS		317		(13	)		(266	)		38
CMBS		142		-			(70	)		72
CDO/ABS		65		-			(520	)		(455	)

Total bonds available for sale		645		(32	)		(879	)		(266	)

Bond trading securities:
RMBS		-		-			6			6
CMBS		-		(5	)		(53	)		(58	)
CDO/ABS		3		-			(8	)		(5	)

Total bond trading securities		3		(5	)		(55	)		(57	)

Equity securities available for sale:
Common stock		-		(15	)		-			(15	)
Preferred stock		-		-			1			1
Mutual funds		-		-			-			-

Total equity securities available for sale		-		(15	)		1			(14	)

Other invested assets		114		(12	)		(452	)		(350	)

Total assets	$	762	$	(64	)	$	(1,385	)	$	(687	)

Liabilities:
Policyholder contract deposits	$	-	$	(9	)	$	6		$	(3	)
Derivative liabilities, net:
Interest rate contracts		-		-			3			3
Equity contracts		39		-			(1	)		38
Commodity contracts		-		-			(11	)		(11	)
Credit contracts		-		-			(4	)		(4	)
Other contracts		-		-			50			50

Total derivative liabilities, net		39		-			37			76

Other long-term debt^(b)		-		-			61			61

Total liabilities	$	39	$	(9	)	$	104		$	134

(a): There were no issues during the three-month periods ended March 31, 2012 and 2011.
(b): Includes GIAs, notes, bonds, loans and mortgages payable.

Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3 in the tables above. As a result, the unrealized gains (losses) on instruments held at March 31, 2012 and 2011 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).

Transfers of Level 3 Assets and Liabilities

AIG's policy is to record transfers of assets and liabilities into or out of Level 3 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. As a result, the Net realized and unrealized gains (losses) included in income or other comprehensive income and as shown in the table above excludes $58 million of net losses related to assets and liabilities transferred into Level 3 during the three-month period ended March 31, 2012, and includes $27 million of net gains related to assets and liabilities transferred out of Level 3 during the three-month period ended March 31, 2012.

Transfers of Level 3 Assets

During the three-month period ended March 31, 2012, transfers into Level 3 included certain residential mortgage-backed securities (RMBS), asset-backed securities (ABS), private placement corporate debt and certain private equity funds and hedge funds. Transfers into Level 3 for certain RMBS and certain ABS were related to decreased observations of market transactions and price information for those securities. The transfers into Level 3 of investments in certain other RMBS were due to a decrease in market transparency, downward credit migration and an overall increase in price disparity for certain individual security types. Transfers into Level 3 for private placement corporate debt and certain other ABS were primarily the result of limited market pricing information that required AIG to determine fair value for these securities based on inputs that are adjusted to better reflect AIG's own assumptions regarding the characteristics of a specific security or associated market liquidity. Certain private equity fund and hedge fund investments were transferred into Level 3 due to these investments being carried at fair value and no longer being accounted for using the equity method of accounting, consistent with the changes to AIG's ownership and lack of ability to exercise significant influence over the respective investments. Other hedge fund investments were transferred into Level 3 as a result of limited market activity due to fund-imposed redemption restrictions.

Assets are transferred out of Level 3 when circumstances change such that significant inputs can be corroborated with market observable data. This may be due to a significant increase in market activity for the asset, a specific event, one or more significant input(s) becoming observable or a long-term interest rate significant to a valuation becoming short-term and thus observable. In addition, transfers out of Level 3 also occur when investments are no longer carried at fair value as the result of a change in the applicable accounting methodology, given changes in the nature and extent of AIG's ownership interest. During the three-month period ended March 31, 2012, transfers out of Level 3 primarily related to investments in private placement corporate debt and certain private equity funds and hedge funds. Transfers out of Level 3 for private placement corporate debt were primarily the result of AIG using observable pricing information that appropriately reflects the fair value of those securities without the need for adjustment based on AIG's own assumptions regarding the characteristics of a specific security or the current liquidity in the market. Certain private equity funds and hedge funds were transferred out of Level 3, substantially all attributable to the hedge funds no longer being subject to fund-imposed redemption restrictions.

Transfers of Level 3 Liabilities

As AIG presents carrying values of its derivative positions on a net basis in the table above, transfers into Level 3 liabilities, which totaled approximately $83 million during the three-month period ended March 31, 2012, primarily related to certain derivative assets transferred out of Level 3 because of the presence of observable inputs on certain forward commitments. Other transfers into Level 3 liabilities were due to movement in market variables. During the three-month period ended March 31, 2012, there were no significant transfers out of Level 3 liabilities.

AIG uses various hedging techniques to manage risks associated with certain positions, including those classified within Level 3. Such techniques may include the purchase or sale of financial instruments that are classified within Level 1 and/or Level 2. As a result, the realized and unrealized gains (losses) for assets and liabilities classified within Level 3 presented in the table above do not reflect the related realized or unrealized gains (losses) on hedging instruments that are classified within Level 1 and/or Level 2.

FAIR VALUE MEASUREMENTS ON A NON-RECURRING BASIS

See Notes 2(c), (e), (f) and (g) to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K for additional information about how AIG measures the fair value of certain assets on a non-recurring basis and how AIG tests various asset classes for impairment.

The following table presents assets (held as of the dates presented, but excluding discontinued operations) measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented:

									Impairment Charges


	Assets at Fair Value								Impairment Charges
	Assets at Fair Value								Three Months Ended March 31,
	Non-Recurring Basis								Three Months Ended March 31,
(in millions)	Level 1		Level 2		Level 3		Total		2012		2011

March 31, 2012
Investment real estate	$	-	$	-	$	-	$	-	$	-	$	12
Other investments		-		-		1,621		1,621		93		106
Aircraft^*		-		-		94		94		54		114
Other assets		-		-		18		18		8		-

Total	$	-	$	-	$	1,733	$	1,733	$	155	$	232

December 31, 2011
Investment real estate	$	-	$	-	$	457	$	457
Other investments		-		-		2,199		2,199
Aircraft		-		-		1,683		1,683
Other assets		-		-		4		4

Total	$	-	$	-	$	4,343	$	4,343

*: Aircraft impairment charges include fair value adjustments on aircraft.

QUANTITATIVE INFORMATION ABOUT LEVEL 3 FAIR VALUE MEASUREMENTS

The table below presents information about the significant unobservable inputs used for recurring fair value measurements for certain Level 3 instruments, and includes only those instruments for which information about the inputs is reasonably available to AIG, such as data from pricing vendors and from internal valuation models. Because not all Level 3 instruments have input information reasonably available to AIG, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities:

(in millions)	Fair Value at March 31, 2012		Valuation Technique	Unobservable Input^(a)	Range/ (Weighted Average)^(a)



Assets:
Corporate debt	$	685	Discounted cash flow	Yield^(b)	2.37% - 11.08% (6.73%)
Residential mortgage backed securities		12,326	Discounted cash flow	Constant prepayment rate^(c)	0.00% - 16.89% (8.02%)
				Loss severity^(c)	44.10% - 79.01% (61.56%)
				Constant default rate^(c)	4.34% - 13.83% (9.09%)
				Yield^(c)	4.09% - 11.80% (7.95%)
Certain CDO/ABS		1,961	Discounted cash flow	Constant prepayment rate^(c)	0.00% - 49.80% (18.55%)
				Loss severity^(c)	0.00% - 19.46% (3.22%)
				Constant default rate^(c)	0.00% - 2.29% (0.38%)
				Yield^(c)	2.29% - 6.57% (4.43%)
Commercial mortgage backed securities		2,665	Discounted cash flow	Yield^(c)	0.00% - 24.52% (11.58%)
Maiden Lane III		6,916	Discounted cash flow	Yield^(b)	10.93%
CDO/ABS – Direct Investment book		1,579	Binomial Expansion	Recovery rates^(b)	3% - 65% (33%)
			Technique (BET)	Diversity score^(b)	5 - 75 (10)
				Weighted average life^(b)	1.40-9.65 years (4.60 years)

Liabilities :
Policyholder contract deposits – GMWB		509	Discounted cash flow	Equity implied volatility^(b)	5.0% - 40.0%
				Base lapse rates^(b)	1.0% - 40.0%
				Dynamic lapse rates^(b)	0.2% - 60.0%
				Mortality rates^(b)	0.5% - 40.0%
				Utilization rates^(b)	0.5% - 25.0%
Derivative Liabilities – Credit contracts		1,822	BET	Recovery rates^(b)	3% - 37% (17%)
				Diversity score^(b)	6 - 44 (13)
				Weighted average life^(b)	5.27-9.65 years (6.41 years)

(a): The unobservable inputs and ranges for the constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by AIG. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by AIG because there are other factors relevant to the specific tranches owned by AIG including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points.
(b): Represents discount rates, estimates and assumptions that AIG believes would be used by market participants when valuing these assets and liabilities.
(c): Information received from independent third-party valuation service providers.

The ranges of reported inputs for Corporate debt, RMBS, CDO/ABS, and CMBS valued using a discounted cash flow technique consist of +/-one standard deviation in either direction from the value-weighted average. The preceding table does not give effect to AIG's risk management practices that might offset risks inherent in these investments.

Sensitivity to Changes in Unobservable Inputs

AIG considers unobservable inputs to be those for which market data is not available and that are developed using the best information available to AIG about the assumptions that market participants would use when pricing the asset or liability. Relevant inputs vary depending on the nature of the instrument being measured at fair value. The effect of a change in a particular assumption in the sensitivity analysis below is considered independently of changes in any other assumptions. In practice, simultaneous changes in assumptions may not always have a linear effect on the inputs discussed above.

Corporate Debt

Corporate debt securities included in Level 3 are primarily private placement issuances that are not traded in active markets or that are subject to transfer restrictions. Fair value measurements consider illiquidity and non-transferability. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discount rates based on credit spreads, yields or price levels of publicly-traded debt of the issuer or other comparable securities, considering illiquidity and structure. The significant unobservable input used in the fair value measurement of corporate debt is the yield. The yield is affected by the market movements in credit spreads and U.S. Treasury yields. In addition, the migration in credit quality of a given security generally has a corresponding effect on the fair value measurement of the securities. For example, a downward migration of credit quality would increase spreads. Holding U.S. Treasury rates constant, an increase in corporate credit spreads would decrease the fair value of corporate debt.

RMBS and Certain CDO/ABS

The significant unobservable inputs used in fair value measurements of residential mortgage backed securities and certain CDO/ABS valued by third-party valuation service providers are constant prepayment rates (CPR), constant default rates (CDR), and loss severity. Changes in any of the significant unobservable inputs may affect other inputs used in determining fair value. A change in the assumptions used for the probability of default will generally be accompanied by a corresponding change in the assumption used for the loss severity and an inverse change in the assumption used for prepayment rates. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship between the directional change of each input is not usually linear.

CMBS

The significant unobservable input used in fair value measurements for commercial mortgage backed securities is the yield. Prepayment assumptions for each mortgage pool are factored into the yield. CMBS generally feature a lower degree of prepayment risk than RMBS because commercial mortgages generally contain a penalty for prepayment. Increases in the yield would decrease the fair value of CMBS.

Maiden Lane III

Since inception, AIG's interest in ML III has been valued using a discounted cash flow methodology that (i) uses the estimated future cash flows and the fair value of the ML III assets, (ii) allocates the estimated future cash flows according to the ML III waterfall, and (iii) determines the discount rate to be applied to AIG's interest in ML III by reference to the discount rate implied by the estimated value of ML III assets and the estimated future cash flows of AIG's interest in the capital structure. Estimated cash flows and discount rates used in the valuations are validated, to the extent possible, using market observable information for securities with similar asset pools, structure and terms.

The fair value of AIG's interest in ML III is most affected by changes in the discount rates and changes in the estimated future collateral cash flows used in the valuation. In general, an increase in the discount rate will lead to a decrease in the value of the portfolio and vice versa. The changes, however, are asymmetrical with decreases in discount rates having a more pronounced effect on the value of the ML III portfolio. Changes in estimated future cash flows for ML III are the result of changes in interest rates and their effect on the underlying floating rate securities as well as expectations of defaults, recoveries and prepayments on underlying loans. Changes in estimated future cash flows have an almost symmetrical and almost linear effect on the value of ML III.

Interest rates are generally indexed to the London Interbank Offered Rate (LIBOR). LIBOR interest rate curve changes are determined based on observable prices, interpolated or extrapolated to derive a LIBOR curve for a specific maturity term as necessary. The spreads over LIBOR used to value the ML III interests can change as a result of changes in market expectations about the future performance of this investment as well as changes in the risk premium that market participants would demand at the time of the transactions.

Changes in the discount rate or the estimated future cash flows used in the valuation would alter AIG's estimate of the fair value of AIG's interest in ML III as shown in the table below.

Three Months Ended March 31, 2012 (in millions)	Maiden Lane III Fair Value Change



Discount Rates:
200 basis point increase	$	(717	)
200 basis point decrease		824
400 basis point increase		(1,346	)
400 basis point decrease		1,777

Estimated Future Cash Flows:
10% increase		711
10% decrease		(720	)
20% increase		1,415
20% decrease		(1,451	)

AIG believes that the ranges of discount rates used in these analyses are reasonable on the basis of implied spread volatilities of similar collateral securities. The ranges of estimated future cash flows were determined on the basis of historical variability in the estimated cash flows. Therefore, the fair value of AIG's interest in ML III is likely to vary, perhaps materially, from the amounts estimated.

On April 26, 2012, the FRBNY announced that it had sold $7.5 billion of certain assets of ML III pursuant to a competitive bid process that it conducted. If AIG had adopted a liquidation valuation methodology at March 31, 2012, the impact would have increased the fair value of AIG's interest in ML III by approximately $450 million.

Because the announcement of the asset auction and the auction itself occurred after March 31, 2012, AIG believes a change in the fair value methodology used for its interest in ML III is not appropriate at March 31, 2012. Adjustments to the fair value of AIG's interest in ML III are recorded in the Consolidated Statement of Operations in Net investment income for AIG's Other operations.

CDO/ABS – Direct Investment book

The significant unobservable inputs used for certain CDO/ABS securities valued using the BET are recovery rates, diversity score, and the weighted average life of the portfolio. An increase in recovery rates and diversity score will have a directionally similar corresponding impact on the fair value measurement of the portfolio. An increase in the weighted average life will decrease the fair value.

Policyholder contract deposits

The significant unobservable inputs used for embedded derivatives in policyholder contract deposits measured at fair value, mainly guaranteed minimum withdrawal benefits (GMWB) for variable annuity products, are equity volatility, mortality rates, lapse rates and utilization rates. In general, increases in volatilities and utilization rates will increase the fair value, while increases in lapse rates and mortality rates will decrease the fair value of the liability associated with the GMWB.

Derivative liabilities – credit contracts

The significant unobservable inputs used for Derivatives liabilities – credit contracts are recovery rates, diversity scores, and the weighted average life of the portfolio. AIG non-performance risk is also considered in the measurement of the liability. See Note 6 to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K for a discussion of AIG's accounting policies and procedures regarding incorporation of AIG's own credit risk in fair value measurements.

An increase in recovery rates and diversity score will decrease the fair value of the liability. An increase in the weighted average life will have a directionally similar corresponding effect on the fair value measurement of the liability.

INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE

The following table includes information related to AIG's investments in certain other invested assets, including private equity funds, hedge funds and other alternative investments that calculate net asset value per share (or its equivalent). For these investments, which are measured at fair value on a recurring or non-recurring basis, AIG uses the net asset value per share as a practical expedient to measure fair value.

		March 31, 2012				December 31, 2011


(in millions)	Investment Category Includes	Fair Value Using Net Asset Value		Unfunded Commitments		Fair Value Using Net Asset Value		Unfunded Commitments

Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	3,244	$	900	$	3,185	$	945
Non-U.S.	Investments that focus primarily on Asian and European based buyouts, expansion capital, special situations, turnarounds, venture capital, mezzanine and distressed opportunities strategies		171		54		165		57
Venture capital	Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company		301		37		316		39
Distressed	Securities of companies that are already in default, under bankruptcy protection, or troubled		189		38		182		42
Other	Real estate, energy, multi-strategy, mezzanine, and industry-focused strategies		372		150		252		98

Total private equity funds			4,277		1,179		4,100		1,181

Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		872		2		774		2
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,097		-		927		-
Relative value	Funds that seek to benefit from market inefficiencies and value discrepancies between related investments		48		-		52		-
Distressed	Securities of companies that are already in default, under bankruptcy protection or troubled		289		-		272		10
Other	Non-U.S. companies, futures and commodities, macro and multi-strategy and industry-focused strategies		736		-		748		-

Total hedge funds			3,042		2		2,773		12

Total		$	7,319	$	1,181	$	6,873	$	1,193

At March 31, 2012, private equity fund investments included above are not redeemable during the lives of the funds and have expected remaining lives that extend in some cases more than 10 years. At that date, 44 percent of the total above had expected remaining lives of less than three years, 54 percent between three and seven years and 2 percent between seven and 10 years. Expected lives are based upon legal maturity, which can be extended at the fund manager's discretion, typically in one-year increments.

At March 31, 2012, hedge fund investments included above are redeemable monthly (10 percent), quarterly (35 percent), semi-annually (25 percent) and annually (30 percent), with redemption notices ranging from 1 day to 180 days. More than 62 percent of these hedge fund investments require redemption notices of less than 90 days. Investments representing approximately 55 percent of the value of the hedge fund investments cannot be redeemed, either in whole or in part, because the investments include various restrictions. The majority of these restrictions were put in place prior to 2009 and do not have stated end dates. The restrictions that have pre-defined end dates are generally expected to be lifted by the end of 2015. The partial restrictions relate to certain hedge funds that hold at least one investment that the fund manager deems to be illiquid.

FAIR VALUE OPTION

The following table presents the gains or losses recorded related to the eligible instruments for which AIG elected the fair value option:

Three Months Ended March 31,	Gain (Loss)


(in millions)	2012			2011

Assets:
Mortgage and other loans receivable	$	22		$	(5	)
Bonds and equity securities		644			902
Trading – ML II interest		246			251
Trading – ML III interest		1,252			744
Retained interest in AIA		1,795			1,062
Short-term investments and other invested assets and Other assets		4			16

Liabilities:
Other long-term debt^(a)		(446	)		(44	)
Other liabilities		(48	)		(112	)

Total gain^(b)	$	3,469		$	2,814

(a): Includes GIAs, notes, bonds, loans and mortgages payable.
(b): Excludes discontinued operation gains or losses on instruments that were required to be carried at fair value in 2011. For instruments required to be carried at fair value, AIG recognized gains of $0.6 billion and $1.0 billion for the three months ended March 31, 2012 and 2011, respectively, that were primarily due to changes in the fair value of derivatives, trading securities and certain other invested assets for which the fair value option was not elected.

See Note 2(a) to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K for additional information about AIG's policies for recognition, measurement, and disclosure of interest and dividend income and interest expense.

During the three-month periods ended March 31, 2012 and 2011, AIG recognized losses of $558 million and $41 million, respectively, attributable to the observable effect of changes in credit spreads on AIG's own liabilities for which the fair value option was elected. AIG calculates the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, AIG's observable credit spreads on these liabilities and other factors that mitigate the risk of nonperformance such as cash collateral posted.

The following table presents the difference between fair values and the aggregate contractual principal amounts of mortgage and other loans receivable and long-term borrowings for which the fair value option was elected:

	March 31, 2012							December 31, 2011


(in millions)	Fair Value		Outstanding Principal Amount		Difference			Fair Value		Outstanding Principal Amount		Difference

Assets:
Mortgage and other loans receivable	$	114	$	139	$	(25	)	$	107	$	150	$	(43	)
Liabilities:
Other long-term debt*	$	10,580	$	8,330	$	2,250		$	10,766	$	8,624	$	2,142

*: Includes GIAs, notes, bonds, loans and mortgages payable.

At March 31, 2012 and December 31, 2011, there were no significant mortgage or other loans receivable for which the fair value option was elected that were 90 days or more past due and in non-accrual status.

FAIR VALUE INFORMATION ABOUT FINANCIAL INSTRUMENTS NOT MEASURED AT FAIR VALUE

The following table presents the carrying value and estimated fair value of AIG's financial instruments not measured at fair value and indicates the level of the estimated fair value measurement based on the levels of the inputs used:

	Estimated Fair Value


	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total		Carrying Value

March 31, 2012
Assets:
Mortgage and other loans receivable	$	-	$	668	$	20,290	$	20,958	$	19,405
Other invested assets		-		462		4,098		4,560		4,864
Short-term investments		-		14,351		-		14,351		16,381
Cash		1,315		-		-		1,315		1,315
Liabilities:
Policyholder contract deposits associated with investment-type contracts		-		281		123,597		123,878		107,019
Other liabilities		-		-		476		476		476
Long-term debt		14,991		49,523		2,700		67,214		65,517

December 31, 2011
Assets:
Mortgage and other loans receivable							$	20,494	$	19,382
Other invested assets								3,390		4,701
Short-term investments								16,657		16,659
Cash								1,474		1,474
Liabilities:
Policyholder contract deposits associated
with investment-type contracts								122,125		106,950
Long-term debt								61,295		64,487

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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+ Details

INVESTMENTS

3 Months Ended

Mar. 31, 2012

INVESTMENTS

INVESTMENTS

5. INVESTMENTS

SECURITIES AVAILABLE FOR SALE

The following table presents the amortized cost or cost and fair value of AIG's available for sale securities:

(in millions)	Amortized Cost or Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Other-Than- Temporary Impairments in AOCI^(a)



March 31, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	4,456	$	332	$	(2	)	$	4,786	$	-
Obligations of states, municipalities and political subdivisions		35,096		2,657		(71	)		37,682		(25	)
Non-U.S. governments		25,106		1,066		(50	)		26,122		-
Corporate debt		135,350		12,040		(910	)		146,480		134
Mortgage-backed, asset-backed and collateralized:
RMBS		33,956		1,865		(770	)		35,051		191
CMBS		8,274		470		(681	)		8,063		(151	)
CDO/ABS		7,926		568		(316	)		8,178		103

Total mortgage-backed, asset-backed and collateralized		50,156		2,903		(1,767	)		51,292		143

Total bonds available for sale^(b)		250,164		18,998		(2,800	)		266,362		252

Equity securities available for sale:
Common stock		1,636		1,268		(99	)		2,805		-
Preferred stock		87		67		-			154		-
Mutual funds		59		8		-			67		-

Total equity securities available for sale		1,782		1,343		(99	)		3,026		-

Other invested assets carried at fair value^(c)		5,220		1,783		(157	)		6,846		-

Total	$	257,166	$	22,124	$	(3,056	)	$	276,234	$	252

(in millions)	Amortized Cost or Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Other-Than- Temporary Impairments in AOCI^(a)



December 31, 2011
Bonds available for sale:
U.S. government and government sponsored entities	$	5,661	$	418	$	(1	)	$	6,078	$	-
Obligations of states, municipalities and political subdivisions		35,017		2,554		(73	)		37,498		(28	)
Non-U.S. governments		24,843		994		(102	)		25,735		-
Corporate debt		134,699		11,844		(1,725	)		144,818		115
Mortgage-backed, asset-backed and collateralized:
RMBS		34,780		1,387		(1,563	)		34,604		(716	)
CMBS		8,449		470		(973	)		7,946		(276	)
CDO/ABS		7,321		454		(473	)		7,302		49

Total mortgage-backed, asset-backed and collateralized		50,550		2,311		(3,009	)		49,852		(943	)

Total bonds available for sale^(b)		250,770		18,121		(4,910	)		263,981		(856	)

Equity securities available for sale:
Common stock		1,682		1,839		(100	)		3,421		-
Preferred stock		83		60		-			143		-
Mutual funds		55		6		(1	)		60		-

Total equity securities available for sale		1,820		1,905		(101	)		3,624		-

Other invested assets carried at fair value^(c)		5,155		1,611		(269	)		6,497		-

Total	$	257,745	$	21,637	$	(5,280	)	$	274,102	$	(856	)

(a): Represents the amount of other-than-temporary impairment losses recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.
(b): At March 31, 2012 and December 31, 2011, bonds available for sale held by AIG that were below investment grade or not rated totaled $27.8 billion and $24.2 billion, respectively.
(c): Represents private equity and hedge fund investments carried at fair value for which unrealized gains and losses are required to be recognized in other comprehensive income.

Unrealized Losses on Securities Available for Sale

The following table summarizes the fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position:

	Less than 12 Months				12 Months or More				Total


(in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

March 31, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	159	$	1	$	5	$	1	$	164	$	2
Obligations of states, municipalities and political subdivisions		996		24		276		47		1,272		71
Non-U.S. governments		2,366		20		333		30		2,699		50
Corporate debt		11,962		378		5,015		532		16,977		910
RMBS		4,322		242		2,933		528		7,255		770
CMBS		1,527		187		1,373		494		2,900		681
CDO/ABS		1,052		43		1,681		273		2,733		316

Total bonds available for sale		22,384		895		11,616		1,905		34,000		2,800

Equity securities available for sale:
Common stock		646		99		-		-		646		99
Preferred stock		2		-		-		-		2		-
Mutual funds		3		-		-		-		3		-

Total equity securities available for sale		651		99		-		-		651		99

Total	$	23,035	$	994	$	11,616	$	1,905	$	34,651	$	2,899

December 31, 2011
Bonds available for sale:
U.S. government and government sponsored entities	$	142	$	1	$	-	$	-	$	142	$	1
Obligations of states, municipalities and political subdivisions		174		1		669		72		843		73
Non-U.S. governments		3,992		67		424		35		4,416		102
Corporate debt		18,099		937		5,907		788		24,006		1,725
RMBS		10,624		714		4,148		849		14,772		1,563
CMBS		1,697		185		1,724		788		3,421		973
CDO/ABS		1,680		50		1,682		423		3,362		473

Total bonds available for sale		36,408		1,955		14,554		2,955		50,962		4,910

Equity securities available for sale:
Common stock		608		100		-		-		608		100
Preferred stock		6		-		-		-		6		-
Mutual funds		2		1		-		-		2		1

Total equity securities available for sale		616		101		-		-		616		101

Total	$	37,024	$	2,056	$	14,554	$	2,955	$	51,578	$	5,011

At March 31, 2012, AIG held 5,061 and 248 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 1,734 individual fixed maturity securities, were in a continuous unrealized loss position for longer than 12 months. AIG did not recognize the unrealized losses in earnings on these fixed maturity securities at March 31, 2012, because management neither intends to sell the securities nor does it believe that it is more likely than not that it will be required to sell these securities before recovery of their amortized cost basis. Furthermore, management expects to recover the entire amortized cost basis of these securities. In performing this evaluation, management considered the recovery periods for securities in previous periods of broad market declines. For fixed maturity securities with significant declines, management performed fundamental credit analysis on a security-by-security basis, which included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other available market data.

Contractual Maturities of Securities Available for Sale

The following table presents the amortized cost and fair value of fixed maturity securities available for sale by contractual maturity:

	Total Fixed Maturity Available for Sale Securities				Fixed Maturity Securities in a Loss Position


March 31, 2012 (in millions)	Total Fixed Maturity Available for Sale Securities				Fixed Maturity Securities in a Loss Position
March 31, 2012 (in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in one year or less	$	10,047	$	10,207	$	1,299	$	1,287
Due after one year through five years		57,759		60,423		7,061		6,818
Due after five years through ten years		69,670		74,753		7,245		6,917
Due after ten years		62,532		69,687		6,540		6,090
Mortgage-backed, asset-backed and collateralized		50,156		51,292		14,655		12,888

Total	$	250,164	$	266,362	$	36,800	$	34,000

Actual maturities may differ from contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without call or prepayment penalties.

The following table presents the gross realized gains and gross realized losses from sales or redemptions of AIG's available for sale securities:

	2012				2011


Three Months Ended March 31, (in millions)	Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses

Fixed maturities	$	490	$	16	$	188	$	55
Equity securities		451		3		105		2

Total	$	941	$	19	$	293	$	57

For the three-month period ended March 31, 2012 and March 31, 2011, the aggregate fair value of available for sale securities sold was $10.9 billion and $11.5 billion, respectively which resulted in net realized capital gains of $0.9 billion and $0.2 billion, respectively.

TRADING SECURITIES

The following table presents the fair value of AIG's trading securities:

	March 31, 2012					December 31, 2011


(in millions)	Fair Value		Percent of Total			Fair Value		Percent of Total

Fixed Maturities:
U.S. government and government sponsored entities	$	7,456		30	%	$	7,504		31	%
Non-U.S. governments		36		-			35		-
Corporate debt		1,093		4			816		3
State, territories and political subdivisions		236		1			257		1
Mortgage-backed, asset-backed and collateralized:
RMBS		1,653		7			1,648		7
CMBS		1,713		7			1,837		7
CDO/ABS and other collateralized		5,378		22			5,282		22

Total mortgage-backed, asset-backed and collateralized		8,744		36			8,767		36
ML II		-		-			1,321		5
ML III		6,916		28			5,664		23

Total fixed maturities		24,481		99			24,364		99

Equity securities		123		1			125		1

Total	$	24,604		100	%	$	24,489		100	%

EVALUATING INVESTMENTS FOR OTHER-THAN-TEMPORARY IMPAIRMENTS

For a discussion of AIG's policy for evaluating investments for other-than-temporary impairments, see Note 7 to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K.

CREDIT IMPAIRMENTS

The following table presents a rollforward of the credit impairments recognized in earnings for available for sale fixed maturity securities held by AIG, and includes structured, corporate, municipal and sovereign fixed maturity securities:

Three Months Ended March 31, (in millions)	2012			2011



Balance, beginning of year	$	6,504		$	6,786
Increases due to:
Credit impairments on new securities subject to impairment losses		137			52
Additional credit impairments on previously impaired securities		307			150
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell		(270	)		(170	)
Accretion on securities previously impaired due to credit*		(222	)		(100	)
Hybrid securities with embedded credit derivatives reclassified to Bond trading securities		-			(179	)
Other		8			1

Balance, end of period	$	6,464		$	6,540

*: Represents accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities as well as the accretion due to the passage of time.

Purchased Credit Impaired (PCI) Securities

Beginning in the second quarter of 2011, AIG purchased certain RMBS securities that had experienced deterioration in credit quality since their issuance. Management determined, based on its expectations as to the timing and amount of cash flows expected to be received, that it was probable at acquisition that AIG would not collect all contractually required payments, including both principal and interest and considering the effects of prepayments, for these PCI securities. At acquisition, the timing and amount of the undiscounted future cash flows expected to be received on each PCI security was determined based on management's best estimate using key assumptions, such as interest rates, default rates and prepayment speeds. At acquisition, the difference between the undiscounted expected future cash flows of the PCI securities and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into net investment income over their remaining lives on a level-yield basis. Additionally, the difference between the contractually required payments on the PCI securities and the undiscounted expected future cash flows represents the non-accretable difference at acquisition. Over time, based on actual payments received and changes in estimates of undiscounted expected future cash flows, the accretable yield and the non-accretable difference can change, as discussed further below.

On a quarterly basis, the undiscounted expected future cash flows associated with PCI securities are re-evaluated based on updates to key assumptions. Changes to undiscounted expected future cash flows due solely to the changes in the contractual benchmark interest rates on variable rate PCI securities will change the accretable yield prospectively. Declines in undiscounted expected future cash flows due to further credit deterioration as well as changes in the expected timing of the cash flows can result in the recognition of an other-than-temporary impairment charge, as PCI securities are subject to AIG's policy for evaluating investments for other-than-temporary impairment. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as an adjustment to the accretable yield.

The following tables present information on AIG's PCI securities, which are included in bonds available for sale:

(in millions)	At Date of Acquisition



Contractually required payments (principal and interest)	$	18,379
Cash flows expected to be collected*		14,198
Recorded investment in acquired securities		9,080

*: Represents undiscounted expected cash flows, including both principal and interest.

(in millions)	March 31, 2012		December 31, 2011



Outstanding principal balance	$	12,823	$	10,119
Amortized cost		8,170		7,006
Fair value		8,294		6,535

The following table presents activity for the accretable yield on PCI securities:

Three Months Ended March 31, 2012 (in millions)



Balance, beginning of period	$	4,135
Newly purchased PCI securities		1,222
Disposals		(47	)
Accretion		(168	)
Effect of changes in interest rate indices		(28	)
Net reclassification from non-accretable difference, including effects of prepayments		32

Balance, end of period	$	5,146

PLEDGED INVESTMENTS

Secured Financing and Similar Arrangements

AIG enters into financing transactions, whereby certain securities are transferred to financial institutions in exchange for cash or other liquid collateral. Securities transferred by AIG under these financing transactions may be sold or repledged by the counterparties. As collateral for the securities transferred by AIG, counterparties transfer assets, such as cash or high quality fixed maturity securities, and collateral levels are monitored daily and are generally maintained at an agreed-upon percentage of the fair value of the transferred securities during the life of the transactions. Where AIG receives fixed maturity securities as collateral, AIG does not have the right to sell or repledge this collateral unless an event of default occurs by the counterparties. At the termination of the transactions, AIG and its counterparties are obligated to return the collateral provided and the securities transferred, respectively. These transactions are treated as secured financing arrangements by AIG.

Secured financing transactions also include securities sold under agreements to repurchase (repurchase agreements), in which AIG transfers securities in exchange for cash, with an agreement by AIG to repurchase the same or substantially similar securities. In the majority of these repurchase agreements, the securities transferred by AIG may be sold or repledged by the counterparties.

Under the secured financing transactions described above, securities available for sale with a fair value of $4.4 billion and $2.3 billion at March 31, 2012 and December 31, 2011, respectively, and trading securities with a fair value of $4.5 billion and $0.7 billion at March 31, 2012 and December 31, 2011, respectively, were pledged to counterparties.

Prior to January 1, 2012, in the case of repurchase agreements where AIG did not obtain collateral sufficient to fund substantially all of the cost of purchasing identical replacement securities during the term of the contract (generally less than 90 percent of the security value), AIG accounted for the transaction as a sale of the security and reported the obligation to repurchase the security as a derivative contract. The fair value of securities transferred under repurchase agreements accounted for as sales was $1.8 billion and $2.1 billion at March 31, 2012 and December 31, 2011, respectively.

AIG also enters into agreements in which securities are purchased by AIG under agreements to resell (reverse repurchase agreements), which are accounted for as secured financing transactions and reported as short-term investments or other assets, depending on their terms. For these transactions, AIG takes possession of or obtains a security interest in the related securities, and AIG has the right to sell or repledge this collateral received. The fair value of securities collateral pledged to AIG was $7.4 billion and $6.8 billion at March 31, 2012 and December 31, 2011, respectively, of which $1.5 billion and $122 million was repledged by AIG.

Insurance – Statutory and Other Deposits

Total carrying values of cash and securities deposited by AIG's insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance agreements, were $9.0 billion and $9.8 billion at March 31, 2012 and December 31, 2011, respectively.

Other Pledges

Certain AIG subsidiaries are members of Federal Home Loan Banks (FHLBs), and such membership requires the members to own stock in these FHLBs. AIG subsidiaries owned $86 million and $77 million of stock in FHLBs at March 31, 2012 and December 31, 2011, respectively, which will be pledged to the FHLBs to the extent the member borrows via advances from the FHLBs. In addition, AIG has pledged securities available for sale with a fair value of $88 million at March 31, 2012 associated with advances from the FHLBs.

Generally, GIAs have provisions that require collateral to be posted by AIG upon a downgrade of AIG's long-term debt ratings or, at the election of AIG and as an alternative to posting collateral and subject to certain conditions, repayment by AIG of the transactions or the arrangement by AIG of a substitute guarantee of AIG's obligations by an obligor with higher long term debt ratings. The actual amount of collateral required to be posted to the counterparties in the event of such downgrades, and the aggregate amount of payments that AIG could be required to make, depends on market conditions, the fair value of outstanding affected transactions and other factors prevailing at and after the time of the downgrade. The fair value of trading securities pledged as collateral with respect to these obligations approximated $5.1 billion at both March 31, 2012 and December 31, 2011. This collateral primarily consists of securities of U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties.

- Definition

Tabular disclosure of investments in certain debt and equity securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

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+ Details

LENDING ACTIVITIES

3 Months Ended

Mar. 31, 2012

LENDING ACTIVITIES

LENDING ACTIVITIES

6. LENDING ACTIVITIES

The following table presents the composition of Mortgage and other loans receivable:

(in millions)	March 31, 2012			December 31, 2011



Commercial mortgages*	$	13,764		$	13,554
Life insurance policy loans		3,022			3,049
Commercial loans, other loans and notes receivable		3,441			3,626

Total mortgage and other loans receivable		20,227			20,229
Allowance for losses		(708	)		(740	)

Mortgage and other loans receivable, net	$	19,519		$	19,489

*: Commercial mortgages primarily represent loans for office, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (approximately 24 percent and 14 percent, respectively, at March 31, 2012 and December 31, 2011). Over 98 percent of the commercial mortgages were current as to payments of principal and interest at March 31, 2012 and December 31, 2011.

The following table presents the credit quality indicators for commercial mortgage loans:

March 31, 2012 (dollars in millions)	Number of Loans		Class														Percent of Total $


March 31, 2012 (dollars in millions)	Number of Loans		Apartments		Offices		Retail		Industrial		Hotel		Others		Total		Percent of Total $

Credit Quality Indicator:
In good standing		1,030	$	1,722	$	5,058	$	2,308	$	1,849	$	953	$	1,363	$	13,253		96	%
Restructured^(a)		7		49		205		7		-		-		21		282		2
90 days or less delinquent		10		-		-		-		-		-		9		9		-
>90 days delinquent or in process of foreclosure		11		-		99		-		44		-		77		220		2

Total^(b)		1,058	$	1,771	$	5,362	$	2,315	$	1,893	$	953	$	1,470	$	13,764		100	%

Valuation allowance			$	20	$	131	$	21	$	71	$	12	$	41	$	296		2	%

(a): Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below.
(b): Does not reflect valuation allowances.

ALLOWANCE FOR CREDIT LOSSES

Mortgage and other loans receivable are considered impaired when collection of all amounts due under contractual terms is not probable. For commercial mortgage loans in particular, the impairment is measured based on the fair value of underlying collateral, which is determined based on the present value of expected net future cash flows of the collateral, less estimated costs to sell. For other loans, the impairment may be measured based on the present value of expected future cash flows discounted at the loan's effective interest rate or based on the loan's observable market price, where available. An allowance is typically established for the difference between the impaired value of the loan and its current carrying amount. Additional allowance amounts are established for incurred but not specifically identified impairments, based on the analysis of internal risk ratings and current loan values. Internal risk ratings are assigned based on the consideration of risk factors including past due status, debt service coverage, loan-to-value ratio or the ratio of the loan balance to the estimated value of the property, property occupancy, profile of the borrower and of the major property tenants, economic trends in the market where the property is located, and condition of the property. These factors and the resulting risk ratings also provide a basis for determining the level of monitoring performed at both the individual loan and the portfolio level. When all or a portion of a commercial mortgage loan is deemed uncollectible, the uncollectible portion of the carrying value of the loan is charged off against the allowance.

A significant majority of commercial mortgage loans in the portfolio are non-recourse loans and, accordingly, the only guarantees are for specific items that are exceptions to the non-recourse provisions. It is therefore extremely rare for AIG to have cause to enforce the provisions of a guarantee on a commercial real estate or mortgage loan.

The following table presents a rollforward of the changes in the allowance for losses on Mortgage and other loans receivable:

	2012									2011


Three Months Ended March 31, (in millions)	Commercial Mortgages			Other Loans			Total			Commercial Mortgages			Other Loans			Total

Allowance, beginning of year	$	305		$	435		$	740		$	470		$	408		$	878
Loans charged off		(6	)		(28	)		(34	)		(29	)		(5	)		(34	)
Recoveries of loans previously charged off		2			-			2			33			-			33

Net charge-offs		(4	)		(28	)		(32	)		4			(5	)		(1	)
Provision for loan losses		(5	)		6			1			(21	)		18			(3	)
Other		-			(1	)		(1	)		(31	)		-			(31	)

Allowance, end of period	$	296	*	$	412		$	708		$	422	*	$	421		$	843

*: Of the total, $60 million and $100 million relates to individually assessed credit losses on $442 million and $635 million of commercial mortgage loans as of March 31, 2012 and 2011, respectively.

As of March 31, 2012, there were no significant loans held by AIG that had been modified in a troubled debt restructuring during 2012.

- Definition

The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables.

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+ Details

VARIABLE INTEREST ENTITIES

3 Months Ended

Mar. 31, 2012

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

7. VARIABLE INTEREST ENTITIES

AIG enters into various arrangements with variable interest entities (VIEs) in the normal course of business. AIG's involvement with VIEs is primarily through its insurance companies as a passive investor in debt securities (rated and unrated) and equity interests issued by VIEs. When AIG holds both an economic interest and the power to direct the most significant activities of the VIE, AIG is deemed to be the primary beneficiary and consolidates the VIE.

EXPOSURE TO LOSS

AIG's total off-balance sheet exposure associated with VIEs, primarily consisting of financial guarantees and commitments to real estate and investment funds, was $0.3 billion and $0.4 billion at March 31, 2012 and December 31, 2011, respectively.

The following table presents AIG's total assets, total liabilities and off-balance sheet exposure associated with its variable interests in consolidated VIEs:

	VIE Assets^(a)				VIE Liabilities				Off-Balance Sheet Exposure


(in billions)	March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011

AIA/ALICO SPVs^(b)	$	1.8	$	14.2	$	0.1	$	0.1	$	-	$	-
Real estate and investment funds		1.5		1.5		0.4		0.4		0.1		0.1
Commercial paper conduit		0.2		0.5		-		0.2		-		-
Affordable housing partnerships		2.5		2.5		0.2		0.1		-		-
Other		4.8		4.1		1.3		1.8		-		-

Total	$	10.8	$	22.8	$	2.0	$	2.6	$	0.1	$	0.1

(a): The assets of each VIE can be used only to settle specific obligations of that VIE.
(b): Decrease primarily due to the retirement of the AIA SPV Preferred Interests. See Note 1 herein for further discussion.

AIG calculates its maximum exposure to loss to be (i) the amount invested in the debt or equity of the VIE, (ii) the notional amount of VIE assets or liabilities where AIG has also provided credit protection to the VIE with the VIE as the referenced obligation, and (iii) other commitments and guarantees to the VIE. Interest holders in VIEs sponsored by AIG generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to AIG, except in limited circumstances when AIG has provided a guarantee to the VIE's interest holders.

The following table presents total assets of unconsolidated VIEs in which AIG holds a variable interest, as well as AIG's maximum exposure to loss associated with these VIEs:

			Maximum Exposure to Loss


(in billions)	Total VIE Assets		On-Balance Sheet		Off-Balance Sheet		Total

March 31, 2012
Real estate and investment funds	$	17.2	$	2.0	$	0.2	$	2.2
Affordable housing partnerships		0.5		0.5		-		0.5
Maiden Lane III interest		20.0		6.9		-		6.9
Other		1.0		0.1		-		0.1

Total	$	38.7	$	9.5	$	0.2	$	9.7

December 31, 2011
Real estate and investment funds	$	18.3	$	2.1	$	0.3	$	2.4
Affordable housing partnerships		0.6		0.6		-		0.6
Maiden Lane II and III interests		27.1		7.0		-		7.0
Other		1.5		-		-		-

Total	$	47.5	$	9.7	$	0.3	$	10.0

BALANCE SHEET CLASSIFICATION

AIG's interests in the assets and liabilities of consolidated and unconsolidated VIEs were classified in the Consolidated Balance Sheet as follows:

	Consolidated VIEs				Unconsolidated VIEs


(in billions)	March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011

Assets:
Available for sale securities	$	0.5	$	0.4	$	-	$	-
Trading securities		1.0		1.3		7.0		7.1
Mortgage and other loans receivable		0.5		0.5		-		-
Other invested assets*		4.9		17.2		2.5		2.6
Other asset accounts		3.9		3.4		-		-

Total	$	10.8	$	22.8	$	9.5	$	9.7

Liabilities:
Other long-term debt	$	1.1	$	1.7	$	-	$	-
Other liability accounts		0.9		0.9		-		-

Total	$	2.0	$	2.6	$	-	$	-

*: Decrease primarily due to the retirement of the AIA SPV Preferred Interests. See Note 1 herein for further discussion.

For information on RMBS, CMBS, and other ABS, see Notes 4 and 5 herein. For additional information on ABS and VIEs, see Notes 6, 7, and 11 to the Consolidated Financial Statements in AIG's 2011 Annual Report on Form 10-K.

DERIVATIVES AND HEDGE ACCOUNTING

3 Months Ended

Mar. 31, 2012

DERIVATIVES AND HEDGE ACCOUNTING

DERIVATIVES AND HEDGE ACCOUNTING

8. DERIVATIVES AND HEDGE ACCOUNTING

AIG uses derivatives and other financial instruments as part of its financial risk management programs and as part of its investment operations. AIG Financial Products Corp. and AIG Trading Group, Inc. and their respective subsidiaries (AIGFP) had also transacted in derivatives as a dealer and had acted as an intermediary between the relevant AIG subsidiary and the counterparty. AIG has mostly replaced AIGFP with AIG Markets, Inc. (AIG Markets) for purposes of acting as an intermediary between the AIG subsidiary and the external counterparty.

The following table presents the notional amounts and fair values of AIG's derivative instruments:

	March 31, 2012								December 31, 2011


	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
(in millions)	Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)

Derivatives designated as hedging instruments:
Interest rate contracts^(b)	$	-	$	-	$	438	$	32	$	-	$	-	$	481	$	38
Foreign exchange contracts		-		-		30		-		-		-		180		1
Derivatives not designated as hedging instruments:
Interest rate contracts^(b)		71,305		7,527		76,753		6,512		72,660		8,286		73,248		6,870
Foreign exchange contracts		1,935		38		3,177		165		3,278		145		3,399		178
Equity contracts^(c)		5,266		286		20,184		1,023		4,748		263		18,911		1,126
Commodity contracts		685		155		655		156		691		136		861		146
Credit contracts		436		65		23,778		2,771		407		89		25,857		3,366
Other contracts^(d)		23,153		694		2,202		411		24,305		741		2,125		372

Total derivatives not designated as hedging instruments		102,780		8,765		126,749		11,038		106,089		9,660		124,401		12,058

Total derivatives	$	102,780	$	8,765	$	127,217	$	11,070	$	106,089	$	9,660	$	125,062	$	12,097

(a): Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.
(b): Includes cross currency swaps.
(c): Notional amount of derivative liabilities and fair values of derivative liabilities include $19.3 billion and $0.8 billion, respectively, at March 31, 2012, and $18.3 billion and $0.9 billion, respectively, at December 31, 2011, related to bifurcated embedded derivatives. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheet.
(d): Consist primarily of contracts with multiple underlying exposures.

The following table presents the fair values of derivative assets and liabilities in the Consolidated Balance Sheet:

	March 31, 2012										December 31, 2011


	Derivative Assets					Derivative Liabilities					Derivative Assets					Derivative Liabilities
(in millions)	Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value

AIGFP derivatives	$	77,854	$	5,666		$	90,350	$	7,095		$	86,128	$	7,063		$	90,241	$	8,854
Non-AIGFP derivatives^(a)		24,926		3,099			36,867		3,975			19,961		2,597			34,821		3,243

Total derivatives, gross	$	102,780		8,765		$	127,217		11,070		$	106,089		9,660		$	125,062		12,097

Counterparty netting^(b)				(3,264	)				(3,264	)				(3,660	)				(3,660	)
Cash collateral^(c)				(1,280	)				(2,801	)				(1,501	)				(2,786	)

Total derivatives, net				4,221					5,005					4,499					5,651

Less: Bifurcated embedded derivatives				-					783					-					918

Total derivatives on consolidated balance sheet			$	4,221				$	4,222				$	4,499				$	4,733

(a): Represents derivatives used to hedge the foreign currency and interest rate risk associated with insurance and ILFC operations, as well as embedded derivatives included in insurance contracts. Liabilities include bifurcated embedded derivatives, which are recorded in Policyholder contract deposits.
(b): Represents netting of derivative exposures covered by a qualifying master netting agreement.
(c): Represents cash collateral posted and received.

COLLATERAL

AIG engages in derivative transactions directly with unaffiliated third parties in most cases under International Swaps and Derivatives Association, Inc. (ISDA) agreements (ISDA Master Agreements). Many of the ISDA Master Agreements also include Credit Support Annex (CSA) provisions, which generally provide for collateral postings at various ratings and threshold levels.

Collateral posted by AIG to third parties for derivative transactions was $4.4 billion and $4.7 billion at March 31, 2012 and December 31, 2011, respectively. This collateral can generally be repledged or resold by the counterparties. Collateral obtained by AIG from third parties for derivative transactions was $1.4 billion and $1.6 billion at March 31, 2012 and December 31, 2011, respectively. This collateral can generally be repledged or resold by AIG.

HEDGE ACCOUNTING

AIG designated certain derivatives entered into by AIG Markets with third parties as cash flow hedges of certain debt issued by ILFC and designated certain derivatives entered into by AIG's insurance subsidiaries with third parties as fair value hedges of available-for-sale investment securities held by such subsidiaries. The fair value hedges include foreign currency forwards designated as hedges of the change in fair value of foreign currency denominated available-for-sale securities attributable to changes in foreign exchange rates. With respect to the cash flow hedges, interest rate swaps were designated as hedges of the changes in cash flows on floating rate debt attributable to changes in the benchmark interest rate.

AIG uses foreign currency denominated debt as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with AIG's non-U.S. dollar functional currency foreign subsidiaries. AIG assesses the hedge effectiveness and measures the amount of ineffectiveness for these hedge relationships based on changes in spot exchange rates. For the three months ended March 31, 2012 and March 31, 2011, AIG recognized losses of $91 million and $24 million, respectively, included in Foreign currency translation adjustment in Accumulated other comprehensive income related to the net investment hedge relationships.

AIG does not utilize the shortcut method to assess hedge effectiveness. A qualitative methodology is utilized to assess hedge effectiveness for net investment hedges, while regression analysis is employed for all other hedges.

The following table presents the effect of AIG's derivative instruments in fair value hedging relationships in the Consolidated Statement of Operations:

Three Months Ended March 31, (in millions)	2012			2011



Interest rate contracts^(a):
Loss recognized in earnings on derivatives	$	(2	)	$	(7	)
Gain recognized in earnings on hedged items^(b)		32			48
Loss recognized in earnings for ineffective portion and amount excluded from effectiveness testing		-			(1	)

(a): Gains and losses recognized in earnings for the ineffective portion and amounts excluded from effectiveness testing are recorded in Net realized capital losses. Includes immaterial amounts related to foreign exchange contracts.
(b): Includes $30 million and $42 million for the three-month periods ended March 31, 2012 and 2011, respectively, representing the amortization of debt basis adjustment following the discontinuation of hedge accounting recorded in Other income and Net realized capital losses.

The following table presents the effect of AIG's derivative instruments in cash flow hedging relationships in the Consolidated Statement of Operations:

Three Months Ended March 31, (in millions)	2012			2011



Interest rate contracts^(a):
Gain (loss) recognized in OCI on derivatives	$	(1	)	$	-
Loss reclassified from Accumulated OCI into earnings^(b)		(5	)		(18	)

(a): Gains and losses reclassified from Accumulated other comprehensive income are recorded in Other income. Gains or losses recognized in earnings on derivatives for the ineffective portion are recorded in Net realized capital losses.
(b): The effective portion of the change in fair value of a derivative qualifying as a cash flow hedge is recorded in Accumulated other comprehensive income until earnings are affected by the variability of cash flows in the hedged item. At March 31, 2012, $16 million of the deferred net loss in Accumulated other comprehensive income is expected to be recognized in earnings during the next 12 months.

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

The following table presents the effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statement of Operations:

	Gains (Losses) Recognized in Earnings


Three Months Ended March 31, (in millions)	Gains (Losses) Recognized in Earnings
Three Months Ended March 31, (in millions)	2012			2011

By Derivative Type:
Interest rate contracts^(a)	$	(586	)	$	(274	)
Foreign exchange contracts		69			20
Equity contracts^(b)		(188	)		(104	)
Commodity contracts		(1	)		5
Credit contracts		151			347
Other contracts		29			(18	)

Total	$	(526	)	$	(24	)

By Classification:
Premiums	$	36		$	25
Net investment income		1			2
Net realized capital gains (losses)		(290	)		32
Other losses		(273	)		(83	)

Total	$	(526	)	$	(24	)

(a): Includes cross currency swaps.
(b): Includes embedded derivative gains of $175 million and $107 million for the three months ended March 31, 2012 and 2011, respectively.

AIGFP DERIVATIVES

AIGFP enters into derivative transactions to mitigate market risk in its exposures (interest rates, currencies, commodities, credit and equities) arising from its transactions. In most cases, AIGFP did not hedge its exposures related to the credit default swaps it had written. As a dealer, AIGFP structured and entered into derivative transactions to meet the needs of counterparties who may have been seeking to hedge certain aspects of such counterparties' operations or obtain a desired financial exposure.

AIGFP follows a policy of minimizing interest rate, currency, commodity, and equity risks associated with investment securities by entering into offsetting positions, thereby offsetting a significant portion of the unrealized appreciation and depreciation. In addition, to reduce its credit risk, at March 31, 2012, AIGFP has entered into credit derivative transactions with respect to $134 million of securities to economically hedge its credit risk.

Super Senior Credit Default Swaps

Credit default swap transactions were entered into with the intention of earning revenue on credit exposure. In the majority of these transactions, credit protection was sold on a designated portfolio of loans or debt securities. Generally, such credit protection was provided on a "second loss" basis, meaning that credit losses would be incurred only after a shortfall of principal and/or interest, or other credit events, in respect of the protected loans and debt securities, exceeds a specified threshold amount or level of "first losses."

The following table presents the net notional amount, fair value of derivative (asset) liability and unrealized market valuation gain (loss) of the super senior credit default swap portfolio, including credit default swaps written on mezzanine tranches of certain regulatory capital relief transactions, by asset class:

					Fair Value of Derivative (Asset) Liability at				Unrealized Market Valuation Gain (Loss) Three Months Ended March 31,


	Net Notional Amount				Fair Value of Derivative (Asset) Liability at
	March 31, 2012^(a)		December 31, 2011^(a)		March 31, 2012^(b)(c)		December 31, 2011^(b)(c)
(in millions)	March 31, 2012^(a)		December 31, 2011^(a)		March 31, 2012^(b)(c)		December 31, 2011^(b)(c)		2012^(c)			2011^(c)

Regulatory Capital:
Corporate loans	$	1,566	$	1,830	$	-	$	-	$	-		$	-
Prime residential mortgages		2,526		3,653		-		-		-			6
Other		818		887		3		9		6			9

Total		4,910		6,370		3		9		6			15

Arbitrage:
Multi-sector CDOs^(d)		4,880		5,476		2,510		3,077		126			273
Corporate debt/CLOs^(e)		11,962		11,784		110		127		17			37

Total		16,842		17,260		2,620		3,204		143			310

Mezzanine tranches		1,029		989		19		10		(9	)		(2	)

Total	$	22,781	$	24,619	$	2,642	$	3,223	$	140		$	323

(a): Net notional amounts presented are net of all structural subordination below the covered tranches.
(b): Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.
(c): Includes credit valuation adjustment losses of $26 million and $6 million in the three-month periods ended March 31, 2012 and 2011, respectively, representing the effect of changes in AIG's credit spreads on the valuation of the derivatives liabilities.
(d): During the three-month period ended March 31, 2012, a super senior CDS transaction with a net notional amount of $470 million was terminated at approximately its fair value at the time of termination. As a result, a $416 million loss, which was previously included in the fair value derivative liability as an unrealized market valuation loss, was realized. During the three-month period ended March 31, 2012, $25 million was paid to counterparties with respect to multi-sector CDOs. Upon payment, a $25 million loss, which was previously included in the fair value of the derivative liability as an unrealized market valuation loss, was realized. Multi-sector CDOs also include $4.1 billion and $4.6 billion in net notional amount of credit default swaps written with cash settlement provisions at March 31, 2012 and December 31, 2011, respectively.
(e): Corporate debt/CLOs include $1.3 billion and $1.2 billion in net notional amount of credit default swaps written on the super senior tranches of CLOs at March 31, 2012 and December 31, 2011, respectively.

The expected weighted average maturity of the super senior credit derivative portfolios as of March 31, 2012 was 0.5 years for the regulatory capital corporate loan portfolio, 0.7 years for the regulatory capital prime residential mortgage portfolio, 3.5 years for the regulatory capital other portfolio, 6.4 years for the multi-sector CDO arbitrage portfolio and 3.9 years for the corporate debt/CLO portfolio.

Given the current performance of the underlying portfolios, the level of subordination of the credit protection written and the assessment of the credit quality of the underlying portfolio, as well as the risk mitigants inherent in the transaction structures, AIG does not expect that it will be required to make payments pursuant to the contractual terms of those transactions providing regulatory relief.

Because of long-term maturities of the CDS in the arbitrage portfolio, AIG is unable to make reasonable estimates of the periods during which any payments would be made. However, the net notional amount represents the maximum exposure to loss on the super senior credit default swap portfolio.

Written Single Name Credit Default Swaps

Credit default swap contracts referencing single-name exposures written on corporate, index and asset-backed credits have also been entered into with the intention of earning spread income on credit exposure. Some of these transactions were entered into as part of a long-short strategy to earn the net spread between CDS written and purchased. At March 31, 2012, the net notional amount of these written CDS contracts was $382 million, including ABS CDS transactions purchased from a liquidated multi-sector super senior CDS transaction. These exposures have been hedged by purchasing offsetting CDS contracts of $69 million in net notional amount. The net unhedged position of $313 million represents the maximum exposure to loss on these CDS contracts. The average maturity of the written CDS contracts is 18.8 years. At March 31, 2012, the fair value of derivative liability (which represents the carrying value) of the portfolio of CDS was $85 million.

Upon a triggering event (e.g., a default) with respect to the underlying credit, the option would normally exist to either settle the position through an auction process (cash settlement) or pay the notional amount of the contract to the counterparty in exchange for a bond issued by the underlying credit obligor (physical settlement).

These CDS contracts were written under ISDA Master Agreements. The majority of these ISDA Master Agreements include CSAs that provide for collateral postings at various ratings and threshold levels. At March 31, 2012, collateral posted by AIG under these contracts was $78 million (prior to offsets for other transactions).

NON-AIGFP DERIVATIVES

AIG's businesses other than AIGFP also use derivatives and other instruments as part of their financial risk management. Interest rate derivatives (such as interest rate swaps) are used to manage interest rate risk associated with embedded derivatives contained in insurance contract liabilities, fixed maturity securities, outstanding medium- and long-term notes as well as other interest rate sensitive assets and liabilities. Foreign exchange derivatives (principally foreign exchange forwards and options) are used to economically mitigate risk associated with non-U.S. dollar denominated debt, net capital exposures, and foreign currency transactions. Equity derivatives are used to mitigate financial risk embedded in certain insurance liabilities. The derivatives are effective economic hedges of the exposures that they are meant to offset.

In addition to hedging activities, AIG also enters into derivative instruments with respect to investment operations, which include, among other things, credit default swaps and purchasing investments with embedded derivatives, such as equity linked notes and convertible bonds.

Matched Investment Program (MIP) Written Credit Default Swaps

Through the MIP, AIG has entered into CDS contracts as a writer of protection, with the intention of earning spread income on credit exposure in an unfunded form. These contracts were written through AIG Markets, which then transacted directly with unaffiliated third parties under ISDA Master Agreements. As of March 31, 2012, the notional amount of written CDS contracts was $896 million with an average credit rating of BBB+, a remaining maturity of less than one year and the fair value of the derivative liability (which represents the carrying value) of $6 million.

CREDIT RISK-RELATED CONTINGENT FEATURES

The aggregate fair value of AIG's derivative instruments, including those of AIGFP, that contain credit risk-related contingent features that were in a net liability position at March 31, 2012, was approximately $4.4 billion. The aggregate fair value of assets posted as collateral under these contracts at March 31, 2012, was $4.6 billion.

AIG estimates that at March 31, 2012, based on AIG's outstanding financial derivative transactions, including those of AIGFP at that date, a one-notch downgrade of AIG's long-term senior debt ratings to BBB+ by Standard & Poor's Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. (S&P), would permit counterparties to make additional collateral calls and permit the counterparties to elect early termination of contracts, resulting in a negligible amount of corresponding collateral postings and termination payments; a one-notch downgrade to Baa2 by Moody's Investors' Services, Inc. (Moody's) and an additional one-notch downgrade to BBB by S&P would result in approximately $137 million in additional collateral postings and termination payments and a further one-notch downgrade to Baa3 by Moody's and BBB- by S&P would result in approximately $274 million in additional collateral postings and termination payments. Additional collateral postings upon downgrade are estimated based on the factors in the individual collateral posting provisions of the CSA with each counterparty and current exposure as of March 31, 2012. Factors considered in estimating the termination payments upon downgrade include current market conditions, the complexity of the derivative transactions, historical termination experience and other observable market events such as bankruptcy and downgrade events that have occurred at other companies. Management's estimates are also based on the assumption that counterparties will terminate based on their net exposure to AIG. The actual termination payments could significantly differ from management's estimates given market conditions at the time of downgrade and the level of uncertainty in estimating both the number of counterparties who may elect to exercise their right to terminate and the payment that may be triggered in connection with any such exercise.

HYBRID SECURITIES WITH EMBEDDED CREDIT DERIVATIVES

AIG invests in hybrid securities (such as credit-linked notes). AIG invested in these hybrid securities with the intent of generating income, and not specifically to acquire exposure to embedded derivative risk. Similar to AIG's other investments in RMBS, CMBS, CDOs and ABS, AIG's investments in these hybrid securities are exposed to losses only up to the amount of AIG's initial investment in the hybrid security. Other than AIG's initial investment in the hybrid securities, AIG has no further obligation to make payments on the embedded credit derivatives in the related hybrid securities.

AIG elects to account for its investments in these hybrid securities with embedded written credit derivatives at fair value, with changes in fair value recognized in Net investment income and Other income. AIG's investments in these hybrid securities are reported as Bond trading securities in the Consolidated Balance Sheet. The fair value of these hybrid securities was $135 million at March 31, 2012. These securities have a current par amount of $430 million and have remaining stated maturity dates that extend to 2052.

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

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+ Details

COMMITMENTS, CONTINGENCIES AND GUARANTEES

3 Months Ended

Mar. 31, 2012

COMMITMENTS, CONTINGENCIES AND GUARANTEES

COMMITMENTS, CONTINGENCIES AND GUARANTEES

9. COMMITMENTS, CONTINGENCIES AND GUARANTEES

In the normal course of business, various commitments and contingent liabilities are entered into by AIG and certain of its subsidiaries. In addition, AIG guarantees various obligations of certain subsidiaries.

Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters, including those referred to below, it is possible that such liability could have a material adverse effect on AIG's consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period.

(A) LITIGATION AND INVESTIGATIONS

Overview. AIG and its subsidiaries, in common with the insurance and financial services industries in general, are subject to litigation, including claims for punitive damages, in the normal course of their business. In AIG's insurance operations (including UGC), litigation arising from claims settlement activities is generally considered in the establishment of AIG's liability for unpaid claims and claims adjustment expense. However, the potential for increasing jury awards and settlements makes it difficult to assess the ultimate outcome of such litigation. AIG is also subject to derivative, class action and other claims asserted by its shareholders and others alleging, among other things, breach of fiduciary duties by its directors and officers and violations of insurance laws and regulations, as well as federal and state securities laws. In the case of any derivative action brought on behalf of AIG, any recovery would accrue to the benefit of AIG.

Various regulatory and governmental agencies have been reviewing certain public disclosures, transactions and practices of AIG and its subsidiaries in connection with industry-wide and other inquiries into, among other matters, AIG's liquidity, compensation paid to certain employees, payments made to counterparties, and certain business practices and valuations of current and former operating insurance subsidiaries. AIG has cooperated, and will continue to cooperate, in producing documents and other information in response to subpoenas and other requests.

AIG's life insurance companies have received industry-wide regulatory inquiries, including a multi-state audit and market conduct examination covering compliance with unclaimed property laws and a directive from the New York Insurance Department (the New York Directive) regarding claims settlement practices and other related state regulatory inquiries. In particular, the above referenced multi-state audit and market conduct examination seeks to require insurers to use the Social Security Death Master File (SSDMF) to identify potential deceased insureds, notwithstanding that the beneficiary or other payee has not presented the company with a valid claim, to determine whether a claim is payable and to take appropriate action. The multi-state audit and market conduct examination covers certain policies in force at any time since 1992. The New York Directive generally requires a similar review and action although the time frame under review is different.

AIG recorded an increase of $202 million in the estimated reserves for incurred but not reported death claims in 2011 in conjunction with the use of the SSDMF to identify potential claims not yet presented. Although AIG has enhanced its claims practices to include use of the SSDMF, it is possible that the inquiries, audits and other regulatory activity could result in the payment of additional death claims, additional escheatment of funds deemed abandoned under state laws, administrative penalties and interest. AIG believes it is adequately reserved for such claims, but there can be no assurance that the ultimate cost will not vary, perhaps materially, from its estimate. Additionally, state regulators are considering a variety of proposals that would require life insurance companies to take additional steps to identify unreported deceased policy holders.

The National Association of Insurance Commissioners Market Analysis Working Group, led by the states of Ohio and Iowa, is conducting a multi-state examination of certain accident and health products, including travel products, issued by National Union Fire Insurance Company of Pittsburgh, Pa. (National Union). The examination formally commenced in September 2010 after National Union, based on the identification of certain regulatory issues related to the conduct of its accident and health insurance business, including rate and form issues, producer licensing and appointment, and vendor management, requested that state regulators collectively conduct an examination of the regulatory issues in its accident and health business. In addition to Ohio and Iowa, the lead states in the multi-state examination are Minnesota, New Jersey and Pennsylvania, and currently a total of 38 states have agreed to participate in the multi-state examination. As part of the multi-state examination, the following Interim Consent Orders were entered into with Ohio: (a) on January 7, 2011, in which National Union agreed, on a nationwide basis, to cease marketing directly to individual bank customers accident/sickness policy forms that had been approved to be sold only as policies providing blanket coverage, and to certain related remediation and audit procedures and (b) on February 14, 2012, in which National Union agreed, on a nationwide basis, to limit outbound telemarketing to certain forms and rates. A Consent Order was entered into with Minnesota on February 10, 2012, in which National Union and Travel Guard Group Inc., an AIG subsidiary, agreed to (i) cease automatically enrolling Minnesota residents in certain insurance relating to air travel, (ii) pay a civil penalty to Minnesota of $250,000 and (iii) refund premium to Minnesota residents who were automatically enrolled in certain insurance relating to air travel. In early 2012, Chartis, Inc., on behalf of itself, National Union, and certain of Chartis, Inc.'s insurance companies (collectively, the Chartis parties) and the lead regulators agreed in principle upon certain terms to resolve the multi-state examination. The terms include (i) payment of a civil penalty of up to $51 million, (ii) agreement to enter into a corrective action plan describing agreed-upon specific steps and standards for evaluating the Chartis parties, ongoing compliance with laws and regulations governing the regulatory issues identified in the examination, and (iii) agreement to pay a contingent fine in the event that the Chartis parties fail to substantially comply with the steps and standards agreed to in the corrective action plan. As of March 31, 2012, AIG has an accrued liability equal to the amount of the civil penalty under the proposed agreement. As the terms outlined above are subject to agreement by the lead and participating states and appropriate agreements or orders, AIG (i) can give no assurance that these terms will not change prior to a final resolution of the multi-state examination that is binding on all parties and (ii) cannot predict what other regulatory action, if any, will result from resolving the multi-state examination. There can be no assurance that any regulatory action resulting from the issues identified will not have a material adverse effect on AIG's consolidated results of operations for an individual reporting period, the ongoing operations of the business being examined, or on similar business written by other AIG carriers. National Union and other AIG companies are also currently subject to civil litigation relating to the conduct of their accident and health business, and may be subject to additional litigation relating to the conduct of such business from time to time in the ordinary course.

Industry-wide examinations conducted by the Minnesota Department of Insurance and the Department of Housing and Urban Development (HUD) on captive reinsurance practices by lenders and mortgage insurance companies, including UGC, have been ongoing for several years. Recently, the newly formed Consumer Financial Protection Bureau assumed responsibility for violations of the Real Estate Settlement Procedures Act from HUD, and assumed HUD's aforementioned ongoing investigation. UGC recently received a proposed consent order from the Minnesota Commissioner of Commerce (the MN Commissioner) which alleges that UGC violated the Real Estate Settlement Procedures Act, the Fair Credit Reporting Act and other state and federal laws in connection with its practices with captive reinsurance companies owned by lenders. UGC is currently engaged in discussions with the MN Commissioner with respect to the terms of the proposed consent order. UGC cannot predict if or when a consent order may be entered into or, if entered into, what the terms of the final consent order will be. UGC is also currently subject to civil litigation relating to its placement of reinsurance with captives owned by lenders, and may be subject to additional litigation relating to the conduct of such business from time to time in the ordinary course.

AIG's Subprime Exposure, AIGFP Credit Default Swap Portfolio and Related Matters

AIG, AIGFP and certain directors and officers of AIG, AIGFP and other AIG subsidiaries have been named in various actions relating to AIG's exposure to the U.S. residential subprime mortgage market, unrealized market valuation losses on AIGFP's super senior credit default swap portfolio, losses and liquidity constraints relating to AIG's securities lending program and related disclosure and other matters (Subprime Exposure Issues).

Consolidated 2008 Securities Litigation. Between May 21, 2008 and January 15, 2009, eight purported securities class action complaints were filed against AIG and certain directors and officers of AIG and AIGFP, AIG's outside auditors, and the underwriters of various securities offerings in the United States District Court for the Southern District of New York (the Southern District of New York), alleging claims under the Securities Exchange Act of 1934 (the Exchange Act) or claims under the Securities Act of 1933 (the Securities Act). On March 20, 2009, the Court consolidated all eight of the purported securities class actions as In re American International Group, Inc. 2008 Securities Litigation (the Consolidated 2008 Securities Litigation). Subsequently, on November 18, 2011 and January 20, 2012, two separate, though similar, securities actions were brought against AIG and certain directors and officers of AIG and AIGFP by the Kuwait Investment Office and various Oppenheimer Funds, respectively.

On May 19, 2009, lead plaintiff in the Consolidated 2008 Securities Litigation filed a consolidated complaint on behalf of purchasers of AIG Common Stock during the alleged class period of March 16, 2006 through September 16, 2008, and on behalf of purchasers of various AIG securities offered pursuant to AIG's shelf registration statements. The consolidated complaint alleges that defendants made statements during the class period in press releases, AIG's quarterly and year-end filings, during conference calls, and in various registration statements and prospectuses in connection with the various offerings that were materially false and misleading and that artificially inflated the price of AIG Common Stock. The alleged false and misleading statements relate to, among other things, the Subprime Exposure Issues. The consolidated complaint alleges violations of Sections 10(b) and 20(a) of the Exchange Act and Sections 11, 12(a)(2), and 15 of the Securities Act. On August 5, 2009, defendants filed motions to dismiss the consolidated complaint, and on September 27, 2010, the Court denied the motions to dismiss.

On November 24, 2010 and December 10, 2010, AIG and all other defendants filed answers to the consolidated complaint denying the material allegations therein and asserting their defenses.

On April 1, 2011, the lead plaintiff in the Consolidated 2008 Securities Litigation filed a motion to certify a class of plaintiffs. On November 2, 2011, the Court terminated the motion without prejudice to an application for restoration. On March 30, 2012, the lead plaintiff filed a renewed motion to certify a class of plaintiffs.

As of May 3, 2012, plaintiffs in the Consolidated 2008 Securities Litigation have not specified an amount of alleged damages, discovery is ongoing and the Court has not determined if a class action is appropriate or the size or scope of any class. As a result, AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

As of May 3, 2012, the actions initiated by the Kuwait Investment Office and various Oppenheimer Funds are in their early stages, no discussions concerning potential damages have occurred and the plaintiffs have not specified an amount of alleged damages in their respective actions. As a result, AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from these litigations.

ERISA Actions — Southern District of New York. Between June 25, 2008, and November 25, 2008, AIG, certain directors and officers of AIG, and members of AIG's Retirement Board and Investment Committee were named as defendants in eight purported class action complaints asserting claims on behalf of participants in certain pension plans sponsored by AIG or its subsidiaries. On March 19, 2009, the Court consolidated these eight actions as In re American International Group, Inc. ERISA Litigation II. On June 26, 2009, lead plaintiffs' counsel filed a consolidated amended complaint. The action purports to be brought as a class action under the Employee Retirement Income Security Act of 1974, as amended (ERISA), on behalf of all participants in or beneficiaries of certain benefit plans of AIG and its subsidiaries that offered shares of AIG Common Stock. In the consolidated amended complaint, plaintiffs allege, among other things, that the defendants breached their fiduciary responsibilities to plan participants and their beneficiaries under ERISA, by continuing to offer the AIG Stock Fund as an investment option in the plans after it allegedly became imprudent to do so. The alleged ERISA violations relate to, among other things, the defendants' purported failure to monitor and/or disclose certain matters, including the Subprime Exposure Issues. On September 18, 2009, defendants filed motions to dismiss the consolidated amended complaint.

On March 31, 2011, the Court granted defendants' motions to dismiss with respect to one plan at issue, and denied defendants' motions to dismiss with respect to the other two plans at issue.

On August 5, 2011, AIG and all other defendants filed answers to the consolidated complaint denying the material allegations therein and asserting their defenses.

On March 19, 2012, AIG and all other defendants filed a motion for judgment on the pleadings.

As of May 3, 2012, plaintiffs have not specified an amount of alleged damages, discovery is ongoing, and the Court has not determined if a class action is appropriate or the size or scope of any class. As a result, AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

Consolidated 2007 Derivative Litigation. On November 20, 2007 and August 6, 2008, purported shareholder derivative actions were filed in the Southern District of New York naming as defendants directors and officers of AIG and its subsidiaries and asserting claims on behalf of nominal defendant AIG. The actions have been consolidated as In re American International Group, Inc. 2007 Derivative Litigation (the Consolidated 2007 Derivative Litigation). On June 3, 2009, lead plaintiff filed a consolidated amended complaint naming additional directors and officers of AIG and its subsidiaries as defendants. As amended, the factual allegations include the Subprime Exposure Issues and AIG and AIGFP employee retention payments and related compensation issues. The claims asserted on behalf of nominal defendant AIG include breach of fiduciary duty, waste of corporate assets, unjust enrichment, contribution and violations of Sections 10(b) and 20(a) of the Exchange Act. On August 5 and 26, 2009, AIG and defendants filed motions to dismiss the consolidated amended complaint. On December 18, 2009, a separate action, previously commenced in the United States District Court for the Central District of California (Central District of California) and transferred to the Southern District of New York on June 5, 2009, was consolidated into the Consolidated 2007 Derivative Litigation and dismissed without prejudice to the pursuit of the claims in the Consolidated 2007 Derivative Litigation.

On March 30, 2010, the Court dismissed the action due to plaintiff's failure to make a pre-suit demand on AIG's Board of Directors. On March 17, 2011, the United States Court of Appeals for the Second Circuit (the Second Circuit) affirmed the Southern District of New York's dismissal of the Consolidated 2007 Derivative Litigation due to plaintiff's failure to make a pre-suit demand.

On August 10, 2011 and August 15, 2011, the plaintiff that brought the Consolidated 2007 Derivative Litigation sent letters to AIG's Board of Directors (the Board) demanding that the Board cause AIG to pursue the claims asserted in the Consolidated 2007 Derivative Litigation. On September 13, 2011, the Board rejected the demand.

Other Derivative Actions. Separate purported derivative actions, alleging similar claims as the Consolidated 2007 Derivative Litigation, have been brought asserting claims on behalf of the nominal defendant AIG in various jurisdictions. These actions are described below:

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Supreme Court of New York, Nassau County.    On February 29, 2008, a purported shareholder derivative complaint was filed in the Supreme Court of Nassau County, naming as defendants certain directors and officers of AIG and its subsidiaries. On March 9, 2009, this action was stayed. On April 4, 2012, the Court entered a stipulation of dismissal without prejudice.

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Supreme Court of New York, New York County.    On March 20, 2009, a purported shareholder derivative complaint was filed in the Supreme Court of New York County naming as defendants certain directors and officers of AIG and recipients of AIGFP retention payments. The complaint has not been served on any defendant.

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Delaware Court of Chancery.    On September 17, 2008, a purported shareholder derivative complaint was filed in the Delaware Court of Chancery, naming as defendants certain directors and officers of AIG and its subsidiaries. On July 17, 2009, the case was stayed. On May 4, 2011, the parties filed a stipulation with the Court agreeing to lift the stay, and granting plaintiff leave to file an amended complaint. On June 17, 2011, AIG filed a motion to dismiss the second amended complaint due to plaintiff's failure to make a pre-suit demand on the Board. On February 1, 2012, the Court approved a stipulation between the parties, dismissing the second amended complaint with prejudice.

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Superior Court for the State of California, Los Angeles County.    On November 20, 2009, a purported shareholder derivative complaint was filed in the Superior Court for the State of California, Los Angeles County, naming as defendants certain directors and officers of AIG and its subsidiaries. On February 9, 2010, the case was stayed.

Canadian Securities Class Action — Ontario Superior Court of Justice. On November 12, 2008, an application was filed in the Ontario Superior Court of Justice for leave to bring a purported class action against AIG, AIGFP, certain directors and officers of AIG and Joseph Cassano, the former Chief Executive Officer of AIGFP, pursuant to the Ontario Securities Act. If the Court grants the application, a class plaintiff will be permitted to file a statement of claim against defendants. The proposed statement of claim would assert a class period of November 10, 2006 through September 16, 2008 (later amended to March 16, 2006 through September 16, 2008) and would allege that during this period defendants made false and misleading statements and omissions in quarterly and annual reports and during oral presentations in violation of the Ontario Securities Act.

On April 17, 2009, defendants filed a motion record in support of their motion to stay or dismiss for lack of jurisdiction and forum non conveniens. On July 12, 2010, the Court adjourned a hearing on the motion pending a decision by the Supreme Court of Canada in a pair of actions captioned Club Resorts Ltd. v. Van Breda 2012 SCC 17 (Van Breda). On April 18, 2012, the Supreme Court of Canada issued a decision in those actions, clarifying the standard for determining jurisdiction over foreign and out-of-province defendants, such as AIG.

The Supreme Court of Canada found, among other things, that in order to be "doing business" in a province for purposes of establishing jurisdiction, a defendant must have some form of "actual," as opposed to a merely "virtual," presence in the jurisdiction. The Supreme Court of Canada also suggested that in future cases, defendants may contest jurisdiction even when they are found to be doing business in a Canadian jurisdiction if their business activities in the jurisdiction are unrelated to the subject matter of the litigation.

The hearing on defendants' motion has been scheduled and will address, inter alia, whether, under the ruling in Van Breda, AIG and AIGFP were "doing business" in Ontario for purposes of jurisdiction.

In plaintiff's proposed statement of claim, plaintiff alleged general and special damages of $500 million, and punitive damages of $50 million plus prejudgment interest or such other sums as the Court finds appropriate. As of May 3, 2012, the Court has not determined whether it has jurisdiction or granted plaintiff's application to file a statement of claim and no merits discovery has occurred. As a result, AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

Starr International Litigation — On November 21, 2011, Starr International Company, Inc. (SICO) filed a complaint against the Department of the Treasury in the United States Court of Federal Claims, bringing claims, both individually and on behalf of all others similarly situated and derivatively on behalf of AIG (the Starr Treasury Action). The complaint challenges the government's assistance of AIG, pursuant to which AIG entered into the FRBNY Credit Facility and the Department of the Treasury received an approximately 80 percent ownership in AIG. The complaint alleges that the interest rate imposed on AIG and the appropriation of approximately 80 percent of AIG's equity was discriminatory, unprecedented, and inconsistent with liquidity assistance offered by the government to other comparable firms at the time and violated the Equal Protection, Due Process, and Takings Clauses of the U.S. Constitution.

On the same day that SICO commenced the Starr Treasury Action, SICO also filed a second complaint in the United States District Court in the Southern District of New York, this one against the FRBNY bringing claims, both individually and on behalf of all others similarly situated and derivatively on behalf of AIG. This complaint also challenges the government's assistance of AIG, pursuant to which AIG entered into the FRBNY Credit Facility and the Department of the Treasury received an approximately 80 percent ownership in AIG. The complaint alleges that the FRBNY owed fiduciary duties to AIG as a controlling shareholder of AIG, and that the FRBNY breached these fiduciary duties by "divert[ing] the rights and assets of AIG and its shareholders to itself and favored third parties" through transactions involving ML III, an entity controlled by the FRBNY, and by "participating in, and causing AIG's officers and directors to participate in, the evasion of AIG's existing Common Stock shareholders' right to approve the massive issuance of the new Common Shares required to complete the government's taking of a nearly 80 percent interest in the Common Stock of AIG." SICO also alleges that the "FRBNY has asserted that in exercising its control over, and acting on behalf of, AIG it did not act in an official, governmental capacity or at the direction of the Department of the Treasury," but that "[t]o the extent the proof at or prior to trial shows that the FRBNY did in fact act in a governmental capacity, or at the direction of the Department of the Treasury, the improper conduct . . . constitutes the discriminatory takings of the property and property rights of AIG without due process or just compensation."

In both of the actions commenced by SICO, the only claims naming AIG as a party are derivative claims on behalf of AIG, and AIG thus faces no potential damages. The FRBNY has requested indemnification under the FRBNY Credit Facility from AIG in connection with the action against it and AIG is discussing the request and its scope with the FRBNY. On January 31, 2012 and February 1, 2012, amended complaints were filed in the Court of Federal Claims and the Southern District of New York, respectively. These amended complaints contain additional factual allegations, but do not contain any new claims against the Department of the Treasury, the FRBNY or AIG.

On January 31, 2012, the Court of Federal Claims added AIG as a party to the Starr Treasury Action as a nominal defendant and held that "AIG may participate in this case to any extent it deems appropriate." On February 23, 2012, SICO and AIG filed a joint motion and stipulation, which the Department of the Treasury opposed, requesting that AIG's time to respond to the amended complaint be extended until 20 days after the Department of the Treasury answered the amended complaint. On March 1, 2012, the Department of the Treasury filed a motion to dismiss the amended complaint. On March 13, 2012, the Court of Federal Claims issued an order stating that AIG need not respond to SICO's amended complaint until 20 days after the Department of the Treasury files its answer to the amended complaint.

On March 9, 2012, the Southern District of New York endorsed a stipulation and order between AIG and SICO (but opposed by the FRBNY) that AIG need not respond to SICO's amended complaint until 20 days after the FRBNY files its answer to the amended complaint. FRBNY filed its motion to dismiss the amended complaint on April 2, 2012.

Other Litigation Related to AIGFP

On September 30, 2009, Brookfield Asset Management, Inc. and Brysons International, Ltd. (together, Brookfield) filed a complaint against AIG and AIGFP in the Southern District of New York. Brookfield seeks a declaration that a 1990 interest rate swap agreement between Brookfield and AIGFP (guaranteed by AIG) terminated upon the occurrence of certain alleged events that Brookfield contends constituted defaults under the swap agreement's standard "bankruptcy" default provision. Brookfield claims that it is excused from all future payment obligations under the swap agreement on the basis of the purported termination. At March 31, 2012, the estimated present value of expected future cash flows discounted at LIBOR was $1.5 billion, which represents AIG's maximum contractual loss from the alleged termination of the contract. It is AIG's position that no termination event has occurred and that the swap agreement remains in effect. A determination that a termination event has occurred could result in AIG losing its entitlement to all future payments under the swap agreement and result in a loss to AIG of the full value at which AIG is carrying the swap agreement.

Additionally, a determination that AIG triggered a "bankruptcy" event of default under the swap agreement could also, depending on the Court's precise holding, affect other AIG or AIGFP agreements that contain the same or similar default provisions. Such a determination could also affect derivative agreements or other contracts between third parties, such as credit default swaps under which AIG is a reference credit, which could affect the trading price of AIG securities. During the third quarter of 2011, beneficiaries of certain previously repaid AIGFP guaranteed investment agreements brought an action against AIG Parent and AIGFP making "bankruptcy" event of default allegations similar to those made by Brookfield. AIG has moved to dismiss the beneficiaries' supplemental amended complaint.

On December 17, 2009, AIG and AIGFP filed a motion to dismiss Brookfield's complaint. On September 28, 2010, the Court issued a decision granting defendants' motion in part and denying it in part, holding that the complaint: (i) failed to allege that an event of default had occurred based upon defendants' failure to pay or inability to pay debts as they became due; but, (ii) sufficiently alleged that an event of default had occurred based upon other sections of the swap agreement's "bankruptcy" default provision. On January 26, 2011, Brookfield filed an amended complaint that sought to reassert, on the basis of additional factual allegations, the claims that were dismissed from the initial complaint. While AIG initially moved to dismiss the claim that Brookfield sought to reassert in its amended complaint, after Brookfield filed a second amended complaint on September 15, 2011, AIG informed the Court that, in light of the advanced stage of fact discovery in the case, it intends to defer seeking to dismiss Brookfield's claims until motions for summary judgment have been filed, when the discovery record can be considered. AIG and AIGFP filed an answer to the second amended complaint on November 8, 2011. Fact discovery is currently scheduled to conclude on May 15, 2012.

Securities Lending Dispute with Transatlantic Holdings Inc.

On May 24, 2010, Transatlantic Holdings, Inc. (Transatlantic) and two of its subsidiaries, Transatlantic Reinsurance Company and Trans Re Zurich Reinsurance Company Ltd. (collectively, Claimants), commenced an arbitration proceeding before the American Arbitration Association in New York against AIG and two of its subsidiaries (the AIG Respondents). Claimants allege breach of contract, breach of fiduciary duty, and common law fraud in connection with certain securities lending agency agreements between AIG's subsidiaries and Claimants. Claimants allege that AIG and its subsidiaries should be liable for the losses that Claimants purport to have suffered in connection with securities lending and investment activities, and seek damages of $350 million and other unspecified damages.

On June 29, 2010, AIG brought a petition in the Supreme Court of the State of New York, seeking to enjoin the arbitration on the ground that AIG is not a party to the securities lending agency agreements with Claimants. On July 29, 2010, the parties agreed to resolve that petition by consolidating the arbitration commenced by Claimants with a separate arbitration, commenced by AIG on June 29, 2010, in which AIG is seeking damages of Euro 17.6 million ($23.5 million at the March 31, 2012 exchange rate) from Transatlantic for breach of a Master Separation Agreement among Transatlantic, AIG and one of its subsidiary companies.

On September 13, 2010, the AIG Respondents submitted an answer to Claimants' claims asserting, among other things, that there was no breach of the securities lending agency agreements, and that Claimants' other allegations including purported breach of fiduciary duty and fraud are not meritorious. Transatlantic submitted an answer denying liability with respect to AIG's claim on September 13, 2010. Claimants increased its claimed damages to an amount of approximately $500 million.

On January 26, 2012, AIG Respondents and Claimants reached a binding agreement to terminate the arbitration proceedings and to dismiss all claims between the parties without any admission of liability by any of the parties. Pursuant to the agreement, the parties will first seek to reach an overall mediated settlement of the claims in the arbitration proceeding along with various other business matters that were not at issue in the arbitration. If a mediated resolution including all claims and outstanding business issues cannot be reached, then the parties will try to reach a mediated resolution of the securities lending claims only, including a settlement payment to Transatlantic between $45 million and $125 million. If the parties cannot reach such resolution, the parties have agreed that, following a 3-day hearing set to start on July 9, 2012, the mediator will determine the amount of a settlement payment to Transatlantic with respect to the securities lending claims in a range between $45 million and $125 million. Accordingly, AIG has accrued an amount it believes is reasonable for this settlement.

Employment Litigation against AIG and AIG Global Real Estate Investment Corporation

Fitzpatrick matter. On December 9, 2009, AIG Global Real Estate Investment Corporation's (AIGGRE) former President, Kevin P. Fitzpatrick, several entities he controls, and various other single purpose entities (the SPEs) filed a complaint in the Supreme Court of the State of New York, New York County against AIG and AIGGRE (the Defendants). The case was removed to the Southern District of New York, and an amended complaint was filed on March 8, 2010. The amended complaint asserts that the Defendants violated fiduciary duties to Fitzpatrick and his controlled entities and breached Fitzpatrick's employment agreement and agreements of SPEs that purportedly entitled him to carried interest fees arising out of the sale or disposition of certain real estate. Fitzpatrick has also brought derivative claims on behalf of the SPEs, purporting to allege that the Defendants breached contractual and fiduciary duties in failing to fund the SPEs with various amounts allegedly due under the SPE agreements. Fitzpatrick has also requested injunctive relief, an accounting, and that a receiver be appointed to manage the affairs of the SPEs. He has further alleged that the SPEs are subject to a constructive trust. Fitzpatrick also has alleged a violation of ERISA relating to retirement benefits purportedly due. Fitzpatrick has claimed that he is currently owed damages totaling approximately $196 million, and that potential future amounts owed to him are approximately $78 million, for a total of approximately $274 million. Fitzpatrick further claims unspecified amounts of carried interest on certain additional real estate assets of AIG and its affiliates. He also seeks punitive damages for the alleged breaches of fiduciary duties. Defendants assert that Fitzpatrick has been paid all amounts currently due and owing pursuant to the various agreements through which he seeks recovery. As set forth above, the possible range of loss to AIG is $0 to $274 million, although Fitzpatrick claims that he is also entitled to additional unspecified amounts of carried interest and punitive damages.

Defendants filed counterclaims against Fitzpatrick and a motion to dismiss. On September 28, 2010, the Court dismissed the Defendants' counterclaims, and denied Defendants' motion to dismiss. On March 14, 2011, both plaintiffs and defendants filed motions for partial summary judgment. Those motions are still pending, and no trial date has been set.

Behm matter. Frank Behm, former President of AIG Global Real Estate Asia Pacific, Inc. (AIGGREAP), has filed two actions in connection with the termination of his employment. Behm filed an action on or about October 1, 2010 in Delaware Superior Court in which he asserts claims of breach of implied covenant of good faith and fair dealing for termination in violation of public policy, deprivation of compensation, and breach of contract. Additionally, on or about March 29, 2011, Behm filed an arbitration proceeding before the American Arbitration Association alleging wrongful termination, in which he seeks the payment of carried interest or "promote" distributed through the SPEs, based on the sales of certain real estate assets. Behm also contends that he is entitled to promote as a third-party beneficiary of Kevin Fitzpatrick's employment agreement, which, Behm claims, defines broadly a class of individuals, allegedly including himself, who, with the approval of AIG's former Chief Investment Officer, became eligible to receive promote payments. Behm is now claiming approximately $67 million in carried interest. Multiple AIG entities (the AIG Entities) are named as parties in each of the Behm matters. The AIG Entities have filed a counterclaim in the Delaware case, contending that Behm owes them approximately $3.6 million (before pre-judgment interest) in tax equalization payments made by the AIG Entities on Behm's behalf.

Both matters filed by Behm are premised on the same key allegations. Behm claims that the AIG Entities wrongfully terminated him from AIGGREAP in an effort to silence him for voicing opposition to allegedly improper practices concerning the amount of AIG reserves for carried interest that Behm contends is due to him and others. The AIG Entities contend that their reserves are appropriate, as Behm's claims for additional carried interest are without merit. Behm claims that, when he refused to accede to the AIG Entities' position as to the amount of carried interest due, he was targeted for investigation and subsequently terminated, purportedly for providing confidential AIG information to a competitor, and its executive search firm. Behm argues that he did not disclose any confidential information; instead, he met with several of the competitor's representatives in order to foster interest in purchasing AIGGREAP.

The parties have finalized the selection of the arbitration panel and the arbitration began on May 1, 2012. No trial date has been set in the Delaware action. As set forth above, the possible range of loss to AIG is $0 to $67 million, although Behm claims that he is also entitled to additional unspecified amounts of carried interest and punitive damages.

False Claims Act Complaint

On February 25, 2010, a complaint was filed in the United States District Court for the Southern District of California by two individuals (Relators) seeking to assert claims on behalf of the United States against AIG and certain other defendants, including Goldman Sachs and Deutsche Bank, under the False Claims Act. Relators filed a First Amended Complaint on September 30, 2010, adding certain additional defendants, including Bank of America and Société Générale. The amended complaint alleges that defendants engaged in fraudulent business practices in respect of their activities in the over-the-counter market for collateralized debt obligations, and submitted false claims to the United States in connection with the FRBNY Credit Facility and the ML II and ML III entities (the Maiden Lane Interests) through, among other things, misrepresenting AIG's ability and intent to repay amounts drawn on the FRBNY Credit Facility, and misrepresenting the value of the securities that the Maiden Lane Interests acquired from AIG and certain of its counterparties. The complaint seeks unspecified damages pursuant to the False Claims Act in the amount of three times the damages allegedly sustained by the United States as well as interest, attorneys' fees, costs and expenses. The complaint and amended complaints were initially filed and maintained under seal while the United States considered whether to intervene in the action. On or about April 28, 2011, after the United States declined to intervene, the District Court lifted the seal, and Relators served the amended complaint on AIG on July 11, 2011.

On October 14, 2011, the defendants that had been served filed motions to dismiss the amended complaint, which are currently fully briefed and the Court has taken the motions under advisement. The Relators have not specified in their amended complaint an amount of alleged damages. As a result, AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

2006 Regulatory Settlements and Related Regulatory Matters

2006 Regulatory Settlements. In February 2006, AIG reached a resolution of claims and matters under investigation with the United States Department of Justice (DOJ), the Securities and Exchange Commission (SEC), the Office of the New York Attorney General (NYAG) and the New York State Department of Insurance (DOI). The settlements resolved investigations conducted by the SEC, NYAG and DOI in connection with the accounting, financial reporting and insurance brokerage practices of AIG and its subsidiaries, as well as claims relating to the underpayment of certain workers' compensation premium taxes and other assessments. These settlements did not, however, resolve investigations by regulators from other states into insurance brokerage practices related to contingent commissions and other broker-related conduct, such as alleged bid rigging. Nor did the settlements resolve any obligations that AIG may have to state guarantee funds in connection with any of these matters.

As a result of these settlements, AIG made payments or placed amounts in escrow in 2006 totaling approximately $1.64 billion, $225 million of which represented fines and penalties.

In addition to the escrowed funds, $800 million was deposited into, and subsequently disbursed by, a fund under the supervision of the SEC, to resolve claims asserted against AIG by investors, including the securities class action and shareholder lawsuits described below. Additional amounts held in escrow totaling approximately $597 million, including interest thereon, are included in Other assets at March 31, 2012, and, as discussed below, are specifically designated to satisfy regulatory and class-action liabilities related to workers' compensation premium reporting issues. Approximately $338 million of the $597 million of the current total workers' compensation related escrow amount was originally held in an account established as part of the 2006 New York regulatory settlement and referred to as the Workers' Compensation Fund.

On February 1, 2012, AIG was informed by the SEC that AIG had complied with the terms of the settlement order under which AIG had agreed to retain an independent consultant, and as of that date, was no longer subject to such order.

Other Regulatory Settlements. AIG's 2006 regulatory settlements with the SEC, DOJ, NYAG and DOI did not resolve investigations by regulators from other states into insurance brokerage practices. AIG entered into agreements effective in early 2008 with the Attorneys General of the States of Florida, Hawaii, Maryland, Michigan, Oregon, Texas and West Virginia; the Commonwealths of Massachusetts and Pennsylvania; and the District of Columbia; as well as the Florida Department of Financial Services and the Florida Office of Insurance Regulation, relating to their respective industry-wide investigations into producer compensation and insurance placement practices. The settlements called for total payments of $26 million by AIG, of which $4.4 million was paid under previous settlement agreements. During the term of the settlement agreements, which run through early 2018, AIG will continue to maintain certain producer compensation disclosure and ongoing compliance initiatives. On April 7, 2010, it was announced that AIG and the Ohio Attorney General entered into a settlement agreement to resolve the Ohio Attorney General's claim concerning producer compensation and insurance placement practices. AIG paid the Ohio Attorney General $9 million as part of that settlement.

NAIC Examination of Workers' Compensation Premium Reporting. During 2006, the Settlement Review Working Group of the National Association of Insurance Commissioners (NAIC), under the direction of the States of Indiana, Minnesota and Rhode Island, began an investigation into AIG's reporting of workers' compensation premiums. In late 2007, the Settlement Review Working Group recommended that a multi-state targeted market conduct examination focusing on workers' compensation insurance be commenced under the direction of the NAIC's Market Analysis Working Group. AIG was informed of the multi-state targeted market conduct examination in January 2008. The lead states in the multi-state examination are Delaware, Florida, Indiana, Massachusetts, Minnesota, New York, Pennsylvania, and Rhode Island. All other states (and the District of Columbia) have agreed to participate in the multi-state examination. The examination focused on legacy issues related to AIG's writing and reporting of workers' compensation insurance prior to 1996 and current compliance with legal requirements applicable to such business.

On December 17, 2010, AIG and the lead states reached an agreement to settle all regulatory liabilities arising out of the subjects of the multistate examination. The regulatory settlement agreement, which has been agreed to by all 50 states and the District of Columbia, includes, among other terms: (i) AIG's payment of $100 million in regulatory fines and penalties; (ii) AIG's payment of $46.5 million in outstanding premium taxes; (iii) AIG's agreement to enter into a compliance plan describing agreed-upon specific steps and standards for evaluating AIG's ongoing compliance with state regulations governing the setting of workers' compensation insurance premium rates and the reporting of workers' compensation premiums; and (iv) AIG's agreement to pay up to $150 million in contingent fines in the event that AIG fails to comply substantially with the compliance plan requirements. The $146.5 million in fines, penalties and premium taxes have been funded out of the $338 million originally held in the Workers' Compensation Fund and placed into an escrow account pursuant to the terms of the regulatory settlement agreement. The regulatory settlement originally was contingent upon, among other events: (i) a final, court-approved settlement being reached in all the lawsuits that comprise the Workers' Compensation Premium Reporting Litigation, discussed below, including the putative class action, except that such settlement need not resolve claims between AIG and the Liberty Mutual Group; and (ii) a settlement being reached and consummated between AIG and certain state insurance guaranty funds that may assert claims against AIG for underpayment of guaranty-fund assessments. AIG and the other parties to the regulatory settlement agreement subsequently agreed to waive the settlement contingency of a final settlement in the lawsuits that comprise the Workers' Compensation Premium Reporting Litigation, provided that such waiver will not become effective until AIG consummates a settlement with the state insurance guaranty associations.

As of March 31, 2012, AIG has an accrued liability for the amounts payable under the proposed settlement.

Litigation Related to the Matters Underlying the 2006 Regulatory Settlements

AIG and certain present and former directors and officers of AIG have been named in various actions related to the matters underlying the 2006 Regulatory Settlements. These actions are described below.

The Consolidated 2004 Securities Litigation. Beginning in October 2004, a number of putative securities fraud class action suits were filed in the Southern District of New York against AIG and consolidated as In re American International Group, Inc. Securities Litigation (the Consolidated 2004 Securities Litigation). Subsequently, a separate, though similar, securities fraud action was also brought against AIG by certain Florida pension funds. The lead plaintiff in the Consolidated 2004 Securities Litigation is a group of public retirement systems and pension funds benefiting Ohio state employees, suing on behalf of themselves and all purchasers of AIG's publicly traded securities between October 28, 1999 and April 1, 2005. The named defendants are AIG and a number of present and former AIG officers and directors, as well as C.V. Starr & Co., Inc. (Starr), SICO, General Reinsurance Corporation (General Re), and PwC, among others. The lead plaintiff alleges, among other things, that AIG: (i) concealed that it engaged in anti-competitive conduct through alleged payment of contingent commissions to brokers and participation in illegal bid-rigging; (ii) concealed that it used "income smoothing" products and other techniques to inflate its earnings; (iii) concealed that it marketed and sold "income smoothing" insurance products to other companies; and (iv) misled investors about the scope of government investigations. In addition, the lead plaintiff alleges that Maurice R. Greenberg, AIG's former Chief Executive Officer, manipulated AIG's stock price. The lead plaintiff asserts claims for violations of Sections 11 and 15 of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder, and Sections 20(a) and Section 20A of the Exchange Act.

On July 14, 2010, AIG approved the terms of a settlement (the Settlement) with lead plaintiffs. The Settlement is conditioned on, among other things, court approval and a minimum level of shareholder participation. Under the terms of the Settlement, if consummated, AIG would pay an aggregate of $725 million.

On July 20, 2010, at the joint request of AIG and lead plaintiffs, the District Court entered an order staying all deadlines in the case. On November 30, 2010, AIG and lead plaintiffs executed their agreement of settlement and compromise. On November 30, 2010, lead plaintiffs filed a motion for preliminary approval of the settlement with AIG.

On October 5, 2011, the District Court granted lead plaintiffs' motion for preliminary approval of the settlement between AIG and lead plaintiffs. Notices to class members of the settlement were mailed on October 14, 2011. On December 2, 2011, Lead Plaintiff filed a motion for final approval of the settlement and for attorneys' fees. Objections to the settlement and requests to be excluded from the settlement were due to the District Court by December 30, 2011. Only two shareholders objected to the settlement, and 25 shareholders claiming to hold less than 1.5 percent of AIG's outstanding shares at the end of the class period submitted timely and valid requests to opt out of the class. Of those 25 shareholders, seven are investment funds controlled by the same investment group, and that investment group is the only opt-out who held more than 1,000 shares at the end of the class period. By order dated February 2, 2012, the District Court granted lead plaintiffs' motion for final approval of the Settlement between AIG and lead plaintiffs. AIG has fully funded the amount of the Settlement into an escrow account.

On January 23, 2012, AIG and the Florida pension funds, who had brought a separate securities fraud action, executed a settlement agreement. Under the terms of the settlement agreement, AIG paid $4 million.

On February 17, 2012 and March 6, 2012, two objectors appealed the final approval of the settlement. The settlement with the Florida pension funds can be terminated by AIG if either of the objectors' appeals is successful.

The Multi-District Litigation. Commencing in 2004, policyholders brought multiple federal antitrust and Racketeer Influenced and Corrupt Organizations Act (RICO) class actions in jurisdictions across the nation against insurers and brokers, including AIG and a number of its subsidiaries, alleging that the insurers and brokers engaged in one or more broad conspiracies to allocate customers, steer business, and rig bids. These actions, including 24 complaints filed in different federal courts naming AIG or an AIG subsidiary as a defendant, were consolidated by the judicial panel on multi-district litigation and transferred to the United States District Court for the District of New Jersey (District of New Jersey) for coordinated pretrial proceedings. The consolidated actions have proceeded in that Court in two parallel actions, In re Insurance Brokerage Antitrust Litigation (the Commercial Complaint) and In re Employee Benefits Insurance Brokerage Antitrust Litigation (the Employee Benefits Complaint, and, together with the Commercial Complaint, the Multi-District Litigation).

The plaintiffs in the Commercial Complaint are a group of corporations, individuals and public entities that contracted with the broker defendants for the provision of insurance brokerage services for a variety of insurance needs. The broker defendants are alleged to have placed insurance coverage on the plaintiffs' behalf with a number of insurance companies named as defendants, including AIG subsidiaries. The Commercial Complaint also named various brokers and other insurers as defendants (three of which have since settled). The Commercial Complaint alleges that defendants engaged in a number of overlapping "broker-centered" conspiracies to allocate customers through the payment of contingent commissions to brokers and through purported "bid-rigging" practices. It also alleges that the insurer and broker defendants participated in a "global" conspiracy not to disclose to policyholders the payment of contingent commissions. Plaintiffs assert that the defendants violated the Sherman Antitrust Act, RICO, and the antitrust laws of 48 states and the District of Columbia, and are liable under common law breach of fiduciary duty and unjust enrichment theories. Plaintiffs seek treble damages plus interest and attorneys' fees as a result of the alleged RICO and Sherman Antitrust Act violations.

The plaintiffs in the Employee Benefits Complaint are a group of individual employees and corporate and municipal employers alleging claims on behalf of two separate nationwide purported classes: an employee class and an employer class that acquired insurance products from the defendants from January 1, 1998 to December 31, 2004. The Employee Benefits Complaint names AIG, as well as various other brokers and insurers, as defendants. The activities alleged in the Employee Benefits Complaint, with certain exceptions, track the allegations of customer allocation through steering and bid-rigging made in the Commercial Complaint.

The District Court, in connection with the Commercial and Employee Benefits Complaints, granted (without leave to amend) defendants' motions to dismiss the federal antitrust and RICO claims on August 31, 2007 and September 28, 2007, respectively. The Court declined to exercise supplemental jurisdiction over the state law claims in the Commercial Complaint and therefore dismissed it in its entirety. Plaintiffs appealed the dismissal of the Commercial Complaint to the United States Court of Appeals for the Third Circuit (the Third Circuit) on October 10, 2007. On January 14, 2008, the District Court granted summary judgment to defendants on plaintiffs' ERISA claims in the Employee Benefits Complaint. On February 12, 2008, plaintiffs filed a notice of appeal to the Third Circuit with respect to the dismissal of the antitrust and RICO claims in the Employee Benefits Complaint.

On August 16, 2010, the Third Circuit affirmed the dismissal of the Employee Benefits Complaint in its entirety, affirmed in part and vacated in part the District Court's dismissal of the Commercial Complaint, and remanded the case for further proceedings consistent with the opinion. Specifically, the Third Circuit affirmed the dismissal of plaintiffs' broader antitrust and RICO claims, but the Court reversed the District Court's dismissal of alleged "Marsh-centered" antitrust and RICO claims based on allegations of bid-rigging involving excess casualty insurance. The Court remanded these Marsh-centered claims to the District Court for consideration as to whether plaintiffs had adequately pleaded them. Because the Third Circuit vacated in part the judgment dismissing the federal claims in the Commercial Complaint, the Third Circuit also vacated the District Court's dismissal of the state-law claims in the Commercial Complaint.

On October 1, 2010, defendants named in the Commercial Complaint filed motions to dismiss the remaining remanded claims in the District of New Jersey. On March 18, 2011, AIG and certain other defendants announced that they had entered into a memorandum of understanding (MOU) with class plaintiffs to settle the claims asserted against them in the Commercial Complaint. As of May 20, 2011, the parties to the MOU and certain other defendants entered into a Stipulation of Settlement. Under the terms of the settlement, it is anticipated that AIG will pay $6.75 million of a total aggregate settlement amount of approximately $37 million. The settlement is conditioned on final court approval. Plaintiffs' attorneys' fees and litigation expenses, and the aggregate costs of notice and claims administration in connection with the settlement, would be paid from the settlement fund.

On June 20, 2011, the Court "administratively terminated" without prejudice the various Defendants' pending motions to dismiss the proposed class plaintiffs' operative pleading indicating that those motions may be re-filed after adjudication of all issues related to the proposed class settlement and subject to the approval of the Magistrate Judge. On June 27, 2011, the Court preliminarily approved the class settlement. On June 30, 2011, AIG placed its portion of the total settlement payment into escrow. If the settlement does not receive final court approval, those funds will revert to AIG. A final fairness hearing was held on September 14, 2011. On March 30, 2012, the Court granted final approval of the class settlement. On April 27, 2012, a notice of appeal of the order granting final approval was filed.

A number of complaints making allegations similar to those in the Multi-District Litigation have been filed against AIG and other defendants in state and federal courts around the country. The defendants have thus far been successful in having the federal actions transferred to the District of New Jersey and consolidated into the Multi-District Litigation. These additional consolidated actions are still pending in the District of New Jersey. In one of those consolidated actions, Palm Tree Computer Systems, Inc. v. Ace USA (Palm Tree), which is brought by two named plaintiffs on behalf of a proposed class of insurance purchasers, the plaintiffs allege specifically with respect to their claim for breach of fiduciary duty against the insurer defendants that neither named plaintiff nor any member of the proposed class suffered damages "exceeding $74,999 each." Plaintiffs do not specify damages as to other claims against the insurer defendants in the complaint. The plaintiffs in Palm Tree have not yet sought certification of the class. Because discovery has not been completed and the District Court has not determined if a class action is appropriate or the size or scope of any class, AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the Palm Tree litigation. In another consolidated action, The Heritage Corp. of South Florida v. National Union Fire Ins. Co. (Heritage), an individual plaintiff alleges damages "in excess of $75,000." Because discovery has not been completed and a precise amount of damages has not been specified, AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the Heritage litigation. For the remaining consolidated actions, as of February, 2012, plaintiffs have not specified an amount of alleged damages arising from these actions. AIG is therefore unable to reasonably estimate the possible loss or range of losses, if any, arising from these matters.

In June 2011, the Court ordered counsel for each of the tag-along actions in the Multi-District Litigation (including the following cases where AIG is a defendant: Avery Dennison Corp. v. Marsh & McLennan Companies, Inc.; Henley Management Co. v. Marsh Inc.; Heritage; and Palm Tree) to submit a letter to the Court within 30 days of the date of that order that outlines the effect the current proposed class settlement will have on their respective cases if finalized in due course. In July 2011, several plaintiffs submitted letters to the Court. Defendants submitted an omnibus response to the Court on August 19, 2011.

On October 17, 2011, the Court conducted a conference and subsequently ordered that discovery and motion practice may proceed in all tag-along actions. The parties were ordered to submit a proposed scheduling order for discovery and any additional motion practice to the Court by October 31, 2011.

The AIG defendants have also sought to have state court actions making similar allegations stayed pending resolution of the Multi-District Litigation proceeding. These efforts have generally been successful, although four cases have proceeded; one each in Florida and New Jersey state courts that have settled, and one each in Texas and Kansas state courts have proceeded (although discovery is stayed in both actions). In the Texas action, plaintiff filed its Fourth Amended Petition on July 13, 2009 and on August 14, 2009, defendants filed renewed special exceptions. Plaintiff in the Texas action alleges a "maximum" of $125 million in total damages (after trebling). Because the Court has not rendered a decision on defendants' renewed special exceptions and discovery has not been completed, AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the Texas action. In the Kansas action, defendants are appealing to the Kansas Supreme Court the trial court's denial of defendants' motion to dismiss on statute of limitations grounds. In the Kansas action, the plaintiff alleges damages in an amount "greater than $75,000" for each of the three claims directed against AIG in the complaint. Because the Kansas Supreme Court has not decided the appeal of the trial court's denial of defendants' motion to dismiss, a precise amount of damages has not been specified and discovery has not been completed, AIG is unable to reasonably estimate the possible loss or range of losses, if any, from the Kansas action.

Workers' Compensation Premium Reporting. On May 24, 2007, the National Council on Compensation Insurance (NCCI), on behalf of the participating members of the National Workers' Compensation Reinsurance Pool (the NWCRP), filed a lawsuit in the United States District Court for the Northern District of Illinois (Northern District of Illinois) against AIG with respect to the underpayment by AIG of its residual market assessments for workers' compensation insurance. The complaint alleged claims for violations of RICO, breach of contract, fraud and related state law claims arising out of AIG's alleged underpayment of these assessments between 1970 and the present and sought damages purportedly in excess of $1 billion. On August 6, 2007, the Court denied AIG's motion seeking to dismiss or stay the complaint or, in the alternative, to transfer to the Southern District of New York. On December 26, 2007, the Court denied AIG's motion to dismiss the complaint.

On March 17, 2008, AIG filed an amended answer, counterclaims and third-party claims against NCCI (in its capacity as attorney-in-fact for the NWCRP), the NWCRP, its board members, and certain of the other insurance companies that are members of the NWCRP alleging violations of RICO, as well as claims for conspiracy, fraud, and other state law claims. The counterclaim-defendants and third-party defendants filed motions to dismiss on June 9, 2008. On January 26, 2009, AIG filed a motion to dismiss all claims in the complaint for lack of subject-matter jurisdiction. On February 23, 2009, the Court issued a decision and order sustaining AIG's counterclaims and sustaining, in part, AIG's third-party claims. The Court also dismissed certain of AIG's third-party claims without prejudice.

On April 13, 2009, third-party defendant Liberty Mutual Group (Liberty Mutual) filed third-party counterclaims against AIG, certain of its subsidiaries, and former AIG executives. On August 23, 2009, the Court granted AIG's motion to dismiss the NCCI complaint for lack of standing. On September 25, 2009, AIG filed its First Amended Complaint, reasserting its RICO claims against certain insurance companies that both underreported their workers' compensation premium and served on the NWCRP Board, and repleading its fraud and other state law claims. Defendants filed a motion to dismiss the First Amended Complaint on October 30, 2009. On October 8, 2009, Liberty Mutual filed an amended counterclaim against AIG. The amended counterclaim is substantially similar to the complaint initially filed by NCCI, but also seeks damages related to non-NWCRP states, guaranty funds, and special assessments, in addition to asserting claims for other violations of state law. The amended counterclaim also removes as defendants the former AIG executives. On October 30, 2009, AIG filed a motion to dismiss the Liberty amended counterclaim.

On April 1, 2009, Safeco Insurance Company of America (Safeco) and Ohio Casualty Insurance Company (Ohio Casualty) filed a complaint in the Northern District of Illinois, on behalf of a purported class of all NWCRP participant members, against AIG and certain of its subsidiaries with respect to the underpayment by AIG of its residual market assessments for workers' compensation insurance. The complaint was styled as an "alternative complaint," should the Court grant AIG's motion to dismiss the NCCI lawsuit for lack of subject-matter jurisdiction. The allegations in the class action complaint are substantially similar to those filed by the NWCRP, but the complaint names former AIG executives as defendants and asserts a RICO claim against those executives. On August 28, 2009, the class action plaintiffs filed an amended complaint, removing the AIG executives as defendants. On October 30, 2009, AIG filed a motion to dismiss the amended complaint. On July 16, 2010, Safeco and Ohio Casualty filed their motion for class certification, which AIG opposed on October 8, 2010.

On July 1, 2010, the Court ruled on the pending motions to dismiss that were directed at all parties' claims. With respect to the underreporting NWCRP companies' and board members' motion to dismiss AIG's first amended complaint, the Court denied the motion to dismiss all counts except AIG's claim for unjust enrichment, which it found to be precluded by the surviving claims for breach of contract. With respect to NCCI and the NWCRP's motion to dismiss AIG's first amended complaint, the Court denied the NCCI and the NWCRP's motions to dismiss AIG's claims for an equitable accounting and an action on an open, mutual, and current account. With respect to AIG's motions to dismiss Liberty's counterclaims and the class action complaint, the Court denied both motions, except that it dismissed the class claim for promissory estoppel. On July 30, 2010, the NWCRP filed a motion for reconsideration of the Court's ruling denying its motion to dismiss AIG's claims for an equitable accounting and an action on an open, mutual, and current account. The Court denied the NWCRP's motion for reconsideration on September 16, 2010. The plaintiffs filed a motion for class certification on July 16, 2010. AIG opposed the motion.

On January 5, 2011, AIG executed a term sheet with a group of intervening plaintiffs, made up of seven participating members of the NWCRP that filed a motion to intervene in the class action for the purpose of settling the claims at issue on behalf of a settlement class. The proposed class-action settlement would require AIG to pay $450 million to satisfy all liabilities to the class members arising out of the workers' compensation premium reporting issues, a portion of which would be funded out of the remaining amount held in the Workers' Compensation Fund less any amounts previously withdrawn to satisfy AIG's regulatory settlement obligations, as addressed above. On January 13, 2011, their motion to intervene was granted. On January 19, 2011, the intervening class plaintiffs filed their Complaint in Intervention. On January 28, 2011, AIG and the intervening class plaintiffs entered into a settlement agreement embodying the terms set forth in the January 5, 2011 term sheet and filed a joint motion for certification of the settlement class and preliminary approval of the settlement. If approved by the Court (and such approval becomes final), the settlement agreement will resolve and dismiss with prejudice all claims that have been made or that could have been made in the consolidated litigations pending in the Northern District of Illinois arising out of workers' compensation premium reporting, including the class action, other than claims that are brought by any class member that opts out of the settlement. On April 29, 2011, Liberty Mutual filed papers in opposition to preliminary approval of the proposed settlement and in opposition to certification of a settlement class, in which it alleged AIG's actual exposure, should the class action continue through judgment, to be in excess of $3 billion. AIG disputes and will defend against this allegation. The Court held a hearing on the motions for class certification and preliminary approval of the proposed class-action settlement on June 21 and July 25, 2011.

On August 1, 2011, the Court issued an opinion and order granting the motion for class certification and preliminarily approving the proposed class-action settlement, subject to certain minor modifications that the Court noted the parties already had agreed to make. The opinion and order became effective upon the entry of a separate Findings and Order Preliminarily Certifying a Settlement Class and Preliminarily Approving Proposed Settlement on August 5, 2011. Liberty Mutual sought leave from the United States Court of Appeals for the Seventh Circuit to appeal the August 5, 2011 class certification decision, which was denied on August 19, 2011. Notice of the settlement was issued to the class members on August 19, 2011 advising that any class member wishing to opt out of or object to the class-action settlement was required to do so by October 3, 2011. RLI Insurance Company and its affiliates, which were to receive less than one thousand dollars under the proposed settlement, sent the only purported opt-out notice. Liberty Mutual, including its subsidiaries Safeco and Ohio Casualty, and the Kemper group of insurance companies, through their affiliate Lumbermens Mutual Casualty, were the only two objectors. AIG and the settling class plaintiffs filed responses to the objectors' submissions on October 28, 2011. The Court conducted a final fairness hearing on November 29, 2011. Immediately prior to the hearing, Lumbermens Mutual Casualty withdrew its objection to the settlement. On December 21, 2011, the Court issued an order granting final approval of the settlement, but staying that ruling pending a forthcoming opinion. On February 28, 2012, the Court entered a final order and judgment approving the class action settlement. Liberty Mutual, Safeco and Ohio Casualty filed notices of their intent to appeal the Court's final order and judgment. The Court of Appeals for the Seventh Circuit has consolidated the appeals.

The $450 million settlement amount, which is currently held in escrow pending final resolution of the class-action settlement, was funded in part from the approximately $191.5 million remaining in the Workers' Compensation Fund, after the transfer of the $146.5 million in fines, penalties, and premium taxes discussed in the NAIC Examination of Workers' Compensation Premium Reporting matter above into a separate escrow account pursuant to the regulatory settlement agreement. In the event that the proposed class action settlement is not approved, the litigation will resume. As of March 31, 2012, AIG has an accrued liability equal to the amounts payable under the settlement.

Litigation Matters Relating to AIG's Insurance Operations

Caremark. AIG and certain of its subsidiaries have been named defendants in two putative class actions in state court in Alabama that arise out of the 1999 settlement of class and derivative litigation involving Caremark Rx, Inc. (Caremark). The plaintiffs in the second-filed action intervened in the first-filed action, and the second-filed action was dismissed. An excess policy issued by a subsidiary of AIG with respect to the 1999 litigation was expressly stated to be without limit of liability. In the current actions, plaintiffs allege that the judge approving the 1999 settlement was misled as to the extent of available insurance coverage and would not have approved the settlement had he known of the existence and/or unlimited nature of the excess policy. They further allege that AIG, its subsidiaries, and Caremark are liable for fraud and suppression for misrepresenting and/or concealing the nature and extent of coverage. In addition, the intervenors originally alleged that various lawyers and law firms who represented parties in the underlying class and derivative litigation (the Lawyer Defendants) were also liable for fraud and suppression, misrepresentation, and breach of fiduciary duty.

The complaints filed by the plaintiffs and the intervenors request compensatory damages for the 1999 class in the amount of $3.2 billion, plus punitive damages. AIG and its subsidiaries deny the allegations of fraud and suppression, assert that information concerning the excess policy was publicly disclosed months prior to the approval of the settlement, that the claims are barred by the statute of limitations, and that the statute cannot be tolled in light of the public disclosure of the excess coverage. The plaintiffs and intervenors, in turn, have asserted that the disclosure was insufficient to inform them of the nature of the coverage and did not start the running of the statute of limitations.

In November 2007, the trial court dismissed the intervenors' complaint against the Lawyer Defendants, and the Alabama Supreme Court affirmed that dismissal in September 2008. After the case was sent back down to the trial court, the intervenors retained additional counsel and filed an Amended Complaint in Intervention that named only Caremark and AIG and various subsidiaries as defendants, purported to bring claims against all defendants for deceit and conspiracy to deceive, and purported to bring a claim against AIG and its subsidiaries for aiding and abetting Caremark's alleged deception. The defendants moved to dismiss the Amended Complaint in Intervention, and the plaintiffs moved to disqualify all of the lawyers for the intervenors because, among other things, the newly retained firm had previously represented Caremark. The intervenors, in turn, moved to disqualify the lawyers for the plaintiffs in the first-filed action. The cross-motions to disqualify were withdrawn after the two sets of plaintiffs agreed that counsel for the original plaintiffs would act as lead counsel, and intervenors also withdrew their Amended Complaint in Intervention. The trial court approved all of the foregoing steps and, in April 2009, established a schedule for class action discovery that was to lead to a hearing on class certification in March 2010. The Court has since appointed a special master to oversee class action discovery and has directed the parties to submit a new discovery schedule after certain discovery disputes are resolved. Class discovery is ongoing. A class certification hearing has been set for May 30, 2012.

As of May 3, 2012, the parties have not completed class action discovery, general discovery has not commenced, and the court has not determined if a class action is appropriate or the size or scope of any class. As a result, AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

(B) COMMITMENTS

Flight Equipment

At March 31, 2012, ILFC had committed to purchase 247 new aircraft, including 18 aircraft through sale-leaseback transactions with airlines, three used aircraft, and nine new spare engines deliverable from 2012 through 2019, with aggregate estimated total remaining payments of approximately $18.7 billion. ILFC also has the right to purchase an additional 50 Airbus A320neo family narrowbody aircraft. ILFC will be required to find lessees for any aircraft acquired and to arrange financing for a substantial portion of the purchase price.

Other Commitments

In the normal course of business, AIG enters into commitments to invest in limited partnerships, private equities, hedge funds and mutual funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $2.8 billion at March 31, 2012.

(C) CONTINGENCIES

Liability for unpaid claims and claims adjustment expense

Although AIG regularly reviews the adequacy of the established Liability for unpaid claims and claims adjustment expense, there can be no assurance that AIG's loss reserves will not develop adversely and have a material adverse effect on its results of operations. Estimation of ultimate net losses, loss expenses and loss reserves is a complex process for long-tail casualty lines of business, which include general liability, commercial automobile liability, workers' compensation, excess casualty and crisis management coverages, insurance and risk management programs for large corporate customers and other customized structured insurance products, as well as excess and umbrella liability, directors and officers and products liability. Generally, actual historical loss development factors are used to project future loss development. However, there can be no assurance that future loss development patterns will be the same as in the past. Moreover, any deviation in loss cost trends or in loss development factors might not be discernible for an extended period of time subsequent to the recording of the initial loss reserve estimates for any accident year. There is the potential for reserves with respect to a number of years to be significantly affected by changes in loss cost trends or loss development factors that were relied upon in setting the reserves. These changes in loss cost trends or loss development factors could be attributable to changes in economic conditions in the United States and abroad, changes in the legal, regulatory, judicial and social environment, changes in medical cost trends (inflation, intensity and utilization of medical services), underlying policy pricing, terms and conditions, and claims handling practices.

(D) GUARANTEES

Subsidiaries

AIG has issued unconditional guarantees with respect to the prompt payment, when due, of all present and future payment obligations and liabilities of AIGFP arising from transactions entered into by AIGFP.

In connection with AIGFP's leasing business, AIGFP has issued, in a limited number of transactions, standby letters of credit or similar facilities to equity investors in an amount equal to the termination value owing to the equity investor by the lessee in the event of a lessee default (the equity termination value). The total amount outstanding at March 31, 2012 was $437 million. In those transactions, AIGFP has agreed to pay such amount if the lessee fails to pay. The amount payable by AIGFP is, in certain cases, partially offset by amounts payable under other instruments typically equal to the present value of a scheduled payment to be made by AIGFP. In the event that AIGFP is required to make a payment to the equity investor, the lessee is unconditionally obligated to reimburse AIGFP. To the extent that the equity investor is paid the equity termination value from the standby letter of credit and/or other sources, including payments by the lessee, AIGFP takes an assignment of the equity investor's rights under the lease of the underlying property. Because the obligations of the lessee under the lease transactions are generally economically defeased, lessee bankruptcy is the most likely circumstance in which AIGFP would be required to pay.

Asset Dispositions

General

AIG is subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses pursuant to its asset disposition plan. The various arrangements may be triggered by, among other things, declines in asset values, the occurrence of specified business contingencies, the realization of contingent liabilities, developments in litigation or breaches of representations, warranties or covenants provided by AIG. These arrangements are typically subject to various time limitations, defined by the contract or by operation of law, such as statutes of limitation. In some cases, the maximum potential obligation is subject to contractual limitations, while in other cases such limitations are not specified or are not applicable.

AIG is unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, AIG believes that it is unlikely it will have to make any material payments related to completed sales under these arrangements, and no material liabilities related to these arrangements have been recorded in the Consolidated Balance Sheet. See Notes 1 and 13 herein for additional information on sales of businesses and asset dispositions.

ALICO Sale

Pursuant to the terms of the American Life Insurance Company (ALICO) stock purchase agreement, AIG has agreed to provide MetLife with certain indemnities, the most significant of which include:

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Indemnification related to breaches of general representations and warranties with an aggregate deductible of $125 million and a maximum payout of $2.25 billion. The indemnification extends for 21 months after November 1, 2010.

•

Indemnifications related to specific product, investment, litigation and other matters that are excluded from the general representations and warranties indemnity. These indemnifications provide for various deductible amounts, which in certain cases are zero, and maximum exposures, which in certain cases are unlimited, and extend for various periods after the completion of the sale.

•

Tax indemnifications related to insurance reserves that extend for taxable periods ending on or before December 31, 2013 and that are limited to an aggregate of $200 million, and certain other tax-related representations and warranties that extend to the expiration of the statute of limitations and are subject to an aggregate deductible of $50 million.

In connection with the indemnity obligations described above, as of March 31, 2012, approximately $1.6 billion of proceeds from the sale of ALICO were on deposit in an escrow arrangement. The amount required to be held in escrow declines to zero in April 2013, with claims submitted related to the indemnifications reducing the amount that can be released to AIG.

AIG Star and AIG Edison Sale

Pursuant to the terms of the AIG Star and AIG Edison stock purchase agreement, AIG has agreed to provide Prudential Financial, Inc. with certain indemnities, the most significant of which is indemnification related to breaches of general representations and warranties that exceed 4.1 billion Yen ($49.5 million at the March 31, 2012 exchange rate), with a maximum payout of 102 billion Yen ($1.2 billion at the March 31, 2012 exchange rate). Except for certain specified representations and warranties that may have a longer survival period, the indemnification extends until November 1, 2012.

Other

•

See Note 7 herein for commitments and guarantees associated with VIEs.

•

See Note 8 herein for disclosures on derivatives.

•

See Note 14 herein for additional disclosures on guarantees of outstanding debt.

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2012

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE

10. TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE

SHARES OUTSTANDING

The following table presents a rollforward of outstanding shares:

	Preferred Stock


	Preferred Stock											Common Stock Issued		Treasury Stock			Outstanding Shares
	AIG Series E			AIG Series F			AIG Series C			AIG Series G		Common Stock Issued		Treasury Stock			Outstanding Shares

Three Months Ended March 31, 2012
Shares, beginning of year		-			-			-			-		1,906,568,099		(9,746,617	)		1,896,821,482
Issuances		-			-			-			-		46,453		27,654			74,107
Shares repurchased		-			-			-			-		-		(103,448,276	)		(103,448,276	)

Shares, end of period		-			-			-			-		1,906,614,552		(113,167,239	)		1,793,447,313

Three Months Ended March 31, 2011
Shares, beginning of year		400,000			300,000			100,000			-		147,124,067		(6,660,908	)		140,463,159
Issuances		-			-			-			20,000		1,218,766		56			1,218,822
Shares exchanged*		(400,000	)		(300,000	)		(100,000	)		-		1,655,037,962		-			1,655,037,962

Shares, end of period		-			-			-			20,000		1,803,380,795		(6,660,852	)		1,796,719,943

*: See Note 1 to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K for further discussion of shares exchanged in connection with the Recapitalization.

Repurchases of Equity Securities

In the first quarter of 2012, AIG's Board of Directors (the Board) authorized the repurchase of shares of AIG Common Stock with an aggregate purchase amount of up to $3 billion from time to time in the open market, private purchases, through derivative or automatic purchase contracts, or otherwise. This authorization replaced all prior AIG Common Stock repurchase authorizations.

On March 13, 2012, the Department of the Treasury, as the selling shareholder, closed the sale of 206,896,552 shares of AIG Common Stock, at a public offering price of $29.00 per share. AIG purchased 103,448,276 shares of AIG Common Stock in the Offering at the public offering price for an aggregate purchase amount of $3.0 billion, thus utilizing the full authorization.

Dividends

Payment of future dividends depends on the regulatory framework that will ultimately be applicable to AIG. This framework will depend on, among other things, whether AIG is treated as either a systemically important financial institution (SIFI) or as a savings and loan holding company under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). The level of the Department of the Treasury's ownership in AIG may affect AIG's regulatory status. In addition, dividends will be payable on AIG's Common Stock only when, as and if declared by the Board in its discretion, from funds legally available therefor. In considering whether to pay a dividend or repurchase shares of AIG Common Stock, the Board will take into account such matters as AIG's financial position, the performance of its businesses, its 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 subsidiaries to AIG, rating agency considerations, including the potential effect on AIG's debt ratings, and such other factors as AIG's Board may deem relevant. AIG has not paid any cash dividends in 2011 or 2012.

See Note 18 to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K for discussion of restrictions on payments of dividends by AIG subsidiaries.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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 Taken			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, 2011, net of tax	$	(736	)	$	7,891		$	(1,028	)	$	(17	)	$	(957	)	$	5,153
Change in unrealized appreciation of investments		1,109			1,602			-			-			-			2,711
Change in deferred acquisition costs adjustment and other		(65	)		(314	)		-			-			-			(379	)
Change in future policy benefits		(41	)		75			-			-			-			34
Change in foreign currency translation adjustments		-			-			87			-			-			87
Change in net derivative gains arising from cash flow hedging activities		-			-			-			4			-			4
Net actuarial gain		-			-			-			-			41			41
Prior service credit		-			-			-			-			(12	)		(12	)
Change attributable to divestitures and deconsolidations		-			-			-			-			-			-
Deferred tax asset (liability)		(390	)		(382	)		4			18			(11	)		(761	)

Total other comprehensive income		613			981			91			22			18			1,725
Noncontrolling interests		-			4			1			-			-			5

Balance, March 31, 2012, net of tax	$	(123	)	$	8,868		$	(938	)	$	5		$	(939	)	$	6,873

Balance, December 31, 2010, net of tax	$	(659	)	$	8,888		$	298		$	(34	)	$	(869	)	$	7,624
Cumulative effect of change in accounting principle		-			283			(364	)		-			-			(81	)

Change in unrealized appreciation of investments		646			(69	)		-			-			-			577
Change in deferred acquisition costs adjustment and other		(87	)		(71	)		-			-			-			(158	)
Change in future policy benefits		-			-			-			-			-			-
Change in foreign currency translation adjustments		-			-			649			-			-			649
Change in net derivative losses arising from cash flow hedging activities		-			-			-			18			-			18
Net actuarial gain		-			-			-			-			3			3
Prior service credit		-			-			-			-			(1	)		(1	)
Change attributable to divestitures and deconsolidations		53			(1,129	)		(1,506	)		-			248			(2,334	)
Deferred tax asset (liability)		(216	)		462			340			(5	)		(115	)		466

Total other comprehensive income (loss)		396			(807	)		(517	)		13			135			(780	)
Acquisition of noncontrolling interest		-			78			84			-			(19	)		143
Noncontrolling interests		3			(3	)		36			-			-			36

Balance, March 31, 2011, net of tax	$	(266	)	$	8,445		$	(535	)	$	(21	)	$	(753	)	$	6,870

The following table presents the other comprehensive income (loss) reclassification adjustments for the three months ended March 31, 2012 and 2011:

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken			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, 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 (benefit)		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

Three Months Ended March 31, 2011
Unrealized change arising during period	$	542		$	(342	)	$	649		$	-		$	-		$	849
Less: Reclassification adjustments included in net income		(70	)		927			1,506			(18	)		(250	)		2,095

Total other comprehensive income (loss), before income tax expense (benefit)		612			(1,269	)		(857	)		18			250			(1,246	)
Less: Income tax expense (benefit)		216			(462	)		(340	)		5			115			(466	)

Total other comprehensive income (loss), net of income tax expense (benefit)	$	396		$	(807	)	$	(517	)	$	13		$	135		$	(780	)

NONCONTROLLING INTERESTS

During the quarter ended March 31, 2012, the remaining liquidation preference of the AIA SPV Preferred Interests was paid down in full. See Note 1 herein for a description of the transactions that provided funds to pay down the remaining liquidation preference.

The following table presents a rollforward of non-controlling interests:

	Redeemable Noncontrolling interests									Non-redeemable Noncontrolling interests


(in millions)	Held by Department of Treasury			Other			Total			Held by FRBNY			Other			Total

Three Months Ended March 31, 2012
Balance, beginning of year	$	8,427		$	96		$	8,523		$	-		$	855		$	855

Repayment to Department of the Treasury		(8,635	)		-			(8,635	)		-			-			-
Net contributions		-			18			18			-			28			28
Consolidation (deconsolidation)		-			(5	)		(5	)		-			-			-
Comprehensive income:
Net income		208			10			218			-			23			23
Accumulated other comprehensive income, net of tax:
Unrealized gains on investments		-			2			2			-			2			2
Foreign currency translation adjustments		-			-			-			-			1			1

Total accumulated other comprehensive income, net of tax		-			2			2			-			3			3

Total comprehensive income		208			12			220			-			26			26

Other		-			-			-			-			(16	)		(16	)

Balance, end of period	$	-		$	121		$	121		$	-		$	893		$	893

Three Months Ended March 31, 2011
Balance, beginning of year	$	-		$	434		$	434		$	26,358		$	1,562		$	27,920
Repurchase of SPV preferred interests in connection with Recapitalization		-			-			-			(26,432	)		-			(26,432	)
Exchange of consideration for preferred stock in connection with Recapitalization		20,292			-			20,292			-			-			-
Repayment to Department of the Treasury		(9,146	)		-			(9,146	)		-			-			-
Net contributions		-			(26	)		(26	)		-			(96	)		(96	)
Consolidation (deconsolidation)		-			(125	)		(125	)		-			(109	)		(109	)
Acquisition of noncontrolling interest		-			-			-			-			(509	)		(509	)
Comprehensive income:
Net income		178			9			187			74			(57	)		17
Accumulated other comprehensive income, net of tax: Unrealized gains on investments		-			(1	)		(1	)		-			1			1
Foreign currency translation adjustments		-			-			-			-			36			36

Total accumulated other comprehensive income (loss), net of tax		-			(1	)		(1	)		-			37			37

Total comprehensive income (loss)		178			8			186			74			(20	)		54

Other		-			(13	)		(13	)		-			(9	)		(9	)

Balance, end of period	$	11,324		$	278		$	11,602		$	-		$	819		$	819

EARNINGS (LOSS) PER SHARE (EPS)

Basic and diluted earnings (loss) per share are based on the weighted average number of common shares outstanding, adjusted to reflect all stock dividends and stock splits. Diluted EPS is based on those shares used in basic EPS plus shares that would have been outstanding assuming issuance of common shares for all dilutive potential common shares outstanding, adjusted to reflect all stock dividends and stock splits. Basic EPS was not affected by outstanding stock purchase contracts. Diluted EPS is determined considering the potential dilution from outstanding stock purchase contracts using the treasury stock method and was not affected by the previously outstanding stock purchase contracts because they were not dilutive.

The following table presents the computation of basic and diluted EPS:

Three Months Ended March 31, (dollars in millions, except per share data)	2012		2011



Numerator for EPS:
Income (loss) from continuing operations	$	3,436	$	(1,084	)
Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		208		252
Other		33		(55	)

Total net income (loss) from continuing operations attributable to noncontrolling interests		241		197

Net income (loss) attributable to AIG from continuing operations		3,195		(1,281	)

Income (loss) from discontinued operations	$	13	$	2,585
Net income (loss) from discontinued operations attributable to noncontrolling interests		-		7

Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS		13		2,578

Deemed dividends to AIG Series E and F Preferred Stock		-		(812	)

Net income (loss) attributable to AIG common shareholders from continuing operations, applicable to common stock for EPS	$	3,195	$	(2,093	)

Denominator for EPS:
Weighted average shares outstanding – basic		1,875,972,970		1,557,748,353
Dilutive shares		29,805		-

Weighted average shares outstanding – diluted*		1,876,002,775		1,557,748,353

EPS attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations	$	1.70	$	(1.34	)
Income (loss) from discontinued operations	$	0.01	$	1.65
Diluted:
Income (loss) from continuing operations	$	1.70	$	(1.34	)
Income (loss) from discontinued operations	$	0.01	$	1.65

*: Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans and the warrants issued to the Department of the Treasury in 2009. The number of shares and warrants excluded from diluted shares outstanding were 78 million and 65 million for the three months ended March 31, 2012 and 2011, respectively, because the effect would have been anti-dilutive. Included in the anti-dilutive total for the three months ended March 31, 2012 and 2011 were 75 million and 59 million shares, respectively, representing the weighted average amount of warrants to purchase AIG Common Stock that were issued to shareholders on January 19, 2011.

Deemed dividends represent the excess of (i) the fair value of the consideration transferred to the Department of the Treasury, which consists of 1,092,169,866 shares of AIG Common Stock, $20.2 billion of redeemable AIA SPV Preferred Interests and preferred interests in the ALICO SPV, and a liability for a commitment by AIG to pay the Department of the Treasury's costs to dispose of all of its shares, over (ii) the carrying value of the Series E Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share (the Series E Preferred Stock), and Series F Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share (the Series F Preferred Stock). The fair value of the AIG Common Stock issued for the Series C Perpetual, Convertible, Participating Preferred Stock, par value $5.00 per share (Series C Preferred Stock) over the carrying value of the Series C Preferred Stock is not a deemed dividend because the Series C Preferred Stock was contingently convertible into the 562,868,096 shares of AIG Common Stock for which it was exchanged. See Notes 1 and 17 to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K for further discussion on the Recapitalization.

- Definition

Disclosure related to equity and earnings per share. Disclosure related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure. This element may be used to capture the complete disclosure pertaining to an entity's earnings per share.

+ References+ Details

EMPLOYEE BENEFITS

3 Months Ended

Mar. 31, 2012

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

11. EMPLOYEE BENEFITS

The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits:

	Pension									Postretirement


(in millions)	Non-U.S. Plans			U.S. Plans			Total			Non-U.S. Plans		U.S. Plans			Total

Three Months Ended March 31, 2012
Components of net periodic benefit cost:
Service cost	$	13		$	37		$	50		$	1	$	1		$	2
Interest cost		8			50			58			-		3			3
Expected return on assets		(5	)		(60	)		(65	)		-		-			-
Amortization of prior service (credit) cost		(1	)		(8	)		(9	)		-		(3	)		(3	)
Amortization of net (gain) loss		4			29			33			-		-			-

Net periodic benefit cost	$	19		$	48		$	67		$	1	$	1		$	2

Three Months Ended March 31, 2011
Components of net periodic benefit cost:
Service cost	$	22		$	37		$	59		$	1	$	2		$	3
Interest cost		11			52			63			1		4			5
Expected return on assets		(7	)		(63	)		(70	)		-		-			-
Amortization of prior service (credit) cost		(2	)		-			(2	)		-		-			-
Amortization of net (gain) loss		6			11			17			-		-			-

Net periodic benefit cost	$	30		$	37		$	67		$	2	$	6		$	8

Amount associated with discontinued operations	$	10		$	-		$	10		$	1	$	-		$	1

For the three-month period ended March 31, 2012, AIG contributed $21 million to its U.S. and non-U.S. pension plans and estimates it will contribute an additional $70 million for the remainder of 2012. These estimates are subject to change since contribution decisions are affected by various factors, including AIG's liquidity, market performance and management discretion.

AMENDMENTS TO U.S. PENSION AND POSTRETIREMENT MEDICAL PLANS

In the third quarter of 2011, AIG announced that, effective April 1, 2012, the AIG Retirement and AIG Excess Plans would be converted from a final average pay to a cash balance formula and the retiree medical employer subsidy for the AIG Postretirement Plan would be eliminated for certain employees. The affected plans were remeasured in 2011 to give effect to the amendments in the period that the changes were announced.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

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+ Details

INCOME TAXES

3 Months Ended

Mar. 31, 2012

INCOME TAXES

INCOME TAXES

12. INCOME TAXES

INTERIM TAX CALCULATION METHOD

AIG uses the estimated annual effective tax rate method in computing its interim tax provision. Certain items, including those deemed to be unusual, infrequent or that cannot be reliably estimated, are excluded from the estimated annual effective tax rate. In these cases, the actual tax expense or benefit applicable to that item is treated discretely, and is reported in the same period as the related item. For the three-month period ended March 31, 2012, the tax effects of the gains on ML II and certain dispositions, including a portion of the ordinary shares of AIA and common units of The Blackstone Group L.P., as well as certain actual and projected gains on SunAmerica's available-for-sale securities were treated as discrete items.

INTERIM TAX EXPENSE (BENEFIT)

For the three-month period ended March 31, 2012, the effective tax rate on pretax income from continuing operations was 25.0 percent. The effective tax rate for the three-month period ended March 31, 2012, attributable to continuing operations differs from the statutory tax rate of 35 percent primarily due to tax effects associated with tax exempt interest income and investments in partnerships, and a decrease in the life-insurance-business capital loss carryforward valuation allowance primarily attributable to the actual and projected gains on sales of SunAmerica's available-for-sale securities.

For the three-month period ended March 31, 2011, the effective tax rate on pretax loss from continuing operations was 17.3 percent. The effective tax rate for the three-month period ended March 31, 2011, attributable to continuing operations differed from the statutory rate of 35 percent primarily due to an increase in the valuation allowance attributable to continuing operations for the U.S. consolidated income tax group, tax effects associated with tax exempt interest income, investments in partnerships, and changes in uncertain tax positions.

ASSESSMENT OF DEFERRED TAX ASSET VALUATION ALLOWANCES

The evaluation of the recoverability of AIG's deferred tax asset and the need for a valuation allowance requires AIG to weigh all positive and negative evidence to reach a conclusion that it is more likely than not that all or some portion of the deferred tax asset will not be realized. The weight given to the evidence is commensurate with the extent to which it can be objectively verified. The more negative evidence that exists, the more positive evidence is necessary and the more difficult it is to support a conclusion that a valuation allowance is not needed.

AIG's framework for assessing the recoverability of the deferred tax assets requires AIG to consider all available evidence, including:

•

the nature, frequency, and amount of cumulative financial reporting income and losses in recent years;

•

the sustainability of recent operating profitability of AIG's subsidiaries;

•

the predictability of future operating profitability of the character necessary to realize the net deferred tax asset;

•

the carryforward period for the capital loss carryforwards, including the effect of reversing taxable temporary differences; and,

•

prudent and feasible tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax assets.

During the three-month period ended March 31, 2012, AIG has identified certain prudent and feasible tax planning strategies that result in an assessment that a portion of the life insurance business capital loss carryforwards will be realized on a more-likely-than-not basis prior to their expiration. The tax planning strategies are related to the actual and projected sales of available-for-sale securities in the life insurance business. Additional life insurance business capital loss carryforwards may be realized in the future if and when other prudent and feasible tax planning strategies are identified.

As a result of these tax planning strategies, AIG reached its conclusion that $190 million of the deferred tax asset valuation allowance for AIG's U.S. consolidated income tax group should be released during the three-month period ended March 31, 2012, of which $183 million was allocated to income from continuing operations.

ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES

At March 31, 2012 and December 31, 2011, AIG's unrecognized tax benefits, excluding interest and penalties, were $4.2 billion and $4.3 billion, respectively. At both March 31, 2012 and December 31, 2011, AIG's unrecognized tax benefits included $0.7 billion related to tax positions that if recognized would not affect the effective tax rate because they relate to the timing, rather than the permissibility, of the deduction. Accordingly, at March 31, 2012 and December 31, 2011, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $3.5 billion and $3.6 billion, respectively.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At March 31, 2012 and December 31, 2011, AIG accrued $707 million and $744 million, respectively, for the payment of interest (net of the federal benefit) and penalties. For the three-month periods ended March 31, 2012 and 2011, AIG recognized $37 million and $35 million, respectively, of income tax benefit for interest net of the federal detriment and penalties.

Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next twelve months, at this time it is not possible to estimate the range of the change due to the uncertainty of the potential outcomes.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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-Article 4

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-Paragraph 136, 172

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+ Details

DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2012

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

13. DISCONTINUED OPERATIONS

The results of operations for the following sales are presented as discontinued operations through the date of disposition in the 2011 Consolidated Statement of Operations:

See Note 9(D) herein for a discussion of guarantees and indemnifications associated with sales of businesses.

•

AIG Star and AIG Edison Sale — On September 30, 2010, AIG entered into a definitive agreement with Prudential Financial, Inc. for the sale of its Japan-based insurance subsidiaries, AIG Star and AIG Edison, for total consideration of $4.8 billion, including the assumption of certain outstanding debt totaling $0.6 billion owed by AIG Star and AIG Edison. The transaction closed on February 1, 2011 and AIG recognized a pre-tax gain of $3.5 billion on the sale that is reflected in Income (loss) from discontinued operations in the Consolidated Statement of Operations.

•

Nan Shan Sale — On January 12, 2011, AIG entered into an agreement to sell its 97.57 percent interest in Nan Shan Life Insurance Company, Ltd. to a Taiwan-based consortium. For the three months ended March 31, 2011, AIG recorded a pre-tax loss of $305 million.

The following table summarizes income (loss) from discontinued operations:

Three Months Ended March 31, (in millions)	2011



Revenues:
Premiums	$	2,549
Net investment income		712
Net realized capital gains (losses)		369
Other income		5

Total revenues		3,635

Benefits, claims and expenses		3,095
Interest expense allocation		2

Income (loss) from discontinued operations		538

Gain (loss) on sales		3,028

Income (loss) from discontinued operations, before tax expense (benefit)		3,566

Income tax expense (benefit)		981

Income (loss) from discontinued operations, net of income tax	$	2,585

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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+ Details

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

3 Months Ended

Mar. 31, 2012

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

14. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

The following condensed consolidating financial statements reflect the results of SunAmerica Financial Group, Inc. (SAFG, Inc.) formerly known as AIG Life Holdings (U.S.), Inc. (AIGLH), a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of SAFG, Inc.

CONDENSED CONSOLIDATING BALANCE SHEET

(in millions)	American International Group, Inc. (As Guarantor)		SAFG, Inc.		Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG



March 31, 2012
Assets:
Short-term investments	$	11,871	$	-	$	10,968		$	(2,050	)	$	20,789
Other investments^(a)		9,892		-		384,947			(8,667	)		386,172

Total investments		21,763		-		395,915			(10,717	)		406,961
Cash		86		-		1,229			-			1,315
Loans to subsidiaries^(b)		36,165		-		(36,165	)		-			-
Debt issuance costs		193		-		303			-			496
Investment in consolidated subsidiaries^(b)		72,282		34,243		(23,768	)		(82,757	)		-
Other assets, including current and deferred income taxes		24,882		2,724		122,463			(4,438	)		145,631

Total assets	$	155,371	$	36,967	$	459,977		$	(97,912	)	$	554,403

Liabilities:
Insurance liabilities	$	-	$	-	$	282,526		$	(277	)	$	282,249
Other long-term debt		36,658		1,638		46,528			(8,728	)		76,096
Other liabilities, including intercompany balances^(a)(c)		14,639		1,729		81,364			(6,139	)		91,593
Loans from subsidiaries^(b)		623		237		(860	)		-			-

Total liabilities		51,920		3,604		409,558			(15,144	)		449,938

Redeemable noncontrolling interests (see Note 1):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		-		-		-			-			-
Other		-		-		28			93			121

Total redeemable noncontrolling interests		-		-		28			93			121

Total AIG shareholders' equity		103,451		33,363		49,945			(83,308	)		103,451
Other noncontrolling interests		-		-		446			447			893

Total noncontrolling interests		-		-		446			447			893

Total equity		103,451		33,363		50,391			(82,861	)		104,344

Total liabilities and equity	$	155,371	$	36,967	$	459,977		$	(97,912	)	$	554,403

December 31, 2011
Assets:
Short-term investments	$	12,868	$	-	$	14,110		$	(4,406	)	$	22,572
Other investments^(a)		6,599		-		481,525			(100,258	)		387,866

Total investments		19,467		-		495,635			(104,664	)		410,438
Cash		176		13		1,285			-			1,474
Loans to subsidiaries^(b)		39,971		-		(39,971	)		-			-
Debt issuance costs		196		-		297			-			493
Investment in consolidated subsidiaries^(b)		79,802		32,361		(11,600	)		(100,563	)		-
Other assets, including current and deferred income taxes		24,317		2,704		117,231			(4,297	)		139,955

Total assets	$	163,929	$	35,078	$	562,877		$	(209,524	)	$	552,360

Liabilities:
Insurance liabilities	$	-	$	-	$	282,790		$	(274	)	$	282,516
Other long-term debt		35,906		1,638		138,240			(100,531	)		75,253
Other liabilities, including intercompany balances^(a)(c)		14,169		2,402		75,132			(8,028	)		83,675
Loans from subsidiaries^(b)		12,316		249		(12,565	)		-			-

Total liabilities		62,391		4,289		483,597			(108,833	)		441,444

Redeemable noncontrolling interests (see Note 1):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		-		-		-			8,427			8,427
Other		-		-		29			67			96

Total redeemable noncontrolling interests		-		-		29			8,494			8,523

Total AIG shareholders' equity		101,538		30,789		78,859			(109,648	)		101,538
Other noncontrolling interests		-		-		392			463			855

Total noncontrolling interests		-		-		392			463			855

Total equity		101,538		30,789		79,251			(109,185	)		102,393

Total liabilities and equity	$	163,929	$	35,078	$	562,877		$	(209,524	)	$	552,360

(a): Includes intercompany derivative asset positions, which are reported at fair value before credit valuation adjustment.
(b): Eliminated in consolidation.
(c): For March 31, 2012 and December 31, 2011, includes intercompany tax payable of $9.7 billion and $9.8 billion, respectively, and intercompany derivative liabilities of $768 million and $901 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable of $129 million and $128 million, respectively, for SAFG, Inc.

CONDENSED CONSOLIDATING STATEMENT OF INCOME (LOSS)

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG



Three Months Ended March 31, 2012
Revenues:
Equity in earnings of consolidated subsidiaries^(a)	$	2,820		$	(1,336	)	$	-		$	(1,484	)	$	-
Change in fair value of ML III		651			-			601			-			1,252
Other income^(b)		651			1,437			15,307			(204	)		17,191

Total revenues		4,122			101			15,908			(1,688	)		18,443

Expenses:
Other interest expense^(c)		644			54			459			(204	)		953
Net loss on extinguishment of debt		-			-			21			-			21
Other expenses		179			-			12,706			-			12,885

Total expenses		823			54			13,186			(204	)		13,859

Income (loss) from continuing operations before income tax expense		3,299			47			2,722			(1,484	)		4,584
Income tax expense		91			-			1,057			-			1,148

Income (loss) from continuing operations		3,208			47			1,665			(1,484	)		3,436
Income from discontinued operations		-			-			13			-			13

Net income (loss)		3,208			47			1,678			(1,484	)		3,449
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		-			-			-			208			208
Other		-			-			33			-			33

Total net income attributable to noncontrolling interests		-			-			33			208			241

Net income (loss) attributable to AIG	$	3,208		$	47		$	1,645		$	(1,692	)	$	3,208

Three Months Ended March 31, 2011
Revenues:
Equity in earnings of consolidated subsidiaries^(a)	$	3,992		$	336		$	-		$	(4,328	)	$	-
Change in fair value of ML III		-			-			744			-			744
Other income^(b)		41			258			16,737			(341	)		16,695

Total revenues		4,033			594			17,481			(4,669	)		17,439

Expenses:
Interest expense on FRBNY Credit Facility		72			-			-			(2	)		70
Other interest expense^(c)		751			94			487			(341	)		991
Net loss on extinguishment of debt		3,313			-			-			-			3,313
Other expenses		47			-			14,328			-			14,375

Total expenses		4,183			94			14,815			(343	)		18,749

Income (loss) from continuing operations before income tax expense (benefit)		(150	)		500			2,666			(4,326	)		(1,310	)
Income tax expense (benefit)		(316	)		81			9			-			(226	)

Income (loss) from continuing operations		166			419			2,657			(4,326	)		(1,084	)
Income (loss) from discontinued operations		1,131			-			1,456			(2	)		2,585

Net income (loss)		1,297			419			4,113			(4,328	)		1,501
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		-			-			-			252			252
Other		-			-			(55	)		-			(55	)

Total income (loss) from continuing operations attributable to noncontrolling interests		-			-			(55	)		252			197
Income from discontinued operations attributable to noncontrolling interests		-			-			7			-			7

Total net income (loss) attributable to noncontrolling interests		-			-			(48	)		252			204

Net income (loss) attributable to AIG	$	1,297		$	419		$	4,161		$	(4,580	)	$	1,297

(a): Eliminated in consolidation.
(b): Includes intercompany income of $71 million and $146 million for the three-month periods ended March 31, 2012 and 2011, respectively, for American International Group, Inc. (As Guarantor).
(c): Includes intercompany interest expense of $133 million and $195 million for the three-month periods ended March 31, 2012 and 2011, respectively, for American International Group, Inc. (As Guarantor).

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS)

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.		Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG



Three Months Ended March 31, 2012
Net income (loss)	$	3,208		$	47	$	1,678		$	(1,484	)	$	3,449
Other comprehensive income (loss)		1,725			-		(15	)		15			1,725

Comprehensive income (loss)		4,933			47		1,663			(1,469	)		5,174
Total comprehensive income attributable to noncontrolling interests		5			-		33			208			246

Comprehensive income (loss) attributable to AIG	$	4,928		$	47	$	1,630		$	(1,677	)	$	4,928



Three Months Ended March 31, 2011
Net income (loss)	$	1,297		$	419	$	4,113		$	(4,328	)	$	1,501
Other comprehensive income (loss)		(780	)		-		(522	)		522			(780	)

Comprehensive income (loss)		517			419		3,591			(3,806	)		721
Total comprehensive income (loss) attributable to noncontrolling interests		36			-		(47	)		251			240

Comprehensive income attributable to AIG	$	481		$	419	$	3,638		$	4,057		$	481

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries and Eliminations			Consolidated AIG



Three Months Ended March 31, 2012
Net cash (used in) provided by operating activities	$	(799	)	$	1,352		$	(664	)	$	(111	)

Cash flows from investing activities:
Sales of investments		764			-			25,432			26,196
Purchase of investments		-			-			(17,393	)		(17,393	)
Loans to subsidiaries – net		3,866			-			(3,866	)		-
Contributions to subsidiaries – net		(168	)		-			168			-
Net change in restricted cash		(560	)		-			29			(531	)
Net change in short-term investments		1,450			-			722			2,172
Other, net		106			-			(364	)		(258	)

Net cash (used in) provided by investing activities		5,458			-			4,728			10,186

Cash flows from financing activities:
Issuance of long-term debt		1,996			300			2,473			4,769
Repayments of long-term debt		(1,339	)		-			(2,925	)		(4,264	)
Purchase of Common Stock		(3,000	)		-			-			(3,000	)
Intercompany loans – net		(2,400	)		(1,665	)		4,065			-
Other, net		(6	)		-			(7,731	)		(7,737	)

Net cash (used in) financing activities		(4,749	)		(1,365	)		(4,118	)		(10,232	)

Effect of exchange rate changes on cash		-			-			(2	)		(2	)

Change in cash		(90	)		(13	)		(56	)		(159	)
Cash at beginning of period		176			13			1,285			1,474

Cash at end of period	$	86		$	-		$	1,229		$	1,315

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Continued)

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries and Eliminations			Consolidated AIG



Three Months Ended March 31, 2011
Net cash (used in) provided by operating activities – continuing operations	$	(4,809	)	$	131		$	(1,864	)	$	(6,542	)
Net cash (used in) provided by operating activities – discontinued operations		-			-			1,230			1,230

Net cash (used in) provided by operating activities		(4,809	)		131			(634	)		(5,312	)

Cash flows from investing activities:
Sales of investments		2,155			-			24,232			26,387
Sales of divested businesses, net		1,075			-			(1,075	)		-
Purchase of investments		(3	)		-			(21,543	)		(21,546	)
Loans to subsidiaries – net		884			-			(884	)		-
Contributions to subsidiaries – net*		(19,596	)		-			19,596			-
Net change in restricted cash		2,012			-			24,268			26,280
Net change in short-term investments		(1,083	)		-			5,263			4,180
Other, net*		57			-			54			111

Net cash (used in) provided by investing activities – continuing operations		(14,499	)		-			49,911			35,412
Net cash (used in) provided by investing activities – discontinued operations		-			-			4,205			4,205

Net cash (used in) provided by investing activities		(14,499	)		-			54,116			39,617

Cash flows from financing activities:
Federal Reserve Bank of New York credit facility repayments		(14,622	)		-			-			(14,622	)
Issuance of long-term debt		-			-			183			183
Repayments of long-term debt		(1,458	)		-			(2,436	)		(3,894	)
Proceeds from drawdown on the Department of the Treasury Commitment*		20,292			-			-			20,292
Settlement of equity unit stock purchase contract		723			-			-			723
Intercompany loans – net		14,366			(131	)		(14,235	)		-
Other, net*		-			-			(35,530	)		(35,530	)

Net cash (used in) provided by financing activities – continuing operations		19,301			(131	)		(52,018	)		(32,848	)
Net cash (used in) provided by financing activities – discontinued operations		-			-			(1,637	)		(1,637	)

Net cash (used in) provided by financing activities		19,301			(131	)		(53,655	)		(34,485	)

Effect of exchange rate changes on cash		-			-			23			23

Change in cash		(7	)		-			(150	)		(157	)
Cash at beginning of period		49			-			1,509			1,558
Change in cash of businesses held for sale		-			-			400			400

Cash at end of period	$	42		$	-		$	1,759		$	1,801

*: Includes activities related to the Recapitalization. See Note 10 herein.

SUPPLEMENTARY DISCLOSURE OF CONDENSED CONSOLIDATING CASH FLOW INFORMATION:

	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries and Eliminations			Consolidated AIG



Cash (paid) received during the three months ended March 31, 2012 for:
Interest:
Third party	$	(398	)	$	(32	)	$	(509	)	$	(939	)
Intercompany		(128	)		(22	)		150			-
Taxes:
Income tax authorities	$	2		$	-		$	(99	)	$	(97	)
Intercompany		145			-			(145	)		-

Cash (paid) received during the three months ended March 31, 2011 for:
Interest:
Third party*	$	(5,147	)	$	(32	)	$	(617	)	$	(5,796	)
Intercompany		(162	)		(62	)		224			-
Taxes:
Income tax authorities	$	14		$	-		$	(398	)	$	(384	)
Intercompany		(44	)		-			44			-

*: Includes payment of FRBNY Credit Facility accrued compounded interest of $4.7 billion in the first quarter of 2011.

American International Group, Inc. (As Guarantor) supplementary disclosure of non-cash activities:

Three Months Ended March 31, (in millions)	2012		2011



Intercompany non-cash financing and investing activities:
Capital contributions
in the form of bond available for sale securities	$	959	$	-
Return of capital and dividend received
in the form of cancellation of intercompany loan		9,303		-
in the form of bond trading securities		3,320		3,668
Intercompany loan receivable offset by intercompany payable		-		18,187
Other capital contributions – net		187		(906	)

BASIS OF PRESENTATION AND SIGNIFICANT EVENTS (Policies)

3 Months Ended

Mar. 31, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

USE OF ESTIMATES

•: estimates with respect to income taxes, including the recoverability of deferred tax assets and the predictability of future tax planning strategies and operating profitability of the character necessary for their realization;
•: recoverability of assets, including deferred policy acquisition costs (DAC), flight equipment, and reinsurance;
•: insurance liabilities, including general insurance unpaid claims and claims adjustment expenses and future policy benefits for life and accident and health contracts;
•: estimated gross profits for investment-oriented products;
•: impairment charges, including other-than-temporary impairments on financial instruments and goodwill impairments;
•: liabilities for legal contingencies; and
•: fair value measurements of certain financial assets and liabilities, including credit default swaps (CDS) and AIG's equity interest in Maiden Lane III LLC (ML III).

Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts

Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts

Advertising costs related to the issuance of insurance contracts that meet the direct-advertising criteria are deferred and amortized as part of deferred policy acquisition costs.

The method AIG uses to amortize deferred policy acquisition costs for either short- or long-duration insurance contracts did not change as a result of the adoption of the standard.

Reconsideration of Effective Control for Repurchase Agreements

Reconsideration of Effective Control for Repurchase Agreements

Common Fair Value Measurements and Disclosure Requirements in GAAP and IFRS

Common Fair Value Measurements and Disclosure Requirements in GAAP and IFRS

Presentation of Comprehensive Income

Presentation of Comprehensive Income

Testing Goodwill for Impairment

Testing Goodwill for Impairment

- Definition

Disclosure of accounting policy for deferred policy acquisition costs, including the nature, type, and amount of capitalized costs incurred to write or acquire insurance contracts, and the basis for and methodologies applied in capitalizing and amortizing such costs.

+ References+ Details

- Definition

Disclosure of accounting policy for repurchase and resale agreements. This disclosure may address (a) the reasons for entering into repurchase and resale agreements, (b) how securities transferred under such agreements are classified in the entity's financial statements, (c) whether multiple agreements with the same counterparty are offset (d) the entity's accounting policy for requiring collateral or other security for such transactions, and (e) how the entity ensures that the market value of the underlying assets remains sufficient to protect the entity in the event of default by the counterparty.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 140

-Paragraph 17

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 4

-Section 08

-Paragraph m

-Subparagraph 2

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Interpretation (FIN)

-Number 41

-Paragraph 3

-Subparagraph a, b, c

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-URI http://asc.fasb.org/subtopic&trid=2122239

+ Details

- Definition

Disclosure of accounting policy for the use of estimates in the preparation of financial statements in conformity with generally accepted accounting principles.

+ References+ Details

BASIS OF PRESENTATION AND SIGNIFICANT EVENTS (Tables)

3 Months Ended

Mar. 31, 2012

BASIS OF PRESENTATION AND SIGNIFICANT EVENTS

Schedule of supplementary disclosure of consolidated cash flow information

Three Months Ended March 31, (in millions)	2012		2011



Cash paid during the period for:
Interest^*	$	939	$	5,796
Taxes	$	97	$	384
Non-cash financing/investing activities:
Interest credited to policyholder contract deposits included in financing activities	$	1,100	$	1,255

*: 2011 includes payment of FRBNY Credit Facility accrued compounded interest of $4.7 billion, before the facility was terminated on January 14, 2011 in connection with the series of integrated transactions to recapitalize AIG (the Recapitalization) with the Department of the Treasury, the Federal Reserve Bank of New York and the AIG Credit Facility Trust, including the repayment of all amounts owned under the Credit Agreement, dated as of September 22, 2008 (as amended, the FRBNY Credit Facility).

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of amounts previously reported, effect of change due to retrospective adoption of standard and the adjusted amounts reflected in consolidated financial statements

December 31, 2011 (in millions)	As Previously Reported		Effect of Change			As Currently Reported



Balance Sheet:
Current and deferred income taxes	$	16,084	$	1,718		$	17,802
Deferred policy acquisition costs		14,026		(5,089	)		8,937
Other assets		12,824		(42	)		12,782

Total assets		555,773		(3,413	)		552,360

Retained earnings		14,332		(3,558	)		10,774
Accumulated other comprehensive income		5,008		145			5,153

Total AIG shareholders' equity		104,951		(3,413	)		101,538

Three Months Ended March 31, 2011 (dollars in millions, except per share data)	As Previously Reported			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital losses	$	(651	)	$	3		$	(648	)

Total revenues		17,436			3			17,439

Interest credited to policyholder account balances		1,105			1			1,106
Amortization of deferred acquisition costs		1,716			(485	)		1,231
Other acquisition and other insurance expenses		1,551			417			1,968

Total benefits, claims and expenses		18,816			(67	)		18,749

Income (loss) from continuing operations before income tax benefit		(1,380	)		70			(1,310	)

Income tax benefit^(a)		(200	)		(26	)		(226	)

Income (loss) from continuing operations		(1,180	)		96			(1,084	)
Income (loss) from discontinued operations, net of income tax expense^(b)		1,653			932			2,585

Net income		473			1,028			1,501

Net income attributable to AIG		269			1,028			1,297

Net income (loss) attributable to AIG common shareholders		(543	)		1,028			485

Income (loss) per share attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations	$	(1.41	)	$	0.07		$	(1.34	)
Income from discontinued operations	$	1.06		$	0.59		$	1.65
Diluted
Income (loss) from continuing operations	$	(1.41	)	$	0.07		$	(1.34	)
Income from discontinued operations	$	1.06		$	0.59		$	1.65

(a): Includes a change in the deferred tax asset valuation allowance for the period.
(b): Represents the effect on the gain on sale of AIG Star Life Insurance Co. Ltd. (AIG Star) and AIG Edison Life Insurance Company (AIG Edison), which were sold in the first quarter of 2011.

Three Months Ended March 31, 2011 (in millions)	As Previously Reported			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net income	$	473		$	1,028		$	1,501
Income from discontinued operations		(1,653	)		(932	)		(2,585	)

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings – net		(2,136	)		(3	)		(2,139	)
Depreciation and other amortization		2,336			(484	)		1,852
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(1,754	)		417			(1,337	)
Current and deferred income taxes – net		(585	)		(26	)		(611	)
Total adjustments		(5,362	)		(96	)		(5,458	)

- Definition

Tabular disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 270

-SubTopic 10

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-URI http://asc.fasb.org/extlink&oid=6523989

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 154

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

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-Subparagraph (SX 210.10-01.(b)(6))

-URI http://asc.fasb.org/extlink&oid=6958853&loc=d3e46468-122699

+ Details

SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2012

Segment results

Schedule of operations by reportable segment

	Reportable Segment


	Reportable Segment													Consolidation and Eliminations
(in millions)	Chartis			SunAmerica		Aircraft Leasing^*		Other Operations			Total			Consolidation and Eliminations			Consolidated

Three Months Ended March 31, 2012
Total revenues	$	9,798		$	3,696	$	1,154	$	4,003		$	18,651		$	(208	)	$	18,443
Pre-tax income (loss)		910			862		120		2,736			4,628			(44	)		4,584

Three Months Ended March 31, 2011
Total revenues	$	9,880		$	3,839	$	1,159	$	2,732		$	17,610		$	(171	)	$	17,439
Pre-tax income (loss)		(374	)		967		120		(1,997	)		(1,284	)		(26	)		(1,310	)

*: AIG's Aircraft Leasing operations consist of a single operating segment.

Chartis

Segment results

Schedule of operations by reportable segment

(in millions)	Commercial Insurance			Consumer Insurance			Other		Total Chartis



Three Months Ended March 31, 2012
Total revenues	$	5,929		$	3,612		$	257	$	9,798
Pre-tax income		565			234			111		910

Three Months Ended March 31, 2011
Total revenues	$	6,066		$	3,434		$	380	$	9,880
Pre-tax income (loss)		(384	)		(255	)		265		(374	)

SunAmerica

Segment results

Schedule of operations by reportable segment

(in millions)	Domestic Life Insurance		Domestic Retirement Services		Total SunAmerica



Three Months Ended March 31, 2012
Total revenues	$	2,159	$	1,537	$	3,696
Pre-tax income		488		374		862

Three Months Ended March 31, 2011
Total revenues	$	1,962	$	1,877	$	3,839
Pre-tax income		333		634		967

Other Operations

Segment results

Schedule of operations by reportable segment

(in millions)	Mortgage Guaranty		Global Capital Markets		Direct Investment Book		Retained Interests		Corporate & Other			Consolidation and Eliminations			Total Other Operations



Three Months Ended March 31, 2012
Total revenues	$	200	$	160	$	344	$	3,047	$	262		$	(10	)	$	4,003
Pre-tax income (loss)		8		88		248		3,047		(658	)		3			2,736

Three Months Ended March 31, 2011
Total revenues	$	238	$	386	$	463	$	1,649	$	11		$	(15	)	$	2,732
Pre-tax income (loss)		8		290		410		1,649		(4,347	)		(7	)		(1,997	)

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

+ References+ Details

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2012

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis

March 31, 2012 (in millions)	Level 1		Level 2		Level 3		Counterparty Netting^(a)			Cash Collateral^(b)			Total



Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	-	$	4,786	$	-	$	-		$	-		$	4,786
Obligations of states, municipalities and political subdivisions		-		36,628		1,054		-			-			37,682
Non-U.S. governments		396		25,711		15		-			-			26,122
Corporate debt		-		145,157		1,323		-			-			146,480
RMBS		-		21,811		13,240		-			-			35,051
CMBS		-		3,890		4,173		-			-			8,063
CDO/ABS		-		3,296		4,882		-			-			8,178

Total bonds available for sale		396		241,279		24,687		-			-			266,362

Bond trading securities:
U.S. government and government sponsored entities		505		6,951		-		-			-			7,456
Obligations of states, municipalities and political subdivisions		-		236		-		-			-			236
Non-U.S. governments		-		36		-		-			-			36
Corporate debt		-		1,088		5		-			-			1,093
RMBS		-		1,339		314		-			-			1,653
CMBS		-		1,280		433		-			-			1,713
CDO/ABS		-		3,878		8,416		-			-			12,294

Total bond trading securities		505		14,808		9,168		-			-			24,481

Equity securities available for sale:
Common stock		2,754		1		50		-			-			2,805
Preferred stock		-		48		106		-			-			154
Mutual funds		54		13		-		-			-			67

Total equity securities available for sale		2,808		62		156		-			-			3,026

Equity securities trading		38		85		-		-			-			123
Mortgage and other loans receivable		-		113		1		-			-			114
Other invested assets^(c)		8,332		1,576		7,186		-			-			17,094
Derivative assets:
Interest rate contracts		2		6,510		1,015		-			-			7,527
Foreign exchange contracts		-		38		-		-			-			38
Equity contracts		110		128		48		-			-			286
Commodity contracts		-		153		2		-			-			155
Credit contracts		-		1		64		-			-			65
Other contracts		-		480		214		-			-			694
Counterparty netting and cash collateral		-		-		-		(3,264	)		(1,280	)		(4,544	)

Total derivative assets		112		7,310		1,343		(3,264	)		(1,280	)		4,221

Short-term investments^(d)		433		3,975		-		-			-			4,408
Separate account assets		53,210		2,815		-		-			-			56,025
Other assets		-		701		-		-			-			701

Total	$	65,834	$	272,724	$	42,541	$	(3,264	)	$	(1,280	)	$	376,555

Liabilities:
Policyholder contract deposits	$	-	$	-	$	782	$	-		$	-		$	782
Derivative liabilities:
Interest rate contracts		-		6,307		237		-			-			6,544
Foreign exchange contracts		-		165		-		-			-			165
Equity contracts		1		232		8		-			-			241
Commodity contracts		-		156		-		-			-			156
Credit contracts^(e)		-		2		2,769		-			-			2,771
Other contracts		-		159		251		-			-			410
Counterparty netting and cash collateral		-		-		-		(3,264	)		(2,801	)		(6,065	)

Total derivative liabilities		1		7,021		3,265		(3,264	)		(2,801	)		4,222

Other long-term debt^(f)		-		10,004		575		-			-			10,579
Other liabilities^(g)		111		1,405		-		-			-			1,516

Total	$	112	$	18,430	$	4,622	$	(3,264	)	$	(2,801	)	$	17,099

December 31, 2011 (in millions)	Level 1		Level 2		Level 3		Counterparty Netting^(a)			Cash Collateral^(b)			Total



Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	174	$	5,904	$	-	$	-		$	-		$	6,078
Obligations of states, municipalities and political subdivisions		-		36,538		960		-			-			37,498
Non-U.S. governments		259		25,467		9		-			-			25,735
Corporate debt		-		142,883		1,935		-			-			144,818
RMBS		-		23,727		10,877		-			-			34,604
CMBS		-		3,991		3,955		-			-			7,946
CDO/ABS		-		3,082		4,220		-			-			7,302

Total bonds available for sale		433		241,592		21,956		-			-			263,981

Bond trading securities:
U.S. government and government sponsored entities		100		7,404		-		-			-			7,504
Obligations of states, municipalities and political subdivisions		-		257		-		-			-			257
Non-U.S. governments		-		35		-		-			-			35
Corporate debt		-		809		7		-			-			816
RMBS		-		1,345		303		-			-			1,648
CMBS		-		1,283		554		-			-			1,837
CDO/ABS		-		3,835		8,432		-			-			12,267

Total bond trading securities		100		14,968		9,296		-			-			24,364

Equity securities available for sale:
Common stock		3,294		70		57		-			-			3,421
Preferred stock		-		44		99		-			-			143
Mutual funds		55		5		-		-			-			60

Total equity securities available for sale		3,349		119		156		-			-			3,624

Equity securities trading		43		82		-		-			-			125
Mortgage and other loans receivable		-		106		1		-			-			107
Other invested assets^(c)		12,549		1,709		6,618		-			-			20,876
Derivative assets:
Interest rate contracts		2		7,251		1,033		-			-			8,286
Foreign exchange contracts		-		143		2		-			-			145
Equity contracts		92		133		38		-			-			263
Commodity contracts		-		134		2		-			-			136
Credit contracts		-		-		89		-			-			89
Other contracts		29		462		250		-			-			741
Counterparty netting and cash collateral		-		-		-		(3,660	)		(1,501	)		(5,161	)

Total derivative assets		123		8,123		1,414		(3,660	)		(1,501	)		4,499

Short-term investments^(d)		2,309		3,604		-		-			-			5,913
Separate account assets		48,502		2,886		-		-			-			51,388

Total	$	67,408	$	273,189	$	39,441	$	(3,660	)	$	(1,501	)	$	374,877

Liabilities:
Policyholder contract deposits	$	-	$	-	$	918	$	-		$	-		$	918
Derivative liabilities:
Interest rate contracts		-		6,661		248		-			-			6,909
Foreign exchange contracts		-		178		-		-			-			178
Equity contracts		-		198		10		-			-			208
Commodity contracts		-		146		-		-			-			146
Credit contracts^(e)		-		4		3,362		-			-			3,366
Other contracts		-		155		217		-			-			372
Counterparty netting and cash collateral		-		-		-		(3,660	)		(2,786	)		(6,446	)

Total derivative liabilities		-		7,342		3,837		(3,660	)		(2,786	)		4,733

Other long-term debt^(f)		-		10,258		508		-			-			10,766
Other liabilities^(g)		193		714		-		-			-			907

Total	$	193	$	18,314	$	5,263	$	(3,660	)	$	(2,786	)	$	17,324

(a): Represents netting of derivative exposures covered by a qualifying master netting agreement.
(b): Represents cash collateral posted and received. Securities collateral posted for derivative transactions that is reflected in Fixed maturity securities in the Consolidated Balance Sheet, and collateral received, not reflected in the Consolidated Balance Sheet, were $1.2 billion and $87 million, respectively, at March 31, 2012 and $1.8 billion and $100 million, respectively, at December 31, 2011.
(c): Included in Level 1 are $8.2 billion and $12.4 billion at March 31, 2012 and December 31, 2011, respectively, of AIA shares publicly traded on the Hong Kong Stock Exchange. Approximately 3 percent of the fair value of the assets recorded as Level 3 relate to various private equity, real estate, hedge fund and fund-of-funds investments that are consolidated by AIG at both March 31, 2012 and December 31, 2011. AIG's ownership in these funds represented 63.6 percent, or $0.9 billion, of Level 3 assets at March 31, 2012 and 57.3 percent, or $0.8 billion, of Level 3 assets at December 31, 2011.
(d): Included in Level 2 is the fair value of securities purchased under agreements to resell of $0.7 billion and $0.1 billion at March 31, 2012 and December 31, 2011, respectively.
(e): Included in Level 3 is the fair value derivative liability of $2.6 billion and $3.2 billion at March 31, 2012 and December 31, 2011, respectively, on the super senior credit default swap portfolio.
(f): Includes Guaranteed Investment Agreements (GIAs), notes, bonds, loans and mortgages payable.
(g): Included in Level 2 is the fair value of securities sold under agreements to repurchase and securities and spot commodities sold but not yet purchased, of $1.4 billion and $53 million, respectively, at March 31, 2012. Included in Level 2 is the fair value of securities sold under agreements to repurchase, securities and spot commodities sold but not yet purchased and trust deposits and deposits due to banks and other depositors, of $0.6 billion, $144 million and $6 million, respectively, at December 31, 2011.

Changes in Level 3 recurring fair value measurements

(in millions)	Fair value Beginning of Period^(a)			Net Realized and Unrealized Gains (Losses) Included in Income			Accumulated Other Comprehensive Income (Loss)			Purchases, Sales, Issues and Settlements, Net			Gross Transfers in			Gross Transfers out			Fair value End of Period			Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period



Three Months Ended March 31, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	960		$	1		$	16		$	100		$	-		$	(23	)	$	1,054		$	-
Non-U.S. governments		9			-			8			(2	)		-			-			15			-
Corporate debt		1,935			(16	)		76			(3	)		291			(960	)		1,323			-
RMBS		10,877			(70	)		793			1,326			348			(34	)		13,240			-
CMBS		3,955			(69	)		287			11			31			(42	)		4,173			-
CDO/ABS		4,220			14			177			70			438			(37	)		4,882			-

Total bonds available for sale		21,956			(140	)		1,357			1,502			1,108			(1,096	)		24,687			-

Bond trading securities:
Corporate debt		7			-			-			(2	)		-			-			5			-
RMBS		303			33			-			(19	)		-			(3	)		314			39
CMBS		554			33			-			(135	)		32			(51	)		433			85
CDO/ABS		8,432			1,621			-			(1,637	)		-			-			8,416			2,122

Total bond trading securities		9,296			1,687			-			(1,793	)		32			(54	)		9,168			2,246

Equity securities available for sale:
Common stock		57			14			(12	)		(14	)		5			-			50			-
Preferred stock		99			2			8			8			-			(11	)		106			-

Total equity securities available for sale		156			16			(4	)		(6	)		5			(11	)		156			-

Mortgage and other loans receivable		1			-			-			-			-			-			1			-
Other invested assets		6,618			(147	)		210			101			742			(338	)		7,186			(4	)

Total	$	38,027		$	1,416		$	1,563		$	(196	)	$	1,887		$	(1,499	)	$	41,198		$	2,242

Liabilities:
Policyholder contract deposits	$	(918	)	$	139		$	-		$	(3	)	$	-		$	-		$	(782	)	$	(144	)
Derivative liabilities, net:
Interest rate contracts		785			-			-			(7	)		-			-			778			(23	)
Foreign exchange contracts		2			-			-			(2	)		-			-			-			-
Equity contracts		28			12			-			2			(2	)		-			40			10
Commodity contracts		2			-			-			-			-			-			2			-
Credit contracts		(3,273	)		(143	)		-			711			-			-			(2,705	)		(525	)
Other contracts		33			(410	)		9			412			(81	)		-			(37	)		24

Total derivative liabilities, net		(2,423	)		(541	)		9			1,116			(83	)		-			(1,922	)		(514	)

Other long-term debt^(b)		(508	)		(110	)		(77	)		114			-			6			(575	)		(104	)

Total	$	(3,849	)	$	(512	)	$	(68	)	$	1,227		$	(83	)	$	6		$	(3,279	)	$	(762	)

(in millions)	Fair value Beginning of Period^(a)			Net Realized and Unrealized Gains (Losses) Included in Income			Accumulated Other Comprehensive Income (Loss)			Purchases, Sales, Issues and Settlements, Net			Gross Transfers In			Gross Transfers Out			Fair value End of Period			Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Period



Three Months Ended March 31, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	609		$	-		$	4		$	112		$	-		$	(23	)	$	702		$	-
Non-U.S. governments		5			-			-			-			-			-			5			-
Corporate debt		2,262			(3	)		7			(33	)		226			(1,224	)		1,235			-
RMBS		6,367			(81	)		533			38			11			-			6,868			-
CMBS		3,604			(27	)		664			72			25			(22	)		4,316			-
CDO/ABS		4,241			20			238			(455	)		72			(259	)		3,857			-

Total bonds available for sale		17,088			(91	)		1,446			(266	)		334			(1,528	)		16,983			-

Bond trading securities:
Corporate debt		-			-			-			-			18			-			18			-
RMBS		91			2			-			6			-			-			99			2
CMBS		506			38			-			(58	)		81			(44	)		523			39
CDO/ABS		9,431			1,030			5			(5	)		-			-			10,461			1,027

Total bond trading securities		10,028			1,070			5			(57	)		99			(44	)		11,101			1,068

Equity securities available for sale:
Common stock		61			15			(2	)		(15	)		6			(2	)		63			-
Preferred stock		64			(2	)		-			1			-			-			63			-

Total equity securities available for sale		125			13			(2	)		(14	)		6			(2	)		126			-

Equity securities trading		1			-			-			-			-			-			1			-
Other invested assets		7,414			53			343			(350	)		-			(390	)		7,070			(192	)

Total	$	34,656		$	1,045		$	1,792		$	(687	)	$	439		$	(1,964	)	$	35,281		$	876

Liabilities:
Policyholder contract deposits	$	(445	)	$	79		$	-		$	(3	)	$	-		$	-		$	(369	)	$	(93	)
Derivative liabilities, net:
Interest rate contracts		732			(116	)		-			3			-			-			619			(25	)
Foreign exchange contracts		16			-			-			-			-			-			16			-
Equity contracts		22			(7	)		-			38			-			(19	)		34			(7	)
Commodity contracts		23			3			-			(11	)		-			-			15			2
Credit contracts		(3,798	)		382			-			(4	)		-			-			(3,420	)		381
Other contracts		(112	)		4			25			50			-			27			(6	)		(70	)

Total derivatives liabilities, net		(3,117	)		266			25			76			-			8			(2,742	)		281

Other long-term debt^(b)		(982	)		(54	)		-			61			(21	)		-			(996	)		(42	)

Total	$	(4,544	)	$	291		$	25		$	134		$	(21	)	$	8		$	(4,107	)	$	146

(a): Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.
(b): Includes GIAs, notes, bonds, loans and mortgages payable.

Schedule of net realized and unrealized gains and losses related to Level 3 items

(in millions)	Net Investment Income			Net Realized Capital Gains (Losses)			Other Income			Total



Three Months Ended March 31, 2012
Bonds available for sale	$	231		$	(375	)	$	4		$	(140	)
Bond trading securities		1,549			-			138			1,687
Equity securities available for sale		-			16			-			16
Other invested assets		(14	)		(132	)		(1	)		(147	)
Policyholder contract deposits		-			139			-			139
Derivative liabilities, net		(1	)		19			(559	)		(541	)
Other long-term debt		-			-			(110	)		(110	)

Three Months Ended March 31, 2011
Bonds available for sale	$	81		$	(176	)	$	4		$	(91	)
Bond trading securities		1,001			-			69			1,070
Equity securities available for sale		-			13			-			13
Other invested assets		46			(15	)		22			53
Policyholder contract deposits		-			79			-			79
Derivative liabilities, net		-			(54	)		320			266
Other long-term debt		-			-			(54	)		(54	)

Gross components of purchases, sales, issuances and settlements, net

(in millions)	Purchases		Sales			Settlements			Purchases, Sales, Issues and Settlements, Net^(a)



Three Months Ended March 31, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	108	$	(8	)	$	-		$	100
Non-U.S. governments		-		(2	)		-			(2	)
Corporate debt		61		(1	)		(63	)		(3	)
RMBS		1,912		(94	)		(492	)		1,326
CMBS		126		(64	)		(51	)		11
CDO/ABS		317		(4	)		(243	)		70

Total bonds available for sale		2,524		(173	)		(849	)		1,502

Bond trading securities:
Corporate debt		-		-			(2	)		(2	)
RMBS		-		-			(19	)		(19	)
CMBS		113		(57	)		(191	)		(135	)
CDO/ABS		-		(310	)		(1,327	)		(1,637	)

Total bond trading securities		113		(367	)		(1,539	)		(1,793	)

Equity securities available for sale:
Common stock		-		(14	)		-			(14	)
Preferred stock		11		-			(3	)		8

Total equity securities available for sale		11		(14	)		(3	)		(6	)

Other invested assets		266		(4	)		(161	)		101

Total assets	$	2,914	$	(558	)	$	(2,552	)	$	(196	)

Liabilities:
Policyholder contract deposits	$	-	$	(6	)	$	3		$	(3	)
Derivative liabilities, net:
Interest rate contracts		-		-			(7	)		(7	)
Foreign exchange contracts		-		-			(2	)		(2	)
Equity contracts		2		-			-			2
Credit contracts		-		-			711			711
Other contracts		-		-			412			412

Total derivative liabilities, net		2		-			1,114			1,116

Other long-term debt^(b)		-		-			114			114

Total liabilities	$	2	$	(6	)	$	1,231		$	1,227

(in millions)	Purchases		Sales			Settlements			Purchases, Sales, Issues and Settlements, Net^(a)



Three Months Ended March 31, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	113	$	-		$	(1	)	$	112
Corporate debt		8		(19	)		(22	)		(33	)
RMBS		317		(13	)		(266	)		38
CMBS		142		-			(70	)		72
CDO/ABS		65		-			(520	)		(455	)

Total bonds available for sale		645		(32	)		(879	)		(266	)

Bond trading securities:
RMBS		-		-			6			6
CMBS		-		(5	)		(53	)		(58	)
CDO/ABS		3		-			(8	)		(5	)

Total bond trading securities		3		(5	)		(55	)		(57	)

Equity securities available for sale:
Common stock		-		(15	)		-			(15	)
Preferred stock		-		-			1			1
Mutual funds		-		-			-			-

Total equity securities available for sale		-		(15	)		1			(14	)

Other invested assets		114		(12	)		(452	)		(350	)

Total assets	$	762	$	(64	)	$	(1,385	)	$	(687	)

Liabilities:
Policyholder contract deposits	$	-	$	(9	)	$	6		$	(3	)
Derivative liabilities, net:
Interest rate contracts		-		-			3			3
Equity contracts		39		-			(1	)		38
Commodity contracts		-		-			(11	)		(11	)
Credit contracts		-		-			(4	)		(4	)
Other contracts		-		-			50			50

Total derivative liabilities, net		39		-			37			76

Other long-term debt^(b)		-		-			61			61

Total liabilities	$	39	$	(9	)	$	104		$	134

(a): There were no issues during the three-month periods ended March 31, 2012 and 2011.
(b): Includes GIAs, notes, bonds, loans and mortgages payable.

Fair value assets measured on nonrecurring basis and impairment charges

									Impairment Charges


	Assets at Fair Value								Impairment Charges
	Assets at Fair Value								Three Months Ended March 31,
	Non-Recurring Basis								Three Months Ended March 31,
(in millions)	Level 1		Level 2		Level 3		Total		2012		2011

March 31, 2012
Investment real estate	$	-	$	-	$	-	$	-	$	-	$	12
Other investments		-		-		1,621		1,621		93		106
Aircraft^*		-		-		94		94		54		114
Other assets		-		-		18		18		8		-

Total	$	-	$	-	$	1,733	$	1,733	$	155	$	232

December 31, 2011
Investment real estate	$	-	$	-	$	457	$	457
Other investments		-		-		2,199		2,199
Aircraft		-		-		1,683		1,683
Other assets		-		-		4		4

Total	$	-	$	-	$	4,343	$	4,343

*: Aircraft impairment charges include fair value adjustments on aircraft.

Significant unobservable inputs used for recurring fair value measurements

(in millions)	Fair Value at March 31, 2012		Valuation Technique	Unobservable Input^(a)	Range/ (Weighted Average)^(a)



Assets:
Corporate debt	$	685	Discounted cash flow	Yield^(b)	2.37% - 11.08% (6.73%)
Residential mortgage backed securities		12,326	Discounted cash flow	Constant prepayment rate^(c)	0.00% - 16.89% (8.02%)
				Loss severity^(c)	44.10% - 79.01% (61.56%)
				Constant default rate^(c)	4.34% - 13.83% (9.09%)
				Yield^(c)	4.09% - 11.80% (7.95%)
Certain CDO/ABS		1,961	Discounted cash flow	Constant prepayment rate^(c)	0.00% - 49.80% (18.55%)
				Loss severity^(c)	0.00% - 19.46% (3.22%)
				Constant default rate^(c)	0.00% - 2.29% (0.38%)
				Yield^(c)	2.29% - 6.57% (4.43%)
Commercial mortgage backed securities		2,665	Discounted cash flow	Yield^(c)	0.00% - 24.52% (11.58%)
Maiden Lane III		6,916	Discounted cash flow	Yield^(b)	10.93%
CDO/ABS – Direct Investment book		1,579	Binomial Expansion	Recovery rates^(b)	3% - 65% (33%)
			Technique (BET)	Diversity score^(b)	5 - 75 (10)
				Weighted average life^(b)	1.40-9.65 years (4.60 years)

Liabilities :
Policyholder contract deposits – GMWB		509	Discounted cash flow	Equity implied volatility^(b)	5.0% - 40.0%
				Base lapse rates^(b)	1.0% - 40.0%
				Dynamic lapse rates^(b)	0.2% - 60.0%
				Mortality rates^(b)	0.5% - 40.0%
				Utilization rates^(b)	0.5% - 25.0%
Derivative Liabilities – Credit contracts		1,822	BET	Recovery rates^(b)	3% - 37% (17%)
				Diversity score^(b)	6 - 44 (13)
				Weighted average life^(b)	5.27-9.65 years (6.41 years)

(a): The unobservable inputs and ranges for the constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by AIG. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by AIG because there are other factors relevant to the specific tranches owned by AIG including, but not limited to, purchase price, position in the waterfall, senior versus subordinated position and attachment points.
(b): Represents discount rates, estimates and assumptions that AIG believes would be used by market participants when valuing these assets and liabilities.
(c): Information received from independent third-party valuation service providers.

Impact of change in discount rate or cash flow estimate on fair value of Maiden Lane III Interests

Three Months Ended March 31, 2012 (in millions)	Maiden Lane III Fair Value Change



Discount Rates:
200 basis point increase	$	(717	)
200 basis point decrease		824
400 basis point increase		(1,346	)
400 basis point decrease		1,777

Estimated Future Cash Flows:
10% increase		711
10% decrease		(720	)
20% increase		1,415
20% decrease		(1,451	)

Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share

		March 31, 2012				December 31, 2011


(in millions)	Investment Category Includes	Fair Value Using Net Asset Value		Unfunded Commitments		Fair Value Using Net Asset Value		Unfunded Commitments

Investment Category
Private equity funds:
Leveraged buyout	Debt and/or equity investments made as part of a transaction in which assets of mature companies are acquired from the current shareholders, typically with the use of financial leverage	$	3,244	$	900	$	3,185	$	945
Non-U.S.	Investments that focus primarily on Asian and European based buyouts, expansion capital, special situations, turnarounds, venture capital, mezzanine and distressed opportunities strategies		171		54		165		57
Venture capital	Early-stage, high-potential, growth companies expected to generate a return through an eventual realization event, such as an initial public offering or sale of the company		301		37		316		39
Distressed	Securities of companies that are already in default, under bankruptcy protection, or troubled		189		38		182		42
Other	Real estate, energy, multi-strategy, mezzanine, and industry-focused strategies		372		150		252		98

Total private equity funds			4,277		1,179		4,100		1,181

Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		872		2		774		2
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,097		-		927		-
Relative value	Funds that seek to benefit from market inefficiencies and value discrepancies between related investments		48		-		52		-
Distressed	Securities of companies that are already in default, under bankruptcy protection or troubled		289		-		272		10
Other	Non-U.S. companies, futures and commodities, macro and multi-strategy and industry-focused strategies		736		-		748		-

Total hedge funds			3,042		2		2,773		12

Total		$	7,319	$	1,181	$	6,873	$	1,193

Gains or losses related to the eligible instruments for which AIG elected the fair value option

Three Months Ended March 31,	Gain (Loss)


(in millions)	2012			2011

Assets:
Mortgage and other loans receivable	$	22		$	(5	)
Bonds and equity securities		644			902
Trading – ML II interest		246			251
Trading – ML III interest		1,252			744
Retained interest in AIA		1,795			1,062
Short-term investments and other invested assets and Other assets		4			16

Liabilities:
Other long-term debt^(a)		(446	)		(44	)
Other liabilities		(48	)		(112	)

Total gain^(b)	$	3,469		$	2,814

(a): Includes GIAs, notes, bonds, loans and mortgages payable.
(b): Excludes discontinued operation gains or losses on instruments that were required to be carried at fair value in 2011. For instruments required to be carried at fair value, AIG recognized gains of $0.6 billion and $1.0 billion for the three months ended March 31, 2012 and 2011, respectively, that were primarily due to changes in the fair value of derivatives, trading securities and certain other invested assets for which the fair value option was not elected.

Difference between fair values and aggregate contractual principal amounts, fair value option

	March 31, 2012							December 31, 2011


(in millions)	Fair Value		Outstanding Principal Amount		Difference			Fair Value		Outstanding Principal Amount		Difference

Assets:
Mortgage and other loans receivable	$	114	$	139	$	(25	)	$	107	$	150	$	(43	)
Liabilities:
Other long-term debt*	$	10,580	$	8,330	$	2,250		$	10,766	$	8,624	$	2,142

*: Includes GIAs, notes, bonds, loans and mortgages payable.

Carrying value and estimated fair value of AIG's financial instruments

	Estimated Fair Value


	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total		Carrying Value

March 31, 2012
Assets:
Mortgage and other loans receivable	$	-	$	668	$	20,290	$	20,958	$	19,405
Other invested assets		-		462		4,098		4,560		4,864
Short-term investments		-		14,351		-		14,351		16,381
Cash		1,315		-		-		1,315		1,315
Liabilities:
Policyholder contract deposits associated with investment-type contracts		-		281		123,597		123,878		107,019
Other liabilities		-		-		476		476		476
Long-term debt		14,991		49,523		2,700		67,214		65,517

December 31, 2011
Assets:
Mortgage and other loans receivable							$	20,494	$	19,382
Other invested assets								3,390		4,701
Short-term investments								16,657		16,659
Cash								1,474		1,474
Liabilities:
Policyholder contract deposits associated
with investment-type contracts								122,125		106,950
Long-term debt								61,295		64,487

INVESTMENTS (Tables)

3 Months Ended

Mar. 31, 2012

INVESTMENTS

The amortized cost or cost and fair value of AIG's available for sale securities and other invested assets carried at fair value

(in millions)	Amortized Cost or Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Other-Than- Temporary Impairments in AOCI^(a)



March 31, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	4,456	$	332	$	(2	)	$	4,786	$	-
Obligations of states, municipalities and political subdivisions		35,096		2,657		(71	)		37,682		(25	)
Non-U.S. governments		25,106		1,066		(50	)		26,122		-
Corporate debt		135,350		12,040		(910	)		146,480		134
Mortgage-backed, asset-backed and collateralized:
RMBS		33,956		1,865		(770	)		35,051		191
CMBS		8,274		470		(681	)		8,063		(151	)
CDO/ABS		7,926		568		(316	)		8,178		103

Total mortgage-backed, asset-backed and collateralized		50,156		2,903		(1,767	)		51,292		143

Total bonds available for sale^(b)		250,164		18,998		(2,800	)		266,362		252

Equity securities available for sale:
Common stock		1,636		1,268		(99	)		2,805		-
Preferred stock		87		67		-			154		-
Mutual funds		59		8		-			67		-

Total equity securities available for sale		1,782		1,343		(99	)		3,026		-

Other invested assets carried at fair value^(c)		5,220		1,783		(157	)		6,846		-

Total	$	257,166	$	22,124	$	(3,056	)	$	276,234	$	252

(in millions)	Amortized Cost or Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value		Other-Than- Temporary Impairments in AOCI^(a)



December 31, 2011
Bonds available for sale:
U.S. government and government sponsored entities	$	5,661	$	418	$	(1	)	$	6,078	$	-
Obligations of states, municipalities and political subdivisions		35,017		2,554		(73	)		37,498		(28	)
Non-U.S. governments		24,843		994		(102	)		25,735		-
Corporate debt		134,699		11,844		(1,725	)		144,818		115
Mortgage-backed, asset-backed and collateralized:
RMBS		34,780		1,387		(1,563	)		34,604		(716	)
CMBS		8,449		470		(973	)		7,946		(276	)
CDO/ABS		7,321		454		(473	)		7,302		49

Total mortgage-backed, asset-backed and collateralized		50,550		2,311		(3,009	)		49,852		(943	)

Total bonds available for sale^(b)		250,770		18,121		(4,910	)		263,981		(856	)

Equity securities available for sale:
Common stock		1,682		1,839		(100	)		3,421		-
Preferred stock		83		60		-			143		-
Mutual funds		55		6		(1	)		60		-

Total equity securities available for sale		1,820		1,905		(101	)		3,624		-

Other invested assets carried at fair value^(c)		5,155		1,611		(269	)		6,497		-

Total	$	257,745	$	21,637	$	(5,280	)	$	274,102	$	(856	)

(a): Represents the amount of other-than-temporary impairment losses recognized in Accumulated other comprehensive income. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurement date.
(b): At March 31, 2012 and December 31, 2011, bonds available for sale held by AIG that were below investment grade or not rated totaled $27.8 billion and $24.2 billion, respectively.
(c): Represents private equity and hedge fund investments carried at fair value for which unrealized gains and losses are required to be recognized in other comprehensive income.

The fair value and gross unrealized losses on AIG's available for sale securities, aggregated by major investment category and length of time that individual securities have been in a continuous unrealized loss position

	Less than 12 Months				12 Months or More				Total


(in millions)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses

March 31, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	159	$	1	$	5	$	1	$	164	$	2
Obligations of states, municipalities and political subdivisions		996		24		276		47		1,272		71
Non-U.S. governments		2,366		20		333		30		2,699		50
Corporate debt		11,962		378		5,015		532		16,977		910
RMBS		4,322		242		2,933		528		7,255		770
CMBS		1,527		187		1,373		494		2,900		681
CDO/ABS		1,052		43		1,681		273		2,733		316

Total bonds available for sale		22,384		895		11,616		1,905		34,000		2,800

Equity securities available for sale:
Common stock		646		99		-		-		646		99
Preferred stock		2		-		-		-		2		-
Mutual funds		3		-		-		-		3		-

Total equity securities available for sale		651		99		-		-		651		99

Total	$	23,035	$	994	$	11,616	$	1,905	$	34,651	$	2,899

December 31, 2011
Bonds available for sale:
U.S. government and government sponsored entities	$	142	$	1	$	-	$	-	$	142	$	1
Obligations of states, municipalities and political subdivisions		174		1		669		72		843		73
Non-U.S. governments		3,992		67		424		35		4,416		102
Corporate debt		18,099		937		5,907		788		24,006		1,725
RMBS		10,624		714		4,148		849		14,772		1,563
CMBS		1,697		185		1,724		788		3,421		973
CDO/ABS		1,680		50		1,682		423		3,362		473

Total bonds available for sale		36,408		1,955		14,554		2,955		50,962		4,910

Equity securities available for sale:
Common stock		608		100		-		-		608		100
Preferred stock		6		-		-		-		6		-
Mutual funds		2		1		-		-		2		1

Total equity securities available for sale		616		101		-		-		616		101

Total	$	37,024	$	2,056	$	14,554	$	2,955	$	51,578	$	5,011

The amortized cost and fair value of fixed maturity securities available for sale by contractual maturity

	Total Fixed Maturity Available for Sale Securities				Fixed Maturity Securities in a Loss Position


March 31, 2012 (in millions)	Total Fixed Maturity Available for Sale Securities				Fixed Maturity Securities in a Loss Position
March 31, 2012 (in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in one year or less	$	10,047	$	10,207	$	1,299	$	1,287
Due after one year through five years		57,759		60,423		7,061		6,818
Due after five years through ten years		69,670		74,753		7,245		6,917
Due after ten years		62,532		69,687		6,540		6,090
Mortgage-backed, asset-backed and collateralized		50,156		51,292		14,655		12,888

Total	$	250,164	$	266,362	$	36,800	$	34,000

The gross realized gains and gross realized losses from sales of AIG's available for sale securities

	2012				2011


Three Months Ended March 31, (in millions)	Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses

Fixed maturities	$	490	$	16	$	188	$	55
Equity securities		451		3		105		2

Total	$	941	$	19	$	293	$	57

The fair value of AIG's trading securities

	March 31, 2012					December 31, 2011


(in millions)	Fair Value		Percent of Total			Fair Value		Percent of Total

Fixed Maturities:
U.S. government and government sponsored entities	$	7,456		30	%	$	7,504		31	%
Non-U.S. governments		36		-			35		-
Corporate debt		1,093		4			816		3
State, territories and political subdivisions		236		1			257		1
Mortgage-backed, asset-backed and collateralized:
RMBS		1,653		7			1,648		7
CMBS		1,713		7			1,837		7
CDO/ABS and other collateralized		5,378		22			5,282		22

Total mortgage-backed, asset-backed and collateralized		8,744		36			8,767		36
ML II		-		-			1,321		5
ML III		6,916		28			5,664		23

Total fixed maturities		24,481		99			24,364		99

Equity securities		123		1			125		1

Total	$	24,604		100	%	$	24,489		100	%

Credit impairments recognized in earnings for available for sale fixed maturity securities held by AIG

Three Months Ended March 31, (in millions)	2012			2011



Balance, beginning of year	$	6,504		$	6,786
Increases due to:
Credit impairments on new securities subject to impairment losses		137			52
Additional credit impairments on previously impaired securities		307			150
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell		(270	)		(170	)
Accretion on securities previously impaired due to credit*		(222	)		(100	)
Hybrid securities with embedded credit derivatives reclassified to Bond trading securities		-			(179	)
Other		8			1

Balance, end of period	$	6,464		$	6,540

*: Represents accretion recognized due to changes in cash flows expected to be collected over the remaining expected term of the credit impaired securities as well as the accretion due to the passage of time.

Schedule of Purchased Credit Impaired (PCI) Securities, at acquisition date

(in millions)	At Date of Acquisition



Contractually required payments (principal and interest)	$	18,379
Cash flows expected to be collected*		14,198
Recorded investment in acquired securities		9,080

*: Represents undiscounted expected cash flows, including both principal and interest.

Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date

(in millions)	March 31, 2012		December 31, 2011



Outstanding principal balance	$	12,823	$	10,119
Amortized cost		8,170		7,006
Fair value		8,294		6,535

Activity for accretable yield on Purchased Credit Impaired (PCI) Securities

Three Months Ended March 31, 2012 (in millions)



Balance, beginning of period	$	4,135
Newly purchased PCI securities		1,222
Disposals		(47	)
Accretion		(168	)
Effect of changes in interest rate indices		(28	)
Net reclassification from non-accretable difference, including effects of prepayments		32

Balance, end of period	$	5,146

LENDING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2012

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable

(in millions)	March 31, 2012			December 31, 2011



Commercial mortgages*	$	13,764		$	13,554
Life insurance policy loans		3,022			3,049
Commercial loans, other loans and notes receivable		3,441			3,626

Total mortgage and other loans receivable		20,227			20,229
Allowance for losses		(708	)		(740	)

Mortgage and other loans receivable, net	$	19,519		$	19,489

*: Commercial mortgages primarily represent loans for office, retail and industrial properties, with exposures in California and New York representing the largest geographic concentrations (approximately 24 percent and 14 percent, respectively, at March 31, 2012 and December 31, 2011). Over 98 percent of the commercial mortgages were current as to payments of principal and interest at March 31, 2012 and December 31, 2011.

Schedule of credit quality indicators for the commercial mortgage loans

March 31, 2012 (dollars in millions)	Number of Loans		Class														Percent of Total $


March 31, 2012 (dollars in millions)	Number of Loans		Apartments		Offices		Retail		Industrial		Hotel		Others		Total		Percent of Total $

Credit Quality Indicator:
In good standing		1,030	$	1,722	$	5,058	$	2,308	$	1,849	$	953	$	1,363	$	13,253		96	%
Restructured^(a)		7		49		205		7		-		-		21		282		2
90 days or less delinquent		10		-		-		-		-		-		9		9		-
>90 days delinquent or in process of foreclosure		11		-		99		-		44		-		77		220		2

Total^(b)		1,058	$	1,771	$	5,362	$	2,315	$	1,893	$	953	$	1,470	$	13,764		100	%

Valuation allowance			$	20	$	131	$	21	$	71	$	12	$	41	$	296		2	%

(a): Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below.
(b): Does not reflect valuation allowances.

Schedule of changes in the allowance for losses on Mortgage and other loans receivable

	2012									2011


Three Months Ended March 31, (in millions)	Commercial Mortgages			Other Loans			Total			Commercial Mortgages			Other Loans			Total

Allowance, beginning of year	$	305		$	435		$	740		$	470		$	408		$	878
Loans charged off		(6	)		(28	)		(34	)		(29	)		(5	)		(34	)
Recoveries of loans previously charged off		2			-			2			33			-			33

Net charge-offs		(4	)		(28	)		(32	)		4			(5	)		(1	)
Provision for loan losses		(5	)		6			1			(21	)		18			(3	)
Other		-			(1	)		(1	)		(31	)		-			(31	)

Allowance, end of period	$	296	*	$	412		$	708		$	422	*	$	421		$	843

*: Of the total, $60 million and $100 million relates to individually assessed credit losses on $442 million and $635 million of commercial mortgage loans as of March 31, 2012 and 2011, respectively.

VARIABLE INTEREST ENTITIES (Tables)

3 Months Ended

Mar. 31, 2012

VARIABLE INTEREST ENTITIES

Schedule of Consolidated Variable Interest Entities

	VIE Assets^(a)				VIE Liabilities				Off-Balance Sheet Exposure


(in billions)	March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011

AIA/ALICO SPVs^(b)	$	1.8	$	14.2	$	0.1	$	0.1	$	-	$	-
Real estate and investment funds		1.5		1.5		0.4		0.4		0.1		0.1
Commercial paper conduit		0.2		0.5		-		0.2		-		-
Affordable housing partnerships		2.5		2.5		0.2		0.1		-		-
Other		4.8		4.1		1.3		1.8		-		-

Total	$	10.8	$	22.8	$	2.0	$	2.6	$	0.1	$	0.1

(a): The assets of each VIE can be used only to settle specific obligations of that VIE.
(b): Decrease primarily due to the retirement of the AIA SPV Preferred Interests. See Note 1 herein for further discussion.

Schedule of Unconsolidated Variable Interest Entities

			Maximum Exposure to Loss


(in billions)	Total VIE Assets		On-Balance Sheet		Off-Balance Sheet		Total

March 31, 2012
Real estate and investment funds	$	17.2	$	2.0	$	0.2	$	2.2
Affordable housing partnerships		0.5		0.5		-		0.5
Maiden Lane III interest		20.0		6.9		-		6.9
Other		1.0		0.1		-		0.1

Total	$	38.7	$	9.5	$	0.2	$	9.7

December 31, 2011
Real estate and investment funds	$	18.3	$	2.1	$	0.3	$	2.4
Affordable housing partnerships		0.6		0.6		-		0.6
Maiden Lane II and III interests		27.1		7.0		-		7.0
Other		1.5		-		-		-

Total	$	47.5	$	9.7	$	0.3	$	10.0

Schedule of Assets And Liabilities of Variable Interest Entities by Balance Sheet Location

	Consolidated VIEs				Unconsolidated VIEs


(in billions)	March 31, 2012		December 31, 2011		March 31, 2012		December 31, 2011

Assets:
Available for sale securities	$	0.5	$	0.4	$	-	$	-
Trading securities		1.0		1.3		7.0		7.1
Mortgage and other loans receivable		0.5		0.5		-		-
Other invested assets*		4.9		17.2		2.5		2.6
Other asset accounts		3.9		3.4		-		-

Total	$	10.8	$	22.8	$	9.5	$	9.7

Liabilities:
Other long-term debt	$	1.1	$	1.7	$	-	$	-
Other liability accounts		0.9		0.9		-		-

Total	$	2.0	$	2.6	$	-	$	-

*: Decrease primarily due to the retirement of the AIA SPV Preferred Interests. See Note 1 herein for further discussion.

DERIVATIVES AND HEDGE ACCOUNTING (Tables)

3 Months Ended

Mar. 31, 2012

DERIVATIVES AND HEDGE ACCOUNTING

Notional amounts and fair values of derivative instruments

	March 31, 2012								December 31, 2011


	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
(in millions)	Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)

Derivatives designated as hedging instruments:
Interest rate contracts^(b)	$	-	$	-	$	438	$	32	$	-	$	-	$	481	$	38
Foreign exchange contracts		-		-		30		-		-		-		180		1
Derivatives not designated as hedging instruments:
Interest rate contracts^(b)		71,305		7,527		76,753		6,512		72,660		8,286		73,248		6,870
Foreign exchange contracts		1,935		38		3,177		165		3,278		145		3,399		178
Equity contracts^(c)		5,266		286		20,184		1,023		4,748		263		18,911		1,126
Commodity contracts		685		155		655		156		691		136		861		146
Credit contracts		436		65		23,778		2,771		407		89		25,857		3,366
Other contracts^(d)		23,153		694		2,202		411		24,305		741		2,125		372

Total derivatives not designated as hedging instruments		102,780		8,765		126,749		11,038		106,089		9,660		124,401		12,058

Total derivatives	$	102,780	$	8,765	$	127,217	$	11,070	$	106,089	$	9,660	$	125,062	$	12,097

(a): Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.
(b): Includes cross currency swaps.
(c): Notional amount of derivative liabilities and fair values of derivative liabilities include $19.3 billion and $0.8 billion, respectively, at March 31, 2012, and $18.3 billion and $0.9 billion, respectively, at December 31, 2011, related to bifurcated embedded derivatives. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheet.
(d): Consist primarily of contracts with multiple underlying exposures.

Fair values of derivative assets and liabilities in the Consolidated Balance Sheet

	March 31, 2012										December 31, 2011


	Derivative Assets					Derivative Liabilities					Derivative Assets					Derivative Liabilities
(in millions)	Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value

AIGFP derivatives	$	77,854	$	5,666		$	90,350	$	7,095		$	86,128	$	7,063		$	90,241	$	8,854
Non-AIGFP derivatives^(a)		24,926		3,099			36,867		3,975			19,961		2,597			34,821		3,243

Total derivatives, gross	$	102,780		8,765		$	127,217		11,070		$	106,089		9,660		$	125,062		12,097

Counterparty netting^(b)				(3,264	)				(3,264	)				(3,660	)				(3,660	)
Cash collateral^(c)				(1,280	)				(2,801	)				(1,501	)				(2,786	)

Total derivatives, net				4,221					5,005					4,499					5,651

Less: Bifurcated embedded derivatives				-					783					-					918

Total derivatives on consolidated balance sheet			$	4,221				$	4,222				$	4,499				$	4,733

(a): Represents derivatives used to hedge the foreign currency and interest rate risk associated with insurance and ILFC operations, as well as embedded derivatives included in insurance contracts. Liabilities include bifurcated embedded derivatives, which are recorded in Policyholder contract deposits.
(b): Represents netting of derivative exposures covered by a qualifying master netting agreement.
(c): Represents cash collateral posted and received.

Effect of AIG's derivative instruments in fair value hedging relationships in the Consolidated Statement of Operations

Three Months Ended March 31, (in millions)	2012			2011



Interest rate contracts^(a):
Loss recognized in earnings on derivatives	$	(2	)	$	(7	)
Gain recognized in earnings on hedged items^(b)		32			48
Loss recognized in earnings for ineffective portion and amount excluded from effectiveness testing		-			(1	)

(a): Gains and losses recognized in earnings for the ineffective portion and amounts excluded from effectiveness testing are recorded in Net realized capital losses. Includes immaterial amounts related to foreign exchange contracts.
(b): Includes $30 million and $42 million for the three-month periods ended March 31, 2012 and 2011, respectively, representing the amortization of debt basis adjustment following the discontinuation of hedge accounting recorded in Other income and Net realized capital losses.

Effect of AIG's derivative instruments in cash flow hedging relationships in the Consolidated Statement of Operations

Three Months Ended March 31, (in millions)	2012			2011



Interest rate contracts^(a):
Gain (loss) recognized in OCI on derivatives	$	(1	)	$	-
Loss reclassified from Accumulated OCI into earnings^(b)		(5	)		(18	)

(a): Gains and losses reclassified from Accumulated other comprehensive income are recorded in Other income. Gains or losses recognized in earnings on derivatives for the ineffective portion are recorded in Net realized capital losses.
(b): The effective portion of the change in fair value of a derivative qualifying as a cash flow hedge is recorded in Accumulated other comprehensive income until earnings are affected by the variability of cash flows in the hedged item. At March 31, 2012, $16 million of the deferred net loss in Accumulated other comprehensive income is expected to be recognized in earnings during the next 12 months.

Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statement of Operations

	Gains (Losses) Recognized in Earnings


Three Months Ended March 31, (in millions)	Gains (Losses) Recognized in Earnings
Three Months Ended March 31, (in millions)	2012			2011

By Derivative Type:
Interest rate contracts^(a)	$	(586	)	$	(274	)
Foreign exchange contracts		69			20
Equity contracts^(b)		(188	)		(104	)
Commodity contracts		(1	)		5
Credit contracts		151			347
Other contracts		29			(18	)

Total	$	(526	)	$	(24	)

By Classification:
Premiums	$	36		$	25
Net investment income		1			2
Net realized capital gains (losses)		(290	)		32
Other losses		(273	)		(83	)

Total	$	(526	)	$	(24	)

(a): Includes cross currency swaps.
(b): Includes embedded derivative gains of $175 million and $107 million for the three months ended March 31, 2012 and 2011, respectively.

Net notional amount, fair value of derivative (asset) liability and unrealized market valuation gain (loss)

					Fair Value of Derivative (Asset) Liability at				Unrealized Market Valuation Gain (Loss) Three Months Ended March 31,


	Net Notional Amount				Fair Value of Derivative (Asset) Liability at
	March 31, 2012^(a)		December 31, 2011^(a)		March 31, 2012^(b)(c)		December 31, 2011^(b)(c)
(in millions)	March 31, 2012^(a)		December 31, 2011^(a)		March 31, 2012^(b)(c)		December 31, 2011^(b)(c)		2012^(c)			2011^(c)

Regulatory Capital:
Corporate loans	$	1,566	$	1,830	$	-	$	-	$	-		$	-
Prime residential mortgages		2,526		3,653		-		-		-			6
Other		818		887		3		9		6			9

Total		4,910		6,370		3		9		6			15

Arbitrage:
Multi-sector CDOs^(d)		4,880		5,476		2,510		3,077		126			273
Corporate debt/CLOs^(e)		11,962		11,784		110		127		17			37

Total		16,842		17,260		2,620		3,204		143			310

Mezzanine tranches		1,029		989		19		10		(9	)		(2	)

Total	$	22,781	$	24,619	$	2,642	$	3,223	$	140		$	323

(a): Net notional amounts presented are net of all structural subordination below the covered tranches.
(b): Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.
(c): Includes credit valuation adjustment losses of $26 million and $6 million in the three-month periods ended March 31, 2012 and 2011, respectively, representing the effect of changes in AIG's credit spreads on the valuation of the derivatives liabilities.
(d): During the three-month period ended March 31, 2012, a super senior CDS transaction with a net notional amount of $470 million was terminated at approximately its fair value at the time of termination. As a result, a $416 million loss, which was previously included in the fair value derivative liability as an unrealized market valuation loss, was realized. During the three-month period ended March 31, 2012, $25 million was paid to counterparties with respect to multi-sector CDOs. Upon payment, a $25 million loss, which was previously included in the fair value of the derivative liability as an unrealized market valuation loss, was realized. Multi-sector CDOs also include $4.1 billion and $4.6 billion in net notional amount of credit default swaps written with cash settlement provisions at March 31, 2012 and December 31, 2011, respectively.
(e): Corporate debt/CLOs include $1.3 billion and $1.2 billion in net notional amount of credit default swaps written on the super senior tranches of CLOs at March 31, 2012 and December 31, 2011, respectively.

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Tables)

3 Months Ended

Mar. 31, 2012

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE

Rollforward of common stock outstanding

	Preferred Stock


	Preferred Stock											Common Stock Issued		Treasury Stock			Outstanding Shares
	AIG Series E			AIG Series F			AIG Series C			AIG Series G		Common Stock Issued		Treasury Stock			Outstanding Shares

Three Months Ended March 31, 2012
Shares, beginning of year		-			-			-			-		1,906,568,099		(9,746,617	)		1,896,821,482
Issuances		-			-			-			-		46,453		27,654			74,107
Shares repurchased		-			-			-			-		-		(103,448,276	)		(103,448,276	)

Shares, end of period		-			-			-			-		1,906,614,552		(113,167,239	)		1,793,447,313

Three Months Ended March 31, 2011
Shares, beginning of year		400,000			300,000			100,000			-		147,124,067		(6,660,908	)		140,463,159
Issuances		-			-			-			20,000		1,218,766		56			1,218,822
Shares exchanged*		(400,000	)		(300,000	)		(100,000	)		-		1,655,037,962		-			1,655,037,962

Shares, end of period		-			-			-			20,000		1,803,380,795		(6,660,852	)		1,796,719,943

*: See Note 1 to the Consolidated Financial Statements in the 2011 Annual Report on Form 10-K for further discussion of shares exchanged in connection with the Recapitalization.

Accumulated Other Comprehensive Income

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken			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, 2011, net of tax	$	(736	)	$	7,891		$	(1,028	)	$	(17	)	$	(957	)	$	5,153
Change in unrealized appreciation of investments		1,109			1,602			-			-			-			2,711
Change in deferred acquisition costs adjustment and other		(65	)		(314	)		-			-			-			(379	)
Change in future policy benefits		(41	)		75			-			-			-			34
Change in foreign currency translation adjustments		-			-			87			-			-			87
Change in net derivative gains arising from cash flow hedging activities		-			-			-			4			-			4
Net actuarial gain		-			-			-			-			41			41
Prior service credit		-			-			-			-			(12	)		(12	)
Change attributable to divestitures and deconsolidations		-			-			-			-			-			-
Deferred tax asset (liability)		(390	)		(382	)		4			18			(11	)		(761	)

Total other comprehensive income		613			981			91			22			18			1,725
Noncontrolling interests		-			4			1			-			-			5

Balance, March 31, 2012, net of tax	$	(123	)	$	8,868		$	(938	)	$	5		$	(939	)	$	6,873

Balance, December 31, 2010, net of tax	$	(659	)	$	8,888		$	298		$	(34	)	$	(869	)	$	7,624
Cumulative effect of change in accounting principle		-			283			(364	)		-			-			(81	)

Change in unrealized appreciation of investments		646			(69	)		-			-			-			577
Change in deferred acquisition costs adjustment and other		(87	)		(71	)		-			-			-			(158	)
Change in future policy benefits		-			-			-			-			-			-
Change in foreign currency translation adjustments		-			-			649			-			-			649
Change in net derivative losses arising from cash flow hedging activities		-			-			-			18			-			18
Net actuarial gain		-			-			-			-			3			3
Prior service credit		-			-			-			-			(1	)		(1	)
Change attributable to divestitures and deconsolidations		53			(1,129	)		(1,506	)		-			248			(2,334	)
Deferred tax asset (liability)		(216	)		462			340			(5	)		(115	)		466

Total other comprehensive income (loss)		396			(807	)		(517	)		13			135			(780	)
Acquisition of noncontrolling interest		-			78			84			-			(19	)		143
Noncontrolling interests		3			(3	)		36			-			-			36

Balance, March 31, 2011, net of tax	$	(266	)	$	8,445		$	(535	)	$	(21	)	$	(753	)	$	6,870

Other comprehensive income reclassification adjustments

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken			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, 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 (benefit)		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

Three Months Ended March 31, 2011
Unrealized change arising during period	$	542		$	(342	)	$	649		$	-		$	-		$	849
Less: Reclassification adjustments included in net income		(70	)		927			1,506			(18	)		(250	)		2,095

Total other comprehensive income (loss), before income tax expense (benefit)		612			(1,269	)		(857	)		18			250			(1,246	)
Less: Income tax expense (benefit)		216			(462	)		(340	)		5			115			(466	)

Total other comprehensive income (loss), net of income tax expense (benefit)	$	396		$	(807	)	$	(517	)	$	13		$	135		$	(780	)

Rollforward of non-controlling interests

	Redeemable Noncontrolling interests									Non-redeemable Noncontrolling interests


(in millions)	Held by Department of Treasury			Other			Total			Held by FRBNY			Other			Total

Three Months Ended March 31, 2012
Balance, beginning of year	$	8,427		$	96		$	8,523		$	-		$	855		$	855

Repayment to Department of the Treasury		(8,635	)		-			(8,635	)		-			-			-
Net contributions		-			18			18			-			28			28
Consolidation (deconsolidation)		-			(5	)		(5	)		-			-			-
Comprehensive income:
Net income		208			10			218			-			23			23
Accumulated other comprehensive income, net of tax:
Unrealized gains on investments		-			2			2			-			2			2
Foreign currency translation adjustments		-			-			-			-			1			1

Total accumulated other comprehensive income, net of tax		-			2			2			-			3			3

Total comprehensive income		208			12			220			-			26			26

Other		-			-			-			-			(16	)		(16	)

Balance, end of period	$	-		$	121		$	121		$	-		$	893		$	893

Three Months Ended March 31, 2011
Balance, beginning of year	$	-		$	434		$	434		$	26,358		$	1,562		$	27,920
Repurchase of SPV preferred interests in connection with Recapitalization		-			-			-			(26,432	)		-			(26,432	)
Exchange of consideration for preferred stock in connection with Recapitalization		20,292			-			20,292			-			-			-
Repayment to Department of the Treasury		(9,146	)		-			(9,146	)		-			-			-
Net contributions		-			(26	)		(26	)		-			(96	)		(96	)
Consolidation (deconsolidation)		-			(125	)		(125	)		-			(109	)		(109	)
Acquisition of noncontrolling interest		-			-			-			-			(509	)		(509	)
Comprehensive income:
Net income		178			9			187			74			(57	)		17
Accumulated other comprehensive income, net of tax: Unrealized gains on investments		-			(1	)		(1	)		-			1			1
Foreign currency translation adjustments		-			-			-			-			36			36

Total accumulated other comprehensive income (loss), net of tax		-			(1	)		(1	)		-			37			37

Total comprehensive income (loss)		178			8			186			74			(20	)		54

Other		-			(13	)		(13	)		-			(9	)		(9	)

Balance, end of period	$	11,324		$	278		$	11,602		$	-		$	819		$	819

Computation of basic and diluted EPS

Three Months Ended March 31, (dollars in millions, except per share data)	2012		2011



Numerator for EPS:
Income (loss) from continuing operations	$	3,436	$	(1,084	)
Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		208		252
Other		33		(55	)

Total net income (loss) from continuing operations attributable to noncontrolling interests		241		197

Net income (loss) attributable to AIG from continuing operations		3,195		(1,281	)

Income (loss) from discontinued operations	$	13	$	2,585
Net income (loss) from discontinued operations attributable to noncontrolling interests		-		7

Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS		13		2,578

Deemed dividends to AIG Series E and F Preferred Stock		-		(812	)

Net income (loss) attributable to AIG common shareholders from continuing operations, applicable to common stock for EPS	$	3,195	$	(2,093	)

Denominator for EPS:
Weighted average shares outstanding – basic		1,875,972,970		1,557,748,353
Dilutive shares		29,805		-

Weighted average shares outstanding – diluted*		1,876,002,775		1,557,748,353

EPS attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations	$	1.70	$	(1.34	)
Income (loss) from discontinued operations	$	0.01	$	1.65
Diluted:
Income (loss) from continuing operations	$	1.70	$	(1.34	)
Income (loss) from discontinued operations	$	0.01	$	1.65

*: Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans and the warrants issued to the Department of the Treasury in 2009. The number of shares and warrants excluded from diluted shares outstanding were 78 million and 65 million for the three months ended March 31, 2012 and 2011, respectively, because the effect would have been anti-dilutive. Included in the anti-dilutive total for the three months ended March 31, 2012 and 2011 were 75 million and 59 million shares, respectively, representing the weighted average amount of warrants to purchase AIG Common Stock that were issued to shareholders on January 19, 2011.

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

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-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 15: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 7

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

EMPLOYEE BENEFITS (Tables)

3 Months Ended

Mar. 31, 2012

EMPLOYEE BENEFITS

Components of net periodic benefit cost

	Pension									Postretirement


(in millions)	Non-U.S. Plans			U.S. Plans			Total			Non-U.S. Plans		U.S. Plans			Total

Three Months Ended March 31, 2012
Components of net periodic benefit cost:
Service cost	$	13		$	37		$	50		$	1	$	1		$	2
Interest cost		8			50			58			-		3			3
Expected return on assets		(5	)		(60	)		(65	)		-		-			-
Amortization of prior service (credit) cost		(1	)		(8	)		(9	)		-		(3	)		(3	)
Amortization of net (gain) loss		4			29			33			-		-			-

Net periodic benefit cost	$	19		$	48		$	67		$	1	$	1		$	2

Three Months Ended March 31, 2011
Components of net periodic benefit cost:
Service cost	$	22		$	37		$	59		$	1	$	2		$	3
Interest cost		11			52			63			1		4			5
Expected return on assets		(7	)		(63	)		(70	)		-		-			-
Amortization of prior service (credit) cost		(2	)		-			(2	)		-		-			-
Amortization of net (gain) loss		6			11			17			-		-			-

Net periodic benefit cost	$	30		$	37		$	67		$	2	$	6		$	8

Amount associated with discontinued operations	$	10		$	-		$	10		$	1	$	-		$	1

DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2012

DISCONTINUED OPERATIONS

Summary of income (loss) from discontinued operations

Three Months Ended March 31, (in millions)	2011



Revenues:
Premiums	$	2,549
Net investment income		712
Net realized capital gains (losses)		369
Other income		5

Total revenues		3,635

Benefits, claims and expenses		3,095
Interest expense allocation		2

Income (loss) from discontinued operations		538

Gain (loss) on sales		3,028

Income (loss) from discontinued operations, before tax expense (benefit)		3,566

Income tax expense (benefit)		981

Income (loss) from discontinued operations, net of income tax	$	2,585

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References+ Details

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

3 Months Ended

Mar. 31, 2012

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

Condensed Consolidating Balance Sheet

(in millions)	American International Group, Inc. (As Guarantor)		SAFG, Inc.		Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG



March 31, 2012
Assets:
Short-term investments	$	11,871	$	-	$	10,968		$	(2,050	)	$	20,789
Other investments^(a)		9,892		-		384,947			(8,667	)		386,172

Total investments		21,763		-		395,915			(10,717	)		406,961
Cash		86		-		1,229			-			1,315
Loans to subsidiaries^(b)		36,165		-		(36,165	)		-			-
Debt issuance costs		193		-		303			-			496
Investment in consolidated subsidiaries^(b)		72,282		34,243		(23,768	)		(82,757	)		-
Other assets, including current and deferred income taxes		24,882		2,724		122,463			(4,438	)		145,631

Total assets	$	155,371	$	36,967	$	459,977		$	(97,912	)	$	554,403

Liabilities:
Insurance liabilities	$	-	$	-	$	282,526		$	(277	)	$	282,249
Other long-term debt		36,658		1,638		46,528			(8,728	)		76,096
Other liabilities, including intercompany balances^(a)(c)		14,639		1,729		81,364			(6,139	)		91,593
Loans from subsidiaries^(b)		623		237		(860	)		-			-

Total liabilities		51,920		3,604		409,558			(15,144	)		449,938

Redeemable noncontrolling interests (see Note 1):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		-		-		-			-			-
Other		-		-		28			93			121

Total redeemable noncontrolling interests		-		-		28			93			121

Total AIG shareholders' equity		103,451		33,363		49,945			(83,308	)		103,451
Other noncontrolling interests		-		-		446			447			893

Total noncontrolling interests		-		-		446			447			893

Total equity		103,451		33,363		50,391			(82,861	)		104,344

Total liabilities and equity	$	155,371	$	36,967	$	459,977		$	(97,912	)	$	554,403

December 31, 2011
Assets:
Short-term investments	$	12,868	$	-	$	14,110		$	(4,406	)	$	22,572
Other investments^(a)		6,599		-		481,525			(100,258	)		387,866

Total investments		19,467		-		495,635			(104,664	)		410,438
Cash		176		13		1,285			-			1,474
Loans to subsidiaries^(b)		39,971		-		(39,971	)		-			-
Debt issuance costs		196		-		297			-			493
Investment in consolidated subsidiaries^(b)		79,802		32,361		(11,600	)		(100,563	)		-
Other assets, including current and deferred income taxes		24,317		2,704		117,231			(4,297	)		139,955

Total assets	$	163,929	$	35,078	$	562,877		$	(209,524	)	$	552,360

Liabilities:
Insurance liabilities	$	-	$	-	$	282,790		$	(274	)	$	282,516
Other long-term debt		35,906		1,638		138,240			(100,531	)		75,253
Other liabilities, including intercompany balances^(a)(c)		14,169		2,402		75,132			(8,028	)		83,675
Loans from subsidiaries^(b)		12,316		249		(12,565	)		-			-

Total liabilities		62,391		4,289		483,597			(108,833	)		441,444

Redeemable noncontrolling interests (see Note 1):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		-		-		-			8,427			8,427
Other		-		-		29			67			96

Total redeemable noncontrolling interests		-		-		29			8,494			8,523

Total AIG shareholders' equity		101,538		30,789		78,859			(109,648	)		101,538
Other noncontrolling interests		-		-		392			463			855

Total noncontrolling interests		-		-		392			463			855

Total equity		101,538		30,789		79,251			(109,185	)		102,393

Total liabilities and equity	$	163,929	$	35,078	$	562,877		$	(209,524	)	$	552,360

(a): Includes intercompany derivative asset positions, which are reported at fair value before credit valuation adjustment.
(b): Eliminated in consolidation.
(c): For March 31, 2012 and December 31, 2011, includes intercompany tax payable of $9.7 billion and $9.8 billion, respectively, and intercompany derivative liabilities of $768 million and $901 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable of $129 million and $128 million, respectively, for SAFG, Inc.

Condensed Consolidating Statement of Income (Loss)

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG



Three Months Ended March 31, 2012
Revenues:
Equity in earnings of consolidated subsidiaries^(a)	$	2,820		$	(1,336	)	$	-		$	(1,484	)	$	-
Change in fair value of ML III		651			-			601			-			1,252
Other income^(b)		651			1,437			15,307			(204	)		17,191

Total revenues		4,122			101			15,908			(1,688	)		18,443

Expenses:
Other interest expense^(c)		644			54			459			(204	)		953
Net loss on extinguishment of debt		-			-			21			-			21
Other expenses		179			-			12,706			-			12,885

Total expenses		823			54			13,186			(204	)		13,859

Income (loss) from continuing operations before income tax expense		3,299			47			2,722			(1,484	)		4,584
Income tax expense		91			-			1,057			-			1,148

Income (loss) from continuing operations		3,208			47			1,665			(1,484	)		3,436
Income from discontinued operations		-			-			13			-			13

Net income (loss)		3,208			47			1,678			(1,484	)		3,449
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		-			-			-			208			208
Other		-			-			33			-			33

Total net income attributable to noncontrolling interests		-			-			33			208			241

Net income (loss) attributable to AIG	$	3,208		$	47		$	1,645		$	(1,692	)	$	3,208

Three Months Ended March 31, 2011
Revenues:
Equity in earnings of consolidated subsidiaries^(a)	$	3,992		$	336		$	-		$	(4,328	)	$	-
Change in fair value of ML III		-			-			744			-			744
Other income^(b)		41			258			16,737			(341	)		16,695

Total revenues		4,033			594			17,481			(4,669	)		17,439

Expenses:
Interest expense on FRBNY Credit Facility		72			-			-			(2	)		70
Other interest expense^(c)		751			94			487			(341	)		991
Net loss on extinguishment of debt		3,313			-			-			-			3,313
Other expenses		47			-			14,328			-			14,375

Total expenses		4,183			94			14,815			(343	)		18,749

Income (loss) from continuing operations before income tax expense (benefit)		(150	)		500			2,666			(4,326	)		(1,310	)
Income tax expense (benefit)		(316	)		81			9			-			(226	)

Income (loss) from continuing operations		166			419			2,657			(4,326	)		(1,084	)
Income (loss) from discontinued operations		1,131			-			1,456			(2	)		2,585

Net income (loss)		1,297			419			4,113			(4,328	)		1,501
Less:
Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		-			-			-			252			252
Other		-			-			(55	)		-			(55	)

Total income (loss) from continuing operations attributable to noncontrolling interests		-			-			(55	)		252			197
Income from discontinued operations attributable to noncontrolling interests		-			-			7			-			7

Total net income (loss) attributable to noncontrolling interests		-			-			(48	)		252			204

Net income (loss) attributable to AIG	$	1,297		$	419		$	4,161		$	(4,580	)	$	1,297

(a): Eliminated in consolidation.
(b): Includes intercompany income of $71 million and $146 million for the three-month periods ended March 31, 2012 and 2011, respectively, for American International Group, Inc. (As Guarantor).
(c): Includes intercompany interest expense of $133 million and $195 million for the three-month periods ended March 31, 2012 and 2011, respectively, for American International Group, Inc. (As Guarantor).

Condensed Consolidating Statement of Comprehensive Income (Loss)

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.		Other Subsidiaries			Reclassifications and Eliminations			Consolidated AIG



Three Months Ended March 31, 2012
Net income (loss)	$	3,208		$	47	$	1,678		$	(1,484	)	$	3,449
Other comprehensive income (loss)		1,725			-		(15	)		15			1,725

Comprehensive income (loss)		4,933			47		1,663			(1,469	)		5,174
Total comprehensive income attributable to noncontrolling interests		5			-		33			208			246

Comprehensive income (loss) attributable to AIG	$	4,928		$	47	$	1,630		$	(1,677	)	$	4,928



Three Months Ended March 31, 2011
Net income (loss)	$	1,297		$	419	$	4,113		$	(4,328	)	$	1,501
Other comprehensive income (loss)		(780	)		-		(522	)		522			(780	)

Comprehensive income (loss)		517			419		3,591			(3,806	)		721
Total comprehensive income (loss) attributable to noncontrolling interests		36			-		(47	)		251			240

Comprehensive income attributable to AIG	$	481		$	419	$	3,638		$	4,057		$	481

Condensed Consolidating Statement of Cash Flows

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries and Eliminations			Consolidated AIG



Three Months Ended March 31, 2012
Net cash (used in) provided by operating activities	$	(799	)	$	1,352		$	(664	)	$	(111	)

Cash flows from investing activities:
Sales of investments		764			-			25,432			26,196
Purchase of investments		-			-			(17,393	)		(17,393	)
Loans to subsidiaries – net		3,866			-			(3,866	)		-
Contributions to subsidiaries – net		(168	)		-			168			-
Net change in restricted cash		(560	)		-			29			(531	)
Net change in short-term investments		1,450			-			722			2,172
Other, net		106			-			(364	)		(258	)

Net cash (used in) provided by investing activities		5,458			-			4,728			10,186

Cash flows from financing activities:
Issuance of long-term debt		1,996			300			2,473			4,769
Repayments of long-term debt		(1,339	)		-			(2,925	)		(4,264	)
Purchase of Common Stock		(3,000	)		-			-			(3,000	)
Intercompany loans – net		(2,400	)		(1,665	)		4,065			-
Other, net		(6	)		-			(7,731	)		(7,737	)

Net cash (used in) financing activities		(4,749	)		(1,365	)		(4,118	)		(10,232	)

Effect of exchange rate changes on cash		-			-			(2	)		(2	)

Change in cash		(90	)		(13	)		(56	)		(159	)
Cash at beginning of period		176			13			1,285			1,474

Cash at end of period	$	86		$	-		$	1,229		$	1,315

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (Continued)

(in millions)	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries and Eliminations			Consolidated AIG



Three Months Ended March 31, 2011
Net cash (used in) provided by operating activities – continuing operations	$	(4,809	)	$	131		$	(1,864	)	$	(6,542	)
Net cash (used in) provided by operating activities – discontinued operations		-			-			1,230			1,230

Net cash (used in) provided by operating activities		(4,809	)		131			(634	)		(5,312	)

Cash flows from investing activities:
Sales of investments		2,155			-			24,232			26,387
Sales of divested businesses, net		1,075			-			(1,075	)		-
Purchase of investments		(3	)		-			(21,543	)		(21,546	)
Loans to subsidiaries – net		884			-			(884	)		-
Contributions to subsidiaries – net*		(19,596	)		-			19,596			-
Net change in restricted cash		2,012			-			24,268			26,280
Net change in short-term investments		(1,083	)		-			5,263			4,180
Other, net*		57			-			54			111

Net cash (used in) provided by investing activities – continuing operations		(14,499	)		-			49,911			35,412
Net cash (used in) provided by investing activities – discontinued operations		-			-			4,205			4,205

Net cash (used in) provided by investing activities		(14,499	)		-			54,116			39,617

Cash flows from financing activities:
Federal Reserve Bank of New York credit facility repayments		(14,622	)		-			-			(14,622	)
Issuance of long-term debt		-			-			183			183
Repayments of long-term debt		(1,458	)		-			(2,436	)		(3,894	)
Proceeds from drawdown on the Department of the Treasury Commitment*		20,292			-			-			20,292
Settlement of equity unit stock purchase contract		723			-			-			723
Intercompany loans – net		14,366			(131	)		(14,235	)		-
Other, net*		-			-			(35,530	)		(35,530	)

Net cash (used in) provided by financing activities – continuing operations		19,301			(131	)		(52,018	)		(32,848	)
Net cash (used in) provided by financing activities – discontinued operations		-			-			(1,637	)		(1,637	)

Net cash (used in) provided by financing activities		19,301			(131	)		(53,655	)		(34,485	)

Effect of exchange rate changes on cash		-			-			23			23

Change in cash		(7	)		-			(150	)		(157	)
Cash at beginning of period		49			-			1,509			1,558
Change in cash of businesses held for sale		-			-			400			400

Cash at end of period	$	42		$	-		$	1,759		$	1,801

*: Includes activities related to the Recapitalization. See Note 10 herein.

Supplementary disclosure of cash flow information

	American International Group, Inc. (As Guarantor)			SAFG, Inc.			Other Subsidiaries and Eliminations			Consolidated AIG



Cash (paid) received during the three months ended March 31, 2012 for:
Interest:
Third party	$	(398	)	$	(32	)	$	(509	)	$	(939	)
Intercompany		(128	)		(22	)		150			-
Taxes:
Income tax authorities	$	2		$	-		$	(99	)	$	(97	)
Intercompany		145			-			(145	)		-

Cash (paid) received during the three months ended March 31, 2011 for:
Interest:
Third party*	$	(5,147	)	$	(32	)	$	(617	)	$	(5,796	)
Intercompany		(162	)		(62	)		224			-
Taxes:
Income tax authorities	$	14		$	-		$	(398	)	$	(384	)
Intercompany		(44	)		-			44			-

*: Includes payment of FRBNY Credit Facility accrued compounded interest of $4.7 billion in the first quarter of 2011.

Supplementary disclosure of non-cash activities

Three Months Ended March 31, (in millions)	2012		2011



Intercompany non-cash financing and investing activities:
Capital contributions
in the form of bond available for sale securities	$	959	$	-
Return of capital and dividend received
in the form of cancellation of intercompany loan		9,303		-
in the form of bond trading securities		3,320		3,668
Intercompany loan receivable offset by intercompany payable		-		18,187
Other capital contributions – net		187		(906	)

- Definition

Tabular disclosure of all or some of the information related to other significant noncash investing and financing activities that occurred during the accounting period and are not otherwise listed in the existing taxonomy. Noncash is defined as transactions during a period that do not result in cash receipts or cash payments in the period. "Part noncash" refers to that portion of a transaction not resulting in cash receipts or cash payments in the period.

+ References+ Details

BASIS OF PRESENTATION AND SIGNIFICANT EVENTS (Details) (USD $)	3 Months Ended				1 Months Ended		1 Months Ended
	Mar. 31, 2012	Dec. 31, 2011	Mar. 13, 2012 Department of the Treasury.	Mar. 12, 2012 Department of the Treasury.	Mar. 31, 2012 Common Stock	Mar. 13, 2012 Common Stock	Mar. 31, 2012 Common Stock Department of the Treasury.	Mar. 31, 2012 AIA Group	Mar. 07, 2012 AIA Group	Mar. 06, 2012 AIA Group	Dec. 31, 2011 AIA Group
SIGNIFICANT EVENTS
Common stock, par value (in dollars per share)	$ 2.50	$ 2.50				$ 2.50
Common stock sold by the Department of the Treasury (in shares)							207,000,000
Proceeds received by the Department of the Treasury from the sale of AIG common stock							$ 6,000,000,000
Total number of shares common stock repurchased	(103,448,276)				103,000,000
Shares repurchased	3,000,000,000				3,000,000,000
Ownership interest held by the Department of the Treasury before stock offering and sale (as a percent)			70.00%	77.00%
Gross proceeds received on sale of AIA								6,000,000,000
Ownership percentage held									19.00%	33.00%
Number of shares of AIA sold								1,720,000,000
Fair value of retained interest								$ 8,200,000,000			$ 12,400,000,000

BASIS OF PRESENTATION AND SIGNIFICANT EVENTS (Details 2) (USD $)		1 Months Ended		1 Months Ended		3 Months Ended
	Mar. 07, 2012 AIA Group	Mar. 31, 2012 3.00% senior notes due in 2015	Mar. 22, 2012 3.00% senior notes due in 2015	Mar. 31, 2012 3.80% senior notes due in 2017	Mar. 22, 2012 3.80% senior notes due in 2017	Mar. 31, 2012 International Lease Finance Corporation (ILFC)
Senior Notes Offering
Amount of debt issued		$ 750,000,000		$ 1,250,000,000		$ 2,400,000,000
Stated interest rate (as a percent)			3.00%		3.80%
Existing funds used to pay down all the AIA Preferred Interests	$ 5,600,000,000

BASIS OF PRESENTATION AND SIGNIFICANT EVENTS (Details 3) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Jan. 31, 2011	Mar. 31, 2012	Mar. 31, 2011
Cash paid during the period for:
Interest		$ 939	$ 5,796
Taxes		97	384
Non-cash financing/investing activities:
Interest credited to policyholder contract deposits included in financing activities		1,100	1,255
Payment of FRBNY Credit Facility accrued compounded interest	$ 4,700		$ 6,363

- Definition

The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes.

+ References+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Assets:
Current and deferred income taxes	$ 15,955	$ 17,802
Deferred policy acquisition costs	8,753	8,937
Other assets	14,103	12,782
Total assets	554,403	552,360
AIG shareholders' equity:
Retained Earnings	13,982	10,774
Accumulated other comprehensive income	6,873	5,153
Total AIG shareholders' equity	103,451	101,538
As Previously Reported
Assets:
Current and deferred income taxes		16,084
Deferred policy acquisition costs		14,026
Other assets		12,824
Total assets		555,773
AIG shareholders' equity:
Retained Earnings		14,332
Accumulated other comprehensive income		5,008
Total AIG shareholders' equity		104,951
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts \| Effect of Change
Assets:
Current and deferred income taxes		1,718
Deferred policy acquisition costs		(5,089)
Other assets		(42)
Total assets		(3,413)
AIG shareholders' equity:
Retained Earnings		(3,558)
Accumulated other comprehensive income		145
Total AIG shareholders' equity		$ (3,413)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 12

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 130

-Paragraph 14, 17, 26

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 31

-Article 5

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Article 3

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e637-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 14

-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e681-108580

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 13

-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e653-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name FASB Staff Position (FSP)

-Number FAS115-1/124-1

-Paragraph 15D

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References+ Details

- Definition

Net amount of deferred policy acquisition costs capitalized on contracts remaining in force as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 60

-Paragraph 60

-Subparagraph c

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 16

-Article 12

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 95-1

-Paragraph 19-23

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 120

-Paragraph 5, 6

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 60

-Paragraph 28, 29, 30, 31

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 97

-Paragraph 22

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 7

-Section 03

-Paragraph 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 210

-Section S99

-Paragraph 1

-Subparagraph (SX 210.7-03.(a),7)

-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 825

-Section 45

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6487548&loc=d3e32546-158582

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 30

-Section 45

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6481648&loc=d3e11198-158413

+ Details

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Statement of Operations:
Total net realized capital losses	$ (303)	$ (648)
Total revenues	18,443	17,439
Interest credited to policyholder account balances	1,069	1,106
Amortization of deferred acquisition costs	1,347	1,231
Other acquisition and other insurance expenses	2,258	1,968
Total benefits, claims and expenses	13,859	18,749
Income (loss) from continuing operations before income tax benefit	4,584	(1,310)
Income tax benefit	1,148	(226)
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	3,436	(1,084)
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest	13	2,585
Net income	3,449	1,501
Net income (loss) attributable to AIG	3,208	1,297
Net income (loss) attributable to AIG common shareholders	3,208	485
Basic:
Income (loss) from continuing operations (in dollars per share)	$ 1.70	$ (1.34)
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share	$ 0.01	$ 1.65
Diluted:
Income (loss) from continuing operations (in dollars per share)	$ 1.70	$ (1.34)
Income from discontinued operations (in dollars per share)	$ 0.01	$ 1.65
As Previously Reported
Statement of Operations:
Total net realized capital losses		(651)
Total revenues		17,436
Interest credited to policyholder account balances		1,105
Amortization of deferred acquisition costs		1,716
Other acquisition and other insurance expenses		1,551
Total benefits, claims and expenses		18,816
Income (loss) from continuing operations before income tax benefit		(1,380)
Income tax benefit		(200)
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest		(1,180)
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest		1,653
Net income		473
Net income (loss) attributable to AIG		269
Net income (loss) attributable to AIG common shareholders		(543)
Basic:
Income (loss) from continuing operations (in dollars per share)		$ (1.41)
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share		$ 1.06
Diluted:
Income (loss) from continuing operations (in dollars per share)		$ (1.41)
Income from discontinued operations (in dollars per share)		$ 1.06
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts \| Effect of Change
Statement of Operations:
Total net realized capital losses		3
Total revenues		3
Interest credited to policyholder account balances		1
Amortization of deferred acquisition costs		(485)
Other acquisition and other insurance expenses		417
Total benefits, claims and expenses		(67)
Income (loss) from continuing operations before income tax benefit		70
Income tax benefit		(26)
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest		96
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest		932
Net income		1,028
Net income (loss) attributable to AIG		1,028
Net income (loss) attributable to AIG common shareholders		$ 1,028
Basic:
Income (loss) from continuing operations (in dollars per share)		$ 0.07
Income (Loss) from Discontinued Operations, Net of Tax, Per Basic Share		$ 0.59
Diluted:
Income (loss) from continuing operations (in dollars per share)		$ 0.07
Income from discontinued operations (in dollars per share)		$ 0.59

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash flows from operating activities:
Net income	$ 3,449	$ 1,501
Income from discontinued operations	(13)	(2,585)
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings - net	(3,630)	(2,139)
Depreciation and other amortization	1,720	1,852
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs	(1,417)	(1,337)
Current and deferred income taxes - net	1,050	(611)
Total adjustments	(3,547)	(5,458)
As Previously Reported
Cash flows from operating activities:
Net income		473
Income from discontinued operations		(1,653)
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings - net		(2,136)
Depreciation and other amortization		2,336
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(1,754)
Current and deferred income taxes - net		(585)
Total adjustments		(5,362)
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts \| Effect of Change
Cash flows from operating activities:
Net income		1,028
Income from discontinued operations		(932)
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings - net		(3)
Depreciation and other amortization		(484)
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		417
Current and deferred income taxes - net		(26)
Total adjustments		$ (96)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (Reconsideration of Effective Control for Repurchase Agreements, USD $) In Billions, unless otherwise specified	Jan. 02, 2012
Reconsideration of Effective Control for Repurchase Agreements
Effects of adoption of standard
Repurchase agreements previously accounted for as sales that would be accounted as secured borrowings	$ 1.2
Fair value of securities under repurchase agreements	$ 1.8

SEGMENT INFORMATION (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 segment	Mar. 31, 2011
Segment results
Number of reportable segments	3
Total revenues	$ 18,443	$ 17,439
Pre-tax income (loss)	4,584	(1,310)
Chartis
Segment results
Total revenues	9,798	9,880
Pre-tax income (loss)	910	(374)
Commercial Insurance
Segment results
Total revenues	5,929	6,066
Pre-tax income (loss)	565	(384)
Consumer Insurance
Segment results
Total revenues	3,612	3,434
Pre-tax income (loss)	234	(255)
Other
Segment results
Total revenues	257	380
Pre-tax income (loss)	111	265
Total Chartis Operating Segments
Segment results
Total revenues	9,798	9,880
Pre-tax income (loss)	910	(374)
SunAmerica Financial Group
Segment results
Total revenues	3,696	3,839
Pre-tax income (loss)	862	967
Total SunAmerica Operating Segments
Segment results
Total revenues	3,696	3,839
Pre-tax income (loss)	862	967
Domestic Life Insurance
Segment results
Total revenues	2,159	1,962
Pre-tax income (loss)	488	333
Domestic Retirement Services
Segment results
Total revenues	1,537	1,877
Pre-tax income (loss)	374	634
Aircraft Leasing
Segment results
Total revenues	1,154	1,159
Pre-tax income (loss)	120	120
Other Operations
Segment results
Total revenues	4,003	2,732
Pre-tax income (loss)	2,736	(1,997)
Mortgage Guaranty
Segment results
Total revenues	200	238
Pre-tax income (loss)	8	8
Global Capital Markets
Segment results
Total revenues	160	386
Pre-tax income (loss)	88	290
Direct Investment Book
Segment results
Total revenues	344	463
Pre-tax income (loss)	248	410
Retained Interests
Segment results
Total revenues	3,047	1,649
Pre-tax income (loss)	3,047	1,649
Corporate and Other
Segment results
Total revenues	262	11
Pre-tax income (loss)	(658)	(4,347)
Other Operations, consolidation and eliminations
Segment results
Total revenues	(10)	(15)
Pre-tax income (loss)	3	(7)
Operating Segments
Segment results
Total revenues	18,651	17,610
Pre-tax income (loss)	4,628	(1,284)
Consolidation and Eliminations
Segment results
Total revenues	(208)	(171)
Pre-tax income (loss)	$ (44)	$ (26)

FAIR VALUE MEASUREMENTS (Details) (USD $)	Mar. 31, 2012	Dec. 31, 2011
Fair Value, Assets Measured on Recurring Basis
Bond trading securities, at fair value	$ 24,481,000,000	$ 24,364,000,000
Equity securities available for sale	3,026,000,000	3,624,000,000
Equity securities trading	123,000,000	125,000,000
Other invested assets	17,094,000,000	20,876,000,000
Derivative assets, at fair value	4,221,000,000	4,499,000,000
Short-term investments, portion measured at fair value	4,408,000,000	5,913,000,000
Separate account assets, at fair value	56,025,000,000	51,388,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	782,000,000	918,000,000
Derivative liabilities, at fair value	4,222,000,000	4,733,000,000
Long-term debt, portion measured at fair value	10,579,000,000	10,766,000,000
Other liabilities	1,516,000,000	907,000,000
Level 3
Fair Value, Liabilities Measured on Recurring Basis
Fair value liabilities measured on recurring basis, total	4,622,000,000
Recurring Basis \| Level 1
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	396,000,000	433,000,000
Bond trading securities, at fair value	505,000,000	100,000,000
Equity securities available for sale	2,808,000,000	3,349,000,000
Equity securities trading	38,000,000	43,000,000
Other invested assets	8,332,000,000	12,549,000,000
Derivative assets, at fair value	112,000,000	123,000,000
Short-term investments, portion measured at fair value	433,000,000	2,309,000,000
Separate account assets, at fair value	53,210,000,000	48,502,000,000
Fair value assets measured on recurring basis, total	65,834,000,000	67,408,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	1,000,000
Other liabilities	111,000,000	193,000,000
Fair value liabilities measured on recurring basis, total	112,000,000	193,000,000
Recurring Basis \| Level 1 \| AIA Group Limited (AIA)
Fair Value, Assets Measured on Recurring Basis
Other invested assets	8,200,000,000	12,400,000,000
Recurring Basis \| Level 1 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	2,000,000	2,000,000
Recurring Basis \| Level 1 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	110,000,000	92,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	1,000,000
Recurring Basis \| Level 1 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value		29,000,000
Recurring Basis \| Level 1 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale		174,000,000
Bond trading securities, at fair value	505,000,000	100,000,000
Recurring Basis \| Level 1 \| Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	396,000,000	259,000,000
Recurring Basis \| Level 1 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	2,754,000,000	3,294,000,000
Recurring Basis \| Level 1 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	54,000,000	55,000,000
Recurring Basis \| Level 2
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	241,279,000,000	241,592,000,000
Bond trading securities, at fair value	14,808,000,000	14,968,000,000
Equity securities available for sale	62,000,000	119,000,000
Equity securities trading	85,000,000	82,000,000
Mortgage and other loans receivable	113,000,000	106,000,000
Other invested assets	1,576,000,000	1,709,000,000
Derivative assets, at fair value	7,310,000,000	8,123,000,000
Short-term investments, portion measured at fair value	3,975,000,000	3,604,000,000
Separate account assets, at fair value	2,815,000,000	2,886,000,000
Other assets	701,000,000
Fair value assets measured on recurring basis, total	272,724,000,000	273,189,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	7,021,000,000	7,342,000,000
Long-term debt, portion measured at fair value	10,004,000,000	10,258,000,000
Other liabilities	1,405,000,000	714,000,000
Fair value liabilities measured on recurring basis, total	18,430,000,000	18,314,000,000
Securities purchased under agreements to resell	700,000,000	100,000,000
Recurring Basis \| Level 2 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	6,510,000,000	7,251,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	6,307,000,000	6,661,000,000
Recurring Basis \| Level 2 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	38,000,000	143,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	165,000,000	178,000,000
Recurring Basis \| Level 2 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	128,000,000	133,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	232,000,000	198,000,000
Recurring Basis \| Level 2 \| Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	153,000,000	134,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	156,000,000	146,000,000
Recurring Basis \| Level 2 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	1,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	2,000,000	4,000,000
Recurring Basis \| Level 2 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	480,000,000	462,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	159,000,000	155,000,000
Recurring Basis \| Level 2 \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	4,786,000,000	5,904,000,000
Bond trading securities, at fair value	6,951,000,000	7,404,000,000
Recurring Basis \| Level 2 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	36,628,000,000	36,538,000,000
Bond trading securities, at fair value	236,000,000	257,000,000
Recurring Basis \| Level 2 \| Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	25,711,000,000	25,467,000,000
Bond trading securities, at fair value	36,000,000	35,000,000
Recurring Basis \| Level 2 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	145,157,000,000	142,883,000,000
Bond trading securities, at fair value	1,088,000,000	809,000,000
Recurring Basis \| Level 2 \| Residential mortgage backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	21,811,000,000	23,727,000,000
Bond trading securities, at fair value	1,339,000,000	1,345,000,000
Recurring Basis \| Level 2 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	3,890,000,000	3,991,000,000
Bond trading securities, at fair value	1,280,000,000	1,283,000,000
Recurring Basis \| Level 2 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	3,296,000,000	3,082,000,000
Bond trading securities, at fair value	3,878,000,000	3,835,000,000
Recurring Basis \| Level 2 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	1,000,000	70,000,000
Recurring Basis \| Level 2 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	48,000,000	44,000,000
Recurring Basis \| Level 2 \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	13,000,000	5,000,000
Recurring Basis \| Level 2 \| Securities sold under agreements to repurchase
Fair Value, Liabilities Measured on Recurring Basis
Other liabilities	1,400,000,000	600,000,000
Recurring Basis \| Level 2 \| Securities and spot commodities sold but not yet purchased
Fair Value, Liabilities Measured on Recurring Basis
Other liabilities	53,000,000	144,000,000
Recurring Basis \| Level 2 \| Trust deposits and deposits due to banks and other depositors
Fair Value, Liabilities Measured on Recurring Basis
Other liabilities		6,000,000
Recurring Basis \| Level 3
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	24,687,000,000	21,956,000,000
Bond trading securities, at fair value	9,168,000,000	9,296,000,000
Equity securities available for sale	156,000,000	156,000,000
Mortgage and other loans receivable	1,000,000	1,000,000
Other invested assets	7,186,000,000	6,618,000,000
Derivative assets, at fair value	1,343,000,000	1,414,000,000
Fair value assets measured on recurring basis, total	42,541,000,000	39,441,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	782,000,000	918,000,000
Derivative liabilities, at fair value	3,265,000,000	3,837,000,000
Long-term debt, portion measured at fair value	575,000,000	508,000,000
Fair value liabilities measured on recurring basis, total	4,622,000,000	5,263,000,000
Percent of the fair value of the assets recorded as level 3 relating to various private equity, real estate, hedge fund and fund-of-funds investments	3.00%	3.00%
AIG's Ownership in private equity, real estate, hedge funds and fund-of-funds instrument	900,000,000	800,000,000
Percentage of investments in financial instrument owned	63.60%	57.30%
Fair value derivative liability on AIGFP super senior credit default swap portfolio included in Level 3 unrealized loss on swaps, options and forward transactions	2,600,000,000	3,200,000,000
Recurring Basis \| Level 3 \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	1,015,000,000	1,033,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	237,000,000	248,000,000
Recurring Basis \| Level 3 \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value		2,000,000
Recurring Basis \| Level 3 \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	48,000,000	38,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	8,000,000	10,000,000
Recurring Basis \| Level 3 \| Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	2,000,000	2,000,000
Recurring Basis \| Level 3 \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	64,000,000	89,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	2,769,000,000	3,362,000,000
Recurring Basis \| Level 3 \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	214,000,000	250,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	251,000,000	217,000,000
Recurring Basis \| Level 3 \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	1,054,000,000	960,000,000
Recurring Basis \| Level 3 \| Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	15,000,000	9,000,000
Recurring Basis \| Level 3 \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	1,323,000,000	1,935,000,000
Bond trading securities, at fair value	5,000,000	7,000,000
Recurring Basis \| Level 3 \| Residential mortgage backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	13,240,000,000	10,877,000,000
Bond trading securities, at fair value	314,000,000	303,000,000
Recurring Basis \| Level 3 \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	4,173,000,000	3,955,000,000
Bond trading securities, at fair value	433,000,000	554,000,000
Recurring Basis \| Level 3 \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	4,882,000,000	4,220,000,000
Bond trading securities, at fair value	8,416,000,000	8,432,000,000
Recurring Basis \| Level 3 \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	50,000,000	57,000,000
Recurring Basis \| Level 3 \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	106,000,000	99,000,000
Recurring Basis \| Counterparty Netting
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	(3,264,000,000)	(3,660,000,000)
Fair value assets measured on recurring basis, total	(3,264,000,000)	(3,660,000,000)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	(3,264,000,000)	(3,660,000,000)
Fair value liabilities measured on recurring basis, total	(3,264,000,000)	(3,660,000,000)
Recurring Basis \| Counterparty Netting \| Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	(3,264,000,000)	(3,660,000,000)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	(3,264,000,000)	(3,660,000,000)
Recurring Basis \| Cash Collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	(1,280,000,000)	(1,501,000,000)
Fair value assets measured on recurring basis, total	(1,280,000,000)	(1,501,000,000)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	(2,801,000,000)	(2,786,000,000)
Fair value liabilities measured on recurring basis, total	(2,801,000,000)	(2,786,000,000)
Securities collateral posted for derivative transactions	1,200,000,000	1,800,000,000
Securities collateral received not reflected in balance sheet	87,000,000	100,000,000
Recurring Basis \| Cash Collateral \| Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	(1,280,000,000)	(1,501,000,000)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	(2,801,000,000)	(2,786,000,000)
Recurring Basis \| Total Fair Value
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	266,362,000,000	263,981,000,000
Bond trading securities, at fair value	24,481,000,000	24,364,000,000
Equity securities available for sale	3,026,000,000	3,624,000,000
Equity securities trading	123,000,000	125,000,000
Mortgage and other loans receivable	114,000,000	107,000,000
Other invested assets	17,094,000,000	20,876,000,000
Derivative assets, at fair value	4,221,000,000	4,499,000,000
Short-term investments, portion measured at fair value	4,408,000,000	5,913,000,000
Separate account assets, at fair value	56,025,000,000	51,388,000,000
Other assets	701,000,000
Fair value assets measured on recurring basis, total	376,555,000,000	374,877,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	782,000,000	918,000,000
Derivative liabilities, at fair value	4,222,000,000	4,733,000,000
Long-term debt, portion measured at fair value	10,579,000,000	10,766,000,000
Other liabilities	1,516,000,000	907,000,000
Fair value liabilities measured on recurring basis, total	17,099,000,000	17,324,000,000
Recurring Basis \| Total Fair Value \| Interest rate contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	7,527,000,000	8,286,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	6,544,000,000	6,909,000,000
Recurring Basis \| Total Fair Value \| Foreign exchange contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	38,000,000	145,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	165,000,000	178,000,000
Recurring Basis \| Total Fair Value \| Equity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	286,000,000	263,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	241,000,000	208,000,000
Recurring Basis \| Total Fair Value \| Commodity contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	155,000,000	136,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	156,000,000	146,000,000
Recurring Basis \| Total Fair Value \| Credit contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	65,000,000	89,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	2,771,000,000	3,366,000,000
Recurring Basis \| Total Fair Value \| Other contracts
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	694,000,000	741,000,000
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	410,000,000	372,000,000
Recurring Basis \| Total Fair Value \| Counterparty netting and cash collateral
Fair Value, Assets Measured on Recurring Basis
Derivative assets, at fair value	(4,544,000,000)	(5,161,000,000)
Fair Value, Liabilities Measured on Recurring Basis
Derivative liabilities, at fair value	(6,065,000,000)	(6,446,000,000)
Recurring Basis \| Total Fair Value \| U.S. government and government sponsored entities
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	4,786,000,000	6,078,000,000
Bond trading securities, at fair value	7,456,000,000	7,504,000,000
Recurring Basis \| Total Fair Value \| Obligations of states, municipalities and political subdivisions
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	37,682,000,000	37,498,000,000
Bond trading securities, at fair value	236,000,000	257,000,000
Recurring Basis \| Total Fair Value \| Non-U.S. government
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	26,122,000,000	25,735,000,000
Bond trading securities, at fair value	36,000,000	35,000,000
Recurring Basis \| Total Fair Value \| Corporate debt
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	146,480,000,000	144,818,000,000
Bond trading securities, at fair value	1,093,000,000	816,000,000
Recurring Basis \| Total Fair Value \| Residential mortgage backed securities (RMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	35,051,000,000	34,604,000,000
Bond trading securities, at fair value	1,653,000,000	1,648,000,000
Recurring Basis \| Total Fair Value \| Commercial mortgage-backed securities (CMBS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	8,063,000,000	7,946,000,000
Bond trading securities, at fair value	1,713,000,000	1,837,000,000
Recurring Basis \| Total Fair Value \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale	8,178,000,000	7,302,000,000
Bond trading securities, at fair value	12,294,000,000	12,267,000,000
Recurring Basis \| Total Fair Value \| Common Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	2,805,000,000	3,421,000,000
Recurring Basis \| Total Fair Value \| Preferred Stock
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	154,000,000	143,000,000
Recurring Basis \| Total Fair Value \| Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Equity securities available for sale	$ 67,000,000	$ 60,000,000

FAIR VALUE MEASUREMENTS (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended													3 Months Ended					3 Months Ended													3 Months Ended																												3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Mar. 31, 2012 Liabilities	Mar. 31, 2011 Liabilities	Mar. 31, 2012 Policyholder contract deposits	Mar. 31, 2011 Policyholder contract deposits	Mar. 31, 2012 Derivative liabilities, net	Mar. 31, 2011 Derivative liabilities, net	Mar. 31, 2012 Interest rate contracts	Mar. 31, 2011 Interest rate contracts	Mar. 31, 2012 Foreign exchange contracts	Mar. 31, 2011 Foreign exchange contracts	Dec. 31, 2010 Foreign exchange contracts	Mar. 31, 2012 Equity contracts	Mar. 31, 2011 Equity contracts	Mar. 31, 2011 Commodity contracts	Mar. 31, 2012 Commodity contracts	Dec. 31, 2011 Commodity contracts	Mar. 31, 2012 Credit contracts	Mar. 31, 2011 Credit contracts	Mar. 31, 2012 Other contracts	Mar. 31, 2011 Other contracts	Mar. 31, 2012 Other long-term debt	Mar. 31, 2011 Other long-term debt	Mar. 31, 2012 Bonds available for sale	Mar. 31, 2011 Bonds available for sale	Mar. 31, 2012 Bonds available for sale Obligations of states, municipalities and political subdivisions	Mar. 31, 2011 Bonds available for sale Obligations of states, municipalities and political subdivisions	Mar. 31, 2012 Bonds available for sale Non-U.S. government	Mar. 31, 2011 Bonds available for sale Non-U.S. government	Dec. 31, 2010 Bonds available for sale Non-U.S. government	Mar. 31, 2012 Bonds available for sale Corporate debt	Mar. 31, 2011 Bonds available for sale Corporate debt	Mar. 31, 2012 Bonds available for sale Residential mortgage backed securities (RMBS)	Mar. 31, 2011 Bonds available for sale Residential mortgage backed securities (RMBS)	Mar. 31, 2012 Bonds available for sale Commercial mortgage-backed securities (CMBS)	Mar. 31, 2011 Bonds available for sale Commercial mortgage-backed securities (CMBS)	Mar. 31, 2012 Bonds available for sale Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Mar. 31, 2011 Bonds available for sale Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Mar. 31, 2012 Bond trading securities	Mar. 31, 2011 Bond trading securities	Mar. 31, 2012 Bond trading securities Corporate debt	Mar. 31, 2011 Bond trading securities Corporate debt	Mar. 31, 2012 Bond trading securities Residential mortgage backed securities (RMBS)	Mar. 31, 2011 Bond trading securities Residential mortgage backed securities (RMBS)	Mar. 31, 2012 Bond trading securities Commercial mortgage-backed securities (CMBS)	Mar. 31, 2011 Bond trading securities Commercial mortgage-backed securities (CMBS)	Mar. 31, 2012 Bond trading securities Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Mar. 31, 2011 Bond trading securities Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Mar. 31, 2012 Equity securities available for sale	Mar. 31, 2011 Equity securities available for sale	Mar. 31, 2012 Equity securities available for sale Common Stock	Mar. 31, 2011 Equity securities available for sale Common Stock	Mar. 31, 2012 Equity securities available for sale Preferred Stock	Mar. 31, 2011 Equity securities available for sale Preferred Stock	Mar. 31, 2011 Equity securities trading	Dec. 31, 2010 Equity securities trading	Mar. 31, 2012 Mortgage and other loans receivable	Dec. 31, 2011 Mortgage and other loans receivable	Mar. 31, 2012 Other invested assets	Mar. 31, 2011 Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	$ 38,027	$ 34,656																							$ 21,956	$ 17,088	$ 960	$ 609	$ 9	$ 5	$ 5	$ 1,935	$ 2,262	$ 10,877	$ 6,367	$ 3,955	$ 3,604	$ 4,220	$ 4,241	$ 9,296	$ 10,028	$ 7		$ 303	$ 91	$ 554	$ 506	$ 8,432	$ 9,431	$ 156	$ 125	$ 57	$ 61	$ 99	$ 64	$ 1	$ 1	$ 1	$ 1	$ 6,618	$ 7,414
Net Realized and Unrealized Gains (Losses) Included in Income	1,416	1,045																							140	91	1					(16)	(3)	(70)	(81)	(69)	(27)	14	20	(1,687)	(1,070)			33	2	33	38	1,621	1,030	16	13	14	15	2	(2)					147	(53)
Accumulated Other Comprehensive Income (loss)	1,563	1,792																							1,357	1,446	16	4	8			76	7	793	533	287	664	177	238		5								5	(4)	(2)	(12)	(2)	8						210	343
Purchases, Sales, Issuances and Settlements, Net	(196)	(687)																							1,502	(266)	100	112	(2)			(3)	(33)	1,326	38	11	72	70	(455)	(1,793)	(57)	(2)		(19)	6	(135)	(58)	(1,637)	(5)	(6)	(14)	(14)	(15)	8	1					101	(350)
Gross Transfers in, assets	1,887	439																							1,108	334						291	226	348	11	31	25	438	72	32	99		18			32	81			5	6	5	6							742
Gross Transfers out, assets	(1,499)	(1,964)																							(1,096)	(1,528)	(23)	(23)				(960)	(1,224)	(34)		(42)	(22)	(37)	(259)	(54)	(44)			(3)		(51)	(44)			(11)	(2)		(2)	(11)						(338)	(390)
Balance End of Period	41,198	35,281																							24,687	16,983	1,054	702	15	5	5	1,323	1,235	13,240	6,868	4,173	4,316	4,882	3,857	9,168	11,101	5	18	314	99	433	523	8,416	10,461	156	126	50	63	106	63	1	1	1	1	7,186	7,070
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	2,242	876																																						2,246	1,068			39	2	85	39	2,122	1,027											(4)	(192)
Balance at the Beginning of the Period			(3,849)	(4,544)	(918)	(445)	(2,423)	(3,117)	785	732	2	16	16	28	22	23	2	2	(3,273)	(3,798)	33	(112)	(508)	(982)
Net Realized and Unrealized Gains (Losses) Included in Income			(512)	291	139	79	(541)	266		(116)				12	(7)	3			(143)	382	(410)	4	(110)	(54)
Accumulated Other Comprehensive Income (loss)			(68)	25			9	25													9	25	(77)
Purchases, Sales, Issuances and Settlements-Net			1,227	134	(3)	(3)	1,116	76	(7)	3	(2)			2	38	(11)			711	(4)	412	50	114	61
Gross Transfers in, liabilities	(83)		(83)	(21)			(83)							(2)							(81)			(21)
Gross Transfers out, liabilities	83		6	8				8							(19)							27	6
Balance at the End of the Period			(3,279)	(4,107)	(782)	(369)	(1,922)	(2,742)	778	619		16	16	40	34	15	2	2	(2,705)	(3,420)	(37)	(6)	(575)	(996)
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities			$ (762)	$ 146	$ (144)	$ (93)	$ (514)	$ 281	$ (23)	$ (25)				$ 10	$ (7)	$ 2			$ (525)	$ 381	$ 24	$ (70)	$ (104)	$ (42)

FAIR VALUE MEASUREMENTS (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in income, assets	$ (1,416)	$ (1,045)
Policyholder contract deposits
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in net realized capital gains, liabilities measured at Level 3	139	79
Net realized and unrealized gains (losses) included in income, liabilities	139	79
Derivative liabilities, net
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in net investment income, liabilities measured at Level 3	(1)
Net realized and unrealized gains (losses) included in net realized capital gains, liabilities measured at Level 3	19	(54)
Net realized and unrealized gains (losses) included in other income, liabilities measured at Level 3	(559)	320
Net realized and unrealized gains (losses) included in income, liabilities	(541)	266
Other long-term debt
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in other income, liabilities measured at Level 3	(110)	(54)
Net realized and unrealized gains (losses) included in income, liabilities	(110)	(54)
Bonds available for sale
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in net investment income, assets measured at Level 3	231	81
Net realized and unrealized gains (losses) included in net realized capital gains, assets measured at Level 3	(375)	(176)
Net realized and unrealized gains (losses) included in other income, assets measured at Level 3	4	4
Net realized and unrealized gains (losses) included in income, assets	(140)	(91)
Bond trading securities
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in net investment income, assets measured at Level 3	1,549	1,001
Net realized and unrealized gains (losses) included in other income, assets measured at Level 3	138	69
Net realized and unrealized gains (losses) included in income, assets	1,687	1,070
Equity securities available for sale
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in net realized capital gains, assets measured at Level 3	(16)	(13)
Net realized and unrealized gains (losses) included in income, assets	(16)	(13)
Other invested assets
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in net investment income, assets measured at Level 3	(14)	46
Net realized and unrealized gains (losses) included in net realized capital gains, assets measured at Level 3	(132)	(15)
Net realized and unrealized gains (losses) included in other income, assets measured at Level 3	(1)	22
Net realized and unrealized gains (losses) included in income, assets	$ (147)	$ 53

FAIR VALUE MEASUREMENTS (Details 4) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, Sales, Issuances and Settlements, Net, assets	$ (196)	$ (687)
Transfers into Level 3 at end of reporting period, losses not included in realized and unrealized gains and losses related to Level 3 for the period	58
Transfers out Level 3 at end of reporting period, losses not included in realized and unrealized gains and losses related to Level 3 for the period.	27
Gross Transfers in, liabilities	(83)
Liabilities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, liabilities	2	39
Sales, liabilities	(6)	(9)
Settlements, liabilities	1,231	104
Purchases, Sales, Issuances and Settlements, Net, liabilities	1,227	134
Gross Transfers in, liabilities	(83)	(21)
Policyholder contract deposits
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Sales, liabilities	(6)	(9)
Settlements, liabilities	3	6
Purchases, Sales, Issuances and Settlements, Net, liabilities	(3)	(3)
Derivative liabilities, net
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, liabilities	2	39
Settlements, liabilities	1,114	37
Purchases, Sales, Issuances and Settlements, Net, liabilities	1,116	76
Gross Transfers in, liabilities	(83)
Interest rate contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, liabilities	(7)	3
Purchases, Sales, Issuances and Settlements, Net, liabilities	(7)	3
Foreign exchange contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, liabilities	(2)
Purchases, Sales, Issuances and Settlements, Net, liabilities	(2)
Equity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, liabilities	2	39
Settlements, liabilities		(1)
Purchases, Sales, Issuances and Settlements, Net, liabilities	2	38
Gross Transfers in, liabilities	(2)
Commodity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, liabilities		(11)
Purchases, Sales, Issuances and Settlements, Net, liabilities		(11)
Credit contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, liabilities	711	(4)
Purchases, Sales, Issuances and Settlements, Net, liabilities	711	(4)
Other contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, liabilities	412	50
Purchases, Sales, Issuances and Settlements, Net, liabilities	412	50
Gross Transfers in, liabilities	(81)
Other long-term debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, liabilities	114	61
Purchases, Sales, Issuances and Settlements, Net, liabilities	114	61
Gross Transfers in, liabilities		(21)
Assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	2,914	762
Sales, assets	(558)	(64)
Settlements, assets	(2,552)	(1,385)
Purchases, Sales, Issuances and Settlements, Net, assets	(196)	(687)
Bonds available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	2,524	645
Sales, assets	(173)	(32)
Settlements, assets	(849)	(879)
Purchases, Sales, Issuances and Settlements, Net, assets	1,502	(266)
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	108	113
Sales, assets	(8)
Settlements, assets		(1)
Purchases, Sales, Issuances and Settlements, Net, assets	100	112
Bonds available for sale \| Non-U.S. government
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Sales, assets	(2)
Purchases, Sales, Issuances and Settlements, Net, assets	(2)
Bonds available for sale \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	61	8
Sales, assets	(1)	(19)
Settlements, assets	(63)	(22)
Purchases, Sales, Issuances and Settlements, Net, assets	(3)	(33)
Bonds available for sale \| Residential mortgage backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	1,912	317
Sales, assets	(94)	(13)
Settlements, assets	(492)	(266)
Purchases, Sales, Issuances and Settlements, Net, assets	1,326	38
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	126	142
Sales, assets	(64)
Settlements, assets	(51)	(70)
Purchases, Sales, Issuances and Settlements, Net, assets	11	72
Bonds available for sale \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	317	65
Sales, assets	(4)
Settlements, assets	(243)	(520)
Purchases, Sales, Issuances and Settlements, Net, assets	70	(455)
Bond trading securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	113	3
Sales, assets	(367)	(5)
Settlements, assets	(1,539)	(55)
Purchases, Sales, Issuances and Settlements, Net, assets	(1,793)	(57)
Bond trading securities \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, assets	(2)
Purchases, Sales, Issuances and Settlements, Net, assets	(2)
Bond trading securities \| Residential mortgage backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, assets	(19)	6
Purchases, Sales, Issuances and Settlements, Net, assets	(19)	6
Bond trading securities \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	113
Sales, assets	(57)	(5)
Settlements, assets	(191)	(53)
Purchases, Sales, Issuances and Settlements, Net, assets	(135)	(58)
Bond trading securities \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets		3
Sales, assets	(310)
Settlements, assets	(1,327)	(8)
Purchases, Sales, Issuances and Settlements, Net, assets	(1,637)	(5)
Equity securities available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	11
Sales, assets	(14)	(15)
Settlements, assets	(3)	1
Purchases, Sales, Issuances and Settlements, Net, assets	(6)	(14)
Equity securities available for sale \| Common Stock
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Sales, assets	(14)	(15)
Purchases, Sales, Issuances and Settlements, Net, assets	(14)	(15)
Equity securities available for sale \| Preferred Stock
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	11
Settlements, assets	(3)	1
Purchases, Sales, Issuances and Settlements, Net, assets	8	1
Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	266	114
Sales, assets	(4)	(12)
Settlements, assets	(161)	(452)
Purchases, Sales, Issuances and Settlements, Net, assets	$ 101	$ (350)

FAIR VALUE MEASUREMENTS (Details 5) (Fair value on a non-recurring basis, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Mar. 31, 2011 Investment real estate:	Mar. 31, 2012 Other investments	Mar. 31, 2011 Other investments	Mar. 31, 2012 Aircraft	Mar. 31, 2011 Aircraft	Mar. 31, 2012 Other assets	Mar. 31, 2012 Level 3	Dec. 31, 2011 Level 3	Dec. 31, 2011 Level 3 Investment real estate:	Mar. 31, 2012 Level 3 Other investments	Dec. 31, 2011 Level 3 Other investments	Mar. 31, 2012 Level 3 Aircraft	Dec. 31, 2011 Level 3 Aircraft	Mar. 31, 2012 Level 3 Other assets	Dec. 31, 2011 Level 3 Other assets	Mar. 31, 2012 Total Fair Value	Dec. 31, 2011 Total Fair Value	Dec. 31, 2011 Total Fair Value Investment real estate:	Mar. 31, 2012 Total Fair Value Other investments	Dec. 31, 2011 Total Fair Value Other investments	Mar. 31, 2012 Total Fair Value Aircraft	Dec. 31, 2011 Total Fair Value Aircraft	Mar. 31, 2012 Total Fair Value Other assets	Dec. 31, 2011 Total Fair Value Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis									$ 1,733	$ 4,343	$ 457	$ 1,621	$ 2,199	$ 94	$ 1,683	$ 18	$ 4	$ 1,733	$ 4,343	$ 457	$ 1,621	$ 2,199	$ 94	$ 1,683	$ 18	$ 4
Impairment Charges	$ 155	$ 232	$ 12	$ 93	$ 106	$ 54	$ 114	$ 8

- Definition

The charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value.

+ References+ Details

FAIR VALUE MEASUREMENTS (Details 6) (Level 3, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012
Maiden Lane III
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 6,916
Maiden Lane III \| Discounted cash flow
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	10.93%
Corporate debt
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	685
Corporate debt \| Discounted cash flow \| Minimum
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	2.37%
Corporate debt \| Discounted cash flow \| Maximum
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	11.08%
Corporate debt \| Discounted cash flow \| Weighted-average
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	6.73%
Residential mortgage backed securities
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	12,326
Residential mortgage backed securities \| Discounted cash flow \| Minimum
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	4.09%
Constant prepayment rate	0.00%
Loss severity	44.10%
Constant default rate	4.34%
Residential mortgage backed securities \| Discounted cash flow \| Maximum
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	11.80%
Constant prepayment rate	16.89%
Loss severity	79.01%
Constant default rate	13.83%
Residential mortgage backed securities \| Discounted cash flow \| Weighted-average
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	7.95%
Constant prepayment rate	8.02%
Loss severity	61.56%
Constant default rate	9.09%
Certain CDO/ABS \| Discounted cash flow
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	1,961
Certain CDO/ABS \| Discounted cash flow \| Minimum
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	2.29%
Constant prepayment rate	0.00%
Loss severity	0.00%
Constant default rate	0.00%
Certain CDO/ABS \| Discounted cash flow \| Maximum
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	6.57%
Constant prepayment rate	49.80%
Loss severity	19.46%
Constant default rate	2.29%
Certain CDO/ABS \| Discounted cash flow \| Weighted-average
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	4.43%
Constant prepayment rate	18.55%
Loss severity	3.22%
Constant default rate	0.38%
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET)
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	1,579
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET) \| Minimum
Fair Value Inputs Assets Quantitative Information [Line Items]
Recovery rates	3.00%
Diversity score	5
Weighted average life	1 year 4 months 24 days
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET) \| Maximum
Fair Value Inputs Assets Quantitative Information [Line Items]
Recovery rates	65.00%
Diversity score	75
Weighted average life	9 years 7 months 24 days
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET) \| Weighted-average
Fair Value Inputs Assets Quantitative Information [Line Items]
Recovery rates	33.00%
Diversity score	10
Weighted average life	4 years 7 months 6 days
Commercial mortgage backed securities
Fair Value Inputs Assets Quantitative Information [Line Items]
Fair Value	$ 2,665
Commercial mortgage backed securities \| Discounted cash flow \| Minimum
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	0.00%
Commercial mortgage backed securities \| Discounted cash flow \| Maximum
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	24.52%
Commercial mortgage backed securities \| Discounted cash flow \| Weighted-average
Fair Value Inputs Assets Quantitative Information [Line Items]
Yield	11.58%

FAIR VALUE MEASUREMENTS (Details 7) (Level 3, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012
Significant unobservable inputs used for recurring fair value measurements
Fair value	$ 4,622
Policyholder contract deposits - GMWB
Significant unobservable inputs used for recurring fair value measurements
Fair value	509
Policyholder contract deposits - GMWB \| Discounted cash flow \| Minimum
Significant unobservable inputs used for recurring fair value measurements
Equity implied volatility	5.00%
Base lapse rates	1.00%
Dynamic lapse rates	0.20%
Mortality rates	0.50%
Utilization rates	0.50%
Policyholder contract deposits - GMWB \| Discounted cash flow \| Maximum
Significant unobservable inputs used for recurring fair value measurements
Equity implied volatility	40.00%
Base lapse rates	40.00%
Dynamic lapse rates	60.00%
Mortality rates	40.00%
Utilization rates	25.00%
Derivative Liabilities - Credit contracts
Significant unobservable inputs used for recurring fair value measurements
Fair value	$ 1,822
Derivative Liabilities - Credit contracts \| BET \| Minimum
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	3.00%
Diversity score	6
Weighted average life	5 years 3 months 7 days
Derivative Liabilities - Credit contracts \| BET \| Maximum
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	37.00%
Diversity score	44
Weighted average life	9 years 7 months 24 days
Derivative Liabilities - Credit contracts \| BET \| Weighted-average
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	17.00%
Diversity score	13
Weighted average life	6 years 4 months 28 days

FAIR VALUE MEASUREMENTS (Details 8) (Maiden Lane III, USD $)	1 Months Ended
	Apr. 30, 2012	Mar. 31, 2012
VARIABLE INTEREST ENTITY
Fair Value Change		$ 450,000,000
ML III assets sold by FRBNY	7,500,000,000
200 basis point increase
VARIABLE INTEREST ENTITY
Fair Value Change		(717,000,000)
200 basis point decrease
VARIABLE INTEREST ENTITY
Fair Value Change		824,000,000
400 basis point increase
VARIABLE INTEREST ENTITY
Fair Value Change		(1,346,000,000)
400 basis point decrease
VARIABLE INTEREST ENTITY
Fair Value Change		1,777,000,000
10% increase
VARIABLE INTEREST ENTITY
Fair Value Change		711,000,000
10% decrease
VARIABLE INTEREST ENTITY
Fair Value Change		(720,000,000)
20% increase
VARIABLE INTEREST ENTITY
Fair Value Change		1,415,000,000
20% decrease
VARIABLE INTEREST ENTITY
Fair Value Change		$ (1,451,000,000)

FAIR VALUE MEASUREMENTS (Details 9) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 Y	Dec. 31, 2011
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	$ 7,319	$ 6,873
Unfunded Commitments	1,181	1,193
Expected remaining lives of less than 3 years
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
First threshold level of remaining lives (in years)	3
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	44.00%
Expected remaining lives of less than 3 to 7 years
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Second threshold level of remaining lives (in years)	7
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	54.00%
Expected remaining lives of less than 7 to 10 years
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Third threshold level of remaining lives (in years)	10
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	2.00%
Private equity funds:
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	4,277	4,100
Unfunded Commitments	1,179	1,181
Expected remaining lives that funds in some cases extend beyond (in years)	10
Investment redemption notice period (in days/years)	1 year
Leveraged buyout
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	3,244	3,185
Unfunded Commitments	900	945
Non-U.S.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	171	165
Unfunded Commitments	54	57
Venture capital
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	301	316
Unfunded Commitments	37	39
Distressed
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	189	182
Unfunded Commitments	38	42
Other..
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	372	252
Unfunded Commitments	150	98
Hedge funds:
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	3,042	2,773
Unfunded Commitments	2	12
Hedge fund investments redeemable monthly (as a percent)	10.00%
Hedge fund investments redeemable quarterly (as a percent)	35.00%
Hedge fund investments redeemable semi-annually (as a percent)	25.00%
Hedge fund investments redeemable annually (as a percent)	30.00%
Hedge fund investments redemption notices of less than 90 days (as a percent)	62.00%
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	55.00%
Investment redemption notice period (in days/years)	1 day to 180 days
Event-driven
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	872	774
Unfunded Commitments	2	2
Long-short
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	1,097	927
Relative value
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	48	52
Distressed.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	289	272
Unfunded Commitments		10
Other hedge funds
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value	$ 736	$ 748

FAIR VALUE MEASUREMENTS (Details 10) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Fair Value, Option, Quantitative Disclosures
Fair value option credit risk gains (losses) on liabilities	$ (558)	$ (41)
Segment Discontinued Operations
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	600	1,000
Fair Value Option
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	3,469	2,814
Fair Value Option \| Other long-term debt
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	(446)	(44)
Fair Value Option \| Other liabilities
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	(48)	(112)
Fair Value Option \| Mortgage and other loans receivable, net of allowance
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	22	(5)
Fair Value Option \| Bond and equity securities
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	644	902
Fair Value Option \| Trading - ML II Interest
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	246	251
Fair Value Option \| Trading - ML III Interest
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	1,252	744
Fair Value Option \| Retained interest in AIA
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	1,795	1,062
Fair Value Option \| Short-term investments and other invested assets and Other assets
Fair Value, Option, Quantitative Disclosures
Gain (Loss)	$ 4	$ 16

FAIR VALUE MEASUREMENTS (Details 11) (USD $) In Millions, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2012 D	Dec. 31, 2011 D
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Mortgage and other loans receivable, Fair Value	$ 114	$ 107
Long-term debt, Fair Value	10,579	10,766
Fair Value Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Mortgage and other loans receivable, Fair Value	114	107
Mortgage and other loans receivable, Outstanding Principal Amount	139	150
Mortgage and other loans receivable, Difference	(25)	(43)
Long-term debt, Fair Value	10,580	10,766
Long-term debt, Outstanding Principal Amount	8,330	8,624
Long-term debt, Difference	$ 2,250	$ 2,142
Disclosure level, past due mortgage or other loans receivable for which the fair value option was elected, number of days past due threshold	90	90

- Definition

Including current and noncurrent portions, aggregate carrying amount of long-term borrowings as of the balance sheet date. May include notes payable, bonds payable, commercial loans, mortgage loans, convertible debt, subordinated debt and other types of debt, which had initial maturities beyond one year or beyond the normal operating cycle, if longer, and after deducting unamortized discount or premiums, if any.

+ References+ Details

FAIR VALUE MEASUREMENTS (Details 12) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011	Dec. 31, 2010
Assets:
Mortgage and other loans receivable	$ 19,519	$ 19,489
Short-term investments	20,789	22,572
Cash	1,315	1,474	1,801	1,558
Liabilities:
Other liabilities	31,346	27,554
Total Fair Value
Assets:
Mortgage and other loans receivable	20,958	20,494
Other invested assets	4,560	3,390
Short-term investments	14,351	16,657
Cash	1,315	1,474
Liabilities:
Policyholder contract deposits associated with investment-type contracts	123,878	122,125
Other liabilities	476
Long-term debt	67,214	61,295
Level 1
Assets:
Cash	1,315
Liabilities:
Long-term debt	14,991
Level 2
Assets:
Mortgage and other loans receivable	668
Other invested assets	462
Short-term investments	14,351
Liabilities:
Policyholder contract deposits associated with investment-type contracts	281
Long-term debt	49,523
Level 3
Assets:
Mortgage and other loans receivable	20,290
Other invested assets	4,098
Liabilities:
Policyholder contract deposits associated with investment-type contracts	123,597
Other liabilities	476
Long-term debt	2,700
Carrying Value
Assets:
Mortgage and other loans receivable	19,405	19,382
Other invested assets	4,864	4,701
Short-term investments	16,381	16,659
Cash	1,315	1,474
Liabilities:
Policyholder contract deposits associated with investment-type contracts	107,019	106,950
Other liabilities	476
Long-term debt	$ 65,517	$ 64,487

- Definition

+ References+ Details

- Definition

Other investments not otherwise specified in the taxonomy that will be realized in a short period of time, usually less than one year or the normal operating cycle, whichever is longer.

+ References+ Details

INVESTMENTS (Details) (USD $)	3 Months Ended	12 Months Ended
INVESTMENTS (Details) (USD $)	Mar. 31, 2012	Dec. 31, 2011
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available for Sale Securities, fair value	$ 0
Other invested assets carried at fair value, Amortized Cost or Cost	5,220,000,000	5,155,000,000
Other invested assets carried at fair value, Gross Unrealized Gains	1,783,000,000	1,611,000,000
Other invested assets carried at fair value, Gross Unrealized Losses	(157,000,000)	(269,000,000)
Other invested assets carried at fair value, fair value	6,846,000,000	6,497,000,000
Total, Amortized Cost or Cost	257,166,000,000	257,745,000,000
Total, Gross Unrealized Gains	22,124,000,000	21,637,000,000
Total, Gross Unrealized Losses	(3,056,000,000)	(5,280,000,000)
Total, fair value	276,234,000,000	274,102,000,000
Total, Other-Than-Temporary Impairments in AOCI	252,000,000	(856,000,000)
Other details of available-for-sale securities
Trading Securities, Fair Value	24,604,000,000	24,489,000,000
Fixed maturity securities
Other details of available-for-sale securities
Trading Securities, Fair Value	24,481,000,000	24,364,000,000
Bonds available for sale
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	250,164,000,000	250,770,000,000
Available-for-sale Securities, Gross Unrealized Gains	18,998,000,000	18,121,000,000
Available-for-sale Securities, Gross Unrealized Losses	(2,800,000,000)	(4,910,000,000)
Available for Sale Securities, fair value	266,362,000,000	263,981,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	252,000,000	(856,000,000)
Other details of available-for-sale securities
Available for sale securities not rated or rated below investment grade	27,800,000,000	24,200,000,000
Bonds available for sale \| U.S. government and government sponsored entities
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	4,456,000,000	5,661,000,000
Available-for-sale Securities, Gross Unrealized Gains	332,000,000	418,000,000
Available-for-sale Securities, Gross Unrealized Losses	(2,000,000)	(1,000,000)
Available for Sale Securities, fair value	4,786,000,000	6,078,000,000
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	35,096,000,000	35,017,000,000
Available-for-sale Securities, Gross Unrealized Gains	2,657,000,000	2,554,000,000
Available-for-sale Securities, Gross Unrealized Losses	(71,000,000)	(73,000,000)
Available for Sale Securities, fair value	37,682,000,000	37,498,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	(25,000,000)	(28,000,000)
Bonds available for sale \| Non-U.S. government
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	25,106,000,000	24,843,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,066,000,000	994,000,000
Available-for-sale Securities, Gross Unrealized Losses	(50,000,000)	(102,000,000)
Available for Sale Securities, fair value	26,122,000,000	25,735,000,000
Bonds available for sale \| Corporate debt
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	135,350,000,000	134,699,000,000
Available-for-sale Securities, Gross Unrealized Gains	12,040,000,000	11,844,000,000
Available-for-sale Securities, Gross Unrealized Losses	(910,000,000)	(1,725,000,000)
Available for Sale Securities, fair value	146,480,000,000	144,818,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	134,000,000	115,000,000
Bonds available for sale \| Mortgage backed, asset backed and collateralized
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	50,156,000,000	50,550,000,000
Available-for-sale Securities, Gross Unrealized Gains	2,903,000,000	2,311,000,000
Available-for-sale Securities, Gross Unrealized Losses	(1,767,000,000)	(3,009,000,000)
Available for Sale Securities, fair value	51,292,000,000	49,852,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	143,000,000	(943,000,000)
Bonds available for sale \| Residential mortgage backed securities (RMBS)
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	33,956,000,000	34,780,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,865,000,000	1,387,000,000
Available-for-sale Securities, Gross Unrealized Losses	(770,000,000)	(1,563,000,000)
Available for Sale Securities, fair value	35,051,000,000	34,604,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	191,000,000	(716,000,000)
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	8,274,000,000	8,449,000,000
Available-for-sale Securities, Gross Unrealized Gains	470,000,000	470,000,000
Available-for-sale Securities, Gross Unrealized Losses	(681,000,000)	(973,000,000)
Available for Sale Securities, fair value	8,063,000,000	7,946,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	(151,000,000)	(276,000,000)
Bonds available for sale \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	7,926,000,000	7,321,000,000
Available-for-sale Securities, Gross Unrealized Gains	568,000,000	454,000,000
Available-for-sale Securities, Gross Unrealized Losses	(316,000,000)	(473,000,000)
Available for Sale Securities, fair value	8,178,000,000	7,302,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	103,000,000	49,000,000
Equity securities
Other details of available-for-sale securities
Trading Securities, Fair Value	123,000,000	125,000,000
Equity securities available for sale
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	1,782,000,000	1,820,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,343,000,000	1,905,000,000
Available-for-sale Securities, Gross Unrealized Losses	(99,000,000)	(101,000,000)
Available for Sale Securities, fair value	3,026,000,000	3,624,000,000
Equity securities available for sale \| Common Stock
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	1,636,000,000	1,682,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,268,000,000	1,839,000,000
Available-for-sale Securities, Gross Unrealized Losses	(99,000,000)	(100,000,000)
Available for Sale Securities, fair value	2,805,000,000	3,421,000,000
Equity securities available for sale \| Preferred Stock
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	87,000,000	83,000,000
Available-for-sale Securities, Gross Unrealized Gains	67,000,000	60,000,000
Available for Sale Securities, fair value	154,000,000	143,000,000
Equity securities available for sale \| Mutual Funds
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	59,000,000	55,000,000
Available-for-sale Securities, Gross Unrealized Gains	8,000,000	6,000,000
Available-for-sale Securities, Gross Unrealized Losses		(1,000,000)
Available for Sale Securities, fair value	$ 67,000,000	$ 60,000,000

INVESTMENTS (Details 2) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012 security	Dec. 31, 2011
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	$ 23,035	$ 37,024
Gross Unrealized Losses, less than 12 Months	994	2,056
Fair Value, 12 Months or More	11,616	14,554
Gross Unrealized Losses, 12 Months or More	1,905	2,955
Fair Value, total	34,651	51,578
Gross Unrealized Losses, total	2,899	5,011
Number of individual fixed maturity securities in continuous unrealized loss position for longer than twelve months	1,734
Fixed maturity securities
Fair value and gross unrealized losses on AIG's available for sale securities
Number of individual fixed maturity securities	5,061
Bonds available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	22,384	36,408
Gross Unrealized Losses, less than 12 Months	895	1,955
Fair Value, 12 Months or More	11,616	14,554
Gross Unrealized Losses, 12 Months or More	1,905	2,955
Fair Value, total	34,000	50,962
Gross Unrealized Losses, total	2,800	4,910
Bonds available for sale \| U.S. government and government sponsored entities
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	159	142
Gross Unrealized Losses, less than 12 Months	1	1
Fair Value, 12 Months or More	5
Gross Unrealized Losses, 12 Months or More	1
Fair Value, total	164	142
Gross Unrealized Losses, total	2	1
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	996	174
Gross Unrealized Losses, less than 12 Months	24	1
Fair Value, 12 Months or More	276	669
Gross Unrealized Losses, 12 Months or More	47	72
Fair Value, total	1,272	843
Gross Unrealized Losses, total	71	73
Bonds available for sale \| Non-U.S. government
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	2,366	3,992
Gross Unrealized Losses, less than 12 Months	20	67
Fair Value, 12 Months or More	333	424
Gross Unrealized Losses, 12 Months or More	30	35
Fair Value, total	2,699	4,416
Gross Unrealized Losses, total	50	102
Bonds available for sale \| Corporate debt
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	11,962	18,099
Gross Unrealized Losses, less than 12 Months	378	937
Fair Value, 12 Months or More	5,015	5,907
Gross Unrealized Losses, 12 Months or More	532	788
Fair Value, total	16,977	24,006
Gross Unrealized Losses, total	910	1,725
Bonds available for sale \| Residential mortgage backed securities (RMBS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	4,322	10,624
Gross Unrealized Losses, less than 12 Months	242	714
Fair Value, 12 Months or More	2,933	4,148
Gross Unrealized Losses, 12 Months or More	528	849
Fair Value, total	7,255	14,772
Gross Unrealized Losses, total	770	1,563
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	1,527	1,697
Gross Unrealized Losses, less than 12 Months	187	185
Fair Value, 12 Months or More	1,373	1,724
Gross Unrealized Losses, 12 Months or More	494	788
Fair Value, total	2,900	3,421
Gross Unrealized Losses, total	681	973
Bonds available for sale \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	1,052	1,680
Gross Unrealized Losses, less than 12 Months	43	50
Fair Value, 12 Months or More	1,681	1,682
Gross Unrealized Losses, 12 Months or More	273	423
Fair Value, total	2,733	3,362
Gross Unrealized Losses, total	316	473
Equity securities
Fair value and gross unrealized losses on AIG's available for sale securities
Number of equity securities in an unrealized loss position	248
Equity securities available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	651	616
Gross Unrealized Losses, less than 12 Months	99	101
Fair Value, total	651	616
Gross Unrealized Losses, total	99	101
Equity securities available for sale \| Common Stock
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	646	608
Gross Unrealized Losses, less than 12 Months	99	100
Fair Value, total	646	608
Gross Unrealized Losses, total	99	100
Equity securities available for sale \| Preferred Stock
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	2	6
Fair Value, total	2	6
Equity securities available for sale \| Mutual Funds
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	3	2
Gross Unrealized Losses, less than 12 Months		1
Fair Value, total	3	2
Gross Unrealized Losses, total		$ 1

INVESTMENTS (Details 3) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Fixed Maturity Securities in a Loss Position
Fixed Maturity Available-for-sale Securities by Contractual Maturity
Due in one year or less, Amortized Cost	$ 1,299
Due after one year through five years, Amortized Cost	7,061
Due after five years through ten years, Amortized Cost	7,245
Due after ten years, Amortized Cost	6,540
Mortgage-backed, asset-backed and collateralized, Amortized Cost	14,655
Fixed maturity available for sale in a loss postion , Amortized Cost, Total	36,800
Due in one year or less, Fair Value	1,287
Due after one year through five years, Fair Value	6,818
Due after five years through ten years, Fair Value	6,917
Due after ten years, Fair Value	6,090
Mortgage-backed, asset-backed and collateralized, Fair Value	12,888
Fixed Maturity Available for Sale Securities, Fair Value, Total	34,000
Bonds available for sale
Fixed Maturity Available-for-sale Securities by Contractual Maturity
Due in one year or less, Amortized Cost	10,047
Due after one year through five years, Amortized Cost	57,759
Due after five years through ten years, Amortized Cost	69,670
Due after ten years, Amortized Cost	62,532
Mortgage-backed, asset-backed and collateralized, Amortized Cost	50,156
Fixed maturity available for sale in a loss postion , Amortized Cost, Total	250,164	250,770
Due in one year or less, Fair Value	10,207
Due after one year through five years, Fair Value	60,423
Due after five years through ten years, Fair Value	74,753
Due after ten years, Fair Value	69,687
Mortgage-backed, asset-backed and collateralized, Fair Value	51,292
Fixed Maturity Available for Sale Securities, Fair Value, Total	$ 266,362

INVESTMENTS (Details 4) (USD $)	3 Months Ended
INVESTMENTS (Details 4) (USD $)	Mar. 31, 2012	Mar. 31, 2011
Available for Sale Securities Disclosures
Gross Realized Gains	$ 941,000,000	$ 293,000,000
Gross Realized Losses	19,000,000	57,000,000
Aggregate fair value of available for sale securities sold	10,900,000,000	11,500,000,000
Net realized capital gains	900,000,000	200,000,000
Fixed maturity securities
Available for Sale Securities Disclosures
Gross Realized Gains	490,000,000	188,000,000
Gross Realized Losses	16,000,000	55,000,000
Equity securities available for sale
Available for Sale Securities Disclosures
Gross Realized Gains	451,000,000	105,000,000
Gross Realized Losses	$ 3,000,000	$ 2,000,000

INVESTMENTS (Details 5) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
TRADING SECURITIES
Trading Securities, Fair Value	$ 24,604	$ 24,489
Trading Securities, Percent of Total	100.00%	100.00%
Fixed maturity securities
TRADING SECURITIES
Trading Securities, Fair Value	24,481	24,364
Trading Securities, Percent of Total	99.00%	99.00%
Fixed maturity securities \| U.S. government and government sponsored entities
TRADING SECURITIES
Trading Securities, Fair Value	7,456	7,504
Trading Securities, Percent of Total	30.00%	31.00%
Fixed maturity securities \| Non-U.S. government
TRADING SECURITIES
Trading Securities, Fair Value	36	35
Fixed maturity securities \| Corporate debt
TRADING SECURITIES
Trading Securities, Fair Value	1,093	816
Trading Securities, Percent of Total	4.00%	3.00%
Fixed maturity securities \| Obligations of states, municipalities and political subdivisions
TRADING SECURITIES
Trading Securities, Fair Value	236	257
Trading Securities, Percent of Total	1.00%	1.00%
Fixed maturity securities \| Mortgage backed, asset backed and collateralized
TRADING SECURITIES
Trading Securities, Fair Value	8,744	8,767
Trading Securities, Percent of Total	36.00%	36.00%
Fixed maturity securities \| Residential mortgage backed securities (RMBS)
TRADING SECURITIES
Trading Securities, Fair Value	1,653	1,648
Trading Securities, Percent of Total	7.00%	7.00%
Fixed maturity securities \| Commercial mortgage-backed securities (CMBS)
TRADING SECURITIES
Trading Securities, Fair Value	1,713	1,837
Trading Securities, Percent of Total	7.00%	7.00%
Fixed maturity securities \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
TRADING SECURITIES
Trading Securities, Fair Value	5,378	5,282
Trading Securities, Percent of Total	22.00%	22.00%
Fixed maturity securities \| Maiden Lane II
TRADING SECURITIES
Trading Securities, Fair Value		1,321
Trading Securities, Percent of Total		5.00%
Fixed maturity securities \| Maiden Lane III
TRADING SECURITIES
Trading Securities, Fair Value	6,916	5,664
Trading Securities, Percent of Total	28.00%	23.00%
Equity securities
TRADING SECURITIES
Trading Securities, Fair Value	$ 123	$ 125
Trading Securities, Percent of Total	1.00%	1.00%

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Trading Securities which consist of all investments in certain debt and equity securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) or for which an entity has elected the fair value option. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price, but this category of investments may also include items which are not intended to be sold in the near term or for which the fair value option has been elected.

+ References+ Details

INVESTMENTS (Details 6) (Fixed maturity securities, USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Fixed maturity securities
Other Than Temporary Impairment Credit Losses Recognized in Earnings
Balance at the beginning of the period	$ 6,504	$ 6,786
Increases due to:
Credit impairments on new securities subject to impairment losses	137	52
Additional credit impairments on previously impaired securities	307	150
Reduction due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell	(270)	(170)
Accretion on securities previously impaired due to credit	(222)	(100)
Hybrid securities with embedded credit derivatives reclassified to Bond trading securities		(179)
Other	8	1
Balance at the end of the period	$ 6,464	$ 6,540

INVESTMENTS (Details 7) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Dec. 31, 2011
Purchased Credit Impaired (PCI) Securities
Fair value	$ 0
Purchased Credit Impaired (PCI) Securities
Purchased Credit Impaired (PCI) Securities
Contractually required payments (principal and interest)	18,379
Cash flows expected to be collected	14,198
Recorded investment in acquired securities	9,080
Outstanding principal balance	12,823	10,119
Amortized cost	8,170	7,006
Fair value	8,294	6,535
Changes in activity for the accretable yield on PCI securities:
Balance, beginning of period	4,135
Newly purchased PCI securities	1,222
Disposals	(47)
Accretion	(168)
Effect of changes in interest rate indices	(28)
Net reclassification from non-accretable difference, including effects of prepayments	32
Balance, end of period	5,146
Bonds available for sale
Purchased Credit Impaired (PCI) Securities
Fair value	$ 266,362	$ 263,981

INVESTMENTS (Details 8) (USD $)	3 Months Ended	12 Months Ended
INVESTMENTS (Details 8) (USD $)	Mar. 31, 2012	Dec. 31, 2011
Pledged investments
Cash collateral as a percentage of security value used to determine classification as a sale		90.00%
Fair value of securities transferred under repurchase agreements accounted for as sales	$ 1,800,000,000	$ 2,100,000,000
Fair value of securities transferred under repurchase agreements accounted for as purchases	7,400,000,000	6,800,000,000
Collateral posted for repurchase transactions repledged	1,500,000,000	122,000,000
FHLBs
Pledged investments
Fair value of available-for-sale securities	88,000,000
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements	9,000,000,000	9,800,000,000
Amount owned by subsidiaries	86,000,000	77,000,000
Secured financing
Pledged investments
Fair value of available-for-sale securities	4,400,000,000	2,300,000,000
Fair value of trading securities	4,500,000,000	700,000,000
GIAs
Pledged investments
Fair value of trading securities	$ 5,100,000,000

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. The amount of securities that an institution sells and agrees to repurchase (seller-borrower) at a specified date for a specified price, net of any reductions or offsets. Most repurchase agreements involve obligations of the federal government or its agencies, but other financial instruments, such as commercial paper, banker's acceptances, and negotiable certificates of deposit (CDs), are sometimes used in repurchase agreements. A repurchase agreement is similar to the seller-borrower's borrowing funds equal to the sales price of the related securities with the securities as collateral. Maturities of such agreements are flexible and generally vary from one day to 270 days.

+ References+ Details

LENDING ACTIVITIES (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011	Dec. 31, 2010
Composition of Mortgages and other loans receivable
Total mortgage and other loans receivable	$ 20,227	$ 20,229
Allowance for losses	(708)	(740)	(843)	(878)
Mortgage and other loans receivable, net	19,519	19,489
Commercial mortgages
Composition of Mortgages and other loans receivable
Total mortgage and other loans receivable	13,764	13,554
Allowance for losses	(296)	(305)	(422)	(470)
Percentage of loans that are current as to payments of principal and interest	98.00%	98.00%
Commercial mortgages \| California
Composition of Mortgages and other loans receivable
Percentage of mortgage loans in geographic area	24.00%	24.00%
Commercial mortgages \| New York
Composition of Mortgages and other loans receivable
Percentage of mortgage loans in geographic area	14.00%	14.00%
Life insurance policy loans
Composition of Mortgages and other loans receivable
Total mortgage and other loans receivable	3,022	3,049
Commercial loans, other loans and notes receivable
Composition of Mortgages and other loans receivable
Total mortgage and other loans receivable	$ 3,441	$ 3,626

- Definition

The allowance for loan and lease losses represents the reserve to cover probable credit losses related to specifically identified loans and leases, as well as probable credit losses inherent in the remainder of the loan portfolio as of the balance sheet date. For banks, include currently required allocated transfer risk reserves. Include carryover of or adjustments to the allowance for loan losses in connection with business combinations determined to be appropriate.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 114

-Paragraph 20

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Article 9

-Section 03

-Paragraph 7

-Subparagraph d

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 8, 9

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher OTS

-Name Federal Regulation (FR)

-Number Title 12

-Chapter V

-Section 563c.102

-Paragraph 8

-Subparagraph a(ii)

-Subsection I

-LegacyDoc This is a non-GAAP reference that was included in the 2009 taxonomy. It will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 6

-Section L

-Subsection 1

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 942

-SubTopic 210

-Section S99

-Paragraph 1

-Subparagraph (SX 210.9-03.7(d))

-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

-SubTopic 30

-Section 50

-Paragraph 2

-Subparagraph (b)(1)(ii)

-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

+ Details

LENDING ACTIVITIES (Details 2) (USD $) In Millions, unless otherwise specified											3 Months Ended
	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011	Dec. 31, 2010	Mar. 31, 2012 Apartments	Mar. 31, 2012 Offices	Mar. 31, 2012 Retail	Mar. 31, 2012 Industrial	Mar. 31, 2012 Hotel	Mar. 31, 2012 Others	Mar. 31, 2012 Commercial mortgages loan
Credit quality indicators for commercial mortgage loans
Number of loans in good standing											1,030
Number of loans restructured											7
Number of loans 90 days or less delinquent											10
Number of loans greater than 90 days delinquent or in process of foreclosure											11
Number of Loans											1,058
In good standing					$ 1,722	$ 5,058	$ 2,308	$ 1,849	$ 953	$ 1,363	$ 13,253
Restructured					49	205	7			21	282
90 days or less delinquent										9	9
Greater than 90 days delinquent or in process of foreclosure						99		44		77	220
Mortgage and other loans receivable, net	19,519	19,489			1,771	5,362	2,315	1,893	953	1,470	13,764
Valuation allowance	$ 708	$ 740	$ 843	$ 878	$ 20	$ 131	$ 21	$ 71	$ 12	$ 41	$ 296
Percentage of loans that are current as to payments of principal and interest											96.00%
Percentage restructured											2.00%
Percentage greater than 90 days delinquent or in foreclosure											2.00%
Percentage Total											100.00%
Percentage of loans with valuation allowance											2.00%

LENDING ACTIVITIES (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance at the beginning of the year	$ 740	$ 878
Loans charged off	(34)	(34)
Recoveries of loans previously charged off	2	33
Net charge-offs	(32)	(1)
Provision for loan losses	1	(3)
Other	(1)	(31)
Allowance at the end of the period	708	843
Commercial mortgages
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance at the beginning of the year	305	470
Loans charged off	(6)	(29)
Recoveries of loans previously charged off	2	33
Net charge-offs	(4)	4
Provision for loan losses	(5)	(21)
Other		(31)
Allowance at the end of the period	296	422
Allowance related to individually assessed credit losses	60	100
Commercial mortgage loans	442	635
Other Loans
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance at the beginning of the year	435	408
Loans charged off	(28)	(5)
Net charge-offs	(28)	(5)
Provision for loan losses	6	18
Other	(1)
Allowance at the end of the period	$ 412	$ 421

- Definition

Reflects the net amount of other additions and reductions in the reserve for credit losses.

+ References+ Details

- Definition

Reflects the gross amount charged against earnings during the period as credit losses (bad debt expense) based on review of the loan and lease portfolio and application of the methodology for estimating credit losses.

+ References+ Details

- Definition

Reflects a reduction in bad debt expense attributable to collections of loans and lease receivables which had previously been fully or partially charged off as bad debts.

+ References+ Details

- Definition

Reflects the amount of loans and leases that have been removed, or charged off, from both loan receivables and the reserve for credit losses, typically because they are considered to be not salvageable or have been purchased by unconsolidated collection entities.

+ References+ Details

- Definition

+ References

+ Details

VARIABLE INTEREST ENTITIES (Details) (USD $)	Mar. 31, 2012	Dec. 31, 2011
Assets:
Trading securities	$ 24,481,000,000	$ 24,364,000,000
Mortgage and other loans receivable	19,519,000,000	19,489,000,000
Other invested assets	37,209,000,000	40,744,000,000
Liabilities:
Other long-term debt	76,096,000,000	75,253,000,000
Real estate and investment funds
VARIABLE INTEREST ENTITY
Off-balance sheet exposure associated with VIEs	300,000,000	400,000,000
Consolidated VIE
VARIABLE INTEREST ENTITY
Off-balance sheet exposure associated with VIEs	100,000,000	100,000,000
VIE Assets	10,800,000,000	22,800,000,000
VIE Liabilities	2,000,000,000	2,600,000,000
Assets:
Available for sale securities	500,000,000	400,000,000
Trading securities	1,000,000,000	1,300,000,000
Mortgage and other loans receivable	500,000,000	500,000,000
Other invested assets	4,900,000,000	17,200,000,000
Other asset accounts	3,900,000,000	3,400,000,000
Liabilities:
Other long-term debt	1,100,000,000	1,700,000,000
Other liability accounts	900,000,000	900,000,000
Consolidated VIE \| AIA/ALICO SPVs
VARIABLE INTEREST ENTITY
VIE Assets	1,800,000,000	14,200,000,000
VIE Liabilities	100,000,000	100,000,000
Consolidated VIE \| Real estate and investment funds
VARIABLE INTEREST ENTITY
Off-balance sheet exposure associated with VIEs	100,000,000	100,000,000
VIE Assets	1,500,000,000	1,500,000,000
VIE Liabilities	400,000,000	400,000,000
Consolidated VIE \| Commercial paper conduit
VARIABLE INTEREST ENTITY
VIE Assets	200,000,000	500,000,000
VIE Liabilities		200,000,000
Consolidated VIE \| Affordable housing partnerships
VARIABLE INTEREST ENTITY
VIE Assets	2,500,000,000	2,500,000,000
VIE Liabilities	200,000,000	100,000,000
Consolidated VIE \| Other
VARIABLE INTEREST ENTITY
VIE Assets	4,800,000,000	4,100,000,000
VIE Liabilities	1,300,000,000	1,800,000,000
Unconsolidated VIE
VARIABLE INTEREST ENTITY
Total VIE Assets	38,700,000,000	47,500,000,000
Maximum Exposure to Loss, On-Balance Sheet	9,500,000,000	9,700,000,000
Maximum Exposure to Loss, Off-Balance Sheet	200,000,000	300,000,000
Total maximum exposure to loss	9,700,000,000	10,000,000,000
Assets:
Trading securities	7,000,000,000	7,100,000,000
Other invested assets	2,500,000,000	2,600,000,000
Unconsolidated VIE assets in balance sheet	9,500,000,000	9,700,000,000
Liabilities:
Other long-term debt	0
Other liability accounts	0
Unconsolidated VIE liabilities in balance sheet	0
Unconsolidated VIE \| Real estate and investment funds
VARIABLE INTEREST ENTITY
Total VIE Assets	17,200,000,000	18,300,000,000
Maximum Exposure to Loss, On-Balance Sheet	2,000,000,000	2,100,000,000
Maximum Exposure to Loss, Off-Balance Sheet	200,000,000	300,000,000
Total maximum exposure to loss	2,200,000,000	2,400,000,000
Unconsolidated VIE \| Affordable housing partnerships
VARIABLE INTEREST ENTITY
Total VIE Assets	500,000,000	600,000,000
Maximum Exposure to Loss, On-Balance Sheet	500,000,000	600,000,000
Total maximum exposure to loss	500,000,000	600,000,000
Unconsolidated VIE \| Maiden Lane II and III interests
VARIABLE INTEREST ENTITY
Total VIE Assets	20,000,000,000	27,100,000,000
Maximum Exposure to Loss, On-Balance Sheet	6,900,000,000	7,000,000,000
Total maximum exposure to loss	6,900,000,000	7,000,000,000
Unconsolidated VIE \| Other
VARIABLE INTEREST ENTITY
Total VIE Assets	1,000,000,000	1,500,000,000
Maximum Exposure to Loss, On-Balance Sheet	100,000,000
Total maximum exposure to loss	$ 100,000,000

DERIVATIVES AND HEDGE ACCOUNTING (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	$ 102,780	$ 106,089
Gross Derivative Assets, Fair Value	8,765	9,660
Gross Derivative Liabilities, Notional Amount	127,217	125,062
Gross Derivative Liabilities, Fair Value	11,070	12,097
Bifurcated embedded derivatives
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Liabilities, Notional Amount	19,300	18,300
Gross Derivative Liabilities, Fair Value	800	900
Derivatives designated as hedging instruments \| Interest rate contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Liabilities, Notional Amount	438	481
Gross Derivative Liabilities, Fair Value	32	38
Derivatives designated as hedging instruments \| Foreign exchange contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Liabilities, Notional Amount	30	180
Gross Derivative Liabilities, Fair Value		1
Derivatives not designated as hedging instruments
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	102,780	106,089
Gross Derivative Assets, Fair Value	8,765	9,660
Gross Derivative Liabilities, Notional Amount	126,749	124,401
Gross Derivative Liabilities, Fair Value	11,038	12,058
Derivatives not designated as hedging instruments \| Interest rate contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	71,305	72,660
Gross Derivative Assets, Fair Value	7,527	8,286
Gross Derivative Liabilities, Notional Amount	76,753	73,248
Gross Derivative Liabilities, Fair Value	6,512	6,870
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	1,935	3,278
Gross Derivative Assets, Fair Value	38	145
Gross Derivative Liabilities, Notional Amount	3,177	3,399
Gross Derivative Liabilities, Fair Value	165	178
Derivatives not designated as hedging instruments \| Equity contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	5,266	4,748
Gross Derivative Assets, Fair Value	286	263
Gross Derivative Liabilities, Notional Amount	20,184	18,911
Gross Derivative Liabilities, Fair Value	1,023	1,126
Derivatives not designated as hedging instruments \| Commodity contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	685	691
Gross Derivative Assets, Fair Value	155	136
Gross Derivative Liabilities, Notional Amount	655	861
Gross Derivative Liabilities, Fair Value	156	146
Derivatives not designated as hedging instruments \| Credit contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	436	407
Gross Derivative Assets, Fair Value	65	89
Gross Derivative Liabilities, Notional Amount	23,778	25,857
Gross Derivative Liabilities, Fair Value	2,771	3,366
Derivatives not designated as hedging instruments \| Other contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	23,153	24,305
Gross Derivative Assets, Fair Value	694	741
Gross Derivative Liabilities, Notional Amount	2,202	2,125
Gross Derivative Liabilities, Fair Value	$ 411	$ 372

- Definition

Fair value of derivative asset, presented on a gross basis even when the derivative instrument is subject to master netting arrangements and qualifies for net presentation in the statement of financial position.

+ References+ Details

- Definition

Fair value of derivative liability, presented on a gross basis even when the derivative instrument is subject to master netting arrangements and qualifies for net presentation in the statement of financial position.

+ References+ Details

DERIVATIVES AND HEDGE ACCOUNTING (Details 2) (USD $)	Mar. 31, 2012	Dec. 31, 2011
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	$ 102,780,000,000	$ 106,089,000,000
Derivative Assets, Fair Value	8,765,000,000	9,660,000,000
Derivative Liabilities, Notional Amount	127,217,000,000	125,062,000,000
Derivative Liabilities, Fair Value	11,070,000,000	12,097,000,000
Derivative assets, Counterparty netting	(3,264,000,000)	(3,660,000,000)
Derivative assets, Cash collateral	(1,280,000,000)	(1,501,000,000)
Total derivative assets, net	4,221,000,000	4,499,000,000
Derivative liabilities, Counterparty netting	(3,264,000,000)	(3,660,000,000)
Derivative liabilities, Cash collateral	(2,801,000,000)	(2,786,000,000)
Total derivative liabilities, net	5,005,000,000	5,651,000,000
Less: Bifurcated embedded derivative liabilities, fair value	783,000,000	918,000,000
Total derivative assets on consolidated balance sheet	4,221,000,000	4,499,000,000
Total derivative liabilities on consolidated balance sheet	4,222,000,000	4,733,000,000
Collateral
Collateral posted to third parties for derivative transactions	4,400,000,000	4,700,000,000
Collateral obtained from third parties for derivative transactions	1,400,000,000	1,600,000,000
AIGFP
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	77,854,000,000	86,128,000,000
Derivative Assets, Fair Value	5,666,000,000	7,063,000,000
Derivative Liabilities, Notional Amount	90,350,000,000	90,241,000,000
Derivative Liabilities, Fair Value	7,095,000,000	8,854,000,000
Non-AIGFP derivatives
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	24,926,000,000	19,961,000,000
Derivative Assets, Fair Value	3,099,000,000	2,597,000,000
Derivative Liabilities, Notional Amount	36,867,000,000	34,821,000,000
Derivative Liabilities, Fair Value	$ 3,975,000,000	$ 3,243,000,000

DERIVATIVES AND HEDGE ACCOUNTING (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Derivative instruments gain (loss):
Foreign currency translation loss adjustment related to net investment hedge relationships	$ 91	$ 24
Derivatives designated as hedging instruments \| Interest rate contracts \| Fair value hedging
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(2)	(7)
Gain recognized in earnings on hedged items	32	48
Loss recognized in earnings for ineffective portion and amount excluded from effectiveness testing		(1)
Amortization of debt basis adjustment following the discontinuation of hedge accounting	30	42
Derivatives designated as hedging instruments \| Interest rate contracts \| Cash flow hedging
Derivative instruments gain (loss):
Gain (loss) recognized in OCI on derivatives	(1)
Loss reclassified from Accumulated OCI into earnings	(5)	(18)
Deferred net loss in accumulated other comprehensive income expected to be recognized in earnings during the next 12 months	16
Derivatives not designated as hedging instruments
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(526)	(24)
Derivatives not designated as hedging instruments \| Premiums
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	36	25
Derivatives not designated as hedging instruments \| Net investment income
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	1	2
Derivatives not designated as hedging instruments \| Net realized capital gains (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(290)	32
Derivatives not designated as hedging instruments \| Other losses
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(273)	(83)
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(586)	(274)
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	69	20
Derivatives not designated as hedging instruments \| Equity contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(188)	(104)
Embedded derivative gains	175	107
Derivatives not designated as hedging instruments \| Commodity contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(1)	5
Derivatives not designated as hedging instruments \| Credit contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	151	347
Derivatives not designated as hedging instruments \| Other contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	$ 29	$ (18)

DERIVATIVES AND HEDGE ACCOUNTING (Details 4) (USD $)	3 Months Ended
DERIVATIVES AND HEDGE ACCOUNTING (Details 4) (USD $)	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Credit derivatives:
Fair value of hybrid securities	$ 135,000,000
Current par value of hybrid securities	430,000,000
Matched investment program written CDS
Credit derivatives:
Notional amount of credit risk derivatives	896,000,000
Fair value of derivative liability	6,000,000
Matched investment program written CDS \| Maximum
Credit derivatives:
Derivative weighted average maturity (in years/months)	1 year
Credit Risk-Related Contingent Features
Credit derivatives:
Collateral posted	4,600,000,000
Aggregate fair value of net liability position	4,400,000,000
Additional collateral requirements, one-notch downgrade	137,000,000
Further additional collateral requirements, one-notch downgrade	274,000,000
AIGFP
Credit derivatives:
Credit derivative transactions hedging credit risk	134,000,000
AIGFP \| Super Senior CDS AIGFP
Credit derivatives:
Notional amount of credit risk derivatives	22,781,000,000		24,619,000,000
Fair Value of Derivative (Asset) Liability	2,642,000,000		3,223,000,000
Unrealized market valuation gain (loss) on credit derivatives	140,000,000	323,000,000
Unrealized losses on derivatives from change in credit valuation	26,000,000	6,000,000
AIGFP \| Super Senior CDS AIGFP \| Regulatory Capital
Credit derivatives:
Notional amount of credit risk derivatives	4,910,000,000		6,370,000,000
Fair Value of Derivative (Asset) Liability	3,000,000		9,000,000
Unrealized market valuation gain (loss) on credit derivatives	6,000,000	15,000,000
AIGFP \| Super Senior CDS AIGFP \| Regulatory Capital \| Corporate loans
Credit derivatives:
Notional amount of credit risk derivatives	1,566,000,000		1,830,000,000
Derivative weighted average maturity (in years/months)	6 months
AIGFP \| Super Senior CDS AIGFP \| Regulatory Capital \| Prime residential mortgages
Credit derivatives:
Notional amount of credit risk derivatives	2,526,000,000		3,653,000,000
Unrealized market valuation gain (loss) on credit derivatives		6,000,000
Derivative weighted average maturity (in years/months)	8 months 12 days
AIGFP \| Super Senior CDS AIGFP \| Regulatory Capital \| Other.
Credit derivatives:
Notional amount of credit risk derivatives	818,000,000		887,000,000
Fair Value of Derivative (Asset) Liability	3,000,000		9,000,000
Unrealized market valuation gain (loss) on credit derivatives	6,000,000	9,000,000
Derivative weighted average maturity (in years/months)	3 years 6 months
AIGFP \| Super Senior CDS AIGFP \| Arbitrage
Credit derivatives:
Notional amount of credit risk derivatives	16,842,000,000		17,260,000,000
Fair Value of Derivative (Asset) Liability	2,620,000,000		3,204,000,000
Unrealized market valuation gain (loss) on credit derivatives	143,000,000	310,000,000
AIGFP \| Super Senior CDS AIGFP \| Arbitrage \| Multi-sector CDOs
Credit derivatives:
Notional amount of credit risk derivatives	4,880,000,000		5,476,000,000
Fair Value of Derivative (Asset) Liability	2,510,000,000		3,077,000,000
Unrealized market valuation gain (loss) on credit derivatives	126,000,000	273,000,000
Notional amount of CDS terminated during period	470,000,000
Unrealized market valuation losses on Capital Markets super senior credit default swap portfolio	416,000,000
Additional amount paid for CDS terminated during period	25,000,000
Unrealized market valuation losses on AIGFP super senior credit default swap portfolio	25,000,000
Notional amount of CDS with cash settlement provisions	4,100,000,000		4,600,000,000
Derivative weighted average maturity (in years/months)	6 years 4 months 24 days
AIGFP \| Super Senior CDS AIGFP \| Arbitrage \| Corporate debt
Credit derivatives:
Notional amount of credit risk derivatives	11,962,000,000		11,784,000,000
Fair Value of Derivative (Asset) Liability	110,000,000		127,000,000
Unrealized market valuation gain (loss) on credit derivatives	17,000,000	37,000,000
Notional amount of CDS written on super senior tranches of CLOs	1,300,000,000		1,200,000,000
Derivative weighted average maturity (in years/months)	3 years 10 months 24 days
AIGFP \| Super Senior CDS AIGFP \| Mezzanine Tranches
Credit derivatives:
Notional amount of credit risk derivatives	1,029,000,000		989,000,000
Fair Value of Derivative (Asset) Liability	19,000,000		10,000,000
Unrealized market valuation gain (loss) on credit derivatives	(9,000,000)	(2,000,000)
AIGFP \| Written single name CDS AIGFP
Credit derivatives:
Notional amount of credit risk derivatives	382,000,000
Notional amount of CDS purchased offsets	69,000,000
Derivative weighted average maturity (in years/months)	18 years 9 months 18 days
Notional amount of single name CDS maximum exposure	313,000,000
Fair value of derivative liability	85,000,000
Collateral posted	$ 78,000,000

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details)						3 Months Ended		1 Months Ended			3 Months Ended					3 Months Ended				1 Months Ended	3 Months Ended		1 Months Ended		3 Months Ended	12 Months Ended	3 Months Ended	1 Months Ended			3 Months Ended		1 Months Ended	3 Months Ended	12 Months Ended		3 Months Ended						12 Months Ended	1 Months Ended			3 Months Ended		3 Months Ended	1 Months Ended	3 Months Ended
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details)	Mar. 31, 2012 Maximum Chartis U.S. USD ($)	Mar. 31, 2012 Consolidated 2008 Securities Litigation action	Mar. 20, 2009 Consolidated 2008 Securities Litigation complaint	Mar. 31, 2011 ERISA Litigation II plan	Mar. 19, 2009 ERISA Litigation II complaint	Mar. 31, 2012 Canadian Securities Class Action claim USD ($)	Mar. 31, 2012 Brookfield litigation related to AIGFP USD ($)	Jun. 30, 2010 Securities lending dispute with Transatlantic Holdings Inc. USD ($)	Jun. 30, 2010 Securities lending dispute with Transatlantic Holdings Inc. EUR (€)	May 31, 2010 Securities lending dispute with Transatlantic Holdings Inc. USD ($)	Mar. 31, 2012 Securities lending dispute with Transatlantic Holdings Inc. USD ($) D	Jan. 26, 2012 Securities lending dispute with Transatlantic Holdings Inc. USD ($)	Jun. 29, 2010 Securities lending dispute with Transatlantic Holdings Inc. subsidiary	May 24, 2010 Securities lending dispute with Transatlantic Holdings Inc. subsidiary	Mar. 31, 2012 Fitzpatrick matter USD ($)	Mar. 31, 2012 Behm matter USD ($)	Oct. 02, 2010 Behm matter action	Mar. 31, 2012 False Claims Act complaint multiple	Feb. 25, 2010 False Claims Act complaint individual	Feb. 28, 2006 2006 Regulatory Settlements USD ($)	Mar. 31, 2012 2006 Regulatory Settlements USD ($) individual	Dec. 17, 2010 2006 Regulatory Settlements USD ($)	Jan. 31, 2012 Consolidated 2004 Securities Litigation USD ($)	Jul. 31, 2010 Consolidated 2004 Securities Litigation USD ($)	Mar. 31, 2012 Consolidated 2004 Securities Litigation Objector shareholder	Dec. 31, 2011 Consolidated 2004 Securities Litigation fund	Mar. 31, 2012 Consolidated 2004 Securities Litigation Minimum	Apr. 30, 2011 Workers' compensation Premium Reporting USD ($)	Jan. 31, 2011 Workers' compensation Premium Reporting plaintiff	May 31, 2007 Workers' compensation Premium Reporting USD ($)	Mar. 31, 2012 Workers' compensation Premium Reporting USD ($) Objector	Mar. 31, 2012 Workers' compensation Premium Reporting Maximum USD ($)	May 31, 2011 The Multi-District Litigation USD ($)	Mar. 31, 2012 The Multi-District Litigation action conspiracy complaint D state defendant	Dec. 31, 2011 The Multi-District Litigation case class	May 20, 2011 The Multi-District Litigation USD ($)	Mar. 31, 2012 The Multi-District Litigation Florida case	Mar. 31, 2012 The Multi-District Litigation New Jersey case	Mar. 31, 2012 The Multi-District Litigation Texas USD ($) case	Mar. 31, 2012 The Multi-District Litigation Kansas USD ($) case claim	Mar. 31, 2012 Palm Tree Computer Systems, Inc. v. Ace USA USD ($) action plaintiff	Mar. 31, 2012 The Heritage Corp. of South Florida v. National Union Fire Ins. Co. USD ($)	Dec. 31, 2008 Other Regulatory Settlements USD ($)	Apr. 30, 2010 Regulatory Settlement Ohio Attorney General USD ($)	Dec. 31, 2010 NAIC Examination of Workers Compensation Premium Reporting USD ($)	Dec. 17, 2010 NAIC Examination of Workers Compensation Premium Reporting state	Mar. 31, 2012 Caremark USD ($) complaint	Dec. 31, 2011 Use of SSDMF USD ($)	Mar. 31, 2012 Multi-state examination of regulatory issues in insurance products USD ($) state	Feb. 29, 2012 Starr International Litigation D	Mar. 31, 2012 Starr International Litigation
LITIGATION AND INVESTIGATIONS
Increase in the estimated reserves for incurred but not reported death claims																																																$ 202,000,000
Damages sought per settlement objector, maximum																																1,000
Number of states participating in the accident and health products examination																																																	38
Number of objectors to class action suit settlement																									2						2
Number of purported class action complaints consolidated			8		8																																										2
Shareholders maximum ownership percentage who have requested to opt out of the class																									1.50%
Number of shareholders who have submitted timely and valid requests to opt out of the class																									25
Number of investment funds controlled by the same investment group who have submitted timely and valid requests to opt out of the class																										7
Shares held by investment group who have submitted timely and valid requests to opt out of the class																											1,000
Civil penalty payable	51,000,000																																																250,000
Number of actions brought against AIG																	2
Number of securities actions brought against AIG		2
Motions to dismiss granted, plans at issue				1
Motions to dismiss denied, plans at issue				2
Damages claimed						500,000,000				350,000,000	500,000,000					67,000,000																															3,200,000,000
Damages claimed								23,500,000	17,600,000
Period to determine amount of settlement payment (in days)											3
Punitive damages claimed						50,000,000
Percentage of ownership in AIG received by Department of the Treasury																																																			80.00%
Extended response time for Complaint Amendment (in days)																																																		20
Number of objectors appealing the final approval of the settlement																					2
Maximum contractual loss							1,500,000,000
Transatlantic, number of subsidiaries named as Claimants														2
AIG, number of subsidiaries named as Respondents													1	2
Damages claimed, amount currently due															196,000,000
Damages claimed, potential future amounts															78,000,000
Range of loss, minimum												45,000,000			0	0
Range of loss, maximum												125,000,000			274,000,000	67,000,000
Counterclaim sought by AIG																3,600,000
Accrued loss contingency																																				6,750,000
Number of individuals (Relators) seeking to assert claims																			2
Damages sought, multiple of damages sustained																		3
Payments made or placed in escrow accounts initial amount																				1,640,000,000
Portion of payments which represented fines and penalties																				225,000,000																									100,000,000
Deposits into fund under the supervision of the SEC, subsequently disbursed																				800,000,000
Workers Compensation Fund escrow, included in Other Assets																					597,000,000	338,000,000
Settlement amount total																								725,000,000									37,000,000										26,000,000	9,000,000
Amount paid under the terms of the separate settlement agreement with Florida																							4,000,000
Minimum number of conspiracies alleged																																		1
Settlement amount paid under previous settlement agreements																																											4,400,000
Settlement agreement, number of states																																														50
Settlement agreement, payment of outstanding premium taxes																																													46,500,000
Settlement agreement, maximum contingent fines																																													150,000,000
Settlement agreement, amount which can be paid out of the remaining balance in Workers Compensation Fund																															191,500,000														146,500,000
Settlement agreement, escrow																															450,000,000
Number of parallel actions																																		2
Number of separate derivative actions filed																																		24
Number of defendants who have settled																																		3
Number of states asserted antitrust law violations																																		48
Employee Benefits Complaint, number of purported classes																																			2
Number of consolidated actions																																									1
Number of named plaintiffs																																									2
Maximum period to submit letter since date of order by court (in days)																																		30
Number of cases that have proceeded																																			4		1	1	1	1
Number of claims																																								3
Damages sought, maximum																																							125,000,000
Damages sought per claim, maximum																																									74,999
Damages sought, in excess																												3,000,000,000		1,000,000,000												75,000
Damages sought per claim, in excess																																								$ 75,000
Number of intervening plaintiffs																													7

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 2) (USD $) In Billions, unless otherwise specified		3 Months Ended		3 Months Ended		12 Months Ended
	Mar. 31, 2012	Mar. 31, 2012 Flight Equipment engine aircraft	Mar. 31, 2012 International Lease Finance Corporation (ILFC) Flight Equipment	Mar. 31, 2012 International Lease Finance Corporation (ILFC) New Aircraft aircraft	Mar. 31, 2012 International Lease Finance Corporation (ILFC) Additional Aircraft aircraft	Dec. 31, 2011 International Lease Finance Corporation (ILFC) A320 New Engine Option (neo) aircraft
COMMITMENTS
Purchase commitment, number of aircraft purchased				247	18
Number of Used Aircraft		3
Number of New Spare Engines Deliverable		9
Aggregate estimated total remaining payments			$ 18.7
Number of additional aircraft the entity has the right to purchase						50
Other Commitments
Other Commitments	$ 2.8

COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 3)	3 Months Ended		1 Months Ended	3 Months Ended			3 Months Ended
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details 3)	Mar. 31, 2012 MetLife Inc. (MetLife) USD ($)	Mar. 31, 2012 Standby letters of credit USD ($)	Nov. 30, 2010 Indemnification related to breaches of general representations and warranties MetLife Inc. (MetLife) M	Mar. 31, 2012 Indemnification related to breaches of general representations and warranties MetLife Inc. (MetLife) USD ($)	Mar. 31, 2012 Indemnification related to breaches of general representations and warranties AIG Star and AIG Edison USD ($)	Mar. 31, 2012 Indemnification related to breaches of general representations and warranties AIG Star and AIG Edison JPY (¥)	Mar. 31, 2012 Other indemnification USD ($)	Mar. 31, 2012 Tax indemnification MetLife Inc. (MetLife) USD ($)
Guarantees
Amount outstanding under standby letters of credit at end of period		$ 437,000,000
Aggregate deductible amount under guarantee				125,000,000			0	50,000,000
Maximum amount exposed under guarantee				2,250,000,000	1,200,000,000	102,000,000,000		200,000,000
Period of guarantee (in months)			21
Payments made or placed in escrow accounts at end of period	1,600,000,000
Amount required to be held in escrow	0
Minimum amount exposed under guarantee					$ 49,500,000	¥ 4,100,000,000

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Details)	1 Months Ended	3 Months Ended
TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Details)	Mar. 31, 2012	Mar. 31, 2012	Mar. 31, 2011
The following table presents a roll forward of outstanding shares:
Shares, beginning of year		9,746,617
Shares, beginning of year		1,906,568,099
Shares, beginning of year		1,896,821,482	140,463,159
Issuances (in shares)		74,107	1,218,822
Shares exchanged			1,655,037,962
Shares repurchased		(103,448,276)
Shares, end of period	113,167,239	113,167,239
Shares, end of period	1,906,614,552	1,906,614,552
Shares, end of period	1,793,447,313	1,793,447,313	1,796,719,943
Common Stock Issued
The following table presents a roll forward of outstanding shares:
Shares, beginning of year		1,906,568,099	147,124,067
Issuances (in shares)		46,453	1,218,766
Shares exchanged			1,655,037,962
Shares repurchased	206,896,552
Shares, end of period	1,906,614,552	1,906,614,552	1,803,380,795
Treasury Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year		(9,746,617)	(6,660,908)
Issuances (in shares)		27,654	56
Shares repurchased		(103,448,276)
Shares, end of period	(113,167,239)	(113,167,239)	(6,660,852)
Series E \| Preferred Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year		0	400,000
Issuances (in shares)		0
Shares exchanged			(400,000)
Shares repurchased		0
Shares, end of period	0	0
Series F \| Preferred Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year		0	300,000
Issuances (in shares)		0
Shares exchanged			(300,000)
Shares repurchased		0
Shares, end of period	0	0
Series C \| Preferred Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year		0	100,000
Issuances (in shares)		0
Shares exchanged			(100,000)
Shares repurchased		0
Shares, end of period	0	0
Series G \| Preferred Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year		0
Issuances (in shares)		0	20,000
Shares repurchased		0
Shares, end of period	0	0	20,000

- Definition

Number of new stock issued during the period.

+ References+ Details

- Definition

Number of shares that have been repurchased during the period and have not been retired and are not held in treasury. Some state laws may govern the circumstances under which an entity may acquire its own stock and prescribe the accounting treatment therefore. This element is used when state law does not recognize treasury stock.

+ References+ Details

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Details 2) (USD $)	3 Months Ended	1 Months Ended		3 Months Ended
	Mar. 31, 2012	Mar. 31, 2012 Common Stock	Mar. 13, 2012 Common Stock	Mar. 31, 2012 Common Stock Maximum	Mar. 31, 2012 Treasury Stock	Mar. 31, 2012 Series E Preferred Stock	Mar. 31, 2012 Series F Preferred Stock	Mar. 31, 2012 Series C Preferred Stock
Share Issuances and Repurchases
Aggregate purchase amount				$ 3,000,000,000
Shares repurchased	(103,448,276)	206,896,552			(103,448,276)	0	0	0
Public offering price (in dollars per share)			$ 29.00
Shares repurchased	$ 3,000,000,000				$ 3,000,000,000

- Definition

+ References+ Details

- Definition

Equity impact of the cost of common and preferred stock that were repurchased during the period. Recorded using the cost method.

+ References+ Details

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
A roll forward of Accumulated other comprehensive income
Balance, beginning of period, net of tax	$ 5,153
Cumulative effect of change in accounting principle		(6,463)
Other comprehensive income (loss)	1,725	(780)
Acquisition of noncontrolling interest		(538)
Balance, end of period, net of tax	6,873
Other comprehensive income reclassification adjustments
Total other comprehensive income, net of income tax expense (benefit)	1,725	(780)
Accumulated Other Comprehensive Income
A roll forward of Accumulated other comprehensive income
Balance, beginning of period, net of tax	5,153	7,624
Cumulative effect of change in accounting principle		(81)
Change in unrealized appreciation of investments	2,711	577
Change in deferred acquisition costs adjustment and other	(379)	(158)
Change in future policy benefits	34
Changes in foreign currency translation adjustments	87	649
Change in net derivative gains(losses) arising from cash flow hedging activities	4	(18)
Net actuarial gain	41	3
Prior service credit	(12)	(1)
Change attributable to divestitures and deconsolidations		(2,334)
Deferred tax asset (liability)	(761)	466
Other comprehensive income (loss)	1,725	(780)
Acquisition of noncontrolling interest		143
Noncontrolling interests	5	36
Balance, end of period, net of tax	6,873	6,870
Other comprehensive income reclassification adjustments
Unrealized change arising during period	3,410	849
Less: Reclassification adjustments included in net income	924	2,095
Total other comprehensive income, before income tax expense (benefit)	2,486	(1,246)
Less: Income tax expense (benefit)	(761)	466
Total other comprehensive income, net of income tax expense (benefit)	1,725	(780)
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Taken
A roll forward of Accumulated other comprehensive income
Balance, beginning of period, net of tax	(736)	(659)
Change in unrealized appreciation of investments	1,109	646
Change in deferred acquisition costs adjustment and other	(65)	(87)
Change in future policy benefits	(41)
Change attributable to divestitures and deconsolidations		53
Deferred tax asset (liability)	(390)	(216)
Other comprehensive income (loss)	613	396
Noncontrolling interests		3
Balance, end of period, net of tax	(123)	(266)
Other comprehensive income reclassification adjustments
Unrealized change arising during period	1,001	542
Less: Reclassification adjustments included in net income	(2)	(70)
Total other comprehensive income, before income tax expense (benefit)	1,003	612
Less: Income tax expense (benefit)	(390)	(216)
Total other comprehensive income, net of income tax expense (benefit)	613	396
Unrealized Appreciation (Depreciation) of All Other Investments
A roll forward of Accumulated other comprehensive income
Balance, beginning of period, net of tax	7,891	8,888
Cumulative effect of change in accounting principle		283
Change in unrealized appreciation of investments	1,602	(69)
Change in deferred acquisition costs adjustment and other	(314)	(71)
Change in future policy benefits	75
Change attributable to divestitures and deconsolidations		(1,129)
Deferred tax asset (liability)	(382)	462
Other comprehensive income (loss)	981	(807)
Acquisition of noncontrolling interest		78
Noncontrolling interests	4	(3)
Balance, end of period, net of tax	8,868	8,445
Other comprehensive income reclassification adjustments
Unrealized change arising during period	2,323	(342)
Less: Reclassification adjustments included in net income	960	927
Total other comprehensive income, before income tax expense (benefit)	1,363	(1,269)
Less: Income tax expense (benefit)	(382)	462
Total other comprehensive income, net of income tax expense (benefit)	981	(807)
Foreign Currency Translation Adjustments
A roll forward of Accumulated other comprehensive income
Balance, beginning of period, net of tax	(1,028)	298
Cumulative effect of change in accounting principle		(364)
Changes in foreign currency translation adjustments	87	649
Change attributable to divestitures and deconsolidations		(1,506)
Deferred tax asset (liability)	4	340
Other comprehensive income (loss)	91	(517)
Acquisition of noncontrolling interest		84
Noncontrolling interests	1	36
Balance, end of period, net of tax	(938)	(535)
Other comprehensive income reclassification adjustments
Unrealized change arising during period	87	649
Less: Reclassification adjustments included in net income		1,506
Total other comprehensive income, before income tax expense (benefit)	87	(857)
Less: Income tax expense (benefit)	4	340
Total other comprehensive income, net of income tax expense (benefit)	91	(517)
Net Derivative Gains (Losses) Arising From Cash Flow Hedging Activities
A roll forward of Accumulated other comprehensive income
Balance, beginning of period, net of tax	(17)	(34)
Change in net derivative gains(losses) arising from cash flow hedging activities	4	(18)
Deferred tax asset (liability)	18	(5)
Other comprehensive income (loss)	22	13
Balance, end of period, net of tax	5	(21)
Other comprehensive income reclassification adjustments
Unrealized change arising during period	(1)
Less: Reclassification adjustments included in net income	(5)	(18)
Total other comprehensive income, before income tax expense (benefit)	4	18
Less: Income tax expense (benefit)	18	(5)
Total other comprehensive income, net of income tax expense (benefit)	22	13
Change in Retirement Plan Liabilities Adjustment
A roll forward of Accumulated other comprehensive income
Balance, beginning of period, net of tax	(957)	(869)
Net actuarial gain	41	3
Prior service credit	(12)	(1)
Change attributable to divestitures and deconsolidations		248
Deferred tax asset (liability)	(11)	(115)
Other comprehensive income (loss)	18	135
Acquisition of noncontrolling interest		19
Balance, end of period, net of tax	(939)	(753)
Other comprehensive income reclassification adjustments
Less: Reclassification adjustments included in net income	(29)	(250)
Total other comprehensive income, before income tax expense (benefit)	29	250
Less: Income tax expense (benefit)	(11)	(115)
Total other comprehensive income, net of income tax expense (benefit)	$ 18	$ 135

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Details 4) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
A rollforward of non-controlling interests
Balance, beginning of year	$ 855
Cumulative effect of change in accounting principle		(6,463)
Exchange of consideration for preferred stock in connection with Recapitalization		(20,677)
Consolidation (deconsolidation)		(109)
Acquisition of noncontrolling interest		538
Comprehensive income:
Net income	241	204
Accumulated other comprehensive income, net of tax:
Total accumulated other comprehensive income (loss), net of tax	6,873		5,153
Total comprehensive income attributable to noncontrolling interests	246	240
Balance, end of period	893
Redeemable Noncontrolling interests
A rollforward of non-controlling interests
Balance, beginning of year	8,523	434
Exchange of consideration for preferred stock in connection with Recapitalization		20,292
Repayment to Department of the Treasury	(8,635)	(9,146)
Net contributions	18	(26)
Consolidation (deconsolidation)	(5)	(125)
Comprehensive income:
Net income	218	187
Accumulated other comprehensive income, net of tax:
Unrealized gains on investments	2	(1)
Total accumulated other comprehensive income (loss), net of tax	2	(1)
Total comprehensive income attributable to noncontrolling interests	220	186
Other		(13)
Balance, end of period	121	11,602
Redeemable Noncontrolling interests \| Department of the Treasury.
A rollforward of non-controlling interests
Balance, beginning of year	8,427
Exchange of consideration for preferred stock in connection with Recapitalization		20,292
Repayment to Department of the Treasury	(8,635)	(9,146)
Comprehensive income:
Net income	208	178
Accumulated other comprehensive income, net of tax:
Total comprehensive income attributable to noncontrolling interests	208	178
Balance, end of period		11,324
Redeemable Noncontrolling interests \| Other Minority Interests Holder
A rollforward of non-controlling interests
Balance, beginning of year	96	434
Net contributions	18	(26)
Consolidation (deconsolidation)	(5)	(125)
Comprehensive income:
Net income	10	9
Accumulated other comprehensive income, net of tax:
Unrealized gains on investments	2	(1)
Total accumulated other comprehensive income (loss), net of tax	2	(1)
Total comprehensive income attributable to noncontrolling interests	12	8
Other		(13)
Balance, end of period	121	278
Non-redeemable Noncontrolling interests
A rollforward of non-controlling interests
Balance, beginning of year	855	27,920
Repurchase of SPV preferred interests in connection with Recapitalization		(26,432)
Net contributions	28	(96)
Consolidation (deconsolidation)		(109)
Acquisition of noncontrolling interest		(509)
Comprehensive income:
Net income	23	17
Accumulated other comprehensive income, net of tax:
Unrealized gains on investments	2	1
Foreign currency translation adjustments	1	36
Total accumulated other comprehensive income (loss), net of tax	3	37
Total comprehensive income attributable to noncontrolling interests	26	54
Other	(16)	(9)
Balance, end of period	893	819
Non-redeemable Noncontrolling interests \| Federal Reserve Bank of New York (FRBNY)
A rollforward of non-controlling interests
Balance, beginning of year		26,358
Repurchase of SPV preferred interests in connection with Recapitalization		(26,432)
Comprehensive income:
Net income		74
Accumulated other comprehensive income, net of tax:
Total comprehensive income attributable to noncontrolling interests		74
Non-redeemable Noncontrolling interests \| Other Minority Interests Holder
A rollforward of non-controlling interests
Balance, beginning of year	855	1,562
Net contributions	28	(96)
Consolidation (deconsolidation)		(109)
Acquisition of noncontrolling interest		(509)
Comprehensive income:
Net income	23	(57)
Accumulated other comprehensive income, net of tax:
Unrealized gains on investments	2	1
Foreign currency translation adjustments	1	36
Total accumulated other comprehensive income (loss), net of tax	3	37
Total comprehensive income attributable to noncontrolling interests	26	(20)
Other	(16)	(9)
Balance, end of period	$ 893	$ 819

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Details 5) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Numerator for EPS:
Income (loss) from continuing operations	$ 3,436,000,000	$ (1,084,000,000)
Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests	208,000,000	252,000,000
Other	33,000,000	(55,000,000)
Total net income from continuing operations attributable to noncontrolling interests	241,000,000	197,000,000
Net income (loss) attributable to AIG from continuing operations	3,195,000,000	(1,281,000,000)
Income (loss) from discontinued operations	13,000,000	2,585,000,000
Net income (loss) from discontinued operations attributable to noncontrolling interests		7,000,000
Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS	13,000,000	2,578,000,000
Net income (loss) attributable to AIG common shareholders from continuing operations, applicable to common stock for EPS	3,195,000,000	(2,093,000,000)
Denominator for EPS:
Weighted average shares outstanding - basic	1,875,972,970	1,557,748,353
Dilutive shares	29,805
Weighted average shares outstanding - diluted	1,876,002,775	1,557,748,353
Basic:
Income (loss) from continuing operations (in dollars per share)	$ 1.70	$ (1.34)
Income from discontinued operations (in dollars per share)	$ 0.01	$ 1.65
Diluted:
Income (loss) from continuing operations (in dollars per share)	$ 1.70	$ (1.34)
Income from discontinued operations (in dollars per share)	$ 0.01	$ 1.65
Number of shares and warrants excluded from diluted shares outstanding because the effect would have been anti-dilutive	78,000,000	65,000,000
Common stock included in consideration transferred to the Department of the Treasury (in shares)	1,092,169,866
Redeemable SPV Preferred Interests included in consideration transferred to the Department of the Treasury	20,200,000,000
Warrants to purchase AIG Common Stock
Diluted:
Number of shares and warrants excluded from diluted shares outstanding because the effect would have been anti-dilutive	75,000,000	59,000,000
Series E and F
Net income (loss) from continuing operations attributable to noncontrolling interests:
Deemed dividend to AIG Preferred Stock		$ (812,000,000)
Series C
Diluted:
Exchange of preferred stock for common stock in connection with recapitalization (in shares)	562,868,096
Preferred stock, par value (in dollars per share)	$ 5.00
Series E
Diluted:
Preferred stock, par value (in dollars per share)	$ 5.00
Series F
Diluted:
Preferred stock, par value (in dollars per share)	$ 5.00

EMPLOYEE BENEFITS (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Pensions
Components of net periodic benefit cost:
Service cost	$ 50	$ 59
Interest cost	58	63
Expected return on assets	(65)	(70)
Amortization of prior service (credit) cost	(9)	(2)
Amortization of net (gain) loss	33	17
Net periodic benefit cost	67	67
Contributed to pension plans	21
Estimates additional contribution to pension plans for the remainder of 2012	70
Pensions \| AIG Star and AIG Edison
Components of net periodic benefit cost:
Net periodic benefit cost		10
Non U.S. Pension Plans
Components of net periodic benefit cost:
Service cost	13	22
Interest cost	8	11
Expected return on assets	(5)	(7)
Amortization of prior service (credit) cost	(1)	(2)
Amortization of net (gain) loss	4	6
Net periodic benefit cost	19	30
Non U.S. Pension Plans \| AIG Star and AIG Edison
Components of net periodic benefit cost:
Net periodic benefit cost		10
U.S. Pension Plans
Components of net periodic benefit cost:
Service cost	37	37
Interest cost	50	52
Expected return on assets	(60)	(63)
Amortization of prior service (credit) cost	(8)
Amortization of net (gain) loss	29	11
Net periodic benefit cost	48	37
Postretirement Plans
Components of net periodic benefit cost:
Service cost	2	3
Interest cost	3	5
Amortization of prior service (credit) cost	(3)
Net periodic benefit cost	2	8
Postretirement Plans \| AIG Star and AIG Edison
Components of net periodic benefit cost:
Net periodic benefit cost		1
Non U.S. Postretirement Plans
Components of net periodic benefit cost:
Service cost	1	1
Interest cost		1
Net periodic benefit cost	1	2
Non U.S. Postretirement Plans \| AIG Star and AIG Edison
Components of net periodic benefit cost:
Net periodic benefit cost		1
U.S. Postretirement Plans
Components of net periodic benefit cost:
Service cost	1	2
Interest cost	3	4
Amortization of prior service (credit) cost	(3)
Net periodic benefit cost	$ 1	$ 6

- Definition

An amount calculated as a basis for determining the extent of delayed recognition of the effects of changes in the fair value of assets. The expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph h

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 1

-Subparagraph (h)(3)

-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Expected Return on Plan Assets

-URI http://asc.fasb.org/extlink&oid=6512136

-Topic 715

-SubTopic 30

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Expected Return on Plan Assets

-URI http://asc.fasb.org/extlink&oid=6512171

-Topic 715

-SubTopic 60

+ Details

- Definition

The increase in a defined benefit pension plan's projected benefit obligation or a defined benefit postretirement plan's accumulated postretirement benefit obligation due to the passage of time.

+ References+ Details

- Definition

The actuarial present value of benefits attributed by the pension benefit formula to services rendered by employees during the period. The portion of the expected postretirement benefit obligation attributed to employee service during the period. The service cost component is a portion of the benefit obligation and is unaffected by the funded status of the plan.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 106

-Paragraph 518

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 87

-Paragraph 264

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

-Paragraph 5

-Subparagraph a, h

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 1

-Subparagraph (h)(1)

-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e1928-114920

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 715

-SubTopic 20

-Section 50

-Paragraph 1

-Subparagraph (a)(1)

-URI http://asc.fasb.org/extlink&oid=6962843&loc=d3e1928-114920

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Service Cost (Component of Net Periodic Pension Cost)

-URI http://asc.fasb.org/extlink&oid=6525008

+ Details

INCOME TAXES (Details) (USD $)	3 Months Ended		12 Months Ended
INCOME TAXES (Details) (USD $)	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Income tax expense (benefit):
Effective tax rate on pretax income from continuing operations (as a percent)	25.00%	17.30%
U.S. federal income tax at statutory rate (as a percent)	35.00%	35.00%
Deferred tax asset valuation allowance	$ 190,000,000
Deferred tax asset valuation allowance allocated to income from continuing operations	183,000,000
Accounting for Uncertainty in Income Taxes
Unrecognized tax benefits, excluding interest and penalties	4,200,000,000		4,300,000,000
Unrecognized tax benefits, if recognized would not affect the effective tax rate	700,000,000		700,000,000
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate	3,500,000,000		3,600,000,000
Unrecognized tax benefits, interest and penalties accrued	707,000,000		744,000,000
Unrecognized tax benefits, interest net of the federal benefit and penalties	$ 37,000,000		$ 35,000,000
Unrecognized tax benefits, period of reasonably possible change in balance (in months)	P12M

DISCONTINUED OPERATIONS (Details) (USD $)	3 Months Ended		1 Months Ended			3 Months Ended
DISCONTINUED OPERATIONS (Details) (USD $)	Mar. 31, 2012	Mar. 31, 2011	Feb. 28, 2011 Star/Edison Sale	Sep. 30, 2010 Star/Edison Sale	Jan. 31, 2011 Nan Shan	Mar. 31, 2011 Nan Shan	Mar. 31, 2011 Discontinued operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Consideration in cash				$ 4,800,000,000
Amount of debt assumed by purchaser as part of total consideration received				600,000,000
Pre-tax gain (loss) reflected in Income (loss) from discontinued operations in the Income Statement			3,500,000,000			305,000,000	3,028,000,000
Voting interest (as a percent)					97.57%
Revenues:
Premiums	9,461,000,000	9,482,000,000					2,549,000,000
Net investment income	7,105,000,000	5,569,000,000					712,000,000
Net realized capital gains (losses)	(303,000,000)	(648,000,000)					369,000,000
Other income	333,000,000	1,196,000,000					5,000,000
Total revenues	18,443,000,000	17,439,000,000					3,635,000,000
Benefits, claims and expenses	13,859,000,000	18,749,000,000					3,095,000,000
Interest expense allocation	953,000,000	1,061,000,000					2,000,000
Income (loss) from discontinued operations							538,000,000
Gain (loss) on sales			3,500,000,000			305,000,000	3,028,000,000
Income (loss) from discontinued operations, before tax expense (benefit)							3,566,000,000
Income tax expense (benefit)							981,000,000
Income (loss) from discontinued operations, net of income tax	$ 13,000,000	$ 2,585,000,000					$ 2,585,000,000

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details) (USD $)	Mar. 31, 2012	Dec. 31, 2011	Mar. 31, 2011	Dec. 31, 2010
Assets:
Short-term investments	$ 20,789,000,000	$ 22,572,000,000
Other investments	386,172,000,000	387,866,000,000
Total investments	406,961,000,000	410,438,000,000
Cash	1,315,000,000	1,474,000,000	1,801,000,000	1,558,000,000
Debt issuance costs	496,000,000	493,000,000
Other assets, including current and deferred income taxes	145,631,000,000	139,955,000,000
Total assets	554,403,000,000	552,360,000,000
Liabilities:
Insurance liabilities	282,249,000,000	282,516,000,000
Other long-term debt	76,096,000,000	75,253,000,000
Other liabilities, including intercompany balances	91,593,000,000	83,675,000,000
Total liabilities	449,938,000,000	441,444,000,000
Redeemable noncontrolling interests (see Note 1):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		8,427,000,000
Other	121,000,000	96,000,000
Total redeemable noncontrolling interests	121,000,000	8,523,000,000
Total AIG shareholders' equity	103,451,000,000	101,538,000,000
Other noncontrolling interests	893,000,000	855,000,000
Total noncontrolling interests	893,000,000	855,000,000
Total equity	104,344,000,000	102,393,000,000	80,466,000,000	113,239,000,000
Total liabilities and equity	554,403,000,000	552,360,000,000
AIG (As Guarantor)
Assets:
Short-term investments	11,871,000,000	12,868,000,000
Other investments	9,892,000,000	6,599,000,000
Total investments	21,763,000,000	19,467,000,000
Cash	86,000,000	176,000,000	42,000,000	49,000,000
Loans to subsidiaries	36,165,000,000	39,971,000,000
Debt issuance costs	193,000,000	196,000,000
Investment in consolidated subsidiaries	72,282,000,000	79,802,000,000
Other assets, including current and deferred income taxes	24,882,000,000	24,317,000,000
Total assets	155,371,000,000	163,929,000,000
Liabilities:
Other long-term debt	36,658,000,000	35,906,000,000
Other liabilities, including intercompany balances	14,639,000,000	14,169,000,000
Loans from subsidiaries	623,000,000	12,316,000,000
Total liabilities	51,920,000,000	62,391,000,000
Redeemable noncontrolling interests (see Note 1):
Total AIG shareholders' equity	103,451,000,000	101,538,000,000
Total equity	103,451,000,000	101,538,000,000
Total liabilities and equity	155,371,000,000	163,929,000,000
Intercompany tax payable	9,700,000,000	9,800,000,000
Intercompany derivative liabilities	768,000,000	901,000,000
SAFG, Inc.
Assets:
Cash		13,000,000
Investment in consolidated subsidiaries	34,243,000,000	32,361,000,000
Other assets, including current and deferred income taxes	2,724,000,000	2,704,000,000
Total assets	36,967,000,000	35,078,000,000
Liabilities:
Other long-term debt	1,638,000,000	1,638,000,000
Other liabilities, including intercompany balances	1,729,000,000	2,402,000,000
Loans from subsidiaries	237,000,000	249,000,000
Total liabilities	3,604,000,000	4,289,000,000
Redeemable noncontrolling interests (see Note 1):
Total AIG shareholders' equity	33,363,000,000	30,789,000,000
Total equity	33,363,000,000	30,789,000,000
Total liabilities and equity	36,967,000,000	35,078,000,000
Intercompany tax receivable	129,000,000	128,000,000
Other Subsidiaries
Assets:
Short-term investments	10,968,000,000	14,110,000,000
Other investments	384,947,000,000	481,525,000,000
Total investments	395,915,000,000	495,635,000,000
Cash	1,229,000,000	1,285,000,000
Loans to subsidiaries	(36,165,000,000)	(39,971,000,000)
Debt issuance costs	303,000,000	297,000,000
Investment in consolidated subsidiaries	(23,768,000,000)	(11,600,000,000)
Other assets, including current and deferred income taxes	122,463,000,000	117,231,000,000
Total assets	459,977,000,000	562,877,000,000
Liabilities:
Insurance liabilities	282,526,000,000	282,790,000,000
Other long-term debt	46,528,000,000	138,240,000,000
Other liabilities, including intercompany balances	81,364,000,000	75,132,000,000
Loans from subsidiaries	(860,000,000)	(12,565,000,000)
Total liabilities	409,558,000,000	483,597,000,000
Redeemable noncontrolling interests (see Note 1):
Other	28,000,000	29,000,000
Total redeemable noncontrolling interests	28,000,000	29,000,000
Total AIG shareholders' equity	49,945,000,000	78,859,000,000
Other noncontrolling interests	446,000,000	392,000,000
Total noncontrolling interests	446,000,000	392,000,000
Total equity	50,391,000,000	79,251,000,000
Total liabilities and equity	459,977,000,000	562,877,000,000
Reclassifications and Eliminations
Assets:
Short-term investments	(2,050,000,000)	(4,406,000,000)
Other investments	(8,667,000,000)	(100,258,000,000)
Total investments	(10,717,000,000)	(104,664,000,000)
Investment in consolidated subsidiaries	(82,757,000,000)	(100,563,000,000)
Other assets, including current and deferred income taxes	(4,438,000,000)	(4,297,000,000)
Total assets	(97,912,000,000)	(209,524,000,000)
Liabilities:
Insurance liabilities	(277,000,000)	(274,000,000)
Other long-term debt	(8,728,000,000)	(100,531,000,000)
Other liabilities, including intercompany balances	(6,139,000,000)	(8,028,000,000)
Total liabilities	(15,144,000,000)	(108,833,000,000)
Redeemable noncontrolling interests (see Note 1):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		8,427,000,000
Other	93,000,000	67,000,000
Total redeemable noncontrolling interests	93,000,000	8,494,000,000
Total AIG shareholders' equity	(83,308,000,000)	(109,648,000,000)
Other noncontrolling interests	447,000,000	463,000,000
Total noncontrolling interests	447,000,000	463,000,000
Total equity	(82,861,000,000)	(109,185,000,000)
Total liabilities and equity	$ (97,912,000,000)	$ (209,524,000,000)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Revenues:
Change in fair value of ML III	$ 1,252	$ 744
Other income	17,191	16,695
Total revenues	18,443	17,439
Expenses:
Interest expense on FRBNY Credit Facility		70
Other interest expense	953	991
Net loss on extinguishment of debt	21	3,313
Other expenses	12,885	14,375
Total benefits, claims and expenses	13,859	18,749
Income (loss) from continuing operations before income tax expense (benefit)	4,584	(1,310)
Income tax expense (benefit)	1,148	(226)
Income (loss) from continuing operations	3,436	(1,084)
Income (loss) from discontinued operations	13	2,585
Net income	3,449	1,501
Less: Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests	208	252
Other	33	(55)
Total net income from continuing operations attributable to noncontrolling interests	241	197
Income (loss) from discontinued operations attributable to noncontrolling interests		7
Total net income attributable to noncontrolling interests	241	204
Net income attributable to AIG	3,208	1,297
AIG
Revenues:
Equity in earnings of consolidated subsidiaries	2,820	3,992
Change in fair value of ML III	651
Other income	651	41
Total revenues	4,122	4,033
Expenses:
Interest expense on FRBNY Credit Facility		72
Other interest expense	644	751
Net loss on extinguishment of debt		3,313
Other expenses	179	47
Total benefits, claims and expenses	823	4,183
Income (loss) from continuing operations before income tax expense (benefit)	3,299	(150)
Income tax expense (benefit)	91	(316)
Income (loss) from continuing operations	3,208	166
Income (loss) from discontinued operations		1,131
Net income	3,208	1,297
Less: Net income from continuing operations attributable to noncontrolling interests:
Net income attributable to AIG	3,208	1,297
Intercompany income	71	146
Intercompany expense	133	195
SAFG, Inc.
Revenues:
Equity in earnings of consolidated subsidiaries	(1,336)	336
Other income	1,437	258
Total revenues	101	594
Expenses:
Other interest expense	54	94
Total benefits, claims and expenses	54	94
Income (loss) from continuing operations before income tax expense (benefit)	47	500
Income tax expense (benefit)		81
Income (loss) from continuing operations	47	419
Net income	47	419
Less: Net income from continuing operations attributable to noncontrolling interests:
Net income attributable to AIG	47	419
Other Subsidiaries
Revenues:
Change in fair value of ML III	601	744
Other income	15,307	16,737
Total revenues	15,908	17,481
Expenses:
Other interest expense	459	487
Net loss on extinguishment of debt	21
Other expenses	12,706	14,328
Total benefits, claims and expenses	13,186	14,815
Income (loss) from continuing operations before income tax expense (benefit)	2,722	2,666
Income tax expense (benefit)	1,057	9
Income (loss) from continuing operations	1,665	2,657
Income (loss) from discontinued operations	13	1,456
Net income	1,678	4,113
Less: Net income from continuing operations attributable to noncontrolling interests:
Other	33	(55)
Total net income from continuing operations attributable to noncontrolling interests		(55)
Income (loss) from discontinued operations attributable to noncontrolling interests		7
Total net income attributable to noncontrolling interests	33	(48)
Net income attributable to AIG	1,645	4,161
Reclassifications and Eliminations
Revenues:
Equity in earnings of consolidated subsidiaries	(1,484)	(4,328)
Other income	(204)	(341)
Total revenues	(1,688)	(4,669)
Expenses:
Interest expense on FRBNY Credit Facility		(2)
Other interest expense	(204)	(341)
Total benefits, claims and expenses	(204)	(343)
Income (loss) from continuing operations before income tax expense (benefit)	(1,484)	(4,326)
Income (loss) from continuing operations	(1,484)	(4,326)
Income (loss) from discontinued operations		(2)
Net income	(1,484)	(4,328)
Less: Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests	208	252
Total net income from continuing operations attributable to noncontrolling interests		252
Total net income attributable to noncontrolling interests	208	252
Net income attributable to AIG	$ (1,692)	$ (4,580)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	$ 3,449	$ 1,501
Other comprehensive income (loss)	1,725	(780)
Comprehensive income (loss)	5,174	721
Total comprehensive income attributable to noncontrolling interests	246	240
Comprehensive loss attributable to AIG	4,928	481
AIG
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	3,208	1,297
Other comprehensive income (loss)	1,725	(780)
Comprehensive income (loss)	4,933	517
Total comprehensive income attributable to noncontrolling interests	5	36
Comprehensive loss attributable to AIG	4,928	481
SAFG, Inc.
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	47	419
Comprehensive income (loss)	47	419
Comprehensive loss attributable to AIG	47	419
Other Subsidiaries
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	1,678	4,113
Other comprehensive income (loss)	(15)	(522)
Comprehensive income (loss)	1,663	3,591
Total comprehensive income attributable to noncontrolling interests	33	(47)
Comprehensive loss attributable to AIG	1,630	3,638
Reclassifications and Eliminations
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	(1,484)	(4,328)
Other comprehensive income (loss)	15	522
Comprehensive income (loss)	(1,469)	(3,806)
Total comprehensive income attributable to noncontrolling interests	208	251
Comprehensive loss attributable to AIG	$ (1,677)	$ (4,057)

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 8, 9, 10, 11, 12, 13, 14

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 30

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph A5

-Appendix A

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e557-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Net Income

-URI http://asc.fasb.org/extlink&oid=6518256

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Other Comprehensive Income

-URI http://asc.fasb.org/extlink&oid=6519514

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e540-108580

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Comprehensive Income

-URI http://asc.fasb.org/extlink&oid=6508144

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph c(3)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to noncontrolling interests, if any. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References+ Details

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the economic entity, including both controlling (parent) and noncontrolling interests. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, including any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References+ Details

- Definition

This element represents Other Comprehensive Income or Loss, Net of Tax, for the period. Includes deferred gains or losses on qualifying hedges, unrealized holding gains or losses on available-for-sale securities, minimum pension liability, and cumulative translation adjustment. While for technical reasons this element has no balance attribute, the default assumption is a credit balance consistent with its label.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 12

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 31

-Article 5

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Article 3

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 130

-Paragraph 22, 23, 24, 25

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

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-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 8

-URI http://asc.fasb.org/extlink&oid=6920043&loc=d3e599-108580

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

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-Paragraph 38

-Subparagraph c(3)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 29

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph a

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph A1, A4, A5

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-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 5

-Subparagraph b

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-Topic 810

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-Topic 810

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-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph c(1)

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details 4) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended
	Jan. 31, 2011	Mar. 31, 2012	Mar. 31, 2011
CONDENSED FINANCIAL STATEMENTS
Net cash (used in) provided by operating activities - continuing operations		$ (111)	$ (6,542)
Net cash (used in) provided by operating activities - discontinued operations			1,230
Net cash used in operating activities		(111)	(5,312)
Cash flows from investing activities:
Sales of investments		26,196	26,387
Purchase of investments		(17,393)	(21,546)
Net change in restricted cash		(531)	26,280
Net change in short-term investments		2,172	4,180
Other, net		(258)	111
Net cash provided by investing activities - continuing operations		10,186	35,412
Net cash (used in) provided by investing activities - discontinued operations			4,205
Net cash provided by investing activities		10,186	39,617
Cash flows from financing activities:
Federal Reserve Bank of New York credit facility repayments			(14,622)
Issuance of long-term debt		4,769	183
Repayments of long-term debt		(4,264)	(3,894)
Proceeds from drawdown on the Department of the Treasury Commitment			20,292
Purchase of Common Stock		(3,000)
Settlement of equity unit stock purchase contract			723
Other, net		(7,737)	(35,530)
Net cash used in financing activities - continuing operations		(10,232)	(32,848)
Net cash (used in) provided by financing activities - discontinued operations			(1,637)
Net cash used in financing activities		(10,232)	(34,485)
Effect of exchange rate changes on cash		(2)	23
Net decrease in cash		(159)	(157)
Cash at beginning of period	1,558	1,474	1,558
Change in cash of businesses held for sale			400
Cash at end of period		1,315	1,801
Interest:
Third party		(939)	(5,796)
Taxes:
Income tax authorities		(97)	(384)
Payment of FRBNY Credit Facility accrued compounded interest	4,700		6,363
AIG
CONDENSED FINANCIAL STATEMENTS
Net cash (used in) provided by operating activities - continuing operations			(4,809)
Net cash used in operating activities		(799)	(4,809)
Cash flows from investing activities:
Sales of investments		764	2,155
Sales of divested businesses, net			1,075
Purchase of investments			(3)
Loans to subsidiaries - net		3,866	884
Contributions to subsidiaries - net		(168)	(19,596)
Net change in restricted cash		(560)	2,012
Net change in short-term investments		1,450	(1,083)
Other, net		106	57
Net cash provided by investing activities - continuing operations			(14,499)
Net cash provided by investing activities		5,458	(14,499)
Cash flows from financing activities:
Federal Reserve Bank of New York credit facility repayments			(14,622)
Issuance of long-term debt		1,996
Repayments of long-term debt		(1,339)	(1,458)
Proceeds from drawdown on the Department of the Treasury Commitment			20,292
Purchase of Common Stock		(3,000)
Settlement of equity unit stock purchase contract			723
Intercompany loans - net		(2,400)	14,366
Other, net		(6)
Net cash used in financing activities - continuing operations			19,301
Net cash used in financing activities		(4,749)	19,301
Net decrease in cash		(90)	(7)
Cash at beginning of period	49	176	49
Cash at end of period		86	42
Interest:
Third party		(398)	(5,147)
Intercompany		(128)	(162)
Taxes:
Income tax authorities		2	14
Intercompany		145	(44)
Payment of FRBNY Credit Facility accrued compounded interest			4,700
Intercompany non-cash financing/investing activities:
Capital contributions in the form of bond available for sale securities		959
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 bond trading securities		3,320	3,668
Intercompany loan receivable offset by intercompany payable			18,187
Other capital contributions - net		187	(906)
SAFG, Inc.
CONDENSED FINANCIAL STATEMENTS
Net cash (used in) provided by operating activities - continuing operations			131
Net cash used in operating activities		1,352	131
Cash flows from financing activities:
Issuance of long-term debt		300
Intercompany loans - net		(1,665)	(131)
Net cash used in financing activities - continuing operations			(131)
Net cash used in financing activities		(1,365)	(131)
Net decrease in cash		(13)
Cash at beginning of period		13
Interest:
Third party		(32)	(32)
Intercompany		(22)	(62)
Other Subsidiaries and Eliminations
CONDENSED FINANCIAL STATEMENTS
Net cash (used in) provided by operating activities - continuing operations			(1,864)
Net cash (used in) provided by operating activities - discontinued operations			1,230
Net cash used in operating activities		(664)	(634)
Cash flows from investing activities:
Sales of investments		25,432	24,232
Sales of divested businesses, net			(1,075)
Purchase of investments		(17,393)	(21,543)
Loans to subsidiaries - net		(3,866)	(884)
Contributions to subsidiaries - net		168	19,596
Net change in restricted cash		29	24,268
Net change in short-term investments		722	5,263
Other, net		(364)	54
Net cash provided by investing activities - continuing operations			49,911
Net cash (used in) provided by investing activities - discontinued operations			4,205
Net cash provided by investing activities		4,728	54,116
Cash flows from financing activities:
Issuance of long-term debt		2,473	183
Repayments of long-term debt		(2,925)	(2,436)
Intercompany loans - net		4,065	(14,235)
Other, net		(7,731)	(35,530)
Net cash used in financing activities - continuing operations			(52,018)
Net cash (used in) provided by financing activities - discontinued operations			(1,637)
Net cash used in financing activities		(4,118)	(53,655)
Effect of exchange rate changes on cash		(2)	23
Net decrease in cash		(56)	(150)
Cash at beginning of period	1,509	1,285	1,509
Change in cash of businesses held for sale			400
Cash at end of period		1,229	1,759
Interest:
Third party		(509)	(617)
Intercompany		150	224
Taxes:
Income tax authorities		(99)	(398)
Intercompany		$ (145)	$ 44