Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2012	Oct. 26, 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	Sep. 30, 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		1,476,304,497
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEET (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2012 - $246,690; 2011 - $250,770)	$ 269,914	$ 263,981
Bond trading securities, at fair value	24,837	24,364
Equity securities:
Common and preferred stock available for sale, at fair value (cost: 2012 - $1,676; 2011 - $1,820)	3,021	3,624
Common and preferred stock trading, at fair value	98	125
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2012 - $130; 2011 - $107)	19,330	19,489
Flight equipment primarily under operating leases, net of accumulated depreciation	34,932	35,539
Other invested assets (portion measured at fair value: 2012 - $15,033; 2011 - $20,876)	35,426	40,744
Short-term investments (portion measured at fair value: 2012 - $7,300; 2011 - $5,913)	22,557	22,572
Total investments	410,115	410,438
Cash	1,608	1,474
Accrued investment income	3,153	3,108
Premiums and other receivables, net of allowance	14,564	14,721
Reinsurance assets, net of allowance	27,066	27,211
Current and deferred income taxes	14,119	17,802
Deferred policy acquisition costs	8,204	8,937
Derivative assets, at fair value	3,456	4,499
Other assets, including restricted cash of $2,293 in 2012 and $2,988 in 2011 (portion measured at fair value: 2012 - $698; 2011 - $0)	11,698	12,782
Separate account assets, at fair value	56,740	51,388
Total assets	550,723	552,360
Liabilities:
Liability for unpaid claims and claims adjustment expense	87,413	91,145
Unearned premiums	24,418	23,465
Future policy benefits for life and accident and health insurance contracts	35,831	34,317
Policyholder contract deposits (portion measured at fair value: 2012 - $1,308; 2011 - $918)	127,478	126,898
Other policyholder funds	6,303	6,691
Derivative liabilities, at fair value	4,314	4,733
Other liabilities (portion measured at fair value: 2012 - $930; 2011 - $907)	31,905	27,554
Long-term debt (portion measured at fair value: 2012 - $8,835; 2011 - $10,766)	73,748	75,253
Separate account liabilities	56,740	51,388
Total liabilities	448,150	441,444
Contingencies, commitments and guarantees (see Note 9)
Redeemable noncontrolling interests (see Note 11):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		8,427
Other	159	96
Total redeemable noncontrolling interests	159	8,523
AIG shareholders' equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2012 - 1,906,612,666 and 2011 - 1,906,568,099	4,766	4,766
Treasury stock, at cost; 2012 - 430,316,923; 2011 - 9,746,617 shares of common stock	(13,925)	(942)
Additional paid-in capital	81,768	81,787
Retained earnings	18,170	10,774
Accumulated other comprehensive income (loss)	10,887	5,153
Total AIG shareholders' equity	101,666	101,538
Non-redeemable noncontrolling interests	748	855
Total equity	102,414	102,393
Total liabilities and equity	$ 550,723	$ 552,360

CONSOLIDATED BALANCE SHEET (Parenthetical - assets and liabilities) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Assets:
Bonds available for sale, amortized cost	$ 246,690	$ 250,770
Common and preferred stock available for sale, cost	1,676	1,820
Mortgage and other loans receivable, portion measured at fair value	130	107
Other invested assets, portion measured at fair value	15,033	20,876
Short-term investments, portion measured at fair value	7,300	5,913
Other assets, restricted cash	2,293	2,988
Other assets, portion measured at fair value	698	0
Liabilities:
Policyholder contract deposits, portion measured at fair value	1,308	918
Other liabilities, portion measured at fair value	930	907
Long-term debt, portion measured at fair value	$ 8,835	$ 10,766

CONSOLIDATED BALANCE SHEET (Parenthetical - equity) (USD $)	Sep. 30, 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	1,906,612,666	1,906,568,099
Treasury stock, shares of common stock	430,316,923	9,746,617

CONSOLIDATED STATEMENT OF OPERATIONS (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues:
Premiums	$ 9,503	$ 9,829	$ 28,583	$ 29,209
Policy fees	691	658	2,056	2,024
Net investment income	4,650	128	16,236	10,161
Net realized capital gains (losses):
Total other-than-temporary impairments on available for sale securities	(34)	(493)	(301)	(892)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss)	(36)	71	(372)	130
Net other-than-temporary impairments on available for sale securities recognized in net income (loss)	(70)	(422)	(673)	(762)
Other realized capital gains	717	1,029	1,467	709
Total net realized capital gains (losses)	647	607	794	(53)
Aircraft leasing revenue	1,147	1,129	3,426	3,419
Other income	1,010	368	2,119	2,078
Total revenues	17,648	12,719	53,214	46,838
Benefits, claims and expenses:
Policyholder benefits and claims incurred	7,991	8,333	22,862	25,378
Interest credited to policyholder account balances	1,191	1,146	3,324	3,366
Amortization of deferred acquisition costs	1,522	1,540	4,341	4,093
Other acquisition and insurance expenses	2,214	2,067	6,736	6,164
Interest expense	988	970	2,895	3,055
Aircraft leasing expenses	720	2,057	1,991	3,264
Net (gain) loss on extinguishment of debt			32	3,392
Other expenses	427	876	2,103	1,912
Total benefits, claims and expenses	15,053	16,989	44,284	50,624
Income (loss) from continuing operations before income tax expense (benefit)	2,595	(4,270)	8,930	(3,786)
Income taxes expense (benefit)	735	(665)	1,290	(1,187)
Income (loss) from continuing operations	1,860	(3,605)	7,640	(2,599)
Income (loss) from discontinued operations, net of income tax expense (benefit)	1	(221)	9	2,327
Net income (loss)	1,861	(3,826)	7,649	(272)
Less: Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		145	208	538
Other	5	19	45	28
Total net income (loss) from continuing operations attributable to noncontrolling interests	5	164	253	566
Net income (loss) from discontinued operations attributable to noncontrolling interests				19
Total net income (loss) attributable to noncontrolling interests	5	164	253	585
Net income (loss) attributable to AIG	1,856	(3,990)	7,396	(857)
Net income (loss) attributable to AIG common shareholders	$ 1,856	$ (3,990)	$ 7,396	$ (1,669)
Basic:
Income (loss) from continuing operations (in dollars per share)	$ 1.13	$ (1.99)	$ 4.21	$ (2.25)
Income (loss) from discontinued operations (in dollars per share)		$ (0.11)		$ 1.30
Diluted:
Income (loss) from continuing operations (in dollars per share)	$ 1.13	$ (1.99)	$ 4.21	$ (2.25)
Income (loss) from discontinued operations (in dollars per share)		$ (0.11)		$ 1.30
Weighted average shares outstanding:
Basic (in shares)	1,642,472,814	1,899,500,628	1,757,955,937	1,765,905,779
Diluted (in shares)	1,642,502,251	1,899,500,628	1,757,984,154	1,765,905,779

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net income (loss)	$ 1,861	$ (3,826)	$ 7,649	$ (272)
Other comprehensive income (loss), net of tax
Change in unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken	497	(184)	1,127	105
Change in unrealized appreciation (depreciation) of all other investments	2,331	(2,008)	4,617	(954)
Change in foreign currency translation adjustments	240	(582)	(96)	(811)
Change in net derivative gains (losses) arising from cash flow hedging activities	2	(57)	25	14
Change in retirement plan liabilities adjustment	29	(339)	61	(190)
Other comprehensive income (loss)	3,099	(3,170)	5,734	(1,836)
Comprehensive income (loss)	4,960	(6,996)	13,383	(2,108)
Comprehensive income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests		145	208	538
Comprehensive income (loss) attributable to other noncontrolling interests	8	(87)	45	(106)
Total comprehensive income (loss) attributable to noncontrolling interests	8	58	253	432
Comprehensive income (loss) attributable to AIG	$ 4,952	$ (7,054)	$ 13,130	$ (2,540)

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 (Loss)

Non redeemable noncontrolling 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

Common stock issued

2,886

250

2,636

Settlement of equity unit stock purchase contract

2,169

2,160

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

^[1]

(806)

(857)

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

Other comprehensive income (loss)

(1,836)

(1,683)

(153)

Acquisition of noncontrolling interest

(559)

(72)

(160)

(487)

Net decrease due to deconsolidation

(123)

Contributions from noncontrolling interests

Distributions to noncontrolling interests

(127)

Other

(48)

(3)

(1)

(3)

(45)

Balance at Sep. 30, 2011

81,682

80,911

4,764

(872)

81,776

(10,705)

5,948

771

Balance at Dec. 31, 2011

102,393

101,538

4,766

(942)

81,787

10,774

5,153

855

Increase (Decrease) in Stockholders' Equity

Common stock issued under stock plans

(15)

Purchase of common stock

(13,000)

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

^[1]

7,436

7,396

Other comprehensive income (loss)

5,730

5,734

(4)

Deferred income taxes

(9)

Contributions from noncontrolling interests

Distributions to noncontrolling interests

(175)

Other

(21)

(26)

Balance at Sep. 30, 2012

$ 102,414

$ 101,666

$ 4,766

$ (13,925)

$ 81,768

$ 18,170

$ 10,887

$ 748

[1]	Excludes gains of $213 million and $460 million for the nine months ended September 30, 2012 and 2011, respectively, attributable to redeemable noncontrolling interests.

CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net income (loss)	$ 7,649	$ (272)
Income (loss) from discontinued operations	(9)	(2,327)
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gains) losses on sales of securities available for sale and other assets	(2,827)	(1,131)
Net (gains) losses on extinguishment of debt	32	3,392
Unrealized (gains) losses in earnings - net	(4,578)	714
Equity in (income) loss from equity method investments, net of dividends or distributions	(527)	(840)
Depreciation and other amortization	5,541	5,618
Impairments of assets	1,371	3,052
Changes in operating assets and liabilities:
General and life insurance reserves	(1,119)	4,190
Premiums and other receivables and payables - net	1,220	686
Reinsurance assets and funds held under reinsurance treaties	272	(4,258)
Capitalization of deferred policy acquisition costs	(4,260)	(4,110)
Current and deferred income taxes - net	885	(1,829)
Payment of FRBNY Credit Facility accrued compounded interest and fees		(6,363)
Other, net	(811)	(1,093)
Total adjustments	(4,801)	(1,972)
Net cash provided by (used in) operating activities - continuing operations	2,839	(4,571)
Net cash provided by (used in) operating activities - discontinued operations		3,370
Net cash provided by (used in) operating activities	2,839	(1,201)
Proceeds from (payments for)
Sales of available for sale and hybrid investments	30,789	33,063
Maturities of fixed maturity securities available for sale and hybrid investments	16,623	15,021
Sales of trading securities	14,541	9,105
Sales or distributions of other invested assets (including flight equipment)	11,007	6,539
Sales of divested businesses, net		587
Principal payments received on and sales of mortgage and other loans receivable	2,251	2,515
Purchases of available for sale and hybrid investments	(47,842)	(69,598)
Purchases of trading securities	(2,871)	(960)
Purchases of other invested assets (including flight equipment)	(4,871)	(5,351)
Mortgage and other loans receivable issued and purchased	(2,110)	(1,735)
Net change in restricted cash	695	26,408
Net change in short-term investments	1,141	15,410
Net change in derivative assets and liabilities	(118)	982
Other, net	(77)	(318)
Net cash provided by (used in) investing activities - continuing operations	19,158	31,668
Net cash provided by (used in) investing activities - discontinued operations		4,478
Net cash provided by (used in) investing activities	19,158	36,146
Proceeds from (payments for)
Policyholder contract deposits	10,092	13,907
Policyholder contract withdrawals	(10,426)	(10,538)
FRBNY credit facility repayments		(14,622)
Issuance of long-term debt	7,985	6,297
Repayments of long-term debt	(9,847)	(14,944)
Proceeds from drawdown on the Department of the Treasury Commitment		20,292
Repayment of Department of the Treasury SPV Preferred Interests	(8,636)	(11,453)
Repayment of FRBNY SPV Preferred Interests		(26,432)
Issuance of Common Stock		5,055
Purchase of Common Stock	(13,000)
Acquisition of noncontrolling interest	(175)	(683)
Other, net	2,153	(381)
Net cash provided by (used in) financing activities - continuing operations	(21,854)	(33,502)
Net cash provided by (used in) financing activities - discontinued operations		(1,942)
Net cash provided by (used in) financing activities	(21,854)	(35,444)
Effect of exchange rate changes on cash	(9)	37
Net increase (decrease) in cash	134	(462)
Cash at beginning of period	1,474	1,558
Change in cash of businesses held for sale		446
Cash at end of period	$ 1,608	$ 1,542

Supplementary Disclosure of Consolidated Cash Flow Information (USD $)
In Millions, unless otherwise specified

9 Months Ended

Sep. 30, 2012

Sep. 30, 2011

Cash paid during the period for:

Interest

$ 3,056

^[1]

$ 7,952

^[1]

Taxes

403

643

Non-cash financing/investing activities:

Interest credited to policyholder contract deposits included in financing activities

$ 3,375

$ 3,602

[1]

2011 includes payment of accrued compounded interest of $4.7 billion under the Credit Agreement, dated as of September 22, 2008, as amended between AIG and the Federal Reserve Bank of New York (the FRBNY and, such credit agreement, the FRBNY Credit Facility), 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 FRBNY and the AIG Credit Facility Trust, including the repayment of all amounts owed under the FRBNY Credit Facility.

- 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

BASIS OF PRESENTATION

9 Months Ended

Sep. 30, 2012

BASIS OF PRESENTATION

BASIS OF PRESENTATION

1. BASIS OF PRESENTATION

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock, par value $2.50 per share (AIG Common Stock), is listed on the New York Stock Exchange and the Tokyo Stock Exchange. The United States Department of the Treasury (Department of the Treasury) owned approximately 15.9 percent of AIG Common Stock outstanding as of September 30, 2012. See Note 10 herein for additional information on the Department of the Treasury's ownership of AIG Common Stock and the registered public offerings of AIG Common Stock initiated by the Department of the Treasury in 2012.

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 Forms 10-K/A filed on February 27, 2012 and March 30, 2012, respectively, and as updated by AIG's Current Report on Form 8-K filed on May 4, 2012 (collectively, the 2011 Annual Report). The condensed consolidated financial information as of December 31, 2011 included herein has been derived from audited consolidated financial statements in the 2011 Annual Report 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 September 30, 2012 and prior to the issuance of these consolidated financial statements. All material intercompany accounts and transactions have been eliminated.

Revisions to Prior Year Financial Statements

On January 1, 2012, AIG retrospectively 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.

To align the presentation of changes in the fair value of derivatives with changes in the administration of AIG's derivatives portfolio, changes were made to the presentation within the Consolidated Statement of Operations and Consolidated Statement of Cash Flows. Specifically, amounts attributable to derivative activity where AIG Financial Products Corp. and AIG Trading Group Inc. and their respective subsidiaries (collectively, AIGFP) executed transactions with third parties on behalf of AIG subsidiaries have been reclassified from Other income to Net realized capital gains (losses). Additionally, certain other items have been reclassified within the Consolidated Statement of Operations in the current period. Prior period amounts were reclassified to conform to the current period presentation.

Use of Estimates

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

•: income tax assets and liabilities, 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 of financial instruments and goodwill impairments;
•: liabilities for legal contingencies; and
•: fair value measurements of certain financial assets and liabilities.

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.

- Definition

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

+ References

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+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recent Accounting Standards

Future Application of Accounting Standards

In July 2012, the Financial Accounting Standards Board (FASB) issued an accounting standard that allows a company the option to first assess qualitatively whether it is more likely than not that an indefinite-lived intangible asset is impaired. A company is not required to calculate the fair value of an indefinite-lived intangible asset and perform the quantitative impairment test unless the company determines it is more likely than not the asset is impaired.

The standard is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. A company can choose to early adopt the standard. AIG intends to adopt the standard on its required effective date of January 1, 2013. AIG does not expect adoption of the standard to have a material effect on its consolidated financial condition, results of operations or cash flows.

Accounting Standards Adopted During 2012

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

Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts

In October 2010, the 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 DAC. 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 consolidated 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 September 30, 2011 (dollars in millions, except per share data)	As Previously Reported			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital gains^(a)	$	604		$	3		$	607

Total revenues		12,716			3			12,719

Interest credited to policyholder account balances		1,134			12			1,146
Amortization of deferred acquisition costs		2,490			(950	)		1,540
Other acquisition and other insurance expenses		1,214			853			2,067

Total benefits, claims and expenses		17,074			(85	)		16,989

Loss from continuing operations before income tax benefit		(4,358	)		88			(4,270	)

Income tax benefit^(b)		(634	)		(31	)		(665	)

Loss from continuing operations		(3,724	)		119			(3,605	)
Loss from discontinued operations, net of income tax expense^(c)		(221	)		–			(221	)

Net loss		(3,945	)		119			(3,826	)

Net loss attributable to AIG		(4,109	)		119			(3,990	)

Net loss attributable to AIG common shareholders		(4,109	)		119			(3,990	)

Loss per share attributable to AIG common shareholders:
Basic:
Loss from continuing operations	$	(2.05	)	$	0.06		$	(1.99	)
Loss from discontinued operations	$	(0.11	)	$	–		$	(0.11	)
Diluted
Loss from continuing operations	$	(2.05	)	$	0.06		$	(1.99	)
Loss from discontinued operations	$	(0.11	)	$	–		$	(0.11	)

Nine Months Ended September 30, 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^(a)	$	(63	)	$	10		$	(53	)

Total revenues		46,828			10			46,838

Interest credited to policyholder account balances		3,349			17			3,366
Amortization of deferred acquisition costs		5,992			(1,899	)		4,093
Other acquisition and other insurance expenses		4,418			1,746			6,164

Total benefits, claims and expenses		50,760			(136	)		50,624

Loss from continuing operations before income tax benefit		(3,932	)		146			(3,786	)

Income tax benefit^(b)		(1,122	)		(65	)		(1,187	)

Loss from continuing operations		(2,810	)		211			(2,599	)
Income from discontinued operations, net of income tax expense^(c)		1,395			932			2,327

Net loss		(1,415	)		1,143			(272	)

Net loss attributable to AIG		(2,000	)		1,143			(857	)

Net loss attributable to AIG common shareholders		(2,812	)		1,143			(1,669	)

Income (loss) per share attributable to AIG common shareholders:
Basic:
Loss from continuing operations	$	(2.37	)	$	0.12		$	(2.25	)
Income from discontinued operations	$	0.78		$	0.52		$	1.30
Diluted
Loss from continuing operations	$	(2.37	)	$	0.12		$	(2.25	)
Income from discontinued operations	$	0.78		$	0.52		$	1.30

(a) Includes $192 million and $110 million for the three and nine months ended September 30, 2011, respectively, attributable to the effect of the reclassification of certain derivative activity discussed in Note 1 herein.

(b) Includes a change in the deferred tax asset valuation allowance for each period.

(c) Represents the results of Nan Shan Life Insurance Company, Ltd. (Nan Shan) and the results of AIG Star Life Insurance Co. Ltd. (AIG Star) and AIG Edison Life Insurance Company (AIG Edison) through the date of their disposition, and the gain on the sale of AIG Star and 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.

Nine Months Ended September 30, 2011 (in millions)	As Previously Reported			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net loss	$	(1,415	)	$	1,143		$	(272	)
(Income) from discontinued operations		(1,395	)		(932	)		(2,327	)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized losses in earnings – net^*		724			(10	)		714
Depreciation and other amortization		7,500			(1,882	)		5,618
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(5,856	)		1,746			(4,110	)
Current and deferred income taxes – net		(1,764	)		(65	)		(1,829	)
Total adjustments		(1,761	)		(211	)		(1,972	)

* Includes $118 million for the nine months ended September 30, 2011 attributable to the effect of the reclassification of certain derivative activity discussed in Note 1 herein.

For short-duration insurance contracts, starting in 2012, AIG 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 because 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 required 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. As a consequence, 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, there are no repurchase agreements that continue to be accounted for as sales as of September 30, 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. As of September 30, 2012, there were no such modifications subsequent to the adoption of 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. The guidance clarifies existing guidance on the application of fair value measurements, changes certain principles or requirements for measuring fair value, and requires significant additional disclosures for Level 3 valuation inputs. The new disclosure requirements were applied prospectively. The standard became effective beginning on January 1, 2012. 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 became effective beginning January 1, 2012 with retrospective application required. 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 became effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. The adoption of the standard did not have any effect on 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

9 Months Ended

Sep. 30, 2012

SEGMENT INFORMATION

SEGMENT INFORMATION

3. SEGMENT INFORMATION

Commencing in the third quarter of 2012, the Chartis segment was renamed AIG Property Casualty and the SunAmerica segment was renamed AIG Life and Retirement, although certain existing brands will continue to be used.

AIG reports the results of its operations through three reportable segments: AIG Property Casualty, AIG Life and Retirement 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.

Effective during the first quarter of 2012, in order to align financial reporting with the manner in which AIG's chief operating decision makers review the AIG Property Casualty 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 AIG Property Casualty reportable segment results previously reported.

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

	Reportable Segment


	Reportable Segment										Consolidation and Eliminations
(in millions)	AIG Property Casualty		AIG Life and Retirement		Aircraft Leasing^*			Other Operations			Consolidation and Eliminations			Consolidated

Three Months Ended September 30, 2012
Total revenues	$	10,149	$	4,530	$	1,146		$	2,213		$	(390	)	$	17,648
Pre-tax income (loss)		949		889		40			891			(174	)		2,595

Three Months Ended September 30, 2011
Total revenues	$	10,185	$	3,582	$	1,106		$	(2,433	)	$	279		$	12,719
Pre-tax income (loss)		551		346		(1,329	)		(3,945	)		107			(4,270	)

Nine Months Ended September 30, 2012
Total revenues	$	29,967	$	12,439	$	3,421		$	8,085		$	(698	)	$	53,214
Pre-tax income (loss)		2,820		2,528		246			3,511			(175	)		8,930

Nine Months Ended September 30, 2011
Total revenues	$	30,283	$	11,317	$	3,366		$	1,864		$	8		$	46,838
Pre-tax income (loss)		1,003		2,079		(1,122	)		(5,855	)		109			(3,786	)

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

The following table presents AIG Property Casualty operations by operating segment:

(in millions)	Commercial Insurance		Consumer Insurance			Other		Total AIG Property Casualty



Three Months Ended September 30, 2012
Total revenues	$	5,975	$	3,582		$	592	$	10,149
Pre-tax income		321		152			476		949

Three Months Ended September 30, 2011
Total revenues	$	6,402	$	3,523		$	260	$	10,185
Pre-tax income		405		21			125		551

Nine Months Ended September 30, 2012
Total revenues	$	17,991	$	10,758		$	1,218	$	29,967
Pre-tax income		1,480		578			762		2,820

Nine Months Ended September 30, 2011
Total revenues	$	18,905	$	10,439		$	939	$	30,283
Pre-tax income (loss)		650		(175	)		528		1,003

The following table presents AIG Life and Retirement operations by operating segment:

(in millions)	Life Insurance		Retirement Services			Total AIG Life and Retirement



Three Months Ended September 30, 2012
Total revenues	$	2,663	$	1,867		$	4,530
Pre-tax income		553		336			889

Three Months Ended September 30, 2011
Total revenues	$	2,134	$	1,448		$	3,582
Pre-tax income (loss)		472		(126	)		346

Nine Months Ended September 30, 2012
Total revenues	$	7,306	$	5,133		$	12,439
Pre-tax income		1,714		814			2,528

Nine Months Ended September 30, 2011
Total revenues	$	6,242	$	5,075		$	11,317
Pre-tax income		1,174		905			2,079

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 September 30, 2012
Total revenues	$	218		$	235		$	506	$	857		$	412		$	(15	)	$	2,213
Pre-tax income (loss)		6			190			406		857			(566	)		(2	)		891

Three Months Ended September 30, 2011
Total revenues	$	246		$	(130	)	$	159	$	(3,246	)	$	561		$	(23	)	$	(2,433	)
Pre-tax income (loss)		(82	)		(187	)		103		(3,246	)		(523	)		(10	)		(3,945	)

Nine Months Ended September 30, 2012
Total revenues	$	642		$	405		$	1,434	$	4,717		$	925		$	(38	)	$	8,085
Pre-tax income (loss)		62			253			1,139		4,717			(2,659	)		(1	)		3,511

Nine Months Ended September 30, 2011
Total revenues	$	716		$	151		$	758	$	(743	)	$	1,030		$	(48	)	$	1,864
Pre-tax income (loss)		(68	)		(66	)		586		(743	)		(5,538	)		(26	)		(5,855	)

- 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)

-Number 131

-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

9 Months Ended

Sep. 30, 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 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 consisting 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 observability of the inputs used:





September 30, 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	$	28	$	4,380	$	–	$	–		$	–		$	4,408
Obligations of states, municipalities and political subdivisions		–		35,360		1,104		–			–			36,464
Non-U.S. governments		742		25,542		14		–			–			26,298
Corporate debt		–		148,528		1,612		–			–			150,140
RMBS		–		23,692		11,488		–			–			35,180
CMBS		–		4,469		5,013		–			–			9,482
CDO/ABS		–		3,293		4,649		–			–			7,942

Total bonds available for sale		770		245,264		23,880		–			–			269,914

Bond trading securities:
U.S. government and government sponsored entities		302		7,406		–		–			–			7,708
Obligations of states, municipalities and political subdivisions		–		81		–		–			–			81
Non-U.S. governments		–		2		–		–			–			2
Corporate debt		–		1,316		2		–			–			1,318
RMBS		–		1,101		370		–			–			1,471
CMBS		–		1,490		612		–			–			2,102
CDO/ABS		–		3,650		8,505		–			–			12,155

Total bond trading securities		302		15,046		9,489		–			–			24,837

Equity securities available for sale:
Common stock		2,781		1		40		–			–			2,822
Preferred stock		–		48		45		–			–			93
Mutual funds		86		20		–		–			–			106

Total equity securities available for sale		2,867		69		85		–			–			3,021

Equity securities trading		17		81		–		–			–			98
Mortgage and other loans receivable		–		129		1		–			–			130
Other invested assets(c)		6,257		1,706		7,070		–			–			15,033
Derivative assets:
Interest rate contracts		11		6,278		996		–			–			7,285
Foreign exchange contracts		–		53		–		–			–			53
Equity contracts		113		98		53		–			–			264
Commodity contracts		–		141		1		–			–			142
Credit contracts		–		1		59		–			–			60
Other contracts		–		11		57		–			–			68
Counterparty netting and cash collateral		–		–		–		(3,219	)		(1,197	)		(4,416	)

Total derivative assets		124		6,582		1,166		(3,219	)		(1,197	)		3,456

Short-term investments		592		6,708		–		–			–			7,300
Separate account assets		53,829		2,911		–		–			–			56,740
Other assets		–		698		–		–			–			698

Total	$	64,758	$	279,194	$	41,691	$	(3,219	)	$	(1,197	)	$	381,227

Liabilities:
Policyholder contract deposits	$	–	$	–	$	1,308	$	–		$	–		$	1,308
Derivative liabilities:
Interest rate contracts		–		6,303		243		–			–			6,546
Foreign exchange contracts		–		166		–		–			–			166
Equity contracts		2		159		10		–			–			171
Commodity contracts		–		143		–		–			–			143
Credit contracts(d)		–		–		2,349		–			–			2,349
Other contracts		–		26		250		–			–			276
Counterparty netting and cash collateral		–		–		–		(3,219	)		(2,118	)		(5,337	)

Total derivative liabilities		2		6,797		2,852		(3,219	)		(2,118	)		4,314

Other long-term debt(e)		–		8,428		407		–			–			8,835
Other liabilities		138		792		–		–			–			930

Total	$	140	$	16,017	$	4,567	$	(3,219	)	$	(2,118	)	$	15,387

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		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(d)		–		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(e)		–		10,258		508		–			–			10,766
Other liabilities		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 $1.8 billion and $177 million, respectively, at September 30, 2012 and $1.8 billion and $100 million, respectively, at December 31, 2011.

(c) Included in Level 1 are $6.1 billion and $12.4 billion at September 30, 2012 and December 31, 2011, respectively, of AIA ordinary shares publicly traded on the Hong Kong Stock Exchange.

(d) Included in Level 3 is the fair value derivative liability of $2.3 billion and $3.2 billion at September 30, 2012 and December 31, 2011, respectively, on the super senior credit default swap portfolio.

(e) Includes Guaranteed Investment Agreements (GIAs), notes, bonds, loans and mortgages payable.

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. During the three- and nine-month periods ended September 30, 2012, AIG transferred $148 million and $284 million of securities issued by Non-U.S. government entities from Level 1 to Level 2, respectively, as they are no longer considered actively traded. For similar reasons, during the three- and nine-month periods ended September 30, 2012, AIG transferred $743 million of securities issued by the U.S. government and government-sponsored entities from Level 1 to Level 2. AIG had no material transfers from Level 2 to Level 1 during the three- and nine-month periods ended September 30, 2012.

Changes in Level 3 Recurring Fair Value Measurements

The following tables present changes during the three-and nine-month periods ended September 30, 2012 and 2011 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities that remained in the Consolidated Balance Sheet at September 30, 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 September 30, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	1,013	$	16		$	–		$	102		$	25	$	(52	)	$	1,104	$	–
Non-U.S. governments		13		1			(1	)		2			–		(1	)		14		–
Corporate debt		1,306		10			35			94			233		(66	)		1,612		–
RMBS		10,488		197			1,029			(678	)		566		(114	)		11,488		–
CMBS		4,643		(17	)		271			115			1		–			5,013		–
CDO/ABS		5,074		87			82			(129	)		63		(528	)		4,649		–

Total bonds available for sale		22,537		294			1,416			(494	)		888		(761	)		23,880		–

Bond trading securities:
Corporate debt		3		–			–			(1	)		–		–			2		–
RMBS		290		40			–			(56	)		97		(1	)		370		12
CMBS		457		(3	)		–			1			157		–			612		(19	)
CDO/ABS		14,647		581			–			(6,780	)		57		–			8,505		427

Total bond trading securities		15,397		618			–			(6,836	)		311		(1	)		9,489		420

Equity securities available for sale:
Common stock		41		–			(1	)		–			–		–			40		–
Preferred stock		139		15			(12	)		(104	)		8		(1	)		45		–

Total equity securities available for sale		180		15			(13	)		(104	)		8		(1	)		85		–

Mortgage and other loans receivable		1		–			–			–			–		–			1		–
Other invested assets		7,049		22			8			(90	)		126		(45	)		7,070		–

Total	$	45,164	$	949		$	1,411		$	(7,524	)	$	1,333	$	(808	)	$	40,525	$	420

(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



Liabilities:
Policyholder contract deposits	$	(1,188	)	$	(45	)	$	(72	)	$	(3	)	$	–		$	–		$	(1,308	)	$	279
Derivative liabilities, net:
Interest rate contracts		761			(55	)		–			47			–			–			753			11
Foreign exchange contracts		–			–			–			–			–			–			–			–
Equity contracts		28			18			–			(4	)		1			–			43			–
Commodity contracts		2			4			–			(3	)		–			(2	)		1			(1	)
Credit contracts		(2,587	)		208			–			89			–			–			(2,290	)		(360	)
Other contracts		(154	)		(122	)		(6	)		73			16			–			(193	)		14

Total derivative liabilities, net		(1,950	)		53			(6	)		202			17			(2	)		(1,686	)		(336	)

Other long-term debt(b)		(407	)		(27	)		–			61			(34	)		–			(407	)		170

Total	$	(3,545	)	$	(19	)	$	(78	)	$	260		$	(17	)	$	(2	)	$	(3,401	)	$	113

Nine Months Ended September 30, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	960		$	48		$	11		$	139		$	70		$	(124	)	$	1,104		$	–
Non-U.S. governments		9			1			–			–			5			(1	)		14			–
Corporate debt		1,935			(7	)		104			96			579			(1,095	)		1,612			–
RMBS		10,877			322			1,832			32			921			(2,496	)		11,488			–
CMBS		3,955			(84	)		572			618			44			(92	)		5,013			–
CDO/ABS		4,220			127			348			(150	)		669			(565	)		4,649			–

Total bonds available for sale		21,956			407			2,867			735			2,288			(4,373	)		23,880			–

Bond trading securities:
Corporate debt		7			–			–			(5	)		–			–			2			–
RMBS		303			68			–			(94	)		97			(4	)		370			18
CMBS		554			46			–			(121	)		193			(60	)		612			45
CDO/ABS		8,432			3,646			–			(3,630	)		57			–			8,505			2,635

Total bond trading securities		9,296			3,760			–			(3,850	)		347			(64	)		9,489			2,698

Equity securities available for sale:
Common stock		57			23			(13	)		(33	)		6			–			40			–
Preferred stock		99			17			(35	)		(35	)		11			(12	)		45			–

Total equity securities available for sale		156			40			(48	)		(68	)		17			(12	)		85			–

Mortgage and other loans receivable		1			–			–			–			–			–			1			–
Other invested assets		6,618			(157	)		284			(57	)		886			(504	)		7,070			–

Total	$	38,027		$	4,050		$	3,103		$	(3,240	)	$	3,538		$	(4,953	)	$	40,525		$	2,698

Liabilities:
Policyholder contract deposits	$	(918	)	$	(314	)	$	(72	)	$	(4	)	$	–		$	–		$	(1,308	)	$	135
Derivative liabilities, net:
Interest rate contracts		785			(9	)		–			(23	)		–			–			753			(37	)
Foreign exchange contracts		2			–			–			(2	)		–			–			–			–
Equity contracts		28			7			–			9			(1	)		–			43			–
Commodity contracts		2			4			–			(5	)		–			–			1			–
Credit contracts		(3,273	)		409			–			574			–			–			(2,290	)		(880	)
Other contracts		33			(110	)		(4	)		(5	)		(107	)		–			(193	)		53

Total derivative liabilities, net		(2,423	)		301			(4	)		548			(108	)		–			(1,686	)		(864	)

Other long-term debt(b)		(508	)		(405	)		(77	)		197			(34	)		420			(407	)		224

Total	$	(3,849	)	$	(418	)	$	(153	)	$	741		$	(142	)	$	420		$	(3,401	)	$	(505	)

(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 September 30, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	800		$	1		$	83		$	74		$	–	$	(50	)	$	908		$	–
Non-U.S. governments		5			–			(1	)		1			–		–			5			–
Corporate debt		1,844			13			(21	)		(56	)		1,170		(475	)		2,475			–
RMBS		10,692			(83	)		29			(437	)		254		(47	)		10,408			–
CMBS		4,228			(46	)		(293	)		134			16		(64	)		3,975			–
CDO/ABS		3,925			12			(131	)		220			329		(238	)		4,117			–

Total bonds available for sale		21,494			(103	)		(334	)		(64	)		1,769		(874	)		21,888			–

Bond trading securities:
Corporate debt		9			–			–			(1	)		–		–			8			–
RMBS		170			(5	)		(1	)		168			–		–			332			(20	)
CMBS		483			(31	)		(4	)		(16	)		115		–			547			2
CDO/ABS		9,503			(993	)		(9	)		(131	)		48		(24	)		8,394			(1,340	)

Total bond trading securities		10,165			(1,029	)		(14	)		20			163		(24	)		9,281			(1,358	)

Equity securities available for sale:
Common stock		59			9			(9	)		(11	)		10		(2	)		56			–
Preferred stock		64			2			2			–			2		–			70			–

Total equity securities available for sale		123			11			(7	)		(11	)		12		(2	)		126			–

Equity securities trading		1			(1	)		–			–			–		–			–			–
Other invested assets		7,045			(27	)		42			(54	)		205		(27	)		7,184			–

Total	$	38,828		$	(1,149	)	$	(313	)	$	(109	)	$	2,149	$	(927	)	$	38,479		$	(1,358	)

Liabilities:
Policyholder contract deposits	$	(406	)	$	(928	)	$	–		$	(28	)	$	–	$	–		$	(1,362	)	$	950
Derivative liabilities, net:
Interest rate contracts		754			47			–			9			–		(21	)		789			(61	)
Foreign exchange contracts		4			1			–			(5	)		–		–			–			–
Equity contracts		34			(10	)		–			–			–		–			24			(7	)
Commodity contracts		5			(1	)		–			(1	)		–		–			3			(1	)
Credit contracts		(3,332	)		(25	)		–			(5	)		–		–			(3,362	)		398
Other contracts		(69	)		32			(32	)		9			–		99			39			(121	)

Total derivatives liabilities, net		(2,604	)		44			(32	)		7			–		78			(2,507	)		208

Other long-term debt(b)		(958	)		183			–			(14	)		–		–			(789	)		349

Total	$	(3,968	)	$	(701	)	$	(32	)	$	(35	)	$	–	$	78		$	(4,658	)	$	1,507

(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



Nine Months Ended September 30, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	609		$	–		$	110		$	248		$	17		$	(76	)	$	908		$	–
Non-U.S. governments		5			–			(1	)		1			–			–			5			–
Corporate debt		2,262			10			1			216			1,703			(1,717	)		2,475			–
RMBS		6,367			(85	)		397			3,506			276			(53	)		10,408			–
CMBS		3,604			(80	)		262			206			69			(86	)		3,975			–
CDO/ABS		4,241			44			181			(617	)		775			(507	)		4,117			–

Total bonds available for sale		17,088			(111	)		950			3,560			2,840			(2,439	)		21,888			–

Bond trading securities:
Corporate debt		–			–			–			(10	)		18			–			8			–
RMBS		91			(5	)		(8	)		254			–			–			332			(15	)
CMBS		506			35			(1	)		(92	)		276			(177	)		547			31
CDO/ABS		9,431			(840	)		–			(221	)		48			(24	)		8,394			(770	)

Total bond trading securities		10,028			(810	)		(9	)		(69	)		342			(201	)		9,281			(754	)

Equity securities available for sale:
Common stock		61			27			(5	)		(38	)		18			(7	)		56			–
Preferred stock		64			(1	)		3			–			4			–			70			–

Total equity securities available for sale		125			26			(2	)		(38	)		22			(7	)		126			–

Equity securities trading		1			–			–			(1	)		–			–			–			–
Other invested assets		7,414			9			511			(565	)		250			(435	)		7,184			–

Total	$	34,656		$	(886	)	$	1,450		$	2,887		$	3,454		$	(3,082	)	$	38,479		$	(754	)

Liabilities:
Policyholder contract deposits	$	(445	)	$	(882	)	$	–		$	(35	)	$	–		$	–		$	(1,362	)	$	887
Derivative liabilities, net:
Interest rate contracts		732			69			–			9			–			(21	)		789			(55	)
Foreign exchange contracts		16			(11	)		–			(5	)		–			–			–			–
Equity contracts		22			(17	)		–			38			(7	)		(12	)		24			(14	)
Commodity contracts		23			1			–			(21	)		–			–			3			(1	)
Credit contracts		(3,798	)		451			–			(15	)		–			–			(3,362	)		446
Other contracts		(112	)		9			(58	)		49			–			151			39			(87	)

Total derivatives liabilities, net		(3,117	)		502			(58	)		55			(7	)		118			(2,507	)		289

Other long-term debt(b)		(982	)		(28	)		–			242			(21	)		–			(789	)		(31	)

Total	$	(4,544	)	$	(408	)	$	(58	)	$	262		$	(28	)	$	118		$	(4,658	)	$	1,145

(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 September 30, 2012
Bonds available for sale	$	218		$	51		$	25		$	294
Bond trading securities		491			–			127			618
Equity securities		–			15			–			15
Other invested assets		6			(16	)		32			22
Policyholder contract deposits		–			(45	)		–			(45	)
Derivative liabilities, net		–			(39	)		92			53
Other long-term debt		–			–			(27	)		(27	)

Three Months Ended September 30, 2011
Bonds available for sale	$	193		$	(300	)	$	4		$	(103	)
Bond trading securities		(1,333	)		4			300			(1,029	)
Equity securities		(1	)		11			–			10
Other invested assets		(13	)		(29	)		15			(27	)
Policyholder contract deposits		–			(928	)		–			(928	)
Derivative liabilities, net		1			54			(11	)		44
Other long-term debt		–			–			183			183

Nine Months Ended September 30, 2012
Bonds available for sale	$	683		$	(333	)	$	57		$	407
Bond trading securities		3,330			–			430			3,760
Equity securities		–			40			–			40
Other invested assets		(3	)		(189	)		35			(157	)
Policyholder contract deposits		–			(314	)		–			(314	)
Derivative liabilities, net		(1	)		22			280			301
Other long-term debt		–			–			(405	)		(405	)

Nine Months Ended September 30, 2011
Bonds available for sale	$	433		$	(556	)	$	12		$	(111	)
Bond trading securities		(828	)		4			14			(810	)
Equity securities		–			26			–			26
Other invested assets		31			(81	)		59			9
Policyholder contract deposits		–			(882	)		–			(882	)
Derivative liabilities, net		2			7			493			502
Other long-term debt		–			–			(28	)		(28	)

The following tables present 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 September 30, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	189		$	(53	)	$	(34	)	$	102
Non-U.S. governments		3			–			(1	)		2
Corporate debt		139			(6	)		(39	)		94
RMBS		198			(360	)		(516	)		(678	)
CMBS		299			(127	)		(57	)		115
CDO/ABS		210			–			(339	)		(129	)

Total bonds available for sale		1,038			(546	)		(986	)		(494	)

Bond trading securities:
Corporate debt		–			–			(1	)		(1	)
RMBS		–			(45	)		(11	)		(56	)
CMBS		11			–			(10	)		1
CDO/ABS(b)		2,191			(6	)		(8,965	)		(6,780	)

Total bond trading securities		2,202			(51	)		(8,987	)		(6,836	)

Equity securities		–			(22	)		(82	)		(104	)
Other invested assets		129			(30	)		(189	)		(90	)

Total assets	$	3,369		$	(649	)	$	(10,244	)	$	(7,524	)

Liabilities:
Policyholder contract deposits	$	–		$	(6	)	$	3		$	(3	)
Derivative liabilities, net		6			–			196			202
Other long-term debt(c)		–			–			61			61

Total liabilities	$	6		$	(6	)	$	260		$	260

Three Months Ended September 30, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	78		$	–		$	(4	)	$	74
Non-U.S. governments		–			–			1			1
Corporate debt		58			(27	)		(87	)		(56	)
RMBS		(11	)		–			(426	)		(437	)
CMBS		178			–			(44	)		134
CDO/ABS		405			–			(185	)		220

Total bonds available for sale		708			(27	)		(745	)		(64	)

Bond trading securities:
Corporate debt		–			–			(1	)		(1	)
RMBS		197			–			(29	)		168
CMBS		79			(90	)		(5	)		(16	)
CDO/ABS		101			(93	)		(139	)		(131	)

Total bond trading securities		377			(183	)		(174	)		20

Equity securities		–			(8	)		(3	)		(11	)
Other invested assets		156			(59	)		(151	)		(54	)

Total assets	$	1,241		$	(277	)	$	(1,073	)	$	(109	)

Liabilities:
Policyholder contract deposits	$	–		$	(32	)	$	4		$	(28	)
Derivative liabilities, net		1			–			6			7
Other long-term debt(c)		–			–			(14	)		(14	)

Total liabilities	$	1		$	(32	)	$	(4	)	$	(35	)

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


Nine Months Ended September 30, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	394	$	(219	)	$	(36	)	$	139
Non-U.S. governments		4		(3	)		(1	)		–
Corporate debt		280		(59	)		(125	)		96
RMBS		2,308		(722	)		(1,554	)		32
CMBS		1,021		(260	)		(143	)		618
CDO/ABS		730		(4	)		(876	)		(150	)

Total bonds available for sale		4,737		(1,267	)		(2,735	)		735

Bond trading securities:
Corporate debt		–		–			(5	)		(5	)
RMBS		–		(45	)		(49	)		(94	)
CMBS		194		(106	)		(209	)		(121	)
CDO/ABS(b)		7,216		(6	)		(10,840	)		(3,630	)

Total bond trading securities		7,410		(157	)		(11,103	)		(3,850	)

Equity securities		67		(55	)		(80	)		(68	)
Other invested assets		529		(63	)		(523	)		(57	)

Total assets	$	12,743	$	(1,542	)	$	(14,441	)	$	(3,240	)

Liabilities:
Policyholder contract deposits	$	–	$	(20	)	$	16		$	(4	)
Derivative liabilities, net		8		–			540			548
Other long-term debt(c)		–		–			197			197

Total liabilities	$	8	$	(20	)	$	753		$	741

Nine Months Ended September 30, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	254	$	–		$	(6	)	$	248
Non-U.S. governments		1		(1	)		1			1
Corporate debt		478		(27	)		(235	)		216
RMBS		4,613		(22	)		(1,085	)		3,506
CMBS		419		(20	)		(193	)		206
CDO/ABS		666		–			(1,283	)		(617	)

Total bonds available for sale		6,431		(70	)		(2,801	)		3,560

Bond trading securities:
Corporate debt		–		–			(10	)		(10	)
RMBS		300		–			(46	)		254
CMBS		139		(144	)		(87	)		(92	)
CDO/ABS		245		(219	)		(247	)		(221	)

Total bond trading securities		684		(363	)		(390	)		(69	)

Equity securities		–		(31	)		(8	)		(39	)
Other invested assets		506		(217	)		(854	)		(565	)

Total assets	$	7,621	$	(681	)	$	(4,053	)	$	2,887

Liabilities:
Policyholder contract deposits	$	–	$	(51	)	$	16		$	(35	)
Derivative liabilities, net		40		–			15			55
Other long-term debt(c)		–		–			242			242

Total liabilities	$	40	$	(51	)	$	273		$	262

(a) There were no issuances during the three- and nine-month periods ended September 30, 2012 and 2011.

(b) Includes securities with a fair value of approximately $7.1 billion purchased through the FRBNY's auction of Maiden Lane III LLC (ML III) assets.

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 September 30, 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 $80 million of net losses and $127 million of net gains related to assets and liabilities transferred into Level 3 during the three- and nine-month periods ended September 30, 2012, respectively, and includes $29 million and $83 million of net gains related to assets and liabilities transferred out of Level 3 during the three- and nine-month periods ended September 30, 2012, respectively.

Transfers of Level 3 Assets

During the three- and nine-month periods ended September 30, 2012, transfers into Level 3 included certain residential mortgage-backed securities (RMBS), commercial mortgage backed securities (CMBS), 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 and CMBS 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 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- and nine-month periods ended September 30, 2012, transfers out of Level 3 primarily related to certain RMBS, ABS, investments in private placement corporate debt and private equity funds and hedge funds. Transfers out of Level 3 for certain RMBS were based on consideration of the market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers out of Level 3 for ABS and private placement corporate debt were primarily the result of AIG using observable pricing information that 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. The removal of fund-imposed redemption restrictions, as well as a fund investment no longer being carried at fair value, resulted in the transfer of hedge funds and private equity funds out of Level 3.

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 for the three- and nine-month periods ended September 30, 2012, primarily related to certain derivative assets transferred out of Level 3 because of the presence of observable inputs on certain forward commitments and options. During the three- and nine-month periods ended September 30, 2012, certain notes payable were transferred out of Level 3 because input parameters for the pricing of these liabilities became more observable as a result of market movements and portfolio aging. There were no significant transfers of derivative liabilities 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 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 measured at fair value on a non-recurring basis at the time of impairment and the related impairment charges recorded during the periods presented:

	Assets at Fair Value								Impairment Charges



	Non-Recurring Basis								Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	Level 1		Level 2		Level 3		Total		2012		2011		2012		2011

September 30, 2012
Investment real estate	$	–	$	–	$	311	$	311	$	–	$	–	$	–	$	15
Other investments		–		–		1,534		1,534		97		181		273		526
Aircraft*		–		–		324		324		98		1,518		227		1,676
Other assets		–		1		18		19		–		–		9		–

Total	$	–	$	1	$	2,187	$	2,188	$	195	$	1,699	$	509	$	2,217

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 where appropriate.

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 input information with respect to certain Level 3 instruments may not be 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 September 30, 2012		Valuation Technique	Unobservable Input^(a)	Range (Weighted Average)^(a)

Assets:
Corporate debt	$	826	Discounted cash flow	Yield(b)	1.85% - 8.95% (5.40%)
Residential mortgage backed securities		10,867	Discounted cash flow	Constant prepayment rate(c)	0.00% - 10.58% (4.99%)
				Loss severity(c)	40.07% - 78.97% (59.52%)
				Constant default rate(c)	3.61% - 13.01% (8.31%)
				Yield(c)	2.69% - 9.53% (6.11%)
Certain CDO/ABS		1,866	Discounted cash flow	Constant prepayment rate(c)	0.00% - 39.55% (12.87%)
				Loss severity(c)	0.00% - 9.20% (0.78%)
				Constant default rate(c)	0.00% - 1.19% (0.13%)
				Yield(c)	0.84% - 4.85% (2.85%)
Commercial mortgage backed securities		3,051	Discounted cash flow	Yield(b)	0.00% - 27.34% (10.14%)
CDO/ABS – Direct			Binomial Expansion	Recovery rate(b)	3% - 65%
Investment Book		1,290	Technique (BET)	Diversity score(b)	4 - 37 (14)
				Weighted average life(b)	1.12 - 9.17 years (4.57 years)

Liabilities:
Policyholder contract deposits – GMWB		1,005	Discounted cash flow	Equity implied volatility(b)	6.0% - 40.0%
				Base lapse rates(b)	1.00% - 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		1,600	BET	Recovery rates(b)	3% - 36% (16%)
				Diversity score(b)	8 - 31 (13)
				Weighted average life(b)	5.02 - 8.40 years (6.08 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 collateralized debt obligation (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.

The ranges of reported inputs for Corporate debt, RMBS, CDO/ABS, and commercial mortgage-backed securities (CMBS) valued using a discounted cash flow technique consist of plus/minus 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 following is a general description of sensitivities of significant unobservable inputs along with interrelationships between and among the significant unobservable inputs and their impact on the fair value measurements. 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 below. Interrelationships may also exist between observable and unobservable inputs. Such relationships have not been included in the discussion below. For each of the individual relationships described below, the inverse relationship would also generally apply.

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), loss severity, and yield. 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. In general, increases in yield, CPR, CDR, and loss severity, in isolation, would result in a decrease in the fair value measurement. 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. In general, increases in the yield would decrease the fair value of CMBS.

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. Mortality, lapse and utilization rates may vary significantly depending upon age groups and duration. 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 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.




		September 30, 2012				December 31, 2011
(in millions)	Investment Category Includes	Fair Value Using Net Asset Value or its equivalent		Unfunded Commitments		Fair Value Using Net Asset Value or its equivalent		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	$	3,223	$	821	$	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		173		31		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		309		32		316		39
Distressed	Securities of companies that are already in default, under bankruptcy protection, or troubled		172		37		182		42
Other	Real estate, energy, multi-strategy, mezzanine, and industry-focused strategies		364		145		252		98

Total private equity funds			4,241		1,066		4,100		1,181

Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		894		2		774		2
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,139		–		927		–
Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		248		–		173		–
Distressed	Securities of companies that are already in default, under bankruptcy protection or troubled		367		–		272		10
Other	Non-U.S. companies, futures and commodities, relative value, and multi-strategy and industry-focused strategies		604		–		627		–

Total hedge funds			3,252		2		2,773		12

Total		$	7,493	$	1,068	$	6,873	$	1,193

Private equity fund investments included above are not redeemable, as distributions from the funds will be received when underlying investments of the funds are liquidated. Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager's discretion, typically in one or two year increments. At September 30, 2012, assuming average original expected lives of 10 years for the funds, 42 percent of the total fair value using net asset value or its equivalent above would have expected remaining lives of less than three years, 56 percent between three and seven years and 2 percent between seven and 10 years.

At September 30, 2012, hedge fund investments included above are redeemable monthly (11 percent), quarterly (31 percent), semi-annually (24 percent) and annually (34 percent), with redemption notices ranging from one day to 180 days. More than 60 percent of these hedge fund investments require redemption notices of less than 90 days. Investments representing approximately 54 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:




	Gain (Loss) Three Months Ended September 30,						Gain (Loss) Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

Assets:
Mortgage and other loans receivable	$	10		$	(3	)	$	41		$	(2	)
Bonds and equity securities		875			(138	)		1,782			1,299
Trading – ML II interest		–			(43	)		246			32
Trading – ML III interest		330			(931	)		2,888			(854	)
Retained interest in AIA		527			(2,315	)		1,829			268
Other, including Short-term investments		14			12			27			40

Liabilities:
Other long-term debt^(a)		(86	)		(265	)		(750	)		(821	)
Other liabilities		(9	)		84			(31	)		(91	)

Total gain (loss)^(b)	$	1,661		$	(3,599	)	$	6,032		$	(129	)

(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. For instruments required to be carried at fair value, AIG recognized gains of $110 million and $664 million for the three and nine months ended September 30, 2012, respectively, and losses of $102 million and gains of $819 million for the three and nine months ended September 30, 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 for additional information about AIG's policies for recognition, measurement, and disclosure of interest and dividend income and interest expense.

AIG recognized gains (losses) attributable to the observable effect of changes in credit spreads on AIG's own liabilities for which the fair value option was elected of $126 million of loss and $621 million of loss during the three-and nine-month periods ended September 30, 2012, respectively, and gain of $459 million and $475 million during the three- and nine-month periods ended September 30, 2011, respectively. 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:




	September 30, 2012							December 31, 2011
(in millions)	Fair Value		Outstanding Principal Amount		Difference			Fair Value		Outstanding Principal Amount		Difference

Assets:
Mortgage and other loans receivable	$	130	$	140	$	(10	)	$	107	$	150	$	(43	)
Liabilities:
Other long-term debt^*	$	8,835	$	6,483	$	2,352		$	10,766	$	8,624	$	2,142

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

At September 30, 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.

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. On September 11, 2012, AIG sold approximately 600 million ordinary shares of AIA for gross proceeds of approximately $2.0 billion. As a result of these sales, AIG's retained interest in AIA decreased from approximately 33 percent with a total carrying value of $12.4 billion at December 31, 2011 to approximately 14 percent with a total carrying value of $6.1 billion at September 30, 2012.

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

September 30, 2012
Assets:
Mortgage and other loans receivable	$	–	$	549	$	20,099	$	20,648	$	19,200
Other invested assets		–		209		3,451		3,660		4,947
Short-term investments		–		15,257		–		15,257		15,257
Cash		1,608		–		–		1,608		1,608
Liabilities:
Policyholder contract deposits associated with investment-type contracts		–		138		126,671		126,809		107,119
Other liabilities		–		1,843		831		2,674		2,676
Long-term debt		18,229		50,605		1,792		70,626		64,913

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
Other liabilities								896		896
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.

+ References

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-Name Statement of Financial Accounting Standard (FAS)

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+ Details

INVESTMENTS

9 Months Ended

Sep. 30, 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)



September 30, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	4,049	$	359	$	–		$	4,408	$	–
Obligations of states, municipalities and political subdivisions		33,716		2,799		(51	)		36,464		(23	)
Non-U.S. governments		24,900		1,441		(43	)		26,298		–
Corporate debt		134,977		15,755		(592	)		150,140		125
Mortgage-backed, asset-backed and collateralized:
RMBS		32,343		3,231		(394	)		35,180		1,109
CMBS		9,258		738		(514	)		9,482		(112	)
CDO/ABS		7,447		737		(242	)		7,942		90

Total mortgage-backed, asset-backed and collateralized		49,048		4,706		(1,150	)		52,604		1,087

Total bonds available for sale(b)		246,690		25,060		(1,836	)		269,914		1,189

Equity securities available for sale:
Common stock		1,517		1,355		(50	)		2,822		–
Preferred stock		65		28		–			93		–
Mutual funds		94		12		–			106		–

Total equity securities available for sale		1,676		1,395		(50	)		3,021		–

Other invested assets carried at fair value(c)		6,491		1,756		(25	)		8,222		–

Total	$	254,857	$	28,211	$	(1,911	)	$	281,157	$	1,189

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 September 30, 2012 and December 31, 2011, bonds available for sale held by AIG that were below investment grade or not rated totaled $28.9 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.

Securities Available for Sale in a Loss Position

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

September 30, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	68	$	–	$	–	$	–	$	68	$	–
Obligations of states, municipalities and political subdivisions		457		30		197		21		654		51
Non-U.S. governments		1,067		14		512		29		1,579		43
Corporate debt		6,383		168		5,121		424		11,504		592
RMBS		659		14		2,012		380		2,671		394
CMBS		193		28		1,786		486		1,979		514
CDO/ABS		143		3		1,779		239		1,922		242

Total bonds available for sale		8,970		257		11,407		1,579		20,377		1,836

Equity securities available for sale:
Common stock		313		45		37		5		350		50
Preferred stock		–		–		–		–		–		–
Mutual funds		4		–		1		–		5		–

Total equity securities available for sale		317		45		38		5		355		50

Total	$	9,287	$	302	$	11,445	$	1,584	$	20,732	$	1,886

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 September 30, 2012, AIG held 3,444 and 254 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 1,679 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 September 30, 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


September 30, 2012 (in millions)	Total Fixed Maturity Available for Sale Securities				Fixed Maturity Securities in a Loss Position
September 30, 2012 (in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in one year or less	$	11,080	$	11,289	$	837	$	830
Due after one year through five years		54,288		57,505		4,143		4,009
Due after five years through ten years		70,835		78,191		4,058		3,845
Due after ten years		61,439		70,325		5,453		5,121
Mortgage-backed, asset-backed and collateralized		49,048		52,604		7,722		6,572

Total	$	246,690	$	269,914	$	22,213	$	20,377

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:




	Three Months Ended September 30,								Nine Months Ended September 30,
	2012				2011				2012				2011
(in millions)	Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses

Fixed maturity securities	$	943	$	82	$	612	$	11	$	2,308	$	121	$	1,462	$	104
Equity securities		38		22		30		10		503		26		178		18

Total	$	981	$	104	$	642	$	21	$	2,811	$	147	$	1,640	$	122

For the three- and nine-month periods ended September 30, 2012, the aggregate fair value of available for sale securities sold was $8.8 billion and $30.3 billion, respectively, which resulted in net realized capital gains of $0.9 billion, and $2.7 billion, respectively. For the three- and nine-month periods ended September 30, 2011, the aggregate fair value of available for sale securities sold was $9.0 billion and $33.1 billion, respectively, which resulted in net realized capital gains of $621 million and $1.5 billion, respectively.

Trading Securities

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




	September 30, 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	$	7,708		31	%	$	7,504		31	%
Non-U.S. governments		2		–			35		–
Corporate debt		1,318		5			816		3
State, territories and political subdivisions		81		–			257		1
Mortgage-backed, asset-backed and collateralized:
RMBS		1,471		6			1,648		7
CMBS		2,102		9			1,837		7
CDO/ABS and other collateralized^*		12,147		49			5,282		22

Total mortgage-backed, asset-backed and collateralized		15,720		64			8,767		36
ML II		–		–			1,321		5
ML III		8		–			5,664		23

Total fixed maturities		24,837		100			24,364		99

Equity securities		98		–			125		1

Total	$	24,935		100	%	$	24,489		100	%

* Includes securities with a fair value of approximately $7.1 billion purchased through the FRBNY's auction of ML III assets.

Maiden Lane III

The FRBNY completed the liquidation of ML III assets during the third quarter of 2012 and substantially all of the sales proceeds have been distributed in accordance with the priority of payments of the transaction. In the three-and nine-month periods ended September 30, 2012, AIG received total payments of approximately $8.47 billion and $8.54 billion, respectively, which included contractual and additional distributions and AIG's original $5.0 billion equity interest in ML III.

Through the nine months ended September 30, 2012, AIG purchased securities with a fair value of approximately $7.1 billion through the FRBNY's auction of ML III assets.

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.

Credit Impairments

The following table presents a rollforward of the cumulative credit loss component of other-than-temporary 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 September 30,						Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

Balance, beginning of period	$	6,090		$	6,396		$	6,504		$	6,786
Increases due to:
Credit impairments on new securities subject to impairment losses		–			169			172			254
Additional credit impairments on previously impaired securities		45			222			421			457
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell		(297	)		(133	)		(815	)		(458	)
Credit impaired securities for which there is a current intent or anticipated requirement to sell		(5	)		–			(5	)		–
Accretion on securities previously impaired due to credit^*		(215	)		(148	)		(668	)		(355	)
Hybrid securities with embedded credit derivatives reclassified to Bond trading securities		–			–			–			(179	)
Other		(3	)		–			6			1

Balance, end of period	$	5,615		$	6,506		$	5,615		$	6,506

* 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

In the second quarter of 2011, AIG began purchasing 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 for these PCI securities, including both principal and interest and considering the effects of prepayments. 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. 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. 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. Significant increases in undiscounted expected future cash flows for reasons other than interest rate changes are recognized prospectively as adjustments 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)	$	18,315
Cash flows expected to be collected^*		14,286
Recorded investment in acquired securities		9,128

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




(in millions)	September 30, 2012		December 31, 2011

Outstanding principal balance	$	11,957	$	10,119
Amortized cost		7,743		7,006
Fair value		8,734		6,535

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




	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

Balance, beginning of period	$	4,950		$	2,276		$	4,135		$	–
Newly purchased PCI securities		114			306			1,532			2,688
Disposals		(130	)		–			(298	)		–
Accretion		(165	)		(119	)		(510	)		(194	)
Effect of changes in interest rate indices		(39	)		(46	)		(200	)		(54	)
Net reclassification (to) from non-accretable difference, including effects of prepayments		53			(93	)		124			(116	)

Balance, end of period	$	4,783		$	2,324		$	4,783		$	2,324

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. 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 $6.3 billion and $2.3 billion at September 30, 2012 and December 31, 2011, respectively, and trading securities with a fair value of $2.4 billion and $2.8 billion at September 30, 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. Effective January 1, 2012, the level of collateral received by the transferor in a repurchase agreement or similar arrangement is no longer relevant in determining whether the transaction should be accounted for as a sale. There were no repurchase agreements accounted for as sales as of September 30, 2012. The fair value of securities transferred under repurchase agreements accounted for as sales was $ 2.1 billion at December 31, 2011.

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 $7.5 billion and $6.8 billion at September 30, 2012 and December 31, 2011, respectively, of which $1.7 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 September 30, 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 an aggregate of $84 million and $77 million of stock in FHLBs at September 30, 2012 and December 31, 2011, respectively. To the extent an AIG subsidiary borrows from the FHLB, its ownership interest in the stock of FHLBs will be pledged to the FHLB. In addition, AIG subsidiaries have pledged securities available for sale with a fair value of $95 million at September 30, 2012, associated with advances from the FHLBs.

Certain GIAs have provisions that require collateral to be posted or payments to be made by AIG upon a downgrade of AIG's 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 securities pledged as collateral with respect to these obligations approximated $4.7 billion and $5.1 billion at September 30, 2012 and December 31, 2011, respectively. This collateral primarily consists of securities of the U.S. government and government sponsored entities and generally cannot be repledged or resold by the counterparties.

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 320

-Glossary Debt Security

-URI http://asc.fasb.org/extlink&oid=6509901

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 310

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

-Publisher FASB

-Name Accounting Standards Codification

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

-Publisher FASB

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

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

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-Topic 320

-Glossary Equity Security

-URI http://asc.fasb.org/extlink&oid=6511694

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 115

-Paragraph 3, 19, 20, 21, 22, 137

-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

LENDING ACTIVITIES

9 Months Ended

Sep. 30, 2012

LENDING ACTIVITIES

LENDING ACTIVITIES

6. LENDING ACTIVITIES

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




(in millions)	September 30, 2012			December 31, 2011

Commercial mortgages^*	$	13,679		$	13,554
Life insurance policy loans		2,962			3,049
Commercial loans, other loans and notes receivable		3,177			3,626

Total mortgage and other loans receivable		19,818			20,229
Allowance for losses		(488	)		(740	)

Mortgage and other loans receivable, net	$	19,330		$	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 (aggregating approximately 23 percent and 15 percent at September 30, 2012 and December 31, 2011, respectively). Over 99 percent of the commercial mortgages were current as to payments of principal and interest at September 30, 2012 and December 31, 2011.

The following table presents the credit quality indicators for commercial mortgages:

September 30, 2012 (dollars in millions)	Number of Loans		Class														Percent of Total $


September 30, 2012 (dollars in millions)	Number of Loans		Apartments		Offices		Retail		Industrial		Hotel		Others		Total		Percent of Total $

Credit Quality Indicator:
In good standing		1,000	$	1,582	$	4,808	$	2,577	$	1,795	$	1,064	$	1,383	$	13,209		97	%
Restructured(a)		8		49		206		7		8		–		22		292		2
90 days or less delinquent		2		–		–		26		–		–		–		26		–
90 days delinquent or in process of foreclosure		15		–		64		1		–		–		87		152		1

Total(b)		1,025	$	1,631	$	5,078	$	2,611	$	1,803	$	1,064	$	1,492	$	13,679		100	%

Valuation allowance			$	5	$	99	$	17	$	28	$	1	$	43	$	193		1	%

(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. For additional discussion of troubled debt restructurings see Note 8 to the Consolidated Financial Statements in the 2011 Annual Report.

(b) Does not reflect valuation allowances.

Allowance for Credit Losses

See Note 8 to the Consolidated Financial Statements in the 2011 Annual Report for a discussion of AIG's accounting policy for evaluating mortgage and other loans receivable for impairment.




	2012									2011
Nine Months Ended September 30, (in millions)	2012									2011
Nine Months Ended September 30, (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		(12	)		(164	)		(176	)		(40	)		(46	)		(86	)
Recoveries of loans previously charged off		6			–			6			36			–			36

Net charge-offs		(6	)		(164	)		(170	)		(4	)		(46	)		(50	)
Provision for loan losses		(106	)		31			(75	)		(62	)		50			(12	)
Other		–			(7	)		(7	)		(55	)		–			(55	)

Allowance, end of period	$	193	^*	$	295		$	488		$	349	*	$	412		$	761

* Of the total, $38 million and $105 million relates to individually assessed credit losses on $332 million and $570 million of commercial mortgage loans as of September 30, 2012 and 2011, respectively.

As of September 30, 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 entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References

+ Details

VARIABLE INTEREST ENTITIES

9 Months Ended

Sep. 30, 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. AIG's exposure is generally limited to those interests held. 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 commitments to real estate and investment funds, was $0.3 billion and $0.4 billion at September 30, 2012 and December 31, 2011, respectively.

The following table presents AIG's total assets and total liabilities associated with its variable interests in consolidated VIEs:




	VIE Assets^(a)					VIE Liabilities
(in billions)	September 30, 2012			December 31, 2011		September 30, 2012		December 31, 2011

AIA/ALICO SPVs	$	0.6	^(b)	$	14.2	$	0.1	$	0.1
Real estate and investment funds(c)		1.1			1.5		0.3		0.4
Structured investment vehicles		1.6			1.0		0.1		–
Affordable housing partnerships		2.3			2.5		.2		0.1
Other		3.3			3.6		1.0		2.0

Total	$	8.9		$	22.8	$	1.7	$	2.6

(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 preferred interests held by the Department of the Treasury in the special purpose vehicle that held the proceeds of the initial public offering of AIA (such SPV, the AIA SPV and such preferred interests, the AIA SPV Preferred Interests). As a result, the AIA SPV no longer qualified as a VIE. Assets include $600 million of cash held in escrow pursuant to the terms of the American Life Insurance Company (ALICO) stock purchase agreement between AIG and MetLife, Inc. (MetLife). See Note 9 herein for further discussion of the escrow arrangement.

(c) At both September 30, 2012 and December 31, 2011, off-balance sheet exposure with respect to real estate and investments funds was $0.1 billion.

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

September 30, 2012
Real estate and investment funds	$	14.3	$	1.8	$	0.2	$	2.0
Affordable housing partnerships		0.5		0.5		–		0.5
Other		1.1		0.1		–		0.1

Total	$	15.9	$	2.4	$	0.2	$	2.6

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)	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011

Assets:
Available for sale securities	$	0.5	$	0.4	$	–	$	–
Trading securities		1.0		1.3		0.1		7.1
Mortgage and other loans receivable		0.5		0.5		–		–
Other invested assets*		4.3		17.2		2.3		2.6
Other asset accounts		2.6		3.4		–		–

Total	$	8.9	$	22.8	$	2.4	$	9.7

Liabilities:
Other long-term debt	$	0.9	$	1.7	$	–	$	–
Other liability accounts		0.8		0.9		–		–

Total	$	1.7	$	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 the 2011 Annual Report.

DERIVATIVES AND HEDGE ACCOUNTING

9 Months Ended

Sep. 30, 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. AIGFP had also transacted in derivatives as a dealer and had acted as an intermediary between the relevant AIG subsidiary and the counterparty. AIG Markets, Inc. (AIG Markets) has largely replaced AIGFP in acting as an intermediary between AIG subsidiaries and the external counterparties. Global Capital Markets (GCM), included in AIG's Other operations, consists of the operations of AIG Markets and the remaining derivatives portfolio of AIGFP.

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




	September 30, 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)	$	–	$	–	$	366	$	24	$	–	$	–	$	481	$	38
Foreign exchange contracts		–		–		–		–		–		–		180		1
Derivatives not designated as hedging instruments:
Interest rate contracts(b)		66,896		7,285		68,939		6,522		72,660		8,286		73,248		6,870
Foreign exchange contracts		5,080		53		2,969		166		3,278		145		3,399		178
Equity contracts(c)		5,546		264		22,714		1,479		4,748		263		18,911		1,126
Commodity contracts		633		142		626		143		691		136		861		146
Credit contracts		167		60		17,618		2,349		407		89		25,857		3,366
Other contracts(d)		19,092		68		1,610		276		24,305		741		2,125		372

Total derivatives not designated as hedging instruments		97,414		7,872		114,476		10,935		106,089		9,660		124,401		12,058

Total derivatives	$	97,414	$	7,872	$	114,842	$	10,959	$	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 $22 billion and $1.3 billion, respectively, at September 30, 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:




	September 30, 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

Global Capital Markets derivatives	$	87,274	$	6,827		$	85,934	$	8,428		$	94,036	$	8,472		$	98,442	$	10,021
All other derivatives(a)		10,140		1,045			28,908		2,531			12,053		1,188			26,620		2,076

Total derivatives, gross	$	97,414		7,872		$	114,842		10,959		$	106,089		9,660		$	125,062		12,097

Counterparty netting(b)				(3,219	)				(3,219	)				(3,660	)				(3,660	)
Cash collateral(c)				(1,197	)				(2,118	)				(1,501	)				(2,786	)

Total derivatives, net				3,456					5,622					4,499					5,651

Less: Bifurcated embedded derivatives				–					1,308					–					918

Total derivatives on consolidated balance sheet			$	3,456				$	4,314				$	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.

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 $4.6 billion and $4.7 billion at September 30, 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 $1.5 billion and $1.6 billion at September 30, 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 GCM 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- and nine-month periods ended September 30, 2012, AIG recognized losses of $70 million and $13 million, respectively, and for the three- and nine-month periods ended September 30, 2011, AIG recognized losses of $1 million and $36 million, respectively, included in Foreign currency translation adjustment in Accumulated other comprehensive income related to the net investment hedge relationships.

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 September 30,				Nine Months Ended September 30,
(in millions)	2012		2011		2012			2011

Interest rate contracts(a):
Loss recognized in earnings on derivatives	$	–	$	–	$	(2	)	$	(3	)
Gain recognized in earnings on hedged items(b)		19		39		99			127
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 gains (losses). Includes immaterial amounts related to foreign exchange contracts.

(b) Includes $18 million and 39 million, for the three-month periods ended September 30, 2012 and 2011, respectively, and $97 million and $125 million, for the nine-month periods ended September 30, 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 gains (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 September 30,						Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

Interest rate contracts(a):
Loss recognized in OCI on derivatives	$	(1	)	$	(2	)	$	(2	)	$	(5	)
Loss reclassified from Accumulated OCI into earnings(b)		(4	)		(15	)		(13	)		(49	)

(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 gains (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 September 30, 2012, $15 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 September 30,						Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

By Derivative Type:
Interest rate contracts(a)	$	(220	)	$	523		$	(208	)	$	270
Foreign exchange contracts		(93	)		84			(3	)		80
Equity contracts(b)		(206	)		416			(601	)		379
Commodity contracts		2			(1	)		–			6
Credit contracts		200			(83	)		414			218
Other contracts		(4	)		(741	)		(56	)		(741	)

Total	$	(321	)	$	198		$	(454	)	$	212

By Classification:
Policy fees	$	42		$	29		$	115		$	80
Net investment income		–			2			1			6
Net realized capital gains (losses)		(183	)		(163	)		(843	)		13
Other income (losses)		(180	)		330			273			113

Total	$	(321	)	$	198		$	(454	)	$	212

(a) Includes cross currency swaps.

(b) Includes embedded derivative losses of $75 million and $812 million for the three-month periods ended September 30, 2012 and 2011, respectively, and embedded derivatives losses of $268 million and $807 million, for the nine-month periods ended September 30, 2012 and 2011, respectively.

Global Capital Markets Derivatives

GCM enters into derivatives to mitigate market risk in its exposures (interest rates, currencies, commodities, credit and equities) arising from its transactions. At September 30, 2012, GCM has entered into credit derivative transactions with respect to $81 million of securities to economically hedge its credit risk. In most cases, GCM has not hedged its exposures related to the credit default swaps it has written.

GCM 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

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:




									Unrealized Market Valuation Gain (Loss)^(c)
					Fair Value of Derivative (Asset) Liability at^(b)(c)				Unrealized Market Valuation Gain (Loss)^(c)
	Net Notional Amount^(a)				Fair Value of Derivative (Asset) Liability at^(b)(c)				Three Months Ended September 30,					Nine Months Ended September 30,
	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011		Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011		2012		2011			2012		2011

Regulatory Capital:
Corporate loans	$	898	$	1,830	$	–	$	–	$	–	$	–		$	–	$	–
Prime residential mortgages		139		3,653		–		–		–		–			–		6
Other		–		887		–		9		6		(10	)		9		–

Total		1,037		6,370		–		9		6		(10	)		9		6

Arbitrage:
Multi-sector CDOs(d)		4,363		5,476		2,183		3,077		142		47			336		230
Corporate debt/CLOs(e)		11,707		11,784		74		127		42		(33	)		53		11

Total		16,070		17,260		2,257		3,204		184		14			389		241

Mezzanine tranches		–		989		–		10		14		(1	)		3		(15	)

Total	$	17,107	$	24,619	$	2,257	$	3,223	$	204	$	3		$	401	$	232

(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 gains (losses) of $(12) million and $25 million in the three-month periods ended September 30, 2012 and 2011, respectively, and $(36) million and $27 million in the nine-month periods ended September 30, 2012 and 2011, respectively, representing the effect of changes in AIG's credit spreads on the valuation of the derivatives liabilities.

(d) During the nine-month period ended September 30, 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 nine-month period ended September 30, 2012, $142 million was paid to counterparties with respect to multi-sector CDOs. Upon payment, a $142 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 $3.7 billion and $4.6 billion in net notional amount of credit default swaps written with cash settlement provisions at September 30, 2012 and December 31, 2011, respectively.

(e) Corporate debt/CLOs include $1.2 billion in net notional amount of credit default swaps written on the super senior tranches of CLOs at both September 30, 2012 and December 31, 2011.

The expected weighted average maturity of the super senior credit derivative portfolios as of September 30, 2012 was less than one year for both the regulatory capital corporate loan portfolio and the regulatory capital prime residential mortgage portfolio, 5.8 years for the multi-sector CDO arbitrage portfolio and 3.4 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 September 30, 2012, the net notional amount of these written CDS contracts was $633 million, including ABS CDS transactions purchased from a liquidated multi-sector super senior CDS transaction. These exposures have been partially hedged by purchasing offsetting CDS contracts of $52 million in net notional amount. The net unhedged position of $581 million represents the maximum exposure to loss on these CDS contracts. The average maturity of the written CDS contracts is 3.0 years. At September 30, 2012, the fair value of derivative liability (which represents the carrying value) of the portfolio of CDS was $72 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 September 30, 2012, collateral posted by AIG under these contracts was $85 million prior to offsets for other transactions.

All Other Derivatives

AIG's businesses other than GCM 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.

Credit Risk-Related Contingent Features

The aggregate fair value of AIG's derivative instruments that contain credit risk-related contingent features that were in a net liability position at September 30, 2012, was approximately $4.0 billion. The aggregate fair value of assets posted as collateral under these contracts at September 30, 2012, was $4.4 billion.

AIG estimates that at September 30, 2012, based on AIG's outstanding financial derivative transactions 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 $125 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 $165 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 September 30, 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) 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 $7.0 billion at September 30, 2012. These securities have a current par amount of $15.4 billion 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

CONTINGENCIES, COMMITMENTS AND GUARANTEES

9 Months Ended

Sep. 30, 2012

CONTINGENCIES, COMMITMENTS AND GUARANTEES

CONTINGENCIES, COMMITMENTS AND GUARANTEES

9. CONTINGENCIES, COMMITMENTS AND GUARANTEES

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

AIG recorded an increase in its estimated litigation liability of approximately $15 million and $742 million in the three and nine-month periods ended September 30, 2012 based on developments in several actions.

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.

Legal Contingencies

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 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, as amended (the Exchange Act), or claims under the Securities Act of 1933, as amended (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).

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 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.

AIG has accrued its estimate of probable loss with respect to this litigation.

On November 18, 2011, January 20, 2012, June 11, 2012, and August 8, 2012, four separate, though similar, securities actions were brought against AIG and certain directors and officers of AIG and AIGFP by the Kuwait Investment Authority, various Oppenheimer Funds, eight foreign funds and investment entities led by the British Coal Staff Superannuation Scheme, and Pacific Life Funds and Pacific Select Fund.

As of November 1, 2012, no discussions concerning potential damages have occurred and the plaintiffs have not formally 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. The Court subsequently consolidated these eight actions as In re American International Group, Inc. ERISA Litigation II. On September 4, 2012, lead plaintiffs' counsel filed a second 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.

As of November 1, 2012, plaintiffs have not formally 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 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 (the Board). 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 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.

On March 20, 2009, a purported shareholder derivative complaint alleging similar claims as the Consolidated 2007 Derivatives Litigation 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.

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 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 clarified the standard for determining jurisdiction over foreign and out-of-province defendants, such as AIG, by holding that a defendant must have some form of "actual," as opposed to a merely "virtual," presence in order to be deemed to be "doing business" 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 matter has been stayed pending further developments in the Consolidated 2008 Securities Litigation.

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 November 1, 2012 the Court has not determined whether it has jurisdiction or granted plaintiff's application to file a statement of claim, no merits discovery has occurred and the action has been stayed. 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 United States in the United States Court of Federal Claims (the 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 United States 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 November 21, 2011, SICO also filed a second complaint in the Southern District of New York 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 United States 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 United States," 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 United States, the improper conduct . . . constitutes the discriminatory takings of the property and property rights of AIG without due process or just compensation."

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. On March 1, 2012, the United States filed a motion to dismiss the amended complaint in the Court of Federal Claims. On April 2, 2012, the FRBNY filed its motion to dismiss the amended complaint in the Southern District of New York. On July 2, 2012, the Court of Federal Claims issued an opinion largely denying the United States' motion to dismiss and allowing most of SICO's claims to proceed. The United States filed an answer on July 30, 2012. On August 9, 2012, the United States filed a motion for reconsideration of the Court of Federal Claim's July 2, 2012 Order. On August 22, 2012, the United States filed a renewed motion to dismiss and stay. On September 13, 2012, and September 17, 2012, the Court of Federal Claims denied the United States' renewed motion to dismiss and stay and motion for reconsideration, respectively. Discovery is proceeding in the Court of Federal Claims.

In both of the actions commenced by SICO, the only claims naming AIG as a party are derivative claims on behalf of AIG. On September 21, 2012, SICO made a pre-litigation demand on AIG's Board demanding that AIG pursue the derivative claims in both actions. AIG has informed the Court of Federal Claims and the Southern District of New York that AIG's Board expects to make a decision on Starr's demand by the end of January 2013.

The United States has alleged, as an affirmative defense in its answer, that AIG is obligated to indemnify the FRBNY and its representatives, including the Federal Reserve Board of Governors and the United States (as the FRBNY's principal), for any recovery in the Court of Federal Claims action, and seeks a contingent offset or recoupment for the value of net operating loss benefits the United States alleges that AIG received as a result of the government's assistance to AIG. The FRBNY has also requested indemnification under the FRBNY Credit Facility from AIG in connection with the action against it and from ML III under the Master Investment and Credit Agreement and the Amended and Restated Limited Liability Company Agreement of ML III.

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 September 30, 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. The Court subsequently issued a decision dismissing that action, which is currently on appeal.

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.

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.

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. 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.

A portion of the total $1.64 billion originally placed in escrow was designated to satisfy certain regulatory and litigation liabilities related to workers' compensation premium reporting issues. The original workers' compensation escrow amount was approximately $338 million and was placed in an account established as part of the 2006 New York regulatory settlement and referred to as the Workers' Compensation Fund. Additional money was placed into escrow accounts as a result of subsequent litigation and regulatory settlements bringing the total workers' compensation escrow amount to approximately $597 million. Approximately $147 million was released from the workers' compensation escrow accounts in satisfaction of fines, penalties and premium tax obligations, which were imposed pursuant to a December 17, 2010 regulatory settlement agreement relating to workers' compensation premium reporting issues that was deemed final and effective on May 29, 2012. Following this disbursement, approximately $450 million remains in escrow and is specifically designated to satisfy class action liabilities related to workers' compensation premium reporting issues. This amount is included in Other assets at September 30, 2012.

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.

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, and PricewaterhouseCoopers, LLP, 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. 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. 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 which AIG paid $4 million.

On February 17, 2012 and March 6, 2012, two objectors appealed the final approval of the Settlement. On September 27, 2012, the two objectors withdrew their appeals with prejudice.

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.

On August 16, 2010, the United States Court of Appeals for the Third Circuit (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. On March 30, 2012, the District Court granted final approval of a settlement between AIG and certain other defendants on the one hand, and class plaintiffs on the other, which settled the claims asserted against those defendants in the Commercial Complaint. If that settlement becomes final, AIG will pay approximately $7 million of a total aggregate settlement amount of approximately $37 million. On April 27, 2012, notices of appeal of the District Court order granting final approval were filed in the Third Circuit.

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 the 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. On October 2, 2012, AIG settled the consolidated action Henley Management Co. v. Marsh, Inc. As of November 1, 2012, the plaintiff in Avery Dennison Corp. v. Marsh & McLennan Companies, Inc. (Avery), the remaining consolidated action has not formally specified an amount of alleged damages. AIG is therefore unable to reasonably estimate the possible loss or range of losses, if any, arising from this matter.

Finally, the AIG defendants have settled the four state court actions filed in Florida, New Jersey, Texas, and Kansas state courts, where plaintiffs had made similar allegations as those asserted in the Multi-District Litigation.

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 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, which motion to dismiss was ultimately granted on August 23, 2009. The allegations in the class action complaint are substantially similar to those filed by the NWCRP.

On February 28, 2012, the Court entered a final order and judgment approving a class action settlement between AIG and a group of intervening plaintiffs, made up of seven participating members of the NWCRP, which 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. Liberty Mutual filed papers in opposition to 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 this allegation. Liberty Mutual, Safeco and Ohio Casualty subsequently appealed the Court's final order and judgment to the United States Court of Appeals for the Seventh Circuit, and that appeal is still pending.

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 million remaining in the Workers' Compensation Fund. In the event that the proposed class action settlement is not approved, the litigation will resume. As of September 30, 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.

On August 15, 2012, the trial court entered an order granting plaintiffs' motion for class certification. AIG and the other defendants have appealed that order to the Alabama Supreme Court, and the case in the trial court will be stayed until that appeal is resolved. General discovery has not commenced and AIG is unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

Regulatory Matters

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 regarding claims settlement practices and other related state regulatory inquiries. AIG recorded an increase of $55 million in policyholders benefit reserves in the third quarter of 2012 in conjunction with the resolution of the multi-state examinations relating to the handling of unclaimed property and the use of the Social Security Death Master File (SSDMF) to identify potential claims not yet presented to AIG in the normal course of business. In addition, AIG paid an $11 million regulatory assessment to the various state insurance departments that are parties to the regulatory settlement to defray costs of their examinations and monitoring. Although AIG has enhanced its claims practices to include use of the SSDMF, it is possible that the settlement remediation requirements and/or remaining inquiries and other regulatory activity could result in the payment of additional death claims and additional escheatment of funds deemed abandoned under state laws. AIG believes it has 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 39 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 and non-insurance companies (collectively, the Chartis parties) and the lead regulators agreed 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 September 30, 2012, AIG has an accrued liability equal to the amount of the civil penalty under the proposed agreement. As the terms outlined above remain subject to agreement by the 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 ("CFPB") assumed responsibility for violations of the Real Estate Settlement Procedures Act from HUD, and assumed HUD's aforementioned ongoing investigation. In June 2012, the CFPB issued a Civil Investigative Demand ("CID") to UGC and other mortgage insurance companies, requesting the production of documents and answers to written questions. The CFPB has agreed to toll the deadlines associated with the CID pending discussions that could resolve the investigation. UGC has 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.

Other 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.

Commitments

Flight Equipment

At September 30, 2012, ILFC had committed to purchase 233 new aircraft with aggregate estimated total remaining payments of approximately $17.7 billion, including seven aircraft through sale-leaseback transactions with airlines deliverable from 2012 through 2019. ILFC had also committed to purchase seven used aircraft and nine new spare engines. 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 $2.4 billion at September 30, 2012.

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

In connection with AIGFP's business activities, 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 September 30, 2012 was $322 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 scheduled payments 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 Note 15 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, Inc. (MetLife) with certain indemnities. The most significant remaining indemnities include:

•: 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 may 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 September 30, 2012, approximately $600 million of proceeds from the sale of ALICO were on deposit in an escrow arrangement. Pursuant to a letter agreement between MetLife and AIG entered into on July 13, 2012, $950 million was released to AIG on August 31, 2012 instead of November 1, 2012 as originally provided under the ALICO stock purchase agreement. The amount required to be held in escrow declines to zero in May 2013, although indemnification claims then pending will reduce 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 ($52.6 million at the September 30, 2012 exchange rate), with a maximum payout of 102 billion yen ($1.3 billion at the September 30, 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

9 Months Ended

Sep. 30, 2012

TOTAL EQUITY

TOTAL EQUITY

10. TOTAL EQUITY

Shares Outstanding

The following table presents a rollforward of outstanding shares:

	Preferred Stock


	AIG Series E			AIG Series F			AIG Series C			AIG Series G			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

Nine Months Ended September 30, 2012
Shares, beginning of year		–			–			–			–			1,906,568,099		(9,746,617	)		1,896,821,482
Issuances		–			–			–			–			44,567		658,549			703,116
Shares repurchased		–			–			–			–			–		(421,228,855	)		(421,228,855	)

Shares, end of period		–			–			–			–			1,906,612,666		(430,316,923	)		1,476,295,743

Nine Months Ended September 30, 2011
Shares, beginning of year		400,000			300,000			100,000			–			147,124,067		(6,660,908	)		140,463,159
Issuances		–			–			–			20,000			100,113,761		–			100,113,761
Settlement of equity unit stock purchase contracts		–			–			–			–			3,606,417		–			3,606,417
Shares exchanged*		(400,000	)		(300,000	)		(100,000	)		–			1,655,037,962		(11,678	)		1,655,026,284
Shares cancelled		–			–			–			(20,000	)		–		–			–

Shares, end of period		–			–			–			–			1,905,882,207		(6,672,586	)		1,899,209,621

* See Note 1 to the Consolidated Financial Statements in the 2011 Annual Report for further discussion of shares exchanged in connection with the Recapitalization.

AIG Common Stock Offerings by the Department of the Treasury and AIG Repurchases of Shares

Through registered public offerings, the Department of the Treasury has reduced its ownership of AIG Common Stock from approximately 92 percent (1.7 billion shares) prior to the completion of the first registered public offering initiated by the Department of the Treasury as selling shareholder in May 2011 to approximately 15.9 percent (234.2 million shares) of AIG Common Stock at September 30, 2012.

During 2012, the Department of the Treasury, as selling shareholder, completed registered public offerings of AIG Common Stock on March 13 (the March Offering), May 10 (the May Offering), August 8 (the August Offering) and September 14 (the September Offering). AIG has participated as a purchaser in each of the 2012 offerings.

The following table presents certain information relating to these offerings:

			U.S. Treasury				AIG^*


(dollars in millions, except share-price data)	Price		Shares Sold		Amount		Shares Purchased		Amount

May 2011 Offering	$	29.00		200,000,000	$	5,800		–	$	–
2012 Offerings:
March Offering		29.00		206,896,552		6,000		103,448,276		3,000
May Offering		30.50		188,524,589		5,750		65,573,770		2,000
August Offering		30.50		188,524,590		5,750		98,360,656		3,000
September Offering		32.50		636,923,075		20,700		153,846,153		5,000

				1,420,868,806	$	44,000		421,228,855	$	13,000

* Shares purchased by AIG in each of the 2012 offerings were purchased pursuant to AIG Board of Directors authorization.

Potential future repurchases by AIG of its shares will depend in part on the regulatory framework that will ultimately be applicable to AIG. This framework will depend on, among other things, AIG's status as a savings and loan holding company under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) and whether AIG is determined to be a systemically important financial institution (SIFI).

Dividends

Payment of future dividends to AIG shareholders depends in part on the regulatory framework that will ultimately be applicable to AIG, including AIG's status as a savings and loan holding company under Dodd-Frank and whether AIG is determined to be a SIFI. 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 for a 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		2,045			7,901			–			–			–			9,946
Change in deferred acquisition costs adjustment and other		(37	)		(866	)		–			–			–			(903	)
Change in future policy benefits		(71	)		(438	)		–			–			–			(509	)
Change in foreign currency translation adjustments		–			–			(167	)		–			–			(167	)
Change in net derivative gains arising from cash flow hedging activities		–			–			–			11			–			11
Net actuarial gain		–			–			–			–			102			102
Prior service credit		–			–			–			–			(36	)		(36	)
Deferred tax asset (liability)		(810	)		(1,980	)		71			14			(5	)		(2,710	)

Total other comprehensive income (loss)		1,127			4,617			(96	)		25			61			5,734
Noncontrolling interests		–			7			(7	)		–			–			–

Balance, September 30, 2012, net of tax	$	391		$	12,501		$	(1,117	)	$	8		$	(896	)	$	10,887

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		149			5,607			–			–			–			5,756
Change in deferred acquisition costs adjustment and other		99			(679	)		–			–			–			(580	)
Change in future policy benefits		–			(1,665	)		–			–			–			(1,665	)
Change in foreign currency translation adjustments		–			–			428			–			–			428
Change in net derivative losses arising from cash flow hedging activities		–			–			–			45			–			45
Net actuarial loss		–			–			–			–			(943	)		(943	)
Prior service credit		–			–			–			–			395			395
Change attributable to divestitures and deconsolidations		23			(3,643	)		(1,681	)		–			260			(5,041	)
Deferred tax asset (liability)		(166	)		(574	)		442			(31	)		98			(231	)

Total other comprehensive income (loss)		105			(954	)		(811	)		14			(190	)		(1,836	)
Acquisition of noncontrolling interest		–			43			62			–			(17	)		88
Noncontrolling interests		3			(160	)		4			–			–			(153	)

Balance, September 30, 2011, net of tax	$	(557	)	$	8,420		$	(819	)	$	(20	)	$	(1,076	)	$	5,948

The following table presents the other comprehensive income (loss) reclassification adjustments for the three and nine months ended September 30, 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 September 30, 2012
Unrealized change arising during period	$	922		$	3,600		$	258		$	(1	)	$	1		$	4,780
Less: Reclassification adjustments included in net income		16			198			–			(4	)		(19	)		191

Total other comprehensive income, before income tax expense (benefit)		906			3,402			258			3			20			4,589
Less: Income tax expense (benefit)		409			1,071			18			1			(9	)		1,490

Total other comprehensive income, net of income tax expense (benefit)	$	497		$	2,331		$	240		$	2		$	29		$	3,099

Three Months Ended September 30, 2011
Unrealized change arising during period	$	(235	)	$	2,067		$	(529	)	$	(2	)	$	(576	)	$	725
Less: Reclassification adjustments included in net income		31			2,972			175			(16	)		(30	)		3,132

Total other comprehensive loss, before income tax expense (benefit)		(266	)		(905	)		(704	)		14			(546	)		(2,407	)
Less: Income tax expense (benefit)		(82	)		1,103			(122	)		71			(207	)		763

Total other comprehensive loss, net of income tax expense (benefit)	$	(184	)	$	(2,008	)	$	(582	)	$	(57	)	$	(339	)	$	(3,170	)

Nine Months Ended September 30, 2012
Unrealized change arising during period	$	1,949		$	8,072		$	(167	)	$	(2	)	$	5		$	9,857
Less: Reclassification adjustments included in net income		12			1,475			–			(13	)		(61	)		1,413

Total other comprehensive income (loss), before income tax expense (benefit)		1,937			6,597			(167	)		11			66			8,444
Less: Income tax expense (benefit)		810			1,980			(71	)		(14	)		5			2,710

Total other comprehensive income (loss), net of income tax expense (benefit)	$	1,127		$	4,617		$	(96	)	$	25		$	61		$	5,734

Nine Months Ended September 30, 2011
Unrealized change arising during period	$	265		$	4,570		$	428		$	(5	)	$	(595	)	$	4,663
Less: Reclassification adjustments included in net income		(6	)		4,950			1,681			(50	)		(307	)		6,268

Total other comprehensive income (loss), before income tax expense (benefit)		271			(380	)		(1,253	)		45			(288	)		(1,605	)
Less: Income tax expense (benefit)		166			574			(442	)		31			(98	)		231

Total other comprehensive income (loss), net of income tax expense (benefit)	$	105		$	(954	)	$	(811	)	$	14		$	(190	)	$	(1,836	)

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (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.

+ References

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 5

-Paragraph 15

-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 Accounting Standards Codification

-Glossary Preferred Stock

-URI http://asc.fasb.org/extlink&oid=6521494

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

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-Name Accounting Research Bulletin (ARB)

-Number 43

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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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Reference 16: http://www.xbrl.org/2003/role/presentationRef

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+ Details

NONCONTROLLING INTERESTS

9 Months Ended

Sep. 30, 2012

NONCONTROLLING INTERESTS

NONCONTROLLING INTERESTS

11. NONCONTROLLING INTERESTS

During the first quarter of 2012, the remaining liquidation preference of the AIA SPV Preferred Interests held by the Department of the Treasury was paid down in full. The transactions described below provided the majority of the funds used to pay down the remaining liquidation preference.

On March 7, 2012, AIG entered into an agreement with the Department of the Treasury to amend various agreements (the Amendment), which enabled the AIA SPV to retain and distribute to AIG the net proceeds in excess of $5.6 billion received by the AIA SPV from the sale of AIA ordinary shares in March 2012.

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 sale of AIA ordinary shares in March 2012 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 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 in such SPVs 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.

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

	Redeemable Noncontrolling interests

	Redeemable Noncontrolling interests									Non-redeemable Noncontrolling interests
	Held by Department of Treasury									Non-redeemable Noncontrolling interests
(in millions)	Held by Department of Treasury			Other			Total			Held by FRBNY			Other			Total

Nine Months Ended September 30, 2012
Balance, beginning of year	$	8,427		$	96		$	8,523		$	–		$	855		$	855

Repayment to Department of the Treasury		(8,635	)		–			(8,635	)		–			–			–
Net contributions (distributions)		–			59			59			–			(117	)		(117	)
Consolidation (deconsolidation)		–			(5	)		(5	)		–			–			–
Comprehensive income:
Net income		208			5			213			–			40			40
Other comprehensive income (loss), net of tax:
Unrealized gains on investments		–			4			4			–			3			3
Foreign currency translation adjustments		–			–			–			–			(7	)		(7	)

Total other comprehensive income (loss), net of tax		–			4			4			–			(4	)		(4	)

Total comprehensive income		208			9			217			–			36			36

Other		–			–			–			–			(26	)		(26	)

Balance, end of period	$	–		$	159		$	159		$	–		$	748		$	748

Nine Months Ended September 30, 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		(11,453	)		–			(11,453	)		–			–			–
Net distributions		–			(16	)		(16	)		–			(34	)		(34	)
Deconsolidation		–			(309	)		(309	)		–			(123	)		(123	)
Acquisition of noncontrolling interest		–			–			–			–			(487	)		(487	)
Comprehensive income (loss):
Net income (loss)		464			(4	)		460			74			51			125
Other comprehensive income (loss), net of tax:
Unrealized losses on investments		–			–			–			–			(157	)		(157	)
Foreign currency translation adjustments		–			–			–			–			4			4

Total other comprehensive income (loss), net of tax		–			–			–			–			(153	)		(153	)

Total comprehensive income (loss)		464			(4	)		460			74			(102	)		(28	)

Other		–			–			–			–			(45	)		(45	)

Balance, end of period	$	9,303		$	105		$	9,408		$	–		$	771		$	771

- Definition

The entire disclosure for noncontrolling interest in consolidated subsidiaries, which could include the name of the subsidiary, the ownership percentage held by the parent, the ownership percentage held by the noncontrolling owners, the amount of the noncontrolling interest, the location of this amount on the balance sheet (when not reported separately), an explanation of the increase or decrease in the amount of the noncontrolling interest, the noncontrolling interest share of the net Income or Loss of the subsidiary, the location of this amount on the income statement (when not reported separately), the nature of the noncontrolling interest such as background information and terms, the amount of the noncontrolling interest represented by preferred stock, a description of the preferred stock, and the dividend requirements of the preferred stock.

+ References+ Details

EARNINGS (LOSS) PER SHARE (EPS)

9 Months Ended

Sep. 30, 2012

EARNINGS (LOSS) PER SHARE (EPS)

EARNINGS (LOSS) PER SHARE (EPS)

12. 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 was not affected by outstanding stock purchase contracts because they were not dilutive.

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




	Three Months Ended September 30,					Nine Months Ended September 30,
(dollars in millions, except per share data)	2012		2011			2012		2011

Numerator for EPS:
Income (loss) from continuing operations	$	1,860	$	(3,605	)	$	7,640	$	(2,599	)
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–		145			208		538
Other		5		19			45		28

Total net income from continuing operations attributable to noncontrolling interests		5		164			253		566

Net income (loss) attributable to AIG from continuing operations		1,855		(3,769	)		7,387		(3,165	)

Income (loss) from discontinued operations	$	1	$	(221	)	$	9	$	2,327
Net income (loss) from discontinued operations attributable to noncontrolling interests		–		–			–		19

Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS		1		(221	)		9		2,308

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	$	1,855	$	(3,769	)	$	7,387	$	(3,977	)

Denominator for EPS:
Weighted average shares outstanding – basic		1,642,472,814		1,899,500,628			1,757,955,937		1,765,905,779
Dilutive shares		29,437		–			28,217		–

Weighted average shares outstanding – diluted*		1,642,502,251		1,899,500,628			1,757,984,154		1,765,905,779

EPS attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations	$	1.13	$	(1.99	)	$	4.21	$	(2.25	)
Income (loss) from discontinued operations	$	–	$	(0.11	)	$	–	$	1.30
Diluted:
Income (loss) from continuing operations	$	1.13	$	(1.99	)	$	4.21	$	(2.25	)
Income (loss) from discontinued operations	$	–	$	(0.11	)	$	–	$	1.30

* Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, the warrants issued to the Department of the Treasury in 2009 and the warrants issued to common shareholders (other than the Department of the Treasury) in January 2011. The number of shares and warrants excluded from diluted shares outstanding were 78 million for both the three and nine months ended September 30, 2012, and 79 million and 75 million for the three and nine months ended September 30, 2011, respectively, because the effect of including those shares and warrants in the calculation would have been anti-dilutive. Included in the anti-dilutive total were 75 million shares for both the three and nine months ended September 30, 2012 and 75 million and 70 million shares for the three and nine months ended September 30, 2011, respectively, representing the weighted average number of warrants to purchase AIG Common Stock that were issued to common shareholders.

Deemed dividends resulted from the Recapitalization and represent the excess of:

•: 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
•: the carrying value of the Series E Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share, and Series F Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share.

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 for further discussion on the Recapitalization.

- Definition

The entire disclosure for earnings per share.

+ References+ Details

EMPLOYEE BENEFITS

9 Months Ended

Sep. 30, 2012

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

13. 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)	U.S. Plans			Non-U.S. Plans			Total			U.S. Plans			Non-U.S. Plans			Total

Three Months Ended September 30, 2012
Components of net periodic benefit cost:
Service cost	$	40		$	13		$	53		$	1		$	1		$	2
Interest cost		49			8			57			3			1			4
Expected return on assets		(60	)		(5	)		(65	)		–			–			–
Amortization of prior service (credit) cost		(8	)		(1	)		(9	)		(3	)		–			(3	)
Amortization of net (gain) loss		29			3			32			–			–			–
Other		–			–			–			–			(1	)		(1	)

Net periodic benefit cost	$	50		$	18		$	68		$	1		$	1		$	2

Three Months Ended September 30, 2011
Components of net periodic benefit cost:
Service cost	$	40		$	14		$	54		$	3		$	1		$	4
Interest cost		54			9			63			3			1			4
Expected return on assets		(64	)		(6	)		(70	)		–			–			–
Amortization of prior service (credit) cost		–			(1	)		(1	)		–			–			–
Amortization of net (gain) loss		9			3			12			–			–			–
Other		–			6			6			–			–			–

Net periodic benefit cost	$	39		$	25		$	64		$	6		$	2		$	8

Amount associated with discontinued operations	$	–		$	2		$	2		$	–		$	1		$	1

	Pension									Postretirement


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

Nine Months Ended September 30, 2012
Components of net periodic benefit cost:
Service cost	$	116		$	39		$	155		$	4		$	2		$	6
Interest cost		149			25			174			8			2			10
Expected return on assets		(180	)		(15	)		(195	)		–			–			–
Amortization of prior service (credit) cost		(25	)		(3	)		(28	)		(8	)		–			(8	)
Amortization of net (gain) loss		87			10			97			–			–			–
Other		–			–			–			–			(1	)		(1	)

Net periodic benefit cost	$	147		$	56		$	203		$	4		$	3		$	7

Nine Months Ended September 30, 2011
Components of net periodic benefit cost:
Service cost	$	114		$	52		$	166		$	7		$	3		$	10
Interest cost		158			28			186			10			2			12
Expected return on assets		(190	)		(19	)		(209	)		–			–			–
Amortization of prior service (credit) cost		1			(3	)		(2	)		1			–			1
Amortization of net (gain) loss		30			12			42			–			–			–
Other		–			6			6			–			–			–

Net periodic benefit cost	$	113		$	76		$	189		$	18		$	5		$	23

Amount associated with discontinued operations	$	–		$	13		$	13		$	–		$	2		$	2

For the nine-month period ended September 30, 2012, AIG contributed $76 million to its U.S. and non-U.S. pension plans and estimates it will contribute an additional $15 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.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

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-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 132R

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-Paragraph 63

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-Name Accounting Principles Board Opinion (APB)

-Number 30

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-URI http://asc.fasb.org/topic&trid=2235017

+ Details

INCOME TAXES

9 Months Ended

Sep. 30, 2012

INCOME TAXES

INCOME TAXES

14. 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 those items is treated discretely, and is reported in the same period as the related item. For the three- and nine-month periods ended September 30, 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 gains on AIG Life and Retirement's available-for-sale securities, were treated as discrete items. Those changes in the valuation allowance, which were reflected in the three- and nine-month periods ended September 30, 2012, were also treated as discrete items.

Interim Tax Expense (Benefit)

For the three- and nine-month periods ended September 30, 2012, the effective tax rates on pretax income from continuing operations were 28.3 and 14.4 percent, respectively. The effective tax rates for the three- and nine-month periods ended September 30, 2012, attributable to continuing operations differ from the statutory tax rate of 35 percent primarily due to tax effects associated with tax exempt interest income and investments in partnerships, adjustments to the tax bases of certain foreign aircraft leases, and a decrease in the life-insurance-business capital loss carryforward valuation allowance. These items were partially offset by changes in uncertain tax positions.

For the three- and nine-month periods ended September 30, 2011, the effective tax rates on pretax loss from continuing operations were 15.6 and 31.3 percent, respectively. The tax benefit was primarily due to a decrease in the valuation allowance attributable to the anticipated inclusion of the ALICO SPV within the U.S. consolidated income tax group, tax effects associated with tax exempt interest income, investments in partnerships, and effective settlements of certain uncertain tax positions, partially offset by an increase in the valuation allowance attributable to continuing operations.

For the nine-month period ended September 30, 2011, the entire increase in the U.S. consolidated income tax group valuation allowance was allocated to continuing operations. The amount allocated to continuing operations was net of the decrease to the valuation allowance attributable to the anticipated inclusion of the ALICO SPV within the U.S. consolidated income tax group.

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

As a result of sales in the ordinary course of business to manage the investment portfolio and the application of prudent and feasible tax planning strategies, during the nine months ended September 30, 2012, AIG determined that an additional portion of the life insurance business capital loss carryforwards will more-likely-than-not be realized prior to their expiration.

As a result, AIG released an additional $177 million of the deferred tax asset valuation allowance associated with the life insurance business capital loss carryforwards during the three-month period ended September 30, 2012, all of which was allocated to income from continuing operations. For the nine-month period ended September 30, 2012, AIG released $1.7 billion of its deferred tax asset valuation allowance associated with the life insurance business capital loss carryforwards, of which $1.6 billion was allocated to income from continuing operations. 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. Changes in market conditions, including rising interest rates above AIG's projections, may result in a reduction in projected taxable gains and reestablishment of a valuation allowance.

Accounting for Uncertainty in Income Taxes

At September 30, 2012 and December 31, 2011, AIG's unrecognized tax benefits, excluding interest and penalties, were $4.4 billion and $4.3 billion, respectively. The increase in AIG's unrecognized tax benefits, excluding interest and penalties, was primarily due to adjustments to tax bases of certain foreign aircraft leases and foreign tax credits associated with cross border financing transactions. At September 30, 2012 and December 31, 2011, AIG's unrecognized tax benefits included $0.2 billion and $0.7 billion, respectively, 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 September 30, 2012 and December 31, 2011, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $4.2 billion and $3.6 billion, respectively.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At September 30, 2012 and December 31, 2011, AIG accrued $929 million and $744 million, respectively, for the payment of interest (net of the federal benefit) and penalties. For the nine-month periods ended September 30, 2012 and 2011, AIG recognized $185 million and $(58) million, respectively, of income tax expense (benefit) for interest net of the federal benefit (expense) 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.

+ References

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-Name Accounting Standards Codification

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-SubTopic 10

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-Name Regulation S-X (SX)

-Number 210

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+ Details

DISCONTINUED OPERATIONS

9 Months Ended

Sep. 30, 2012

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

15. DISCONTINUED OPERATIONS

The results of operations for the following sales are presented as discontinued operations through the date of disposition in the Consolidated Statement of Operations for the three and nine months ended September 30, 2011:

See Note 9 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; the transaction closed on August 18, 2011. AIG recorded a pre-tax gain of $60 million and a pre-tax loss of $1.0 billion on the sale for the three- and nine-month periods ended September 30, 2011, respectively, largely offsetting Nan Shan's operating results for the periods, which are both reflected in Income (loss) from discontinued operations in the Consolidated Statement of Operations. The net proceeds from the transaction were used in 2011 to pay down a portion of the liquidation preference of the Department of the Treasury's AIA SPV Preferred Interests.

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

(in millions)	Three Months Ended September 30, 2011			Nine Months Ended September 30, 2011



Revenues:
Premiums	$	915		$	5,012
Net investment income		423			1,632
Net realized capital gains (losses)		(120	)		844
Other income		–			5

Total revenues		1,218			7,493

Benefits, claims and expenses		1,228			6,324
Interest expense allocation		–			2

Income (loss) from discontinued operations		(10	)		1,167

Gain on sales		32			2,341

Income from discontinued operations, before tax income tax expense		22			3,508

Income tax expense		243			1,181

Income (loss) from discontinued operations, net of income tax	$	(221	)	$	2,327

- 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).

+ References

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INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

9 Months Ended

Sep. 30, 2012

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

16. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

The following condensed consolidating financial statements reflect the results of SunAmerica Financial Group, Inc. (SAFG, Inc.), a holding company for AIG's Life and Retirement operations and a 100 percent 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



September 30, 2012
Assets:
Short-term investments	$	9,056	$	–	$	15,611		$	(2,110	)	$	22,557
Other investments(a)		12,418		–		374,641			499			387,558

Total investments		21,474		–		390,252			(1,611	)		410,115
Cash		125		–		1,483			–			1,608
Loans to subsidiaries(b)		38,402		–		(33,862	)		(4,540	)		–
Debt issuance costs		189		–		279			–			468
Investment in consolidated subsidiaries(b)		70,499		43,235		(31,570	)		(82,164	)		–
Other assets, including current and deferred income taxes		25,947		257		120,087			(7,759	)		138,532

Total assets	$	156,636	$	43,492	$	446,669		$	(96,074	)	$	550,723

Liabilities:
Insurance liabilities	$	–	$	–	$	281,731		$	(288	)	$	281,443
Other long-term debt		36,626		1,638		34,982			502			73,748
Other liabilities, including intercompany balances(a)(c)		17,256		837		84,586			(9,720	)		92,959
Loans from subsidiaries(b)		1,088		851		2,727			(4,666	)		–

Total liabilities		54,970		3,326		404,026			(14,172	)		448,150

Other		–		–		51			108			159

Redeemable noncontrolling interests		–		–		51			108			159

Total AIG shareholders' equity		101,666		40,166		42,228			(82,394	)		101,666
Non-redeemable noncontrolling interests		–		–		364			384			748

Total equity		101,666		40,166		42,592			(82,010	)		102,414

Total liabilities and equity	$	156,636	$	43,492	$	446,669		$	(96,074	)	$	550,723

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)(d)		80,990		32,361		(11,463	)		(101,888	)		–
Other assets, including current and deferred income taxes		24,595		2,704		117,231			(4,575	)		139,955

Total assets	$	165,395	$	35,078	$	563,014		$	(211,127	)	$	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)(d)		15,635		2,402		75,132			(9,494	)		83,675
Loans from subsidiaries(b)		12,316		249		(12,565	)		–			–

Total liabilities		63,857		4,289		483,597			(110,299	)		441,444

Redeemable noncontrolling interests (see Note 11):
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		78,996			(109,785	)		101,538
Non-redeemable noncontrolling interests		–		–		392			463			855

Total equity		101,538		30,789		79,388			(109,322	)		102,393

Total liabilities and equity	$	165,395	$	35,078	$	563,014		$	(211,127	)	$	552,360

(a) Includes intercompany derivative asset positions, which are reported at fair value before credit valuation adjustment.

(b) Eliminated in consolidation.

(c) For September 30, 2012 and December 31, 2011, includes intercompany tax payable of $10 billion and $9.8 billion, respectively, and intercompany derivative liabilities of $875 million and $901 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable of $205 million and $128 million, respectively, for SAFG, Inc.

(d) Prior period amounts have been conformed to the current period presentation.

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 September 30, 2012
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	1,811		$	1,612		$	–		$	(3,423	)	$	–
Change in fair value of ML III		330			–			–			–			330
Other income(b)		373			–			17,006			(61	)		17,318

Total revenues		2,514			1,612			17,006			(3,484	)		17,648

Expenses:
Other interest expense(c)		550			70			428			(60	)		988
Other expenses		173			–			13,892			–			14,065

Total expenses		723			70			14,320			(60	)		15,053

Income (loss) from continuing operations before income tax expense (benefit)		1,791			1,542			2,686			(3,424	)		2,595
Income tax expense (benefit)		(65	)		117			683			–			735

Income (loss) from continuing operations		1,856			1,425			2,003			(3,424	)		1,860
Income from discontinued operations		–			–			1			–			1

Net income (loss)		1,856			1,425			2,004			(3,424	)		1,861
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred
interests		–			–			–			–			–
Other		–			–			5			–			5

Total net income attributable to noncontrolling interests		–			–			5			–			5

Net income (loss) attributable to AIG	$	1,856		$	1,425		$	1,999		$	(3,424	)	$	1,856

Three Months Ended September 30, 2011
Revenues:
Equity in earnings of consolidated subsidiaries(a)(d)	$	(2,604	)	$	(383	)	$	–		$	2,987		$	–
Change in fair value of ML III		(484	)		–			(447	)		–			(931	)
Other income(b)(d)		406			831			12,667			(254	)		13,650

Total revenues		(2,682	)		448			12,220			2,733			12,719

Expenses:
Other interest expense(c)		712			64			448			(254	)		970
Other expenses		230			–			15,789			–			16,019

Total expenses		942			64			16,237			(254	)		16,989

Income (loss) from continuing operations before income tax expense (benefit)		(3,624	)		384			(4,017	)		2,987			(4,270	)
Income tax expense (benefit)		161			(17	)		(809	)		–			(665	)

Income (loss) from continuing operations		(3,785	)		401			(3,208	)		2,987			(3,605	)
Loss from discontinued operations		(205	)		–			(16	)		–			(221	)

Net income (loss)		(3,990	)		401			(3,224	)		2,987			(3,826	)
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			145			145
Other		–			–			19			–			19

Total income from continuing operations attributable to noncontrolling interests		–			–			19			145			164
Income (loss) from discontinued operations attributable to noncontrolling interests		–			–			–			–			–

Total net income attributable to noncontrolling interests		–			–			19			145			164

Net income (loss) attributable to AIG	$	(3,990	)	$	401		$	(3,243	)	$	2,842		$	(3,990	)

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



Nine Months Ended September 30, 2012
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	5,757		$	1,716		$	–		$	(7,473	)	$	–
Change in fair value of ML III		2,287			–			601			–			2,888
Other income(b)		1,074			49			49,533			(330	)		50,326

Total revenues		9,118			1,765			50,134			(7,803	)		53,214

Expenses:
Other interest expense(c)		1,719			136			1,368			(328	)		2,895
Net loss on extinguishment of debt		9			–			23			–			32
Other expenses		1,278			–			40,079			–			41,357

Total expenses		3,006			136			41,470			(328	)		44,284

Income (loss) from continuing operations before income tax expense (benefit)		6,112			1,629			8,664			(7,475	)		8,930
Income tax expense (benefit)		(1,284	)		580			1,994			–			1,290

Income (loss) from continuing operations		7,396			1,049			6,670			(7,475	)		7,640
Income from discontinued operations		–			–			9			–			9

Net income (loss)		7,396			1,049			6,679			(7,475	)		7,649
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			208			208
Other		–			–			45			–			45

Total net income attributable to noncontrolling interests		–			–			45			208			253

Net income (loss) attributable to AIG	$	7,396		$	1,049		$	6,634		$	(7,683	)	$	7,396

Nine Months Ended September 30, 2011
Revenues:
Equity in earnings of consolidated subsidiaries(a)(d)	$	3,574		$	127		$	–		$	(3,701	)	$	–
Change in fair value of ML III		(831	)		–			(23	)		–			(854	)
Other income(b)(d)		639			1,297			46,596			(840	)		47,692

Total revenues		3,382			1,424			46,573			(4,541	)		46,838

Expenses:
Interest expense on FRBNY Credit Facility		72			–			–			(2	)		70
Other interest expense(c)		2,194			223			1,408			(840	)		2,985
Net loss on extinguishment of debt		3,331			–			61			–			3,392
Other expenses		502			–			43,675			–			44,177

Total expenses		6,099			223			45,144			(842	)		50,624

Income (loss) from continuing operations before income tax benefit		(2,717	)		1,201			1,429			(3,699	)		(3,786	)
Income tax benefit		(926	)		(13	)		(248	)		–			(1,187	)

Income (loss) from continuing operations		(1,791	)		1,214			1,677			(3,699	)		(2,599	)
Income (loss) from discontinued operations		934			–			1,395			(2	)		2,327

Net income (loss)		(857	)		1,214			3,072			(3,701	)		(272	)
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			538			538
Other		–			–			28			–			28

Total income from continuing operations attributable to
noncontrolling interests		–			–			28			538			566
Income from discontinued operations attributable to
noncontrolling interests		–			–			19			–			19

Total net income attributable to noncontrolling interests		–			–			47			538			585

Net income (loss) attributable to AIG	$	(857	)	$	1,214		$	3,025		$	(4,239	)	$	(857	)

(a) Eliminated in consolidation.

(b) Includes intercompany income of $59 million and $77 million for the three-month periods ended September 30, 2012 and 2011, respectively, and $191 million and $288 million for the nine-month periods ended September 30, 2012 and 2011, respectively, for American International Group, Inc. (As Guarantor).

(c) Includes intercompany interest expense of $4 million and $177 million for the three-month periods ended September 30, 2012 and 2011, respectively, and $140 million and $552 million for the nine-month periods ended September 30, 2012 and 2011, respectively, for American International Group, Inc. (As Guarantor).

(d) Prior period amounts have been conformed to the current period presentation.

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 September 30, 2012
Net income (loss)	$	1,856		$	1,425	$	2,004		$	(3,424	)	$	1,861
Other comprehensive income (loss)		3,096			1,995		3,096			(5,088	)		3,099

Comprehensive income (loss)		4,952			3,420		5,100			(8,512	)		4,960
Total comprehensive income attributable to noncontrolling interests		–			–		8			–			8

Comprehensive income (loss) attributable to AIG	$	4,952		$	3,420	$	5,092		$	(8,512	)	$	4,952

Three Months Ended September 30, 2011
Net income (loss)	$	(3,990	)	$	401	$	(3,224	)	$	2,987		$	(3,826	)
Other comprehensive income (loss)		(3,064	)		432		(2,180	)		1,642			(3,170	)

Comprehensive income (loss)		(7,054	)		833		(5,404	)		4,629			(6,996	)
Total comprehensive income (loss) attributable to noncontrolling interests		–			–		(87	)		145			58

Comprehensive income (loss) attributable to AIG	$	(7,054	)	$	833	$	(5,317	)	$	4,484		$	(7,054	)

Nine Months Ended September 30, 2012
Net income (loss)	$	7,396		$	1,049	$	6,679		$	(7,475	)	$	7,649
Other comprehensive income (loss)		5,734			3,754		6,791			(10,545	)		5,734

Comprehensive income (loss)		13,130			4,803		13,470			(18,020	)		13,383
Total comprehensive income attributable to noncontrolling interests		–			–		45			208			253

Comprehensive income (loss) attributable to AIG	$	13,130		$	4,803	$	13,425		$	(18,228	)	$	13,130

Nine Months Ended September 30, 2011
Net income (loss)	$	(857	)	$	1,214	$	3,072		$	(3,701	)	$	(272	)
Other comprehensive income (loss)		(1,683	)		1,537		(1,995	)		305			(1,836	)

Comprehensive income (loss)		(2,540	)		2,751		1,077			(3,396	)		(2,108	)
Total comprehensive income (loss) attributable to noncontrolling interests		–			–		(106	)		538			432

Comprehensive income (loss) attributable to AIG	$	(2,540	)	$	2,751	$	1,183		$	(3,934	)	$	(2,540	)

Condensed Consolidating Statement of Cash Flows

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



Nine Months Ended September 30, 2012
Net cash (used in) provided by operating activities	$	1,275		$	2,243		$	(679	)	$	2,839

Cash flows from investing activities:
Sales of investments		9,806			–			65,405			75,211
Purchase of investments		(4,339	)		–			(53,355	)		(57,694	)
Loans to subsidiaries – net		1,730			–			(1,730	)		–
Contributions to subsidiaries – net		954			–			(954	)		–
Net change in restricted cash		(381	)		–			1,076			695
Net change in short-term investments		4,881			–			(3,740	)		1,141
Net change in derivative assets and liabilities		262			–			(380	)		(118	)
Other, net		(10	)		–			(67	)		(77	)

Net cash provided by investing activities		12,903			–			6,255			19,158

Cash flows from financing activities:
Issuance of long-term debt		3,754			–			4,231			7,985
Repayments of long-term debt		(2,995	)		–			(6,852	)		(9,847	)
Purchase of Common Stock		(13,000	)		–			–			(13,000	)
Intercompany loans – net		(1,944	)		(2,256	)		4,200			–
Other, net		(44	)		–			(6,948	)		(6,992	)

Net cash (used in) financing activities		(14,229	)		(2,256	)		(5,369	)		(21,854	)

Effect of exchange rate changes on cash		–			–			(9	)		(9	)

Change in cash		(51	)		(13	)		198			134
Cash at beginning of period		176			13			1,285			1,474

Cash at end of period	$	125		$	–		$	1,483		$	1,608



Nine Months Ended September 30, 2011
Net cash (used in) provided by operating activities – continuing operations	$	(4,473	)	$	1,033		$	(1,131	)	$	(4,571	)
Net cash provided by operating activities – discontinued operations		–			–			3,370			3,370

Net cash (used in) provided by operating activities		(4,473	)		1,033			2,239			(1,201	)

Cash flows from investing activities:
Sales of investments		2,425			–			63,818			66,243
Sales of divested businesses, net		1,075			–			(488	)		587
Purchase of investments		(8	)		–			(77,636	)		(77,644	)
Loans to subsidiaries – net		4,031			–			(4,031	)		–
Contributions to subsidiaries – net*		(16,878	)		–			16,878			–
Net change in restricted cash		2,001			–			24,407			26,408
Net change in short-term investments		(9,892	)		–			25,302			15,410
Net change in derivative assets and liabilities		1,223			–			(241	)		982
Other, net*		(58	)		–			(260	)		(318	)

Net cash (used in) provided by investing activities – continuing operations		(16,081	)		–			47,749			31,668
Net cash provided by investing activities – discontinued operations		–			–			4,478			4,478

Net cash (used in) provided by investing activities		(16,081	)		–			52,227			36,146

Cash flows from financing activities:
FRBNY credit facility repayments		(14,622	)		–			–			(14,622	)
Issuance of long-term debt		2,135			–			4,162			6,297
Repayments of long-term debt		(4,450	)		–			(10,494	)		(14,944	)
Proceeds from drawdown on the Department of the Treasury Commitment*		20,292			–			–			20,292
Settlement of equity unit stock purchase contracts		5,055			–			–			5,055
Intercompany loans – net		12,408			(1,033	)		(11,375	)		–
Other, net*		(148	)		–			(35,432	)		(35,580	)

Net cash (used in) provided by financing activities – continuing operations		20,670			(1,033	)		(53,139	)		(33,502	)
Net cash (used in) financing activities – discontinued operations		–			–			(1,942	)		(1,942	)

Net cash (used in) provided by financing activities		20,670			(1,033	)		(55,081	)		(35,444	)

Effect of exchange rate changes on cash		–			–			37			37

Change in cash		116			–			(578	)		(462	)
Cash at beginning of period		49			–			1,509			1,558
Change in cash of businesses held for sale		–			–			446			446

Cash at end of period	$	165		$	–		$	1,377		$	1,542

* Includes activities related to the Recapitalization.

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 nine months ended September 30, 2012 for:
Interest:
Third party	$	(1,535	)	$	(109	)	$	(1,412	)	$	(3,056	)
Intercompany		(129	)		(49	)		178			–
Taxes:
Income tax authorities	$	(11	)	$	–		$	(392	)	$	(403	)
Intercompany		(884	)		(41	)		925			–

Cash (paid) received during the nine months ended September 30, 2011 for:
Interest:
Third party*	$	(6,337	)	$	(96	)	$	(1,519	)	$	(7,952	)
Intercompany		(258	)		(149	)		407			–
Taxes:
Income tax authorities	$	13		$	–		$	(656	)	$	(643	)
Intercompany		(793	)		–			793			–

* 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:




Nine Months Ended September 30, (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		–		18,284
Other capital contributions – net		381		412

BASIS OF PRESENTATION (Policies)

9 Months Ended

Sep. 30, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

Use of Estimates

•: income tax assets and liabilities, 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 of financial instruments and goodwill impairments;
•: liabilities for legal contingencies; and
•: fair value measurements of certain financial assets and liabilities.

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.

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 September 30, 2011 (dollars in millions, except per share data)	As Previously Reported			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital gains^(a)	$	604		$	3		$	607

Total revenues		12,716			3			12,719

Interest credited to policyholder account balances		1,134			12			1,146
Amortization of deferred acquisition costs		2,490			(950	)		1,540
Other acquisition and other insurance expenses		1,214			853			2,067

Total benefits, claims and expenses		17,074			(85	)		16,989

Loss from continuing operations before income tax benefit		(4,358	)		88			(4,270	)

Income tax benefit^(b)		(634	)		(31	)		(665	)

Loss from continuing operations		(3,724	)		119			(3,605	)
Loss from discontinued operations, net of income tax expense^(c)		(221	)		–			(221	)

Net loss		(3,945	)		119			(3,826	)

Net loss attributable to AIG		(4,109	)		119			(3,990	)

Net loss attributable to AIG common shareholders		(4,109	)		119			(3,990	)

Loss per share attributable to AIG common shareholders:
Basic:
Loss from continuing operations	$	(2.05	)	$	0.06		$	(1.99	)
Loss from discontinued operations	$	(0.11	)	$	–		$	(0.11	)
Diluted
Loss from continuing operations	$	(2.05	)	$	0.06		$	(1.99	)
Loss from discontinued operations	$	(0.11	)	$	–		$	(0.11	)

Nine Months Ended September 30, 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^(a)	$	(63	)	$	10		$	(53	)

Total revenues		46,828			10			46,838

Interest credited to policyholder account balances		3,349			17			3,366
Amortization of deferred acquisition costs		5,992			(1,899	)		4,093
Other acquisition and other insurance expenses		4,418			1,746			6,164

Total benefits, claims and expenses		50,760			(136	)		50,624

Loss from continuing operations before income tax benefit		(3,932	)		146			(3,786	)

Income tax benefit^(b)		(1,122	)		(65	)		(1,187	)

Loss from continuing operations		(2,810	)		211			(2,599	)
Income from discontinued operations, net of income tax expense^(c)		1,395			932			2,327

Net loss		(1,415	)		1,143			(272	)

Net loss attributable to AIG		(2,000	)		1,143			(857	)

Net loss attributable to AIG common shareholders		(2,812	)		1,143			(1,669	)

Income (loss) per share attributable to AIG common shareholders:
Basic:
Loss from continuing operations	$	(2.37	)	$	0.12		$	(2.25	)
Income from discontinued operations	$	0.78		$	0.52		$	1.30
Diluted
Loss from continuing operations	$	(2.37	)	$	0.12		$	(2.25	)
Income from discontinued operations	$	0.78		$	0.52		$	1.30

(b) Includes a change in the deferred tax asset valuation allowance for each period.

Adoption of the standard did not effect 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.

Nine Months Ended September 30, 2011 (in millions)	As Previously Reported			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net loss	$	(1,415	)	$	1,143		$	(272	)
(Income) from discontinued operations		(1,395	)		(932	)		(2,327	)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized losses in earnings – net^*		724			(10	)		714
Depreciation and other amortization		7,500			(1,882	)		5,618
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(5,856	)		1,746			(4,110	)
Current and deferred income taxes – net		(1,764	)		(65	)		(1,829	)
Total adjustments		(1,761	)		(211	)		(1,972	)

* Includes $118 million for the nine months ended September 30, 2011 attributable to the effect of the reclassification of certain derivative activity discussed in Note 1 herein.

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 Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6367646&loc=d3e18780-107790

Reference 2: 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 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(m)(2)(i))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph m

-Subparagraph 2

-Article 4

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 20

-Section 45

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7472769&loc=d3e9760-107771

Reference 6: 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 7: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

-Topic 860

-SubTopic 30

-URI http://asc.fasb.org/subtopic&trid=2197663

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 860

-SubTopic 30

-Section 50

-Paragraph 1

-Subparagraph (a)

-URI http://asc.fasb.org/extlink&oid=7523297&loc=d3e113969-111729

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 140

-Paragraph 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.

+ 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

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 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 September 30, 2011 (dollars in millions, except per share data)	As Previously Reported			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital gains^(a)	$	604		$	3		$	607

Total revenues		12,716			3			12,719

Interest credited to policyholder account balances		1,134			12			1,146
Amortization of deferred acquisition costs		2,490			(950	)		1,540
Other acquisition and other insurance expenses		1,214			853			2,067

Total benefits, claims and expenses		17,074			(85	)		16,989

Loss from continuing operations before income tax benefit		(4,358	)		88			(4,270	)

Income tax benefit^(b)		(634	)		(31	)		(665	)

Loss from continuing operations		(3,724	)		119			(3,605	)
Loss from discontinued operations, net of income tax expense^(c)		(221	)		–			(221	)

Net loss		(3,945	)		119			(3,826	)

Net loss attributable to AIG		(4,109	)		119			(3,990	)

Net loss attributable to AIG common shareholders		(4,109	)		119			(3,990	)

Loss per share attributable to AIG common shareholders:
Basic:
Loss from continuing operations	$	(2.05	)	$	0.06		$	(1.99	)
Loss from discontinued operations	$	(0.11	)	$	–		$	(0.11	)
Diluted
Loss from continuing operations	$	(2.05	)	$	0.06		$	(1.99	)
Loss from discontinued operations	$	(0.11	)	$	–		$	(0.11	)

Nine Months Ended September 30, 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^(a)	$	(63	)	$	10		$	(53	)

Total revenues		46,828			10			46,838

Interest credited to policyholder account balances		3,349			17			3,366
Amortization of deferred acquisition costs		5,992			(1,899	)		4,093
Other acquisition and other insurance expenses		4,418			1,746			6,164

Total benefits, claims and expenses		50,760			(136	)		50,624

Loss from continuing operations before income tax benefit		(3,932	)		146			(3,786	)

Income tax benefit^(b)		(1,122	)		(65	)		(1,187	)

Loss from continuing operations		(2,810	)		211			(2,599	)
Income from discontinued operations, net of income tax expense^(c)		1,395			932			2,327

Net loss		(1,415	)		1,143			(272	)

Net loss attributable to AIG		(2,000	)		1,143			(857	)

Net loss attributable to AIG common shareholders		(2,812	)		1,143			(1,669	)

Income (loss) per share attributable to AIG common shareholders:
Basic:
Loss from continuing operations	$	(2.37	)	$	0.12		$	(2.25	)
Income from discontinued operations	$	0.78		$	0.52		$	1.30
Diluted
Loss from continuing operations	$	(2.37	)	$	0.12		$	(2.25	)
Income from discontinued operations	$	0.78		$	0.52		$	1.30

(b) Includes a change in the deferred tax asset valuation allowance for each period.

Nine Months Ended September 30, 2011 (in millions)	As Previously Reported			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net loss	$	(1,415	)	$	1,143		$	(272	)
(Income) from discontinued operations		(1,395	)		(932	)		(2,327	)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized losses in earnings – net^*		724			(10	)		714
Depreciation and other amortization		7,500			(1,882	)		5,618
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(5,856	)		1,746			(4,110	)
Current and deferred income taxes – net		(1,764	)		(65	)		(1,829	)
Total adjustments		(1,761	)		(211	)		(1,972	)

* Includes $118 million for the nine months ended September 30, 2011 attributable to the effect of the reclassification of certain derivative activity discussed in Note 1 herein.

- 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

-Section 45

-Paragraph 12

-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e725-108305

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

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 28

-Paragraph 23, 24

-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 01

-Paragraph b

-Subparagraph 6

-Article 10

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 270

-SubTopic 10

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-Paragraph 13

-URI http://asc.fasb.org/extlink&oid=6372559&loc=d3e765-108305

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 250

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22499-107794

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

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-Name Accounting Standards Codification

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-SubTopic 10

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

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Accounting Change

-URI http://asc.fasb.org/extlink&oid=6503790

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Direct Effects of a Change in Accounting Principle

-URI http://asc.fasb.org/extlink&oid=6510796

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Indirect Effects of a Change in Accounting Principle

-URI http://asc.fasb.org/extlink&oid=6515603

Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Change in Accounting Principle

-URI http://asc.fasb.org/extlink&oid=6507316

Reference 11: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 270

-SubTopic 10

-Section S99

-Paragraph 1

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

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

Reference 12: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

-Topic 250

-SubTopic 10

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-Paragraph 3

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Reference 13: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Glossary Retrospective Application

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

Reference 14: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 154

-Paragraph 2, 17, 18

-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

SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2012

Segment results

Schedule of operations by reportable segment

	Reportable Segment


	Reportable Segment										Consolidation and Eliminations
(in millions)	AIG Property Casualty		AIG Life and Retirement		Aircraft Leasing^*			Other Operations			Consolidation and Eliminations			Consolidated

Three Months Ended September 30, 2012
Total revenues	$	10,149	$	4,530	$	1,146		$	2,213		$	(390	)	$	17,648
Pre-tax income (loss)		949		889		40			891			(174	)		2,595

Three Months Ended September 30, 2011
Total revenues	$	10,185	$	3,582	$	1,106		$	(2,433	)	$	279		$	12,719
Pre-tax income (loss)		551		346		(1,329	)		(3,945	)		107			(4,270	)

Nine Months Ended September 30, 2012
Total revenues	$	29,967	$	12,439	$	3,421		$	8,085		$	(698	)	$	53,214
Pre-tax income (loss)		2,820		2,528		246			3,511			(175	)		8,930

Nine Months Ended September 30, 2011
Total revenues	$	30,283	$	11,317	$	3,366		$	1,864		$	8		$	46,838
Pre-tax income (loss)		1,003		2,079		(1,122	)		(5,855	)		109			(3,786	)

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

Total AIG Property Casualty

Segment results

Schedule of operations by reportable segment

(in millions)	Commercial Insurance		Consumer Insurance			Other		Total AIG Property Casualty



Three Months Ended September 30, 2012
Total revenues	$	5,975	$	3,582		$	592	$	10,149
Pre-tax income		321		152			476		949

Three Months Ended September 30, 2011
Total revenues	$	6,402	$	3,523		$	260	$	10,185
Pre-tax income		405		21			125		551

Nine Months Ended September 30, 2012
Total revenues	$	17,991	$	10,758		$	1,218	$	29,967
Pre-tax income		1,480		578			762		2,820

Nine Months Ended September 30, 2011
Total revenues	$	18,905	$	10,439		$	939	$	30,283
Pre-tax income (loss)		650		(175	)		528		1,003

Total AIG Life and Retirement

Segment results

Schedule of operations by reportable segment

(in millions)	Life Insurance		Retirement Services			Total AIG Life and Retirement



Three Months Ended September 30, 2012
Total revenues	$	2,663	$	1,867		$	4,530
Pre-tax income		553		336			889

Three Months Ended September 30, 2011
Total revenues	$	2,134	$	1,448		$	3,582
Pre-tax income (loss)		472		(126	)		346

Nine Months Ended September 30, 2012
Total revenues	$	7,306	$	5,133		$	12,439
Pre-tax income		1,714		814			2,528

Nine Months Ended September 30, 2011
Total revenues	$	6,242	$	5,075		$	11,317
Pre-tax income		1,174		905			2,079

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 September 30, 2012
Total revenues	$	218		$	235		$	506	$	857		$	412		$	(15	)	$	2,213
Pre-tax income (loss)		6			190			406		857			(566	)		(2	)		891

Three Months Ended September 30, 2011
Total revenues	$	246		$	(130	)	$	159	$	(3,246	)	$	561		$	(23	)	$	(2,433	)
Pre-tax income (loss)		(82	)		(187	)		103		(3,246	)		(523	)		(10	)		(3,945	)

Nine Months Ended September 30, 2012
Total revenues	$	642		$	405		$	1,434	$	4,717		$	925		$	(38	)	$	8,085
Pre-tax income (loss)		62			253			1,139		4,717			(2,659	)		(1	)		3,511

Nine Months Ended September 30, 2011
Total revenues	$	716		$	151		$	758	$	(743	)	$	1,030		$	(48	)	$	1,864
Pre-tax income (loss)		(68	)		(66	)		586		(743	)		(5,538	)		(26	)		(5,855	)

- 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)

9 Months Ended

Sep. 30, 2012

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis





September 30, 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	$	28	$	4,380	$	–	$	–		$	–		$	4,408
Obligations of states, municipalities and political subdivisions		–		35,360		1,104		–			–			36,464
Non-U.S. governments		742		25,542		14		–			–			26,298
Corporate debt		–		148,528		1,612		–			–			150,140
RMBS		–		23,692		11,488		–			–			35,180
CMBS		–		4,469		5,013		–			–			9,482
CDO/ABS		–		3,293		4,649		–			–			7,942

Total bonds available for sale		770		245,264		23,880		–			–			269,914

Bond trading securities:
U.S. government and government sponsored entities		302		7,406		–		–			–			7,708
Obligations of states, municipalities and political subdivisions		–		81		–		–			–			81
Non-U.S. governments		–		2		–		–			–			2
Corporate debt		–		1,316		2		–			–			1,318
RMBS		–		1,101		370		–			–			1,471
CMBS		–		1,490		612		–			–			2,102
CDO/ABS		–		3,650		8,505		–			–			12,155

Total bond trading securities		302		15,046		9,489		–			–			24,837

Equity securities available for sale:
Common stock		2,781		1		40		–			–			2,822
Preferred stock		–		48		45		–			–			93
Mutual funds		86		20		–		–			–			106

Total equity securities available for sale		2,867		69		85		–			–			3,021

Equity securities trading		17		81		–		–			–			98
Mortgage and other loans receivable		–		129		1		–			–			130
Other invested assets(c)		6,257		1,706		7,070		–			–			15,033
Derivative assets:
Interest rate contracts		11		6,278		996		–			–			7,285
Foreign exchange contracts		–		53		–		–			–			53
Equity contracts		113		98		53		–			–			264
Commodity contracts		–		141		1		–			–			142
Credit contracts		–		1		59		–			–			60
Other contracts		–		11		57		–			–			68
Counterparty netting and cash collateral		–		–		–		(3,219	)		(1,197	)		(4,416	)

Total derivative assets		124		6,582		1,166		(3,219	)		(1,197	)		3,456

Short-term investments		592		6,708		–		–			–			7,300
Separate account assets		53,829		2,911		–		–			–			56,740
Other assets		–		698		–		–			–			698

Total	$	64,758	$	279,194	$	41,691	$	(3,219	)	$	(1,197	)	$	381,227

Liabilities:
Policyholder contract deposits	$	–	$	–	$	1,308	$	–		$	–		$	1,308
Derivative liabilities:
Interest rate contracts		–		6,303		243		–			–			6,546
Foreign exchange contracts		–		166		–		–			–			166
Equity contracts		2		159		10		–			–			171
Commodity contracts		–		143		–		–			–			143
Credit contracts(d)		–		–		2,349		–			–			2,349
Other contracts		–		26		250		–			–			276
Counterparty netting and cash collateral		–		–		–		(3,219	)		(2,118	)		(5,337	)

Total derivative liabilities		2		6,797		2,852		(3,219	)		(2,118	)		4,314

Other long-term debt(e)		–		8,428		407		–			–			8,835
Other liabilities		138		792		–		–			–			930

Total	$	140	$	16,017	$	4,567	$	(3,219	)	$	(2,118	)	$	15,387

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		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(d)		–		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(e)		–		10,258		508		–			–			10,766
Other liabilities		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.

(c) Included in Level 1 are $6.1 billion and $12.4 billion at September 30, 2012 and December 31, 2011, respectively, of AIA ordinary shares publicly traded on the Hong Kong Stock Exchange.

(e) Includes Guaranteed Investment Agreements (GIAs), notes, bonds, loans and mortgages payable.

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 September 30, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	1,013	$	16		$	–		$	102		$	25	$	(52	)	$	1,104	$	–
Non-U.S. governments		13		1			(1	)		2			–		(1	)		14		–
Corporate debt		1,306		10			35			94			233		(66	)		1,612		–
RMBS		10,488		197			1,029			(678	)		566		(114	)		11,488		–
CMBS		4,643		(17	)		271			115			1		–			5,013		–
CDO/ABS		5,074		87			82			(129	)		63		(528	)		4,649		–

Total bonds available for sale		22,537		294			1,416			(494	)		888		(761	)		23,880		–

Bond trading securities:
Corporate debt		3		–			–			(1	)		–		–			2		–
RMBS		290		40			–			(56	)		97		(1	)		370		12
CMBS		457		(3	)		–			1			157		–			612		(19	)
CDO/ABS		14,647		581			–			(6,780	)		57		–			8,505		427

Total bond trading securities		15,397		618			–			(6,836	)		311		(1	)		9,489		420

Equity securities available for sale:
Common stock		41		–			(1	)		–			–		–			40		–
Preferred stock		139		15			(12	)		(104	)		8		(1	)		45		–

Total equity securities available for sale		180		15			(13	)		(104	)		8		(1	)		85		–

Mortgage and other loans receivable		1		–			–			–			–		–			1		–
Other invested assets		7,049		22			8			(90	)		126		(45	)		7,070		–

Total	$	45,164	$	949		$	1,411		$	(7,524	)	$	1,333	$	(808	)	$	40,525	$	420

(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



Liabilities:
Policyholder contract deposits	$	(1,188	)	$	(45	)	$	(72	)	$	(3	)	$	–		$	–		$	(1,308	)	$	279
Derivative liabilities, net:
Interest rate contracts		761			(55	)		–			47			–			–			753			11
Foreign exchange contracts		–			–			–			–			–			–			–			–
Equity contracts		28			18			–			(4	)		1			–			43			–
Commodity contracts		2			4			–			(3	)		–			(2	)		1			(1	)
Credit contracts		(2,587	)		208			–			89			–			–			(2,290	)		(360	)
Other contracts		(154	)		(122	)		(6	)		73			16			–			(193	)		14

Total derivative liabilities, net		(1,950	)		53			(6	)		202			17			(2	)		(1,686	)		(336	)

Other long-term debt(b)		(407	)		(27	)		–			61			(34	)		–			(407	)		170

Total	$	(3,545	)	$	(19	)	$	(78	)	$	260		$	(17	)	$	(2	)	$	(3,401	)	$	113

Nine Months Ended September 30, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	960		$	48		$	11		$	139		$	70		$	(124	)	$	1,104		$	–
Non-U.S. governments		9			1			–			–			5			(1	)		14			–
Corporate debt		1,935			(7	)		104			96			579			(1,095	)		1,612			–
RMBS		10,877			322			1,832			32			921			(2,496	)		11,488			–
CMBS		3,955			(84	)		572			618			44			(92	)		5,013			–
CDO/ABS		4,220			127			348			(150	)		669			(565	)		4,649			–

Total bonds available for sale		21,956			407			2,867			735			2,288			(4,373	)		23,880			–

Bond trading securities:
Corporate debt		7			–			–			(5	)		–			–			2			–
RMBS		303			68			–			(94	)		97			(4	)		370			18
CMBS		554			46			–			(121	)		193			(60	)		612			45
CDO/ABS		8,432			3,646			–			(3,630	)		57			–			8,505			2,635

Total bond trading securities		9,296			3,760			–			(3,850	)		347			(64	)		9,489			2,698

Equity securities available for sale:
Common stock		57			23			(13	)		(33	)		6			–			40			–
Preferred stock		99			17			(35	)		(35	)		11			(12	)		45			–

Total equity securities available for sale		156			40			(48	)		(68	)		17			(12	)		85			–

Mortgage and other loans receivable		1			–			–			–			–			–			1			–
Other invested assets		6,618			(157	)		284			(57	)		886			(504	)		7,070			–

Total	$	38,027		$	4,050		$	3,103		$	(3,240	)	$	3,538		$	(4,953	)	$	40,525		$	2,698

Liabilities:
Policyholder contract deposits	$	(918	)	$	(314	)	$	(72	)	$	(4	)	$	–		$	–		$	(1,308	)	$	135
Derivative liabilities, net:
Interest rate contracts		785			(9	)		–			(23	)		–			–			753			(37	)
Foreign exchange contracts		2			–			–			(2	)		–			–			–			–
Equity contracts		28			7			–			9			(1	)		–			43			–
Commodity contracts		2			4			–			(5	)		–			–			1			–
Credit contracts		(3,273	)		409			–			574			–			–			(2,290	)		(880	)
Other contracts		33			(110	)		(4	)		(5	)		(107	)		–			(193	)		53

Total derivative liabilities, net		(2,423	)		301			(4	)		548			(108	)		–			(1,686	)		(864	)

Other long-term debt(b)		(508	)		(405	)		(77	)		197			(34	)		420			(407	)		224

Total	$	(3,849	)	$	(418	)	$	(153	)	$	741		$	(142	)	$	420		$	(3,401	)	$	(505	)

(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 September 30, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	800		$	1		$	83		$	74		$	–	$	(50	)	$	908		$	–
Non-U.S. governments		5			–			(1	)		1			–		–			5			–
Corporate debt		1,844			13			(21	)		(56	)		1,170		(475	)		2,475			–
RMBS		10,692			(83	)		29			(437	)		254		(47	)		10,408			–
CMBS		4,228			(46	)		(293	)		134			16		(64	)		3,975			–
CDO/ABS		3,925			12			(131	)		220			329		(238	)		4,117			–

Total bonds available for sale		21,494			(103	)		(334	)		(64	)		1,769		(874	)		21,888			–

Bond trading securities:
Corporate debt		9			–			–			(1	)		–		–			8			–
RMBS		170			(5	)		(1	)		168			–		–			332			(20	)
CMBS		483			(31	)		(4	)		(16	)		115		–			547			2
CDO/ABS		9,503			(993	)		(9	)		(131	)		48		(24	)		8,394			(1,340	)

Total bond trading securities		10,165			(1,029	)		(14	)		20			163		(24	)		9,281			(1,358	)

Equity securities available for sale:
Common stock		59			9			(9	)		(11	)		10		(2	)		56			–
Preferred stock		64			2			2			–			2		–			70			–

Total equity securities available for sale		123			11			(7	)		(11	)		12		(2	)		126			–

Equity securities trading		1			(1	)		–			–			–		–			–			–
Other invested assets		7,045			(27	)		42			(54	)		205		(27	)		7,184			–

Total	$	38,828		$	(1,149	)	$	(313	)	$	(109	)	$	2,149	$	(927	)	$	38,479		$	(1,358	)

Liabilities:
Policyholder contract deposits	$	(406	)	$	(928	)	$	–		$	(28	)	$	–	$	–		$	(1,362	)	$	950
Derivative liabilities, net:
Interest rate contracts		754			47			–			9			–		(21	)		789			(61	)
Foreign exchange contracts		4			1			–			(5	)		–		–			–			–
Equity contracts		34			(10	)		–			–			–		–			24			(7	)
Commodity contracts		5			(1	)		–			(1	)		–		–			3			(1	)
Credit contracts		(3,332	)		(25	)		–			(5	)		–		–			(3,362	)		398
Other contracts		(69	)		32			(32	)		9			–		99			39			(121	)

Total derivatives liabilities, net		(2,604	)		44			(32	)		7			–		78			(2,507	)		208

Other long-term debt(b)		(958	)		183			–			(14	)		–		–			(789	)		349

Total	$	(3,968	)	$	(701	)	$	(32	)	$	(35	)	$	–	$	78		$	(4,658	)	$	1,507

(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



Nine Months Ended September 30, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	609		$	–		$	110		$	248		$	17		$	(76	)	$	908		$	–
Non-U.S. governments		5			–			(1	)		1			–			–			5			–
Corporate debt		2,262			10			1			216			1,703			(1,717	)		2,475			–
RMBS		6,367			(85	)		397			3,506			276			(53	)		10,408			–
CMBS		3,604			(80	)		262			206			69			(86	)		3,975			–
CDO/ABS		4,241			44			181			(617	)		775			(507	)		4,117			–

Total bonds available for sale		17,088			(111	)		950			3,560			2,840			(2,439	)		21,888			–

Bond trading securities:
Corporate debt		–			–			–			(10	)		18			–			8			–
RMBS		91			(5	)		(8	)		254			–			–			332			(15	)
CMBS		506			35			(1	)		(92	)		276			(177	)		547			31
CDO/ABS		9,431			(840	)		–			(221	)		48			(24	)		8,394			(770	)

Total bond trading securities		10,028			(810	)		(9	)		(69	)		342			(201	)		9,281			(754	)

Equity securities available for sale:
Common stock		61			27			(5	)		(38	)		18			(7	)		56			–
Preferred stock		64			(1	)		3			–			4			–			70			–

Total equity securities available for sale		125			26			(2	)		(38	)		22			(7	)		126			–

Equity securities trading		1			–			–			(1	)		–			–			–			–
Other invested assets		7,414			9			511			(565	)		250			(435	)		7,184			–

Total	$	34,656		$	(886	)	$	1,450		$	2,887		$	3,454		$	(3,082	)	$	38,479		$	(754	)

Liabilities:
Policyholder contract deposits	$	(445	)	$	(882	)	$	–		$	(35	)	$	–		$	–		$	(1,362	)	$	887
Derivative liabilities, net:
Interest rate contracts		732			69			–			9			–			(21	)		789			(55	)
Foreign exchange contracts		16			(11	)		–			(5	)		–			–			–			–
Equity contracts		22			(17	)		–			38			(7	)		(12	)		24			(14	)
Commodity contracts		23			1			–			(21	)		–			–			3			(1	)
Credit contracts		(3,798	)		451			–			(15	)		–			–			(3,362	)		446
Other contracts		(112	)		9			(58	)		49			–			151			39			(87	)

Total derivatives liabilities, net		(3,117	)		502			(58	)		55			(7	)		118			(2,507	)		289

Other long-term debt(b)		(982	)		(28	)		–			242			(21	)		–			(789	)		(31	)

Total	$	(4,544	)	$	(408	)	$	(58	)	$	262		$	(28	)	$	118		$	(4,658	)	$	1,145

(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 September 30, 2012
Bonds available for sale	$	218		$	51		$	25		$	294
Bond trading securities		491			–			127			618
Equity securities		–			15			–			15
Other invested assets		6			(16	)		32			22
Policyholder contract deposits		–			(45	)		–			(45	)
Derivative liabilities, net		–			(39	)		92			53
Other long-term debt		–			–			(27	)		(27	)

Three Months Ended September 30, 2011
Bonds available for sale	$	193		$	(300	)	$	4		$	(103	)
Bond trading securities		(1,333	)		4			300			(1,029	)
Equity securities		(1	)		11			–			10
Other invested assets		(13	)		(29	)		15			(27	)
Policyholder contract deposits		–			(928	)		–			(928	)
Derivative liabilities, net		1			54			(11	)		44
Other long-term debt		–			–			183			183

Nine Months Ended September 30, 2012
Bonds available for sale	$	683		$	(333	)	$	57		$	407
Bond trading securities		3,330			–			430			3,760
Equity securities		–			40			–			40
Other invested assets		(3	)		(189	)		35			(157	)
Policyholder contract deposits		–			(314	)		–			(314	)
Derivative liabilities, net		(1	)		22			280			301
Other long-term debt		–			–			(405	)		(405	)

Nine Months Ended September 30, 2011
Bonds available for sale	$	433		$	(556	)	$	12		$	(111	)
Bond trading securities		(828	)		4			14			(810	)
Equity securities		–			26			–			26
Other invested assets		31			(81	)		59			9
Policyholder contract deposits		–			(882	)		–			(882	)
Derivative liabilities, net		2			7			493			502
Other long-term debt		–			–			(28	)		(28	)

Gross components of purchases, sales, issuances and settlements, net

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



Three Months Ended September 30, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	189		$	(53	)	$	(34	)	$	102
Non-U.S. governments		3			–			(1	)		2
Corporate debt		139			(6	)		(39	)		94
RMBS		198			(360	)		(516	)		(678	)
CMBS		299			(127	)		(57	)		115
CDO/ABS		210			–			(339	)		(129	)

Total bonds available for sale		1,038			(546	)		(986	)		(494	)

Bond trading securities:
Corporate debt		–			–			(1	)		(1	)
RMBS		–			(45	)		(11	)		(56	)
CMBS		11			–			(10	)		1
CDO/ABS(b)		2,191			(6	)		(8,965	)		(6,780	)

Total bond trading securities		2,202			(51	)		(8,987	)		(6,836	)

Equity securities		–			(22	)		(82	)		(104	)
Other invested assets		129			(30	)		(189	)		(90	)

Total assets	$	3,369		$	(649	)	$	(10,244	)	$	(7,524	)

Liabilities:
Policyholder contract deposits	$	–		$	(6	)	$	3		$	(3	)
Derivative liabilities, net		6			–			196			202
Other long-term debt(c)		–			–			61			61

Total liabilities	$	6		$	(6	)	$	260		$	260

Three Months Ended September 30, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	78		$	–		$	(4	)	$	74
Non-U.S. governments		–			–			1			1
Corporate debt		58			(27	)		(87	)		(56	)
RMBS		(11	)		–			(426	)		(437	)
CMBS		178			–			(44	)		134
CDO/ABS		405			–			(185	)		220

Total bonds available for sale		708			(27	)		(745	)		(64	)

Bond trading securities:
Corporate debt		–			–			(1	)		(1	)
RMBS		197			–			(29	)		168
CMBS		79			(90	)		(5	)		(16	)
CDO/ABS		101			(93	)		(139	)		(131	)

Total bond trading securities		377			(183	)		(174	)		20

Equity securities		–			(8	)		(3	)		(11	)
Other invested assets		156			(59	)		(151	)		(54	)

Total assets	$	1,241		$	(277	)	$	(1,073	)	$	(109	)

Liabilities:
Policyholder contract deposits	$	–		$	(32	)	$	4		$	(28	)
Derivative liabilities, net		1			–			6			7
Other long-term debt(c)		–			–			(14	)		(14	)

Total liabilities	$	1		$	(32	)	$	(4	)	$	(35	)

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


Nine Months Ended September 30, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	394	$	(219	)	$	(36	)	$	139
Non-U.S. governments		4		(3	)		(1	)		–
Corporate debt		280		(59	)		(125	)		96
RMBS		2,308		(722	)		(1,554	)		32
CMBS		1,021		(260	)		(143	)		618
CDO/ABS		730		(4	)		(876	)		(150	)

Total bonds available for sale		4,737		(1,267	)		(2,735	)		735

Bond trading securities:
Corporate debt		–		–			(5	)		(5	)
RMBS		–		(45	)		(49	)		(94	)
CMBS		194		(106	)		(209	)		(121	)
CDO/ABS(b)		7,216		(6	)		(10,840	)		(3,630	)

Total bond trading securities		7,410		(157	)		(11,103	)		(3,850	)

Equity securities		67		(55	)		(80	)		(68	)
Other invested assets		529		(63	)		(523	)		(57	)

Total assets	$	12,743	$	(1,542	)	$	(14,441	)	$	(3,240	)

Liabilities:
Policyholder contract deposits	$	–	$	(20	)	$	16		$	(4	)
Derivative liabilities, net		8		–			540			548
Other long-term debt(c)		–		–			197			197

Total liabilities	$	8	$	(20	)	$	753		$	741

Nine Months Ended September 30, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	254	$	–		$	(6	)	$	248
Non-U.S. governments		1		(1	)		1			1
Corporate debt		478		(27	)		(235	)		216
RMBS		4,613		(22	)		(1,085	)		3,506
CMBS		419		(20	)		(193	)		206
CDO/ABS		666		–			(1,283	)		(617	)

Total bonds available for sale		6,431		(70	)		(2,801	)		3,560

Bond trading securities:
Corporate debt		–		–			(10	)		(10	)
RMBS		300		–			(46	)		254
CMBS		139		(144	)		(87	)		(92	)
CDO/ABS		245		(219	)		(247	)		(221	)

Total bond trading securities		684		(363	)		(390	)		(69	)

Equity securities		–		(31	)		(8	)		(39	)
Other invested assets		506		(217	)		(854	)		(565	)

Total assets	$	7,621	$	(681	)	$	(4,053	)	$	2,887

Liabilities:
Policyholder contract deposits	$	–	$	(51	)	$	16		$	(35	)
Derivative liabilities, net		40		–			15			55
Other long-term debt(c)		–		–			242			242

Total liabilities	$	40	$	(51	)	$	273		$	262

(a) There were no issuances during the three- and nine-month periods ended September 30, 2012 and 2011.

(b) Includes securities with a fair value of approximately $7.1 billion purchased through the FRBNY's auction of Maiden Lane III LLC (ML III) assets.

Fair value assets measured on nonrecurring basis and impairment charges

	Assets at Fair Value								Impairment Charges



	Non-Recurring Basis								Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	Level 1		Level 2		Level 3		Total		2012		2011		2012		2011

September 30, 2012
Investment real estate	$	–	$	–	$	311	$	311	$	–	$	–	$	–	$	15
Other investments		–		–		1,534		1,534		97		181		273		526
Aircraft*		–		–		324		324		98		1,518		227		1,676
Other assets		–		1		18		19		–		–		9		–

Total	$	–	$	1	$	2,187	$	2,188	$	195	$	1,699	$	509	$	2,217

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 where appropriate.

Significant unobservable inputs used for recurring fair value measurements




(in millions)	Fair Value at September 30, 2012		Valuation Technique	Unobservable Input^(a)	Range (Weighted Average)^(a)

Assets:
Corporate debt	$	826	Discounted cash flow	Yield(b)	1.85% - 8.95% (5.40%)
Residential mortgage backed securities		10,867	Discounted cash flow	Constant prepayment rate(c)	0.00% - 10.58% (4.99%)
				Loss severity(c)	40.07% - 78.97% (59.52%)
				Constant default rate(c)	3.61% - 13.01% (8.31%)
				Yield(c)	2.69% - 9.53% (6.11%)
Certain CDO/ABS		1,866	Discounted cash flow	Constant prepayment rate(c)	0.00% - 39.55% (12.87%)
				Loss severity(c)	0.00% - 9.20% (0.78%)
				Constant default rate(c)	0.00% - 1.19% (0.13%)
				Yield(c)	0.84% - 4.85% (2.85%)
Commercial mortgage backed securities		3,051	Discounted cash flow	Yield(b)	0.00% - 27.34% (10.14%)
CDO/ABS – Direct			Binomial Expansion	Recovery rate(b)	3% - 65%
Investment Book		1,290	Technique (BET)	Diversity score(b)	4 - 37 (14)
				Weighted average life(b)	1.12 - 9.17 years (4.57 years)

Liabilities:
Policyholder contract deposits – GMWB		1,005	Discounted cash flow	Equity implied volatility(b)	6.0% - 40.0%
				Base lapse rates(b)	1.00% - 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		1,600	BET	Recovery rates(b)	3% - 36% (16%)
				Diversity score(b)	8 - 31 (13)
				Weighted average life(b)	5.02 - 8.40 years (6.08 years)

(b) Represents discount rates, estimates and assumptions that AIG believes would be used by market participants when valuing these assets and liabilities.

Investments in Certain Entities Carried at Fair Value Using Net Asset Value per Share




		September 30, 2012				December 31, 2011
(in millions)	Investment Category Includes	Fair Value Using Net Asset Value or its equivalent		Unfunded Commitments		Fair Value Using Net Asset Value or its equivalent		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	$	3,223	$	821	$	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		173		31		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		309		32		316		39
Distressed	Securities of companies that are already in default, under bankruptcy protection, or troubled		172		37		182		42
Other	Real estate, energy, multi-strategy, mezzanine, and industry-focused strategies		364		145		252		98

Total private equity funds			4,241		1,066		4,100		1,181

Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		894		2		774		2
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,139		–		927		–
Macro	Investments that take long and short positions in financial instruments based on a top-down view of certain economic and capital market conditions		248		–		173		–
Distressed	Securities of companies that are already in default, under bankruptcy protection or troubled		367		–		272		10
Other	Non-U.S. companies, futures and commodities, relative value, and multi-strategy and industry-focused strategies		604		–		627		–

Total hedge funds			3,252		2		2,773		12

Total		$	7,493	$	1,068	$	6,873	$	1,193

Gains or losses related to the eligible instruments for which AIG elected the fair value option




	Gain (Loss) Three Months Ended September 30,						Gain (Loss) Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

Assets:
Mortgage and other loans receivable	$	10		$	(3	)	$	41		$	(2	)
Bonds and equity securities		875			(138	)		1,782			1,299
Trading – ML II interest		–			(43	)		246			32
Trading – ML III interest		330			(931	)		2,888			(854	)
Retained interest in AIA		527			(2,315	)		1,829			268
Other, including Short-term investments		14			12			27			40

Liabilities:
Other long-term debt^(a)		(86	)		(265	)		(750	)		(821	)
Other liabilities		(9	)		84			(31	)		(91	)

Total gain (loss)^(b)	$	1,661		$	(3,599	)	$	6,032		$	(129	)

(a) Includes GIAs, notes, bonds, loans and mortgages payable.

Difference between fair values and aggregate contractual principal amounts, fair value option




	September 30, 2012							December 31, 2011
(in millions)	Fair Value		Outstanding Principal Amount		Difference			Fair Value		Outstanding Principal Amount		Difference

Assets:
Mortgage and other loans receivable	$	130	$	140	$	(10	)	$	107	$	150	$	(43	)
Liabilities:
Other long-term debt^*	$	8,835	$	6,483	$	2,352		$	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

September 30, 2012
Assets:
Mortgage and other loans receivable	$	–	$	549	$	20,099	$	20,648	$	19,200
Other invested assets		–		209		3,451		3,660		4,947
Short-term investments		–		15,257		–		15,257		15,257
Cash		1,608		–		–		1,608		1,608
Liabilities:
Policyholder contract deposits associated with investment-type contracts		–		138		126,671		126,809		107,119
Other liabilities		–		1,843		831		2,674		2,676
Long-term debt		18,229		50,605		1,792		70,626		64,913

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
Other liabilities								896		896
Long-term debt								61,295		64,487

INVESTMENTS (Tables)

9 Months Ended

Sep. 30, 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)



September 30, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	4,049	$	359	$	–		$	4,408	$	–
Obligations of states, municipalities and political subdivisions		33,716		2,799		(51	)		36,464		(23	)
Non-U.S. governments		24,900		1,441		(43	)		26,298		–
Corporate debt		134,977		15,755		(592	)		150,140		125
Mortgage-backed, asset-backed and collateralized:
RMBS		32,343		3,231		(394	)		35,180		1,109
CMBS		9,258		738		(514	)		9,482		(112	)
CDO/ABS		7,447		737		(242	)		7,942		90

Total mortgage-backed, asset-backed and collateralized		49,048		4,706		(1,150	)		52,604		1,087

Total bonds available for sale(b)		246,690		25,060		(1,836	)		269,914		1,189

Equity securities available for sale:
Common stock		1,517		1,355		(50	)		2,822		–
Preferred stock		65		28		–			93		–
Mutual funds		94		12		–			106		–

Total equity securities available for sale		1,676		1,395		(50	)		3,021		–

Other invested assets carried at fair value(c)		6,491		1,756		(25	)		8,222		–

Total	$	254,857	$	28,211	$	(1,911	)	$	281,157	$	1,189

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	)

(b) At September 30, 2012 and December 31, 2011, bonds available for sale held by AIG that were below investment grade or not rated totaled $28.9 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

September 30, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	68	$	–	$	–	$	–	$	68	$	–
Obligations of states, municipalities and political subdivisions		457		30		197		21		654		51
Non-U.S. governments		1,067		14		512		29		1,579		43
Corporate debt		6,383		168		5,121		424		11,504		592
RMBS		659		14		2,012		380		2,671		394
CMBS		193		28		1,786		486		1,979		514
CDO/ABS		143		3		1,779		239		1,922		242

Total bonds available for sale		8,970		257		11,407		1,579		20,377		1,836

Equity securities available for sale:
Common stock		313		45		37		5		350		50
Preferred stock		–		–		–		–		–		–
Mutual funds		4		–		1		–		5		–

Total equity securities available for sale		317		45		38		5		355		50

Total	$	9,287	$	302	$	11,445	$	1,584	$	20,732	$	1,886

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


September 30, 2012 (in millions)	Total Fixed Maturity Available for Sale Securities				Fixed Maturity Securities in a Loss Position
September 30, 2012 (in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in one year or less	$	11,080	$	11,289	$	837	$	830
Due after one year through five years		54,288		57,505		4,143		4,009
Due after five years through ten years		70,835		78,191		4,058		3,845
Due after ten years		61,439		70,325		5,453		5,121
Mortgage-backed, asset-backed and collateralized		49,048		52,604		7,722		6,572

Total	$	246,690	$	269,914	$	22,213	$	20,377

The gross realized gains and gross realized losses from sales of AIG's available for sale securities




	Three Months Ended September 30,								Nine Months Ended September 30,
	2012				2011				2012				2011
(in millions)	Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses

Fixed maturity securities	$	943	$	82	$	612	$	11	$	2,308	$	121	$	1,462	$	104
Equity securities		38		22		30		10		503		26		178		18

Total	$	981	$	104	$	642	$	21	$	2,811	$	147	$	1,640	$	122

The fair value of AIG's trading securities




	September 30, 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	$	7,708		31	%	$	7,504		31	%
Non-U.S. governments		2		–			35		–
Corporate debt		1,318		5			816		3
State, territories and political subdivisions		81		–			257		1
Mortgage-backed, asset-backed and collateralized:
RMBS		1,471		6			1,648		7
CMBS		2,102		9			1,837		7
CDO/ABS and other collateralized^*		12,147		49			5,282		22

Total mortgage-backed, asset-backed and collateralized		15,720		64			8,767		36
ML II		–		–			1,321		5
ML III		8		–			5,664		23

Total fixed maturities		24,837		100			24,364		99

Equity securities		98		–			125		1

Total	$	24,935		100	%	$	24,489		100	%

* Includes securities with a fair value of approximately $7.1 billion purchased through the FRBNY's auction of ML III assets.

Credit impairments recognized in earnings for available for sale fixed maturity securities held by AIG




	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

Balance, beginning of period	$	6,090		$	6,396		$	6,504		$	6,786
Increases due to:
Credit impairments on new securities subject to impairment losses		–			169			172			254
Additional credit impairments on previously impaired securities		45			222			421			457
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell		(297	)		(133	)		(815	)		(458	)
Credit impaired securities for which there is a current intent or anticipated requirement to sell		(5	)		–			(5	)		–
Accretion on securities previously impaired due to credit^*		(215	)		(148	)		(668	)		(355	)
Hybrid securities with embedded credit derivatives reclassified to Bond trading securities		–			–			–			(179	)
Other		(3	)		–			6			1

Balance, end of period	$	5,615		$	6,506		$	5,615		$	6,506

Schedule of Purchased Credit Impaired (PCI) Securities, at acquisition date

(in millions)	At Date of Acquisition



Contractually required payments (principal and interest)	$	18,315
Cash flows expected to be collected^*		14,286
Recorded investment in acquired securities		9,128

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

Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date




(in millions)	September 30, 2012		December 31, 2011

Outstanding principal balance	$	11,957	$	10,119
Amortized cost		7,743		7,006
Fair value		8,734		6,535

Activity for accretable yield on Purchased Credit Impaired (PCI) Securities




	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

Balance, beginning of period	$	4,950		$	2,276		$	4,135		$	–
Newly purchased PCI securities		114			306			1,532			2,688
Disposals		(130	)		–			(298	)		–
Accretion		(165	)		(119	)		(510	)		(194	)
Effect of changes in interest rate indices		(39	)		(46	)		(200	)		(54	)
Net reclassification (to) from non-accretable difference, including effects of prepayments		53			(93	)		124			(116	)

Balance, end of period	$	4,783		$	2,324		$	4,783		$	2,324

LENDING ACTIVITIES (Tables)

9 Months Ended

Sep. 30, 2012

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable




(in millions)	September 30, 2012			December 31, 2011

Commercial mortgages^*	$	13,679		$	13,554
Life insurance policy loans		2,962			3,049
Commercial loans, other loans and notes receivable		3,177			3,626

Total mortgage and other loans receivable		19,818			20,229
Allowance for losses		(488	)		(740	)

Mortgage and other loans receivable, net	$	19,330		$	19,489

Schedule of credit quality indicators for the commercial mortgage loans

September 30, 2012 (dollars in millions)	Number of Loans		Class														Percent of Total $


September 30, 2012 (dollars in millions)	Number of Loans		Apartments		Offices		Retail		Industrial		Hotel		Others		Total		Percent of Total $

Credit Quality Indicator:
In good standing		1,000	$	1,582	$	4,808	$	2,577	$	1,795	$	1,064	$	1,383	$	13,209		97	%
Restructured(a)		8		49		206		7		8		–		22		292		2
90 days or less delinquent		2		–		–		26		–		–		–		26		–
90 days delinquent or in process of foreclosure		15		–		64		1		–		–		87		152		1

Total(b)		1,025	$	1,631	$	5,078	$	2,611	$	1,803	$	1,064	$	1,492	$	13,679		100	%

Valuation allowance			$	5	$	99	$	17	$	28	$	1	$	43	$	193		1	%

(b) Does not reflect valuation allowances.

Schedule of changes in the allowance for losses on Mortgage and other loans receivable




	2012									2011
Nine Months Ended September 30, (in millions)	2012									2011
Nine Months Ended September 30, (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		(12	)		(164	)		(176	)		(40	)		(46	)		(86	)
Recoveries of loans previously charged off		6			–			6			36			–			36

Net charge-offs		(6	)		(164	)		(170	)		(4	)		(46	)		(50	)
Provision for loan losses		(106	)		31			(75	)		(62	)		50			(12	)
Other		–			(7	)		(7	)		(55	)		–			(55	)

Allowance, end of period	$	193	^*	$	295		$	488		$	349	*	$	412		$	761

VARIABLE INTEREST ENTITIES (Tables)

9 Months Ended

Sep. 30, 2012

VARIABLE INTEREST ENTITIES

Schedule of Consolidated Variable Interest Entities




	VIE Assets^(a)					VIE Liabilities
(in billions)	September 30, 2012			December 31, 2011		September 30, 2012		December 31, 2011

AIA/ALICO SPVs	$	0.6	^(b)	$	14.2	$	0.1	$	0.1
Real estate and investment funds(c)		1.1			1.5		0.3		0.4
Structured investment vehicles		1.6			1.0		0.1		–
Affordable housing partnerships		2.3			2.5		.2		0.1
Other		3.3			3.6		1.0		2.0

Total	$	8.9		$	22.8	$	1.7	$	2.6

(a) The assets of each VIE can be used only to settle specific obligations of that VIE.

(c) At both September 30, 2012 and December 31, 2011, off-balance sheet exposure with respect to real estate and investments funds was $0.1 billion.

Schedule of Unconsolidated Variable Interest Entities

			Maximum Exposure to Loss


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

September 30, 2012
Real estate and investment funds	$	14.3	$	1.8	$	0.2	$	2.0
Affordable housing partnerships		0.5		0.5		–		0.5
Other		1.1		0.1		–		0.1

Total	$	15.9	$	2.4	$	0.2	$	2.6

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)	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011

Assets:
Available for sale securities	$	0.5	$	0.4	$	–	$	–
Trading securities		1.0		1.3		0.1		7.1
Mortgage and other loans receivable		0.5		0.5		–		–
Other invested assets*		4.3		17.2		2.3		2.6
Other asset accounts		2.6		3.4		–		–

Total	$	8.9	$	22.8	$	2.4	$	9.7

Liabilities:
Other long-term debt	$	0.9	$	1.7	$	–	$	–
Other liability accounts		0.8		0.9		–		–

Total	$	1.7	$	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)

9 Months Ended

Sep. 30, 2012

DERIVATIVES AND HEDGE ACCOUNTING

Notional amounts and fair values of derivative instruments




	September 30, 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)	$	–	$	–	$	366	$	24	$	–	$	–	$	481	$	38
Foreign exchange contracts		–		–		–		–		–		–		180		1
Derivatives not designated as hedging instruments:
Interest rate contracts(b)		66,896		7,285		68,939		6,522		72,660		8,286		73,248		6,870
Foreign exchange contracts		5,080		53		2,969		166		3,278		145		3,399		178
Equity contracts(c)		5,546		264		22,714		1,479		4,748		263		18,911		1,126
Commodity contracts		633		142		626		143		691		136		861		146
Credit contracts		167		60		17,618		2,349		407		89		25,857		3,366
Other contracts(d)		19,092		68		1,610		276		24,305		741		2,125		372

Total derivatives not designated as hedging instruments		97,414		7,872		114,476		10,935		106,089		9,660		124,401		12,058

Total derivatives	$	97,414	$	7,872	$	114,842	$	10,959	$	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.

(d) Consist primarily of contracts with multiple underlying exposures.

Fair values of derivative assets and liabilities in the Consolidated Balance Sheet




	September 30, 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

Global Capital Markets derivatives	$	87,274	$	6,827		$	85,934	$	8,428		$	94,036	$	8,472		$	98,442	$	10,021
All other derivatives(a)		10,140		1,045			28,908		2,531			12,053		1,188			26,620		2,076

Total derivatives, gross	$	97,414		7,872		$	114,842		10,959		$	106,089		9,660		$	125,062		12,097

Counterparty netting(b)				(3,219	)				(3,219	)				(3,660	)				(3,660	)
Cash collateral(c)				(1,197	)				(2,118	)				(1,501	)				(2,786	)

Total derivatives, net				3,456					5,622					4,499					5,651

Less: Bifurcated embedded derivatives				–					1,308					–					918

Total derivatives on consolidated balance sheet			$	3,456				$	4,314				$	4,499				$	4,733

(b) Represents netting of derivative exposures covered by a qualifying master netting agreement.

Effect of AIG's derivative instruments in fair value hedging relationships in the Consolidated Statement of Operations




	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2012		2011		2012			2011

Interest rate contracts(a):
Loss recognized in earnings on derivatives	$	–	$	–	$	(2	)	$	(3	)
Gain recognized in earnings on hedged items(b)		19		39		99			127
Loss recognized in earnings for ineffective portion and amount excluded from effectiveness testing		–		–		–			(1	)

Effect of AIG's derivative instruments in cash flow hedging relationships in the Consolidated Statement of Operations




	Three Months Ended September 30,						Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

Interest rate contracts(a):
Loss recognized in OCI on derivatives	$	(1	)	$	(2	)	$	(2	)	$	(5	)
Loss reclassified from Accumulated OCI into earnings(b)		(4	)		(15	)		(13	)		(49	)

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 September 30,						Nine Months Ended September 30,
(in millions)	2012			2011			2012			2011

By Derivative Type:
Interest rate contracts(a)	$	(220	)	$	523		$	(208	)	$	270
Foreign exchange contracts		(93	)		84			(3	)		80
Equity contracts(b)		(206	)		416			(601	)		379
Commodity contracts		2			(1	)		–			6
Credit contracts		200			(83	)		414			218
Other contracts		(4	)		(741	)		(56	)		(741	)

Total	$	(321	)	$	198		$	(454	)	$	212

By Classification:
Policy fees	$	42		$	29		$	115		$	80
Net investment income		–			2			1			6
Net realized capital gains (losses)		(183	)		(163	)		(843	)		13
Other income (losses)		(180	)		330			273			113

Total	$	(321	)	$	198		$	(454	)	$	212

(a) Includes cross currency swaps.

Net notional amount, fair value of derivative (asset) liability and unrealized market valuation gain (loss)




									Unrealized Market Valuation Gain (Loss)^(c)
					Fair Value of Derivative (Asset) Liability at^(b)(c)				Unrealized Market Valuation Gain (Loss)^(c)
	Net Notional Amount^(a)				Fair Value of Derivative (Asset) Liability at^(b)(c)				Three Months Ended September 30,					Nine Months Ended September 30,
	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011		Three Months Ended September 30,					Nine Months Ended September 30,
(in millions)	September 30, 2012		December 31, 2011		September 30, 2012		December 31, 2011		2012		2011			2012		2011

Regulatory Capital:
Corporate loans	$	898	$	1,830	$	–	$	–	$	–	$	–		$	–	$	–
Prime residential mortgages		139		3,653		–		–		–		–			–		6
Other		–		887		–		9		6		(10	)		9		–

Total		1,037		6,370		–		9		6		(10	)		9		6

Arbitrage:
Multi-sector CDOs(d)		4,363		5,476		2,183		3,077		142		47			336		230
Corporate debt/CLOs(e)		11,707		11,784		74		127		42		(33	)		53		11

Total		16,070		17,260		2,257		3,204		184		14			389		241

Mezzanine tranches		–		989		–		10		14		(1	)		3		(15	)

Total	$	17,107	$	24,619	$	2,257	$	3,223	$	204	$	3		$	401	$	232

(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.

(e) Corporate debt/CLOs include $1.2 billion in net notional amount of credit default swaps written on the super senior tranches of CLOs at both September 30, 2012 and December 31, 2011.

- 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

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 8

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

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-Topic 815

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

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-Paragraph 1

-Subparagraph (SX 210.4-08.(n)(2))

-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

+ Details

TOTAL EQUITY (Tables)

9 Months Ended

Sep. 30, 2012

TOTAL EQUITY

Rollforward of common stock outstanding

	Preferred Stock


	AIG Series E			AIG Series F			AIG Series C			AIG Series G			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

Nine Months Ended September 30, 2012
Shares, beginning of year		–			–			–			–			1,906,568,099		(9,746,617	)		1,896,821,482
Issuances		–			–			–			–			44,567		658,549			703,116
Shares repurchased		–			–			–			–			–		(421,228,855	)		(421,228,855	)

Shares, end of period		–			–			–			–			1,906,612,666		(430,316,923	)		1,476,295,743

Nine Months Ended September 30, 2011
Shares, beginning of year		400,000			300,000			100,000			–			147,124,067		(6,660,908	)		140,463,159
Issuances		–			–			–			20,000			100,113,761		–			100,113,761
Settlement of equity unit stock purchase contracts		–			–			–			–			3,606,417		–			3,606,417
Shares exchanged*		(400,000	)		(300,000	)		(100,000	)		–			1,655,037,962		(11,678	)		1,655,026,284
Shares cancelled		–			–			–			(20,000	)		–		–			–

Shares, end of period		–			–			–			–			1,905,882,207		(6,672,586	)		1,899,209,621

* See Note 1 to the Consolidated Financial Statements in the 2011 Annual Report for further discussion of shares exchanged in connection with the Recapitalization.

Summarizes information of public offerings of common stock by Department of the Treasury, as selling shareholder

			U.S. Treasury				AIG^*


(dollars in millions, except share-price data)	Price		Shares Sold		Amount		Shares Purchased		Amount

May 2011 Offering	$	29.00		200,000,000	$	5,800		–	$	–
2012 Offerings:
March Offering		29.00		206,896,552		6,000		103,448,276		3,000
May Offering		30.50		188,524,589		5,750		65,573,770		2,000
August Offering		30.50		188,524,590		5,750		98,360,656		3,000
September Offering		32.50		636,923,075		20,700		153,846,153		5,000

				1,420,868,806	$	44,000		421,228,855	$	13,000

* Shares purchased by AIG in each of the 2012 offerings were purchased pursuant to AIG Board of Directors authorization.

Accumulated Other Comprehensive Income (Loss)

(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		2,045			7,901			–			–			–			9,946
Change in deferred acquisition costs adjustment and other		(37	)		(866	)		–			–			–			(903	)
Change in future policy benefits		(71	)		(438	)		–			–			–			(509	)
Change in foreign currency translation adjustments		–			–			(167	)		–			–			(167	)
Change in net derivative gains arising from cash flow hedging activities		–			–			–			11			–			11
Net actuarial gain		–			–			–			–			102			102
Prior service credit		–			–			–			–			(36	)		(36	)
Deferred tax asset (liability)		(810	)		(1,980	)		71			14			(5	)		(2,710	)

Total other comprehensive income (loss)		1,127			4,617			(96	)		25			61			5,734
Noncontrolling interests		–			7			(7	)		–			–			–

Balance, September 30, 2012, net of tax	$	391		$	12,501		$	(1,117	)	$	8		$	(896	)	$	10,887

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		149			5,607			–			–			–			5,756
Change in deferred acquisition costs adjustment and other		99			(679	)		–			–			–			(580	)
Change in future policy benefits		–			(1,665	)		–			–			–			(1,665	)
Change in foreign currency translation adjustments		–			–			428			–			–			428
Change in net derivative losses arising from cash flow hedging activities		–			–			–			45			–			45
Net actuarial loss		–			–			–			–			(943	)		(943	)
Prior service credit		–			–			–			–			395			395
Change attributable to divestitures and deconsolidations		23			(3,643	)		(1,681	)		–			260			(5,041	)
Deferred tax asset (liability)		(166	)		(574	)		442			(31	)		98			(231	)

Total other comprehensive income (loss)		105			(954	)		(811	)		14			(190	)		(1,836	)
Acquisition of noncontrolling interest		–			43			62			–			(17	)		88
Noncontrolling interests		3			(160	)		4			–			–			(153	)

Balance, September 30, 2011, net of tax	$	(557	)	$	8,420		$	(819	)	$	(20	)	$	(1,076	)	$	5,948

Other comprehensive income (loss) 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 September 30, 2012
Unrealized change arising during period	$	922		$	3,600		$	258		$	(1	)	$	1		$	4,780
Less: Reclassification adjustments included in net income		16			198			–			(4	)		(19	)		191

Total other comprehensive income, before income tax expense (benefit)		906			3,402			258			3			20			4,589
Less: Income tax expense (benefit)		409			1,071			18			1			(9	)		1,490

Total other comprehensive income, net of income tax expense (benefit)	$	497		$	2,331		$	240		$	2		$	29		$	3,099

Three Months Ended September 30, 2011
Unrealized change arising during period	$	(235	)	$	2,067		$	(529	)	$	(2	)	$	(576	)	$	725
Less: Reclassification adjustments included in net income		31			2,972			175			(16	)		(30	)		3,132

Total other comprehensive loss, before income tax expense (benefit)		(266	)		(905	)		(704	)		14			(546	)		(2,407	)
Less: Income tax expense (benefit)		(82	)		1,103			(122	)		71			(207	)		763

Total other comprehensive loss, net of income tax expense (benefit)	$	(184	)	$	(2,008	)	$	(582	)	$	(57	)	$	(339	)	$	(3,170	)

Nine Months Ended September 30, 2012
Unrealized change arising during period	$	1,949		$	8,072		$	(167	)	$	(2	)	$	5		$	9,857
Less: Reclassification adjustments included in net income		12			1,475			–			(13	)		(61	)		1,413

Total other comprehensive income (loss), before income tax expense (benefit)		1,937			6,597			(167	)		11			66			8,444
Less: Income tax expense (benefit)		810			1,980			(71	)		(14	)		5			2,710

Total other comprehensive income (loss), net of income tax expense (benefit)	$	1,127		$	4,617		$	(96	)	$	25		$	61		$	5,734

Nine Months Ended September 30, 2011
Unrealized change arising during period	$	265		$	4,570		$	428		$	(5	)	$	(595	)	$	4,663
Less: Reclassification adjustments included in net income		(6	)		4,950			1,681			(50	)		(307	)		6,268

Total other comprehensive income (loss), before income tax expense (benefit)		271			(380	)		(1,253	)		45			(288	)		(1,605	)
Less: Income tax expense (benefit)		166			574			(442	)		31			(98	)		231

Total other comprehensive income (loss), net of income tax expense (benefit)	$	105		$	(954	)	$	(811	)	$	14		$	(190	)	$	(1,836	)

- 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.

+ References

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 210

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.5-02.28,29)

-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 480

-SubTopic 10

-Section S99

-Paragraph 1

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 150

-Paragraph 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 FASB

-Name Accounting Standards Codification

-Topic 505

-SubTopic 10

-Section 50

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(d),(e))

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 29

-Article 5

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

-Publisher FASB

-Name Accounting Standards Codification

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-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 30

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Reference 11: http://www.xbrl.org/2003/role/presentationRef

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-Name Accounting Standards Codification

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-Name Accounting Standards Codification

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-Publisher FASB

-Name Accounting Standards Codification

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-SubTopic 10

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+ Details

NONCONTROLLING INTERESTS (Tables)

9 Months Ended

Sep. 30, 2012

NONCONTROLLING INTERESTS

Rollforward of non-controlling interests

	Redeemable Noncontrolling interests

	Redeemable Noncontrolling interests									Non-redeemable Noncontrolling interests
	Held by Department of Treasury									Non-redeemable Noncontrolling interests
(in millions)	Held by Department of Treasury			Other			Total			Held by FRBNY			Other			Total

Nine Months Ended September 30, 2012
Balance, beginning of year	$	8,427		$	96		$	8,523		$	–		$	855		$	855

Repayment to Department of the Treasury		(8,635	)		–			(8,635	)		–			–			–
Net contributions (distributions)		–			59			59			–			(117	)		(117	)
Consolidation (deconsolidation)		–			(5	)		(5	)		–			–			–
Comprehensive income:
Net income		208			5			213			–			40			40
Other comprehensive income (loss), net of tax:
Unrealized gains on investments		–			4			4			–			3			3
Foreign currency translation adjustments		–			–			–			–			(7	)		(7	)

Total other comprehensive income (loss), net of tax		–			4			4			–			(4	)		(4	)

Total comprehensive income		208			9			217			–			36			36

Other		–			–			–			–			(26	)		(26	)

Balance, end of period	$	–		$	159		$	159		$	–		$	748		$	748

Nine Months Ended September 30, 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		(11,453	)		–			(11,453	)		–			–			–
Net distributions		–			(16	)		(16	)		–			(34	)		(34	)
Deconsolidation		–			(309	)		(309	)		–			(123	)		(123	)
Acquisition of noncontrolling interest		–			–			–			–			(487	)		(487	)
Comprehensive income (loss):
Net income (loss)		464			(4	)		460			74			51			125
Other comprehensive income (loss), net of tax:
Unrealized losses on investments		–			–			–			–			(157	)		(157	)
Foreign currency translation adjustments		–			–			–			–			4			4

Total other comprehensive income (loss), net of tax		–			–			–			–			(153	)		(153	)

Total comprehensive income (loss)		464			(4	)		460			74			(102	)		(28	)

Other		–			–			–			–			(45	)		(45	)

Balance, end of period	$	9,303		$	105		$	9,408		$	–		$	771		$	771

EARNINGS (LOSS) PER SHARE (EPS) (Tables)

9 Months Ended

Sep. 30, 2012

EARNINGS (LOSS) PER SHARE (EPS)

Computation of basic and diluted EPS




	Three Months Ended September 30,					Nine Months Ended September 30,
(dollars in millions, except per share data)	2012		2011			2012		2011

Numerator for EPS:
Income (loss) from continuing operations	$	1,860	$	(3,605	)	$	7,640	$	(2,599	)
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–		145			208		538
Other		5		19			45		28

Total net income from continuing operations attributable to noncontrolling interests		5		164			253		566

Net income (loss) attributable to AIG from continuing operations		1,855		(3,769	)		7,387		(3,165	)

Income (loss) from discontinued operations	$	1	$	(221	)	$	9	$	2,327
Net income (loss) from discontinued operations attributable to noncontrolling interests		–		–			–		19

Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS		1		(221	)		9		2,308

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	$	1,855	$	(3,769	)	$	7,387	$	(3,977	)

Denominator for EPS:
Weighted average shares outstanding – basic		1,642,472,814		1,899,500,628			1,757,955,937		1,765,905,779
Dilutive shares		29,437		–			28,217		–

Weighted average shares outstanding – diluted*		1,642,502,251		1,899,500,628			1,757,984,154		1,765,905,779

EPS attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations	$	1.13	$	(1.99	)	$	4.21	$	(2.25	)
Income (loss) from discontinued operations	$	–	$	(0.11	)	$	–	$	1.30
Diluted:
Income (loss) from continuing operations	$	1.13	$	(1.99	)	$	4.21	$	(2.25	)
Income (loss) from discontinued operations	$	–	$	(0.11	)	$	–	$	1.30

EMPLOYEE BENEFITS (Tables)

9 Months Ended

Sep. 30, 2012

EMPLOYEE BENEFITS

Components of net periodic benefit cost

	Pension									Postretirement


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

Three Months Ended September 30, 2012
Components of net periodic benefit cost:
Service cost	$	40		$	13		$	53		$	1		$	1		$	2
Interest cost		49			8			57			3			1			4
Expected return on assets		(60	)		(5	)		(65	)		–			–			–
Amortization of prior service (credit) cost		(8	)		(1	)		(9	)		(3	)		–			(3	)
Amortization of net (gain) loss		29			3			32			–			–			–
Other		–			–			–			–			(1	)		(1	)

Net periodic benefit cost	$	50		$	18		$	68		$	1		$	1		$	2

Three Months Ended September 30, 2011
Components of net periodic benefit cost:
Service cost	$	40		$	14		$	54		$	3		$	1		$	4
Interest cost		54			9			63			3			1			4
Expected return on assets		(64	)		(6	)		(70	)		–			–			–
Amortization of prior service (credit) cost		–			(1	)		(1	)		–			–			–
Amortization of net (gain) loss		9			3			12			–			–			–
Other		–			6			6			–			–			–

Net periodic benefit cost	$	39		$	25		$	64		$	6		$	2		$	8

Amount associated with discontinued operations	$	–		$	2		$	2		$	–		$	1		$	1

	Pension									Postretirement


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

Nine Months Ended September 30, 2012
Components of net periodic benefit cost:
Service cost	$	116		$	39		$	155		$	4		$	2		$	6
Interest cost		149			25			174			8			2			10
Expected return on assets		(180	)		(15	)		(195	)		–			–			–
Amortization of prior service (credit) cost		(25	)		(3	)		(28	)		(8	)		–			(8	)
Amortization of net (gain) loss		87			10			97			–			–			–
Other		–			–			–			–			(1	)		(1	)

Net periodic benefit cost	$	147		$	56		$	203		$	4		$	3		$	7

Nine Months Ended September 30, 2011
Components of net periodic benefit cost:
Service cost	$	114		$	52		$	166		$	7		$	3		$	10
Interest cost		158			28			186			10			2			12
Expected return on assets		(190	)		(19	)		(209	)		–			–			–
Amortization of prior service (credit) cost		1			(3	)		(2	)		1			–			1
Amortization of net (gain) loss		30			12			42			–			–			–
Other		–			6			6			–			–			–

Net periodic benefit cost	$	113		$	76		$	189		$	18		$	5		$	23

Amount associated with discontinued operations	$	–		$	13		$	13		$	–		$	2		$	2

DISCONTINUED OPERATIONS (Tables)

9 Months Ended

Sep. 30, 2012

DISCONTINUED OPERATIONS

Summary of income (loss) from discontinued operations

(in millions)	Three Months Ended September 30, 2011			Nine Months Ended September 30, 2011



Revenues:
Premiums	$	915		$	5,012
Net investment income		423			1,632
Net realized capital gains (losses)		(120	)		844
Other income		–			5

Total revenues		1,218			7,493

Benefits, claims and expenses		1,228			6,324
Interest expense allocation		–			2

Income (loss) from discontinued operations		(10	)		1,167

Gain on sales		32			2,341

Income from discontinued operations, before tax income tax expense		22			3,508

Income tax expense		243			1,181

Income (loss) from discontinued operations, net of income tax	$	(221	)	$	2,327

- 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)

9 Months Ended

Sep. 30, 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



September 30, 2012
Assets:
Short-term investments	$	9,056	$	–	$	15,611		$	(2,110	)	$	22,557
Other investments(a)		12,418		–		374,641			499			387,558

Total investments		21,474		–		390,252			(1,611	)		410,115
Cash		125		–		1,483			–			1,608
Loans to subsidiaries(b)		38,402		–		(33,862	)		(4,540	)		–
Debt issuance costs		189		–		279			–			468
Investment in consolidated subsidiaries(b)		70,499		43,235		(31,570	)		(82,164	)		–
Other assets, including current and deferred income taxes		25,947		257		120,087			(7,759	)		138,532

Total assets	$	156,636	$	43,492	$	446,669		$	(96,074	)	$	550,723

Liabilities:
Insurance liabilities	$	–	$	–	$	281,731		$	(288	)	$	281,443
Other long-term debt		36,626		1,638		34,982			502			73,748
Other liabilities, including intercompany balances(a)(c)		17,256		837		84,586			(9,720	)		92,959
Loans from subsidiaries(b)		1,088		851		2,727			(4,666	)		–

Total liabilities		54,970		3,326		404,026			(14,172	)		448,150

Other		–		–		51			108			159

Redeemable noncontrolling interests		–		–		51			108			159

Total AIG shareholders' equity		101,666		40,166		42,228			(82,394	)		101,666
Non-redeemable noncontrolling interests		–		–		364			384			748

Total equity		101,666		40,166		42,592			(82,010	)		102,414

Total liabilities and equity	$	156,636	$	43,492	$	446,669		$	(96,074	)	$	550,723

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)(d)		80,990		32,361		(11,463	)		(101,888	)		–
Other assets, including current and deferred income taxes		24,595		2,704		117,231			(4,575	)		139,955

Total assets	$	165,395	$	35,078	$	563,014		$	(211,127	)	$	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)(d)		15,635		2,402		75,132			(9,494	)		83,675
Loans from subsidiaries(b)		12,316		249		(12,565	)		–			–

Total liabilities		63,857		4,289		483,597			(110,299	)		441,444

Redeemable noncontrolling interests (see Note 11):
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		78,996			(109,785	)		101,538
Non-redeemable noncontrolling interests		–		–		392			463			855

Total equity		101,538		30,789		79,388			(109,322	)		102,393

Total liabilities and equity	$	165,395	$	35,078	$	563,014		$	(211,127	)	$	552,360

(a) Includes intercompany derivative asset positions, which are reported at fair value before credit valuation adjustment.

(b) Eliminated in consolidation.

(d) Prior period amounts have been conformed to the current period presentation.

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 September 30, 2012
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	1,811		$	1,612		$	–		$	(3,423	)	$	–
Change in fair value of ML III		330			–			–			–			330
Other income(b)		373			–			17,006			(61	)		17,318

Total revenues		2,514			1,612			17,006			(3,484	)		17,648

Expenses:
Other interest expense(c)		550			70			428			(60	)		988
Other expenses		173			–			13,892			–			14,065

Total expenses		723			70			14,320			(60	)		15,053

Income (loss) from continuing operations before income tax expense (benefit)		1,791			1,542			2,686			(3,424	)		2,595
Income tax expense (benefit)		(65	)		117			683			–			735

Income (loss) from continuing operations		1,856			1,425			2,003			(3,424	)		1,860
Income from discontinued operations		–			–			1			–			1

Net income (loss)		1,856			1,425			2,004			(3,424	)		1,861
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred
interests		–			–			–			–			–
Other		–			–			5			–			5

Total net income attributable to noncontrolling interests		–			–			5			–			5

Net income (loss) attributable to AIG	$	1,856		$	1,425		$	1,999		$	(3,424	)	$	1,856

Three Months Ended September 30, 2011
Revenues:
Equity in earnings of consolidated subsidiaries(a)(d)	$	(2,604	)	$	(383	)	$	–		$	2,987		$	–
Change in fair value of ML III		(484	)		–			(447	)		–			(931	)
Other income(b)(d)		406			831			12,667			(254	)		13,650

Total revenues		(2,682	)		448			12,220			2,733			12,719

Expenses:
Other interest expense(c)		712			64			448			(254	)		970
Other expenses		230			–			15,789			–			16,019

Total expenses		942			64			16,237			(254	)		16,989

Income (loss) from continuing operations before income tax expense (benefit)		(3,624	)		384			(4,017	)		2,987			(4,270	)
Income tax expense (benefit)		161			(17	)		(809	)		–			(665	)

Income (loss) from continuing operations		(3,785	)		401			(3,208	)		2,987			(3,605	)
Loss from discontinued operations		(205	)		–			(16	)		–			(221	)

Net income (loss)		(3,990	)		401			(3,224	)		2,987			(3,826	)
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			145			145
Other		–			–			19			–			19

Total income from continuing operations attributable to noncontrolling interests		–			–			19			145			164
Income (loss) from discontinued operations attributable to noncontrolling interests		–			–			–			–			–

Total net income attributable to noncontrolling interests		–			–			19			145			164

Net income (loss) attributable to AIG	$	(3,990	)	$	401		$	(3,243	)	$	2,842		$	(3,990	)

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



Nine Months Ended September 30, 2012
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	5,757		$	1,716		$	–		$	(7,473	)	$	–
Change in fair value of ML III		2,287			–			601			–			2,888
Other income(b)		1,074			49			49,533			(330	)		50,326

Total revenues		9,118			1,765			50,134			(7,803	)		53,214

Expenses:
Other interest expense(c)		1,719			136			1,368			(328	)		2,895
Net loss on extinguishment of debt		9			–			23			–			32
Other expenses		1,278			–			40,079			–			41,357

Total expenses		3,006			136			41,470			(328	)		44,284

Income (loss) from continuing operations before income tax expense (benefit)		6,112			1,629			8,664			(7,475	)		8,930
Income tax expense (benefit)		(1,284	)		580			1,994			–			1,290

Income (loss) from continuing operations		7,396			1,049			6,670			(7,475	)		7,640
Income from discontinued operations		–			–			9			–			9

Net income (loss)		7,396			1,049			6,679			(7,475	)		7,649
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			208			208
Other		–			–			45			–			45

Total net income attributable to noncontrolling interests		–			–			45			208			253

Net income (loss) attributable to AIG	$	7,396		$	1,049		$	6,634		$	(7,683	)	$	7,396

Nine Months Ended September 30, 2011
Revenues:
Equity in earnings of consolidated subsidiaries(a)(d)	$	3,574		$	127		$	–		$	(3,701	)	$	–
Change in fair value of ML III		(831	)		–			(23	)		–			(854	)
Other income(b)(d)		639			1,297			46,596			(840	)		47,692

Total revenues		3,382			1,424			46,573			(4,541	)		46,838

Expenses:
Interest expense on FRBNY Credit Facility		72			–			–			(2	)		70
Other interest expense(c)		2,194			223			1,408			(840	)		2,985
Net loss on extinguishment of debt		3,331			–			61			–			3,392
Other expenses		502			–			43,675			–			44,177

Total expenses		6,099			223			45,144			(842	)		50,624

Income (loss) from continuing operations before income tax benefit		(2,717	)		1,201			1,429			(3,699	)		(3,786	)
Income tax benefit		(926	)		(13	)		(248	)		–			(1,187	)

Income (loss) from continuing operations		(1,791	)		1,214			1,677			(3,699	)		(2,599	)
Income (loss) from discontinued operations		934			–			1,395			(2	)		2,327

Net income (loss)		(857	)		1,214			3,072			(3,701	)		(272	)
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			538			538
Other		–			–			28			–			28

Total income from continuing operations attributable to
noncontrolling interests		–			–			28			538			566
Income from discontinued operations attributable to
noncontrolling interests		–			–			19			–			19

Total net income attributable to noncontrolling interests		–			–			47			538			585

Net income (loss) attributable to AIG	$	(857	)	$	1,214		$	3,025		$	(4,239	)	$	(857	)

(a) Eliminated in consolidation.

(d) Prior period amounts have been conformed to the current period presentation.

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 September 30, 2012
Net income (loss)	$	1,856		$	1,425	$	2,004		$	(3,424	)	$	1,861
Other comprehensive income (loss)		3,096			1,995		3,096			(5,088	)		3,099

Comprehensive income (loss)		4,952			3,420		5,100			(8,512	)		4,960
Total comprehensive income attributable to noncontrolling interests		–			–		8			–			8

Comprehensive income (loss) attributable to AIG	$	4,952		$	3,420	$	5,092		$	(8,512	)	$	4,952

Three Months Ended September 30, 2011
Net income (loss)	$	(3,990	)	$	401	$	(3,224	)	$	2,987		$	(3,826	)
Other comprehensive income (loss)		(3,064	)		432		(2,180	)		1,642			(3,170	)

Comprehensive income (loss)		(7,054	)		833		(5,404	)		4,629			(6,996	)
Total comprehensive income (loss) attributable to noncontrolling interests		–			–		(87	)		145			58

Comprehensive income (loss) attributable to AIG	$	(7,054	)	$	833	$	(5,317	)	$	4,484		$	(7,054	)

Nine Months Ended September 30, 2012
Net income (loss)	$	7,396		$	1,049	$	6,679		$	(7,475	)	$	7,649
Other comprehensive income (loss)		5,734			3,754		6,791			(10,545	)		5,734

Comprehensive income (loss)		13,130			4,803		13,470			(18,020	)		13,383
Total comprehensive income attributable to noncontrolling interests		–			–		45			208			253

Comprehensive income (loss) attributable to AIG	$	13,130		$	4,803	$	13,425		$	(18,228	)	$	13,130

Nine Months Ended September 30, 2011
Net income (loss)	$	(857	)	$	1,214	$	3,072		$	(3,701	)	$	(272	)
Other comprehensive income (loss)		(1,683	)		1,537		(1,995	)		305			(1,836	)

Comprehensive income (loss)		(2,540	)		2,751		1,077			(3,396	)		(2,108	)
Total comprehensive income (loss) attributable to noncontrolling interests		–			–		(106	)		538			432

Comprehensive income (loss) attributable to AIG	$	(2,540	)	$	2,751	$	1,183		$	(3,934	)	$	(2,540	)

Condensed Consolidating Statement of Cash Flows

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



Nine Months Ended September 30, 2012
Net cash (used in) provided by operating activities	$	1,275		$	2,243		$	(679	)	$	2,839

Cash flows from investing activities:
Sales of investments		9,806			–			65,405			75,211
Purchase of investments		(4,339	)		–			(53,355	)		(57,694	)
Loans to subsidiaries – net		1,730			–			(1,730	)		–
Contributions to subsidiaries – net		954			–			(954	)		–
Net change in restricted cash		(381	)		–			1,076			695
Net change in short-term investments		4,881			–			(3,740	)		1,141
Net change in derivative assets and liabilities		262			–			(380	)		(118	)
Other, net		(10	)		–			(67	)		(77	)

Net cash provided by investing activities		12,903			–			6,255			19,158

Cash flows from financing activities:
Issuance of long-term debt		3,754			–			4,231			7,985
Repayments of long-term debt		(2,995	)		–			(6,852	)		(9,847	)
Purchase of Common Stock		(13,000	)		–			–			(13,000	)
Intercompany loans – net		(1,944	)		(2,256	)		4,200			–
Other, net		(44	)		–			(6,948	)		(6,992	)

Net cash (used in) financing activities		(14,229	)		(2,256	)		(5,369	)		(21,854	)

Effect of exchange rate changes on cash		–			–			(9	)		(9	)

Change in cash		(51	)		(13	)		198			134
Cash at beginning of period		176			13			1,285			1,474

Cash at end of period	$	125		$	–		$	1,483		$	1,608



Nine Months Ended September 30, 2011
Net cash (used in) provided by operating activities – continuing operations	$	(4,473	)	$	1,033		$	(1,131	)	$	(4,571	)
Net cash provided by operating activities – discontinued operations		–			–			3,370			3,370

Net cash (used in) provided by operating activities		(4,473	)		1,033			2,239			(1,201	)

Cash flows from investing activities:
Sales of investments		2,425			–			63,818			66,243
Sales of divested businesses, net		1,075			–			(488	)		587
Purchase of investments		(8	)		–			(77,636	)		(77,644	)
Loans to subsidiaries – net		4,031			–			(4,031	)		–
Contributions to subsidiaries – net*		(16,878	)		–			16,878			–
Net change in restricted cash		2,001			–			24,407			26,408
Net change in short-term investments		(9,892	)		–			25,302			15,410
Net change in derivative assets and liabilities		1,223			–			(241	)		982
Other, net*		(58	)		–			(260	)		(318	)

Net cash (used in) provided by investing activities – continuing operations		(16,081	)		–			47,749			31,668
Net cash provided by investing activities – discontinued operations		–			–			4,478			4,478

Net cash (used in) provided by investing activities		(16,081	)		–			52,227			36,146

Cash flows from financing activities:
FRBNY credit facility repayments		(14,622	)		–			–			(14,622	)
Issuance of long-term debt		2,135			–			4,162			6,297
Repayments of long-term debt		(4,450	)		–			(10,494	)		(14,944	)
Proceeds from drawdown on the Department of the Treasury Commitment*		20,292			–			–			20,292
Settlement of equity unit stock purchase contracts		5,055			–			–			5,055
Intercompany loans – net		12,408			(1,033	)		(11,375	)		–
Other, net*		(148	)		–			(35,432	)		(35,580	)

Net cash (used in) provided by financing activities – continuing operations		20,670			(1,033	)		(53,139	)		(33,502	)
Net cash (used in) financing activities – discontinued operations		–			–			(1,942	)		(1,942	)

Net cash (used in) provided by financing activities		20,670			(1,033	)		(55,081	)		(35,444	)

Effect of exchange rate changes on cash		–			–			37			37

Change in cash		116			–			(578	)		(462	)
Cash at beginning of period		49			–			1,509			1,558
Change in cash of businesses held for sale		–			–			446			446

Cash at end of period	$	165		$	–		$	1,377		$	1,542

* Includes activities related to the Recapitalization.

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 nine months ended September 30, 2012 for:
Interest:
Third party	$	(1,535	)	$	(109	)	$	(1,412	)	$	(3,056	)
Intercompany		(129	)		(49	)		178			–
Taxes:
Income tax authorities	$	(11	)	$	–		$	(392	)	$	(403	)
Intercompany		(884	)		(41	)		925			–

Cash (paid) received during the nine months ended September 30, 2011 for:
Interest:
Third party*	$	(6,337	)	$	(96	)	$	(1,519	)	$	(7,952	)
Intercompany		(258	)		(149	)		407			–
Taxes:
Income tax authorities	$	13		$	–		$	(656	)	$	(643	)
Intercompany		(793	)		–			793			–

* 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




Nine Months Ended September 30, (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		–		18,284
Other capital contributions – net		381		412

- 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 $)	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
BASIS OF PRESENTATION
Common stock, par value (in dollars per share)	$ 2.50	$ 2.50
Interest ownership by the Department of the Treasury (as a percent)	15.90%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011
Assets:
Current and deferred income taxes	$ 14,119	$ 17,802
Deferred policy acquisition costs	8,204	8,937
Other assets	11,698	12,782
Total assets	550,723	552,360
AIG shareholders' equity:
Retained Earnings	18,170	10,774
Accumulated other comprehensive income (loss)	10,887	5,153
Total AIG shareholders' equity	101,666	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 (loss)		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 (loss)		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 FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 14

-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 2: 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=20435746&loc=d3e637-108580

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 14A

-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: 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 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph 31

-Article 5

Reference 6: 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.

Reference 7: 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 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Article 3

+ 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 SEC

-Name Regulation S-X (SX)

-Number 210

-Section 16

-Article 12

Reference 2: 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 3: 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

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 7

-Article 7

Reference 5: 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 6: 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 7: 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 8: 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 9: 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 10: 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.

+ 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		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Statement of Operations:
Total net realized capital gains (losses)	$ 647	$ 607	$ 794	$ (53)
Total revenues	17,648	12,719	53,214	46,838
Interest credited to policyholder account balances	1,191	1,146	3,324	3,366
Amortization of deferred acquisition costs	1,522	1,540	4,341	4,093
Other acquisition and other insurance expenses	2,214	2,067	6,736	6,164
Total benefits, claims and expenses	15,053	16,989	44,284	50,624
Income (loss) from continuing operations before income tax benefit	2,595	(4,270)	8,930	(3,786)
Income tax expense (benefit)	735	(665)	1,290	(1,187)
Income (Loss) from Continuing Operations	1,860	(3,605)	7,640	(2,599)
Income (loss) from discontinued operations, net of income tax expense (benefit)	1	(221)	9	2,327
Net income (loss)	1,861	(3,826)	7,649	(272)
Net income (loss) attributable to AIG	1,856	(3,990)	7,396	(857)
Net income (loss) attributable to AIG common shareholders	1,856	(3,990)	7,396	(1,669)
Basic:
Income (loss) from continuing operations (in dollars per share)	$ 1.13	$ (1.99)	$ 4.21	$ (2.25)
Income (loss) from discontinued operations (in dollars per share)		$ (0.11)		$ 1.30
Diluted:
Income (loss) from continuing operations (in dollars per share)	$ 1.13	$ (1.99)	$ 4.21	$ (2.25)
Income (loss) from discontinued operations (in dollars per share)		$ (0.11)		$ 1.30
Reclassification of certain derivative activity		192		110
As Previously Reported
Statement of Operations:
Total net realized capital gains (losses)		604		(63)
Total revenues		12,716		46,828
Interest credited to policyholder account balances		1,134		3,349
Amortization of deferred acquisition costs		2,490		5,992
Other acquisition and other insurance expenses		1,214		4,418
Total benefits, claims and expenses		17,074		50,760
Income (loss) from continuing operations before income tax benefit		(4,358)		(3,932)
Income tax expense (benefit)		(634)		(1,122)
Income (Loss) from Continuing Operations		(3,724)		(2,810)
Income (loss) from discontinued operations, net of income tax expense (benefit)		(221)		1,395
Net income (loss)		(3,945)		(1,415)
Net income (loss) attributable to AIG		(4,109)		(2,000)
Net income (loss) attributable to AIG common shareholders		(4,109)		(2,812)
Basic:
Income (loss) from continuing operations (in dollars per share)		$ (2.05)		$ (2.37)
Income (loss) from discontinued operations (in dollars per share)		$ (0.11)		$ 0.78
Diluted:
Income (loss) from continuing operations (in dollars per share)		$ (2.05)		$ (2.37)
Income (loss) from discontinued operations (in dollars per share)		$ (0.11)		$ 0.78
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts \| Effect of Change
Statement of Operations:
Total net realized capital gains (losses)		3		10
Total revenues		3		10
Interest credited to policyholder account balances		12		17
Amortization of deferred acquisition costs		(950)		(1,899)
Other acquisition and other insurance expenses		853		1,746
Total benefits, claims and expenses		(85)		(136)
Income (loss) from continuing operations before income tax benefit		88		146
Income tax expense (benefit)		(31)		(65)
Income (Loss) from Continuing Operations		119		211
Income (loss) from discontinued operations, net of income tax expense (benefit)				932
Net income (loss)		119		1,143
Net income (loss) attributable to AIG		119		1,143
Net income (loss) attributable to AIG common shareholders		$ 119		$ 1,143
Basic:
Income (loss) from continuing operations (in dollars per share)		$ 0.06		$ 0.12
Income (loss) from discontinued operations (in dollars per share)				$ 0.52
Diluted:
Income (loss) from continuing operations (in dollars per share)		$ 0.06		$ 0.12
Income (loss) from discontinued operations (in dollars per share)				$ 0.52

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities:
Net income (loss)	$ 1,861	$ (3,826)	$ 7,649	$ (272)
Income (loss) from discontinued operations	(1)	221	(9)	(2,327)
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized (gains) losses in earnings - net			(4,578)	714
Depreciation and other amortization			5,541	5,618
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs			(4,260)	(4,110)
Current and deferred income taxes - net			885	(1,829)
Total adjustments			(4,801)	(1,972)
Reclassification of certain derivative activity included in unrealized (gains) losses in earnings				118
As Previously Reported
Cash flows from operating activities:
Net income (loss)		(3,945)		(1,415)
Income (loss) from discontinued operations		221		(1,395)
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized (gains) losses in earnings - net				724
Depreciation and other amortization				7,500
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs				(5,856)
Current and deferred income taxes - net				(1,764)
Total adjustments				(1,761)
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts \| Effect of Change
Cash flows from operating activities:
Net income (loss)		119		1,143
Income (loss) from discontinued operations				(932)
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized (gains) losses in earnings - net				(10)
Depreciation and other amortization				(1,882)
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs				1,746
Current and deferred income taxes - net				(65)
Total adjustments				$ (211)

SEGMENT INFORMATION (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012 segment	Sep. 30, 2011
Segment results
Number of reportable segments			3
Total revenues	$ 17,648	$ 12,719	$ 53,214	$ 46,838
Pre-tax income (loss)	2,595	(4,270)	8,930	(3,786)
Commercial Insurance
Segment results
Total revenues	5,975	6,402	17,991	18,905
Pre-tax income (loss)	321	405	1,480	650
Consumer Insurance
Segment results
Total revenues	3,582	3,523	10,758	10,439
Pre-tax income (loss)	152	21	578	(175)
Other
Segment results
Total revenues	592	260	1,218	939
Pre-tax income (loss)	476	125	762	528
Total AIG Property Casualty
Segment results
Total revenues	10,149	10,185	29,967	30,283
Pre-tax income (loss)	949	551	2,820	1,003
Life Insurance
Segment results
Total revenues	2,663	2,134	7,306	6,242
Pre-tax income (loss)	553	472	1,714	1,174
Retirement Services
Segment results
Total revenues	1,867	1,448	5,133	5,075
Pre-tax income (loss)	336	(126)	814	905
Total AIG Life and Retirement
Segment results
Total revenues	4,530	3,582	12,439	11,317
Pre-tax income (loss)	889	346	2,528	2,079
Aircraft Leasing
Segment results
Total revenues	1,146	1,106	3,421	3,366
Pre-tax income (loss)	40	(1,329)	246	(1,122)
Other Operations
Segment results
Total revenues	2,213	(2,433)	8,085	1,864
Pre-tax income (loss)	891	(3,945)	3,511	(5,855)
Mortgage Guaranty
Segment results
Total revenues	218	246	642	716
Pre-tax income (loss)	6	(82)	62	(68)
Global Capital Markets
Segment results
Total revenues	235	(130)	405	151
Pre-tax income (loss)	190	(187)	253	(66)
Direct Investment Book
Segment results
Total revenues	506	159	1,434	758
Pre-tax income (loss)	406	103	1,139	586
Retained Interests
Segment results
Total revenues	857	(3,246)	4,717	(743)
Pre-tax income (loss)	857	(3,246)	4,717	(743)
Corporate and Other
Segment results
Total revenues	412	561	925	1,030
Pre-tax income (loss)	(566)	(523)	(2,659)	(5,538)
Other Operations, consolidation and eliminations
Segment results
Total revenues	(15)	(23)	(38)	(48)
Pre-tax income (loss)	(2)	(10)	(1)	(26)
Consolidation and Eliminations
Segment results
Total revenues	(390)	279	(698)	8
Pre-tax income (loss)	$ (174)	$ 107	$ (175)	$ 109

FAIR VALUE MEASUREMENTS (Details) (USD $)			9 Months Ended	3 Months Ended	9 Months Ended
FAIR VALUE MEASUREMENTS (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2012 Recurring Basis U.S. government and government sponsored entities	Sep. 30, 2012 Recurring Basis Non-U.S. government	Sep. 30, 2012 Recurring Basis Non-U.S. government	Sep. 30, 2012 Recurring Basis Level 1	Dec. 31, 2011 Recurring Basis Level 1	Sep. 30, 2012 Recurring Basis Level 1 AIA Group Limited (AIA)	Dec. 31, 2011 Recurring Basis Level 1 AIA Group Limited (AIA)	Sep. 30, 2012 Recurring Basis Level 1 Interest rate contracts	Dec. 31, 2011 Recurring Basis Level 1 Interest rate contracts	Sep. 30, 2012 Recurring Basis Level 1 Equity contracts	Dec. 31, 2011 Recurring Basis Level 1 Equity contracts	Dec. 31, 2011 Recurring Basis Level 1 Other contracts	Sep. 30, 2012 Recurring Basis Level 1 U.S. government and government sponsored entities	Dec. 31, 2011 Recurring Basis Level 1 U.S. government and government sponsored entities	Sep. 30, 2012 Recurring Basis Level 1 Non-U.S. government	Dec. 31, 2011 Recurring Basis Level 1 Non-U.S. government	Sep. 30, 2012 Recurring Basis Level 1 Common Stock	Dec. 31, 2011 Recurring Basis Level 1 Common Stock	Sep. 30, 2012 Recurring Basis Level 1 Mutual Funds	Dec. 31, 2011 Recurring Basis Level 1 Mutual Funds	Sep. 30, 2012 Recurring Basis Level 2	Dec. 31, 2011 Recurring Basis Level 2	Sep. 30, 2012 Recurring Basis Level 2 Interest rate contracts	Dec. 31, 2011 Recurring Basis Level 2 Interest rate contracts	Sep. 30, 2012 Recurring Basis Level 2 Foreign exchange contracts	Dec. 31, 2011 Recurring Basis Level 2 Foreign exchange contracts	Sep. 30, 2012 Recurring Basis Level 2 Equity contracts	Dec. 31, 2011 Recurring Basis Level 2 Equity contracts	Sep. 30, 2012 Recurring Basis Level 2 Commodity contracts	Dec. 31, 2011 Recurring Basis Level 2 Commodity contracts	Sep. 30, 2012 Recurring Basis Level 2 Credit contracts	Dec. 31, 2011 Recurring Basis Level 2 Credit contracts	Sep. 30, 2012 Recurring Basis Level 2 Other contracts	Dec. 31, 2011 Recurring Basis Level 2 Other contracts	Sep. 30, 2012 Recurring Basis Level 2 U.S. government and government sponsored entities	Dec. 31, 2011 Recurring Basis Level 2 U.S. government and government sponsored entities	Sep. 30, 2012 Recurring Basis Level 2 Obligations of states, municipalities and political subdivisions	Dec. 31, 2011 Recurring Basis Level 2 Obligations of states, municipalities and political subdivisions	Sep. 30, 2012 Recurring Basis Level 2 Non-U.S. government	Dec. 31, 2011 Recurring Basis Level 2 Non-U.S. government	Sep. 30, 2012 Recurring Basis Level 2 Corporate debt	Dec. 31, 2011 Recurring Basis Level 2 Corporate debt	Sep. 30, 2012 Recurring Basis Level 2 Residential mortgage backed securities (RMBS)	Dec. 31, 2011 Recurring Basis Level 2 Residential mortgage backed securities (RMBS)	Sep. 30, 2012 Recurring Basis Level 2 Commercial mortgage-backed securities (CMBS)	Dec. 31, 2011 Recurring Basis Level 2 Commercial mortgage-backed securities (CMBS)	Sep. 30, 2012 Recurring Basis Level 2 Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Dec. 31, 2011 Recurring Basis Level 2 Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2012 Recurring Basis Level 2 Common Stock	Dec. 31, 2011 Recurring Basis Level 2 Common Stock	Sep. 30, 2012 Recurring Basis Level 2 Preferred Stock	Dec. 31, 2011 Recurring Basis Level 2 Preferred Stock	Sep. 30, 2012 Recurring Basis Level 2 Mutual Funds	Dec. 31, 2011 Recurring Basis Level 2 Mutual Funds	Dec. 31, 2011 Recurring Basis Level 2 Trust deposits and deposits due to banks and other depositors	Sep. 30, 2012 Recurring Basis Level 3	Dec. 31, 2011 Recurring Basis Level 3	Sep. 30, 2012 Recurring Basis Level 3 Interest rate contracts	Dec. 31, 2011 Recurring Basis Level 3 Interest rate contracts	Dec. 31, 2011 Recurring Basis Level 3 Foreign exchange contracts	Sep. 30, 2012 Recurring Basis Level 3 Equity contracts	Dec. 31, 2011 Recurring Basis Level 3 Equity contracts	Sep. 30, 2012 Recurring Basis Level 3 Commodity contracts	Dec. 31, 2011 Recurring Basis Level 3 Commodity contracts	Sep. 30, 2012 Recurring Basis Level 3 Credit contracts	Dec. 31, 2011 Recurring Basis Level 3 Credit contracts	Sep. 30, 2012 Recurring Basis Level 3 Other contracts	Dec. 31, 2011 Recurring Basis Level 3 Other contracts	Sep. 30, 2012 Recurring Basis Level 3 Obligations of states, municipalities and political subdivisions	Dec. 31, 2011 Recurring Basis Level 3 Obligations of states, municipalities and political subdivisions	Sep. 30, 2012 Recurring Basis Level 3 Non-U.S. government	Dec. 31, 2011 Recurring Basis Level 3 Non-U.S. government	Sep. 30, 2012 Recurring Basis Level 3 Corporate debt	Dec. 31, 2011 Recurring Basis Level 3 Corporate debt	Sep. 30, 2012 Recurring Basis Level 3 Residential mortgage backed securities (RMBS)	Dec. 31, 2011 Recurring Basis Level 3 Residential mortgage backed securities (RMBS)	Sep. 30, 2012 Recurring Basis Level 3 Commercial mortgage-backed securities (CMBS)	Dec. 31, 2011 Recurring Basis Level 3 Commercial mortgage-backed securities (CMBS)	Sep. 30, 2012 Recurring Basis Level 3 Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Dec. 31, 2011 Recurring Basis Level 3 Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2012 Recurring Basis Level 3 Common Stock	Dec. 31, 2011 Recurring Basis Level 3 Common Stock	Sep. 30, 2012 Recurring Basis Level 3 Preferred Stock	Dec. 31, 2011 Recurring Basis Level 3 Preferred Stock	Sep. 30, 2012 Recurring Basis Counterparty Netting	Dec. 31, 2011 Recurring Basis Counterparty Netting	Sep. 30, 2012 Recurring Basis Counterparty Netting Counterparty netting and cash collateral	Dec. 31, 2011 Recurring Basis Counterparty Netting Counterparty netting and cash collateral	Sep. 30, 2012 Recurring Basis Cash Collateral	Dec. 31, 2011 Recurring Basis Cash Collateral	Sep. 30, 2012 Recurring Basis Cash Collateral Counterparty netting and cash collateral	Dec. 31, 2011 Recurring Basis Cash Collateral Counterparty netting and cash collateral	Sep. 30, 2012 Recurring Basis Total Fair Value	Dec. 31, 2011 Recurring Basis Total Fair Value	Sep. 30, 2012 Recurring Basis Total Fair Value Interest rate contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Interest rate contracts	Sep. 30, 2012 Recurring Basis Total Fair Value Foreign exchange contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Foreign exchange contracts	Sep. 30, 2012 Recurring Basis Total Fair Value Equity contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Equity contracts	Sep. 30, 2012 Recurring Basis Total Fair Value Commodity contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Commodity contracts	Sep. 30, 2012 Recurring Basis Total Fair Value Credit contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Credit contracts	Sep. 30, 2012 Recurring Basis Total Fair Value Other contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Other contracts	Sep. 30, 2012 Recurring Basis Total Fair Value Counterparty netting and cash collateral	Dec. 31, 2011 Recurring Basis Total Fair Value Counterparty netting and cash collateral	Sep. 30, 2012 Recurring Basis Total Fair Value U.S. government and government sponsored entities	Dec. 31, 2011 Recurring Basis Total Fair Value U.S. government and government sponsored entities	Sep. 30, 2012 Recurring Basis Total Fair Value Obligations of states, municipalities and political subdivisions	Dec. 31, 2011 Recurring Basis Total Fair Value Obligations of states, municipalities and political subdivisions	Sep. 30, 2012 Recurring Basis Total Fair Value Non-U.S. government	Dec. 31, 2011 Recurring Basis Total Fair Value Non-U.S. government	Sep. 30, 2012 Recurring Basis Total Fair Value Corporate debt	Dec. 31, 2011 Recurring Basis Total Fair Value Corporate debt	Sep. 30, 2012 Recurring Basis Total Fair Value Residential mortgage backed securities (RMBS)	Dec. 31, 2011 Recurring Basis Total Fair Value Residential mortgage backed securities (RMBS)	Sep. 30, 2012 Recurring Basis Total Fair Value Commercial mortgage-backed securities (CMBS)	Dec. 31, 2011 Recurring Basis Total Fair Value Commercial mortgage-backed securities (CMBS)	Sep. 30, 2012 Recurring Basis Total Fair Value Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Dec. 31, 2011 Recurring Basis Total Fair Value Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2012 Recurring Basis Total Fair Value Common Stock	Dec. 31, 2011 Recurring Basis Total Fair Value Common Stock	Sep. 30, 2012 Recurring Basis Total Fair Value Preferred Stock	Dec. 31, 2011 Recurring Basis Total Fair Value Preferred Stock	Sep. 30, 2012 Recurring Basis Total Fair Value Mutual Funds	Dec. 31, 2011 Recurring Basis Total Fair Value Mutual Funds
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale						$ 770,000,000	$ 433,000,000								$ 28,000,000	$ 174,000,000	$ 742,000,000	$ 259,000,000					$ 245,264,000,000	$ 241,592,000,000													$ 4,380,000,000	$ 5,904,000,000	$ 35,360,000,000	$ 36,538,000,000	$ 25,542,000,000	$ 25,467,000,000	$ 148,528,000,000	$ 142,883,000,000	$ 23,692,000,000	$ 23,727,000,000	$ 4,469,000,000	$ 3,991,000,000	$ 3,293,000,000	$ 3,082,000,000								$ 23,880,000,000	$ 21,956,000,000												$ 1,104,000,000	$ 960,000,000	$ 14,000,000	$ 9,000,000	$ 1,612,000,000	$ 1,935,000,000	$ 11,488,000,000	$ 10,877,000,000	$ 5,013,000,000	$ 3,955,000,000	$ 4,649,000,000	$ 4,220,000,000													$ 269,914,000,000	$ 263,981,000,000															$ 4,408,000,000	$ 6,078,000,000	$ 36,464,000,000	$ 37,498,000,000	$ 26,298,000,000	$ 25,735,000,000	$ 150,140,000,000	$ 144,818,000,000	$ 35,180,000,000	$ 34,604,000,000	$ 9,482,000,000	$ 7,946,000,000	$ 7,942,000,000	$ 7,302,000,000
Bond trading securities, at fair value	24,837,000,000	24,364,000,000				302,000,000	100,000,000								302,000,000	100,000,000							15,046,000,000	14,968,000,000													7,406,000,000	7,404,000,000	81,000,000	257,000,000	2,000,000	35,000,000	1,316,000,000	809,000,000	1,101,000,000	1,345,000,000	1,490,000,000	1,283,000,000	3,650,000,000	3,835,000,000								9,489,000,000	9,296,000,000																2,000,000	7,000,000	370,000,000	303,000,000	612,000,000	554,000,000	8,505,000,000	8,432,000,000													24,837,000,000	24,364,000,000															7,708,000,000	7,504,000,000	81,000,000	257,000,000	2,000,000	35,000,000	1,318,000,000	816,000,000	1,471,000,000	1,648,000,000	2,102,000,000	1,837,000,000	12,155,000,000	12,267,000,000
Equity securities available for sale	3,021,000,000	3,624,000,000				2,867,000,000	3,349,000,000												2,781,000,000	3,294,000,000	86,000,000	55,000,000	69,000,000	119,000,000																											1,000,000	70,000,000	48,000,000	44,000,000	20,000,000	5,000,000		85,000,000	156,000,000																								40,000,000	57,000,000	45,000,000	99,000,000									3,021,000,000	3,624,000,000																													2,822,000,000	3,421,000,000	93,000,000	143,000,000	106,000,000	60,000,000
Equity securities trading	98,000,000	125,000,000				17,000,000	43,000,000																81,000,000	82,000,000																																																																							98,000,000	125,000,000
Mortgage and other loans receivable																							129,000,000	106,000,000																																		1,000,000	1,000,000																																				130,000,000	107,000,000
Other invested assets	15,033,000,000	20,876,000,000				6,257,000,000	12,549,000,000	6,100,000,000	12,400,000,000														1,706,000,000	1,709,000,000																																		7,070,000,000	6,618,000,000																																				15,033,000,000	20,876,000,000
Derivative assets, at fair value	3,456,000,000	4,499,000,000				124,000,000	123,000,000			11,000,000	2,000,000	113,000,000	92,000,000	29,000,000									6,582,000,000	8,123,000,000	6,278,000,000	7,251,000,000	53,000,000	143,000,000	98,000,000	133,000,000	141,000,000	134,000,000	1,000,000		11,000,000	462,000,000																						1,166,000,000	1,414,000,000	996,000,000	1,033,000,000	2,000,000	53,000,000	38,000,000	1,000,000	2,000,000	59,000,000	89,000,000	57,000,000	250,000,000																	(3,219,000,000)	(3,660,000,000)	(3,219,000,000)	(3,660,000,000)	(1,197,000,000)	(1,501,000,000)	(1,197,000,000)	(1,501,000,000)	3,456,000,000	4,499,000,000	7,285,000,000	8,286,000,000	53,000,000	145,000,000	264,000,000	263,000,000	142,000,000	136,000,000	60,000,000	89,000,000	68,000,000	741,000,000	(4,416,000,000)	(5,161,000,000)
Short-term investments, portion measured at fair value	7,300,000,000	5,913,000,000				592,000,000	2,309,000,000																6,708,000,000	3,604,000,000																																																																							7,300,000,000	5,913,000,000
Separate account assets, at fair value	56,740,000,000	51,388,000,000				53,829,000,000	48,502,000,000																2,911,000,000	2,886,000,000																																																																							56,740,000,000	51,388,000,000
Other assets	698,000,000	0																					698,000,000																																																																								698,000,000
Fair value assets measured on recurring basis, total						64,758,000,000	67,408,000,000																279,194,000,000	273,189,000,000																																		41,691,000,000	39,441,000,000																												(3,219,000,000)	(3,660,000,000)			(1,197,000,000)	(1,501,000,000)			381,227,000,000	374,877,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	1,308,000,000	918,000,000																																																								1,308,000,000	918,000,000																																				1,308,000,000	918,000,000
Derivative liabilities, at fair value	4,314,000,000	4,733,000,000				2,000,000						2,000,000											6,797,000,000	7,342,000,000	6,303,000,000	6,661,000,000	166,000,000	178,000,000	159,000,000	198,000,000	143,000,000	146,000,000		4,000,000	26,000,000	155,000,000																						2,852,000,000	3,837,000,000	243,000,000	248,000,000		10,000,000	10,000,000			2,349,000,000	3,362,000,000	250,000,000	217,000,000																	(3,219,000,000)	(3,660,000,000)	(3,219,000,000)	(3,660,000,000)	(2,118,000,000)	(2,786,000,000)	(2,118,000,000)	(2,786,000,000)	4,314,000,000	4,733,000,000	6,546,000,000	6,909,000,000	166,000,000	178,000,000	171,000,000	208,000,000	143,000,000	146,000,000	2,349,000,000	3,366,000,000	276,000,000	372,000,000	(5,337,000,000)	(6,446,000,000)
Long-term debt, portion measured at fair value	8,835,000,000	10,766,000,000																					8,428,000,000	10,258,000,000																																		407,000,000	508,000,000																																				8,835,000,000	10,766,000,000
Other liabilities	930,000,000	907,000,000				138,000,000	193,000,000																792,000,000	714,000,000																																	6,000,000																																						930,000,000	907,000,000
Fair value liabilities measured on recurring basis, total						140,000,000	193,000,000																16,017,000,000	18,314,000,000																																		4,567,000,000	5,263,000,000																												(3,219,000,000)	(3,660,000,000)			(2,118,000,000)	(2,786,000,000)			15,387,000,000	17,324,000,000
Securities collateral posted for derivative transactions																																																																																											1,800,000,000	1,800,000,000
Securities collateral received not reflected in balance sheet																																																																																											177,000,000	100,000,000
Fair value derivative liability on AIGFP super senior credit default swap portfolio included in Level 3 unrealized loss on swaps, options and forward transactions																																																										2,300,000,000	3,200,000,000
Assets transferred from Level 1 to Level 2			$ 743,000,000	$ 148,000,000	$ 284,000,000

FAIR VALUE MEASUREMENTS (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended		3 Months Ended	9 Months Ended				3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012 Liabilities	Sep. 30, 2011 Liabilities	Sep. 30, 2012 Liabilities	Sep. 30, 2011 Liabilities	Sep. 30, 2012 Policyholder contract deposits	Sep. 30, 2011 Policyholder contract deposits	Sep. 30, 2012 Policyholder contract deposits	Sep. 30, 2011 Policyholder contract deposits	Sep. 30, 2012 Derivative liabilities, net	Sep. 30, 2011 Derivative liabilities, net	Sep. 30, 2012 Derivative liabilities, net	Sep. 30, 2011 Derivative liabilities, net	Sep. 30, 2012 Interest rate contracts	Sep. 30, 2011 Interest rate contracts	Sep. 30, 2012 Interest rate contracts	Sep. 30, 2011 Interest rate contracts	Sep. 30, 2011 Foreign exchange contracts	Sep. 30, 2012 Foreign exchange contracts	Sep. 30, 2011 Foreign exchange contracts	Sep. 30, 2012 Equity contracts	Sep. 30, 2011 Equity contracts	Sep. 30, 2012 Equity contracts	Sep. 30, 2011 Equity contracts	Sep. 30, 2012 Commodity contracts	Sep. 30, 2011 Commodity contracts	Sep. 30, 2012 Commodity contracts	Sep. 30, 2011 Commodity contracts	Sep. 30, 2012 Credit contracts	Sep. 30, 2011 Credit contracts	Sep. 30, 2012 Credit contracts	Sep. 30, 2011 Credit contracts	Sep. 30, 2012 Other contracts	Sep. 30, 2011 Other contracts	Sep. 30, 2012 Other contracts	Sep. 30, 2011 Other contracts	Sep. 30, 2012 Other long-term debt	Sep. 30, 2011 Other long-term debt	Sep. 30, 2012 Other long-term debt	Sep. 30, 2011 Other long-term debt	Sep. 30, 2012 Bonds available for sale	Sep. 30, 2011 Bonds available for sale	Sep. 30, 2012 Bonds available for sale	Sep. 30, 2011 Bonds available for sale	Sep. 30, 2012 Bonds available for sale Obligations of states, municipalities and political subdivisions	Sep. 30, 2011 Bonds available for sale Obligations of states, municipalities and political subdivisions	Sep. 30, 2012 Bonds available for sale Obligations of states, municipalities and political subdivisions	Sep. 30, 2011 Bonds available for sale Obligations of states, municipalities and political subdivisions	Sep. 30, 2012 Bonds available for sale Non-U.S. government	Sep. 30, 2011 Bonds available for sale Non-U.S. government	Sep. 30, 2012 Bonds available for sale Non-U.S. government	Sep. 30, 2011 Bonds available for sale Non-U.S. government	Sep. 30, 2012 Bonds available for sale Corporate debt	Sep. 30, 2011 Bonds available for sale Corporate debt	Sep. 30, 2012 Bonds available for sale Corporate debt	Sep. 30, 2011 Bonds available for sale Corporate debt	Sep. 30, 2012 Bonds available for sale Residential mortgage backed securities (RMBS)	Sep. 30, 2011 Bonds available for sale Residential mortgage backed securities (RMBS)	Sep. 30, 2012 Bonds available for sale Residential mortgage backed securities (RMBS)	Sep. 30, 2011 Bonds available for sale Residential mortgage backed securities (RMBS)	Sep. 30, 2012 Bonds available for sale Commercial mortgage-backed securities (CMBS)	Sep. 30, 2011 Bonds available for sale Commercial mortgage-backed securities (CMBS)	Sep. 30, 2012 Bonds available for sale Commercial mortgage-backed securities (CMBS)	Sep. 30, 2011 Bonds available for sale Commercial mortgage-backed securities (CMBS)	Sep. 30, 2012 Bonds available for sale Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2011 Bonds available for sale Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2012 Bonds available for sale Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2011 Bonds available for sale Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2012 Bond trading securities	Sep. 30, 2011 Bond trading securities	Sep. 30, 2012 Bond trading securities	Sep. 30, 2011 Bond trading securities	Sep. 30, 2012 Bond trading securities Corporate debt	Sep. 30, 2011 Bond trading securities Corporate debt	Sep. 30, 2012 Bond trading securities Corporate debt	Sep. 30, 2011 Bond trading securities Corporate debt	Sep. 30, 2012 Bond trading securities Residential mortgage backed securities (RMBS)	Sep. 30, 2011 Bond trading securities Residential mortgage backed securities (RMBS)	Sep. 30, 2012 Bond trading securities Residential mortgage backed securities (RMBS)	Sep. 30, 2011 Bond trading securities Residential mortgage backed securities (RMBS)	Sep. 30, 2012 Bond trading securities Commercial mortgage-backed securities (CMBS)	Sep. 30, 2011 Bond trading securities Commercial mortgage-backed securities (CMBS)	Sep. 30, 2012 Bond trading securities Commercial mortgage-backed securities (CMBS)	Sep. 30, 2011 Bond trading securities Commercial mortgage-backed securities (CMBS)	Sep. 30, 2012 Bond trading securities Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2011 Bond trading securities Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2012 Bond trading securities Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2011 Bond trading securities Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Sep. 30, 2012 Equity securities available for sale	Sep. 30, 2011 Equity securities available for sale	Sep. 30, 2012 Equity securities available for sale	Sep. 30, 2011 Equity securities available for sale	Sep. 30, 2012 Equity securities available for sale Common Stock	Sep. 30, 2011 Equity securities available for sale Common Stock	Sep. 30, 2012 Equity securities available for sale Common Stock	Sep. 30, 2011 Equity securities available for sale Common Stock	Sep. 30, 2012 Equity securities available for sale Preferred Stock	Sep. 30, 2011 Equity securities available for sale Preferred Stock	Sep. 30, 2012 Equity securities available for sale Preferred Stock	Sep. 30, 2011 Equity securities available for sale Preferred Stock	Sep. 30, 2011 Equity securities trading	Sep. 30, 2011 Equity securities trading	Sep. 30, 2012 Mortgage and other loans receivable	Jun. 30, 2012 Mortgage and other loans receivable	Dec. 31, 2011 Mortgage and other loans receivable	Sep. 30, 2012 Other invested assets	Sep. 30, 2011 Other invested assets	Sep. 30, 2012 Other invested assets	Sep. 30, 2011 Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	$ 45,164	$ 38,828	$ 38,027	$ 34,656																																								$ 22,537	$ 21,494	$ 21,956	$ 17,088	$ 1,013	$ 800	$ 960	$ 609	$ 13	$ 5	$ 9	$ 5	$ 1,306	$ 1,844	$ 1,935	$ 2,262	$ 10,488	$ 10,692	$ 10,877	$ 6,367	$ 4,643	$ 4,228	$ 3,955	$ 3,604	$ 5,074	$ 3,925	$ 4,220	$ 4,241	$ 15,397	$ 10,165	$ 9,296	$ 10,028	$ 3	$ 9	$ 7		$ 290	$ 170	$ 303	$ 91	$ 457	$ 483	$ 554	$ 506	$ 14,647	$ 9,503	$ 8,432	$ 9,431	$ 180	$ 123	$ 156	$ 125	$ 41	$ 59	$ 57	$ 61	$ 139	$ 64	$ 99	$ 64	$ 1	$ 1	$ 1	$ 1	$ 1	$ 7,049	$ 7,045	$ 6,618	$ 7,414
Net Realized and Unrealized Gains (Losses) Included in Income	949	(1,149)	4,050	(886)																					10																			294	(103)	407	(111)	16	1	48		1		1		10	13	(7)	10	197	(83)	322	(85)	(17)	(46)	(84)	(80)	87	12	127	44	618	(1,029)	3,760	(810)					40	(5)	68	(5)	(3)	(31)	46	35	581	(993)	3,646	(840)	15	11	40	26		9	23	27	15	2	17	(1)	(1)					22	(27)	(157)	9
Accumulated Other Comprehensive Income (Loss)	1,411	(313)	3,103	1,450																																								1,416	(334)	2,867	950		83	11	110	(1)	(1)		(1)	35	(21)	104	1	1,029	29	1,832	397	271	(293)	572	262	82	(131)	348	181		(14)		(9)						(1)		(8)		(4)		(1)		(9)			(13)	(7)	(48)	(2)	(1)	(9)	(13)	(5)	(12)	2	(35)	3						8	42	284	511
Purchases, Sales, Issues and Settlements, Net	(7,524)	(109)	(3,240)	2,887																																								(494)	(64)	735	3,560	102	74	139	248	2	1		1	94	(56)	96	216	(678)	(437)	32	3,506	115	134	618	206	(129)	220	(150)	(617)	(6,836)	20	(3,850)	(69)	(1)	(1)	(5)	(10)	(56)	168	(94)	254	1	(16)	(121)	(92)	(6,780)	(131)	(3,630)	(221)	(104)	(11)	(68)	(38)		(11)	(33)	(38)	(104)		(35)			(1)				(90)	(54)	(57)	(565)
Gross Transfers in, assets	1,333	2,149	3,538	3,454																																								888	1,769	2,288	2,840	25		70	17			5		233	1,170	579	1,703	566	254	921	276	1	16	44	69	63	329	669	775	311	163	347	342				18	97		97		157	115	193	276	57	48	57	48	8	12	17	22		10	6	18	8	2	11	4						126	205	886	250
Gross Transfers out, assets	(808)	(927)	(4,953)	(3,082)																																								(761)	(874)	(4,373)	(2,439)	(52)	(50)	(124)	(76)	(1)		(1)		(66)	(475)	(1,095)	(1,717)	(114)	(47)	(2,496)	(53)		(64)	(92)	(86)	(528)	(238)	(565)	(507)	(1)	(24)	(64)	(201)					(1)		(4)				(60)	(177)		(24)		(24)	(1)	(2)	(12)	(7)		(2)		(7)	(1)		(12)							(45)	(27)	(504)	(435)
Balance End of Period	40,525	38,479	40,525	38,479																																								23,880	21,888	23,880	21,888	1,104	908	1,104	908	14	5	14	5	1,612	2,475	1,612	2,475	11,488	10,408	11,488	10,408	5,013	3,975	5,013	3,975	4,649	4,117	4,649	4,117	9,489	9,281	9,489	9,281	2	8	2	8	370	332	370	332	612	547	612	547	8,505	8,394	8,505	8,394	85	126	85	126	40	56	40	56	45	70	45	70			1	1	1	7,070	7,184	7,070	7,184
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	420	(1,358)	2,698	(754)																																																																				420	(1,358)	2,698	(754)					12	(20)	18	(15)	(19)	2	45	31	427	(1,340)	2,635	(770)
Balance at the Beginning of the Period					(3,545)	(3,968)	(3,849)	(4,544)	(1,188)	(406)	(918)	(445)	(1,950)	(2,604)	(2,423)	(3,117)	761	754	785	732	4	2	16	28	34	28	22	2	5	2	23	(2,587)	(3,332)	(3,273)	(3,798)	(154)	(69)	33	(112)	(407)	(958)	(508)	(982)
Net Realized and Unrealized Gains (Losses) Included in Income					(19)	(701)	(418)	(408)	(45)	(928)	(314)	(882)	53	44	301	502	(55)	47	(9)	69	1		(11)	18	(10)	7	(17)	4	(1)	4	1	208	(25)	409	451	(122)	32	(110)	9	(27)	183	(405)	(28)
Accumulated Other Comprehensive Income (loss)					(78)	(32)	(153)	(58)	(72)		(72)		(6)	(32)	(4)	(58)																				(6)	(32)	(4)	(58)			(77)
Purchases, Sales, Issues and Settlements-Net					260	(35)	741	262	(3)	(28)	(4)	(35)	202	7	548	55	47	9	(23)	9	(5)	(2)	(5)	(4)		9	38	(3)	(1)	(5)	(21)	89	(5)	574	(15)	73	9	(5)	49	61	(14)	197	242
Gross Transfers in, liabilities					(17)		(142)	(28)					17		(108)	(7)								1		(1)	(7)									16		(107)		(34)		(34)	(21)
Gross Transfers out, liabilities					(2)	78	420	118					(2)	78		118		(21)		(21)							(12)	(2)									99		151			420
Balance at the End of the Period					(3,401)	(4,658)	(3,401)	(4,658)	(1,308)	(1,362)	(1,308)	(1,362)	(1,686)	(2,507)	(1,686)	(2,507)	753	789	753	789				43	24	43	24	1	3	1	3	(2,290)	(3,362)	(2,290)	(3,362)	(193)	39	(193)	39	(407)	(789)	(407)	(789)
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities					$ 113	$ 1,507	$ (505)	$ 1,145	$ 279	$ 950	$ 135	$ 887	$ (336)	$ 208	$ (864)	$ 289	$ 11	$ (61)	$ (37)	$ (55)					$ (7)		$ (14)	$ (1)	$ (1)		$ (1)	$ (360)	$ 398	$ (880)	$ 446	$ 14	$ (121)	$ 53	$ (87)	$ 170	$ 349	$ 224	$ (31)

FAIR VALUE MEASUREMENTS (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in income, assets	$ 949	$ (1,149)	$ 4,050	$ (886)
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 (losses), liabilities measured at Level 3	(45)	(928)	(314)	(882)
Net realized and unrealized gains (losses) included in income, liabilities	(45)	(928)	(314)	(882)
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	(1)	2
Net realized and unrealized gains (losses) included in net realized capital gains (losses), liabilities measured at Level 3	(39)	54	22	7
Net realized and unrealized gains (losses) included in other income, liabilities measured at Level 3	92	(11)	280	493
Net realized and unrealized gains (losses) included in income, liabilities	53	44	301	502
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	(27)	183	(405)	(28)
Net realized and unrealized gains (losses) included in income, liabilities	(27)	183	(405)	(28)
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	218	193	683	433
Net realized and unrealized gains (losses) included in net realized capital gains (losses), assets measured at Level 3	51	(300)	(333)	(556)
Net realized and unrealized gains (losses) included in other income, assets measured at Level 3	25	4	57	12
Net realized and unrealized gains (losses) included in income, assets	294	(103)	407	(111)
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	491	(1,333)	3,330	(828)
Net realized and unrealized gains (losses) included in net realized capital gains (losses), assets measured at Level 3		4		4
Net realized and unrealized gains (losses) included in other income, assets measured at Level 3	127	300	430	14
Net realized and unrealized gains (losses) included in income, assets	618	(1,029)	3,760	(810)
Equity 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	15	(1)
Net realized and unrealized gains (losses) included in net realized capital gains (losses), assets measured at Level 3		11	40	26
Net realized and unrealized gains (losses) included in income, assets	15	10	40	26
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	6	(13)	(3)	31
Net realized and unrealized gains (losses) included in net realized capital gains (losses), assets measured at Level 3	(16)	(29)	(189)	(81)
Net realized and unrealized gains (losses) included in other income, assets measured at Level 3	32	15	35	59
Net realized and unrealized gains (losses) included in income, assets	$ 22	$ (27)	$ (157)	$ 9

FAIR VALUE MEASUREMENTS (Details 4) (USD $)	3 Months Ended		9 Months Ended
FAIR VALUE MEASUREMENTS (Details 4) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	$ 3,369,000,000	$ 1,241,000,000	$ 12,743,000,000	$ 7,621,000,000
Sales, assets	(649,000,000)	(277,000,000)	(1,542,000,000)	(681,000,000)
Settlements, assets	(10,244,000,000)	(1,073,000,000)	(14,441,000,000)	(4,053,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(7,524,000,000)	(109,000,000)	(3,240,000,000)	2,887,000,000
Securities purchased through FRBNY's auction of Maiden Lane III assets	7,100,000,000		7,100,000,000
Transfers into Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period	80,000,000		127,000,000
Transfers out Level 3 at end of reporting period, net gains (losses) not included in realized and unrealized gains and losses related to Level 3 for the period.	29,000,000		83,000,000
Liabilities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, liabilities	6,000,000	1,000,000	8,000,000	40,000,000
Sales, liabilities	(6,000,000)	(32,000,000)	(20,000,000)	(51,000,000)
Settlements, liabilities	260,000,000	(4,000,000)	753,000,000	273,000,000
Purchases, Sales, Issues and Settlements, Net, liabilities	260,000,000	(35,000,000)	741,000,000	262,000,000
Policyholder contract deposits
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Sales, liabilities	(6,000,000)	(32,000,000)	(20,000,000)	(51,000,000)
Settlements, liabilities	3,000,000	4,000,000	16,000,000	16,000,000
Purchases, Sales, Issues and Settlements, Net, liabilities	(3,000,000)	(28,000,000)	(4,000,000)	(35,000,000)
Derivative liabilities, net
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, liabilities	6,000,000	1,000,000	8,000,000	40,000,000
Settlements, liabilities	196,000,000	6,000,000	540,000,000	15,000,000
Purchases, Sales, Issues and Settlements, Net, liabilities	202,000,000	7,000,000	548,000,000	55,000,000
Other long-term debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, liabilities	61,000,000	(14,000,000)	197,000,000	242,000,000
Purchases, Sales, Issues and Settlements, Net, liabilities	61,000,000	(14,000,000)	197,000,000	242,000,000
Bonds available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	1,038,000,000	708,000,000	4,737,000,000	6,431,000,000
Sales, assets	(546,000,000)	(27,000,000)	(1,267,000,000)	(70,000,000)
Settlements, assets	(986,000,000)	(745,000,000)	(2,735,000,000)	(2,801,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(494,000,000)	(64,000,000)	735,000,000	3,560,000,000
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	189,000,000	78,000,000	394,000,000	254,000,000
Sales, assets	(53,000,000)		(219,000,000)
Settlements, assets	(34,000,000)	(4,000,000)	(36,000,000)	(6,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	102,000,000	74,000,000	139,000,000	248,000,000
Bonds available for sale \| Non-U.S. government
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	3,000,000		4,000,000	1,000,000
Sales, assets			(3,000,000)	(1,000,000)
Settlements, assets	(1,000,000)	1,000,000	(1,000,000)	1,000,000
Purchases, Sales, Issues and Settlements, Net, assets	2,000,000	1,000,000		1,000,000
Bonds available for sale \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	139,000,000	58,000,000	280,000,000	478,000,000
Sales, assets	(6,000,000)	(27,000,000)	(59,000,000)	(27,000,000)
Settlements, assets	(39,000,000)	(87,000,000)	(125,000,000)	(235,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	94,000,000	(56,000,000)	96,000,000	216,000,000
Bonds available for sale \| Residential mortgage backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	198,000,000	(11,000,000)	2,308,000,000	4,613,000,000
Sales, assets	(360,000,000)		(722,000,000)	(22,000,000)
Settlements, assets	(516,000,000)	(426,000,000)	(1,554,000,000)	(1,085,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(678,000,000)	(437,000,000)	32,000,000	3,506,000,000
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	299,000,000	178,000,000	1,021,000,000	419,000,000
Sales, assets	(127,000,000)		(260,000,000)	(20,000,000)
Settlements, assets	(57,000,000)	(44,000,000)	(143,000,000)	(193,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	115,000,000	134,000,000	618,000,000	206,000,000
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	210,000,000	405,000,000	730,000,000	666,000,000
Sales, assets			(4,000,000)
Settlements, assets	(339,000,000)	(185,000,000)	(876,000,000)	(1,283,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(129,000,000)	220,000,000	(150,000,000)	(617,000,000)
Bond trading securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	2,202,000,000	377,000,000	7,410,000,000	684,000,000
Sales, assets	(51,000,000)	(183,000,000)	(157,000,000)	(363,000,000)
Settlements, assets	(8,987,000,000)	(174,000,000)	(11,103,000,000)	(390,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(6,836,000,000)	20,000,000	(3,850,000,000)	(69,000,000)
Bond trading securities \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, assets	(1,000,000)	(1,000,000)	(5,000,000)	(10,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(1,000,000)	(1,000,000)	(5,000,000)	(10,000,000)
Bond trading securities \| Residential mortgage backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets		197,000,000		300,000,000
Sales, assets	(45,000,000)		(45,000,000)
Settlements, assets	(11,000,000)	(29,000,000)	(49,000,000)	(46,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(56,000,000)	168,000,000	(94,000,000)	254,000,000
Bond trading securities \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	11,000,000	79,000,000	194,000,000	139,000,000
Sales, assets		(90,000,000)	(106,000,000)	(144,000,000)
Settlements, assets	(10,000,000)	(5,000,000)	(209,000,000)	(87,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	1,000,000	(16,000,000)	(121,000,000)	(92,000,000)
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	2,191,000,000	101,000,000	7,216,000,000	245,000,000
Sales, assets	(6,000,000)	(93,000,000)	(6,000,000)	(219,000,000)
Settlements, assets	(8,965,000,000)	(139,000,000)	(10,840,000,000)	(247,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(6,780,000,000)	(131,000,000)	(3,630,000,000)	(221,000,000)
Securities purchased through FRBNY's auction of Maiden Lane III assets	7,100,000,000		7,100,000,000
Equity securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets			67,000,000
Sales, assets	(22,000,000)	(8,000,000)	(55,000,000)	(31,000,000)
Settlements, assets	(82,000,000)	(3,000,000)	(80,000,000)	(8,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(104,000,000)	(11,000,000)	(68,000,000)	(39,000,000)
Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	129,000,000	156,000,000	529,000,000	506,000,000
Sales, assets	(30,000,000)	(59,000,000)	(63,000,000)	(217,000,000)
Settlements, assets	(189,000,000)	(151,000,000)	(523,000,000)	(854,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	$ (90,000,000)	$ (54,000,000)	$ (57,000,000)	$ (565,000,000)

FAIR VALUE MEASUREMENTS (Details 5) (Fair value on a non-recurring basis, USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended			3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2011 Investment real estate:	Sep. 30, 2012 Other investments	Sep. 30, 2011 Other investments	Sep. 30, 2012 Other investments	Sep. 30, 2011 Other investments	Sep. 30, 2012 Aircraft	Sep. 30, 2011 Aircraft	Sep. 30, 2012 Aircraft	Sep. 30, 2011 Aircraft	Sep. 30, 2012 Other assets	Sep. 30, 2012 Level 2	Sep. 30, 2012 Level 2 Other assets	Sep. 30, 2012 Level 3	Dec. 31, 2011 Level 3	Sep. 30, 2012 Level 3 Investment real estate:	Dec. 31, 2011 Level 3 Investment real estate:	Sep. 30, 2012 Level 3 Other investments	Dec. 31, 2011 Level 3 Other investments	Sep. 30, 2012 Level 3 Aircraft	Dec. 31, 2011 Level 3 Aircraft	Sep. 30, 2012 Level 3 Other assets	Dec. 31, 2011 Level 3 Other assets	Sep. 30, 2012 Total Fair Value	Dec. 31, 2011 Total Fair Value	Sep. 30, 2012 Total Fair Value Investment real estate:	Dec. 31, 2011 Total Fair Value Investment real estate:	Sep. 30, 2012 Total Fair Value Other investments	Dec. 31, 2011 Total Fair Value Other investments	Sep. 30, 2012 Total Fair Value Aircraft	Dec. 31, 2011 Total Fair Value Aircraft	Sep. 30, 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	$ 1	$ 2,187	$ 4,343	$ 311	$ 457	$ 1,534	$ 2,199	$ 324	$ 1,683	$ 18	$ 4	$ 2,188	$ 4,343	$ 311	$ 457	$ 1,534	$ 2,199	$ 324	$ 1,683	$ 19	$ 4
Impairment Charges	$ 195	$ 1,699	$ 509	$ 2,217	$ 15	$ 97	$ 181	$ 273	$ 526	$ 98	$ 1,518	$ 227	$ 1,676	$ 9

- 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	9 Months Ended
	Sep. 30, 2012
Corporate debt \| Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value	$ 826
Corporate debt \| Discounted cash flow \| Minimum
Fair value inputs, assets, quantitative information
Yield	1.85%
Corporate debt \| Discounted cash flow \| Maximum
Fair value inputs, assets, quantitative information
Yield	8.95%
Corporate debt \| Discounted cash flow \| Weighted-average
Fair value inputs, assets, quantitative information
Yield	5.40%
Residential mortgage backed securities \| Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value	10,867
Residential mortgage backed securities \| Discounted cash flow \| Minimum
Fair value inputs, assets, quantitative information
Yield	2.69%
Constant prepayment rate	0.00%
Loss severity	40.07%
Constant default rate	3.61%
Residential mortgage backed securities \| Discounted cash flow \| Maximum
Fair value inputs, assets, quantitative information
Yield	9.53%
Constant prepayment rate	10.58%
Loss severity	78.97%
Constant default rate	13.01%
Residential mortgage backed securities \| Discounted cash flow \| Weighted-average
Fair value inputs, assets, quantitative information
Yield	6.11%
Constant prepayment rate	4.99%
Loss severity	59.52%
Constant default rate	8.31%
Certain CDO/ABS \| Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value	1,866
Certain CDO/ABS \| Discounted cash flow \| Minimum
Fair value inputs, assets, quantitative information
Yield	0.84%
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
Yield	4.85%
Constant prepayment rate	39.55%
Loss severity	9.20%
Constant default rate	1.19%
Certain CDO/ABS \| Discounted cash flow \| Weighted-average
Fair value inputs, assets, quantitative information
Yield	2.85%
Constant prepayment rate	12.87%
Loss severity	0.78%
Constant default rate	0.13%
Commercial mortgage backed securities \| Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value	3,051
Commercial mortgage backed securities \| Discounted cash flow \| Minimum
Fair value inputs, assets, quantitative information
Yield	0.00%
Commercial mortgage backed securities \| Discounted cash flow \| Maximum
Fair value inputs, assets, quantitative information
Yield	27.34%
Commercial mortgage backed securities \| Discounted cash flow \| Weighted-average
Fair value inputs, assets, quantitative information
Yield	10.14%
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET)
Fair value inputs, assets, quantitative information
Fair Value	$ 1,290
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET) \| Minimum
Fair value inputs, assets, quantitative information
Recovery rates	3.00%
Diversity score	4
Weighted average life	1 year 1 month 13 days
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET) \| Maximum
Fair value inputs, assets, quantitative information
Recovery rates	65.00%
Diversity score	37
Weighted average life	9 years 2 months 1 day
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET) \| Weighted-average
Fair value inputs, assets, quantitative information
Diversity score	14
Weighted average life	4 years 6 months 25 days

FAIR VALUE MEASUREMENTS (Details 7) (Level 3, USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012
Policyholder contract deposits - GMWB
Significant unobservable inputs used for recurring fair value measurements
Fair value	$ 1,005
Policyholder contract deposits - GMWB \| Discounted cash flow \| Minimum
Significant unobservable inputs used for recurring fair value measurements
Equity implied volatility	6.00%
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	$ 1,600
Derivative Liabilities - Credit contracts \| BET \| Minimum
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	3.00%
Diversity score	8
Weighted average life	5 years 7 days
Derivative Liabilities - Credit contracts \| BET \| Maximum
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	36.00%
Diversity score	31
Weighted average life	8 years 4 months 24 days
Derivative Liabilities - Credit contracts \| BET \| Weighted-average
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	16.00%
Diversity score	13
Weighted average life	6 years 29 days

FAIR VALUE MEASUREMENTS (Details 8) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value or its equivalent	$ 7,493	$ 6,873
Unfunded Commitments	1,068	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	3 years
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	42.00%
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	7 years
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	56.00%
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	10 years
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 or its equivalent	4,241	4,100
Unfunded Commitments	1,066	1,181
Average original expected lives	P10Y
Investment redemption notice period (in days/years)	1 year
Second investment redemption notice period	2 years
Leveraged buyout
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value or its equivalent	3,223	3,185
Unfunded Commitments	821	945
Non-U.S.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value or its equivalent	173	165
Unfunded Commitments	31	57
Venture capital
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value or its equivalent	309	316
Unfunded Commitments	32	39
Distressed
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value or its equivalent	172	182
Unfunded Commitments	37	42
Other..
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value or its equivalent	364	252
Unfunded Commitments	145	98
Hedge funds:
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value or its equivalent	3,252	2,773
Unfunded Commitments	2	12
Hedge fund investments redeemable monthly (as a percent)	11.00%
Hedge fund investments redeemable quarterly (as a percent)	31.00%
Hedge fund investments redeemable semi-annually (as a percent)	24.00%
Hedge fund investments redeemable annually (as a percent)	34.00%
Hedge fund investments redemption notices of less than 90 days (as a percent)	60.00%
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	54.00%
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 or its equivalent	894	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 or its equivalent	1,139	927
Macro
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value or its equivalent	248	173
Distressed.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value or its equivalent	367	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 or its equivalent	$ 604	$ 627

FAIR VALUE MEASUREMENTS (Details 9) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	$ 1,661	$ (3,599)	$ 6,032	$ (129)
Fair value option credit risk gains (losses) on liabilities	(126)	459	(621)	475
Segment Discontinued Operations
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	110	(102)	664	819
Fair Value Option \| Other long-term debt
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	(86)	(265)	(750)	(821)
Fair Value Option \| Other liabilities
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	(9)	84	(31)	(91)
Fair Value Option \| Mortgage and other loans receivable, net of allowance
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	10	(3)	41	(2)
Fair Value Option \| Bond and equity securities
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	875	(138)	1,782	1,299
Fair Value Option \| Trading - ML II Interest
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)		(43)	246	32
Fair Value Option \| Trading - ML III Interest
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	330	(931)	2,888	(854)
Fair Value Option \| Retained interest in AIA
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	527	(2,315)	1,829	268
Fair Value Option \| Short-term investments and other invested assets and Other assets
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	$ 14	$ 12	$ 27	$ 40

FAIR VALUE MEASUREMENTS (Details 10) (USD $) Share data in Millions, unless otherwise specified			1 Months Ended						9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 29, 2012 AIA Group	Mar. 31, 2012 AIA Group	Sep. 30, 2012 AIA Group	Sep. 06, 2012 AIA Group	Mar. 07, 2012 AIA Group	Dec. 31, 2011 AIA Group	Sep. 30, 2012 Fair Value Option	Dec. 31, 2011 Fair Value Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Fair value of retained interest					$ 6,100,000,000			$ 12,400,000,000
Mortgage and other loans receivable, Fair Value	130,000,000	107,000,000							130,000,000	107,000,000
Mortgage and other loans receivable, Outstanding Principal Amount									140,000,000	150,000,000
Mortgage and other loans receivable, Difference									(10,000,000)	(43,000,000)
Long-term debt, Fair Value	8,835,000,000	10,766,000,000							8,835,000,000	10,766,000,000
Long-term debt, Outstanding Principal Amount									6,483,000,000	8,624,000,000
Long-term debt, Difference									2,352,000,000	2,142,000,000
Disclosure level, past due mortgage or other loans receivable for which the fair value option was elected, number of days past due threshold									90 days	90 days
Number of shares of AIA sold			600	1,720
Ownership percentage held	15.90%					14.00%	33.00%
Proceeds received by the Department of the Treasury from the sale of AIG common stock			$ 2,000,000,000	$ 6,000,000,000

FAIR VALUE MEASUREMENTS (Details 11) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Dec. 31, 2010
Assets:
Mortgage and other loans receivable	$ 19,330	$ 19,489
Short-term investments	22,557	22,572
Cash	1,608	1,474	1,542	1,558
Liabilities:
Other liabilities	31,905	27,554
Total Fair Value
Assets:
Mortgage and other loans receivable	20,648	20,494
Other invested assets	3,660	3,390
Short-term investments	15,257	16,657
Cash	1,608	1,474
Liabilities:
Policyholder contract deposits associated with investment-type contracts	126,809	122,125
Other liabilities	2,674	896
Long-term debt	70,266	61,295
Level 1
Assets:
Cash	1,608
Liabilities:
Long-term debt	18,229
Level 2
Assets:
Mortgage and other loans receivable	549
Other invested assets	209
Short-term investments	15,257
Liabilities:
Policyholder contract deposits associated with investment-type contracts	138
Other liabilities	1,843
Long-term debt	50,605
Level 3
Assets:
Mortgage and other loans receivable	20,099
Other invested assets	3,451
Liabilities:
Policyholder contract deposits associated with investment-type contracts	126,671
Other liabilities	831
Long-term debt	1,792
Carrying Value
Assets:
Mortgage and other loans receivable	19,200	19,382
Other invested assets	4,947	4,701
Short-term investments	15,257	16,659
Cash	1,608	1,474
Liabilities:
Policyholder contract deposits associated with investment-type contracts	107,119	106,950
Other liabilities	2,676	896
Long-term debt	$ 64,913	$ 64,487

- Definition

Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Excludes cash and cash equivalents within disposal group and discontinued operation.

+ References+ Details

- Definition

Amount after allowance and deduction of deferred interest and fees, unamortized costs and premiums and discounts from face amounts, of loans and leases held in portfolio, including but not limited to, commercial and consumer loans. Excludes loans and leases covered under loss sharing agreements.

+ References+ Details

- Definition

Carrying amount of long-term debt, net of unamortized discount or premium, including current and noncurrent amounts. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ 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 $)	9 Months Ended	12 Months Ended
INVESTMENTS (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Other invested assets carried at fair value, Amortized Cost or Cost	$ 6,491,000,000	$ 5,155,000,000
Other invested assets carried at fair value, Gross Unrealized Gains	1,756,000,000	1,611,000,000
Other invested assets carried at fair value, Gross Unrealized Losses	(25,000,000)	(269,000,000)
Other invested assets carried at fair value, fair value	8,222,000,000	6,497,000,000
Total, Amortized Cost or Cost	254,857,000,000	257,745,000,000
Total, Gross Unrealized Gains	28,211,000,000	21,637,000,000
Total, Gross Unrealized Losses	(1,911,000,000)	(5,280,000,000)
Total, fair value	281,157,000,000	274,102,000,000
Total, Other-Than-Temporary Impairments in AOCI	1,189,000,000	(856,000,000)
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	246,690,000,000	250,770,000,000
Available-for-sale Securities, Gross Unrealized Gains	25,060,000,000	18,121,000,000
Available-for-sale Securities, Gross Unrealized Losses	(1,836,000,000)	(4,910,000,000)
Available for Sale Securities, fair value	269,914,000,000	263,981,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	1,189,000,000	(856,000,000)
Other details of available-for-sale securities
Available for sale securities not rated or rated below investment grade	28,900,000,000	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	4,049,000,000	5,661,000,000
Available-for-sale Securities, Gross Unrealized Gains	359,000,000	418,000,000
Available-for-sale Securities, Gross Unrealized Losses		(1,000,000)
Available for Sale Securities, fair value	4,408,000,000	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	33,716,000,000	35,017,000,000
Available-for-sale Securities, Gross Unrealized Gains	2,799,000,000	2,554,000,000
Available-for-sale Securities, Gross Unrealized Losses	(51,000,000)	(73,000,000)
Available for Sale Securities, fair value	36,464,000,000	37,498,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	(23,000,000)	(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	24,900,000,000	24,843,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,441,000,000	994,000,000
Available-for-sale Securities, Gross Unrealized Losses	(43,000,000)	(102,000,000)
Available for Sale Securities, fair value	26,298,000,000	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	134,977,000,000	134,699,000,000
Available-for-sale Securities, Gross Unrealized Gains	15,755,000,000	11,844,000,000
Available-for-sale Securities, Gross Unrealized Losses	(592,000,000)	(1,725,000,000)
Available for Sale Securities, fair value	150,140,000,000	144,818,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	125,000,000	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	49,048,000,000	50,550,000,000
Available-for-sale Securities, Gross Unrealized Gains	4,706,000,000	2,311,000,000
Available-for-sale Securities, Gross Unrealized Losses	(1,150,000,000)	(3,009,000,000)
Available for Sale Securities, fair value	52,604,000,000	49,852,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	1,087,000,000	(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	32,343,000,000	34,780,000,000
Available-for-sale Securities, Gross Unrealized Gains	3,231,000,000	1,387,000,000
Available-for-sale Securities, Gross Unrealized Losses	(394,000,000)	(1,563,000,000)
Available for Sale Securities, fair value	35,180,000,000	34,604,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	1,109,000,000	(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	9,258,000,000	8,449,000,000
Available-for-sale Securities, Gross Unrealized Gains	738,000,000	470,000,000
Available-for-sale Securities, Gross Unrealized Losses	(514,000,000)	(973,000,000)
Available for Sale Securities, fair value	9,482,000,000	7,946,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	(112,000,000)	(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	7,447,000,000	7,321,000,000
Available-for-sale Securities, Gross Unrealized Gains	737,000,000	454,000,000
Available-for-sale Securities, Gross Unrealized Losses	(242,000,000)	(473,000,000)
Available for Sale Securities, fair value	7,942,000,000	7,302,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	90,000,000	49,000,000
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	1,676,000,000	1,820,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,395,000,000	1,905,000,000
Available-for-sale Securities, Gross Unrealized Losses	(50,000,000)	(101,000,000)
Available for Sale Securities, fair value	3,021,000,000	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	1,517,000,000	1,682,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,355,000,000	1,839,000,000
Available-for-sale Securities, Gross Unrealized Losses	(50,000,000)	(100,000,000)
Available for Sale Securities, fair value	2,822,000,000	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	65,000,000	83,000,000
Available-for-sale Securities, Gross Unrealized Gains	28,000,000	60,000,000
Available for Sale Securities, fair value	93,000,000	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	94,000,000	55,000,000
Available-for-sale Securities, Gross Unrealized Gains	12,000,000	6,000,000
Available-for-sale Securities, Gross Unrealized Losses		(1,000,000)
Available for Sale Securities, fair value	$ 106,000,000	$ 60,000,000

INVESTMENTS (Details 2) (USD $) In Millions, unless otherwise specified	Sep. 30, 2012 security	Dec. 31, 2011
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	$ 9,287	$ 37,024
Gross Unrealized Losses, less than 12 Months	302	2,056
Fair Value, 12 Months or More	11,445	14,554
Gross Unrealized Losses, 12 Months or More	1,584	2,955
Fair Value, total	20,732	51,578
Gross Unrealized Losses, total	1,886	5,011
Number of individual fixed maturity securities in continuous unrealized loss position for longer than twelve months	1,679
Fixed maturity securities
Fair value and gross unrealized losses on AIG's available for sale securities
Number of individual fixed maturity securities	3,444
Bonds available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	8,970	36,408
Gross Unrealized Losses, less than 12 Months	257	1,955
Fair Value, 12 Months or More	11,407	14,554
Gross Unrealized Losses, 12 Months or More	1,579	2,955
Fair Value, total	20,377	50,962
Gross Unrealized Losses, total	1,836	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	68	142
Gross Unrealized Losses, less than 12 Months		1
Fair Value, total	68	142
Gross Unrealized Losses, total		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	457	174
Gross Unrealized Losses, less than 12 Months	30	1
Fair Value, 12 Months or More	197	669
Gross Unrealized Losses, 12 Months or More	21	72
Fair Value, total	654	843
Gross Unrealized Losses, total	51	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	1,067	3,992
Gross Unrealized Losses, less than 12 Months	14	67
Fair Value, 12 Months or More	512	424
Gross Unrealized Losses, 12 Months or More	29	35
Fair Value, total	1,579	4,416
Gross Unrealized Losses, total	43	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	6,383	18,099
Gross Unrealized Losses, less than 12 Months	168	937
Fair Value, 12 Months or More	5,121	5,907
Gross Unrealized Losses, 12 Months or More	424	788
Fair Value, total	11,504	24,006
Gross Unrealized Losses, total	592	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	659	10,624
Gross Unrealized Losses, less than 12 Months	14	714
Fair Value, 12 Months or More	2,012	4,148
Gross Unrealized Losses, 12 Months or More	380	849
Fair Value, total	2,671	14,772
Gross Unrealized Losses, total	394	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	193	1,697
Gross Unrealized Losses, less than 12 Months	28	185
Fair Value, 12 Months or More	1,786	1,724
Gross Unrealized Losses, 12 Months or More	486	788
Fair Value, total	1,979	3,421
Gross Unrealized Losses, total	514	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	143	1,680
Gross Unrealized Losses, less than 12 Months	3	50
Fair Value, 12 Months or More	1,779	1,682
Gross Unrealized Losses, 12 Months or More	239	423
Fair Value, total	1,922	3,362
Gross Unrealized Losses, total	242	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	254
Equity securities available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	317	616
Gross Unrealized Losses, less than 12 Months	45	101
Fair Value, 12 Months or More	38
Gross Unrealized Losses, 12 Months or More	5
Fair Value, total	355	616
Gross Unrealized Losses, total	50	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	313	608
Gross Unrealized Losses, less than 12 Months	45	100
Fair Value, 12 Months or More	37
Gross Unrealized Losses, 12 Months or More	5
Fair Value, total	350	608
Gross Unrealized Losses, total	50	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		6
Fair Value, total		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	4	2
Gross Unrealized Losses, less than 12 Months		1
Fair Value, 12 Months or More	1
Fair Value, total	5	2
Gross Unrealized Losses, total		$ 1

INVESTMENTS (Details 3) (USD $) In Millions, unless otherwise specified	Sep. 30, 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	$ 837
Due after one year through five years, Amortized Cost	4,143
Due after five years through ten years, Amortized Cost	4,058
Due after ten years, Amortized Cost	5,453
Mortgage-backed, asset-backed and collateralized, Amortized Cost	7,722
Fixed maturity available for sale in a loss postion , Amortized Cost, Total	22,213
Due in one year or less, Fair Value	830
Due after one year through five years, Fair Value	4,009
Due after five years through ten years, Fair Value	3,845
Due after ten years, Fair Value	5,121
Mortgage-backed, asset-backed and collateralized, Fair Value	6,572
Fixed Maturity Available for Sale Securities, Fair Value, Total	20,377
Bonds available for sale
Fixed Maturity Available-for-sale Securities by Contractual Maturity
Due in one year or less, Amortized Cost	11,080
Due after one year through five years, Amortized Cost	54,288
Due after five years through ten years, Amortized Cost	70,835
Due after ten years, Amortized Cost	61,439
Mortgage-backed, asset-backed and collateralized, Amortized Cost	49,048
Fixed maturity available for sale in a loss postion , Amortized Cost, Total	246,690	250,770
Due in one year or less, Fair Value	11,289
Due after one year through five years, Fair Value	57,505
Due after five years through ten years, Fair Value	78,191
Due after ten years, Fair Value	70,325
Mortgage-backed, asset-backed and collateralized, Fair Value	52,604
Fixed Maturity Available for Sale Securities, Fair Value, Total	$ 269,914

INVESTMENTS (Details 4) (USD $)	3 Months Ended		9 Months Ended
INVESTMENTS (Details 4) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Available for Sale Securities Disclosures
Gross Realized Gains	$ 981,000,000	$ 642,000,000	$ 2,811,000,000	$ 1,640,000,000
Gross Realized Losses	104,000,000	21,000,000	147,000,000	122,000,000
Aggregate fair value of available for sale securities sold	8,800,000,000	9,000,000,000	30,300,000,000	33,100,000,000
Net realized capital gains (losses)	900,000,000	621,000,000	2,700,000,000	1,500,000,000
Fixed maturity securities
Available for Sale Securities Disclosures
Gross Realized Gains	943,000,000	612,000,000	2,308,000,000	1,462,000,000
Gross Realized Losses	82,000,000	11,000,000	121,000,000	104,000,000
Equity securities available for sale
Available for Sale Securities Disclosures
Gross Realized Gains	38,000,000	30,000,000	503,000,000	178,000,000
Gross Realized Losses	$ 22,000,000	$ 10,000,000	$ 26,000,000	$ 18,000,000

INVESTMENTS (Details 5) (USD $)	Sep. 30, 2012	Dec. 31, 2011
TRADING SECURITIES
Trading Securities, Fair Value	$ 24,935,000,000	$ 24,489,000,000
Trading Securities, Percent of Total	100.00%	100.00%
Securities purchased through FRBNY's auction of Maiden Lane III assets	7,100,000,000
Fixed maturity securities
TRADING SECURITIES
Trading Securities, Fair Value	24,837,000,000	24,364,000,000
Trading Securities, Percent of Total	100.00%	99.00%
Fixed maturity securities \| U.S. government and government sponsored entities
TRADING SECURITIES
Trading Securities, Fair Value	7,708,000,000	7,504,000,000
Trading Securities, Percent of Total	31.00%	31.00%
Fixed maturity securities \| Non-U.S. government
TRADING SECURITIES
Trading Securities, Fair Value	2,000,000	35,000,000
Fixed maturity securities \| Corporate debt
TRADING SECURITIES
Trading Securities, Fair Value	1,318,000,000	816,000,000
Trading Securities, Percent of Total	5.00%	3.00%
Fixed maturity securities \| Obligations of states, municipalities and political subdivisions
TRADING SECURITIES
Trading Securities, Fair Value	81,000,000	257,000,000
Trading Securities, Percent of Total		1.00%
Fixed maturity securities \| Mortgage backed, asset backed and collateralized
TRADING SECURITIES
Trading Securities, Fair Value	15,720,000,000	8,767,000,000
Trading Securities, Percent of Total	64.00%	36.00%
Fixed maturity securities \| Residential mortgage backed securities (RMBS)
TRADING SECURITIES
Trading Securities, Fair Value	1,471,000,000	1,648,000,000
Trading Securities, Percent of Total	6.00%	7.00%
Fixed maturity securities \| Commercial mortgage-backed securities (CMBS)
TRADING SECURITIES
Trading Securities, Fair Value	2,102,000,000	1,837,000,000
Trading Securities, Percent of Total	9.00%	7.00%
Fixed maturity securities \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
TRADING SECURITIES
Trading Securities, Fair Value	12,147,000,000	5,282,000,000
Trading Securities, Percent of Total	49.00%	22.00%
Fixed maturity securities \| Maiden Lane II
TRADING SECURITIES
Trading Securities, Fair Value		1,321,000,000
Trading Securities, Percent of Total		5.00%
Fixed maturity securities \| Maiden Lane III
TRADING SECURITIES
Trading Securities, Fair Value	8,000,000	5,664,000,000
Trading Securities, Percent of Total		23.00%
Equity securities
TRADING SECURITIES
Trading Securities, Fair Value	$ 98,000,000	$ 125,000,000
Trading Securities, Percent of Total		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) (USD $)	9 Months Ended		3 Months Ended	9 Months Ended
INVESTMENTS (Details 6) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012 Maiden Lane III	Sep. 30, 2012 Maiden Lane III
VARIABLE INTEREST ENTITY
Equity in earnings of consolidated subsidiaries			$ 8,470,000,000	$ 8,540,000,000
Equity in (income) loss from equity method investments, net of dividends or distributions	(527,000,000)	(840,000,000)		(5,000,000,000)
Securities purchased through FRBNY's auction of Maiden Lane III assets	$ 7,100,000,000		$ 7,100,000,000	$ 7,100,000,000

- Definition

This item represents the entity's proportionate share for the period of the net income (loss) of its investee (such as unconsolidated subsidiaries and joint ventures) to which the equity method of accounting is applied. This item includes income or expense related to stock-based compensation based on the investor's grant of stock to employees of an equity method investee.

+ References

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 95

-Paragraph 28

-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 Accounting Standards Codification

-Topic 230

-SubTopic 10

-Section 45

-Paragraph 28

-Subparagraph (b)

-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 9

-Article 5

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

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 18

-Paragraph 6

-Subparagraph b

-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 Accounting Standards Codification

-Topic 323

-SubTopic 10

-Section 45

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=16385135&loc=d3e33749-111570

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

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 18

-Paragraph 19

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 225

-SubTopic 10

-Section S99

-Paragraph 2

-Subparagraph (SX 210.5-03.12)

-URI http://asc.fasb.org/extlink&oid=6880815&loc=d3e20235-122688

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph 11

-Article 7

+ Details

INVESTMENTS (Details 7) (Fixed maturity securities, USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Fixed maturity securities
Other Than Temporary Impairment Credit Losses Recognized in Earnings
Balance at the beginning of the period	$ 6,090	$ 6,396	$ 6,504	$ 6,786
Increases due to:
Credit impairments on new securities subject to impairment losses		169	172	254
Additional credit impairments on previously impaired securities	45	222	421	457
Reduction due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell	(297)	(133)	(815)	(458)
Credit impaired securities for which there is a current intent or anticipated requirement to sell	(5)		(5)
Accretion on securities previously impaired due to credit	(215)	(148)	(668)	(355)
Hybrid securities with embedded credit derivatives reclassified to Bond trading securities				(179)
Other	(3)		6	1
Balance at the end of the period	$ 5,615	$ 6,506	$ 5,615	$ 6,506

INVESTMENTS (Details 8) (Purchased Credit Impaired (PCI) Securities, USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Purchased Credit Impaired (PCI) Securities
Purchased Credit Impaired (PCI) Securities
Contractually required payments (principal and interest)	$ 18,315		$ 18,315
Cash flows expected to be collected	14,286		14,286
Recorded investment in acquired securities	9,128		9,128
Outstanding principal balance	11,957		11,957		10,119
Amortized cost	7,743		7,743		7,006
Fair value	8,734		8,734		6,535
Changes in activity for the accretable yield on PCI securities:
Balance, beginning of period	4,950	2,276	4,135
Newly purchased PCI securities	114	306	1,532	2,688
Disposals	(130)		(298)
Accretion	(165)	(119)	(510)	(194)
Effect of changes in interest rate indices	(39)	(46)	(200)	(54)
Net reclassification (to) from non-accretable difference, including effects of prepayments	53	(93)	124	(116)
Balance, end of period	$ 4,783	$ 2,324	$ 4,783	$ 2,324

INVESTMENTS (Details 9) (USD $)	9 Months Ended	12 Months Ended
INVESTMENTS (Details 9) (USD $)	Sep. 30, 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		$ 2,100,000,000
Fair value of securities transferred under repurchase agreements accounted for as purchases	7,500,000,000	6,800,000,000
Collateral posted for repurchase transactions repledged	1,700,000,000	122,000,000
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
FHLBs
Pledged investments
Fair value of available-for-sale securities	95,000,000
Amount owned by subsidiaries	84,000,000	77,000,000
Secured financing
Pledged investments
Fair value of available-for-sale securities	6,300,000,000	2,300,000,000
Fair value of trading securities	2,400,000,000	2,800,000,000
GIAs
Pledged investments
Fair value of trading securities	$ 4,700,000,000	$ 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									9 Months Ended	12 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Dec. 31, 2010	Sep. 30, 2012 Commercial mortgages	Dec. 31, 2011 Commercial mortgages	Sep. 30, 2011 Commercial mortgages	Dec. 31, 2010 Commercial mortgages	Sep. 30, 2012 Commercial mortgages California	Dec. 31, 2011 Commercial mortgages California	Sep. 30, 2012 Commercial mortgages New York	Dec. 31, 2011 Commercial mortgages New York	Sep. 30, 2012 Life insurance policy loans	Dec. 31, 2011 Life insurance policy loans	Sep. 30, 2012 Commercial loans, other loans and notes receivable	Dec. 31, 2011 Commercial loans, other loans and notes receivable
Composition of Mortgages and other loans receivable
Total mortgage and other loans receivable	$ 19,818	$ 20,229			$ 13,679	$ 13,554							$ 2,962	$ 3,049	$ 3,177	$ 3,626
Allowance for losses	(488)	(740)	(761)	(878)	(193)	(305)	(349)	(470)
Mortgage and other loans receivable, net	$ 19,330	$ 19,489
Percentage of mortgage loans in geographic area									23.00%	15.00%	23.00%	15.00%
Percentage of loans that are current as to payments of principal and interest					99.00%	99.00%

- Definition

Amount of allowance to cover probable credit losses on loans and leases. Includes carryover of or adjustments to the allowance for loan losses in connection with business combinations. Excludes allowance for loans and leases covered under loss sharing agreements.

+ References

Reference 1: 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 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 03

-Paragraph 7

-Subparagraph d

-Article 9

Reference 3: 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 4: 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 5: 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

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

-Publisher OTS

-Name Federal Regulation (FR)

-Number Title 12

-Section 563c.102

-Paragraph 8

-Subparagraph a(ii)

-Chapter V

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

-Publisher SEC

-Name Staff Accounting Bulletin (SAB)

-Number Topic 6

-Section L

-Subsection 1

+ Details

- Definition

+ References+ Details

LENDING ACTIVITIES (Details 2) (USD $) In Millions, unless otherwise specified											9 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Dec. 31, 2010	Sep. 30, 2012 Apartments	Sep. 30, 2012 Offices	Sep. 30, 2012 Retail	Sep. 30, 2012 Industrial	Sep. 30, 2012 Hotel	Sep. 30, 2012 Others	Sep. 30, 2012 Commercial mortgages loan
Credit quality indicators for commercial mortgage loans
Number of loans in good standing											1,000
Number of loans restructured											8
Number of loans 90 days or less delinquent											2
Number of loans greater than 90 days delinquent or in process of foreclosure											15
Number of Loans											1,025
In good standing					$ 1,582	$ 4,808	$ 2,577	$ 1,795	$ 1,064	$ 1,383	$ 13,209
Restructured					49	206	7	8		22	292
90 days or less delinquent							26				26
Greater than 90 days delinquent or in process of foreclosure						64	1			87	152
Mortgage and other loans receivable, net	19,330	19,489			1,631	5,078	2,611	1,803	1,064	1,492	13,679
Valuation allowance	$ 488	$ 740	$ 761	$ 878	$ 5	$ 99	$ 17	$ 28	$ 1	$ 43	$ 193
Percentage of loans that are current as to payments of principal and interest											97.00%
Percentage restructured											2.00%
Percentage greater than 90 days delinquent or in foreclosure											1.00%
Percentage Total											100.00%
Percentage of loans with valuation allowance											1.00%

LENDING ACTIVITIES (Details 3) (USD $) In Millions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012	Sep. 30, 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	(176)	(86)
Recoveries of loans previously charged off	6	36
Net charge-offs	(170)	(50)
Provision for loan losses	(75)	(12)
Other	(7)	(55)
Allowance at the end of the period	488	761
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	(12)	(40)
Recoveries of loans previously charged off	6	36
Net charge-offs	(6)	(4)
Provision for loan losses	(106)	(62)
Other		(55)
Allowance at the end of the period	193	349
Allowance related to individually assessed credit losses	38	105
Commercial mortgage loans	332	570
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	(164)	(46)
Net charge-offs	(164)	(46)
Provision for loan losses	31	50
Other	(7)
Allowance at the end of the period	$ 295	$ 412

- 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 $)	Sep. 30, 2012	Dec. 31, 2011
Assets:
Trading securities	$ 24,837,000,000	$ 24,364,000,000
Mortgage and other loans receivable	19,330,000,000	19,489,000,000
Other invested assets	35,426,000,000	40,744,000,000
Liabilities:
Other long-term debt	73,748,000,000	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
VIE Assets	8,900,000,000	22,800,000,000
VIE Liabilities	1,700,000,000	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	4,300,000,000	17,200,000,000
Other asset accounts	2,600,000,000	3,400,000,000
Liabilities:
Other long-term debt	900,000,000	1,700,000,000
Other liability accounts	800,000,000	900,000,000
Consolidated VIE \| AIA/ALICO SPVs
VARIABLE INTEREST ENTITY
VIE Assets	600,000,000	14,200,000,000
VIE Liabilities	100,000,000	100,000,000
Liabilities:
Cash held in escrow	600,000,000
Consolidated VIE \| Real estate and investment funds
VARIABLE INTEREST ENTITY
VIE Assets	1,100,000,000	1,500,000,000
VIE Liabilities	300,000,000	400,000,000
Maximum Exposure to Loss, Off-Balance Sheet	100,000,000	100,000,000
Consolidated VIE \| Structured Investment Vehicle
VARIABLE INTEREST ENTITY
VIE Assets	1,600,000,000	1,000,000,000
VIE Liabilities	100,000,000
Consolidated VIE \| Affordable housing partnerships
VARIABLE INTEREST ENTITY
VIE Assets	2,300,000,000	2,500,000,000
VIE Liabilities	200,000,000	100,000,000
Consolidated VIE \| Other
VARIABLE INTEREST ENTITY
VIE Assets	3,300,000,000	3,600,000,000
VIE Liabilities	1,000,000,000	2,000,000,000
Unconsolidated VIE
VARIABLE INTEREST ENTITY
Total VIE Assets	15,900,000,000	47,500,000,000
Maximum Exposure to Loss, On-Balance Sheet	2,400,000,000	9,700,000,000
Maximum Exposure to Loss, Off-Balance Sheet	200,000,000	300,000,000
Total maximum exposure to loss	2,600,000,000	10,000,000,000
Assets:
Trading securities	100,000,000	7,100,000,000
Other invested assets	2,300,000,000	2,600,000,000
Unconsolidated VIE assets in balance sheet	2,400,000,000	9,700,000,000
Unconsolidated VIE \| Real estate and investment funds
VARIABLE INTEREST ENTITY
Total VIE Assets	14,300,000,000	18,300,000,000
Maximum Exposure to Loss, On-Balance Sheet	1,800,000,000	2,100,000,000
Maximum Exposure to Loss, Off-Balance Sheet	200,000,000	300,000,000
Total maximum exposure to loss	2,000,000,000	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		27,100,000,000
Maximum Exposure to Loss, On-Balance Sheet		7,000,000,000
Total maximum exposure to loss		7,000,000,000
Unconsolidated VIE \| Other
VARIABLE INTEREST ENTITY
Total VIE Assets	1,100,000,000	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	Sep. 30, 2012	Dec. 31, 2011
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	$ 97,414	$ 106,089
Gross Derivative Assets, Fair Value	7,872	9,660
Gross Derivative Liabilities, Notional Amount	114,842	125,062
Gross Derivative Liabilities, Fair Value	10,959	12,097
Bifurcated embedded derivatives
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Liabilities, Notional Amount	22,000	18,300
Gross Derivative Liabilities, Fair Value	1,300	900
Derivatives designated as hedging instruments \| Interest rate contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Liabilities, Notional Amount	366	481
Gross Derivative Liabilities, Fair Value	24	38
Derivatives designated as hedging instruments \| Foreign exchange contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Liabilities, Notional Amount		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	97,414	106,089
Gross Derivative Assets, Fair Value	7,872	9,660
Gross Derivative Liabilities, Notional Amount	114,476	124,401
Gross Derivative Liabilities, Fair Value	10,935	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	66,896	72,660
Gross Derivative Assets, Fair Value	7,285	8,286
Gross Derivative Liabilities, Notional Amount	68,939	73,248
Gross Derivative Liabilities, Fair Value	6,522	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	5,080	3,278
Gross Derivative Assets, Fair Value	53	145
Gross Derivative Liabilities, Notional Amount	2,969	3,399
Gross Derivative Liabilities, Fair Value	166	178
Derivatives not designated as hedging instruments \| Equity contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	5,546	4,748
Gross Derivative Assets, Fair Value	264	263
Gross Derivative Liabilities, Notional Amount	22,714	18,911
Gross Derivative Liabilities, Fair Value	1,479	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	633	691
Gross Derivative Assets, Fair Value	142	136
Gross Derivative Liabilities, Notional Amount	626	861
Gross Derivative Liabilities, Fair Value	143	146
Derivatives not designated as hedging instruments \| Credit contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	167	407
Gross Derivative Assets, Fair Value	60	89
Gross Derivative Liabilities, Notional Amount	17,618	25,857
Gross Derivative Liabilities, Fair Value	2,349	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	19,092	24,305
Gross Derivative Assets, Fair Value	68	741
Gross Derivative Liabilities, Notional Amount	1,610	2,125
Gross Derivative Liabilities, Fair Value	$ 276	$ 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 $)	Sep. 30, 2012	Dec. 31, 2011
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	$ 97,414,000,000	$ 106,089,000,000
Derivative Assets, Fair Value	7,872,000,000	9,660,000,000
Derivative Liabilities, Notional Amount	114,842,000,000	125,062,000,000
Derivative Liabilities, Fair Value	10,959,000,000	12,097,000,000
Derivative assets, Counterparty netting	(3,219,000,000)	(3,660,000,000)
Derivative assets, Cash collateral	(1,197,000,000)	(1,501,000,000)
Total derivative assets, net	3,456,000,000	4,499,000,000
Derivative liabilities, Counterparty netting	(3,219,000,000)	(3,660,000,000)
Derivative liabilities, Cash collateral	(2,118,000,000)	(2,786,000,000)
Total derivative liabilities, net	5,622,000,000	5,651,000,000
Less: Bifurcated embedded derivative liabilities, fair value	1,308,000,000	918,000,000
Total derivative assets on consolidated balance sheet	3,456,000,000	4,499,000,000
Total derivative liabilities on consolidated balance sheet	4,314,000,000	4,733,000,000
Collateral
Collateral posted to third parties for derivative transactions	4,600,000,000	4,700,000,000
Collateral obtained from third parties for derivative transactions	1,500,000,000	1,600,000,000
Global Capital Markets (GCM) derivatives
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	87,274,000,000	94,036,000,000
Derivative Assets, Fair Value	6,827,000,000	8,472,000,000
Derivative Liabilities, Notional Amount	85,934,000,000	98,442,000,000
Derivative Liabilities, Fair Value	8,428,000,000	10,021,000,000
All other derivatives
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	10,140,000,000	12,053,000,000
Derivative Assets, Fair Value	1,045,000,000	1,188,000,000
Derivative Liabilities, Notional Amount	28,908,000,000	26,620,000,000
Derivative Liabilities, Fair Value	$ 2,531,000,000	$ 2,076,000,000

DERIVATIVES AND HEDGE ACCOUNTING (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Derivative instruments gain (loss):
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships	$ (70)	$ (1)	$ (13)	$ (36)
Gain (loss) recognized in OCI on derivatives	(1)	(2)	(2)	(5)
Derivatives designated as hedging instruments \| Interest rate contracts \| Fair value hedging
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives			(2)	(3)
Gain (loss) recognized in earnings on hedged items	19	39	99	127
Gain (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	18	39	97	125
Derivatives designated as hedging instruments \| Interest rate contracts \| Cash flow hedging
Derivative instruments gain (loss):
Gain (loss) recognized in OCI on derivatives	(1)	(2)	(2)	(5)
Gain (loss) reclassified from Accumulated OCI into earnings	(4)	(15)	(13)	(49)
Deferred net loss in accumulated other comprehensive income expected to be recognized in earnings during the next 12 months			15
Derivatives not designated as hedging instruments
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(321)	198	(454)	212
Derivatives not designated as hedging instruments \| Policy fees
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	42	29	115	80
Derivatives not designated as hedging instruments \| Net investment income
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives		2	1	6
Derivatives not designated as hedging instruments \| Net realized capital gains (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(183)	(163)	(843)	13
Derivatives not designated as hedging instruments \| Other income (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(180)	330	273	113
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(220)	523	(208)	270
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(93)	84	(3)	80
Derivatives not designated as hedging instruments \| Equity contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(206)	416	(601)	379
Embedded derivative gains (losses)	(75)	(812)	(268)	(807)
Derivatives not designated as hedging instruments \| Commodity contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	2	(1)		6
Derivatives not designated as hedging instruments \| Credit contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	200	(83)	414	218
Derivatives not designated as hedging instruments \| Other contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	$ (4)	$ (741)	$ (56)	$ (741)

DERIVATIVES AND HEDGE ACCOUNTING (Details 4) (USD $)	3 Months Ended		9 Months Ended
DERIVATIVES AND HEDGE ACCOUNTING (Details 4) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Credit derivatives:
Fair value of hybrid securities	$ 7,000,000,000		$ 7,000,000,000
Current par value of hybrid securities	15,400,000,000		15,400,000,000
Credit Risk-Related Contingent Features
Credit derivatives:
Collateral posted	4,400,000,000		4,400,000,000
Aggregate fair value of net liability position	4,000,000,000		4,000,000,000
Additional collateral requirements, one-notch downgrade	125,000,000		125,000,000
Further additional collateral requirements, one-notch downgrade	165,000,000		165,000,000
Global Capital Markets (GCM) derivatives
Credit derivatives:
Credit derivative transactions hedging credit risk	81,000,000		81,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS
Credit derivatives:
Notional amount of credit risk derivatives	17,107,000,000		17,107,000,000		24,619,000,000
Fair Value of Derivative (Asset) Liability	2,257,000,000		2,257,000,000		3,223,000,000
Unrealized market valuation gain (loss) on credit derivatives	204,000,000	3,000,000	401,000,000	232,000,000
Unrealized gains (losses) on derivatives from change in credit valuation	(12,000,000)	25,000,000	(36,000,000)	27,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Regulatory Capital
Credit derivatives:
Notional amount of credit risk derivatives	1,037,000,000		1,037,000,000		6,370,000,000
Fair Value of Derivative (Asset) Liability					9,000,000
Unrealized market valuation gain (loss) on credit derivatives	6,000,000	(10,000,000)	9,000,000	6,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Regulatory Capital \| Corporate loans
Credit derivatives:
Notional amount of credit risk derivatives	898,000,000		898,000,000		1,830,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Regulatory Capital \| Corporate loans \| Maximum
Credit derivatives:
Derivative weighted average maturity			1 year
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Regulatory Capital \| Prime residential mortgages
Credit derivatives:
Notional amount of credit risk derivatives	139,000,000		139,000,000		3,653,000,000
Unrealized market valuation gain (loss) on credit derivatives				6,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Regulatory Capital \| Prime residential mortgages \| Maximum
Credit derivatives:
Derivative weighted average maturity			1 year
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Regulatory Capital \| Other
Credit derivatives:
Notional amount of credit risk derivatives					887,000,000
Fair Value of Derivative (Asset) Liability					9,000,000
Unrealized market valuation gain (loss) on credit derivatives	6,000,000	(10,000,000)	9,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Arbitrage
Credit derivatives:
Notional amount of credit risk derivatives	16,070,000,000		16,070,000,000		17,260,000,000
Fair Value of Derivative (Asset) Liability	2,257,000,000		2,257,000,000		3,204,000,000
Unrealized market valuation gain (loss) on credit derivatives	184,000,000	14,000,000	389,000,000	241,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Arbitrage \| Multi-sector CDOs
Credit derivatives:
Notional amount of credit risk derivatives	4,363,000,000		4,363,000,000		5,476,000,000
Fair Value of Derivative (Asset) Liability	2,183,000,000		2,183,000,000		3,077,000,000
Unrealized market valuation gain (loss) on credit derivatives	142,000,000	47,000,000	336,000,000	230,000,000
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			142,000,000
Unrealized market valuation gain (losses) on AIGFP super senior credit default swap portfolio			(142,000,000)
Notional amount of CDS with cash settlement provisions	3,700,000,000		3,700,000,000		4,600,000,000
Derivative weighted average maturity			5 years 9 months 18 days
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Arbitrage \| Corporate debt
Credit derivatives:
Notional amount of credit risk derivatives	11,707,000,000		11,707,000,000		11,784,000,000
Fair Value of Derivative (Asset) Liability	74,000,000		74,000,000		127,000,000
Unrealized market valuation gain (loss) on credit derivatives	42,000,000	(33,000,000)	53,000,000	11,000,000
Notional amount of CDS written on super senior tranches of CLOs	1,200,000,000		1,200,000,000		1,200,000,000
Derivative weighted average maturity			3 years 4 months 24 days
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Mezzanine Tranches
Credit derivatives:
Notional amount of credit risk derivatives					989,000,000
Fair Value of Derivative (Asset) Liability					10,000,000
Unrealized market valuation gain (loss) on credit derivatives	14,000,000	(1,000,000)	3,000,000	(15,000,000)
Global Capital Markets (GCM) derivatives \| Written single name CDS
Credit derivatives:
Notional amount of credit risk derivatives	633,000,000		633,000,000
Notional amount of CDS purchased offsets	52,000,000		52,000,000
Derivative weighted average maturity			3 years
Notional amount of single name CDS maximum exposure	581,000,000		581,000,000
Fair value of derivative liability	72,000,000		72,000,000
Collateral posted	$ 85,000,000		$ 85,000,000

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details) (USD $)	3 Months Ended	9 Months Ended					9 Months Ended			9 Months Ended				1 Months Ended					1 Months Ended		9 Months Ended	12 Months Ended	9 Months Ended	1 Months Ended			9 Months Ended			9 Months Ended				9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2012 Maximum Chartis U.S.	Sep. 30, 2012 Consolidated 2008 Securities Litigation complaint	Mar. 20, 2009 Consolidated 2008 Securities Litigation complaint	Mar. 19, 2009 ERISA Litigation II complaint	Sep. 30, 2012 Canadian Securities Class Action claim	Sep. 30, 2012 Brookfield litigation related to AIGFP	Sep. 30, 2012 Fitzpatrick matter	Sep. 30, 2012 Behm matter	Oct. 02, 2010 Behm matter action	Sep. 30, 2012 False Claims Act complaint multiple	Feb. 25, 2010 False Claims Act complaint individual	Jun. 30, 2012 2006 Regulatory Settlements	Feb. 28, 2006 2006 Regulatory Settlements	Sep. 30, 2012 2006 Regulatory Settlements	Mar. 31, 2012 2006 Regulatory Settlements	Dec. 17, 2010 2006 Regulatory Settlements	Jan. 31, 2012 Consolidated 2004 Securities Litigation	Jul. 31, 2010 Consolidated 2004 Securities Litigation	Sep. 30, 2012 Consolidated 2004 Securities Litigation shareholder individual Objector	Dec. 31, 2011 Consolidated 2004 Securities Litigation fund	Sep. 30, 2012 Consolidated 2004 Securities Litigation Minimum	Feb. 29, 2012 Workers' compensation Premium Reporting plaintiff	Apr. 30, 2011 Workers' compensation Premium Reporting	May 31, 2007 Workers' compensation Premium Reporting	Sep. 30, 2012 Workers' compensation Premium Reporting	Sep. 30, 2012 The Multi-District Litigation state complaint action defendant case conspiracy class	May 20, 2011 The Multi-District Litigation	Sep. 30, 2012 The Heritage Corp. of South Florida v. National Union Fire Ins. Co.	Sep. 30, 2012 Caremark complaint	Sep. 30, 2012 Use of SSDMF	Dec. 31, 2012 Use of SSDMF	Sep. 30, 2012 Multi-state examination of regulatory issues in insurance products state	Sep. 30, 2012 Starr International Litigation
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Increase (decrease) in estimated litigation liability	$ 15,000,000	$ 742,000,000
Increase in the estimated reserves for incurred but not reported death claims																																	55,000,000
Payments for regulatory assessment																																11,000,000
Number of states participating in the accident and health products examination																																		39
Number of objectors to class action suit settlement																					2
Number of purported class action complaints consolidated				4	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
Damages claimed							500,000,000			67,000,000																					3,200,000,000
Punitive damages claimed							50,000,000
Percentage of ownership in AIG received by Department of the Treasury																																			80.00%
Number of objectors appealing the final approval of the settlement																					2
Maximum contractual loss								1,500,000,000
Damages claimed, amount currently due									196,000,000
Damages claimed, potential future amounts									78,000,000
Range of loss, minimum									0	0
Range of loss, maximum									274,000,000	67,000,000
Counterclaim sought by AIG										3,600,000
Accrued loss contingency																													7,000,000
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
Deposits into fund under the supervision of the SEC, subsequently disbursed															800,000,000
Workers Compensation Fund escrow, included in Other Assets																450,000,000	597,000,000	338,000,000
Payment released workers compensation escrow accounts in satisfaction of fines, penalties and premium tax obligations														147,000,000
Settlement amount total																				725,000,000								37,000,000
Amount paid under the terms of the separate settlement agreement with Florida																			4,000,000
Minimum number of conspiracies alleged																												1
Settlement agreement, amount which can be paid out of the remaining balance in Workers Compensation Fund																											191,000,000
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 cases that have proceeded																												4
Damages sought, in excess																									$ 3,000,000,000	$ 1,000,000,000				$ 75,000
Number of intervening plaintiffs																								7

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details 2) (USD $) In Billions, unless otherwise specified	9 Months Ended
	Sep. 30, 2012 aircraft engine
Other Commitments
Other Commitments	$ 2.4
Flight Equipment
COMMITMENTS
Number of used aircraft	7
Number of new spare engines deliverable	9
International Lease Finance Corporation (ILFC) \| Flight Equipment
COMMITMENTS
Aggregate estimated total remaining payments	$ 17.7
International Lease Finance Corporation (ILFC) \| New Aircraft
COMMITMENTS
Purchase commitment, number of aircraft purchased	233
International Lease Finance Corporation (ILFC) \| Additional Aircraft
COMMITMENTS
Purchase commitment, number of aircraft purchased	7
International Lease Finance Corporation (ILFC) \| A320 New Engine Option (neo)
COMMITMENTS
Number of additional aircraft the entity has the right to purchase	50

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details 3)	9 Months Ended				9 Months Ended
CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details 3)	Sep. 30, 2012 MetLife Inc. (MetLife) USD ($)	Sep. 30, 2012 Standby letters of credit USD ($)	Sep. 30, 2012 Indemnification related to breaches of general representations and warranties AIG Star and AIG Edison USD ($)	Sep. 30, 2012 Indemnification related to breaches of general representations and warranties AIG Star and AIG Edison JPY (¥)	Sep. 30, 2012 Tax indemnification MetLife Inc. (MetLife) USD ($)
Guarantees
Amount outstanding under standby letters of credit at end of period		$ 322,000,000
Aggregate deductible amount under guarantee					50,000,000
Maximum amount exposed under guarantee			1,300,000,000	102,000,000,000	200,000,000
Payments made or placed in escrow accounts at end of period	600,000,000
Amount required to be held in escrow	0
Minimum amount exposed under guarantee			52,600,000	4,100,000,000
Amount released in accordance with the MetLife escrow agreement from the sale of ALICO	$ 950,000,000

TOTAL EQUITY (Details)	1 Months Ended				9 Months Ended
TOTAL EQUITY (Details)	Sep. 29, 2012	Aug. 31, 2012	May 31, 2012	Mar. 31, 2012	Sep. 30, 2012	Sep. 30, 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)					703,116	100,113,761
Settlement of equity unit stock purchase contracts (in shares)						3,606,417
Shares exchanged						1,655,026,284
Shares repurchased					(421,228,855)
Shares, end of period					(430,316,923)
Shares, end of period					1,906,612,666
Shares, end of period					1,476,295,743	1,899,209,621
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)					44,567	100,113,761
Settlement of equity unit stock purchase contracts (in shares)						3,606,417
Shares exchanged						1,655,037,962
Shares, end of period					1,906,612,666	1,905,882,207
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)					658,549
Shares exchanged						(11,678)
Shares repurchased	(153,846,153)	(98,360,656)	(65,573,770)	(103,448,276)	(421,228,855)
Shares, end of period					(430,316,923)	(6,672,586)
Series E \| Preferred Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year						400,000
Shares exchanged						(400,000)
Series F \| Preferred Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year						300,000
Shares exchanged						(300,000)
Series C \| Preferred Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year						100,000
Shares exchanged						(100,000)
Series G \| Preferred Stock
The following table presents a roll forward of outstanding shares:
Issuances (in shares)						20,000
Shares cancelled						(20,000)

TOTAL EQUITY (Details 2) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended					9 Months Ended
	Sep. 29, 2012	Aug. 31, 2012	May 31, 2012	Mar. 31, 2012	May 31, 2011	Sep. 30, 2012
Share Issuances and Repurchases
Interest ownership by the Department of the Treasury (as a percent)						15.90%
Interest ownership by the Department of the Treasury before stock offering and sale (as a percent)						92.00%
Common stock owned by the Department of the Treasurybefore public offering (in shares)					1,700,000,000
Common stock owned by the Department of the Treasury (in shares)						234,200,000
Shares repurchased						421,228,855
Shares repurchased						$ 13,000
Common Stock
Share Issuances and Repurchases
Common stock sold by the Department of the Treasury (in shares)	636,923,075	188,524,590	188,524,589	206,896,552	200,000,000	1,420,868,806
Proceeds from sale of common stock by the Department of the Treasury	20,700	5,750	5,750	6,000	5,800	44,000
Initial public offering price (in dollars per share)	$ 32.50	$ 30.50	$ 30.50	$ 29.00	$ 29.00
Treasury Stock
Share Issuances and Repurchases
Shares repurchased	153,846,153	98,360,656	65,573,770	103,448,276		421,228,855
Shares repurchased	$ 5,000	$ 3,000	$ 2,000	$ 3,000		$ 13,000

TOTAL EQUITY (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			$ 5,153
Cumulative effect of change in accounting principle		(6,463)		(6,463)
Change in unrealized appreciation (depreciation) of investments	3,402	(905)	6,597	(380)
Total, Other-Than-Temporary Impairments in AOCI	(906)	266	(1,937)	(271)
Changes in foreign currency translation adjustments	258	(704)	(167)	(1,253)
Change in net derivative gains (losses) arising from cash flow hedging activities	3	14	11	45
Deferred tax asset (liability)	(1,490)	(763)	(2,710)	(231)
Deferred tax asset (liability)	(409)	82	(810)	(166)
Deferred tax asset (liability)	(1,071)	(1,103)	(1,980)	(574)
Deferred tax asset (liability)	(18)	122	71	442
Deferred tax asset (liability)	(1)	(71)	14	(31)
Deferred tax asset (liability)	9	207	(5)	98
Other comprehensive income (loss)	3,099	(3,170)	5,734	(1,836)
Other comprehensive income (loss)	497	(184)	1,127	105
Other comprehensive income (loss)	2,331	(2,008)	4,617	(954)
Other comprehensive income (loss)	240	(582)	(96)	(811)
Other comprehensive income (loss)	2	(57)	25	14
Other comprehensive income (loss)	29	(339)	61	(190)
Acquisition of noncontrolling interest				(559)
Balance, end of period, net of tax	10,887		10,887
Accumulated Other Comprehensive Income (Loss)
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			5,153	7,624
Cumulative effect of change in accounting principle		(81)		(81)
Change in unrealized appreciation (depreciation) of investments			9,946	5,756
Change in deferred acquisition costs adjustment and other			(903)	(580)
Change in future policy benefits			(509)	(1,665)
Changes in foreign currency translation adjustments			(167)	428
Change in net derivative gains (losses) arising from cash flow hedging activities			11	45
Net actuarial gain (loss)			102	(943)
Prior service credit			(36)	395
Change attributable to divestitures and deconsolidations				(5,041)
Deferred tax asset (liability)			(2,710)	(231)
Other comprehensive income (loss)			5,734	(1,836)
Acquisition of noncontrolling interest				88
Noncontrolling interests				(153)
Balance, end of period, net of tax	10,887	5,948	10,887	5,948
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Taken
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			(736)	(659)
Total, Other-Than-Temporary Impairments in AOCI			2,045	149
Change in deferred acquisition costs adjustment and other			(37)	99
Change in future policy benefits			(71)
Change attributable to divestitures and deconsolidations				23
Deferred tax asset (liability)			(810)	(166)
Other comprehensive income (loss)			1,127	105
Noncontrolling interests				3
Balance, end of period, net of tax	391	(557)	391	(557)
Unrealized Appreciation (Depreciation) of All Other Investments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			7,891	8,888
Change in unrealized appreciation (depreciation) of investments			7,901	5,607
Change in deferred acquisition costs adjustment and other			(866)	(679)
Change in future policy benefits			(438)	(1,665)
Change attributable to divestitures and deconsolidations				(3,643)
Deferred tax asset (liability)			(1,980)	(574)
Other comprehensive income (loss)			4,617	(954)
Acquisition of noncontrolling interest				43
Noncontrolling interests			7	(160)
Balance, end of period, net of tax	12,501	8,420	12,501	8,420
Unrealized Appreciation (Depreciation) of All Other Investments \| Increases (decreases) from previously reported amounts \| New Accounting Pronouncement - Other-than-temporary Impairments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Cumulative effect of change in accounting principle		283		283
Foreign Currency Translation Adjustments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			(1,028)	298
Changes in foreign currency translation adjustments			(167)	428
Change attributable to divestitures and deconsolidations				(1,681)
Deferred tax asset (liability)			71	442
Other comprehensive income (loss)			(96)	(811)
Acquisition of noncontrolling interest				62
Noncontrolling interests			(7)	4
Balance, end of period, net of tax	(1,117)	(819)	(1,117)	(819)
Foreign Currency Translation Adjustments \| Increases (decreases) from previously reported amounts \| New Accounting Pronouncement - Other-than-temporary Impairments
A rollforward of Accumulated Other Comprehensive Income (Loss)
Cumulative effect of change in accounting principle		(364)		(364)
Net Derivative Gains (Losses) Arising From Cash Flow Hedging Activities
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			(17)	(34)
Change in net derivative gains (losses) arising from cash flow hedging activities			11	45
Deferred tax asset (liability)			14	(31)
Other comprehensive income (loss)			25	14
Balance, end of period, net of tax	8	(20)	8	(20)
Change in Retirement Plan Liabilities Adjustment
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax			(957)	(869)
Net actuarial gain (loss)			102	(943)
Prior service credit			(36)	395
Change attributable to divestitures and deconsolidations				260
Deferred tax asset (liability)			(5)	98
Other comprehensive income (loss)			61	(190)
Acquisition of noncontrolling interest				(17)
Balance, end of period, net of tax	$ (896)	$ (1,076)	$ (896)	$ (1,076)

TOTAL EQUITY (Details 4) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Taken
Unrealized change arising during period	$ 922	$ (235)	$ 1,949	$ 265
Less: Reclassification adjustments included in net income (loss)	16	31	12	(6)
Total, Other-Than-Temporary Impairments in AOCI	906	(266)	1,937	271
Less: Income tax expense (benefit)	409	(82)	810	166
Total other comprehensive income (loss), net of income tax expense (benefit)	497	(184)	1,127	105
Unrealized Appreciation (Depreciation) of All Other Investments
Unrealized change arising during period	3,600	2,067	8,072	4,570
Less: Reclassification adjustments included in net income	198	2,972	1,475	4,950
Total other comprehensive income (loss), before income tax expense (benefit)	3,402	(905)	6,597	(380)
Less: Income tax expense (benefit)	1,071	1,103	1,980	574
Total other comprehensive income (loss), net of income tax expense (benefit)	2,331	(2,008)	4,617	(954)
Foreign Currency Translation Adjustments
Unrealized change arising during period	258	(529)	(167)	428
Less: Reclassification adjustments included in net income		175		1,681
Total other comprehensive income (loss), before income tax expense (benefit)	258	(704)	(167)	(1,253)
Less: Income tax expense (benefit)	18	(122)	(71)	(442)
Total other comprehensive income (loss), net of income tax expense (benefit)	240	(582)	(96)	(811)
Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities
Unrealized change arising during period	(1)	(2)	(2)	(5)
Less: Reclassification adjustments included in net income	(4)	(16)	(13)	(50)
Total other comprehensive income (loss), before income tax expense (benefit)	3	14	11	45
Less: Income tax expense (benefit)	1	71	(14)	31
Total other comprehensive income (loss), net of income tax expense (benefit)	2	(57)	25	14
Change in Retirement Plan Liabilities Adjustment
Unrealized change arising during period	1	(576)	5	(595)
Less: Reclassification adjustments included in net income	(19)	(30)	(61)	(307)
Total other comprehensive income (loss), before income tax expense (benefit)	20	(546)	66	(288)
Less: Income tax expense (benefit)	(9)	(207)	5	(98)
Total other comprehensive income (loss), net of income tax expense (benefit)	29	(339)	61	(190)
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	4,780	725	9,857	4,663
Less: Reclassification adjustments included in net income	191	3,132	1,413	6,268
Total other comprehensive income (loss), before income tax expense (benefit)	4,589	(2,407)	8,444	(1,605)
Less: Income tax expense (benefit)	1,490	763	2,710	231
Other comprehensive income (loss)	$ 3,099	$ (3,170)	$ 5,734	$ (1,836)

NONCONTROLLING INTERESTS (Details) (USD $)	3 Months Ended		9 Months Ended			1 Months Ended	9 Months Ended
NONCONTROLLING INTERESTS (Details) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Mar. 31, 2012 AIA Special Purpose Vehicle	Sep. 30, 2012 Redeemable Noncontrolling interests	Sep. 30, 2011 Redeemable Noncontrolling interests	Sep. 30, 2012 Redeemable Noncontrolling interests Department of the Treasury.	Sep. 30, 2011 Redeemable Noncontrolling interests Department of the Treasury.	Sep. 30, 2012 Redeemable Noncontrolling interests Other Minority Interests Holder	Sep. 30, 2011 Redeemable Noncontrolling interests Other Minority Interests Holder	Sep. 30, 2012 Non-redeemable Noncontrolling interests	Sep. 30, 2011 Non-redeemable Noncontrolling interests	Sep. 30, 2011 Non-redeemable Noncontrolling interests Federal Reserve Bank of New York (FRBNY)	Sep. 30, 2012 Non-redeemable Noncontrolling interests Other Minority Interests Holder	Sep. 30, 2011 Non-redeemable Noncontrolling interests Other Minority Interests Holder
Noncontrolling interests
Gross proceeds received on sale of AIA						$ 5,600,000,000
A rollforward of non-controlling interests
Balance, beginning of year			855,000,000				8,523,000,000	434,000,000	8,427,000,000		96,000,000	434,000,000	855,000,000	27,920,000,000	26,358,000,000	855,000,000	1,562,000,000
Repurchase of SPV preferred interests in connection with Recapitalization														(26,432,000,000)	(26,432,000,000)
Exchange of consideration for preferred stock in connection with Recapitalization				(20,677,000,000)				20,292,000,000		20,292,000,000
Repayment to Department of the Treasury							(8,635,000,000)	(11,453,000,000)	(8,635,000,000)	(11,453,000,000)
Net contributions (distributions)							59,000,000	(16,000,000)			59,000,000	(16,000,000)	(117,000,000)	(34,000,000)		(117,000,000)	(34,000,000)
Consolidation (deconsolidation)				(123,000,000)			(5,000,000)	(309,000,000)			(5,000,000)	(309,000,000)		(123,000,000)			(123,000,000)
Acquisition of noncontrolling interest				559,000,000										(487,000,000)			(487,000,000)
Comprehensive income (loss):
Net income (loss)	5,000,000	164,000,000	253,000,000	585,000,000			213,000,000	460,000,000	208,000,000	464,000,000	5,000,000	(4,000,000)	40,000,000	125,000,000	74,000,000	40,000,000	51,000,000
Accumulated other comprehensive income (loss), net of tax:
Unrealized gains (losses) on investments							4,000,000				4,000,000		3,000,000	(157,000,000)		3,000,000	(157,000,000)
Foreign currency translation adjustments													(7,000,000)	4,000,000		(7,000,000)	4,000,000
Total accumulated other comprehensive income (loss), net of tax	10,887,000,000		10,887,000,000		5,153,000,000		4,000,000				4,000,000		(4,000,000)	(153,000,000)		(4,000,000)	(153,000,000)
Total comprehensive income (loss) attributable to noncontrolling interests	8,000,000	58,000,000	253,000,000	432,000,000			217,000,000	460,000,000	208,000,000	464,000,000	9,000,000	(4,000,000)	36,000,000	(28,000,000)	74,000,000	36,000,000	(102,000,000)
Other													(26,000,000)	(45,000,000)		(26,000,000)	(45,000,000)
Balance, end of period	$ 748,000,000		$ 748,000,000				$ 159,000,000	$ 9,408,000,000		$ 9,303,000,000	$ 159,000,000	$ 105,000,000	$ 748,000,000	$ 771,000,000		$ 748,000,000	$ 771,000,000

EARNINGS (LOSS) PER SHARE (EPS) (Details) (USD $)	3 Months Ended		9 Months Ended
EARNINGS (LOSS) PER SHARE (EPS) (Details) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Numerator for EPS:
Income (loss) from continuing operations	$ 1,860,000,000	$ (3,605,000,000)	$ 7,640,000,000	$ (2,599,000,000)
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		145,000,000	208,000,000	538,000,000
Other	5,000,000	19,000,000	45,000,000	28,000,000
Total net income (loss) from continuing operations attributable to noncontrolling interests	5,000,000	164,000,000	253,000,000	566,000,000
Net income (loss) attributable to AIG from continuing operations	1,855,000,000	(3,769,000,000)	7,387,000,000	(3,165,000,000)
Income (loss) from discontinued operations	1,000,000	(221,000,000)	9,000,000	2,327,000,000
Net income (loss) from discontinued operations attributable to noncontrolling interests				19,000,000
Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS	1,000,000	(221,000,000)	9,000,000	2,308,000,000
Deemed dividend to AIG Preferred Stock				(812,000,000)
Net income (loss) attributable to AIG common shareholders from continuing operations, applicable to common stock for EPS	1,855,000,000	(3,769,000,000)	7,387,000,000	(3,977,000,000)
Denominator for EPS:
Weighted average shares outstanding - basic	1,642,472,814	1,899,500,628	1,757,955,937	1,765,905,779
Dilutive shares	29,437		28,217
Weighted average shares outstanding - diluted	1,642,502,251	1,899,500,628	1,757,984,154	1,765,905,779
Basic:
Income (loss) from continuing operations (in dollars per share)	$ 1.13	$ (1.99)	$ 4.21	$ (2.25)
Income (loss) from discontinued operations (in dollars per share)		$ (0.11)		$ 1.30
Diluted:
Income (loss) from continuing operations (in dollars per share)	$ 1.13	$ (1.99)	$ 4.21	$ (2.25)
Income (loss) from discontinued operations (in dollars per share)		$ (0.11)		$ 1.30
Number of shares and warrants excluded from diluted shares outstanding because the effect would have been anti-dilutive	78,000,000	79,000,000	78,000,000	75,000,000
Common stock included in consideration transferred to the Department of the Treasury (in shares)	1,092,169,866		1,092,169,866
Redeemable SPV Preferred Interests included in consideration transferred to the Department of the Treasury	20,200,000,000		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	75,000,000	75,000,000	70,000,000
Series C
Diluted:
Exchange of preferred stock for common stock in connection with recapitalization (in shares)	562,868,096		562,868,096
Preferred stock, par value (in dollars per share)	$ 5.00		$ 5.00
Series E
Diluted:
Preferred stock, par value (in dollars per share)	$ 5.00		$ 5.00
Series F
Diluted:
Preferred stock, par value (in dollars per share)	$ 5.00		$ 5.00
Series E and F
Net income from continuing operations attributable to noncontrolling interests:
Deemed dividend to AIG Preferred Stock				$ (812,000,000)

EMPLOYEE BENEFITS (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Pensions
Components of net periodic benefit cost:
Service cost	$ 53	$ 54	$ 155	$ 166
Interest cost	57	63	174	186
Expected return on assets	(65)	(70)	(195)	(209)
Amortization of prior service (credit) cost	(9)	(1)	(28)	(2)
Amortization of net (gain) loss	32	12	97	42
Other		6		6
Net periodic benefit cost	68	64	203	189
Contributed to pension plans			76
Estimates additional contribution to pension plans for the remainder of 2012	15		15
Pensions \| AIG Star and AIG Edison
Components of net periodic benefit cost:
Net periodic benefit cost		2		13
U.S. Pension Plans
Components of net periodic benefit cost:
Service cost	40	40	116	114
Interest cost	49	54	149	158
Expected return on assets	(60)	(64)	(180)	(190)
Amortization of prior service (credit) cost	(8)		(25)	1
Amortization of net (gain) loss	29	9	87	30
Net periodic benefit cost	50	39	147	113
Non U.S. Pension Plans
Components of net periodic benefit cost:
Service cost	13	14	39	52
Interest cost	8	9	25	28
Expected return on assets	(5)	(6)	(15)	(19)
Amortization of prior service (credit) cost	(1)	(1)	(3)	(3)
Amortization of net (gain) loss	3	3	10	12
Other		6		6
Net periodic benefit cost	18	25	56	76
Non U.S. Pension Plans \| AIG Star and AIG Edison
Components of net periodic benefit cost:
Net periodic benefit cost		2		13
Postretirement Plans
Components of net periodic benefit cost:
Service cost	2	4	6	10
Interest cost	4	4	10	12
Amortization of prior service (credit) cost	(3)		(8)	1
Other	(1)		(1)
Net periodic benefit cost	2	8	7	23
Postretirement Plans \| AIG Star and AIG Edison
Components of net periodic benefit cost:
Net periodic benefit cost		1		2
U.S. Postretirement Plans
Components of net periodic benefit cost:
Service cost	1	3	4	7
Interest cost	3	3	8	10
Amortization of prior service (credit) cost	(3)		(8)	1
Net periodic benefit cost	1	6	4	18
Non U.S. Postretirement Plans
Components of net periodic benefit cost:
Service cost	1	1	2	3
Interest cost	1	1	2	2
Other	(1)		(1)
Net periodic benefit cost	1	2	3	5
Non U.S. Postretirement Plans \| AIG Star and AIG Edison
Components of net periodic benefit cost:
Net periodic benefit cost		$ 1		$ 2

INCOME TAXES (Details) (USD $)	3 Months Ended		9 Months Ended
INCOME TAXES (Details) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Income tax expense (benefit):
Effective tax rates on pretax income from continuing operations (as a percent)	28.30%	15.60%	14.40%	31.30%
U.S. federal income tax at statutory rate (as a percent)	35.00%	35.00%	35.00%	35.00%
Deferred tax asset valuation allowance released	$ 177,000,000		$ 1,700,000,000
Deferred tax asset valuation allowance allocated to income from continuing operations			1,600,000,000
Accounting for Uncertainty in Income Taxes
Unrecognized tax benefits, excluding interest and penalties	4,400,000,000		4,400,000,000		4,300,000,000
Unrecognized tax benefits, if recognized would not affect the effective tax rate	200,000,000		200,000,000		700,000,000
Unrecognized tax benefits, if recognized would favorably affect the effective tax rate	4,200,000,000		4,200,000,000		3,600,000,000
Unrecognized tax benefits, interest and penalties accrued	929,000,000		929,000,000		744,000,000
Unrecognized tax benefits, interest net of the federal benefit (expense) and penalties			$ 185,000,000	$ (58,000,000)
Unrecognized tax benefits, period of reasonably possible change in balance			P12M

DISCONTINUED OPERATIONS (Details) (USD $)	3 Months Ended		9 Months Ended		1 Months Ended			3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended
DISCONTINUED OPERATIONS (Details) (USD $)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Feb. 28, 2011 Star/Edison Sale	Sep. 30, 2010 Star/Edison Sale	Jan. 31, 2011 Nan Shan	Sep. 30, 2011 Nan Shan	Sep. 30, 2011 Nan Shan	Sep. 30, 2011 Discontinued operations	Sep. 30, 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			60,000,000	(1,000,000,000)	32,000,000	2,341,000,000
Voting interest (as a percent)							97.57%
Revenues:
Premiums	9,503,000,000	9,829,000,000	28,583,000,000	29,209,000,000						915,000,000	5,012,000,000
Net investment income	4,650,000,000	128,000,000	16,236,000,000	10,161,000,000						423,000,000	1,632,000,000
Net realized capital gains (losses)	647,000,000	607,000,000	794,000,000	(53,000,000)						(120,000,000)	844,000,000
Other income	1,010,000,000	368,000,000	2,119,000,000	2,078,000,000							5,000,000
Total revenues	17,648,000,000	12,719,000,000	53,214,000,000	46,838,000,000						1,218,000,000	7,493,000,000
Benefits, claims and expenses	15,053,000,000	16,989,000,000	44,284,000,000	50,624,000,000						1,228,000,000	6,324,000,000
Interest expense allocation	988,000,000	970,000,000	2,895,000,000	3,055,000,000							2,000,000
Income (loss) from discontinued operations										(10,000,000)	1,167,000,000
Gain (loss) on sales					3,500,000,000			60,000,000	(1,000,000,000)	32,000,000	2,341,000,000
Income (loss) from discontinued operations, before tax expense (benefit)										22,000,000	3,508,000,000
Income tax expense (benefit)										243,000,000	1,181,000,000
Income (loss) from discontinued operations, net of income tax	$ 1,000,000	$ (221,000,000)	$ 9,000,000	$ 2,327,000,000						$ (221,000,000)	$ 2,327,000,000

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details) (USD $)	Sep. 30, 2012	Dec. 31, 2011	Sep. 30, 2011	Dec. 31, 2010
Assets:
Short-term investments	$ 22,557,000,000	$ 22,572,000,000
Other investments	387,558,000,000	387,866,000,000
Total investments	410,115,000,000	410,438,000,000
Cash	1,608,000,000	1,474,000,000	1,542,000,000	1,558,000,000
Debt issuance costs	468,000,000	493,000,000
Other assets, including current and deferred income taxes	138,532,000,000	139,955,000,000
Total assets	550,723,000,000	552,360,000,000
Liabilities:
Insurance liabilities	281,443,000,000	282,516,000,000
Other long-term debt	73,748,000,000	75,253,000,000
Other liabilities, including intercompany balances	92,959,000,000	83,675,000,000
Total liabilities	448,150,000,000	441,444,000,000
Redeemable noncontrolling interests (see Note 11):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		8,427,000,000
Other	159,000,000	96,000,000
Total redeemable noncontrolling interests	159,000,000	8,523,000,000
Total AIG shareholders' equity	101,666,000,000	101,538,000,000
Non-redeemable noncontrolling interests	748,000,000	855,000,000
Total equity	102,414,000,000	102,393,000,000	81,682,000,000	113,239,000,000
Total liabilities and equity	550,723,000,000	552,360,000,000
AIG (As Guarantor)
Assets:
Short-term investments	9,056,000,000	12,868,000,000
Other investments	12,418,000,000	6,599,000,000
Total investments	21,474,000,000	19,467,000,000
Cash	125,000,000	176,000,000	165,000,000	49,000,000
Loans to subsidiaries	38,402,000,000	39,971,000,000
Debt issuance costs	189,000,000	196,000,000
Investment in consolidated subsidiaries	70,499,000,000	80,990,000,000
Other assets, including current and deferred income taxes	25,947,000,000	24,595,000,000
Total assets	156,636,000,000	165,395,000,000
Liabilities:
Other long-term debt	36,626,000,000	35,906,000,000
Other liabilities, including intercompany balances	17,256,000,000	15,635,000,000
Loans from subsidiaries	1,088,000,000	12,316,000,000
Total liabilities	54,970,000,000	63,857,000,000
Redeemable noncontrolling interests (see Note 11):
Total AIG shareholders' equity	101,666,000,000	101,538,000,000
Total equity	101,666,000,000	101,538,000,000
Total liabilities and equity	156,636,000,000	165,395,000,000
Intercompany tax payable	10,000,000,000	9,800,000,000
Intercompany derivative liabilities	875,000,000	901,000,000
SAFG, Inc.
Assets:
Cash		13,000,000
Investment in consolidated subsidiaries	43,235,000,000	32,361,000,000
Other assets, including current and deferred income taxes	257,000,000	2,704,000,000
Total assets	43,492,000,000	35,078,000,000
Liabilities:
Other long-term debt	1,638,000,000	1,638,000,000
Other liabilities, including intercompany balances	837,000,000	2,402,000,000
Loans from subsidiaries	851,000,000	249,000,000
Total liabilities	3,326,000,000	4,289,000,000
Redeemable noncontrolling interests (see Note 11):
Total AIG shareholders' equity	40,166,000,000	30,789,000,000
Total equity	40,166,000,000	30,789,000,000
Total liabilities and equity	43,492,000,000	35,078,000,000
Intercompany tax receivable	205,000,000	128,000,000
Other Subsidiaries
Assets:
Short-term investments	15,611,000,000	14,110,000,000
Other investments	374,641,000,000	481,525,000,000
Total investments	390,252,000,000	495,635,000,000
Cash	1,483,000,000	1,285,000,000
Loans to subsidiaries	(33,862,000,000)	(39,971,000,000)
Debt issuance costs	279,000,000	297,000,000
Investment in consolidated subsidiaries	(31,570,000,000)	(11,463,000,000)
Other assets, including current and deferred income taxes	120,087,000,000	117,231,000,000
Total assets	446,669,000,000	563,014,000,000
Liabilities:
Insurance liabilities	281,731,000,000	282,790,000,000
Other long-term debt	34,982,000,000	138,240,000,000
Other liabilities, including intercompany balances	84,586,000,000	75,132,000,000
Loans from subsidiaries	2,727,000,000	(12,565,000,000)
Total liabilities	404,026,000,000	483,597,000,000
Redeemable noncontrolling interests (see Note 11):
Other	51,000,000	29,000,000
Total redeemable noncontrolling interests	51,000,000	29,000,000
Total AIG shareholders' equity	42,228,000,000	78,996,000,000
Non-redeemable noncontrolling interests	364,000,000	392,000,000
Total equity	42,592,000,000	79,388,000,000
Total liabilities and equity	446,669,000,000	563,014,000,000
Reclassifications and Eliminations
Assets:
Short-term investments	(2,110,000,000)	(4,406,000,000)
Other investments	499,000,000	(100,258,000,000)
Total investments	(1,611,000,000)	(104,664,000,000)
Loans to subsidiaries	(4,540,000,000)
Investment in consolidated subsidiaries	(82,164,000,000)	(101,888,000,000)
Other assets, including current and deferred income taxes	(7,759,000,000)	(4,575,000,000)
Total assets	(96,074,000,000)	(211,127,000,000)
Liabilities:
Insurance liabilities	(288,000,000)	(274,000,000)
Other long-term debt	502,000,000	(100,531,000,000)
Other liabilities, including intercompany balances	(9,720,000,000)	(9,494,000,000)
Loans from subsidiaries	(4,666,000,000)
Total liabilities	(14,172,000,000)	(110,299,000,000)
Redeemable noncontrolling interests (see Note 11):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		8,427,000,000
Other	108,000,000	67,000,000
Total redeemable noncontrolling interests	108,000,000	8,494,000,000
Total AIG shareholders' equity	(82,394,000,000)	(109,785,000,000)
Non-redeemable noncontrolling interests	384,000,000	463,000,000
Total equity	(82,010,000,000)	(109,322,000,000)
Total liabilities and equity	$ (96,074,000,000)	$ (211,127,000,000)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Revenues:
Change in fair value of ML III	$ 330	$ (931)	$ 2,888	$ (854)
Other income	17,318	13,650	50,326	47,692
Total revenues	17,648	12,719	53,214	46,838
Expenses:
Interest expense on FRBNY Credit Facility				70
Other interest expense	988	970	2,895	2,985
Net (gain) loss on extinguishment of debt			32	3,392
Other expenses	14,065	16,019	41,357	44,177
Total benefits, claims and expenses	15,053	16,989	44,284	50,624
Income (loss) from continuing operations before income tax expense (benefit)	2,595	(4,270)	8,930	(3,786)
Income tax expense (benefit)	735	(665)	1,290	(1,187)
Income (loss) from continuing operations	1,860	(3,605)	7,640	(2,599)
Income (loss) from discontinued operations	1	(221)	9	2,327
Net income (loss)	1,861	(3,826)	7,649	(272)
Less: Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		145	208	538
Other	5	19	45	28
Total net income (loss) from continuing operations attributable to noncontrolling interests	5	164	253	566
Income (loss) from discontinued operations attributable to noncontrolling interests				19
Total net income (loss) attributable to noncontrolling interests	5	164	253	585
Net income (loss) attributable to AIG	1,856	(3,990)	7,396	(857)
AIG
Revenues:
Equity in earnings of consolidated subsidiaries	1,811	(2,604)	5,757	3,574
Change in fair value of ML III	330	(484)	2,287	(831)
Other income	373	406	1,074	639
Total revenues	2,514	(2,682)	9,118	3,382
Expenses:
Interest expense on FRBNY Credit Facility				72
Other interest expense	550	712	1,719	2,194
Net (gain) loss on extinguishment of debt			9	3,331
Other expenses	173	230	1,278	502
Total benefits, claims and expenses	723	942	3,006	6,099
Income (loss) from continuing operations before income tax expense (benefit)	1,791	(3,624)	6,112	(2,717)
Income tax expense (benefit)	(65)	161	(1,284)	(926)
Income (loss) from continuing operations	1,856	(3,785)	7,396	(1,791)
Income (loss) from discontinued operations		(205)		934
Net income (loss)	1,856	(3,990)	7,396	(857)
Less: Net income (loss) from continuing operations attributable to noncontrolling interests:
Net income (loss) attributable to AIG	1,856	(3,990)	7,396	(857)
Intercompany income	59	77	191	288
Intercompany expense	4	177	140	552
SAFG, Inc.
Revenues:
Equity in earnings of consolidated subsidiaries	1,612	(383)	1,716	127
Other income		831	49	1,297
Total revenues	1,612	448	1,765	1,424
Expenses:
Other interest expense	70	64	136	223
Total benefits, claims and expenses	70	64	136	223
Income (loss) from continuing operations before income tax expense (benefit)	1,542	384	1,629	1,201
Income tax expense (benefit)	117	(17)	580	(13)
Income (loss) from continuing operations	1,425	401	1,049	1,214
Net income (loss)	1,425	401	1,049	1,214
Less: Net income (loss) from continuing operations attributable to noncontrolling interests:
Net income (loss) attributable to AIG	1,425	401	1,049	1,214
Other Subsidiaries
Revenues:
Change in fair value of ML III		(447)	601	(23)
Other income	17,006	12,667	49,533	46,596
Total revenues	17,006	12,220	50,134	46,573
Expenses:
Other interest expense	428	448	1,368	1,408
Net (gain) loss on extinguishment of debt			23	61
Other expenses	13,892	15,789	40,079	43,675
Total benefits, claims and expenses	14,320	16,237	41,470	45,144
Income (loss) from continuing operations before income tax expense (benefit)	2,686	(4,017)	8,664	1,429
Income tax expense (benefit)	683	(809)	1,994	(248)
Income (loss) from continuing operations	2,003	(3,208)	6,670	1,677
Income (loss) from discontinued operations	1	(16)	9	1,395
Net income (loss)	2,004	(3,224)	6,679	3,072
Less: Net income (loss) from continuing operations attributable to noncontrolling interests:
Other	5	19	45	28
Total net income (loss) from continuing operations attributable to noncontrolling interests	5	19		28
Income (loss) from discontinued operations attributable to noncontrolling interests				19
Total net income (loss) attributable to noncontrolling interests		19	45	47
Net income (loss) attributable to AIG	1,999	(3,243)	6,634	3,025
Reclassifications and Eliminations
Revenues:
Equity in earnings of consolidated subsidiaries	(3,423)	2,987	(7,473)	(3,701)
Other income	(61)	(254)	(330)	(840)
Total revenues	(3,484)	2,733	(7,803)	(4,541)
Expenses:
Interest expense on FRBNY Credit Facility				(2)
Other interest expense	(60)	(254)	(328)	(840)
Total benefits, claims and expenses	(60)	(254)	(328)	(842)
Income (loss) from continuing operations before income tax expense (benefit)	(3,424)	2,987	(7,475)	(3,699)
Income (loss) from continuing operations	(3,424)	2,987	(7,475)	(3,699)
Income (loss) from discontinued operations				(2)
Net income (loss)	(3,424)	2,987	(7,475)	(3,701)
Less: Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		145	208	538
Total net income (loss) from continuing operations attributable to noncontrolling interests		145		538
Total net income (loss) attributable to noncontrolling interests		145	208	538
Net income (loss) attributable to AIG	$ (3,424)	$ 2,842	$ (7,683)	$ (4,239)

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Details 3) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	$ 1,861	$ (3,826)	$ 7,649	$ (272)
Other comprehensive income (loss)	3,099	(3,170)	5,734	(1,836)
Comprehensive income (loss)	4,960	(6,996)	13,383	(2,108)
Total comprehensive income (loss) attributable to noncontrolling interests	8	58	253	432
Comprehensive income (loss) attributable to AIG	4,952	(7,054)	13,130	(2,540)
AIG
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	1,856	(3,990)	7,396	(857)
Other comprehensive income (loss)	3,096	(3,064)	5,734	(1,683)
Comprehensive income (loss)	4,952	(7,054)	13,130	(2,540)
Comprehensive income (loss) attributable to AIG	4,952	(7,054)	13,130	(2,540)
SAFG, Inc.
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	1,425	401	1,049	1,214
Other comprehensive income (loss)	1,995	432	3,754	1,537
Comprehensive income (loss)	3,420	833	4,803	2,751
Comprehensive income (loss) attributable to AIG	3,420	833	4,803	2,751
Other Subsidiaries
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	2,004	(3,224)	6,679	3,072
Other comprehensive income (loss)	3,096	(2,180)	6,791	(1,995)
Comprehensive income (loss)	5,100	(5,404)	13,470	1,077
Total comprehensive income (loss) attributable to noncontrolling interests	8	(87)	45	(106)
Comprehensive income (loss) attributable to AIG	5,092	(5,317)	13,425	1,183
Reclassifications and Eliminations
CONDENSED FINANCIAL STATEMENTS
Net income (loss)	(3,424)	2,987	(7,475)	(3,701)
Other comprehensive income (loss)	(5,088)	1,642	(10,545)	305
Comprehensive income (loss)	(8,512)	4,629	(18,020)	(3,396)
Total comprehensive income (loss) attributable to noncontrolling interests		145	208	538
Comprehensive income (loss) attributable to AIG	$ (8,512)	$ 4,484	$ (18,228)	$ (3,934)

- 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+ 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. 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

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 FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 55

-Paragraph 4K

-URI http://asc.fasb.org/extlink&oid=18733213&loc=SL4591552-111686

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

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Reference 3: 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 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph a

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

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-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph c(1)

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 55

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 810

-SubTopic 10

-Section 50

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-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

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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.