Document and Entity Information (USD $)	12 Months Ended
Document and Entity Information (USD $)	Dec. 31, 2012	Feb. 15, 2013	Jun. 30, 2012
Document and Entity Information
Entity Registrant Name	AMERICAN INTERNATIONAL GROUP INC
Entity Central Index Key	0000005272
Document Type	10-K
Document Period End Date	Dec. 31, 2012
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 21,463,000,000
Entity Common Stock, Shares Outstanding		1,476,322,473
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEET (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2012 - $246,149; 2011 - $250,770)	$ 269,959	$ 263,981
Bond trading securities, at fair value	24,584	24,364
Equity securities:
Common and preferred stock available for sale, at fair value (cost: 2012 - $1,640; 2011 - $1,820)	3,212	3,624
Common and preferred stock trading, at fair value	662	125
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2012 - $134; 2011 - $107)	19,482	19,489
Flight equipment primarily under operating leases, net of accumulated depreciation		35,539
Other invested assets (portion measured at fair value: 2012 - $7,056; 2011 - $20,876)	29,117	40,744
Short-term investments (portion measured at fair value: 2012 - $8,056; 2011 - $5,913)	28,808	22,572
Total investments	375,824	410,438
Cash	1,151	1,474
Accrued investment income	3,054	3,108
Premiums and other receivables, net of allowance	13,989	14,721
Reinsurance assets, net of allowance	25,595	27,211
Deferred income taxes	17,466	19,615
Deferred policy acquisition costs	8,182	8,937
Derivative assets, at fair value	3,671	4,499
Other assets, including restricted cash of $1,878 in 2012 and $2,988 in 2011 (portion measured at fair value: 2012 - $696; 2011 - $0)	10,399	11,663
Separate account assets, at fair value	57,337	51,388
Assets held for sale	31,965
Total assets	548,633	553,054
Liabilities:
Liability for unpaid claims and claims adjustment expense	87,991	91,145
Unearned premiums	22,537	23,465
Future policy benefits for life and accident and health insurance contracts	36,340	34,317
Policyholder contract deposits (portion measured at fair value: 2012 - $1,257; 2011 - $918)	127,117	126,898
Other policyholder funds	6,267	6,691
Derivative liabilities, at fair value	4,061	4,733
Other liabilities (portion measured at fair value: 2012 - $1,080; 2011 - $907)	32,114	28,248
Long-term debt (portion measured at fair value: 2012 - $8,055; 2011 - $10,766)	48,500	75,253
Separate account liabilities	57,337	51,388
Liabilities held for sale	27,366
Total liabilities	449,630	442,138
Contingencies, commitments and guarantees (see Note 16)
Redeemable noncontrolling interests (see Note 18):
Nonvoting, callable, junior preferred interests held by Department of the Treasury		8,427
Other	334	96
Total redeemable noncontrolling interests	334	8,523
AIG shareholders' equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2012 - 1,906,611,680 and 2011 - 1,906,568,099	4,766	4,766
Treasury stock, at cost; 2012 - 430,289,745; 2011 - 9,746,617 shares of common stock	(13,924)	(942)
Additional paid-in capital	80,410	80,459
Retained earnings	14,176	10,774
Accumulated other comprehensive income (loss)	12,574	6,481
Total AIG shareholders' equity	98,002	101,538
Non-redeemable noncontrolling interests (including $100 associated with businesses held for sale)	667	855
Total equity	98,669	102,393
Total liabilities and equity	$ 548,633	$ 553,054

CONSOLIDATED BALANCE SHEET (Parenthetical - assets and liabilities) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Assets:
Bonds available for sale, amortized cost	$ 246,149	$ 250,770
Common and preferred stock available for sale, cost	1,640	1,820
Mortgage and other loans receivable, portion measured at fair value	134	107
Other invested assets, portion measured at fair value	7,056	20,876
Short-term investments, portion measured at fair value	8,056	5,913
Other assets, restricted cash	1,878	2,988
Other assets, portion measured at fair value	696	0
Liabilities:
Policyholder contract deposits, portion measured at fair value	1,257	918
Other liabilities, portion measured at fair value	1,080	907
Long-term debt, portion measured at fair value	$ 8,055	$ 10,766

CONSOLIDATED BALANCE SHEET (Parenthetical - equity) (USD $) In Millions, except Share data, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
AIG shareholders' equity:
Common stock, par value (in dollars per share)	$ 2.50	$ 2.50
Common stock, shares authorized	5,000,000,000	5,000,000,000
Common stock, shares issued	1,906,611,680	1,906,568,099
Treasury stock, shares of common stock	430,289,745	9,746,617
Non-redeemable noncontrolling interests, associated with businesses held for sale (in dollars)	$ 100	$ 100

CONSOLIDATED STATEMENT OF OPERATIONS (USD $) In Millions, except Share data, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Revenues:
Premiums	$ 38,011	$ 38,990	$ 45,319
Policy fees	2,791	2,705	2,710
Net investment income	20,343	14,755	20,934
Net realized capital gains (losses):
Total other-than-temporary impairments on available for sale securities	(448)	(1,216)	(1,712)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (loss)	(381)	168	(812)
Net other-than-temporary impairments on available for sale securities recognized in net income (loss)	(829)	(1,048)	(2,524)
Other realized capital gains	1,758	1,749	1,808
Total net realized capital gains (losses)	929	701	(716)
Other income	3,582	2,661	4,582
Total revenues	65,656	59,812	72,829
Benefits, claims and expenses:
Policyholder benefits and claims incurred	31,977	33,450	41,392
Interest credited to policyholder account balances	4,362	4,467	4,487
Amortization of deferred acquisition costs	5,709	5,486	5,821
Other acquisition and insurance expenses	9,235	8,458	10,163
Interest expense	2,319	2,444	6,742
Net loss on extinguishment of debt	9	2,847	104
Net (gain) loss on sale of properties and divested businesses	2	74	(19,566)
Other expenses	2,721	2,470	3,439
Total benefits, claims and expenses	56,334	59,696	52,582
Income (loss) from continuing operations before income tax expense (benefit)	9,322	116	20,247
Income tax expense (benefit):
Current	795	18	580
Deferred	775	(19,442)	6,413
Income taxes expense (benefit)	1,570	(19,424)	6,993
Income (loss) from continuing operations	7,752	19,540	13,254
Income (loss) from discontinued operations, net of income tax expense (benefit)	(4,052)	1,790	(969)
Net income (loss)	3,700	21,330	12,285
Less: Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests	208	634	1,818
Other	54	54	354
Total net income (loss) from continuing operations attributable to noncontrolling interests	262	688	2,172
Net income (loss) from discontinued operations attributable to noncontrolling interests		20	55
Total net income (loss) attributable to noncontrolling interests	262	708	2,227
Net income (loss) attributable to AIG	3,438	20,622	10,058
Net income (loss) attributable to AIG common shareholders	$ 3,438	$ 19,810	$ 2,046
Basic and diluted:
Income (loss) from continuing operations - basic (in dollars per share)	$ 4.44	$ 10.03	$ 16.50
Income (loss) from discontinued operations - basic (in dollars per share)	$ (2.40)	$ 0.98	$ (1.52)
Income (loss) from continuing operations - diluted (in dollars per share)	$ 4.44	$ 10.03	$ 16.50
Income (loss) from discontinued operations - diluted (in dollars per share)	$ (2.40)	$ 0.98	$ (1.52)
Weighted average shares outstanding:
Basic (in shares)	1,687,197,038	1,799,385,757	136,585,844
Diluted (in shares)	1,687,226,641	1,799,458,497	136,649,280

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS)
Net income (loss)	$ 3,700	$ 21,330	$ 12,285
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	1,286	(74)	1,229
Change in unrealized appreciation (depreciation) of all other investments	4,880	(1,485)	2,293
Change in foreign currency translation adjustments		(992)	(928)
Change in net derivative gains (losses) arising from cash flow hedging activities	17	17	94
Change in retirement plan liabilities adjustment	(87)	(70)	275
Other comprehensive income (loss)	6,096	(2,604)	2,963
Comprehensive income (loss)	9,796	18,726	15,248
Comprehensive income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests	208	634	1,818
Comprehensive income (loss) attributable to other noncontrolling interests	57	(47)	590
Total comprehensive income (loss) attributable to noncontrolling interests	265	587	2,408
Comprehensive income (loss) attributable to AIG	$ 9,531	$ 18,139	$ 12,840

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, 2009

$ 98,076

$ 69,824

$ 69,784

$ 354

$ (874)

$ 5,030

$ (11,491)

$ 7,021

$ 28,252

Increase (Decrease) in Stockholders' Equity

Cumulative effect of change in accounting principle, net of tax

(9,347)

(8,415)

(932)

Series F drawdown

2,199

Common stock issued

(18)

(20)

Equity unit exchange

3,657

3,645

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

^[1]

10,394

10,058

336

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

1,818

Other comprehensive income (loss)

^[2]

2,958

2,782

176

Deferred income taxes

(332)

Net decrease due to deconsolidation

(2,740)

Contributions from noncontrolling interests

253

Distributions to noncontrolling interests

(175)

Other

Balance at Dec. 31, 2010

106,776

78,856

71,983

368

(873)

8,355

(9,848)

8,871

27,920

Increase (Decrease) in Stockholders' Equity

Series F drawdown

20,292

Repurchase of SPV preferred interests in connection with Recapitalization

^[3]

(26,432)

Exchange of consideration for preferred stock in connection with Recapitalization

^[3]

(20,677)

(92,275)

4,138

67,460

Common stock issued

2,886

250

2,636

Purchase of common stock

(70)

Settlement of equity unit stock purchase contract

2,169

2,160

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

^[1]

20,704

20,622

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

Other comprehensive income (loss)

^[2]

(2,602)

(2,483)

(119)

Deferred income taxes

Acquisition of noncontrolling interest

(560)

(71)

(164)

(489)

Net decrease due to deconsolidation

(123)

Contributions from noncontrolling interests

120

Distributions to noncontrolling interests

(128)

Other

(38)

(50)

Balance at Dec. 31, 2011

102,393

101,538

4,766

(942)

80,459

10,774

6,481

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]

3,478

3,438

Other comprehensive income (loss)

^[2]

6,092

6,093

(1)

Deferred income taxes

(9)

Net decrease due to deconsolidation

(27)

Contributions from noncontrolling interests

Distributions to noncontrolling interests

(167)

Other

(174)

(61)

(25)

(36)

(113)

Balance at Dec. 31, 2012

$ 98,669

$ 98,002

$ 4,766

$ (13,924)

$ 80,410

$ 14,176

$ 12,574

$ 667

[1]	Excludes gains of $222 million, $552 million and $73 million in 2012, 2011 and 2010, respectively, attributable to redeemable noncontrolling interests and net income attributable to noncontrolling nonvoting, callable, junior and senior preferred interests held by the Federal Reserve Bank of New York of $0, $74 million and $1.8 billion in 2012, 2011 and 2010, respectively.
[2]	Excludes $4 million, $(2) million and $5 million attributable to redeemable noncontrolling interests for the year ended December 31, 2012, 2011 and 2010, respectively.
[3]	See Notes 18 and 25 to Consolidated Financial Statements.

CONSOLIDATED STATEMENT OF EQUITY (Parenthetical) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
CONSOLIDATED STATEMENT OF EQUITY
Net gains (losses) attributable to redeemable noncontrolling interests	$ 222	$ 552	$ 73
Net income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests held by the Federal Reserve Bank of New York	0	74	1,800
Gains (losses) of redeemable noncontrolling interests	$ 4	$ (2)	$ 5

CONSOLIDATED STATEMENT OF CASH FLOWS (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income (loss)	$ 3,700	$ 21,330	$ 12,285
(Income) loss from discontiued operations	4,052	(1,790)	969
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gains) losses on sales of securities available for sale and other assets	(3,219)	(1,772)	(2,903)
Net (gains) losses on sales of divested businesses	2	74	(19,566)
Net loss on extinguishment of debt	9	2,847	104
Unrealized (gains) losses in earnings - net	(6,107)	(957)	(1,529)
Equity in (income) loss from equity method investments, net of dividends or distributions	(911)	(637)	(1,268)
Depreciation and other amortization	5,307	5,424	5,977
Amortization of costs and accrued interest and fees related to FRBNY Credit Facility		48	4,223
Impairments of assets	1,524	1,798	3,759
Changes in operating assets and liabilities:
General and life insurance reserves	(2,260)	(202)	8,705
Premiums and other receivables and payables - net	1,736	1,771	482
Reinsurance assets and funds held under reinsurance treaties	1,407	(1,103)	(3,510)
Capitalization of deferred policy acquisition costs	(5,613)	(5,429)	(5,933)
Current and deferred income taxes - net	1,122	(20,061)	6,052
Payment of FRBNY Credit Facility accrued compounded interest and fees		(6,363)
Other, net	(1)	(1,234)	(1,686)
Total adjustments	(7,004)	(25,796)	(7,093)
Net cash provided by (used in) operating activities - continuing operations	748	(6,256)	6,161
Net cash provided by (used in) operating activities - discontinued operations	2,928	6,175	10,436
Net cash provided by (used in) operating activities	3,676	(81)	16,597
Sales or distribution of:
Available for sale investments	39,818	43,961	56,211
Trading securities	17,814	9,867	6,363
Other invested assets	18,552	7,655	8,424
Divested businesses, net		587	21,760
Maturities of fixed maturity securities available for sale	21,449	20,062	14,609
Principal payments received on and sales of mortgage and other loans receivable	3,266	3,154	5,259
Purchases of:
Available for sale investments	(53,536)	(90,627)	(78,886)
Trading securities	(13,373)	(1,253)	(3,380)
Other invested assets	(4,463)	(6,023)	(7,579)
Mortgage and other loans receivable issued and purchased	(3,256)	(2,587)	(2,990)
Net change in restricted cash	695	27,202	(27,026)
Net change in short-term investments	(8,158)	18,799	(2,446)
Other, net	(526)	180	(167)
Net cash provided by (used in) investing activities - continuing operations	18,282	30,977	(9,848)
Net cash provided by (used in) investing activities - discontinued operations	(1,670)	5,471	(64)
Net cash provided by (used in) investing activities	16,612	36,448	(9,912)
Proceeds from (payments for)
Policyholder contract deposits	13,288	17,903	19,570
Policyholder contract withdrawals	(13,978)	(13,570)	(14,897)
FRBNY credit facility repayments		(14,622)	(23,178)
FRBNY credit facility borrowings			19,900
Issuance of long-term debt	4,844	3,190	3,342
Repayments of long-term debt	(7,276)	(9,486)	(7,986)
Proceeds from drawdown on the Department of the Treasury Commitment		20,292	2,199
Repayment of Department of the Treasury SPV Preferred Interests	(8,636)	(12,425)
Repayment of FRBNY SPV Preferred Interests		(26,432)
Issuance of Common Stock		5,055
Purchase of Common Stock	(13,000)	(70)
Acquisition of noncontrolling interest	(167)	(688)
Other, net	4,493	(277)	(5,967)
Net cash provided by (used in) financing activities - continuing operations	(20,432)	(31,130)	(7,017)
Net cash provided by (used in) financing activities - discontinued operations	(132)	(5,796)	(2,244)
Net cash provided by (used in) financing activities	(20,564)	(36,926)	(9,261)
Effect of exchange rate changes on cash	16	29	39
Net increase (decrease) in cash	(260)	(530)	(2,537)
Cash at beginning of period	1,474	1,558	4,400
Reclassification to assets held for sale	(63)	446	(305)
Cash at end of period	$ 1,151	$ 1,474	$ 1,558

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

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Cash paid during the period for:

Interest

$ 4,037

^[1]

$ 8,985

^[1]

$ 5,166

^[1]

Taxes

447

716

1,002

Non-cash financing/investing activities:

Interest credited to policyholder contract deposits included in financing activities

4,501

4,750

9,294

Exchange of equity units and extinguishment of junior subordinated debentures

3,657

Exchange of junior subordinated debentures for senior notes

(2,392)

Senior notes exchanged for junior subordinated debentures

1,843

Non-cash consideration received from sale of ALICO

9,041

Debt assumed on consolidation of variable interest entities

2,591

Debt assumed on acquisition

$ 299

$ 164

[1]	2011 includes payment of FRBNY credit facility accrued compounded interest of $4.7 billion, before the facility was terminated on January 14, 2011 in connection with the Recapitalization.

BASIS OF PRESENTATION	12 Months Ended
BASIS OF PRESENTATION	Dec. 31, 2012
BASIS OF PRESENTATION
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION American International Group, Inc. 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. Unless the context indicates otherwise, the terms "AIG," "we," "us" or "our" mean American International Group, Inc. and its consolidated subsidiaries and the term "AIG Parent" means American International Group, Inc. and not to any of its consolidated subsidiaries. The consolidated financial statements include the accounts of AIG, our controlled subsidiaries (generally through a greater than 50 percent ownership of voting rights of a voting interest entity), and variable interest entities (VIEs) in which we are the primary beneficiary. Equity investments in corporate entities that we do not consolidate, but in which we hold 20 percent to 50 percent of the voting rights and investments in partnership and partnership-like entities for which we have more than minor influence over operating and financial policies, are accounted for under the equity method unless we have elected the fair value option. Certain of our foreign subsidiaries included in the consolidated financial statements report on different annual fiscal period bases, in most cases ending November 30. The effect on our consolidated financial condition and results of operations of all material events occurring at these subsidiaries between such fiscal year end and December 31 for all periods presented has been recorded. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (GAAP). All material intercompany accounts and transactions have been eliminated. 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. We consider the 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: • classification of International Lease Finance Corporation (ILFC) as held for sale; • insurance liabilities, including property and casualty and mortgage guaranty unpaid claims and claims adjustment expenses and future policy benefits for life and accident and health contracts; • income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset; • recoverability of assets including reinsurance assets; • 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, our consolidated financial condition, results of operations and cash flows could be materially affected. Prior Period Reclassifications and Segment Changes Prior period amounts were reclassified to conform to the current period presentation. Significant items include: • Segment changes discussed in Note 3 herein. • Revisions attributable to discontinued operations presented in Note 4 herein. • Reclassified approximately $1.3 billion of income taxes from Accumulated other comprehensive income to Additional paid in capital as of January 1, 2010 to correct the presentation of components of Shareholders' Equity. These income taxes related to the creation in 2009 of special purpose vehicles that held our interests in AIA Group Ltd. (AIA) and American Life Insurance Company (ALICO). There was no effect on Total AIG shareholders' equity or on Total equity as a result of this reclassification. • Changes were made to the presentation within the Consolidated Statement of Operations to align the presentation of changes in the fair value of derivatives with changes in the administration of AIG's derivatives portfolio. 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).

- Definition

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

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 915

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-Section 50

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-Publisher FASB

-Name Accounting Standards Codification

-Topic 272

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-Section 50

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-Publisher AICPA

-Name Statement of Position (SOP)

-Number 94-6

-Paragraph 10

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-Publisher FASB

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-Topic 275

-SubTopic 10

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+ Details

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Revenues and expenses:

Premiums: Premiums for short duration contracts are recorded as written on the inception date of the policy. Premiums are earned primarily on a pro rata basis over the term of the related coverage. Sales of extended services contracts are reflected as premiums and earned on a pro rata basis over the term of the related coverage. The reserve for unearned premiums includes the portion of premiums written relating to the unexpired terms of coverage. Reinsurance premiums under a reinsurance contract are typically earned over the same period as the underlying policies, or risks, covered by the contracts. As a result, the earning pattern of a reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies throughout a year.

Reinsurance premiums ceded are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate.

Premiums for long duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued.

Policy fees: Policy fees represent fees recognized from universal life and investment-type products consisting of policy charges for the cost of insurance, policy administration charges, amortization of unearned revenue reserves and surrender charges.

Net investment income: For a discussion of our policies on net investment income, see Note 7 herein.

Net realized capital gains (losses): For a discussion of our policies on net realized capital gains (losses), see Note 7 herein.

Other income: Other income includes unrealized gains and losses on derivatives, including unrealized market valuation gains and losses associated with the Global Capital Markets (GCM) super senior credit default swap (CDS) portfolio, as well as income from the Direct Investment book (DIB).

Other income from the operations of the DIB and our Other Operations category consists of the following:

•: Change in fair value relating to financial assets and liabilities for which the fair value option has been elected.
•: Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable.
•: Dividend income from common and preferred stock and distributions from other investments.
•: Changes in the fair value of trading securities and spot commodities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agreements to resell, and securities sold under agreements to repurchase for which the fair value option was elected.
•: Realized capital gains and losses from the sales of available for sale securities and investments in private equity funds and hedge funds and other investments.
•: Income earned on real estate based investments and related losses from property level impairments and financing costs.

•: Exchange gains and losses resulting from foreign currency transactions.
•: Reductions to the cost basis of securities available for sale for other-than-temporary impairments.
•: Earnings from private equity funds and hedge fund investments accounted for under the equity method.
•: Gains and losses recognized in earnings on derivatives for the effective portion and their related hedged items.

Policyholder benefits and claims incurred: Incurred claims and claims adjustment expense for short duration insurance contracts consist of the estimated ultimate cost of settling claims incurred within the reporting period, including incurred but not reported claims, plus changes in estimates of current and prior period losses resulting from the continuous review process, which are charged to income as incurred. Benefits for long duration insurance contracts consist of benefits paid and changes in future policy benefits liabilities. Benefits for universal life and investment-type products primarily consist of benefit payments made in excess of policy account balances except for certain contracts for which the fair value option was elected, for which benefits represent the entire change in fair value (including derivative gains and losses on related economic hedges).

Interest credited to policyholder account balances: Represents interest on account-value-based policyholder deposits consisting of amounts credited on non-equity-indexed account values, accretion to the host contract for equity indexed products, and net amortization of sales inducements.

Amortization of deferred acquisition costs: For a discussion of our accounting policies on amortization of deferred policy acquisition costs, see Note 10 herein.

(b) Held-for-sale and discontinued operations: For a discussion of our accounting policies on reporting a business as held for sale or as discontinued operations, see Note 4 herein.

(c) Investments:

Fixed maturity and equity securities: For a discussion of our accounting policies on classification, measurement and other-than-temporary impairment of fixed maturity and equity securities, see Note 7 herein.

Mortgage and other loans receivable – net: For discussion of our policies on classification, measurement and the allowance for credit losses on mortgages and other loans receivable, see Note 8 herein.

Other invested assets: For a discussion of our accounting policies on classification, measurement and other-than-temporary impairment of other invested assets, see Note 7 herein.

Short-term investments: Short-term investments consist of interest-bearing cash equivalents, time deposits, securities purchased under agreements to resell, and investments, such as commercial paper, with original maturities within one year from the date of purchase.

For a discussion of our accounting policies on securities purchased under agreements to resell, see Note 7 herein.

(d) Cash: Cash represents cash on hand and non-interest bearing demand deposits.

(e) Premiums and other receivables – net: Premiums and other receivables includes premium balances receivable, amounts due from agents and brokers and insureds, trade receivables for the DIB and GCM and other receivables. Trade receivables for GCM include cash collateral posted to derivative counterparties that are not eligible to be netted against derivative liabilities. The allowance for doubtful accounts on premiums and other receivables was $619 million and $484 million at December 31, 2012 and 2011, respectively.

(f) Reinsurance assets – net: For a discussion about our accounting policies on reinsurance assets – net, see Note 9 herein.

(g) Deferred policy acquisition costs (DAC): For discussion of our accounting policies on deferred policy acquisition costs, see Note 10 herein.

(h) Derivative assets and derivative liabilities, at fair value: For discussion of our accounting policies on derivative assets and derivative liabilities, at fair value, see Note 12 herein.

(i) Other assets: Other assets consists of sales inducement assets, prepaid expenses, deposits, other deferred charges, real estate, other fixed assets, capitalized software costs, goodwill, intangible assets other than goodwill, and restricted cash.

We offer sales inducements, which include enhanced crediting rates or bonus payments to contract holders (bonus interest) on certain annuity and investment contract products. Sales inducements provided to the contractholder are recognized as part of the liability for policyholders' contract deposits in the Consolidated Balance Sheet. Such amounts are deferred and amortized over the life of the contract using the same methodology and assumptions used to amortize DAC (see Note 10 herein). To qualify for such accounting treatment, the bonus interest must be explicitly identified in the contract at inception. We must also demonstrate that such amounts are incremental to amounts we credit on similar contracts without bonus interest, and are higher than the contract's expected ongoing crediting rates for periods after the bonus period. The deferred bonus interest and other deferred sales inducement assets totaled $517 million and $803 million at December 31, 2012 and 2011, respectively. The amortization expense associated with these assets is reported within Interest Credited to Policyholder Account Balances in the Consolidated Statement of Operations. Such amortization expense totaled $162 million, $239 million and $146 million for the years ended December 31, 2012, 2011 and 2010, respectively.

The cost of buildings and furniture and equipment is depreciated principally on a straight-line basis over their estimated useful lives (maximum of 40 years for buildings and 10 years for furniture and equipment). Expenditures for maintenance and repairs are charged to income as incurred; expenditures for improvements are capitalized and depreciated. We periodically assess the carrying value of our real estate for purposes of determining any asset impairment. Capitalized software costs, which represent costs directly related to obtaining, developing or upgrading internal use software, are capitalized and amortized using the straight-line method over a period generally not exceeding five years. Real estate, fixed assets and other long-lived assets are assessed for impairment when impairment indicators exist.

(j) Goodwill: Goodwill represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. Goodwill is tested for impairment annually, or more frequently if circumstances indicate an impairment may have occurred. All of our goodwill was associated with and allocated to the AIG Property Casualty Commercial and Consumer segments at December 31, 2012.

The impairment assessment involves first assessing qualitative factors to determine whether events or circumstances exist that lead to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of the events or circumstances, we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, the impairment assessment involves a two-step process in which a quantitative assessment for potential impairment is performed. If potential impairment is present, the amount of impairment is measured (if any) and recorded. Impairment is tested at the reporting unit level.

If we determine it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we estimate the fair value of each reporting unit and compare the estimated fair value with the carrying amount of the reporting unit, including allocated goodwill. The estimate of a reporting unit's fair value may be based on one or a combination of approaches including market-based earnings multiples of the unit's peer companies, discounted expected future cash flows, external appraisals or, in the case of reporting units being considered for sale, third-party indications of fair value, if available. We consider one or more of these estimates when determining the fair value of a reporting unit to be used in the impairment test.

If the estimated fair value of a reporting unit exceeds its carrying value, goodwill is not impaired. If the carrying value of a reporting unit exceeds its estimated fair value, goodwill associated with that reporting unit potentially is impaired. The amount of impairment, if any, is measured as the excess of the carrying value of the goodwill over the implied fair value of the goodwill. The implied fair value of the goodwill is measured as the excess of the fair value of the reporting unit over the amounts that would be assigned to the reporting unit's assets and liabilities in a hypothetical business combination. An impairment charge is recognized in earnings to the extent of the excess. AIG Property Casualty manages its assets on an aggregate basis and does not allocate its assets, other than goodwill, between its operating segments. Therefore, the carrying value of the reporting units was determined by allocating the carrying value of AIG Property Casualty to those units based upon an internal capital allocation model.

In connection with the announcement of the ILFC sale, discussed in Note 4, and management's determination that the reporting unit met the held-for-sale criteria, management tested the remaining goodwill of the reporting unit for impairment. Based on the results of the goodwill impairment test, we determined that all of the goodwill allocated to the reporting unit should be impaired and, accordingly, recognized a goodwill impairment charge in the fourth quarter of 2012.

At December 31, 2012, we performed our annual goodwill impairment test. Based on the results of the goodwill impairment test, we concluded that the remaining goodwill was not impaired.

The following table presents the changes in goodwill by reportable segment:

(in millions)	AIG Property Casualty			Aircraft Leasing			Other			Total



Balance at December 31, 2010:
Goodwill – gross	$	2,529		$	–		$	2,281		$	4,810
Accumulated impairments		(1,196	)		–			(2,281	)		(3,477	)

Net goodwill		1,333			–			–			1,333

Increase (decrease) due to:
Acquisition		3			15			8			26
Other^(a)		14			–			–			14

Balance at December 31, 2011:
Goodwill – gross	$	2,546		$	15		$	2,289		$	4,850
Accumulated impairments		(1,196	)		–			(2,281	)		(3,477	)

Net goodwill	$	1,350		$	15		$	8		$	1,373

Increase (decrease) due to:
Acquisition		119			–			–			119
Other^(a)		–			–			–			–
Goodwill impairment included in discontinued operations		–			(15	)		(8	)		(23	)

Balance at December 31, 2012:
Goodwill – gross	$	2,665		$	–		$	2,281		$	4,946
Accumulated impairments		(1,196	)		–			(2,281	)		(3,477	)

Net goodwill	$	1,469		$	–		$	–		$	1,469

(a) Includes foreign exchange translation and purchase price adjustments.

(k) Separate accounts: Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. Each account has specific investment objectives and the assets are carried at fair value. The assets of each account are legally segregated and are not subject to claims that arise from any of our other businesses. The liabilities for these accounts are equal to the account assets.

(l) Liability for unpaid claims and claims adjustment expense: For discussion of our accounting policies on liability for unpaid claims and claims adjustment expense, see Note 13 herein.

(m) Future policy benefits for life and accident and health insurance contracts and policyholder contract deposits: For discussion of our accounting policies on future policy benefits and life and accident and health insurance contracts and policyholder contract deposits, see Note 13 herein. See Note 6 herein for additional fair value information.

(n) Other policyholder funds: Other policyholder funds are reported at cost and include any policyholder funds on deposit that encompass premium deposits and similar items.

(o) Income taxes: For a discussion of our accounting policies on income taxes, see Note 24 herein.

(p) Other liabilities: Other liabilities consist of other funds on deposit, other payables, securities sold under agreements to repurchase and securities and spot commodities sold but not yet purchased. We have entered into certain insurance and reinsurance contracts, primarily in our AIG Property Casualty segment, that do not contain sufficient insurance risk to be accounted for as insurance or reinsurance. Accordingly, the premiums received on such contracts, after deduction for certain related expenses, are recorded as deposits within Other liabilities in the Consolidated Balance Sheet. Net proceeds of these deposits are invested and generate Net investment income. As amounts are paid, consistent with the underlying contracts, the deposit liability is reduced. Also included in Other liabilities are trade payables for the DIB and GCM, which include option premiums received and payables to counterparties that relate to unrealized gains and losses on futures, forwards, and options and balances due to clearing brokers and exchanges. Trade payables for GCM also include cash collateral received from derivative counterparties that is not contractually nettable against derivative assets.

Securities and spot commodities sold but not yet purchased represent sales of securities and spot commodities not owned at the time of sale. The obligations arising from such transactions are recorded on a trade-date basis and carried at fair value. Fair values of securities sold but not yet purchased are based on current market prices. Fair values of spot commodities sold but not yet purchased are based on current market prices of reference spot futures contracts traded on exchanges.

For further discussion of secured financing arrangements, see Note 7 herein.

(q) Long-term debt: For a discussion of our accounting policies on long-term debt, see Note 15 herein.

(r) Contingent liabilities: For a discussion of our accounting policies on contingent liabilities, see Note 16 herein.

(s) Foreign currency: Financial statement accounts expressed in foreign currencies are translated into U.S. dollars. Functional currency assets and liabilities are translated into U.S. dollars generally using rates of exchange prevailing at the balance sheet date of each respective subsidiary and the related translation adjustments are recorded as a separate component of Accumulated other comprehensive income (loss), net of any related taxes, in Total AIG shareholders' equity. Functional currencies are generally the currencies of the local operating environment. Financial statement accounts expressed in currencies other than the functional currency of a consolidated entity are translated into that entity's functional currency. Income statement accounts expressed in functional currencies are translated using average exchange rates during the period. The adjustments resulting from translation of financial statements of foreign entities operating in highly inflationary economies are recorded in income. Exchange gains and losses resulting from foreign currency transactions are recorded in income.

(t) Noncontrolling interests: For discussion of our accounting policies on noncontrolling interests, see Note 18 herein.

(u) Earnings (loss) per share: For a discussion of our accounting policies on earnings (loss) per share, see Note 19 herein

Future Application of Accounting Standards

Testing Indefinite-Lived Intangible Assets for Impairment

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. While early adoption was permitted, we adopted the standard on its required effective date of January 1, 2013. We do not expect adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

Disclosures about Offsetting Assets and Liabilities

In February 2013 the FASB issued guidance that clarifies the scope of transactions subject to disclosures about offsetting assets and liabilities. The guidance applies to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are offset either in accordance with specific criteria contained in FASB Accounting Standards Codification or subject to a master netting arrangement or similar agreement.

The standard is effective for fiscal years and interim periods beginning on or after January 1, 2013, and will be applied retrospectively to all comparative periods presented. We do not expect adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

Presentation of Comprehensive Income

In February 2013 the FASB issued guidance on the presentation requirements for items reclassified out of accumulated other comprehensive income. We will be required to disclose the effect of significant items reclassified out of accumulated other comprehensive income on the respective line items of net income or provide a cross-reference to other disclosures currently required under U.S. GAAP for relevant items.

The standard is effective for annual and interim reporting periods beginning after December 15, 2012. We do not expect adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

Accounting Standards Adopted During 2012

We 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. We adopted the standard retrospectively on January 1, 2012.

Deferred policy acquisition costs represent those costs that are incremental and directly related to the successful acquisition of new or renewal insurance contracts. We defer 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. We partially defer costs, including certain commissions, when we do not believe the entire cost is directly related to the acquisition or renewal of insurance contracts.

We also defer 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 those that resulted in successful policy acquisition or renewal 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 DAC.

The method we use to amortize DAC 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, we revised our historical financial statements and accompanying notes to the consolidated financial statements for the changes in DAC 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 table presents amounts previously reported as of December 31, 2011, to reflect the effect of the change due to the retrospective adoption of the standard, and the adjusted amounts that are reflected in our Consolidated Balance Sheet.

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



Balance Sheet:
Deferred income taxes	$	17,897	$	1,718		$	19,615
Deferred policy acquisition costs		14,026		(5,089	)		8,937
Other assets		11,705		(42	)		11,663

Total assets		556,467		(3,413	)		553,054

Retained earnings		14,332		(3,558	)		10,774
Accumulated other comprehensive income		6,336		145			6,481

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

The following tables present amounts previously reported for the years ended December 31, 2011 and 2010 to reflect the effect of the change due to the retrospective adoption of the standard, and the adjusted amounts that are reflected in our Consolidated Statement of Operations and Consolidated Statement of Cash Flows.

Year Ended December 31, 2011 (dollars in millions, except per share data)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital gains	$	681		$	20		$	701

Total revenues		59,792			20			59,812

Interest credited to policyholder account balances		4,446			21			4,467
Amortization of deferred acquisition costs		8,019			(2,533	)		5,486
Other acquisition and other insurance expenses		6,091			2,367			8,458
Net (gain) loss on sale of properties and divested businesses		74			–			74

Total benefits, claims and expenses		59,840			(144	)		59,696

Income (loss) from continuing operations before income tax benefit		(48	)		164			116

Income tax benefit^(b)		(17,696	)		(1,728	)		(19,424	)

Income from continuing operations		17,648			1,892			19,540
Income from discontinued operations, net of income tax expense^(c)		858			932			1,790

Net income		18,506			2,824			21,330

Net income attributable to AIG		17,798			2,824			20,622

Net income attributable to AIG common shareholders		16,986			2,824			19,810

Income per share attributable to AIG common shareholders:
Basic and diluted
Income from continuing operations	$	8.98		$	1.05		$	10.03
Income from discontinued operations	$	0.46		$	0.52		$	0.98

(a) Includes $140 million in Total net realized capital gains attributable to the effect of the reclassification of certain derivative activity discussed in Note 1 herein. Also includes the effect of the reclassification of ILFC as discontinued operations.

(b) Includes an adjustment to the deferred tax valuation allowance of $1.8 billion in the fourth quarter of 2011.

Year Ended December 31, 2010 (dollars in millions, except per share data)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital losses	$	(727	)	$	11		$	(716	)

Total revenues		72,818			11			72,829

Interest credited to policyholder account balances		4,480			7			4,487
Amortization of deferred acquisition costs		9,134			(3,313	)		5,821
Other acquisition and other insurance expenses		6,775			3,388			10,163
Net (gain) loss on sale of properties and divested businesses^(b)		(17,767	)		(1,799	)		(19,566	)

Total benefits, claims and expenses		54,301			(1,719	)		52,582

Income from continuing operations before income tax expense		18,517			1,730			20,247

Income tax expense^(c)		6,116			877			6,993

Income from continuing operations		12,401			853			13,254
Income (loss) from discontinued operations, net of income tax expense^(d)		(2,388	)		1,419			(969	)

Net income		10,013			2,272			12,285

Net income attributable to AIG		7,786			2,272			10,058

Net income attributable to AIG common shareholders		1,583			463			2,046

Income (loss) per share attributable to AIG common shareholders:
Basic and diluted
Income from continuing operations	$	15.23		$	1.27		$	16.50
Loss from discontinued operations	$	(3.63)		$	2.11		$	(1.52)

(a) Includes $783 million in Total net realized capital gains attributable to the effect of the reclassification of certain derivative activity discussed in Note 1 herein. Also includes the effect of the reclassification of ILFC as discontinued operations.

(b) Represents the effect on the gain on sale of AIA ordinary shares, which were sold in the fourth quarter of 2010.

(d) Includes an adjustment to the after-tax gain on the sale of ALICO of $1.6 billion in the fourth quarter of 2010.

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.

Year Ended December 31, 2011 (in millions)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net income	$	18,506		$	2,824		$	21,330
(Income) loss from discontinued operations		(858	)		(932	)		(1,790	)

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings – net		(937	)		(20	)		(957	)
Depreciation and other amortization		7,935			(2,511	)		5,424
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(7,796	)		2,367			(5,429	)
Current and deferred income taxes – net		(18,333	)		(1,728	)		(20,061	)
Total adjustments		(23,904	)		(1,892	)		(25,796	)

Year Ended December 31, 2010 (in millions)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net income	$	10,013		$	2,272		$	12,285
(Income) loss from discontinued operations		2,388			(1,419	)		969

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gains) losses on sales of divested businesses		(17,767	)		(1,799	)		(19,566	)
Unrealized gains in earnings – net		(1,509	)		(20	)		(1,529	)
Depreciation and other amortization		8,488			(2,511	)		5,977
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(8,300	)		2,367			(5,933	)
Current and deferred income taxes – net		7,780			(1,728	)		6,052
Total adjustments	$	(5,201	)	$	(1,892	)	$	(7,093	)

(a) Includes the effect of the reclassification of ILFC as discontinued operations.

For short-duration insurance contracts, starting in 2012, we elected to include anticipated investment income in our determination of whether the deferred policy acquisition costs are recoverable. We believe 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 premiums are collected and in turn invested and when losses and related expenses are paid. This is considered a change in accounting principle that required retrospective application to all periods presented. Because we historically have not recorded any premium deficiency on our 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 the 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 was required to be applied prospectively to transactions or modifications of existing transactions that occur on or after January 1, 2012. There are no repurchase agreements that continue to be accounted for as sales as of December 31, 2012.

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 our consolidated financial condition, results of operations or cash flows. See Note 6 for additional information related to fair value measurements.

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 our 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 our consolidated financial condition, results of operations or cash flows.

Accounting Standards Adopted During 2011

In January 2010, the FASB issued an accounting standard that requires fair value disclosures about significant transfers between Level 1 and 2 measurement categories and separate presentation of purchases, sales, issuances, and settlements within the rollforward of Level 3 activity. Also, this fair value guidance clarifies the disclosure requirements about the level of disaggregation and valuation techniques and inputs. This guidance became effective for us beginning on January 1, 2010, except for the disclosures about purchases, sales, issuances, and settlements within the rollforward of Level 3 activity, which became effective for us beginning on January 1, 2011. See Note 6 for additional information related to fair value measurements.

In April 2010, the FASB issued an accounting standard that clarifies that an insurance company should not combine any investments held in separate account interests with its interest in the same investment held in its general account when assessing the investment for consolidation. Separate accounts represent funds for which investment income and investment gains and losses accrue directly to the policyholders who bear the investment risk. The standard also provides guidance on how an insurer should consolidate an investment fund when the insurer concludes that consolidation of an investment is required and the insurer's interest is through its general account in addition to any separate accounts.

In April 2011, the FASB issued an accounting standard that amends the guidance for a creditor's evaluation of whether a restructuring is a troubled debt restructuring and requires additional disclosures about a creditor's troubled debt restructuring activities. The standard clarifies the two criteria used to determine whether a modification or restructuring is a troubled debt restructuring: (i) whether the creditor has granted a concession and (ii) whether the debtor is experiencing financial difficulties.

The adoption of these standards did not have a material effect on our consolidated financial condition, results of operations or cash flows.

Accounting Standards Adopted During 2010

In June 2009, the FASB issued an accounting standard addressing transfers of financial assets that removes the concept of a qualifying special-purpose entity (QSPE) from the FASB Accounting Standards Codification and removes the exception that exempted transferors from applying the consolidation rules to QSPEs.

In March 2010, the FASB issued an accounting standard that amends the accounting for embedded credit derivative features in structured securities that redistribute credit risk in the form of subordination of one financial instrument to another. The standard clarifies how to determine whether embedded credit derivative features, including those in collateralized debt obligations (CDOs), credit-linked notes (CLNs), synthetic CDOs and CLNs and other synthetic securities (e.g., commercial and residential mortgage-backed securities issued by securitization entities that wrote credit derivatives), are considered to be embedded derivatives that should be analyzed for potential bifurcation and separate accounting or, alternatively, for fair value accounting in connection with the application of the fair value option to the entire hybrid instrument.

The adoption of these standards did not have a material effect on our 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

12 Months Ended

Dec. 31, 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.

We report the results of our operations through two reportable segments: AIG Property Casualty and AIG Life and Retirement. We evaluate performance based on pre-tax income (loss), excluding results from discontinued operations, because we believe this provides more meaningful information on how our operations are performing. Prior to the fourth quarter of 2012, we also presented Aircraft Leasing as a reportable segment, which included the results of ILFC. As a result of the proposed transaction discussed in Note 4, Aircraft Leasing is no longer presented as a reportable segment and the operations of ILFC are presented as discontinued operations in all periods, and associated assets and liabilities have been classified as held-for-sale at December 31, 2012.

AIG Property Casualty – The AIG Property Casualty segment is presented as two operating segments – Commercial Insurance and Consumer Insurance in addition to an AIG Property Casualty Other category.

Our property and casualty operations are conducted through multiple-line companies writing substantially all commercial and consumer lines both domestically and abroad. AIG Property Casualty offers its products through a diverse, multi-channel distribution network that includes agents, wholesalers, global and local brokers, and direct-to-consumer platforms. Beginning in the third quarter of 2010, AIG Property Casualty includes the results of Fuji Fire & Marine Insurance Company Limited (Fuji), which writes primarily consumer lines in Japan. See Note 5 herein.

During 2012, 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. Also, certain environmental liability businesses were moved from Commercial Insurance to run-off operations included in the AIG Property Casualty Other category. Accordingly, all periods have been restated from previously reported segment information to reflect this change. These revisions did not affect the total AIG Property Casualty reportable segment results previously reported.

AIG Life and Retirement – The AIG Life and Retirement segment is presented as two operating segments – Life Insurance, which focuses on mortality and morbidity based protection products, and Retirement Services, which focuses on investment, retirement savings and income solutions.

AIG Life and Retirement offers a comprehensive suite of products and services to individuals and groups, including term life insurance, universal life insurance, accident and health (A&H) insurance, fixed and variable deferred annuities, fixed payout annuities, mutual funds and financial planning. AIG Life and Retirement offers its products and services through a diverse, multi-channel distribution network that includes banks, national, regional and independent broker-dealers, affiliated financial advisors, independent marketing organizations, independent and career insurance agents, structured settlement brokers, benefit consultants and direct-to-consumer platforms.

Other Operations – Our Other operations include results from:

•: Mortgage Guaranty operations;
•: Global Capital Markets operations;
•: Direct Investment book results;
•: Retained Interests, which represents the fair value gains or losses, prior to their sale, on the AIA Group Limited. (AIA) ordinary shares retained following the AIA initial public offering the MetLife, Inc. (MetLife) securities that were received as consideration from the sale of American Life Insurance Company (ALICO), and the fair value gains or losses, prior to the Federal Reserve Bank of New York (FRBNY) liquidation of Maiden Lane III LLC (ML III) assets, on the retained interest in ML III;
•: Corporate & Other operations (after allocations to our business segments); and
•: Divested businesses that did not qualify for discontinued operations accounting.

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




(in millions)	Total Revenues			Other-than- temporary impairment charges^(a)		Net (gain) loss on sale of properties and divested businesses		Interest Expense^(b)			Depreciation and Amortization			Pre-tax Income from continuing operations

2012
AIG Property Casualty
Commercial Insurance	$	23,609		$	–	$	–	$	5		$	2,735		$	904
Consumer Insurance		14,403			–		–		4			2,121			292
Other		1,769			378		–		1			(1	)		641

Total AIG Property Casualty	$	39,781		$	378	$	–	$	10		$	4,855		$	1,837

AIG Life and Retirement
Life Insurance		9,509			162		–		–			322			1,966
Retirement Services		7,258			562		–		–			(109	)		1,814

Total AIG Life and Retirement	$	16,767		$	724	$	–	$	–		$	213		$	3,780

Other Operations
Mortgage Guaranty		867			–		–		–			44			15
Global Capital Markets		745			–		–		–			–			553
Direct Investment Book		2,024			60		–		369			(121	)		1,632
Retained Interests		4,957			–		–		–			–			4,957
Corporate & Other		1,429			5		2		1,998			318			(3,262	)
Consolidation and Elimination		(48	)		–		–		(27	)		–			4

Total Other Operations	$	9,974		$	65	$	2	$	2,340		$	241		$	3,899

AIG Consolidation and Elimination		(866	)		–		–		(31	)		(2	)		(194	)

Total AIG Consolidated	$	65,656		$	1,167	$	2	$	2,319		$	5,307		$	9,322

2011
AIG Property Casualty
Commercial Insurance	$	25,016		$	–	$	–	$	3		$	2,864		$	1,339
Consumer Insurance		14,109			–		–		4			1,836			(44	)
Other		1,597			274		–		–			–			525

Total AIG Property Casualty	$	40,722		$	274	$	–	$	7		$	4,700		$	1,820

AIG Life and Retirement
Life Insurance		8,282			223		–		–			301			1,387
Retirement Services		7,033			754		–		–			390			1,569

Total AIG Life and Retirement	$	15,315		$	977	$	–	$	–		$	691		$	2,956

Other Operations
Mortgage Guaranty		944			–		–		–			44			(77	)
Global Capital Markets		266			–		–		–			–			(7	)
Direct Investment Book		1,004			25		–		367			(218	)		622
Retained Interests		486			–		–		–			–			486
Corporate & Other		1,415			4		74		2,143			207			(5,727	)
Consolidation and Elimination		(36	)		–		–		(20	)		–			–

Total Other Operations	$	4,079		$	29	$	74	$	2,490		$	33		$	(4,703	)

AIG Consolidation and Elimination		(304	)		–		–		(53	)		–			43

Total AIG Consolidated	$	59,812		$	1,280	$	74	$	2,444		$	5,424		$	116

(in millions)	Total Revenues			Other-than- temporary impairment charges^(a)		Net (gain) loss on sale of properties and divested businesses			Interest Expense^(b)			Depreciation and Amortization			Pre-tax Income from continuing operations



2010
AIG Property Casualty
Commercial Insurance	$	24,371		$	–	$	–		$	1		$	2,911		$	305
Consumer Insurance		11,580			–		–			–			1,509			185
Other		1,256			577		(669	)		–			2			(583	)

Total AIG Property Casualty	$	37,207		$	577	$	(669	)	$	1		$	4,422		$	(93	)

AIG Life and Retirement
Life Insurance		8,334			409		–			–			433			1,441
Retirement Services		6,413			1,549		–			–			189			1,260

Total AIG Life and Retirement	$	14,747		$	1,958	$	–		$	–		$	622		$	2,701

Other Operations
Mortgage Guaranty		1,168			–		–			–			43			397
Global Capital Markets		532			2		–			3			4			193
Direct Investment Book		1,499			356		–			382			(317	)		1,242
Retained Interests		1,819			–		–			–			–			1,819
Corporate & Other		2,631			30		(18,897	)		6,551			342			11,436
Divested Businesses		13,811			116		–			4			861			2,435
Consolidation and Elimination		(55	)		–		–			(59	)		–			89

Total Other Operations	$	21,405		$	504	$	(18,897	)	$	6,881		$	933		$	17,611

AIG Consolidation and Elimination		(530	)		–		–			(140	)		–			28

Total AIG Consolidated	$	72,829		$	3,039	$	(19,566	)	$	6,742		$	5,977		$	20,247

(a) Included in Total revenues presented above.

(b) Interest expense for Other operations in 2010 includes amortization of prepaid commitment fee asset related to the FRBNY Credit Facility of $3.5 billion.

The following table presents AIG's year-end identifiable assets and capital expenditures by reportable segment:




	Year-end identifiable assets						Capital expenditures
(in millions)	2012			2011			2012		2011

AIG Property Casualty
Commercial Insurance	$	^(a)		$	^(a)		$	^(a)	$	^(a)
Consumer Insurance		^(a)			^(a)			^(a)		^(a)
Other		^(a)			^(a)			^(a)		^(a)

Total AIG Property Casualty	$	178,733		$	177,892		$	321	$	234

AIG Life and Retirement
Life Insurance		105,441			90,446			48		42
Retirement Services		177,002			177,627			12		33
Consolidation and Elimination		(6,769	)		(9,610	)		–		–

Total AIG Life and Retirement	$	275,674		$	258,463		$	60	$	75

Other Operations
Mortgage Guaranty		5,270			5,395			11		37
Global Capital Markets		7,050			12,620			–		–
Direct Investment Book		28,528			31,172			–		–
Retained Interests		–			15,086			–		–
Corporate & Other		87,021			99,085			680		618
Aircraft Leasing^(b)		39,812			39,107			–		604
Consolidation and Elimination		23,431			27,153			–		–

Total Other Operations	$	191,112		$	229,618		$	691	$	1,259

AIG Consolidation and Elimination		(96,886	)		(112,919	)		–		–

Total Assets	$	548,633		$	553,054		$	1,072	$	1,568

(a) AIG Property Casualty manages its assets on an aggregate basis and does not allocate its assets, other than goodwill, between its operating segments.

(b) 2012 includes Aircraft Leasing assets classified as assets held-for-sale on the Consolidated Balance Sheet.

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




	Claims and claims adjustment expenses incurred						Underwriting expenses
(in millions)	2012		2011		2010		2012		2011		2010

Commercial Insurance	$	16,696	$	18,332	$	18,814	$	6,009	$	5,345	$	5,252
Consumer Insurance		8,498		8,900		6,745		5,613		5,253		4,650
Other		591		717		2,308		466		272		200

Total AIG Property Casualty		25,785		27,949		27,867		12,088		10,870		10,102

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




	Life Insurance						Retirement Services
(in millions)	2012		2011		2010		2012		2011		2010

Insurance-oriented products	$	5,985	$	5,813	$	5,992	$	–	$	–	$	–
Retirement savings products		3,524		2,469		2,335		6,410		6,006		6,150
Asset management revenues		–		–		7		848		1,027		263

Total revenues		9,509		8,282		8,334		7,258		7,033		6,413

The following table presents AIG's consolidated operations and long-lived assets by major geographic area:




	Total revenues^(a)						Real estate and other fixed assets, net of accumulated depreciation
(in millions)	2012		2011		2010		2012		2011		2010

United States	$	46,171	$	40,002	$	40,232	$	1,391	$	1,330	$	1,896
Asia		7,635		6,834		19,084		516		591		557
Other Foreign		11,850		12,976		13,513		306		386		392

Consolidated		65,656		59,812		72,829		2,213		2,307		2,845

(a) Revenues are generally reported according to the geographic location of the reporting unit.

- 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 Accounting Standards Codification

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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

DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS

12 Months Ended

Dec. 31, 2012

DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS

DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS

4. DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS

Divested Businesses

AIA Initial Public Offering and Subsequent Sales

On October 29, 2010, we completed an initial public offering (IPO) of 8.08 billion ordinary shares of AIA for aggregate gross proceeds of approximately $20.5 billion. Upon completion of the IPO, we owned 33 percent of the outstanding AIA ordinary shares. Accordingly, we deconsolidated AIA and recorded a pre-tax gain of $18.1 billion in 2010. During 2012, we sold our remaining AIA ordinary shares for aggregate gross proceeds of approximately $14.5 billion. As a result of these sales, we no longer held an interest in AIA as of December 31, 2012. Prior to the disposition, we accounted for our investment in AIA under the fair value option with gains and losses recorded in Net investment income. At December 31, 2011, the fair value of our retained interest in AIA was approximately $12.4 billion, and was included in Other invested assets.

The following table presents certain information relating to our sales of AIA ordinary shares:

(in billions, except share data)		Gross Proceeds



Sales:
March 7, 2012	1,720,000,000	$	6.0
September 11, 2012	591,866,000		2.0
December 20, 2012	1,648,903,201		6.5

Total Sales	3,960,769,201	$	14.5

Held-For-Sale Classification

We report a business as held for sale when management has approved or received approval to sell the business and is committed to a formal plan, the business is available for immediate sale, the business is being actively marketed, the sale is anticipated to occur during the next 12 months and certain other specified criteria are met. A business classified as held for sale is recorded at the lower of its carrying amount or estimated fair value less cost to sell. If the carrying amount of the business exceeds its estimated fair value, a loss is recognized. Depreciation is not recorded on assets of a business after it is classified as held for sale. Assets and liabilities related to a business classified as held for sale are segregated in the Consolidated Balance Sheet in the period in which the business is classified as held for sale.

At December 31, 2012, held-for-sale assets and liabilities consisted of ILFC.

The following table summarizes the components of assets and liabilities held-for-sale on the Consolidated Balance Sheet as of December 31, 2012:

(in millions)	December 31, 2012



Assets:
Equity securities	$	1
Mortgage and other loans receivable, net		117
Flight equipment primarily under operating leases, net of accumulated depreciation		34,468
Short-term investments		1,861
Cash		63
Premiums and other receivables, net of allowance		308
Other assets		1,864

Assets of businesses held for sale		38,682

Less: Loss Accrual		(6,717	)

Total assets held for sale	$	31,965

Liabilities:
Other liabilities	$	3,043
Other long-term debt		24,323

Total liabilities held for sale	$	27,366

Discontinued Operations

We report the results of operations of a business as discontinued operations if the business is classified as held for sale, the operations and cash flows of the business have been or will be eliminated from our ongoing operations as a result of a disposal transaction and we will not have any significant continuing involvement in the operations of the business after the disposal transaction. The results of discontinued operations are reported in Discontinued Operations in the Consolidated Statement of Operations for current and prior periods commencing in the period in which the business meets the criteria of a discontinued operation, and include any gain or loss recognized on closing or adjustment of the carrying amount to fair value less cost to sell.

The results of operations for the following businesses are presented as discontinued operations in our Consolidated Statement of Operations.

International Lease Finance Corporation Sale

On December 9, 2012, we entered into a definitive agreement with Jumbo Acquisition Limited for the sale of 80.1 percent of the common stock of ILFC for approximately $4.2 billion in cash. Jumbo Acquisition Limited may elect to purchase an additional 9.9 percent of the common stock of ILFC for $522.5 million (the Option) by the later of March 15, 2013 and ten days after approval of the ILFC Transaction and the Option by the Committee on Foreign Investment in the United States. We will retain a 19.9 percent ownership interest in ILFC, or a 10.0 percent ownership interest in ILFC, if the Option is exercised by Jumbo Acquisition Limited, in each case subject to dilution for management issuances (which, over time, would reduce our ownership interest by approximately one percentage point). The transaction is subject to required regulatory approvals and other customary closing conditions. We determined ILFC met the criteria at December 31, 2012 for held for sale and discontinued operations accounting and, consequently, we recorded a $4.4 billion after tax loss for the year ended December 31, 2012, which is reported in Income (loss) from discontinued operations in the Consolidated Statement of Operations. At the closing of the transaction, AIG will return $1.1 billion to ILFC in connection with the termination of intercompany arrangements between AIG and ILFC.

Nan Shan Sale

On January 12, 2011, we entered into an agreement to sell our 97.57 percent interest in Nan Shan Life Insurance Company, Ltd. (Nan Shan) to a Taiwan-based consortium. The transaction was consummated on August 18, 2011 for net proceeds of $2.15 billion in cash. We recorded a pre-tax loss of $1.0 billion for the year ended December 31, 2011 largely offsetting Nan Shan operating results for the period, which is reflected in Income (loss) from discontinued operations in the Consolidated Statement of Operations. The net proceeds from the transaction were used to pay down a portion of the liquidation preference of the Department of the Treasury's preferred interests (AIA SPV Preferred Interests) in the special purpose vehicle holding the proceeds of the AIA initial public offering (the AIA SPV).

AIG Star and AIG Edison Sale

On September 30, 2010, we entered into a definitive agreement with Prudential Financial, Inc. for the sale of our 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 we 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. In connection with the sale, we recorded a goodwill impairment charge of $1.3 billion in the third quarter of 2010.

AGF Sale

On August 10, 2010, we entered into a definitive agreement to sell an 80 percent economic interest (84 percent voting interest) in AGF for $125 million. The AGF sale closed on November 30, 2010. Our voting ownership interest in AGF was reduced to approximately 16 percent, and we do not otherwise have significant continuing involvement with or significant continuing cash flows from AGF. We are carrying our retained investment in AGF of approximately $30 million as a cost method investment in Other invested assets. As a result of this transaction, we recorded a pre-tax loss of $1.7 billion in 2010. The components of the $1.7 billion charge consisted of the difference between (i) the sum of the fair value of the agreed consideration and our retained 20 percent economic interest and (ii) the net book value of the assets.

ALICO Sale

On March 7, 2010, AIG and the special purpose vehicle holding the proceeds of the sale of ALICO (ALICO SPV) entered into a definitive agreement with MetLife for the sale of ALICO by the ALICO SPV to MetLife, and the sale of Delaware American Life Insurance Company by AIG to MetLife, for consideration then valued at approximately $15.5 billion, consisting of $6.8 billion in cash and the remainder in equity securities of MetLife, subject to closing adjustments. The ALICO sale closed on November 1, 2010. We do not have any significant continuing involvement with or significant continuing cash flows from ALICO. The fair value of the consideration at closing was approximately $16.2 billion. At December 31, 2010, a total of $6.5 billion was included in common and preferred stock trading.

On the closing date, as consideration for the ALICO sale, the ALICO SPV received net cash consideration of $7.2 billion (which included an upward price adjustment of approximately $400 million pursuant to the terms of the ALICO stock purchase agreement), 78,239,712 shares of MetLife common stock, 6,857,000 shares of newly issued MetLife participating preferred stock convertible into 68,570,000 shares of MetLife common stock upon the approval of MetLife shareholders and 40,000,000 equity units of MetLife with an aggregate stated value of $3.2 billion. AIG recorded a pre-tax gain of $7.9 billion on the transaction in 2010.

As part of the Recapitalization, we used approximately $6.1 billion of the cash proceeds from the ALICO sale to pay down a portion of the liquidation preference of the SPV Preferred Interests.

ALICO, Nan Shan, AIG Star and AIG Edison previously were components of the Foreign Life Insurance & Retirement Services reportable segment and AGF previously was a component of the Financial Services reportable segment. Results from discontinued operations for 2011 and 2010 include the results of Nan Shan, AIG Star and AIG Edison through the date of disposition. Results from discontinued operations for 2010 also include the results of ALICO and AGF, which were sold during 2010. The results also include adjustments for guarantees and indemnifications related to these sold businesses.

See Note 16 herein for a discussion of guarantees and indemnifications associated with sales of businesses.

Certain other sales completed during 2011 and 2010 were not classified as discontinued operations because we continued to generate significant direct revenue-producing or cost-generating cash flows from the businesses or because associated assets, liabilities and results of operations were not material, individually or in the aggregate, to our consolidated financial position or results of operations.

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




Years Ended December 31, (in millions)	2012			2011			2010

Revenues:
Premiums	$	–		$	5,012		$	18,296
Net investment income		–			1,632			6,924
Net realized capital gains		1			834			158
Aircraft leasing revenue		4,504			4,508			4,749
Other income		(18	)		(48	)		1,697

Total revenues		4,487			11,938			31,824

Benefits, claims and expenses, excluding Aircraft leasing expenses^*		1,596			7,910			30,458
Aircraft leasing expenses		2,587			3,876			4,050
Interest expense allocation		–			2			75

Income (loss) from discontinued operations		304			150			(2,759	)

Gain (loss) on sale		(6,733	)		2,338			5,389

Income (loss) from discontinued operations, before tax income tax expense (benefit)		(6,429	)		2,488			2,630

Income tax expense (benefit)		(2,377	)		698			3,599

Income (loss) from discontinued operations, net of income tax	$	(4,052	)	$	1,790		$	(969	)

* In 2010, includes goodwill impairment charges of $3.3 billion related to the sale of ALICO and $1.3 billion related to the sale of AIG Star and AIG Edison. In 2012, includes goodwill impairment charges of $23 million related to the ILFC Transaction. See Note 2 – Goodwill herein for further discussion.

Interest Expense Allocation

Interest expense allocated to discontinued operations gives effect to the provisions of the Recapitalization discussed in Note 25 for all periods presented. For this reason, an interest allocation to discontinued operations related to a portion of the ALICO and all the AGF proceeds was required.

The interest expense allocated to discontinued operations was based on the anticipated net proceeds that would be applied toward the repayment of the FRBNY Credit Facility from the sales of ALICO and AGF multiplied by the daily interest rate on the FRBNY Credit Facility for each respective period. The periodic amortization of the prepaid commitment fee allocated to discontinued operations was determined based on the ratio of funds committed to repay the FRBNY Credit Facility to the total amount of credit available under the FRBNY Credit Facility.

Prior to the Recapitalization, the terms of the FRBNY Credit Facility contractually required net proceeds from dispositions, after taxes and transaction expenses, to the extent such proceeds did not represent capital of AIG's insurance subsidiaries required for regulatory or ratings purposes, to be applied toward the repayment of the FRBNY Credit Facility as mandatory prepayments unless otherwise agreed with the FRBNY. Mandatory prepayments reduced the amount available to be borrowed under the FRBNY Credit Facility by the amount of the prepayment. In conjunction with anticipated prepayments, AIG allocated interest expense, including periodic amortization of the prepaid commitment fee asset, to Income (loss) from discontinued operations. As a result of the revised terms for repayment of the FRBNY Credit Facility, interest expense that was previously allocated to discontinued operations in connection with the sales of AIG Star, AIG Edison and Nan Shan was reclassified to continuing operations for all periods presented.

- Definition

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

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+ Details

BUSINESS COMBINATIONS	12 Months Ended
BUSINESS COMBINATIONS	Dec. 31, 2012
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS	5. BUSINESS COMBINATIONS On March 31, 2010, through an AIG Property Casualty subsidiary, we purchased additional voting shares in Fuji, a publicly traded Japanese insurance company with property/casualty insurance operations and a life insurance subsidiary. The acquisition of the additional voting shares for $145 million increased AIG Property Casualty' total voting ownership interest in Fuji from 41.7 percent to 54.8 percent, which resulted in AIG Property Casualty obtaining control of Fuji. In connection with the acquisition, we recognized a bargain purchase gain of $332 million in the Consolidated Statement of Operations for the year ended December 31, 2010. The bargain purchase gain was primarily attributable to the depressed market value of Fuji's common stock, which we believe was the result of macroeconomic, capital market and regulatory factors in Japan coupled with Fuji's financial condition and results of operations. The acquisition was consistent with AIG Property Casualty's desire to increase its share in the substantial Japanese insurance market and to achieve cost savings from synergies. In March 2011, AIG Property Casualty completed the acquisition of approximately 305 million shares of Fuji tendered in response to a public offer at an offer price of 146 Yen per share ($1.76 per share) for a purchase price of $538 million. In August 2011, AIG Property Casualty acquired the remaining outstanding voting shares of Fuji. As a result of these actions, AIG Property Casualty now owns 100 percent of Fuji. The 2011 purchases were accounted for as equity transactions because we previously consolidated Fuji due to our controlling interest. Accordingly, the difference between the fair value of the total consideration paid of $560 million and the carrying value of the noncontrolling interest acquired of $489 million was recognized as a reduction of our equity in Fuji. There was no gain or loss recorded in the Consolidated Statement of Operations for the year ended December 31, 2011.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

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+ Details

FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2012

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

6. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

We carry certain of our financial instruments at fair value. We define 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. We are responsible for the determination of the value of the investments carried at fair value and the supporting methodologies and assumptions.

The degree of judgment used in measuring the fair value of financial instruments generally inversely correlates with the level of observable valuation inputs. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Financial instruments with quoted prices in active markets generally have more pricing observability and less judgment is used in measuring fair value. Conversely, financial instruments for which no quoted prices are available have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. Pricing observability is affected by a number of factors, including the type of financial instrument, whether the financial instrument is new to the market and not yet established, the characteristics specific to the transaction, liquidity and general market conditions.

Fair Value Hierarchy

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 we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.
•: 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, we must make certain assumptions as to the inputs a hypothetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The following is a description of the valuation methodologies used for instruments carried at fair value. These methodologies are applied to assets and liabilities across the levels noted above, and it is the observability of the inputs used that determines the appropriate level in the fair value hierarchy for the respective asset or liability.

Valuation Methodologies of Financial Instruments Measured at Fair Value

Incorporation of Credit Risk in Fair Value Measurements

•: Our Own Credit Risk. Fair value measurements for certain liabilities incorporate our own credit risk by determining the explicit cost for each counterparty to protect against its net credit exposure to us at the balance sheet date by reference to observable AIG CDS or cash bond spreads. A derivative counterparty's net credit exposure to us is determined based on master netting agreements, when applicable, which take into consideration all derivative positions with us, as well as collateral we post with the counterparty at the balance sheet date. We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates.
•: Counterparty Credit Risk. Fair value measurements for freestanding derivatives incorporate counterparty credit by determining the explicit cost for us to protect against our net credit exposure to each counterparty at the balance sheet date by reference to observable counterparty CDS spreads, when available. When not available, other directly or indirectly observable credit spreads will be used to derive the best estimates of the counterparty spreads. Our net credit exposure to a counterparty is determined based on master netting agreements, which take into consideration all derivative positions with the counterparty, as well as collateral posted by the counterparty at the balance sheet date.

Fair values for fixed maturity securities based on observable market prices for identical or similar instruments implicitly incorporate counterparty credit risk. Fair values for fixed maturity securities based on internal models incorporate counterparty credit risk by using discount rates that take into consideration cash issuance spreads for similar instruments or other observable information.

The cost of credit protection is determined under a discounted present value approach considering the market levels for single name CDS spreads for each specific counterparty, the mid market value of the net exposure (reflecting the amount of protection required) and the weighted average life of the net exposure. CDS spreads are provided to us by an independent third party. We utilize an interest rate based on the benchmark London Interbank Offered Rate (LIBOR) curve to derive our discount rates.

While this approach does not explicitly consider all potential future behavior of the derivative transactions or potential future changes in valuation inputs, we believe this approach provides a reasonable estimate of the fair value of the assets and liabilities, including consideration of the impact of non-performance risk.

Fixed Maturity Securities – Trading and Available for Sale

Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure fixed maturity securities at fair value in our trading and available for sale portfolios. Market price data is generally obtained from dealer markets.

We employ independent third-party valuation service providers to gather, analyze, and interpret market information to derive fair value estimates for individual investments, based upon market-accepted methodologies and assumptions. The methodologies used by these independent third-party valuation services are reviewed and understood by management, through periodic discussion with and information provided by the valuation services. In addition, as discussed further below, control processes are applied to the fair values received from third-party valuation services to ensure the accuracy of these values.

Valuation service providers typically obtain data about market transactions and other key valuation model inputs from multiple sources and, through the use of widely accepted valuation methodologies, which may utilize matrix pricing, financial models, accompanying model inputs and various assumptions, provide a single fair value measurement for individual securities. The inputs used by the valuation service providers include, but are not limited to, market prices from completed transactions for identical securities and transactions for comparable securities, benchmark yields, interest rate yield curves, credit spreads, currency rates, quoted prices for similar securities and other market-observable information, as applicable. If fair value is determined using financial models, these models generally take into account, among other things, market observable information as of the measurement date as well as the specific attributes of the security being valued, including its term, interest rate, credit rating, industry sector, and when applicable, collateral quality and other security or issuer-specific information. When market transactions or other market observable data is limited, the extent to which judgment is applied in determining fair value is greatly increased.

We have control processes designed to ensure that the fair values received from third party valuation services are accurately recorded, that their data inputs and valuation techniques are appropriate and consistently applied and that the assumptions used appear reasonable and consistent with the objective of determining fair value. We assess the reasonableness of individual security values received from valuation service providers through various analytical techniques, and have procedures to escalate related questions internally and to the third party valuation services for resolution. To assess the degree of pricing consensus among various valuation services for specific asset types, we have conducted comparisons of prices received from available sources. We have used these comparisons to establish a hierarchy for the fair values received from third party valuation services to be used for particular security classes. We also validate prices for selected securities through reviews by members of management who have relevant expertise and who are independent of those charged with executing investing transactions.

When our third-party valuation service providers are unable to obtain sufficient market observable information upon which to estimate the fair value for a particular security, fair value is determined either by requesting brokers who are knowledgeable about these securities to provide a price quote, which is generally non-binding, or by employing widely accepted valuation models. Broker prices may be based on an income approach, which converts expected future cash flows to a single present value amount, with specific consideration of inputs relevant to particular security types. For structured securities, such inputs may include ratings, collateral types, geographic concentrations, underlying loan vintages, loan delinquencies, and weighted average coupons and maturities. When the volume or level of market activity for a security is limited, certain inputs used to determine fair value may not be observable in the market. Broker prices may also be based on a market approach that considers recent transactions involving identical or similar securities. Fair values provided by brokers are subject to similar control processes to those noted above for fair values from third party valuation services, including management reviews. For those corporate debt instruments (for example, private placements) that are not traded in active markets or that are subject to transfer restrictions, valuations are adjusted to reflect illiquidity and non-transferability, and such adjustments generally are based on available market evidence. 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 comparable securities, adjusted for illiquidity and structure. Fair values determined internally are also subject to management review to ensure that valuation models and related inputs are reasonable.

The methodology above is relevant for all fixed maturity securities including residential mortgage-backed securities (RMBS), commercial mortgage backed securities (CMBS), CDOs, other asset-backed securities (ABS) and fixed maturity securities issued by government sponsored entities and corporate entities.

Equity Securities Traded in Active Markets – Trading and Available for Sale

Whenever available, we obtain quoted prices in active markets for identical assets at the balance sheet date to measure at fair value marketable equity securities in our trading and available for sale portfolios or in Other invested assets. Market price data is generally obtained from exchange or dealer markets.

Mortgage and Other Loans Receivable

We estimate the fair value of mortgage and other loans receivable that are measured at fair value by using dealer quotations, discounted cash flow analyses and/or internal valuation models. The determination of fair value considers inputs such as interest rate, maturity, the borrower's creditworthiness, collateral, subordination, guarantees, past-due status, yield curves, credit curves, prepayment rates, market pricing for comparable loans and other relevant factors.

Other Invested Assets

We initially estimate the fair value of investments in certain hedge funds, private equity funds and other investment partnerships by reference to the transaction price. Subsequently, we generally obtain the fair value of these investments from net asset value information provided by the general partner or manager of the investments, the financial statements of which are generally audited annually. We consider observable market data and perform certain control procedures to validate the appropriateness of using the net asset value as a fair value measurement. The fair values of other investments carried at fair value, such as direct private equity holdings, are initially determined based on transaction price and are subsequently estimated based on available evidence such as market transactions in similar instruments and other financing transactions of the issuer, with adjustments made to reflect illiquidity as appropriate.

Short-term Investments

For short-term investments that are measured at fair value, the carrying values of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk. Securities purchased under agreements to resell (reverse repurchase agreements) are generally treated as collateralized receivables. We report certain receivables arising from securities purchased under agreements to resell as Short-term investments in the Consolidated Balance Sheet. We use market-observable interest rates for receivables measured at fair value. This methodology considers such factors as the coupon rate and yield curves.

Separate Account Assets

Separate account assets are composed primarily of registered and unregistered open-end mutual funds that generally trade daily and are measured at fair value in the manner discussed above for equity securities traded in active markets.

Freestanding Derivatives

Derivative assets and liabilities can be exchange-traded or traded over-the-counter (OTC). We generally value exchange-traded derivatives such as futures and options using quoted prices in active markets for identical derivatives at the balance sheet date.

OTC derivatives are valued using market transactions and other market evidence whenever possible, including market-based inputs to models, model calibration to market clearing transactions, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. When models are used, the selection of a particular model to value an OTC derivative depends on the contractual terms of, and specific risks inherent in the instrument, as well as the availability of pricing information in the market. We generally use similar models to value similar instruments. Valuation models require a variety of inputs, including contractual terms, market prices and rates, yield curves, credit curves, measures of volatility, prepayment rates and correlations of such inputs. For OTC derivatives that trade in liquid markets, such as generic forwards, swaps and options, model inputs can generally be corroborated by observable market data by correlation or other means, and model selection does not involve significant management judgment.

For certain OTC derivatives that trade in less liquid markets, where we generally do not have corroborating market evidence to support significant model inputs and cannot verify the model to market transactions, the transaction price may provide the best estimate of fair value. Accordingly, when a pricing model is used to value such an instrument, the model is adjusted so the model value at inception equals the transaction price. We will update valuation inputs in these models only when corroborated by evidence such as similar market transactions, third party pricing services and/or broker or dealer quotations, or other empirical market data. When appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads and credit considerations. Such adjustments are generally based on available market evidence. In the absence of such evidence, management's best estimate is used.

Embedded Policy Derivatives

Certain variable annuity and equity-indexed annuity and life contracts contain embedded policy derivatives that we bifurcate from the host contracts and account for separately at fair value, with changes in fair value recognized in earnings. We have concluded these contracts contain (i) written option guarantees on minimum accumulation value, (ii) a series of written options that guarantee withdrawals from the highest anniversary value within a specific period or for life, or (iii) equity-indexed written options that meet the criteria of derivatives that must be bifurcated.

The fair value of embedded policy derivatives contained in certain variable annuity and equity-indexed annuity and life contracts is measured based on actuarial and capital market assumptions related to projected cash flows over the expected lives of the contracts. These cash flow estimates primarily include benefits and related fees assessed, when applicable, and incorporate expectations about policyholder behavior. Estimates of future policyholder behavior are subjective and based primarily on our historical experience.

With respect to embedded policy derivatives in our variable annuity contracts, because of the dynamic and complex nature of the expected cash flows, risk neutral valuations are used. Estimating the underlying cash flows for these products involves judgments regarding expected market rates of return, market volatility, correlations of market index returns to funds, fund performance, discount rates and policyholder behavior. With respect to embedded policy derivatives in our equity-indexed annuity and life contracts, option pricing models are used to estimate fair value, taking into account assumptions for future equity index growth rates, volatility of the equity index, future interest rates, and determinations on adjusting the participation rate and the cap on equity-indexed credited rates in light of market conditions and policyholder behavior assumptions. These methodologies incorporate an explicit risk margin to take into consideration market participant estimates of projected cash flows and policyholder behavior.

We also incorporate our own risk of non-performance in the valuation of the embedded policy derivatives associated with variable annuity and equity-indexed annuity and life contracts. Historically, the expected cash flows were discounted using the interest rate swap curve (swap curve), which is commonly viewed as being consistent with the credit spreads for highly-rated financial institutions (S&P AA-rated or above). A swap curve shows the fixed-rate leg of a non-complex swap against the floating rate (for example, LIBOR) leg of a related tenor. The swap curve was adjusted, as necessary, for anomalies between the swap curve and the U.S. Treasury yield curve. During the fourth quarter of 2010, we revised the non-performance risk adjustment to reflect a market participant's view of AIG Life and Retirement's claims paying ability. As a result, in 2010, we incorporated an additional spread to the swap curve used to value embedded policy derivatives, thereby reducing the fair value of the embedded derivative liabilities by $336 million, which was partially offset by $173 million of DAC amortization.

Super Senior Credit Default Swap Portfolio

We value CDS transactions written on the super senior risk layers of designated pools of debt securities or loans using internal valuation models, third-party price estimates and market indices. The principal market was determined to be the market in which super senior credit default swaps of this type and size would be transacted, or have been transacted, with the greatest volume or level of activity. We have determined that the principal market participants, therefore, would consist of other large financial institutions who participate in sophisticated over-the-counter derivatives markets. The specific valuation methodologies vary based on the nature of the referenced obligations and availability of market prices.

The valuation of the super senior credit derivatives is challenging given the limitation on the availability of market observable information due to the lack of trading and price transparency in certain structured finance markets. These market conditions have increased the reliance on management estimates and judgments in arriving at an estimate of fair value for financial reporting purposes. Further, disparities in the valuation methodologies employed by market participants and the varying judgments reached by such participants when assessing volatile markets have increased the likelihood that the various parties to these instruments may arrive at significantly different estimates as to their fair values.

Our valuation methodologies for the super senior credit default swap portfolio have evolved over time in response to market conditions and the availability of market observable information. We have sought to calibrate the methodologies to available market information and to review the assumptions of the methodologies on a regular basis.

Regulatory capital portfolio: In the case of credit default swaps written to facilitate regulatory capital relief, we estimate the fair value of these derivatives by considering observable market transactions. The transactions with the most observability are the early terminations of these transactions by counterparties. We continue to reassess the expected maturity of the portfolio. There has been no requirement to make any payments as part of terminations of super senior regulatory capital CDSs initiated by counterparties. In assessing the fair value of the regulatory capital CDS transactions, we also consider other market data, to the extent relevant and available.

Multi-sector CDO portfolios: We use a modified version of the Binomial Expansion Technique (BET) model to value our credit default swap portfolio written on super senior tranches of multi-sector CDOs of ABS. The BET model was developed in 1996 by a major rating agency to generate expected loss estimates for CDO tranches and derive a credit rating for those tranches, and remains widely used.

We have adapted the BET model to estimate the price of the super senior risk layer or tranche of the CDO. We modified the BET model to imply default probabilities from market prices for the underlying securities and not from rating agency assumptions. To generate the estimate, the model uses the price estimates for the securities comprising the portfolio of a CDO as an input and converts those estimates to credit spreads over current LIBOR-based interest rates. These credit spreads are used to determine implied probabilities of default and expected losses on the underlying securities. This data is then aggregated and used to estimate the expected cash flows of the super senior tranche of the CDO.

Prices for the individual securities held by a CDO are obtained in most cases from the CDO collateral managers, to the extent available. CDO collateral managers provided market prices for 59 percent of the underlying securities used in the valuation at December 31, 2012. When a price for an individual security is not provided by a CDO collateral manager, we derive the price through a pricing matrix using prices from CDO collateral managers for similar securities. Matrix pricing is a mathematical technique used principally to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the relationship of the security to other benchmark quoted securities. Substantially all of the CDO collateral managers who provided prices used dealer prices for all or part of the underlying securities, in some cases supplemented by third-party pricing services.

The BET model also uses diversity scores, weighted average lives, recovery rates and discount rates. We employ a Monte Carlo simulation to assist in quantifying the effect on the valuation of the CDO of the unique aspects of the CDO's structure such as triggers that divert cash flows to the most senior part of the capital structure. The Monte Carlo simulation is used to determine whether an underlying security defaults in a given simulation scenario and, if it does, the security's implied random default time and expected loss. This information is used to project cash flow streams and to determine the expected losses of the portfolio.

In addition to calculating an estimate of the fair value of the super senior CDO security referenced in the credit default swaps using our internal model, we also consider the price estimates for the super senior CDO securities provided by third parties, including counterparties to these transactions, to validate the results of the model and to determine the best available estimate of fair value. In determining the fair value of the super senior CDO security referenced in the credit default swaps, we use a consistent process that considers all available pricing data points and eliminates the use of outlying data points. When pricing data points are within a reasonable range an averaging technique is applied.

Corporate debt/Collateralized loan obligation (CLO) portfolios: In the case of credit default swaps written on portfolios of investment-grade corporate debt, we use a mathematical model that produces results that are closely aligned with prices received from third parties. This methodology uses the current market credit spreads of the names in the portfolios along with the base correlations implied by the current market prices of comparable tranches of the relevant market traded credit indices as inputs.

We estimate the fair value of our obligations resulting from credit default swaps written on CLOs to be equivalent to the par value less the current market value of the referenced obligation. Accordingly, the value is determined by obtaining third-party quotations on the underlying super senior tranches referenced under the credit default swap contract.

Policyholder Contract Deposits

Policyholder contract deposits accounted for at fair value are measured using an earnings approach by taking into consideration the following factors:

•: Current policyholder account values and related surrender charges;
•: The present value of estimated future cash inflows (policy fees) and outflows (benefits and maintenance expenses) associated with the product using risk neutral valuations, incorporating expectations about policyholder behavior, market returns and other factors; and
•: A risk margin that market participants would require for a market return and the uncertainty inherent in the model inputs.

The change in fair value of these policyholder contract deposits is recorded as Policyholder benefits and claims incurred in the Consolidated Statement of Operations.

Long-Term Debt

The fair value of non-structured liabilities is generally determined by using market prices from exchange or dealer markets, when available, or discounting expected cash flows using the appropriate discount rate for the applicable maturity. We determine the fair value of structured liabilities and hybrid financial instruments (where performance is linked to structured interest rates, inflation or currency risks) using the appropriate derivative valuation methodology (described above) given the nature of the embedded risk profile. In addition, adjustments are made to the valuations of both non-structured and structured liabilities to reflect our own creditworthiness based on the methodology described under the caption "Incorporation of Credit Risk in Fair Value Measurements – Our Own Credit Risk" above.

Borrowings under obligations of Guaranteed Investment Agreements (GIAs), which are guaranteed by us, are recorded at fair value using discounted cash flow calculations based on interest rates currently being offered for similar contracts and our current market observable implicit credit spread rates with maturities consistent with those remaining for the contracts being valued. Obligations may be called at various times prior to maturity at the option of the counterparty. Interest rates on these borrowings are primarily fixed, vary by maturity and range up to 9.8 percent.

Other Liabilities

Other liabilities measured at fair value include certain securities sold under agreements to repurchase and certain securities and spot commodities sold but not yet purchased. Liabilities arising from securities sold under agreements to repurchase are generally treated as collateralized borrowings. We estimate the fair value of liabilities arising under these agreements by using market-observable interest rates. This methodology considers such factors as the coupon rate, yield curves and other relevant factors. Fair values for securities sold but not yet purchased are based on current market prices. Fair values of spot commodities sold but not yet purchased are based on current market prices of reference spot futures contracts traded on exchanges.

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:




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

Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	–	$	3,483	$	–	$	–		$	–		$	3,483
Obligations of states, municipalities and political subdivisions		–		34,681		1,024		–			–			35,705
Non-U.S. governments		1,004		25,782		14		–			–			26,800
Corporate debt		–		149,625		1,487		–			–			151,112
RMBS		–		22,730		11,662		–			–			34,392
CMBS		–		5,010		5,124		–			–			10,134
CDO/ABS		–		3,492		4,841		–			–			8,333

Total bonds available for sale		1,004		244,803		24,152		–			–			269,959

Bond trading securities:
U.S. government and government sponsored entities		266		6,528		–		–			–			6,794
Obligations of states, municipalities and political subdivisions		–		–		–		–			–			–
Non-U.S. governments		–		2		–		–			–			2
Corporate debt		–		1,320		–		–			–			1,320
RMBS		–		1,331		396		–			–			1,727
CMBS		–		1,424		812		–			–			2,236
CDO/ABS		–		3,969		8,536		–			–			12,505

Total bond trading securities		266		14,574		9,744		–			–			24,584

Equity securities available for sale:
Common stock		3,002		3		24		–			–			3,029
Preferred stock		–		34		44		–			–			78
Mutual funds		83		22		–		–			–			105

Total equity securities available for sale		3,085		59		68		–			–			3,212

Equity securities trading		578		84		–		–			–			662
Mortgage and other loans receivable		–		134		–		–			–			134
Other invested assets		125		1,542		5,389		–			–			7,056
Derivative assets:
Interest rate contracts		2		5,521		956		–			–			6,479
Foreign exchange contracts		–		104		–		–			–			104
Equity contracts		104		63		54		–			–			221
Commodity contracts		–		144		1		–			–			145
Credit contracts		–		–		60		–			–			60
Other contracts		–		–		38		–			–			38
Counterparty netting and cash collateral		–		–		–		(2,467	)		(909	)		(3,376	)

Total derivative assets		106		5,832		1,109		(2,467	)		(909	)		3,671

Short-term investments		285		7,771		–		–			–			8,056
Separate account assets		54,430		2,907		–		–			–			57,337
Other assets		–		696		–		–			–			696

Total	$	59,879	$	278,402	$	40,462	$	(2,467	)	$	(909	)	$	375,367

Liabilities:
Policyholder contract deposits	$	–	$	–	$	1,257	$	–		$	–		$	1,257
Derivative liabilities:
Interest rate contracts		–		5,582		224		–			–			5,806
Foreign exchange contracts		–		174		–		–			–			174
Equity contracts		–		114		7		–			–			121
Commodity contracts		–		146		–		–			–			146
Credit contracts(d)		–		–		2,051		–			–			2,051
Other contracts		–		6		200		–			–			206
Counterparty netting and cash collateral		–		–		–		(2,467	)		(1,976	)		(4,443	)

Total derivative liabilities		–		6,022		2,482		(2,467	)		(1,976	)		4,061

Long-term debt(e)		–		7,711		344		–			–			8,055
Other liabilities		30		1,050		–		–			–			1,080

Total	$	30	$	14,783	$	4,083	$	(2,467	)	$	(1,976	)	$	14,453

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		6,362		–		–			–			6,462
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		–		4,877		8,432		–			–			13,309

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

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 $1.9 billion and $299 million, respectively, at December 31, 2012 and $1.8 billion and $100 million, respectively, at December 31, 2011.

(c) Level 1 Other invested assets included $12.4 billion at December 31, 2011 of AIA ordinary shares publicly traded on the Hong Kong Stock Exchange.

(d) Level 3 Credit contracts included the fair value derivative liability on the super senior credit default swap portfolio of $2.0 billion and $3.2 billion at December 31, 2012 and 2011, respectively.

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

Transfers of Level 1 and Level 2 Assets and Liabilities

Our 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 year ended December 31, 2012, we transferred $464 million of securities issued by Non-U.S. government entities from Level 1 to Level 2, as they are no longer considered actively traded. For similar reasons, during the year ended December 31, 2012, we transferred $888 million of securities issued by the U.S. government and government-sponsored entities from Level 1 to Level 2. We had no material transfers from Level 2 to Level 1 during the year ended December 31, 2012.

Changes in Level 3 Recurring Fair Value Measurements

The following tables present changes during December 31, 2012 and 2011 in Level 3 assets and liabilities measured at fair value on a recurring basis, and the realized and unrealized gains (losses) related to the Level 3 assets and liabilities in the Consolidated Balance Sheet at December 31, 2012 and 2011:




(in millions)	Fair value Beginning of Year^(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 Year			Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year

December 31, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	960		$	48		$	12		$	84		$	70		$	(150	)	$	1,024		$	–
Non-U.S. governments		9			1			(1	)		1			4			–			14			–
Corporate debt		1,935			(44	)		145			24			664			(1,237	)		1,487			–
RMBS		10,877			522			2,121			(316	)		952			(2,494	)		11,662			–
CMBS		3,955			(135	)		786			636			44			(162	)		5,124			–
CDO/ABS		4,220			334			289			10			691			(703	)		4,841			–

Total bonds available for sale		21,956			726			3,352			439			2,425			(4,746	)		24,152			–

Bond trading securities:
Corporate debt		7			–			–			(7	)		–			–			–			–
RMBS		303			76			2			(109	)		128			(4	)		396			42
CMBS		554			70			2			(159	)		446			(101	)		812			87
CDO/ABS		8,432			3,683			3			(3,968	)		386			–			8,536			2,547

Total bond trading securities		9,296			3,829			7			(4,243	)		960			(105	)		9,744			2,676

Equity securities available for sale:
Common stock		57			22			(28	)		(33	)		6			–			24			–
Preferred stock		99			17			(35	)		(36	)		11			(12	)		44			–

Total equity securities available for sale		156			39			(63	)		(69	)		17			(12	)		68			–

Mortgage and other loans receivable		1			–			–			(1	)		–			–			–			–
Other invested assets		6,618			(95	)		290			(257	)		1,204			(2,371	)		5,389			–

Total	$	38,027		$	4,499		$	3,586		$	(4,131	)	$	4,606		$	(7,234	)	$	39,353		$	2,676

Liabilities:
Policyholder contract deposits	$	(918	)	$	(275	)	$	(72	)	$	8		$	–		$	–		$	(1,257	)	$	112
Derivative liabilities, net:
Interest rate contracts		785			(11	)		–			(42	)		–			–			732			56
Foreign exchange contracts		2			–			–			(2	)		–			–			–			–
Equity contracts		28			10			–			12			(3	)		–			47			(10	)
Commodity contracts		2			5			–			(6	)		–			–			1			(6	)
Credit contracts		(3,273	)		638			–			644			–			–			(1,991	)		(1,172	)
Other contracts		33			(76	)		(18	)		15			(116	)		–			(162	)		46

Total derivative liabilities, net		(2,423	)		566			(18	)		621			(119	)		–			(1,373	)		(1,086	)

Long-term debt(b)		(508	)		(411	)		(77	)		242			(14	)		424			(344	)		105

Total	$	(3,849	)	$	(120	)	$	(167	)	$	871		$	(133	)	$	424		$	(2,974	)	$	(869	)

(in millions)	Fair value Beginning of Year^(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 Year			Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year



December 31, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	609		$	2		$	112		$	296		$	17		$	(76	)	$	960		$	–
Non-U.S. governments		5			–			–			5			–			(1	)		9			–
Corporate debt		2,262			11			(25	)		171			2,480			(2,964	)		1,935			–
RMBS		6,367			(50	)		288			3,232			1,093			(53	)		10,877			–
CMBS		3,604			(100	)		239			207			134			(129	)		3,955			–
CDO/ABS		4,241			73			142			(432	)		852			(656	)		4,220			–

Total bonds available for sale		17,088			(64	)		756			3,479			4,576			(3,879	)		21,956			–

Bond trading securities:
Corporate debt		–			–			–			(11	)		18			–			7			1
RMBS		91			(27	)		–			239			–			–			303			(28	)
CMBS		506			92			–			(95	)		292			(241	)		554			87
CDO/ABS		9,431			(660	)		–			(323	)		48			(64	)		8,432			(677	)

Total bond trading securities		10,028			(595	)		–			(190	)		358			(305	)		9,296			(617	)

Equity securities available for sale:
Common stock		61			28			(4	)		(40	)		18			(6	)		57			–
Preferred stock		64			(1	)		32			(1	)		5			–			99			–
Mutual funds		–			–			–			(6	)		6			–			–			–

Total equity securities available for sale		125			27			28			(47	)		29			(6	)		156			–

Equity securities trading		1			–			–			(1	)		–			–			–			–
Mortgage and other loans receivable		–			–			–			1			–			–			1			–
Other invested assets		7,414			(10	)		139			(739	)		251			(437	)		6,618			2

Total	$	34,656		$	(642	)	$	923		$	2,503		$	5,214		$	(4,627	)	$	38,027		$	(615	)

Liabilities:
Policyholder contract deposits	$	(445	)	$	(429	)	$	–		$	(44	)	$	–		$	–		$	(918	)	$	508
Derivative liabilities, net:
Interest rate contracts		732			46			–			(2	)		30			(21	)		785			(90	)
Foreign exchange contracts		16			(11	)		–			(5	)		2			–			2			1
Equity contracts		22			(16	)		–			41			(7	)		(12	)		28			(15	)
Commodity contracts		23			1			–			(22	)		–			–			2			(1	)
Credit contracts		(3,798	)		332			–			193			–			–			(3,273	)		493
Other contracts		(112	)		(14	)		(51	)		74			(30	)		166			33			(98	)

Total derivatives liabilities, net		(3,117	)		338			(51	)		279			(5	)		133			(2,423	)		290

Long-term debt(b)		(982	)		(60	)		–			555			(21	)		–			(508	)		(135	)

Total	$	(4,544	)	$	(151	)	$	(51	)	$	790		$	(26	)	$	133		$	(3,849	)	$	663

(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



December 31, 2012
Bonds available for sale	$	906		$	(395	)	$	215		$	726
Bond trading securities		3,303			–			526			3,829
Equity securities		–			39			–			39
Other invested assets		54			(210	)		61			(95	)
Policyholder contract deposits		–			(275	)		–			(275	)
Derivative liabilities, net		3			26			537			566
Other long-term debt		–			–			(411	)		(411	)

December 31, 2011
Bonds available for sale	$	638		$	(717	)	$	15		$	(64	)
Bond trading securities		(634	)		4			35			(595	)
Equity securities		–			27			–			27
Other invested assets		23			(84	)		51			(10	)
Policyholder contract deposits		–			(499	)		70			(429	)
Derivative liabilities, net		2			13			323			338
Other long-term debt		–			–			(60	)		(60	)

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




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

December 31, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	477	$	(219	)	$	(174	)	$	84
Non-U.S. governments		5		(3	)		(1	)		1
Corporate debt		283		(75	)		(184	)		24
RMBS		2,308		(723	)		(1,901	)		(316	)
CMBS		1,137		(318	)		(183	)		636
CDO/ABS		1,120		(4	)		(1,106	)		10

Total bonds available for sale		5,330		(1,342	)		(3,549	)		439

Bond trading securities:
Corporate debt		–		–			(7	)		(7	)
RMBS		–		(45	)		(64	)		(109	)
CMBS		225		(106	)		(278	)		(159	)
CDO/ABS(b)		7,382		(21	)		(11,329	)		(3,968	)

Total bond trading securities		7,607		(172	)		(11,678	)		(4,243	)

Equity securities		67		(56	)		(80	)		(69	)
Mortgage and other loans receivable		–		–			(1	)		(1	)
Other invested assets		900		(100	)		(1,057	)		(257	)

Total assets	$	13,904	$	(1,670	)	$	(16,365	)	$	(4,131	)

Liabilities:
Policyholder contract deposits	$	–	$	(25	)	$	33		$	8
Derivative liabilities, net		11		(2	)		612			621
Other long-term debt(c)		–		–			242			242

Total liabilities	$	11	$	(27	)	$	887		$	871

December 31, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	305	$	(4	)	$	(5	)	$	296
Non-U.S. governments		4		(2	)		3			5
Corporate debt		497		(27	)		(299	)		171
RMBS		4,932		(205	)		(1,495	)		3,232
CMBS		470		(34	)		(229	)		207
CDO/ABS		1,067		(1	)		(1,498	)		(432	)

Total bonds available for sale		7,275		(273	)		(3,523	)		3,479

Bond trading securities:
Corporate debt		–		–			(11	)		(11	)
RMBS		305		(1	)		(65	)		239
CMBS		221		(207	)		(109	)		(95	)
CDO/ABS		331		(304	)		(350	)		(323	)

Total bond trading securities		857		(512	)		(535	)		(190	)

Equity securities		–		(31	)		(17	)		(48	)
Mortgage and other loans receivable		–		–			1			1
Other invested assets		718		(296	)		(1,161	)		(739	)

Total assets	$	8,850	$	(1,112	)	$	(5,235	)	$	2,503

Liabilities:
Policyholder contract deposits	$	–	$	(70	)	$	26		$	(44	)
Derivative liabilities, net		43		–			236			279
Other long-term debt(c)		–		–			555			555

Total liabilities	$	43	$	(70	)	$	817		$	790

(a) There were no issuances during year ended December 31, 2012.

(b) Includes $7.1 billion of securities purchased through the FRBNY's auction of 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 December 31, 2012 and 2011 may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable inputs (e.g., changes in unobservable long-dated volatilities).

Transfers of Level 3 Assets and Liabilities

We 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 $143 million of net losses related to assets and liabilities transferred into Level 3 during 2012, and includes $92 million of net gains related to assets and liabilities transferred out of Level 3 during 2012.

Transfers of Level 3 Assets

During the year ended December 31, 2012, transfers into Level 3 assets included certain RMBS, CMBS, CDO/ABS, private placement corporate debt and certain private equity funds and hedge funds. Transfers of certain RMBS and certain CDO/ABS into Level 3 assets were related to decreased observations of market transactions and price information for those securities. The transfers of investments in certain other RMBS and CMBS into Level 3 assets were due to a decrease in market transparency, downward credit migration and an overall increase in price disparity for certain individual security types. Transfers of private placement corporate debt and certain other ABS into Level 3 assets were primarily the result of limited market pricing information that required us to determine fair value for these securities based on inputs that are adjusted to better reflect our own assumptions regarding the characteristics of a specific security or associated market liquidity. Certain private equity fund and hedge fund investments were also 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 our ownership and the lack of ability to exercise more than minor 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 assets 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 our ownership interest. During the year ended December 31, 2012, transfers out of Level 3 assets primarily related to certain RMBS, CMBS, ABS, investments in private placement corporate debt and private equity funds and hedge funds. Transfers of certain RMBS out of Level 3 assets were based on consideration of the market liquidity as well as related transparency of pricing and associated observable inputs for these investments. Transfers of investments in certain CMBS out of Level 3 were due to an increase in market transparency, positive credit migration and an overall improvement in price comparability for certain individual security types. Transfers of ABS and private placement corporate debt out of Level 3 assets were primarily the result of using observable pricing information that reflects the fair value of those securities without the need for adjustment based on our 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 certain fund investments becoming subject to the equity method of accounting based on our level of influence over the respective investments, resulted in the transfer of certain hedge fund and private equity fund investments out of Level 3.

Transfers of Level 3 Liabilities

Because we present carrying values of our derivative positions on a net basis in the table above, transfers into Level 3 liabilities for the year ended December 31, 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 year ended December 31, 2012, certain notes payable were transferred out of Level 3 liabilities 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 for the year ended December 31, 2012.

We use 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.

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 us, 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 us, balances shown below may not equal total amounts reported for such Level 3 assets and liabilities:




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

Assets:
Corporate debt	$	775	Discounted cash flow	Yield(b)	0.08% - 6.55% (3.31%)
RMBS		10,650	Discounted cash flow	Constant prepayment rate(c)	0.00% - 10.76% (5.03%)
				Loss severity(c)	43.70% - 78.72% (61.21%)
				Constant default rate(c)	4.21% - 13.30% (8.75%)
				Yield(c)	2.23% - 9.42% (5.82%)
Certain CDO/ABS(d)		7,844	Discounted cash flow	Constant prepayment rate(c)	0.00% - 32.25% (11.82%)
				Loss severity(c)	0.00% - 29.38% (6.36%)
				Constant default rate(c)	0.00% - 4.05% (1.18%)
				Yield(c)	5.41% - 10.67% (8.04%)
Commercial mortgage backed securities		3,251	Discounted cash flow	Yield(b)	0.00% - 19.95% (7.76%)
CDO/ABS – Direct			Binomial Expansion	Recovery rate(b)	3% - 63% (27%)
Investment Book		1,205	Technique (BET)	Diversity score(b)	4 - 44 (13)
				Weighted average life(b)	1.27 - 9.11 years (4.91 years)

Liabilities:
Policyholder contract deposits – GMWB		1,257	Discounted cash flow	Equity implied volatility(b)	6.0% - 39.0%
				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		1,436	BET	Recovery rates(b)	3% - 37% (17%)
				Diversity score(b)	9 - 38 (14)
				Weighted average life(b)	5.10 - 8.45 years (5.75 years)

(a) The unobservable inputs and ranges for the constant prepayment rate, loss severity and constant default rate relate to each of the individual underlying mortgage loans that comprise the entire portfolio of securities in the RMBS and CDO securitization vehicles and not necessarily to the securitization vehicle bonds (tranches) purchased by us. The ranges of these inputs do not directly correlate to changes in the fair values of the tranches purchased by us because there are other factors relevant to the specific tranches owned by us 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 we believe would be used by market participants when valuing these assets and liabilities.

(d) Yield was the only input available for $6.6 billion of total fair value at December 31, 2012.

The ranges of reported inputs for Corporate debt, RMBS, CDO/ABS, and 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 our risk management practices that might offset risks inherent in these investments.

Sensitivity to Changes in Unobservable Inputs

We consider unobservable inputs to be those for which market data is not available and that are developed using the best information available to us 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 RMBS 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 CMBS 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 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 volatility 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.

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 our 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 basis, we use the net asset value per share as a practical expedient to measure fair value.




		December 31, 2012				December 31, 2011
(in millions)	Investment Category Includes	Fair Value Using Net Asset Value Per Share (or its equivalent)		Unfunded Commitments		Fair Value Using Net Asset Value Per Share (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	$	2,549	$	659	$	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		179		25		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		163		16		316		39
Distressed	Securities of companies that are already in default, under bankruptcy protection, or troubled		87		21		182		42
Other	Real estate, energy, multi-strategy, mezzanine, and industry-focused strategies		255		152		252		98

Total private equity funds			3,233		873		4,100		1,181

Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		747		2		774		2
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,091		–		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		238		–		173		–
Distressed	Securities of companies that are already in default, under bankruptcy protection or troubled		316		–		272		10
Other	Non-U.S. companies, futures and commodities, relative value, and multi-strategy and industry-focused strategies		416		–		627		–

Total hedge funds			2,808		2		2,773		12

Total		$	6,041	$	875	$	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 December 31, 2012, assuming average original expected lives of 10 years for the funds, 41 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 3 percent between seven and 10 years.

At December 31, 2012, hedge fund investments included above are redeemable monthly (15 percent), quarterly (34 percent), semi-annually (28 percent) and annually (23 percent), with redemption notices ranging from one day to 180 days. More than 69 percent of these hedge fund investments require redemption notices of less than 90 days. Investments representing approximately 74 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 have pre-defined end dates and are generally expected to be lifted by the end of 2015. The restrictions that do not have stated end dates were primarily put in place prior to 2009. 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

Under the fair value option, we may elect to measure at fair value financial assets and financial liabilities that are not otherwise required to be carried at fair value. Subsequent changes in fair value for designated items are reported in earnings. We elect the fair value option for certain hybrid securities given the complexity of bifurcating the economic components associated with the embedded derivatives. Refer to Note 12 for additional information related to embedded derivatives.

Additionally, beginning in the third quarter of 2012 we elected the fair value option for investments in certain private equity funds, hedge funds and other alternative investments when such investments are eligible for this election. We believe this measurement basis is consistent with the applicable accounting guidance used by the respective investment company funds themselves. Refer to Note 7 herein for additional information.

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




	Gain (Loss)
Years Ended December 31, (in millions)	Gain (Loss)
Years Ended December 31, (in millions)	2012			2011			2010

Assets:
Mortgage and other loans receivable	$	47		$	11		$	53
Bonds and equity securities		2,339			1,273			2,060
Trading – ML II interest		246			42			513
Trading – ML III interest		2,888			(646	)		1,792
Retained interest in AIA		2,069			1,289			(638	)
Other, including Short-term investments		56			35			(39	)

Liabilities:
Policyholder contract deposits		–			–			(320	)
Long-term debt^(a)		(681	)		(966	)		(1,595	)
Other liabilities		(33	)		(67	)		(8	)

Total gain^(b)	$	6,931		$	971		$	1,818

(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, we recognized gains of $586 million, $1.3 billion and $4.9 billion for the years ended 2012, 2011 and 2010, 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.

Interest income and dividend income on assets elected under the fair value option are recognized and included in Net Investment Income in the Consolidated Statement of Operations with the exception of DIB-related activity, which is included in Other income. Interest on liabilities for which we elected the fair value option is recognized in interest expense in the Consolidated Statement of Operations. See Note 7 herein for additional information about our policies for recognition, measurement, and disclosure of interest and dividend income and interest expense.

During 2012, 2011 and 2010, we recognized losses of $641 million, gains of $420 million and losses of $779 million, respectively, attributable to the observable effect of changes in credit spreads on our own liabilities for which the fair value option was elected. We calculate the effect of these credit spread changes using discounted cash flow techniques that incorporate current market interest rates, our 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:




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

Assets:
Mortgage and other loans receivable	$	134	$	141	$	(7	)	$	107	$	150	$	(43	)
Liabilities:
Long-term debt*	$	8,055	$	5,705	$	2,350		$	10,766	$	8,624	$	2,142

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

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

Fair Value Measurements on a Non-Recurring Basis

We measure the fair value of certain assets on a non-recurring basis, generally quarterly, annually or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include cost and equity-method investments, life settlement contracts, collateral securing foreclosed loans and real estate and other fixed assets, goodwill and other intangible assets. See Note 7 herein for additional information about how we test 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								December 31,
(in millions)	Level 1		Level 2		Level 3		Total		2012		2011		2010

December 31, 2012
Investment real estate	$	–	$	–	$	–	$	–	$	–	$	18	$	604
Other investments		–		–		2,062		2,062		460		639		323
Aircraft(a)		–		–		–		–		–		1,693		1,614
Other assets		–		3		18		21		11		3		5

Total	$	–	$	3	$	2,080	$	2,083	$	471	$	2,353	$	2,546

December 31, 2011
Investment real estate	$	–	$	–	$	457	$	457
Other investments		–		–		2,199		2,199
Aircraft(b)		–		–		1,683		1,683
Other assets		–		–		4		4

Total	$	–	$	–	$	4,343	$	4,343

(a) See Note 4 for a discussion on the ILFC Transaction.

(b) Fair value of Aircraft includes aircraft impairment charges.

Fair Value Information about Financial Instruments Not Measured at Fair Value

Information regarding the estimation of fair value for financial instruments not carried at fair value (excluding insurance contracts and lease contracts) is discussed below:

•

Mortgage and other loans receivable:  Fair values of loans on real estate and other loans receivable were estimated for disclosure purposes using discounted cash flow calculations based upon discount rates that we believe market participants would use in determining the price that they would pay for such assets. For certain loans, our current incremental lending rates for similar types of loans is used as the discount rate, as we believe that this rate approximates the rates that market participants would use. The fair values of policy loans are generally estimated based on unpaid principal amount as of each reporting date or, in some cases, based on the present value of the loans using a discounted cash flow model. No consideration is given to credit risk as policy loans are effectively collateralized by the cash surrender value of the policies.

•

Other Invested Assets:  The majority of Other invested assets that are not measured at fair value represent investments in life settlement contracts. The fair value of life settlement contracts included in Other invested assets is determined on a discounted cash flow basis, incorporating current life expectancy assumptions.

•

Cash and short-term investments:  The carrying values of these assets approximate fair values because of the relatively short period of time between origination and expected realization, and their limited exposure to credit risk.

•

Policyholder contract deposits associated with investment-type contracts:  Fair values for policyholder contract deposits associated with investment-type contracts not accounted for at fair value were estimated using discounted cash flow calculations based upon interest rates currently being offered for similar contracts with maturities consistent with those remaining for the contracts being valued. Where no similar contracts are being offered, the discount rate is the appropriate tenor swap rate (if available) or current risk-free interest rate consistent with the currency in which the cash flows are denominated.

•

Long-term debt:  Fair values of these obligations were determined by reference to quoted market prices, where available and appropriate, or discounted cash flow calculations based upon our current market-observable implicit-credit-spread rates for similar types of borrowings with maturities consistent with those remaining for the debt being valued.

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

	Estimated Fair Value


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

December 31, 2012
Assets:
Mortgage and other loans receivable	$	–	$	823	$	19,396	$	20,219	$	19,348
Other invested assets		–		237		3,521		3,758		4,932
Short-term investments		–		20,752		–		20,752		20,752
Cash		1,151		–		–		1,151		1,151
Liabilities:
Policyholder contract deposits associated with investment-type contracts		–		245		123,860		124,105		105,979
Other liabilities		–		2,205		818		3,023		3,024
Long-term debt^*		–		43,966		1,925		45,891		40,445

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

* Excludes Long-term debt of ILFC reclassed to Liabilities held for sale on the Consolidated Balance Sheet.

- 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

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

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

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+ Details

INVESTMENTS

12 Months Ended

Dec. 31, 2012

INVESTMENTS

INVESTMENTS

7. INVESTMENTS

Fixed Maturity and Equity Securities

Bonds held to maturity are carried at amortized cost when we have the ability and positive intent to hold these securities until maturity. When we do not have the ability or positive intent to hold bonds until maturity, these securities are classified as available for sale or as trading and are carried at fair value. None of our fixed maturity securities met the criteria for held to maturity classification at December 31, 2012 or 2011.

Fixed maturity and equity securities classified as available for sale or as trading are carried at fair value. Unrealized gains and losses from available for sale investments in fixed maturity and equity securities are reported as a separate component of Accumulated other comprehensive income (loss), net of deferred acquisition costs and deferred income taxes, in Total AIG shareholders' equity. Realized and unrealized gains and losses from fixed maturity and equity securities classified as trading are reflected in Net investment income (for insurance subsidiaries) or Other income (for DIB). Investments in fixed maturity and equity securities are recorded on a trade-date basis.

Premiums and discounts arising from the purchase of bonds classified as available for sale are treated as yield adjustments over their estimated holding periods, until maturity, or call date, if applicable. For investments in certain RMBS, CMBS and CDO/ABS, (collectively, structured securities), recognized yields are updated based on current information regarding the timing and amount of expected undiscounted future cash flows. For high credit quality structured securities, effective yields are recalculated based on actual payments received and updated prepayment expectations, and the amortized cost is adjusted to the amount that would have existed had the new effective yield been applied since acquisition with a corresponding charge or credit to net investment income. For structured securities that are not high credit quality, effective yields are recalculated and adjusted prospectively based on changes in expected undiscounted future cash flows. For purchased credit impaired (PCI) securities, at acquisition, the difference between the undiscounted expected future cash flows and the recorded investment in the securities represents the initial accretable yield, which is to be accreted into net investment income over the securities' remaining lives on a level-yield basis. Subsequently, effective yields recognized on PCI securities are recalculated and adjusted prospectively to reflect changes in the contractual benchmark interest rates on variable rate securities and any significant increases in undiscounted expected future cash flows arising due to reasons other than interest rate changes.

Trading securities include the investment portfolio of the DIB. Trading securities for the DIB are held to meet short-term investment objectives and to economically hedge other securities.

Securities Available for Sale

The following table presents the amortized cost or cost and fair value of our 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)



December 31, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	3,161	$	323	$	(1	)	$	3,483	$	–
Obligations of states, municipalities and political subdivisions		33,042		2,685		(22	)		35,705		2
Non-U.S. governments		25,449		1,395		(44	)		26,800		–
Corporate debt		135,728		15,848		(464	)		151,112		115
Mortgage-backed, asset-backed and collateralized:
RMBS		31,330		3,379		(317	)		34,392		1,330
CMBS		9,699		811		(376	)		10,134		(54	)
CDO/ABS		7,740		765		(172	)		8,333		57

Total mortgage-backed, asset-backed and collateralized		48,769		4,955		(865	)		52,859		1,333

Total bonds available for sale(b)		246,149		25,206		(1,396	)		269,959		1,450

Equity securities available for sale:
Common stock		1,492		1,574		(37	)		3,029		–
Preferred stock		55		23		–			78		–
Mutual funds		93		12		–			105		–

Total equity securities available for sale		1,640		1,609		(37	)		3,212		–

Total	$	247,789	$	26,815	$	(1,433	)	$	273,171	$	1,450

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		–

Total	$	252,590	$	20,026	$	(5,011	)	$	267,605	$	(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 December 31, 2012 and December 31, 2011, bonds available for sale held by us that were below investment grade or not rated totaled $29.6 billion and $24.2 billion, respectively.

Securities Available for Sale in a Loss Position

The following table summarizes the fair value and gross unrealized losses on our 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

December 31, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	153	$	1	$	–	$	–	$	153	$	1
Obligations of states, municipalities and political subdivisions		692		11		114		11		806		22
Non-U.S. governments		1,555		19		442		25		1,997		44
Corporate debt		8,483		201		3,229		263		11,712		464
RMBS		597		28		1,661		289		2,258		317
CMBS		406		11		1,595		365		2,001		376
CDO/ABS		391		1		1,510		171		1,901		172

Total bonds available for sale		12,277		272		8,551		1,124		20,828		1,396

Equity securities available for sale:
Common stock		247		36		18		1		265		37
Preferred stock		–		–		–		–		–		–
Mutual funds		3		–		–		–		3		–

Total equity securities available for sale		250		36		18		1		268		37

Total	$	12,527	$	308	$	8,569	$	1,125	$	21,096	$	1,433

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 December 31, 2012, we held 3,637 and 198 individual fixed maturity and equity securities, respectively, that were in an unrealized loss position, of which 1,385 individual fixed maturity securities were in a continuous unrealized loss position for longer than 12 months. We did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31, 2012, because we neither intend to sell the securities nor do we 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, we expect to recover the entire amortized cost basis of these securities. In performing this evaluation, we considered the recovery periods for securities in previous periods of broad market declines. For fixed maturity securities with significant declines, we 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 Securities Available for Sale				Fixed Maturity Securities in a Loss Position Available for Sale


December 31, 2012 (in millions)	Total Fixed Maturity Securities Available for Sale
December 31, 2012 (in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in one year or less	$	11,801	$	12,001	$	717	$	713
Due after one year through five years		51,646		54,918		3,239		3,162
Due after five years through ten years		72,091		79,531		4,641		4,510
Due after ten years		61,842		70,650		6,602		6,283
Mortgage-backed, asset-backed and collateralized		48,769		52,859		7,025		6,160

Total	$	246,149	$	269,959	$	22,224	$	20,828

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 our available for sale securities:




	Years Ended December 31,
	2012				2011				2010
(in millions)	Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses

Fixed maturity securities	$	2,778	$	171	$	2,042	$	129	$	2,138	$	292
Equity securities		515		31		199		35		811		86

Total	$	3,293	$	202	$	2,241	$	164	$	2,949	$	378

For the year ended December 31, 2012, 2011 and 2010, the aggregate fair value of available for sale securities sold was $40.3 billion, $44.0 billion and $56.0 billion, which resulted in net realized capital gains of $3.1 billion, $2.1 billion and $2.6 billion, respectively.

Trading Securities

The following table presents the fair value of our trading securities:




	December 31, 2012					December 31, 2011
(in millions)	Fair Value		Percent of Total			Fair Value		Percent of Total

Fixed maturities:
U.S. government and government sponsored entities	$	6,794		27	%	$	6,462		26	%
Obligations of states, territories and political subdivisions		–		–			257		1
Non-U.S. governments		2		–			35		–
Corporate debt		1,320		5			816		3
Mortgage-backed, asset-backed and collateralized:
RMBS		1,727		7			1,648		7
CMBS		2,236		9			1,837		8
CDO/ABS and other collateralized^*		12,497		50			6,324		26

Total mortgage-backed, asset-backed and collateralized		16,460		66			9,809		41
ML II		–		–			1,321		5
ML III		8		–			5,664		23

Total fixed maturities		24,584		98			24,364		99

Equity securities		662		2			125		1

Total	$	25,246		100	%	$	24,489		100	%

* Includes $0.9 billion of U.S. Government agency backed ABS.

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 2012, we received total payments of approximately $8.5 billion, which included contractual and additional distributions and our original $5.0 billion equity interest in ML III.

In 2012, we purchased $7.1 billion of securities through the FRBNY's auction of ML III assets.

Other Invested Assets

The following table summarizes the carrying values of other invested assets:

December 31, (in millions)	2012		2011




Alternative investments^(a)	$	18,990	$	18,793
Mutual funds		128		258
Investment real estate^(b)		3,195		2,778
Aircraft asset investments^(c)		984		1,100
Life settlement contracts		4,357		4,006
Retained interest in AIA		–		12,367
All other investments		1,463		1,442

Total	$	29,117	$	40,744

(a) Includes hedge funds, private equity funds, affordable housing partnerships and other investment partnerships.

(b) Net of accumulated depreciation of $469 million and $428 million in 2012 and 2011, respectively.

Other Invested Assets Carried at Fair Value

Certain hedge funds, private equity funds, affordable housing partnerships and other investment partnerships for which we have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income with the exception of DIB investments, for which such changes are reported in Other income. Other investments in hedge funds, private equity funds, affordable housing partnerships and other investment partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influence over the respective partnerships are reported at fair value with changes in fair value recognized as a component of Accumulated other comprehensive income (loss). These investments are subject to other-than-temporary impairment evaluation (see below for discussion on evaluating equity investments for other-than-temporary impairment). The gross unrealized loss recorded in Accumulated other comprehensive income on such investments was $68 million and $269 million at December 31, 2012 and 2011, respectively, the majority of which pertains to investments in private equity funds and hedge funds that have been in continuous unrealized loss position for less than 12 months.

Other Invested Assets – Equity Method Investments

We account for hedge funds, private equity funds, affordable housing partnerships and other investment partnerships using the equity method of accounting unless our interest is so minor that we may have virtually no influence over partnership operating and financial policies. Under the equity method of accounting, our carrying value generally is our share of the net asset value of the funds or the partnerships, and changes in our share of the net asset values are recorded in Net investment income with the exception of DIB investments, for which such changes are reported in Other income. In applying the equity method of accounting, we consistently use the most recently available financial information provided by the general partner or manager of each of these investments, which is one to three months prior to the end of our reporting period. The financial statements of these investees are generally audited annually.

Direct private equity investments entered into for strategic purposes and not solely for capital appreciation or for income generation are also accounted for under the equity method. Dividends received from our other strategic investments were $8 million, $17 million and $25 million for the years ended December 31, 2012, 2011, and 2010, respectively. The undistributed earnings of other strategic investments in which our ownership interest is less than 50 percent were $51 million, $9 million and $8 million at December 31, 2012, 2011, and 2010, respectively.

On October 29, 2010, we completed an IPO of 8.08 billion ordinary shares of AIA for aggregate gross proceeds of approximately $20.5 billion. Upon completion of the IPO, we owned 33 percent of AIA's outstanding shares. Accordingly, we deconsolidated AIA and recorded a pre-tax gain of $16.3 billion in 2010. On March 7, 2012, we sold approximately 1.72 billion ordinary shares of AIA for gross proceeds of approximately $6.0 billion. On September 11, 2012, we sold approximately 600 million ordinary shares of AIA for gross proceeds of approximately $2.0 billion. On December 20, 2012, we sold approximately 1.65 billion ordinary shares of AIA for gross proceeds of approximately $6.5 billion. As a result of these sales, we retained no interest in AIA as of December 31, 2012. We accounted for our investment in AIA under the fair value option with gains and losses recorded in Net investment income. We recorded fair value option gains from our investment in AIA of $2.1 billion and $1.3 billion for the years ended December 31, 2012 and 2011, and a fair value option loss of $0.6 billion for the year ended December 31, 2010. At December 31, 2011, the fair value of our 33 percent retained interest in AIA was approximately $12.4 billion, and was included in Other invested assets.

The following table presents the carrying value and ownership percentage of AIA and all other equity method investments:

	2012				2011



(in millions, except percentages)	Carrying Value		Ownership Percentage		Carrying Value		Ownership Percentage

AIA	$	–	–	%	$	12,367		33	%
All other equity method investments		11,544	Various			9,026		Various

Total	$	11,544			$	21,393

Summarized Financial Information of AIA

The following is summarized financial information of AIA:

Year Ended December 31, (in millions)	2011



Operating results:
Total revenues	$	13,802
Total expenses		(12,436	)

Net income	$	1,366

At December 31, (in millions)	2011



Balance sheet:
Total assets	$	112,673
Total liabilities	$	(90,894	)

Substantially all of AIA's assets consist of financial investments and deferred acquisition and origination costs and substantially all of its liabilities consist of insurance- and investment-contract-related liabilities.

Summarized financial information for AIA was as of and for the year ended 2011. AIA was consolidated through October 28, 2010. As a result, comparable amounts for 2010 are not being presented.

Summarized Financial Information of Other Equity Method Investees

The following is the aggregated summarized financial information of our other equity method investees, including those for which the fair value option has been elected:

Years Ended December 31, (in millions)	2012			2011			2010




Operating results:
Total revenues	$	9,438		$	12,749		$	14,079
Total expenses		(5,183	)		(3,530	)		(3,812	)

Net income	$	4,255		$	9,219		$	10,267

At December 31, (in millions)	2012			2011




Balance sheet:
Total assets	$	139,681		$	95,749
Total liabilities	$	(26,529	)	$	(22,379	)

Summarized financial information for these equity method investees may be presented on a lag, due to the unavailability of information for the investees at the respective balance sheet date, and is included for the periods in which we held an equity method ownership interest. Summarized financial information for investees of entities that have been divested or are held-for-sale is not included in the table above.

Other Investments

Also included in Other invested assets are real estate held for investment and aircraft asset investments held by non-Aircraft Leasing subsidiaries. These investments are reported at cost, less depreciation and subject to impairment review, as discussed below.

Investments in Life Settlement Contracts

Life settlement contracts are accounted for under the investment method. Under the investment method, we recognize our initial investment in life settlement contracts at the transaction price plus all initial direct external costs. Continuing costs to keep the policy in force, primarily life insurance premiums, increase the carrying value of the investment. We recognize income on individual life settlement contracts when the insured dies, at an amount equal to the excess of the contract proceeds over the carrying amount of the contract at that time. Contracts are reviewed for indications that the expected future proceeds from the contract would not be sufficient to recover our estimated future carrying amount of the contract, which is the current carrying amount for the contract plus anticipated undiscounted future premiums and other capitalizable future costs. Any such contracts identified are written down to their estimated fair value.

During 2012, 2011 and 2010, income recognized on life settlement contracts was $253 million, $320 million and $213 million, respectively, and is included in Net investment income in the Consolidated Statement of Operations. Our life settlement contracts reported above are monitored for impairment on a contract-by-contract basis quarterly. Impairment charges on life settlement contracts included in net realized capital gains (losses) totaled $309 million, $312 million and $74 million in 2012, 2011, and 2010 respectively.

The following table presents further information regarding life settlement contracts:

	December 31, 2012


(dollars in millions)	Number of Contracts		Carrying Value		Face Value (Death Benefits)

Remaining Life Expectancy of Insureds:
0 - 1 year		1	$	3	$	8
1 - 2 years		29		19		35
2 - 3 years		90		138		269
3 - 4 years		234		250		554
4 - 5 years		296		283		723
Thereafter		5,023		3,509		16,067

Total		5,673	$	4,202	$	17,656

At December 31, 2012, the anticipated life insurance premiums required to keep the life settlement contracts in force, payable in the next 12 months ending December 31, 2013 and the four succeeding years ending December 31, 2017 are $546 million, $555 million, $562 million, $554 million and $555 million, respectively.

Net Investment Income

Net investment income represents income primarily from the following sources in our insurance operations and AIG Parent:

•: Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable.
•: Dividend income from common and preferred stock and distributions from other investments.
•: Realized and unrealized gains and losses from investments in trading securities accounted for at fair value and investments for which the fair value option has been elected.
•: Earnings from private equity funds and hedge fund investments accounted for under the equity method.
•: The difference between the carrying amount of a life settlement contract and the life insurance proceeds of the underlying life insurance policy recorded in income upon the death of the insured.
•: Changes in the fair values of our interests in ML II, AIA and MetLife securities prior to sale and change in the fair value of our interests in ML III prior to the FRBNY liquidation of ML III assets.

The following table presents the components of Net investment income:




Years Ended December 31, (in millions)	2012		2011			2010

Fixed maturity securities, including short-term investments	$	12,592	$	11,814		$	14,445
Change in fair value of ML II		246		42			513
Change in fair value of ML III		2,888		(646	)		1,792
Change in fair value of AIA securities including realized gain in 2012		2,069		1,289			(638	)
Change in the fair value of MetLife securities prior to their sale		–		(157	)		665
Equity securities		162		92			234
Interest on mortgage and other loans		1,083		1,065			1,268
Alternative investments^*		1,769		1,622			1,957
Real estate		127		107			126
Other investments		11		36			177

Total investment income before policyholder income and trading gains		20,947		15,264			20,539
Policyholder investment income and trading gains		–		–			886

Total investment income		20,947		15,264			21,425
Investment expenses		604		509			491

Net investment income	$	20,343	$	14,755		$	20,934

* Includes hedge funds, private equity funds, affordable housing partnerships and other investment partnerships.

Net Realized Capital Gains and Losses

Net realized capital gains and losses are determined by specific identification. The net realized capital gains and losses are generated primarily from the following sources:

•: Sales of fixed maturity securities and equity securities (except trading securities accounted for at fair value and investments for which the fair value option has been elected), real estate, investments in private equity funds and hedge funds and other types of investments.
•: Reductions to the cost basis of fixed maturity securities and equity securities (except trading securities accounted for at fair value and investments for which the fair value option has been elected) and other invested assets for other-than-temporary impairments.
•: Changes in fair value of derivatives except for (1) those instruments at AIGFP that are not intermediated on behalf of other AIG subsidiaries and (2) those instruments that are designated as hedging instruments when the change in the fair value of the hedged item is not reported in Net realized capital gains (losses Exchange gains and losses resulting from foreign currency transactions.

The following table presents the components of Net realized capital gains (losses) and the increase (decrease) in unrealized appreciation of our available for sale securities:




Years Ended December 31, (in millions)	2012			2011			2010

Sales of fixed maturity securities	$	2,607		$	1,913		$	1,846
Sales of equity securities		484			164			725
Other-than-temporary impairments:
Severity		(44	)		(51	)		(73	)
Change in intent		(62	)		(12	)		(441	)
Foreign currency declines		(8	)		(32	)		(63	)
Issuer-specific credit events		(1,048	)		(1,165	)		(2,457	)
Adverse projected cash flows		(5	)		(20	)		(5	)
Provision for loan losses		104			48			(304	)
Change in the fair value of MetLife securities prior to their sale		–			(191	)		315
Foreign exchange transactions		(234	)		(93	)		191
Derivative instruments		(684	)		448			(416	)
Other		(181	)		(308	)		(34	)

Net realized capital gains (losses)	$	929		$	701		$	(716	)

Increase in unrealized appreciation of investments:
Fixed maturities	$	10,599		$	5,578		$	8,677
Equity securities		(232	)		(206	)		473
Other investments		343			146			156

Increase in unrealized appreciation^*	$	10,710		$	5,518		$	9,306

* Excludes net unrealized gains attributable to businesses held for sale.

Evaluating Investments for Other-Than-Temporary Impairments

Fixed Maturity Securities

If we intend to sell a fixed maturity security or it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis and the fair value of the security is below amortized cost, an other-than-temporary impairment has occurred and the amortized cost is written down to current fair value, with a corresponding charge to earnings. When assessing our intent to sell a fixed maturity security, or whether it is more likely than not that we will be required to sell a fixed maturity security before recovery of its amortized cost basis, management evaluates relevant facts and circumstances including, but not limited to, decisions to reposition our investment portfolio, sales of securities to meet cash flow needs and sales of securities to take advantage of favorable pricing.

For all other fixed maturity securities for which a credit impairment has occurred, the amortized cost is written down to the estimated recovery value with a corresponding charge to earnings. The estimated recovery value is the present value of cash flows expected to be collected, as determined by management. The difference between fair value and amortized cost that is not related to a credit impairment is recognized in unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken (a separate component of Accumulated other comprehensive income (loss)).

When estimating future cash flows for a structured fixed maturity security (e.g., RMBS, CMBS, CDO, ABS) management considers historical performance of underlying assets and available market information as well as bond-specific structural considerations, such as credit enhancement and priority of payment structure of the security. In addition, the process of estimating future cash flows includes, but is not limited to, the following critical inputs, which vary by asset class:

•: Current delinquency rates;
•: Expected default rates and the timing of such defaults;
•: Loss severity and the timing of any recovery; and
•: Expected prepayment speeds.

For corporate, municipal and sovereign fixed maturity securities determined to be credit impaired, management considers the fair value as the recovery value when available information does not indicate that another value is more relevant or reliable. When management identifies information that supports a recovery value other than the fair value, the determination of a recovery value considers scenarios specific to the issuer and the security, and may be based upon estimates of outcomes of corporate restructurings, political and macroeconomic factors, stability and financial strength of the issuer, the value of any secondary sources of repayment and the disposition of assets.

We consider severe price declines in our assessment of potential credit impairments. We may also modify our modeled outputs for certain securities when we determine that price declines are indicative of factors not comprehended by the cash flow models.

In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed maturity securities that is not foreign exchange related, we prospectively accrete into earnings the difference between the new amortized cost and the expected undiscounted recovery value over the remaining expected holding period of the security.

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 us, and includes structured, corporate, municipal and sovereign fixed maturity securities:




Years Ended December 31, (in millions)	2012			2011			2010

Balance, beginning of year	$	6,504		$	6,786		$	7,803
Increases due to:
Credit impairments on new securities subject to impairment losses		194			235			627
Additional credit impairments on previously impaired securities		483			735			1,294
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell		(1,105	)		(529	)		(1,039	)
Credit impaired securities for which there is a current intent or anticipated requirement to sell		(5	)		–			(503	)
Accretion on securities previously impaired due to credit^*		(915	)		(544	)		(332	)
Hybrid securities with embedded credit derivatives reclassified to Bond trading securities		–			(179	)		(748	)
Other		8			–			(316	)

Balance, end of year	$	5,164		$	6,504		$	6,786

* 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.

Equity Securities

We evaluate our available for sale equity securities, equity method and cost method investments for impairment by considering such securities as candidates for other-than-temporary impairment if they meet any of the following criteria:

•: the security has traded at a significant (25 percent or more) discount to cost for an extended period of time (nine consecutive months or longer);
•: a discrete credit event has occurred resulting in (i) the issuer defaulting on a material outstanding obligation; (ii) the issuer seeking protection from creditors under the bankruptcy laws or any similar laws intended for court-supervised reorganization of insolvent enterprises; or (iii) the issuer proposing a voluntary reorganization pursuant to which creditors are asked to exchange their claims for cash or securities having a fair value substantially lower than the par value of their claims; or
•: we have concluded that it may not realize a full recovery on its investment, regardless of the occurrence of one of the foregoing events.

The determination that an equity security is other-than-temporarily impaired requires the judgment of management and consideration of the fundamental condition of the issuer, its near-term prospects and all the relevant facts and circumstances. The above criteria also consider circumstances of a rapid and severe market valuation decline in which we could not reasonably assert that the impairment period would be temporary (severity losses).

Other Invested Assets

Our investments in private equity funds and hedge funds are evaluated for impairment similar to the evaluation of equity securities for impairments as discussed above. Such evaluation considers market conditions, events and volatility that may impact the recoverability of the underlying investments within these private equity funds and hedge funds and is based on the nature of the underlying investments and specific inherent risks. Such risks may evolve based on the nature of the underlying investments.

Our investments in life settlement contracts are monitored for impairment based on the underlying life insurance policies, with cash flows reported periodically. An investment in a life settlement contract is considered impaired if the undiscounted cash flows resulting from the expected proceeds from the insurance policy are less than the carrying amount of the investment plus anticipated continuing costs. If an impairment loss is recognized, the investment is written down to fair value. During 2011, we implemented an enhanced process in which updated medical information on individual insured lives is requested on a routine basis. In cases where updated information indicates that an individual's health has improved, an impairment loss may arise as a result of revised estimates of net cash flows from the related contract. We also revised the valuation table used to estimate future net cash flows. This had the general effect of decreasing the projected net cash flows on a number of contracts. These changes resulted in an increase in the number of life settlement contracts identified as potentially impaired.

Our investments in aircraft assets and real estate are periodically evaluated for recoverability whenever changes in circumstances indicate the carrying amount of an asset may be impaired. When impairment indicators are present, we compare expected investment cash flows to carrying value. When the expected cash flows are less than the carrying value, the investments are written down to fair value with a corresponding charge to earnings.

Purchased Credit Impaired (PCI) Securities

In 2011, we began purchasing certain RMBS securities that had experienced deterioration in credit quality since their issuance. We determined, based on our expectations as to the timing and amount of cash flows expected to be received, that it was probable at acquisition that we would not collect all contractually required payments for these PCI securities, including both principal and interest after 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 our 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 our 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 our PCI securities, which are included in bonds available for sale:

(in millions)	At Date of Acquisition



Contractually required payments (principal and interest)	$	18,708
Cash flows expected to be collected^*		14,626
Recorded investment in acquired securities		9,379

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




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

Outstanding principal balance	$	11,791	$	10,119
Amortized cost		7,718		7,006
Fair value		8,823		6,535

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




Years Ended December 31, (in millions)	2012			2011

Balance, beginning of year	$	4,135		$	–
Newly purchased PCI securities		1,620			3,943
Disposals		(298	)		–
Accretion		(672	)		(324	)
Effect of changes in interest rate indices		(213	)		(62	)
Net reclassification from non-accretable difference, including effects of prepayments		194			578

Balance, end of year	$	4,766		$	4,135

Pledged Investments

Secured Financing and Similar Arrangements

We enter into financing transactions whereby certain securities are transferred to financial institutions in exchange for cash or other liquid collateral. Securities transferred by us under these financing transactions may be sold or repledged by the counterparties. As collateral for the securities transferred by us, counterparties transfer assets to us, 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 we receive fixed maturity securities as collateral, we do 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, we and our counterparties are obligated to return the collateral provided and the securities transferred, respectively. We treat these transactions as secured financing arrangements.

Secured financing transactions also include securities sold under agreements to repurchase (repurchase agreements), in which we transfer securities in exchange for cash, with an agreement by us to repurchase the same or substantially similar securities. In the majority of these repurchase agreements, the securities transferred by us may be sold or repledged by the counterparties. Repurchase agreements entered into by the DIB are carried at fair value based on market-observable interest rates. All other repurchase agreements are recorded at their contracted repurchase amounts plus accrued interest.

Under the secured financing transactions described above, securities available for sale with a fair value of $8.2 billion and $2.3 billion at December 31, 2012 and December 31, 2011, respectively, and trading securities with a fair value of $3.0 billion and $2.8 billion at December 31, 2012 and December 31, 2011, respectively, were pledged to counterparties.

Prior to January 1, 2012, in the case of repurchase agreements where we 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), we accounted for the transaction as a sale of the security and reported the obligation to repurchase the security as a derivative contract. The fair value of securities transferred under repurchase agreements accounted for as sales was $2.1 billion at December 31, 2011. 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 December 31, 2012.

We also enter into agreements in which securities are purchased by us 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. These agreements are recorded at their contracted resale amounts plus accrued interest, other than those that are accounted for at fair value. Such agreements entered into by the DIB are carried at fair value based on market observable interest rates. In all reverse repurchase transactions, we take possession of or obtain a security interest in the related securities, and we have the right to sell or repledge this collateral received. The fair value of securities collateral pledged to us was $11.0 billion and $6.8 billion at December 31, 2012 and December 31, 2011, respectively, of which $33 million and $122 million was repledged by us.

Insurance – Statutory and Other Deposits

Total carrying values of cash and securities deposited by our insurance subsidiaries under requirements of regulatory authorities or other insurance-related arrangements, including certain annuity-related obligations and certain reinsurance agreements, were $8.9 billion and $9.8 billion at December 31, 2012 and 2011, respectively.

Other Pledges

Certain of our subsidiaries are members of Federal Home Loan Banks (FHLBs) and such membership requires the members to own stock in these FHLBs. These subsidiaries owned an aggregate of $84 million and $77 million of stock in FHLBs at December 31, 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, our subsidiaries have pledged securities available for sale with a fair value of $341 million at December 31, 2012, associated with advances from the FHLBs.

Certain GIAs have provisions that require collateral to be posted or payments to be made by us upon a downgrade of our 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 we could be required to make, depend 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 $4.4 billion and $5.1 billion at December 31, 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

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-Name Statement of Financial Accounting Standard (FAS)

-Number 115

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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.

+ Details

LENDING ACTIVITIES

12 Months Ended

Dec. 31, 2012

LENDING ACTIVITIES

LENDING ACTIVITIES

8. LENDING ACTIVITIES

Mortgage and other loans receivable include commercial mortgages, life insurance policy loans, commercial loans, other loans and notes receivable. Commercial mortgages, commercial loans, and other loans and notes receivable are carried at unpaid principal balances less credit allowances and plus or minus adjustments for the accretion or amortization of discount or premium. Interest income on such loans is accrued as earned.

Direct costs of originating commercial mortgages, commercial loans, and other loans and notes receivable, net of nonrefundable points and fees, are deferred and included in the carrying amount of the related receivables. The amount deferred is amortized to income as an adjustment to earnings using the interest method.

Life insurance policy loans are carried at unpaid principal amount. There is no allowance for policy loans because these loans serve to reduce the death benefit paid when the death claim is made and the balances are effectively collateralized by the cash surrender value of the policy.

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




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

Commercial mortgages^*	$	13,788		$	13,554
Life insurance policy loans		2,952			3,049
Commercial loans, other loans and notes receivable		3,147			3,626

Total mortgage and other loans receivable		19,887			20,229
Allowance for losses		(405	)		(740	)

Mortgage and other loans receivable, net	$	19,482		$	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 (22 percent and 15 percent, respectively, at December 31, 2012). Over 99 percent and 98 percent of the commercial mortgages were current as to payments of principal and interest at December 31, 2012 and 2011, respectively.

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

			Class


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

Credit Quality Indicator:
In good standing		998	$	1,549	$	4,698	$	2,640	$	1,654	$	1,153	$	1,671	$	13,365		97	%
Restructured^(a)		8		50		207		7		2		–		22		288		2
90 days or less delinquent		4		–		17		–		–		–		–		17		–
>90 days delinquent or in process of foreclosure		6		–		13		26		–		–		79		118		1

Total^(b)		1,016	$	1,599	$	4,935	$	2,673	$	1,656	$	1,153	$	1,772	$	13,788		100	%

Valuation allowance			$	5	$	74	$	19	$	19	$	1	$	41	$	159		1	%

(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below.

(b) Does not reflect valuation allowances.

Methodology Used to Estimate the Allowance for Credit Losses

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

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

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




	2012									2011									2010
Years Ended December 31, (in millions)	Commercial Mortgages			Other Loans			Total			Commercial Mortgages			Other Loans			Total			Commercial Mortgages			Other Loans^(b)			Total

Allowance, beginning of year	$	305		$	435		$	740		$	470		$	408		$	878		$	432		$	2,012		$	2,444
Loans charged off		(23	)		(21	)		(44	)		(78	)		(47	)		(125	)		(217	)		(137	)		(354	)
Recoveries of loans previously charged off		13			4			17			37			1			38			–			8			8

Net charge-offs		(10	)		(17	)		(27	)		(41	)		(46	)		(87	)		(217	)		(129	)		(346	)
Provision for loan losses		(136	)		33			(103	)		(69	)		51			(18	)		342			6			348
Other		–			–			–			(55	)		–			(55	)		(34	)		(1,601	)		(1,635	)
Reclassified to Assets of businesses held for sale		–			–			–			–			–			–			(53	)		(5	)		(58	)
Activity of discontinued operations		–			(205	)		(205	)		–			22			22			–			125			125

Allowance, end of year	$	159	^(a)	$	246		$	405		$	305	(a)	$	435		$	740		$	470		$	408		$	878

(a) Of the total, $47 million and $65 million relates to individually assessed credit losses on $286 million and $476 million of commercial mortgage loans as of December 31, 2012 and 2011, respectively.

(b) Included in Other loans were finance receivables, which were reported net of unearned finance charges, for both investment purposes and held for sale.

Troubled Debt Restructurings

We modify loans to optimize their returns and improve their collectability, among other things. When such a modification is undertaken with a borrower that is experiencing financial difficulty and the modification involves us granting a concession to the troubled debtor, the modification is deemed to be a troubled debt restructuring (TDR). We assess whether a borrower is experiencing financial difficulty based on a variety of factors, including the borrower's current default on any of its outstanding debt, the probability of a default on any of its debt in the foreseeable future without the modification, the insufficiency of the borrower's forecasted cash flows to service any of its outstanding debt (including both principal and interest), and the borrower's inability to access alternative third-party financing at an interest rate that would be reflective of current market conditions for a non-troubled debtor. Concessions granted may include extended maturity dates, interest rate changes, principal forgiveness, payment deferrals and easing of loan covenants.

As of December 31, 2012 and 2011, we held no significant loans that had been modified in a TDR during those respective years.

- 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

REINSURANCE

12 Months Ended

Dec. 31, 2012

REINSURANCE

REINSURANCE

9. REINSURANCE

In the ordinary course of business, our insurance companies may use both treaty and facultative reinsurance to minimize their net loss exposure to any single catastrophic loss event or to an accumulation of losses from a number of smaller events or to provide greater diversification of our businesses. In addition, our general insurance subsidiaries assume reinsurance from other insurance companies. We determine the portion of the incurred but not reported (IBNR) loss that will be recoverable under our reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. Reinsurance assets include the balances due from reinsurance and insurance companies under the terms of our reinsurance agreements for paid and unpaid losses and loss expenses, ceded unearned premiums and ceded future policy benefits for life and accident and health insurance contracts and benefits paid and unpaid. Amounts related to paid and unpaid losses and benefits and loss expenses with respect to these reinsurance agreements are substantially collateralized. We remain liable to the extent that our reinsurers do not meet their obligation under the reinsurance contracts, and as such, we regularly evaluate the financial condition of our reinsurers and monitor concentration of our credit risk. The allowance for doubtful accounts on reinsurance assets was $338 million and $365 million at December 31, 2012 and 2011, respectively.

The following table provides supplemental information for loss and benefit reserves, gross and net of ceded reinsurance:




	2012						2011
At December 31, (in millions)	As Reported			Net of Reinsurance			As Reported			Net of Reinsurance

Liability for unpaid claims and claims adjustment expense^(a)	$	(87,991	)	$	(68,782)		$	(91,145	)	$	(70,825	)
Future policy benefits for life and accident and health insurance contracts		(36,340	)		(35,408	)		(34,317	)		(33,312	)
Reserve for unearned premiums		(22,537	)		(18,934	)		(23,465	)		(19,553	)
Reinsurance assets^(b)		23,744			–			25,237			–

(a) In 2012 and 2011, the Net of Reinsurance amount reflects the cession under the June 17, 2011 transaction with National Indemnity Company (NICO) of $1.6 billion and $1.7 billion, respectively.

(b) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses.

Short-Duration Reinsurance

Short-duration reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts. Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received. Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets. Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums. For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply. If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense. To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity. Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit.

The following table presents short-duration insurance premiums written and earned:




	AIG Property Casualty									Other Businesses^*									Eliminations								Total
Years Ended December 31, (in millions)	AIG Property Casualty									Other Businesses^*									Eliminations								Total
Years Ended December 31, (in millions)	2012			2011			2010			2012			2011^*			2010^*			2012			2011			2010		2012			2011			2010

Premiums written:
Direct	$	40,428		$	41,710		$	38,965		$	938		$	898		$	927		$	–		$	–		$	–	$	41,366		$	42,608		$	39,892
Assumed		3,428			3,031			2,442			(10	)		–			(2	)		7			2			–		3,425			3,033			2,440
Ceded		(9,420	)		(9,901	)		(9,795	)		(70	)		(97	)		(169	)		(7	)		(2	)		–		(9,497	)		(10,000	)		(9,964	)

Net	$	34,436		$	34,840		$	31,612		$	858		$	801		$	756		$	–		$	–		$	–	$	35,294		$	35,641		$	32,368

Premiums earned:
Direct	$	40,954		$	42,878		$	39,082		$	754		$	835		$	1,065		$	–		$	–		$	–	$	41,708		$	43,713		$	40,147
Assumed		3,254			3,294			2,488			31			55			80			(30	)		(46	)		–		3,255			3,303			2,568
Ceded		(9,335	)		(10,483	)		(9,049	)		(70	)		(98	)		(170	)		30			46			–		(9,375	)		(10,535	)		(9,219	)

Net	$	34,873		$	35,689		$	32,521		$	715		$	792		$	975		$	–		$	–		$	–	$	35,588		$	36,481		$	33,496

* Includes results of Mortgage Guaranty.

For the years ended December 31, 2012, 2011 and 2010, reinsurance recoveries, which reduced loss and loss expenses incurred, amounted to $4.5 billion, $6.1 billion and $8.0 billion, respectively.

Long-Duration Reinsurance

Long-duration reinsurance is effected principally under yearly renewable term treaties. The premiums with respect to these treaties are earned over the contract period in proportion to the protection provided. Amounts recoverable from reinsurers on long-duration contracts are estimated in a manner consistent with the assumptions used for the underlying policy benefits and are presented as a component of Reinsurance assets.

The following table presents premiums for our long-duration insurance and retirement services operations:




Years Ended December 31, (in millions)	AIG Life and Retirement									Divested Businesses^*								Total
Years Ended December 31, (in millions)	2012			2011			2010			2012		2011			2010			2012			2011			2010

Gross premiums	$	3,030		$	3,104		$	3,141		$	11	$	17		$	9,670		$	3,041		$	3,121		$	12,811
Ceded premiums		(602	)		(591	)		(621	)		–		(6	)		(435	)		(602	)		(597	)		(1,056	)

Net	$	2,428		$	2,513		$	2,520		$	11	$	11		$	9,235		$	2,439		$	2,524		$	11,755

* Primarily represents results of AIA, which was deconsolidated during 2010.

Long-duration reinsurance recoveries, which reduced death and other benefits, approximated $758 million, $611 million and $810 million, respectively, for the years ended December 31, 2012, 2011 and 2010.

The following table presents long-duration insurance in force ceded to other insurance companies:




At December 31, (in millions)	2012		2011		2010^*

Long-duration insurance in force ceded	$	129,159	$	140,156	$	148,605

* Excludes amounts related to held-for-sale entities.

Long-duration insurance assumed in force represented 0.1 percent of gross long-duration insurance in force at December 31, 2012, 0.07 percent at December 31, 2011 and 0.1 percent at December 31, 2010, and premiums assumed by AIG Life and Retirement represented 0.5 percent, 0.5 percent and 0.3 percent of gross premiums for the years ended December 31, 2012, 2011 and 2010, respectively.

AIG Life and Retirement operations utilize internal and third-party reinsurance relationships to manage insurance risks and to facilitate capital management strategies. As a result of these reinsurance arrangements AIG Life and Retirement is able to minimize the use of letters of credit and utilize capital more efficiently. Pools of highly-rated third-party reinsurers are utilized to manage net amounts at risk in excess of retention limits. AIG Life and Retirement's domestic long-duration insurance companies also cede excess, non-economic reserves carried on a statutory-basis on certain term and universal life insurance policies and certain fixed annuities to onshore and offshore affiliates.

AIG Life and Retirement generally obtains letters of credit to obtain statutory recognition of its intercompany reinsurance transactions, particularly with respect to redundant statutory reserves requirements on term insurance and universal life with secondary guarantees (XXX and AXXX reserves). For this purpose, AIG Life and Retirement has a $585 million syndicated letter of credit facility outstanding at December 31, 2012, all of which relates to long-duration intercompany reinsurance transactions. AIG Life and Retirement has also obtained approximately $215 million of letters of credit on a bilateral basis all of which relates to long-duration intercompany reinsurance transactions. All of these approximately $800 million of letters of credit are due to mature on December 31, 2015.

Reinsurance Security

Our third-party reinsurance arrangements do not relieve us from our direct obligation to our insureds. Thus, a credit exposure exists with respect to both short-duration and long-duration reinsurance ceded to the extent that any reinsurer fails to meet the obligations assumed under any reinsurance agreement. We hold substantial collateral as security under related reinsurance agreements in the form of funds, securities, and/or letters of credit. A provision has been recorded for estimated unrecoverable reinsurance.

- Definition

The entire disclosure pertaining to the existence, magnitude and information about insurance that has been ceded to or assumed from another insurance company, including the methodologies and assumptions used in determining recorded amounts.

+ References

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-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

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-Name Statement of Financial Accounting Standard (FAS)

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-Number 92-5

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+ Details

DEFERRED POLICY ACQUISITION COSTS

12 Months Ended

Dec. 31, 2012

DEFERRED POLICY ACQUISITION COSTS

DEFERRED POLICY ACQUISITION COSTS

10. DEFERRED POLICY ACQUISITION COSTS

Deferred policy acquisition costs represent those costs that are incremental and directly related to the successful acquisition of new or renewal of existing insurance contracts. We defer incremental costs that result directly from, and are essential to, the acquisition or renewal of an insurance contract. Such deferred policy acquisition 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. We partially defer costs, including certain commissions, when we do not believe that the entire cost is directly related to the acquisition or renewal of insurance contracts.

We also defer 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 DAC.

Short-duration insurance contracts: Policy acquisition costs are deferred and amortized over the period in which the related premiums written are earned, generally 12 months. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the profitability of the underlying insurance contracts. Investment income is anticipated in assessing the recoverability of DAC. We assess the recoverability of DAC on an annual basis or more frequently if circumstances indicate an impairment may have occurred. This assessment is performed by comparing recorded net unearned premiums and anticipated investment income on in-force business to the sum of expected claims, claims adjustment expenses, unamortized DAC and maintenance costs. If the sum of these costs exceeds the amount of recorded net unearned premiums and anticipated investment income, the excess is recognized as an offset against the asset established for DAC. This offset is referred to as a premium deficiency charge. Increases in expected claims and claims adjustment expenses can have a significant impact on the likelihood and amount of a premium deficiency charge.

Long-duration insurance contracts: Policy acquisition costs for participating life, traditional life and accident and health insurance products are generally deferred and amortized, with interest, over the premium paying period. Policy acquisition costs and policy issuance costs related to universal life, and investment-type products (investment-oriented products) are deferred and amortized, with interest, in relation to the incidence of estimated gross profits to be realized over the estimated lives of the contracts. Estimated gross profits are composed of net investment income, net realized investment gains and losses, fees, surrender charges, expenses, and mortality and morbidity gains and losses.

We use a "reversion to the mean" methodology, which allows us to maintain our long-term assumptions, while also giving consideration to the effect of deviations from these assumptions occurring in the current period. A DAC unlocking is performed when management determines that key assumptions (e.g. market return, surrender rates, etc.) should be modified. The DAC asset is recalculated using the new assumptions. The use of a reversion to the mean assumption is common within the industry; however, the parameters used in the methodology are subject to judgment and vary within the industry. If estimated gross profits change significantly, DAC is recalculated using the new assumptions. Any resulting adjustment is included in income as an adjustment to DAC. DAC is grouped consistent with the manner in which the insurance contracts are acquired, serviced and measured for profitability and is reviewed for recoverability based on the current and projected future profitability of the underlying insurance contracts.

The DAC for investment-oriented products is also adjusted for changes in estimated gross profits that result from changes in the net unrealized gains or losses on fixed maturity and equity securities available for sale. Because fixed maturity and equity securities available for sale are carried at aggregate fair value, an adjustment is made to DAC equal to the change in DAC amortization that would have been recorded if such securities had been sold at their stated aggregate fair value and the proceeds reinvested at current yields. For long-duration traditional business, if such reinvestment would not be sufficient to recover DAC and meet policyholder obligations an adjustment to DAC and additional future policy benefits for those products is recorded using current best estimates that incorporate a review of assumptions regarding mortality, morbidity, persistency, maintenance expenses and investment returns. The change in these adjustments, net of tax, is included with the change in net unrealized appreciation (depreciation) of investments that is credited or charged directly to Accumulated other comprehensive income (loss) (Shadow DAC).

Value of Business Acquired (VOBA) is determined at the time of acquisition and is reported in the Consolidated Balance Sheet with DAC. This value is based on the present value of future pre-tax profits discounted at yields applicable at the time of purchase. For participating life, traditional life and accident and health insurance products, VOBA is amortized over the life of the business similar to that for DAC based on the assumptions at purchase. For universal life, and investment-oriented products, VOBA is amortized in relation to the estimated gross profits to date for each period.

For contracts accounted for at fair value, policy acquisition costs are expensed as incurred and not deferred or amortized.

For discussion related to changes in deferred acquisition costs in 2012 due to the adoption of a new accounting standard that addresses the accounting for costs associated with acquiring or renewing insurance contracts. See Note 2 herein.

The following table presents a rollforward of DAC:




Years Ended December 31, (in millions)	2012			2011			2010

AIG Property Casualty:
Balance, beginning of year	$	2,375		$	2,099		$	1,919

Acquisition costs deferred		4,861			4,548			4,058
Amortization expense		(4,761	)		(4,324	)		(3,894	)
Increase (decrease) due to foreign exchange and other		(34	)		52			16

Balance, end of year	$	2,441		$	2,375		$	2,099

AIG Life and Retirement:
Balance, beginning of year	$	6,502		$	7,258		$	8,462

Acquisition costs deferred		724			869			701
Amortization expense		(931	)		(1,142	)		(1,086	)
Change in net unrealized losses on securities		(621	)		(486	)		(817	)
Increase (decrease) due to foreign exchange		(2	)		3			1
Other		–			–			(3	)

Balance, end of year^(a)	$	5,672		$	6,502		$	7,258

Other operations:
Balance, beginning of year	$	25		$	32		$	17,505

Dispositions^(b)		–			–			(16,117	)
Acquisition costs deferred		36			14			1,218
Amortization expense		(17	)		(20	)		(841	)
Change in net unrealized gains (losses) on securities		–			–			28
Increase due to foreign exchange		–			1			314
Activity of discontinued operations		–			–			59
Reclassified to Assets held for sale		–			–			(1,960	)
Other		–			(2	)		(174	)

Subtotal	$	44		$	25		$	32
Consolidation and eliminations		25			35			42

Balance, end of year^(a)	$	69		$	60		$	74

Total deferred policy acquisition costs	$	8,182		$	8,937		$	9,431

(a) Includes $(619) million, $(1.4) billion, and $(758) million for AIG Life and Retirement at December 31, 2012, 2011 and 2010, respectively, and $(34) million for Divested businesses at 2011 related to the effect of net unrealized gains and losses on available for sale securities. For the year ended December 31, 2010, there were no net unrealized gains and losses on available for sale securities associated with divested businesses.

(b) For 2010, includes AIA which was deconsolidated and ALICO which was sold in 2010.

Included in the above table is the VOBA, an intangible asset recorded during purchase accounting, which is amortized in a manner similar to DAC. Amortization of VOBA was $53 million, $34 million and $90 million in 2012, 2011 and 2010, respectively, while the unamortized balance was $339 million, $430 million and $488 million at December 31, 2012, 2011 and 2010, respectively. The percentage of the unamortized balance of VOBA at December 31, 2012 expected to be amortized in 2013 through 2017 by year is: 8.3 percent, 7.3 percent, 6.9 percent, 6.0 percent and 6.4 percent, respectively, with 65.0 percent being amortized after five years. These projections are based on current estimates for investment, persistency, mortality and morbidity assumptions. The DAC amortization charged to income includes the increase or decrease of amortization related to Net realized capital gains (losses), primarily in the retirement services business of AIG Life and Retirement. In 2012, 2011 and 2010, amortization expense (increased) decreased by $119 million, $274 million and $114 million, respectively.

As we operate in various global markets, the estimated gross profits used to amortize DAC, VOBA and SIA are subject to differing market returns and interest rate environments in any single period. The combination of market returns and interest rates may lead to acceleration of amortization in some products and regions and simultaneous deceleration of amortization in other products and regions.

DAC, VOBA and SIA for insurance-oriented, investment-oriented and retirement services products are reviewed for recoverability, which involves estimating the future profitability of current business. This review involves significant management judgment. If actual future profitability is substantially lower than estimated, AIG's DAC, VOBA and SIA may be subject to an impairment charge and AIG's results of operations could be significantly affected in future periods.

- Definition

Disclosure of accounting policy for capitalizing costs incurred to write or acquire insurance contracts, the basis for and methodology for capitalizing such costs, the accounting for such deferred acquisition costs (DAC) when modifications or internal replacements of related insurance contracts occur and the effect on results of operations, and the methodology and amount of amortization. This disclosure addresses the nature, type, and amount of capitalized costs incurred to write or acquire insurance contracts.

+ References+ Details

VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2012

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES

11. VARIABLE INTEREST ENTITIES

A variable interest entity (VIE) is a legal entity that does not have sufficient equity at risk to finance its activities without additional subordinated financial support or is structured such that equity investors lack the ability to make significant decisions relating to the entity's operations through voting rights and do not substantively participate in the gains and losses of the entity. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but is based on other criteria discussed below.

While we enter into various arrangements with VIEs in the normal course of business, our involvement with VIEs is primarily via our insurance companies as a passive investor in debt securities (rated and unrated) and equity interests issued by VIEs. In all instances, we consolidate the VIE when we determine we are the primary beneficiary. This analysis includes a review of the VIE's capital structure, contractual relationships and terms, nature of the VIE's operations and purpose, nature of the VIE's interests issued and our involvement with the entity. When assessing the need to consolidate a VIE, we evaluate the design of the VIE as well as the related risks the entity was designed to expose the variable interest holders to.

For VIEs with attributes consistent with that of an investment company or a money market fund, the primary beneficiary is the party or group of related parties that absorbs a majority of the expected losses of the VIE, receives the majority of the expected residual returns of the VIE, or both.

For all other variable interest entities, the primary beneficiary is the entity that has both (1) the power to direct the activities of the VIE that most significantly affect the entity's economic performance and (2) the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of our decision-making ability and our ability to influence activities that significantly affect the economic performance of the VIE.

Exposure to Loss

Our total off-balance sheet exposure associated with VIEs, primarily consisting of financial guarantees and commitments to real estate and investment funds, was $0.2 billion and $0.4 billion at December 31, 2012 and 2011, respectively.

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




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

AIA/ALICO SPVs	$	0.6	^(b)	$	14.2	$	0.1	$	0.1
Real estate and investment funds^(c)		1.0			1.5		0.2		0.4
Securitization Vehicles		2.4			–		–		–
Structured investment vehicles		1.7			1.0		0.1		–
Affordable housing partnerships		2.3			2.5		0.2		0.1
Other		3.3			3.6		1.3		2.0

Total	$	11.3		$	22.8	$	1.9	$	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 AIA SPV Preferred Interests held by the Department of the Treasury. As a result, the AIA SPV no longer qualified as a VIE. Assets include $567 million of cash held in escrow pursuant to the terms of the ALICO stock purchase agreement between AIG and MetLife. See Note 16 herein for further discussion of the escrow arrangement.

(c) At December 31, 2012 and December 31, 2011, off-balance sheet exposure with respect to real estate and investments funds was $48.7 million and $85.7 million, respectively.

We calculate our 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 we have 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 us generally have recourse only to the assets and cash flows of the VIEs and do not have recourse to us, except in limited circumstances when we have provided a guarantee to the VIE's interest holders.

The following table presents total assets of unconsolidated VIEs in which we hold a variable interest, as well as our maximum exposure to loss associated with these VIEs:

			Maximum Exposure to Loss


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

December 31, 2012
Real estate and investment funds	$	16.7	$	1.8	$	0.2	$	2.0
Affordable housing partnerships		0.5		0.5		–		0.5
Other		1.0		0.1		–		0.1

Total	$	18.2	$	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

Our 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)	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011

Assets:
Available for sale securities	$	2.9	$	0.4	$	–	$	–
Trading securities		1.0		1.3		0.1		7.1
Mortgage and other loans receivable		0.4		0.5		–		–
Other invested assets^*		4.0		17.2		2.3		2.6
Other asset accounts		3.0		3.4		–		–

Total	$	11.3	$	22.8	$	2.4	$	9.7

Liabilities:
Long-term debt	$	0.7	$	1.7	$	–	$	–
Other liability accounts		1.2		0.9		–		–

Total	$	1.9	$	2.6	$	–	$	–

* Decrease from prior year was due to the repayment of the FRBNY Credit Facility from the AIA and ALICO SPVs pursuant to the Recapitalization.

Real Estate and Investment Funds

AIG, through AIG Global Real Estate, is an investor in various real estate investments, some of which are VIEs. These investments are typically with unaffiliated third-party developers via a partnership or limited liability company structure. The VIE's activities consist of the development or redevelopment of commercial and residential real estate. Our involvement varies from being a passive equity investor or finance provider to actively managing the activities of the VIE.

Our insurance operations participate as passive investors in the equity issued primarily by third-party-managed hedge and private equity funds. Our insurance operations typically are not involved in the design or establishment of VIEs, nor do they actively participate in the management of VIEs.

Securitization Vehicles

During 2012, we created VIEs that hold investments, primarily in investment-grade debt securities, and issued beneficial interests in these investments. The majority of these beneficial interests are owned by AIG entities and we maintain the power to direct the activities of the VIEs that most significantly impacts their economic performance and bear the obligation to absorb losses or receive benefits from the entities that could potentially be significant to the entities. Accordingly, we consolidate these entities and those beneficial interests issued to third-parties are reported as Long-term debt.

Structured Investment Vehicle

Through the DIB, we sponsor Nightingale Finance Ltd, a structured investment vehicle (SIV), which meets the definition of a VIE. Nightingale Finance Ltd. invests in variable rate, investment-grade debt securities, the majority of which are ABS. We have no equity interest in the SIV, but we maintain the power to direct the activities of the SIV that most significantly impact the entity's economic performance and bear the obligation to absorb economic losses that could potentially be significant to the SIV. We are the primary beneficiary and consolidate the assets of the SIV, which totaled over $1.7 billion as of December 31, 2012. Related liabilities were not significant.

Affordable Housing Partnerships

SunAmerica Affordable Housing Partners, Inc. (SAAHP) organizes and invests in limited partnerships that develop and operate affordable housing qualifying for federal tax credits, in addition to a few market rate properties across the United States. The general partners in the operating partnerships are almost exclusively unaffiliated third-party developers. We do not consolidate an operating partnership if the general partner is an unaffiliated person. Through approximately 1,000 partnerships, SAAHP has investments in developments with approximately 130,000 apartment units nationwide, and as of December 31, 2012, has syndicated approximately $7.7 billion in partnership equity to other investors who will receive, among other benefits, tax credits under certain sections of the Internal Revenue Code. The pre-tax income of SAAHP is reported, along with other AIG Life and Retirement partnership income, as a component of the AIG Life and Retirement segment.

Maiden Lane Interests

In 2008, certain of our wholly-owned life insurance companies sold all of their undivided interests in a pool of $39.3 billion face amount of RMBS to ML II, whose sole member is the FRBNY. AIG has a significant variable economic interest in ML II, which is a VIE.

In 2008, AIG entered into an agreement with the FRBNY, ML III and The Bank of New York Mellon, which established arrangements, through ML III, to fund the purchase of multi-sector CDOs underlying or related to CDS written by AIGFP. Concurrently, AIGFP's counterparties to such CDS transactions agreed to terminate those CDS transactions relating to the multi-sector CDOs purchased from them. AIG had a significant variable interest in ML III, which was a VIE. In 2012, we received final distributions from ML II and ML III.

Other Asset Accounts

Aircraft Trusts

We have created two VIEs for the purpose of acquiring, owning, leasing, maintaining, operating and selling aircraft. Our subsidiaries hold beneficial interests, including all the equity interests in these entities. These beneficial interests include passive investments by our insurance operations in non-voting preferred equity interests and in the majority of the debt issued by these entities. We maintain the power to direct the activities of the VIEs that most significantly impact the entities' economic performance, and bear the obligation to absorb economic losses or receive economic benefits that could potentially be significant to the VIEs. As a result, we have determined that we are the primary beneficiary and we fully consolidate the assets and liabilities of these entities, which totaled $1.2 billion and $0.3 billion, respectively at December 31, 2012. The debt of these entities is not an obligation of, or guaranteed by, us or any of our subsidiaries. Under a servicing agreement, ILFC acts as servicer for the aircraft owned by these entities.

Commercial Loans Vehicles

We sponsor one VIE that has issued a variable funding note backed by a commercial loan collateralized by individual life insurance assets. As of December 31, 2012, total consolidated assets and liabilities for this entity were $412 million and $188 million, respectively; our maximum exposure, representing the carrying value of the consumer loan, was $389 million.

Commercial Paper Conduit

AIGFP is the primary beneficiary of Curzon Funding LLC, an asset-backed commercial paper conduit, the assets of which serve as collateral for the conduit's obligations.

RMBS, CMBS, Other ABS and CDOS

Through our insurance company subsidiaries, we are a passive investor in RMBS, CMBS, other ABS and CDOs primarily issued by domestic special-purpose entities. We generally do not sponsor or transfer assets to, or act as the servicer to these asset-backed structures, and were not involved in the design of these entities.

Through our DIB, we also invest in CDOs and similar structures, which can be cash-based or synthetic and are managed by third parties. The role of DIB is generally limited to that of a passive investor in structures we do not manage.

Our maximum exposure in these types of structures is limited to our investment in securities issued by these entities. Based on the nature of our investments and our passive involvement in these types of structures, we have determined that we are not the primary beneficiary of these entities. We have not included these entities in the above tables; however, the fair values of our investments in these structures are reported in Notes 6 and 7 herein.

Variable Interest Entities of Business Held for Sale

Financing Vehicles

ILFC has created wholly-owned subsidiaries for the purpose of purchasing aircraft and obtaining financing secured by such aircraft. A portion of the secured debt has been guaranteed by the European Export Credit Agencies and the Export-Import Bank of the United States. These entities meet the definition of a VIE because they do not have sufficient equity to operate without ILFC's subordinated financial support in the form of intercompany notes which serve as equity. ILFC fully consolidates the entities, controls all the activities of the entities and guarantees the activities of the entities. AIG has not included these entities in the above table as they are wholly-owned and there are no other variable interests other than those of ILFC and the lenders. See Note 15 herein for further information.

Leasing Entities

ILFC has created wholly-owned subsidiaries for the purpose of facilitating aircraft leases with airlines. The entities meet the definition of a VIE because they do not have sufficient equity to operate without ILFC's subordinated financial support in the form of intercompany notes which serve as equity. ILFC fully consolidates the entities, controls all the activities of the entities and fully guarantees the activities of the entities. AIG has not included these entities in the above table as they are wholly owned and there are no other variable interests in the entities other than those of ILFC.

DERIVATIVES AND HEDGE ACCOUNTING

12 Months Ended

Dec. 31, 2012

DERIVATIVES AND HEDGE ACCOUNTING

DERIVATIVES AND HEDGE ACCOUNTING

12. DERIVATIVES AND HEDGE ACCOUNTING

We use derivatives and other financial instruments as part of our financial risk management programs and as part of our investment operations. Interest rate, currency, equity and commodity swaps, credit contracts (including the super senior credit default swap portfolio), swaptions, options and forward transactions are accounted for as derivatives recorded on a trade-date basis, and carried at fair value. Unrealized gains and losses are reflected in income, when appropriate. In certain instances, a contract's transaction price is the best indication of initial fair value. Aggregate asset or liability positions are netted on the Consolidated Balance Sheet only to the extent permitted by qualifying master netting arrangements in place with each respective counterparty. Cash collateral posted with counterparties in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative liability, while cash collateral received in conjunction with transactions supported by qualifying master netting arrangements is reported as a reduction of the corresponding net derivative asset.

Derivatives, with the exception of bifurcated embedded derivatives, are reflected in the Consolidated Balance Sheet in Derivative assets, at fair value and Derivative liabilities, at fair value. A bifurcated embedded derivative is measured at fair value and accounted for in the same manner as a free standing derivative contract. The corresponding host contract is accounted for according to the accounting guidance applicable for that instrument. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheet. See Note 6 herein for additional information on embedded policy derivatives.

The following table presents the notional amounts and fair values of our derivative instruments:




	December 31, 2012								December 31, 2011
	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
(in millions)	Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)

Derivatives designated as hedging instruments:
Interest rate contracts^(b)	$	–	$	–	$	–	$	–	$	–	$	–	$	481	$	38
Foreign exchange contracts		–		–		–		–		–		–		180		1
Derivatives not designated as hedging instruments:
Interest rate contracts^(b)		63,463		6,479		63,482		5,806		72,660		8,286		73,248		6,870
Foreign exchange contracts		8,325		104		10,168		174		3,278		145		3,399		178
Equity contracts^(c)		4,990		221		25,626		1,377		4,748		263		18,911		1,126
Commodity contracts		625		145		622		146		691		136		861		146
Credit contracts		70		60		16,244		2,051		407		89		25,857		3,366
Other contracts^(d)		20,449		38		1,488		206		24,305		741		2,125		372

Total derivatives not designated as hedging instruments		97,922		7,047		117,630		9,760		106,089		9,660		124,401		12,058

Total derivatives	$	97,922	$	7,047	$	117,630	$	9,760	$	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 $23 billion and $1.3 billion, respectively, at December 31, 2012 and $18.3 billion and $0.9 billion, respectively at December 31, 2011 related to bifurcated embedded derivatives. A bifurcated embedded derivative is generally presented with the host contract in the Consolidated Balance Sheet.

(d) Consist primarily of contracts with multiple underlying exposures.

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




	December 31, 2012										December 31, 2011
	Derivative Assets					Derivative Liabilities					Derivative Assets					Derivative Liabilities
(in millions)	Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value

Global Capital Markets derivatives:
AIG Financial Products	$	59,854	$	4,725		$	66,717	$	5,506		$	86,128	$	7,063		$	90,241	$	8,853
AIG Markets		14,028		1,308			18,774		1,818			7,908		1,409			8,201		1,168

Total Global Capital Markets derivatives		73,882		6,033			85,491		7,324			94,036		8,472			98,442		10,021
Non-Global Capital Markets derivatives^(a)		24,040		1,014			32,139		2,436			12,053		1,188			26,620		2,076

Total derivatives, gross	$	97,922		7,047		$	117,630		9,760		$	106,089		9,660		$	125,062		12,097

Counterparty netting^(b)				(2,467	)				(2,467	)				(3,660	)				(3,660	)
Cash collateral^(c)				(909	)				(1,976	)				(1,501	)				(2,786	)

Total derivatives, net				3,671					5,317					4,499					5,651

Less: Bifurcated embedded derivatives				–					1,256					–					918

Total derivatives on consolidated balance sheet			$	3,671				$	4,061				$	4,499				$	4,733

(a) Represents derivatives used to hedge the foreign currency and interest rate risk associated with insurance 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

We engage in derivative transactions directly with unaffiliated third parties in most cases under International Swaps and Derivatives Association, Inc. (ISDA) agreements. Many of the ISDA agreements also include Credit Support Annex (CSA) provisions, which generally provide for collateral postings at various ratings and threshold levels. We attempt to reduce our risk with certain counterparties by entering into agreements that enable collateral to be obtained from a counterparty on an upfront or contingent basis. We minimize the risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring counterparty credit exposure and collateral value and generally requiring additional collateral to be posted upon the occurrence of certain events or circumstances. In addition, a significant portion of the derivative transactions have provisions that require collateral to be posted upon a downgrade of our long-term debt ratings or give the counterparty the right to terminate the transaction. In the case of some of the derivative transactions, as an alternative to posting collateral and subject to certain conditions, we may assign the transaction to an obligor with higher debt ratings or arrange for a substitute guarantee of our obligations by an obligor with higher debt ratings or take other similar action. The actual amount of collateral required to be posted to counterparties in the event of such downgrades, or the aggregate amount of payments that we 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.

Collateral posted by us to third parties for derivative transactions was $4.5 billion and $4.7 billion at December 31, 2012 and December 31, 2011, respectively. This collateral can generally be repledged or resold by the counterparties. Collateral obtained by us from third parties for derivative transactions was $1.4 billion and $1.6 billion at December 31, 2012 and December 31, 2011, respectively. We generally can repledge or resell this collateral.

Hedge Accounting

We designated certain derivatives entered into by GCM with third parties as fair value hedges of available-for-sale investment securities held by our insurance 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. We previously designated certain interest rate swaps entered into by GCM with third parties as cash flow hedges of certain floating rate debt issued by ILFC, specifically to hedge the changes in cash flows on floating rate debt attributable to changes in the benchmark interest rate. We de-designated such cash flow hedges in December 2012 subsequent to the announcement of the ILFC Transaction.

We use foreign currency denominated debt and cross-currency swaps as hedging instruments in net investment hedge relationships to mitigate the foreign exchange risk associated with our non-U.S. dollar functional currency foreign subsidiaries. We assess the hedge effectiveness and measure the amount of ineffectiveness for these hedge relationships based on changes in spot exchange rates. For the years ended December 31, 2012, 2011, and 2010 we recognized gains (losses) of $(74) million, $(13) million and $28 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 our derivative instruments in fair value hedging relationships in the Consolidated Statement of Operations:




Years Ended December 31, (in millions)	2012			2011

Interest rate contracts:^(a)
Loss recognized in earnings on derivatives	$	–		$	(3	)
Gain recognized in earnings on hedged items^(b)		124			152
Foreign exchange contracts:^(a)
Loss recognized in earnings on derivatives		(2	)		(1	)
Gain recognized in earnings on hedged items		2			1

(a) Gains and losses recognized in earnings for the ineffective portion and amounts excluded from effectiveness testing, if any, are recorded in Net realized capital gains (losses).

(b) Includes $124 million and $149 million, for the years ended December 31, 2012 and 2011, respectively, representing the amortization of debt basis adjustment recorded in Other income and Net realized capital gains (losses) following the discontinuation of hedge accounting.

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




Years Ended December 31, (in millions)	2012			2011

Interest rate contracts^(a):
Gain (loss) recognized in OCI on derivatives	$	(2	)	$	(5	)
Gain (loss) reclassified from Accumulated OCI into earnings^(b)		(35	)		(55	)

(a) Hedge accounting was discontinued in December 2012 subsequent to the announcement of the ILFC Transaction. Gains and losses recognized in earnings are recorded in Income (loss) from discontinued operations. Previously the effective portion of the change in fair value of a derivative qualifying as a cash flow hedge was recorded in Accumulated other comprehensive income until earnings were affected by the variability of cash flows in the hedged item. Gains and losses reclassified from Accumulated other comprehensive income were previously recorded in Other income. Gains or losses recognized in earnings on derivatives for the ineffective portion were previously recorded in Net realized capital gains (losses).

(b) Includes $19 million for the year ended December 2012, representing the reclassification from Accumulated other comprehensive income into earnings following the discontinuation of cash flow hedges of ILFC debt.

Derivatives Not Designated as Hedging Instruments

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




	Gains (Losses) Recognized in Earnings
Years Ended December 31, (in millions)	Gains (Losses) Recognized in Earnings
Years Ended December 31, (in millions)	2012			2011

By Derivative Type:
Interest rate contracts^(a)	$	(241	)	$	603
Foreign exchange contracts		96			137
Equity contracts^(b)		(641	)		(263	)
Commodity contracts		(1	)		4
Credit contracts		641			337
Other contracts		6			47

Total	$	(140	)	$	865

By Classification:
Policy fees	$	160		$	113
Net investment income		5			8
Net realized capital gains (losses)		(672	)		248
Other income (losses)		367			496

Total	$	(140	)	$	865

(a) Includes cross currency swaps.

(b) Includes embedded derivative losses of $166 million and $397 million for the years ended December 31, 2012 and 2011, respectively.

Global Capital Markets Derivatives

GCM enters into derivative transactions to mitigate market risk in its exposures (interest rates, currencies, commodities, credit and equities) arising from its transactions. At December 31, 2012, GCM has entered into credit derivative transactions with respect to $67 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 had 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, we sold credit protection on a designated portfolio of loans or debt securities. Generally, such credit protection was provided on a "second loss" basis, meaning we would incur credit losses only after a shortfall of principal and/or interest, or other credit events, in respect of the protected loans and debt securities, exceeded a specified threshold amount or level of "first losses."

The following table presents the net notional amount, fair value of derivative liability and unrealized market valuation gain 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^(c)
					Fair Value of Derivative Liability at^(b)(c)
	Net Notional Amount^(a)
	Net Notional Amount^(a)								Years Ended December 31,
	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011		Years Ended December 31,
(in millions)	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011		2012		2011

Regulatory Capital:
Corporate loans	$	–	$	1,830	$	–	$	–	$	–	$	–
Prime residential mortgages		97		3,653		–		–		–		6
Other		–		887		–		9		9		8

Total		97		6,370		–		9		9		14

Arbitrage:
Multi-sector CDOs^(d)		3,944		5,476		1,910		3,077		538		249
Corporate debt/CLOs^(e)		11,832		11,784		60		127		67		44

Total		15,776		17,260		1,970		3,204		605		293

Mezzanine tranches		–		989		–		10		3		32

Total	$	15,873	$	24,619	$	1,970	$	3,223	$	617	$	339

(a) Net notional amounts presented are net of all structural subordination below the covered tranches. The decrease in the total net notional amount from December 31, 2011 to December 31, 2012 was due primarily to terminations of $5.4 billion and amortization of $3.2 billion.

(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 $(39) million and $26 million for the years ended December 31, 2012 and 2011, respectively, representing the effect of changes in our credit spreads on the valuation of the derivatives liabilities.

(d) During 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 2012, $213 million was paid to counterparties with respect to multi-sector CDOs. Upon payment, a $213 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 $3.4 billion and $4.6 billion in net notional amount of credit default swaps written with cash settlement provisions at December 31, 2012 and December 31, 2011, respectively. Collateral postings with regards to multi-sector CDOs were $1.6 billion and $2.7 billion at December 31, 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 December 31, 2012 and December 31, 2011. Collateral postings with regards to corporate debt/CLOs were $420 million and $477 million at December 31, 2012 and December 31, 2011, respectively.

The expected weighted average maturity of the super senior credit derivative portfolios as of December 31, 2012 was less than one year for the regulatory capital prime residential mortgage portfolio, 6 years for the multi-sector CDO arbitrage portfolio and 3 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, we do not expect that we 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, we are 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

We have also entered into credit default swap contracts referencing single-name exposures written on corporate, index and asset-backed credits 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 December 31, 2012, the net notional amount of these written CDS contracts was $410 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 $51 million in net notional amount. The net unhedged position of $359 million represents the maximum exposure to loss on these CDS contracts. The average maturity of the written CDS contracts is 4 years. At December 31, 2012, the fair value of derivative liability (which represents the carrying value) of the portfolio of CDS was $48 million.

Upon a triggering event (e.g., a default) with respect to the underlying credit, we would have the option 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 credit support annexes (CSAs) that provide for collateral postings at various ratings and threshold levels. At December 31, 2012, collateral posted by us under these contracts was $64 million prior to offsets for other transactions.

All Other Derivatives

Our 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, we also enter 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 our derivative instruments that contain credit risk-related contingent features that were in a net liability position at December 31, 2012, was approximately $3.9 billion. The aggregate fair value of assets posted as collateral under these contracts at December 31, 2012, was 4.3 billion.

We estimate that at December 31, 2012, based on our outstanding financial derivative transactions a one-notch downgrade of our 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 certain 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' Service, Inc. (Moody's) and an additional one-notch downgrade to BBB by S&P would result in approximately $102 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 $112 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 December 31, 2012. Factors considered in estimating the termination payments upon downgrade include current market conditions, the complexity of the derivative transactions, historical termination experience and other observable market events such as bankruptcy and downgrade events that have occurred at other companies. Our estimates are also based on the assumption that counterparties will terminate based on their net exposure to us. The actual termination payments could significantly differ from our 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

We invest in hybrid securities (such as credit-linked notes) with the intent of generating income, and not specifically to acquire exposure to embedded derivative risk. As is the case with our other investments in RMBS, CMBS, CDOs and ABS, our investments in these hybrid securities are exposed to losses only up to the amount of our initial investment in the hybrid security. Other than our initial investment in the hybrid securities, we have no further obligation to make payments on the embedded credit derivatives in the related hybrid securities.

We elect to account for our 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. Our investments in these hybrid securities are reported as Bond trading securities in the Consolidated Balance Sheet. The fair value of these hybrid securities was $6.7 billion at December 31, 2012. These securities have a current par amount of $15.0 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

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS

12 Months Ended

Dec. 31, 2012

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS

13. LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS

The liability for unpaid claims and claims adjustment expense represents the accumulation of estimates of unpaid claims, including estimates for claims incurred but not reported and claim adjustments expenses, less applicable discount for future investment income. We continually review and update the methods used to determine loss reserve estimates and to establish the resulting reserves. Any adjustments resulting from this review are currently reflected in pre-tax income. Because these estimates are subject to the outcome of future events, changes in estimates are common given that loss trends vary and time is often required for changes in trends to be recognized and confirmed. Reserve changes that increase previous estimates of ultimate cost are referred to as unfavorable or adverse development or reserve strengthening. Reserve changes that decrease previous estimates of ultimate cost are referred to as favorable development.

The following table presents the reconciliation of activity in the Liability for unpaid claims and claims adjustment expense:




Years Ended December 31, (in millions)	2012			2011			2010

Liability for unpaid claims and claims adjustment expense, beginning of year	$	91,145		$	91,151		$	85,386
Reinsurance recoverable		(20,320	)		(19,644	)		(17,487	)

Net liability for unpaid claims and claims adjustment expense, beginning of year		70,825			71,507			67,899

Foreign exchange effect		757			353			(126	)
Acquisitions^(a)		–			–			1,538
Dispositions		(11	)		–			(87	)
Changes in net loss reserves due to NICO transaction		90			(1,703	)		–

Total		71,661			70,157			69,224

Losses and loss expenses incurred^(b):
Current year		25,385			27,931			24,455
Prior years, other than accretion of discount^(c)		421			195			4,182
Prior years, accretion of discount		(63	)		34			(562	)

Total		25,743			28,160			28,075

Losses and loss expenses paid^(b):
Current year		9,297			11,534			9,873
Prior years		19,325			15,958			15,919

Total		28,622			27,492			25,792

Balance, end of year:
Net liability for unpaid claims and claims adjustment expense		68,782			70,825			71,507
Reinsurance recoverable		19,209			20,320			19,644

Total	$	87,991		$	91,145		$	91,151

(a) Represents the acquisition of Fuji on March 31, 2010.

(b) Includes amounts related to dispositions through the date of disposition.

(c) In 2012, includes $262 million, $46 million and $326 million related to excess casualty, commercial specialty workers' compensation and environmental, respectively. In 2011, includes $(414) million, $145 million and $413 million related to excess casualty, commercial specialty workers' compensation and environmental, respectively. In 2010, includes $1.1 billion, $793 million and $1.5 billion related to excess casualty, excess workers' compensation and asbestos, respectively.

The net adverse development includes loss-sensitive business, for which we recognized a $54 million, $172 million and $8 million loss-sensitive premium adjustment for the years ended December 31, 2012, 2011 and 2010, respectively.

The 2010 net adverse loss development for prior accident years primarily relates to the asbestos, excess casualty, excess workers' compensation and primary workers' compensation. Further, this charge primarily relates to accident years 2007 and prior (accident years before the financial crisis in 2008) and a significant amount relates to accident 2005 and prior (accident years prior to the start of the managed reduction in these long-tail lines of business). In 2010, the reserve charges were primarily due to long-tail lines of business which have been reduced since 2006. In the case of asbestos, since 1985, standard policies have contained an absolute exclusion for asbestos and pollution-related damages. The factors driving excess casualty loss cost were primarily due to medical inflation and the exhaustion of underlying primary policies for products liability coverage and for homebuilders. In 2010, excess workers' compensation also experienced significant prior year development related to the passage of the Affordable Care Act in March 2010 as we concluded that there is increased vulnerability to the risk of further cost-shifting to the excess workers' compensation class of business.

Discounting of Reserves

At December 31, 2012, the liability for unpaid claims and claims adjustment expense reflects a net loss reserve discount of $3.2 billion, including tabular and non-tabular calculations based upon the following assumptions:

•: The tabular workers' compensation discount is calculated using a 3.5 percent interest rate and the 1979-81 Decennial Mortality Table.
•: The non-tabular workers' compensation discount is calculated separately for companies domiciled in New York and Pennsylvania, and follows the statutory regulations for each state. For New York companies, the discount is based on a five percent interest rate and the companies' own payout patterns. For Pennsylvania companies, the statute has specified discount factors for accident years 2001 and prior, which are based on a six percent interest rate and an industry payout pattern. For accident years 2002 and subsequent, the discount is based on the payout patterns and investment yields of the companies.
•: Certain asbestos business that was written by AIG Property Casualty is discounted, when allowed by the regulator and when payments are fixed and determinable, based on the investment yields of the companies and the payout pattern for this business.

The discount consists of the following: $801 million – tabular discount for workers' compensation in the domestic operations of AIG Property Casualty and $2.4 billion – non-tabular discount for workers' compensation in the domestic operations of AIG Property Casualty; and $51 million – non-tabular discount for asbestos for AIG Property Casualty.

Future Policy Benefits

Future policy benefits for life and accident and health insurance contracts include provisions for future dividends to participating policyholders, accrued in accordance with all applicable regulatory or contractual provisions. Also included in Future policy benefits are liabilities for annuities issued in structured settlement arrangements whereby a claimant has agreed to settle a general insurance claim in exchange for fixed payments over a fixed determinable period of time with a life contingency feature. Structured settlement liabilities are presented on a discounted basis because the settled claims are fixed and determinable. Policyholder contract deposits also include our liability for (a) certain guarantee benefits accounted for as embedded derivatives at fair value, (b) annuities issued in a structured settlement arrangement with no life contingency and (c) certain contracts we elected to account for at fair value.

The following table presents the components of future policy benefits:




At December 31, (in millions)	2012		2011

Future policy benefits:
Long duration and contracts	$	36,121	$	33,322
Short duration contracts		219		995

Total future policy benefits	$	36,340	$	34,317

Long duration contract liabilities included in future policy benefits, as presented in the preceding table, result primarily from life products. Short duration contract liabilities are primarily accident and health products. The liability for future life policy benefits has been established on the basis of the following assumptions:

•: Interest rates (exclusive of immediate/terminal funding annuities), which vary by year of issuance and products, range from 1 percent to 9.5 percent within the first 20 years. Interest rates on immediate/terminal funding annuities are at a maximum of 13.5 percent and grade to not greater than zero percent.
•: Mortality and surrender rates are based upon actual experience modified to allow for variations in policy form. The weighted average lapse rate, including surrenders, for individual and group life was approximately 7.1 percent.
•: Participating life business represented approximately 2.0 percent of the gross insurance in force at December 31, 2012 and 4.2 percent of gross Premiums and other considerations in 2012. The amount of annual dividends to be paid is approved locally by the boards of directors of the life companies. Provisions for future dividend payments are computed by jurisdiction, reflecting local regulations. The portions of current and prior Net income and of current unrealized appreciation of investments that can inure to our benefit are restricted in some cases by the insurance contracts and by the local insurance regulations of the jurisdictions in which the policies are in force.

Policyholder Contract Deposits

The following table presents policyholder contract deposits liabilities:




At December 31, (in millions)	2012		2011

Policyholder contract deposits:
Annuities	$	98,544	$	98,657
Universal life products		13,045		12,917
Guaranteed investment contracts		6,178		6,788
Variable products – fixed account option		3,936		3,181
Corporate life products		2,284		2,239
Other investment contracts		3,130		3,116

Total policyholder contract deposits	$	127,117	$	126,898

The liability for policyholder contract deposits has been established based on the following assumptions:

•: Interest rates credited on deferred annuities, which vary by year of issuance, range from 1 percent to, including bonuses, 9 percent. Current declared interest rates are generally guaranteed to remain in effect for a period of one year though some are guaranteed for longer periods. Withdrawal charges generally range from zero percent to 20 percent grading to zero over a period of zero to 15 years.
•: Guaranteed investment contracts (GICs) have market value withdrawal provisions for any funds withdrawn other than benefit responsive payments. Interest rates credited generally range from 0.5 percent to 8.5 percent. The majority of these GICs mature within four years.
•: Interest rates on corporate life insurance products are guaranteed at 3 percent and the weighted average rate credited in 2012 was 4.6 percent.
•: The universal life products have credited interest rates of 1 percent to 8 percent and guarantees ranging from 1 percent to 5.5 percent depending on the year of issue. Additionally, universal life funds are subject to surrender charges that amount to 9.7 percent of the aggregate fund balance grading to zero over a period not longer than 20 years.
•: For variable products and investment contracts, policy values are expressed in terms of investment units. Each unit is linked to an asset portfolio. The value of a unit increases or decreases based on the value of the linked asset portfolio. The current liability at any time is the sum of the current unit value of all investment units plus any liability for guaranteed minimum death or withdrawal benefits.

Certain products are subject to experience adjustments. These include group life and group medical products, credit life contracts, accident and health insurance contracts/riders attached to life policies and, to a limited extent, reinsurance agreements with other direct insurers. Ultimate premiums from these contracts are estimated and recognized as revenue, and the unearned portions of the premiums recorded as liabilities. Experience adjustments vary according to the type of contract and the territory in which the policy is in force and are subject to local regulatory guidance.

- Definition

The entire disclosure for liabilities related to future policy benefits and unpaid claims and claim adjustments.

+ References

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

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 94-5

-Paragraph 11

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

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+ Details

VARIABLE LIFE AND ANNUITY CONTRACTS

12 Months Ended

Dec. 31, 2012

VARIABLE LIFE AND ANNUITY CONTRACTS

VARIABLE LIFE AND ANNUITY CONTRACTS

14. VARIABLE LIFE AND ANNUITY CONTRACTS

We report variable contracts within the separate accounts when investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contract holder (traditional variable annuities), and the separate account meets other accounting criteria to qualify for separate account treatment. The assets supporting the variable portions of both traditional variable annuities and variable contracts with guarantees are carried at fair value and reported as separate account assets with an equivalent summary total reported as separate account liabilities when the separate account qualifies for separate account treatment. Assets for separate accounts that do not qualify for separate account treatment are reported as trading account assets, and liabilities are included in the respective policyholder liability account of the general account.

We also report variable annuity and life contracts through separate accounts, or general accounts when not qualified for separate account reporting, when we contractually guarantee to the contract holder (variable contracts with guarantees) either (a) total deposits made to the contract less any partial withdrawals plus a minimum return (and in minor instances, no minimum returns) or (b) the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary. These guarantees include benefits that are payable in the event of death, annuitization, or, in other instances, at specified dates during the accumulation period. Such benefits are referred to as guaranteed minimum death benefits (GMDB), guaranteed minimum income benefits (GMIB), guaranteed minimum withdrawal benefits (GMWB) and guaranteed minimum account value benefits (GMAV). GMDB is our most widely offered benefit.

Amounts assessed against the contract holders for mortality, administrative, and other services are included in revenue and changes in liabilities for minimum guarantees are included in Policyholder benefits and claims incurred in the Consolidated Statement of Operations. Separate account net investment income, net investment gains and losses, and the related liability changes are offset within the same line item in the Consolidated Statement of Operations for those accounts that qualify for separate account treatment. Net investment income and gains and losses on trading accounts for contracts that do not qualify for separate account treatment are reported in Net investment income and are principally offset by amounts reported in Policyholder benefits and claims incurred.

The following table presents details concerning our GMDB exposures:




	2012					2011
At December 31, (dollars in billions)	Net Deposits Plus a Minimum Return			Highest Contract Value Attained		Net Deposits Plus a Minimum Return			Highest Contract Value Attained

Account value^(a)	$	64		$	13	$	57		$	12
Amount at risk^(b)		2			1		3			2
Average attained age of contract holders by product		59 - 73 years			66 - 75 years		58 - 72 years			67 - 74 years

Range of guaranteed minimum return rates		3 - 10	%				3 - 10	%

(a) Included in Policyholder contract deposits in the Consolidated Balance Sheet.

(b) Represents the amount of death benefit currently in excess of Account value.

The following summarizes GMDB and GMIB liabilities for guarantees on variable contracts reflected in the general account:




Years Ended December 31, (in millions)	2012			2011

Balance, beginning of year	$	445		$	412
Reserve increase		43			120
Benefits paid		(75	)		(87	)

Balance, end of year	$	413		$	445

The GMDB liability is determined each period end by estimating the expected value of death benefits in excess of the projected account balance and recognizing the excess ratably over the accumulation period based on total expected assessments. We regularly evaluate estimates used and adjust the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised.

The following assumptions and methodology were used to determine the GMDB liability at December 31, 2012:

•: Data used was up to 1,000 stochastically generated investment performance scenarios.
•: Mean investment performance assumptions ranged from three percent to approximately ten percent depending on the block of business.
•: Volatility assumption was 16 percent.
•: Mortality was assumed to be between 50 percent and 88 percent of the 1994 variable annuity minimum guaranteed death benefit table for recent experience.
•: Lapse rates vary by contract type and duration and ranged from zero percent to 37 percent.
•: The discount rate ranged from 3.75 percent to 10 percent and is based on the growth rate assumption for the underlying contracts in effect at the time of policy issuance.

In addition to GMDB, our contracts currently include to a lesser extent GMIB. The GMIB liability is determined each period end by estimating the expected value of the annuitization benefits in excess of the projected account balance at the date of annuitization and recognizing the excess ratably over the accumulation period based on total expected assessments. We periodically evaluate estimates used and adjust the additional liability balance, with a related charge or credit to benefit expense, if actual experience or other evidence suggests that earlier assumptions should be revised.

In addition, our contracts currently include GMAV and GMWB benefits. GMAV and GMWB features are considered to be embedded derivatives and are recognized at fair value through earnings. We enter into derivative contracts to economically hedge a portion of the exposure that arises from GMAV and GMWB benefits. At December 31, 2012, we had $19.8 billion of account values and $1.3 billion of net amount at risk that was attributable to variable annuities with GMAV and GMWB benefits. See Note 6 herein for additional fair value disclosures.

- Definition

The entire disclosure for long duration contracts. This may include the information pertinent to an understanding of the types of traditional and nontraditional insurance and investment contracts sold and serviced, including the nature and amount of estimated guaranteed obligations pertaining to such contracts and the assumptions underlying such estimated amounts, hedging strategies, and sales inducements offered.

+ References+ Details

DEBT OUTSTANDING

12 Months Ended

Dec. 31, 2012

DEBT OUTSTANDING

DEBT OUTSTANDING

15. DEBT OUTSTANDING

AIG's long-term debt is denominated in various currencies, with both fixed and variable interest rates. Long-term debt is carried at the principal amount borrowed, including unamortized discounts, hedge accounting valuation adjustments and fair value adjustments, where applicable. The interest rates presented in the following table reflect the range of contractual rates in effect at year end, including fixed and variable rate issuances.

The following table lists our total debt outstanding at December 31, 2012 and 2011. The interest rates presented in the following table are the range of contractual rates in effect at year end, including fixed and variable-rates:




Year Ended December 31, 2012 (in millions)^{Interest Rate(s)}	Range of	Maturity Date(s)		Balance at December 31, 2012		Balance at December 31, 2011

Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	2.50% - 8.13%		2013 - 2097	$	14,084	$	12,725
Subordinated debt	2.38%		2015		250		–
Junior subordinated debt^(a)	4.88% - 8.63%		2037 - 2058		9,416		9,327
Loans and mortgages payable	1.09% - 9.00%		2013 - 2015		79		234
SunAmerica Financial Group, Inc. notes and bonds payable	6.63% - 7.50%		2025 - 2029		298		298
Liabilities connected to trust preferred stock	7.57% - 8.50%		2030 - 2046		1,339		1,339

Total AIG general borrowings	–		–		25,466		23,923

AIG borrowings supported by assets:
MIP notes payable	0.38% - 8.59%		2013 - 2018		9,296		10,147
Series AIGFP matched notes and bonds payable	0.06% - 8.25%		2013 - 2052		3,544		3,807
GIAs, at fair value^(b)	3.50% - 9.80%		2013 - 2047		6,501		7,964
Notes and bonds payable, at fair value^(b)	0.18% - 10.37%		2013 - 2053		1,554		2,316
Loans and mortgages payable, at fair value	–		–		–		486

Total AIG borrowings supported by assets	–		–		20,895		24,720

Total debt issued or guaranteed by AIG	–		–		46,361		48,643

Debt not guaranteed by AIG:
ILFC:
Notes and bonds payable, ECA Facility, bank financings and other secured financings	0.50% - 8.88%		2013 - 2025		–		23,365
Junior subordinated debt	4.54% - 6.25%		2065		–		999

Total ILFC debt^(c)	–		–		–		24,364

Other subsidiaries notes, bonds, loans and mortgages payable	0.24% - 8.29%		2013 - 2060		325		393

Debt of consolidated investments^(d)	0.03% - 7.15%		2013 - 2035		1,814		1,853

Total debt not guaranteed by AIG	–		–		2,139		26,610

Total long term debt	–		–	$	48,500	$	75,253

(a) We may currently redeem our 6.45% Series A-4 and our 7.7% Series A-5 junior subordinated debt at their respective principal amounts plus unpaid accrued interest on any of their respective interest payment dates. The remaining junior subordinated debt is subject to call options that range from 2017-2038 and if we do not exercise these call options, the interest rate will change from the referenced fixed interest rate to a floating rate. See further discussion under Junior Subordinated Debt below.

(b) DIB notes and bonds include structured debt instruments whose payment terms are linked to one or more financial or other indices (such as equity index or commodity index or another measure that is not considered to be clearly and closely related to the debt instrument). The DIB economically hedges its notes, bonds, and GIAs. As a result, certain of the interest rate or currency exposures are hedged with floating rate instruments so the stated rates may not reflect the all-in cost of funding after taking into account the related hedges.

(c) Excludes $24.3 billion of debt for ILFC at December 31, 2012 which has been reclassified to Liabilities of businesses held for sale.

(d) At December 31, 2012 and 2011, includes debt of consolidated investments held through AIG Global Real Estate Investment Corp., AIG Credit Corp. and SunAmerica of $1.5 billion, $176 million and $133 million and $1.5 billion, $233 million and $91 million, respectively.

The following table presents maturities of long-term debt (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, when applicable), excluding $1.8 billion in borrowings of consolidated investments:

			Year Ending


December 31, 2012 (in millions)			Year Ending
December 31, 2012 (in millions)	Total		2013		2014		2015		2016		2017		Thereafter

General borrowings:
Notes and bonds payable	$	14,084	$	1,469	$	500	$	999	$	1,738	$	1,455	$	7,923
Subordinated debt		250		–		–		250		–		–		–
Junior subordinated debt		9,416		–		–		–		–		–		9,416
Loans and mortgages payable		79		77		–		2		–		–		–
SAFG, Inc. notes and bonds payable		298		–		–		–		–		–		298
Liabilities connected to trust preferred stock		1,339		–		–		–		–		–		1,339

AIG general borrowings	$	25,466	$	1,546	$	500	$	1,251	$	1,738	$	1,455	$	18,976

Borrowings supported by assets:
MIP notes payable		9,296		851		1,613		1,021		1,329		3,971		511
Series AIGFP matched notes and bonds payable		3,544		3		–		–		–		–		3,541
GIAs, at fair value		6,501		380		585		601		321		260		4,354
Notes and bonds payable, at fair value		1,554		366		31		193		329		104		531
Loans and mortgages payable, at fair value		–		–		–		–		–		–		–

AIG borrowings supported by assets		20,895		1,600		2,229		1,815		1,979		4,335		8,937

Other subsidiaries notes, bonds, loans and mortgages payable		325		43		11		22		3		5		241

Total	$	46,686	$	3,189	$	2,740	$	3,088	$	3,720	$	5,795	$	28,154

Uncollateralized and collateralized notes, bonds, loans and mortgages payable consisted of the following:

At December 31, 2012 (in millions)	Uncollateralized Notes/Bonds/Loans Payable		Collateralized Loans and Mortgages Payable		Total



AIG general borrowings	$	79	$	–	$	79
Other subsidiaries notes, bonds, loans and mortgages payable^*		104		221		325

Total	$	183	$	221	$	404

* AIG does not guarantee any of these borrowings.

Junior Subordinated Debt

During 2007 and 2008, we issued an aggregate of $12.5 billion of junior subordinated debentures denominated in U.S. dollars, British Pounds and Euros in eight series of securities. In November 2011, we exchanged specified series of our outstanding junior subordinated debentures for newly issued senior notes pursuant to an exchange offer. In particular,we exchanged (i) $312 million aggregate principal amount of our outstanding Series A-1 Junior Subordinated Debentures for $256 million aggregate principal amount of our new 6.820% Dollar notes due November 15, 2037, (ii) £812 million ($1.26 billion at the December 31, 2011 exchange rate) aggregate principal amount of our outstanding Series A-2 and Series A-8 Junior Subordinated Debentures for £662 million ($1.03 billion at the December 31, 2011 exchange rate) aggregate principal amount of our new 6.765% Sterling notes due November 15, 2017 and (iii) €591 million ($766 million at the December 31, 2011 exchange rate) aggregate principal amount of our outstanding Series A-3 Junior Subordinated Debentures for €421 million ($545 million at the December 31, 2011 exchange rate) aggregate principal amount of our new 6.797% Euro notes due November 15, 2017. This exchange resulted in a pre-tax gain on extinguishment of debt of approximately $484 million, which is reflected in Net loss on extinguishment of debt in the Consolidated Statement of Operations and a deferred gain of $65 million, which will be amortized as a reduction to future interest expense.

In connection with the issuance of the eight series of junior subordinated debentures, we had entered into replacement capital covenants (the Original RCCs) for the benefit of the holders of "covered debt" (a designated series of our notes). The Original RCCs provided that we would not repay, redeem, or purchase the applicable series of junior subordinated debentures on or before a specified date, unless we issued certain replacement capital securities. In August 2012, we issued an aggregate of $250 million of 2.375% Subordinated Notes due 2015 (the Subordinated Notes), which upon their issuance became the "covered debt" under the Original RCCs. The holders of the newly issued Subordinated Notes, as the holders of the "covered debt" under the Original RCCs, consented to amendments to each of those Original RCCs that deleted all of the covenants that restricted our ability to repay, redeem or purchase the applicable series of the junior subordinated debentures.

We have entered into new replacement capital covenants (the New RCCs) for the initial benefit of the holders of the Subordinated Notes, in connection with our 5.75% Series A-2 Junior Subordinated Debentures and our 4.875% Series A-3 Junior Subordinated Debentures. We covenant in each New RCC that, subject to certain exceptions, we will not repay, redeem or purchase, and that none of our subsidiaries will purchase, the applicable series of junior subordinated debentures prior to the scheduled termination date of that New RCC, unless since the date 360 days prior to the date of that repayment, redemption or purchase, we have received a specified amount of net cash proceeds from the sale of common stock or certain other qualifying securities that have certain characteristics that are at least as equity-like as the applicable characteristics of the applicable series of junior subordinated debentures, or we or our subsidiaries have issued a specified amount of common stock in connection with the conversion or exchange of certain convertible or exchangeable securities.

We may currently redeem our 6.45% Series A-4 Junior Subordinated Debentures and our 7.70% Series A-5 Junior Subordinated Debentures, in whole or in part, at their respective principal amounts plus accrued and unpaid interest through the date of redemption.

Liabilities Connected To Trust Preferred Stock

In connection with our acquisition of SunAmerica Financial Group, Inc. (SAFG, Inc.) in 2001, we entered into arrangements with SAFG, Inc. with respect to outstanding SAFG, Inc. capital securities. In 1996, SAFG, Inc. issued capital securities through a trust to institutional investors and funded the trust with SAFG, Inc. junior subordinated debentures issued to the trust. SAFG, Inc. guaranteed payments to the holders of capital securities only to the extent (i) the trust received payments on the debentures and (ii) these payments were available for the trust to pay to holders of capital securities. In 2001, AIG Parent guaranteed the same payments to the holders of capital securities. Like the SAFG, Inc. guarantee, the AIG Parent guarantee only applies to any payments actually made to the trust in respect of the debentures. If no payments are made on the debentures, AIG Parent is not required to make any payments to the trust. AIG Parent also guaranteed the debentures pursuant to a guarantee that is expressly subordinated to certain SAFG, Inc. senior debt securities. Under the AIG Parent guarantee, AIG Parent is not required to make any payments in respect of the debentures if such payment would be prohibited by the subordination provisions of the debentures. As a result, AIG Parent will never be required to make a payment under its guarantee of the debentures for so long as SAFG, Inc. is prohibited from making a payment on the debentures.

At December 31, 2012, the preferred stock outstanding consisted of $300 million liquidation value of 8.5 percent preferred stock issued by American General Capital II in June 2000, $500 million liquidation value of 8.125 percent preferred stock issued by American General Institutional Capital B in March 1997 and $500 million liquidation value of 7.57 percent preferred stock issued by American General Institutional Capital A in December 1996.

Credit Facilities

On October 5, 2012, we terminated our previously outstanding $1.5 billion 364-Day syndicated credit facility and amended and restated the four-year syndicated credit facility that was entered into in October 2011 (the Previous Facility). The amended and restated four-year syndicated credit facility, the Four-Year Facility, provides for $4.0 billion of unsecured revolving loans (increased from $3.0 billion in the Previous Facility), which includes a $2.0 billion letter of credit sublimit (increased from $1.5 billion in the Previous Facility). The approximately $1.0 billion of previously issued letters of credit under the Previous Facility were rolled into the letter of credit sublimit within the Four-Year Facility. As a result, a total of approximately $3.0 billion remains available under the Four-Year Facility, of which approximately $1.0 billion remains available for letters of credit. We expect that we may draw down on the Four-Year Facility from time to time, and may use the proceeds for general corporate purposes. The Four Year Facility also provides for the issuance of letters of credit. The Four-Year Facility is summarized in the following table.

December 31, 2012 (in millions) Facility	Size		Available Amount



Four-Year Syndicated Credit Facility	$	4,000	$	3,037	October 2016	10/05/2012

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References+ Details

CONTINGENCIES, COMMITMENTS AND GUARANTEES

12 Months Ended

Dec. 31, 2012

CONTINGENCIES, COMMITMENTS AND GUARANTEES

CONTINGENCIES, COMMITMENTS AND GUARANTEES

16. 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 $783 million for the year ended December 31, 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 our 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 our 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.

We have accrued our 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 February 21, 2013, 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, we are 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.

On November 20, 2012, defendants filed motions to dismiss the consolidated amended complaint.

As of February 21, 2013, 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, we are unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

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 February 21, 2013 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, we are 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 SICO 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 (the SICO New York Action). 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 our controlling shareholder, 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.

In rulings dated July 2, 2012, and September 17, 2012, the Court of Federal Claims largely denied the United States' motion to dismiss in the SICO Treasury Action. Discovery is proceeding. On December 3, 2012, SICO moved for class certification.

On November 19, 2012, the Southern District of New York granted the FRBNY's motion to dismiss the SICO New York Action. On December 21, 2012, SICO filed a notice of appeal in the United States Court of Appeals for the Second Circuit.

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 SICO Treasury Action, and seeks a contingent offset or recoupment for the value of net operating loss benefits the United States alleges that we received as a result of the government's assistance. The FRBNY has also requested indemnification under the FRBNY Credit Facility from AIG in connection with the SICO New York Action and from ML III under the Master Investment and Credit Agreement and the Amended and Restated Limited Liability Company Agreement of ML III.

In both of the actions commenced by SICO, the only claims naming AIG as a party (nominal defendant) are derivative claims on behalf of AIG. On September 21, 2012, SICO made a pre-litigation demand on our Board demanding that we pursue the derivative claims in both actions or allow SICO to pursue the claims on our behalf. On January 9, 2013, our Board unanimously refused SICO's demand in its entirety and on January 23, 2013, counsel for the Board sent a letter to counsel for SICO describing the process by which our Board considered and refused SICO's demand and stating the reasons for our Board's determination.

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 December 31, 2012, the estimated present value of expected future cash flows discounted at LIBOR was $1.5 billion, which represents our maximum contractual loss from the alleged termination of the contract. It is our 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 a loss of our entitlement to all future payments under the swap agreement and result in a loss to us of the full value at which we are 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 our loss 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 sought the payment of carried interest or "promote" distributed through the SPEs, based on the sales of certain real estate assets. Behm also contended that he was entitled to promote as a third-party beneficiary of Kevin Fitzpatrick's employment agreement, which, Behm claimed, defined broadly a class of individuals, allegedly including himself, who, with the approval of our former Chief Investment Officer, became eligible to receive promote payments. Behm claimed 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.

On November 16, 2012, the arbitration panel ruled on Behm's claims that had been submitted to arbitration (the Award). Pursuant to the Award, on December 15, 2012, the AIG Entities paid Behm approximately $10.5 million in full settlement of all claims submitted to the arbitration, with the exception that Behm retained rights to certain future profit interests. The AIG Entities also paid Behm a portion of the fees and costs of the arbitration.

The Delaware Superior Court action is currently in discovery, and Behm has not articulated the specific amounts of money that he claims are due. As a result, we are unable to reasonably estimate the possible loss or range of losses, if any, arising from the litigation.

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 us on July 11, 2011. The Relators have not specified in their amended complaint an amount of alleged damages. As a result, we are unable reasonably to 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 December 31, 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 our 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. Pursuant to the settlement, 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. As of December 5, 2012, the Third Circuit had dismissed all appeals from the District Court order granting final approval of the settlement. On January 16, 2013, class plaintiffs filed a motion in the District Court seeking an order authorizing distribution of the settlement fund.

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. Two consolidated actions naming AIG defendants 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. As of February 21, 2013, the plaintiff in Avery Dennison Corp. v. Marsh & McLennan Companies, Inc. (Avery), the other 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 (the Northern District of Illinois) against us 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 our 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 Northern District of Illinois grant our 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 Northern District of Illinois entered a final order and judgment approving a class action settlement between us 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 our actual exposure, should the class action continue through judgment, to be in excess of $3 billion. We dispute this allegation. Liberty Mutual and its subsidiaries Safeco and Ohio Casualty subsequently appealed the Northern District of Illinois' final order and judgment to the United States Court of Appeals for the Seventh Circuit (the Seventh Circuit). On January 10, 2013, AIG and Liberty Mutual entered into a settlement under which Liberty Mutual, Safeco and Ohio Casualty agreed voluntarily to withdraw their appeals. In furtherance of such settlement, AIG, the Liberty Mutual parties and the settlement class plaintiffs submitted an agreed stipulation of dismissal that is currently under review by the Seventh Circuit.

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 settlement between AIG and Liberty Mutual is not approved, the appeal of the order and judgment approving the class action settlement may resume. As of December 31, 2012, we had 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.

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, remaining inquiries, other regulatory activity or litigation could result in the payment of additional amounts. AIG has also received a demand letter from a purported AIG shareholder requesting that the Board of Directors investigate these matters, and bring appropriate legal proceedings against any person identified by the investigation as engaging in misconduct. 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.

In connection with the previously disclosed multi-state examination of certain accident and health products, including travel products, issued by National Union Fire Insurance Company of Pittsburgh, Pa. (National Union), Chartis Inc., on behalf of itself, National Union, and certain of Chartis Inc.'s insurance and non-insurance companies (collectively, the Chartis parties) entered into a Regulatory Settlement Agreement with regulators from 50 U.S. jurisdictions effective November 29, 2012. Under the agreement, and without admitting any liability for the issues raised in the examination, the Chartis parties (i) paid a civil penalty of $50 million, (ii) entered 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 issues identified in the examination, and (iii) agreed to pay a contingent fine in the event that the Chartis parties fail to satisfy certain terms of the corrective action plan. 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. There can be no assurance that any regulatory action resulting from the issues identified will not have a material adverse effect on AIG's ongoing operations of the business subject to the agreement, or on similar business written by other AIG carriers.

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. In 2011, the 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 agreed to toll the deadlines associated with the CID pending discussions that could resolve the investigation. Although UGC filed a petition to modify the CID on December 7, 2012, ending the tolling period, the discussions that could resolve the investigation are still ongoing. 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 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 we regularly review the adequacy of the established Liability for unpaid claims and claims adjustment expense, there can be no assurance that our loss reserves will not develop adversely and have a material adverse effect on our results of operations. Estimation of ultimate net losses, loss expenses and loss reserves is a complex process, particularly for long-tail casualty lines of business, which include, but are not limited to, general liability, commercial automobile liability, environmental, 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 identified 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.

Lease Commitments

We occupy leased space in many locations under various long-term leases and have entered into various leases covering the long-term use of data processing equipment.

The following table presents the future minimum lease payments under operating leases:

(in millions)



2013	$	390
2014		282
2015		207
2016		171
2017		138
Remaining years after 2017		310

Total	$	1,498

Rent expense was $445 million, $482 million and $587 million for the years ended December 31, 2012, 2011 and 2010, respectively. These amounts include $16 million, $37 million and $129 million attributable to discontinued operations for the years ended December 31, 2012, 2011 and 2010, respectively.

Flight Equipment Related to Business Held for Sale

At December 31, 2012, ILFC had committed to purchase 229 new aircraft with aggregate estimated total remaining payments of approximately $17.5 billion, including four aircraft through sale-leaseback transactions with airlines deliverable from 2012 through 2019. ILFC had also committed to purchase five 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. These commitments are related to discontinued operations and will not be retained by AIG upon closing of the sale. See Note 4 herein, for a discussion of the ILFC transaction.

The following table presents the minimum future rental income on noncancelable operating leases of flight equipment that has been delivered:

(in millions)



2013	$	3,854
2014		3,344
2015		2,631
2016		2,001
2017		1,347
Remaining years after 2017		1,628

Total	$	14,805

Flight equipment is leased under operating leases with remaining terms ranging from one to fourteen years.

Other Commitments

In the normal course of business, we enter into commitments to invest in limited partnerships, private equity funds, hedge funds and mutual funds and to purchase and develop real estate in the U.S. and abroad. These commitments totaled $2.3 billion at December 31, 2012.

Guarantees

Subsidiaries

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

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 December 31, 2012 was $306 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

We are subject to financial guarantees and indemnity arrangements in connection with the completed sales of businesses pursuant to our 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 us. 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.

We are unable to develop a reasonable estimate of the maximum potential payout under certain of these arrangements. Overall, we believe 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 4 herein for additional information on sales of businesses and asset dispositions.

ALICO Sale

Pursuant to the terms of the ALICO stock purchase agreement, we have agreed to provide 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 December 31, 2012, approximately $567 million of proceeds from the sale of ALICO were on deposit in an escrow arrangement. Under the terms of a letter agreement between MetLife and us entered into on April 26, 2012, $44 million was released to us on April 30, 2012 which represented funds that were initially held back from the release of escrow to us on November 1, 2011. Under the terms of a letter agreement between MetLife and us entered into on July 13, 2012, $950 million was released to us on August 31, 2012 instead of November 1, 2012 as originally provided under the ALICO stock purchase agreement. An additional $33 million was released on November 8, 2012. 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 us.

Other

•: See Note 11 herein for commitments and guarantees associated with VIEs.
•: See Note 12 herein for disclosures on derivatives.
•: See Note 27 herein for additional disclosures on guarantees of outstanding debt.

TOTAL EQUITY

12 Months Ended

Dec. 31, 2012

TOTAL EQUITY

TOTAL EQUITY

17. TOTAL EQUITY

Shares Outstanding

The following table presents a rollforward of outstanding shares:

	Preferred Stock


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

Year Ended December 31, 2010
Shares, beginning of year		400,000			300,000			100,000			–			141,732,263		(6,661,356	)		135,070,907
Issuances		–			–			–			–			5,391,804		–			5,391,804
Shares exchanged		–			–			–			–			–		448			448

Shares, end of year		400,000			300,000			100,000			–			147,124,067		(6,660,908	)		140,463,159

Year Ended December 31, 2011
Shares, beginning of year		400,000			300,000			100,000			–			147,124,067		(6,660,908	)		140,463,159
Issuances		–			–			–			20,000			100,799,653		–			100,799,653
Settlement of equity unit stock purchase contracts		–			–			–			–			3,606,417		–			3,606,417
Shares exchanged^*		(400,000	)		(300,000	)		(100,000	)		–			1,655,037,962		(11,678	)		1,655,026,284
Shares purchased		–			–			–			–			–		(3,074,031	)		(3,074,031	)
Shares cancelled		–			–			–			(20,000	)		–		–			–

Shares, end of year		–			–			–			–			1,906,568,099		(9,746,617	)		1,896,821,482

Year Ended December 31, 2012
Shares, beginning of year		–			–			–			–			1,906,568,099		(9,746,617	)		1,896,821,482
Issuances		–			–			–			–			43,581		685,727			729,308
Shares purchased		–			–			–			–			–		(421,228,855	)		(421,228,855	)

Shares, end of year		–			–			–			–			1,906,611,680		(430,289,745	)		1,476,321,935

Preferred Stock and Recapitalization

At December 31, 2010, a total of $7.5 billion was outstanding under the Department of the Treasury's commitment (the Department of the Treasury Commitment (Series F)) pursuant to the Securities Purchase Agreement, dated as of April 17, 2009 (the Series F SPA), between AIG and the Department of the Treasury relating to our the Series F Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share (the Series F Preferred Stock). On January 14, 2011, we completed the Recapitalization in which the Series C Perpetual, Convertible, Participating Preferred Stock, par value $5.00 per share (the Series C Preferred Stock), Series E Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share (the Series E Preferred Stock) and the Series F Preferred Stock were exchanged for AIG Common Stock and the Series G Cumulative Mandatory Convertible Preferred Stock, par value $5.00 per share (the Series G Preferred Stock) was issued. In connection with the Recapitalization, we repaid all amounts outstanding under the FRBNY Credit Facility. In connection with the May 2011 AIG Common Stock Offering (described below under AIG Common Stock Offerings by the Department of the Treasury and AIG Purchases of Shares), the Series G Preferred Stock was cancelled.

The following table presents the principal Consolidated Balance Sheet line items affected by the Recapitalization on January 14, 2011, further described in Note 25 herein:

	Effect of Recapitalization


Increase (Decrease) (in millions)	Repayment and Termination of FRBNY Credit Facility^(a)			Repurchase and Exchange of SPV Preferred Interests			Exchange of Preferred Stock for Common Stock^(c)			Total Effect of Recapitalization

Other assets	$	(24,297	)	$	(6,140	)^(b)	$	–		$	(30,437	)
Other liabilities		(325	)		–			–			(325	)
Federal Reserve Bank of New York credit facility		(20,689	)		–			–			(20,689	)
Redeemable noncontrolling nonvoting, callable, junior preferred interests held by Department of Treasury		–			20,292			–			20,292
AIG shareholders' equity:
Preferred stock
Series C preferred stock		–			–			(23,000	)		(23,000	)
Series E preferred stock		–			–			(41,605	)		(41,605	)
Series F preferred stock		–			20,292			(7,378	)		(7,378	)
					(20,292	)
Series G preferred stock; 20,000 shares issued; liquidation value $0^(d)		–			–			–			–
Common stock		–			–			4,138			4,138
Additional paid-in capital		–			–			67,845			67,845
Retained Earnings		(3,283	)		–			–			(3,283	)
Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York		–			(26,432	)		–			(26,432	)
Shares outstanding								1,655,037,962			1,655,037,962

(a) Repayment and Termination of the FRBNY Credit Facility – Funds held in escrow and included in Other assets from the AIA IPO and the ALICO sale were used to repay the FRBNY Credit Facility. The adjustments to Other assets and Accumulated deficit reflects the write-off of the unamortized portion of the net prepaid commitment fee asset.

(b) Repurchase and Exchange of SPV Preferred Interests – We used remaining net cash proceeds from the AIA IPO and the ALICO sale to pay down a portion of the liquidation preference on the SPV Preferred Interests held by the FRBNY and drew down approximately $20.3 billion under the Department of the Treasury Commitment (Series F) to repurchase the FRBNY's remaining SPV Preferred Interests, which we then transferred to the Department of the Treasury as part of the consideration for the exchange of the Series F Preferred Stock.

(c) Exchange of our Series C, E and F Preferred Stock for AIG Common Stock. The adjustments represent the exchange of Series C Preferred Stock, Series E Preferred Stock, and Series F Preferred Stock for AIG Common Stock. As a result of the Recapitalization, the Department of the Treasury acquired 1,655,037,962 shares of newly issued AIG Common Stock.

(d) In connection with the May 2011 AIG Common Stock offering and sale, the Series G Preferred Stock was cancelled.

The following table presents a rollforward of preferred stock:

(in millions)	AIG Series E			AIG Series F			AIG Series C			Total Preferred Stock



Balance, January 1, 2010	$	41,605		$	5,179		$	23,000		$	69,784
AIG Series F drawdown		–			2,199			–			2,199

Balance, December 31, 2010	$	41,605		$	7,378		$	23,000		$	71,983

Shares Exchanged		(41,605	)		(7,378	)		(23,000	)		(71,983	)

Balance, December 31, 2011	$	–		$	–		$	–		$	–

Shares Exchanged		–			–			–			–

Balance, December 31, 2012	$	–		$	–		$	–		$	–

Dividends

Payment of future dividends to our shareholders depends in part on the regulatory framework that will ultimately be applicable to us, including our status as a savings and loan holding company under Dodd-Frank and whether we are determined to be a SIFI. In addition, dividends will be payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available therefor. In considering whether to pay a dividend or purchase shares of AIG Common Stock, our Board of Directors will take into account such matters as our financial position, the performance of our businesses, our 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 our subsidiaries, rating agency considerations, including the potential effect on our debt ratings, and such other factors as our Board may deem relevant. We did not pay any cash dividends in 2011 or 2012.

Share Issuances and Repurchases

AIG Common Stock Offerings by the Department of the Treasury and AIG Purchases of AIG Common Stock in 2012

Through registered public offerings, the Department of the Treasury has disposed of all of its ownership of AIG Common Stock as of December 31, 2012, from ownership of 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. 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), September 14 (the September Offering) and December 14 (the December Offering). We participated as a purchaser in the first four 2012 offerings.

The following table presents certain information relating to these offerings:

			U.S. Treasury				AIG^*


(dollars in millions, except share-price data)			U.S. Treasury				AIG^*
(dollars in millions, except share-price data)	Price		Shares Sold		Amount		Shares Purchased		Amount

May 2011 Offering	$	29.00		200,000,000	$	5,800		–	$	–
2012 Offerings:
March Offering		29.00		206,896,552		6,000		103,448,276		3,000
May Offering		30.50		188,524,589		5,750		65,573,770		2,000
August Offering		30.50		188,524,590		5,750		98,360,656		3,000
September Offering		32.50		636,923,075		20,700		153,846,153		5,000
December Offering		32.50		234,169,156		7,610		–		–

				1,655,037,962	$	51,610		421,228,855	$	13,000

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

Each of these purchases was authorized by our Board of Directors. At December 31, 2012, our Board had not authorized any additional purchases. Potential future purchases of our shares will depend in part on the regulatory framework that will ultimately be applicable to us. This framework will depend on, among other things, our capital requirements as a savings and loan holding company under Dodd-Frank and whether we are determined to be a SIFI.

AIG Common Stock Purchases in 2011

In November 2011, our Board of Directors authorized the purchase of shares of AIG Common Stock, with an aggregate purchase amount of up to $1 billion from time to time in the open market, through derivative or automatic purchase contracts or otherwise. This authorization replaced all prior AIG Common Stock purchase authorizations. We purchased a total of 3,074,031 shares of AIG Common Stock for approximately $70 million in 2011.

Equity Units

In May 2008, we sold 78.4 million equity units (the Equity Units) at a price per unit of $75 for gross proceeds of $5.88 billion. The Equity Units included a stock purchase contract obligating the holder of an Equity Unit to purchase, and obligating AIG to sell, a variable number of shares of AIG Common Stock for $25 in cash.

We were obligated to pay quarterly contract adjustment payments to the holders of the stock purchase contracts under the Equity Units, at an initial annual rate of 2.71 percent applied to the stated amount. The present value of the contract adjustment payments, $431 million, was recognized at inception as a liability (a component of Other liabilities), and was recorded as a reduction to Additional paid-in capital.

In addition to the stock purchase contracts, as part of the Equity Units, we issued $1.96 billion of each of the Series B-1, B-2 and B-3 junior subordinated debentures, which initially paid interest at rates of 5.67 percent, 5.82 percent and 5.89 percent, respectively.

The junior subordinated debentures were recorded as Other long-term debt in the Consolidated Balance Sheet. The principal amount we owed on the subordinated debentures was equal to the amount owed to us under the related stock purchase contract.

On November 23, 2010, we commenced an offer to exchange up to 74,480,000 of our Equity Units for consideration per Equity Unit equal to 0.09867 share of AIG Common Stock plus $3.2702 in cash (the Exchange Offer). The stock and cash received was the result of netting payments from two separate transactions, a repurchase of the subordinated debentures and a cancellation of the stock purchase contracts.

On November 29, 2010, holders of 49,474,600 Equity Units accepted the Exchange Offer and their units were tendered in exchange for 4,881,667 shares of AIG Common Stock and $162 million in cash. Following the completion of the exchange offer, a total of 28,925,400 Equity Units remained outstanding. The execution of the Exchange Offer resulted in a loss on the extinguishment of the subordinated debentures of approximately $104 million and an increase to equity of approximately $3.7 billion.

In 2011, we remarketed the three series of debentures included in the Equity Units. We purchased and retired all of the Series B-1, B-2 and B-3 Debentures representing $2.2 billion in aggregate principal and as of December 31, 2011, we had issued approximately 1.8 billion shares of AIG Common Stock in connection with the settlement of the stock purchase contracts underlying the Equity Units.

Accumulated Other Comprehensive Income (Loss)

The following table presents a rollforward of Accumulated other comprehensive income (loss):

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized			Unrealized Appreciation (Depreciation) of All Other Investments			Foreign Currency Translation Adjustments			Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities			Change in Retirement Plan Liabilities Adjustment			Total



Balance, January 1, 2010, net of tax	$	(1,785	)	$	7,829		$	2,249		$	(128	)	$	(1,144	)	$	7,021
Cumulative effect of change in accounting principle		(76	)		(168	)		(688	)		–			–			(932	)
Change in unrealized appreciation of investments		2,645			7,265			–			–			–			9,910
Change in deferred acquisition costs adjustment and other		(166	)		(491	)		–			–			–			(657	)
Change in foreign currency translation adjustments		–			–			654			–			–			654
Change in net derivative losses arising from cash flow hedging activities		–			–			–			105			–			105
Net actuarial loss		–			–			–			–			(1	)		(1	)
Prior service credit		–			–			–			–			10			10
Change attributable to divestitures and deconsolidations		43			(2,854	)		(2,357	)		6			290			(4,872	)
Deferred tax asset (liability)		(1,293	)		(1,627	)		775			(17	)		(24	)		(2,186	)

Total other comprehensive income (loss)		1,229			2,293			(928	)		94			275			2,963
Acquisition of noncontrolling interest		–			–			–			–			–			–
Noncontrolling interests		2			99			80			–			–			181

Balance, December 31, 2010, net of tax	$	(634	)	$	9,855		$	553		$	(34	)	$	(869	)	$	8,871

Change in unrealized appreciation of investments		55			5,463			–			–			–			5,518
Change in deferred acquisition costs adjustment and other(a)		11			(641	)		–			–			–			(630	)
Change in future policy benefits(b)		–			(2,302	)		–			–			–			(2,302	)
Change in foreign currency translation adjustments		–			–			(97	)		–			–			(97	)
Change in net derivative losses arising from cash flow hedging activities		–			–			–			51			–			51
Net actuarial loss		–			–			–			–			(752	)		(752	)
Prior service credit		–			–			–			–			387			387
Change attributable to divestitures and deconsolidations		23			(3,643	)		(1,681	)		–			260			(5,041	)
Deferred tax asset (liability)		(163	)		(362	)		786			(34	)		35			262

Total other comprehensive income (loss)		(74	)		(1,485	)		(992	)		17			(70	)		(2,604	)
Acquisition of noncontrolling interest		–			45			66			–			(18	)		93
Noncontrolling interests		3			(160	)		36			–			–			(121	)

Balance, December 31, 2011, net of tax	$	(711	)	$	8,575		$	(409	)	$	(17	)	$	(957	)	$	6,481

Change in unrealized appreciation of investments		2,306			8,404			–			–			–			10,710
Change in deferred acquisition costs adjustment and other		(49	)		(840	)		–			–			–			(889	)
Change in future policy benefits		(85	)		(432	)		–			–			–			(517	)
Change in foreign currency translation adjustments		–			–			(33	)		–			–			(33	)
Change in net derivative gains (losses) arising from cash flow hedging activities		–			–			–			33			–			33
Net actuarial loss		–			–			–			–			(273	)		(273	)
Prior service credit		–			–			–			–			(46	)		(46	)
Deferred tax asset (liability)		(886	)		(2,252	)		33			(16	)		232			(2,889	)

Total other comprehensive income (loss)		1,286			4,880			–			17			(87	)		6,096
Noncontrolling interests		–			9			(6	)		–			–			3

Balance, December 31, 2012, net of tax	$	575		$	13,446		$	(403	)	$	–		$	(1,044	)	$	12,574

(a) Includes the pre-tax adjustment to Accumulated other comprehensive income related to a $152 million reduction of deferred acquisition costs as a consequence of the recognition of additional policyholder benefit reserves disclosed below.

(b) The adjustment to policyholder benefit reserves assumes that the unrealized appreciation on available for sale securities is actually realized and that the proceeds are reinvested at lower yields.

As a result of divestitures in 2010, $1.8 billion of Foreign currency cumulative translation adjustment and $6.1 billion of Unrealized appreciation of investments were transferred to earnings as net gain on sale.

The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2012, 2011 and 2010:

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized			Unrealized Appreciation (Depreciation) of All Other Investments			Foreign Currency Translation Adjustments			Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities			Change in Retirement Plan Liabilities Adjustment			Total



December 31, 2010
Unrealized change arising during period	$	2,469		$	9,270		$	654		$	(25	)	$	(89	)	$	12,279
Less: Reclassification adjustments included in net income		(53	)		5,350			2,357			(136	)		(388	)		7,130

Total other comprehensive income (loss), before income tax expense (benefit)		2,522			3,920			(1,703	)		111			299			5,149
Less: Income tax expense (benefit)		1,293			1,627			(775	)		17			24			2,186

Total other comprehensive income (loss), net of income tax expense (benefit)	$	1,229		$	2,293		$	(928	)	$	94		$	275		$	2,963

December 31, 2011
Unrealized change arising during period	$	84		$	4,222		$	(97	)	$	(5	)	$	(440	)	$	3,764
Less: Reclassification adjustments included in net income		(5	)		5,345			1,681			(56	)		(335	)		6,630

Total other comprehensive income (loss), before income tax expense (benefit)		89			(1,123	)		(1,778	)		51			(105	)		(2,866	)
Less: Income tax expense (benefit)		163			362			(786	)		34			(35	)		(262	)

Total other comprehensive income (loss), net of income tax expense (benefit)	$	(74	)	$	(1,485	)	$	(992	)	$	17		$	(70	)	$	(2,604	)

December 31, 2012
Unrealized change arising during period	$	2,236		$	8,896		$	(33	)	$	(2	)	$	(406	)	$	10,691
Less: Reclassification adjustments included in net income		64			1,764			–			(35	)		(87	)		1,706

Total other comprehensive income, before income tax expense (benefit)		2,172			7,132			(33	)		33			(319	)		8,985
Less: Income tax expense (benefit)		886			2,252			(33	)		16			(232	)		2,889

Total other comprehensive income, net of income tax expense (benefit)	$	1,286		$	4,880		$	–		$	17		$	(87	)	$	6,096

- 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 Standards Codification

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

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-Section 02

-Paragraph 29, 30, 31

-Article 5

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

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

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

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-Article 4

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

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-Name Staff Accounting Bulletin (SAB)

-Number Topic 4

-Section C

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

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-Name Accounting Research Bulletin (ARB)

-Number 43

-Section B

-Paragraph 7, 11A

-Chapter 1

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

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

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

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

Reference 15: 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 16: http://www.xbrl.org/2003/role/presentationRef

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+ Details

NONCONTROLLING INTERESTS

12 Months Ended

Dec. 31, 2012

NONCONTROLLING INTERESTS

NONCONTROLLING INTERESTS

18. NONCONTROLLING INTERESTS

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

Year Ended December 31, 2012
Balance, beginning of year	$	8,427		$	96		$	8,523		$	–		$	855		$	855

Repayment to Department of the Treasury		(8,635	)		–			(8,635	)		–			–			–
Net contributions (distributions)		–			36			36			–			(87	)		(87	)
Consolidation (deconsolidation)		–			68			68			–			(27	)		(27	)
Comprehensive income:
Net income		208			14			222			–			40			40
Other comprehensive income (loss), net of tax:
Unrealized gains on investments		–			4			4			–			5			5
Foreign currency translation adjustments		–			–			–			–			(6	)		(6	)

Total other comprehensive income (loss), net of tax		–			4			4			–			(1	)		(1	)

Total comprehensive income		208			18			226			–			39			39

Other		–			116			116			–			(113	)		(113	)

Balance, end of year	$	–		$	334		$	334		$	–		$	667		$	667

Year Ended December 31, 2011
Balance, beginning of year	$	–		$	434		$	434		$	26,358		$	1,562		$	27,920
Repurchase of SPV preferred interests in connection with Recapitalization		–			–			–			(26,432	)		–			(26,432	)
Exchange of consideration for preferred stock in connection with Recapitalization		20,292			–			20,292			–			–			–
Repayment to Department of the Treasury		(12,425	)		–			(12,425	)		–			–			–
Net distributions		–			(21	)		(21	)		–			(8	)		(8	)
Deconsolidation		–			(307	)		(307	)		–			(123	)		(123	)
Acquisition of noncontrolling interest		–			–			–			–			(489	)		(489	)
Comprehensive income (loss):
Net income (loss)		560			(8	)		552			74			82			156
Other comprehensive income (loss), net of tax:
Unrealized losses on investments		–			(2	)		(2	)		–			(155	)		(155	)
Foreign currency translation adjustments		–			–			–			–			36			36

Total other comprehensive income (loss), net of tax		–			(2	)		(2	)		–			(119	)		(119	)

Total comprehensive income (loss)		560			(10	)		550			74			(37	)		37

Other		–			–			–			–			(50	)		(50	)

Balance, end of year	$	8,427		$	96		$	8,523		$	–		$	855		$	855

Redeemable noncontrolling interest

Nonvoting, callable, junior preferred interests held by the Department of Treasury represented preferred interests in the AIA SPV and ALICO SPV. In connection with the execution of our orderly asset disposition plan, as well as the repayment of the FRBNY Credit Facility, we transferred two of our wholly owned businesses, AIA and ALICO, to two newly created SPVs in exchange for all the common and preferred interests (the SPV Preferred Interests) of those SPVs. On December 1, 2009, AIG transferred the SPV Preferred Interests to the FRBNY in consideration for a $25 billion reduction of the outstanding loan balance and of the maximum amount of credit available under the FRBNY Credit Facility and amended the terms of the FRBNY Credit Facility. As part of the closing of the Recapitalization, the remaining SPV Preferred Interests, with an aggregate liquidation preference of approximately $20.3 billion at January 14, 2011, were purchased from the FRBNY by AIG and transferred to the Department of the Treasury as part of the consideration for the exchange of Series F Preferred Stock. Under the terms of the SPVs' limited liability company agreements, the SPVs generally may not distribute funds to us until the liquidation preferences and preferred returns on the respective SPV Preferred Interests had been repaid in full and concurrent distributions had been made on certain participating returns attributable to the respective SPV Preferred Interests. In connection with the Recapitalization, we agreed to cause the proceeds of certain asset dispositions to be used to pay down the remaining SPV Preferred Interests.

The common interests, which we retained, entitled us to 100 percent of the voting power of the SPVs. The voting power allowed us to elect the boards of managers of the SPVs, who oversaw the management and operation of the SPVs. Primarily due to the substantive participation rights of the SPV Preferred Interests, the SPVs were determined to be VIEs. As the primary beneficiary of the SPVs, we consolidated the SPVs.

As a result of the closing of the Recapitalization on January 14, 2011, the SPV Preferred Interests held by the Department of the Treasury were no longer considered permanent equity on our Consolidated Balance Sheet, and were classified as redeemable non-controlling interests. As part of the Recapitalization, we used approximately $6.1 billion of the cash proceeds from the sale of ALICO to pay down a portion of the liquidation preference of the SPV Preferred Interests. The liquidation preference of the SPV Preferred Interests was further reduced by approximately $12.4 billion using proceeds from the sale of AIG Star, AIG Edison, Nan Shan, and MetLife securities received in the sale of ALICO. During the first quarter of 2011, the remaining liquidation preference of the ALICO SPV Preferred Interests was paid in full.

The SPV Preferred Interests were measured at fair value on their issuance date. The SPV Preferred Interests initially had a liquidation preference of $25 billion and had a preferred return of five percent per year compounded quarterly through September 22, 2013 and nine percent thereafter. The preferred return is reflected in Income (loss) from continuing operations attributable to noncontrolling interests – Nonvoting, callable, junior and senior preferred interests in the Consolidated Statement of Operations. The difference between the SPV Preferred Interests' fair value and the initial liquidation preference was amortized and included in Net income (loss) from continuing operations attributable to noncontrolling interests – Nonvoting, callable, junior and senior preferred interests.

During the first quarter of 2012, the liquidation preference of the AIA SPV Preferred Interests was paid down in full. See Note 16 herein for a discussion of indemnity payments made to MetLife pursuant to the terms of the ALICO stock purchase agreement.

Non-redeemable noncontrolling interests

Non-redeemable noncontrolling interests include the equity interests of third-party shareholders in our consolidated subsidiaries and includes the preferred shareholders' equity in outstanding preferred stock of ILFC, a wholly-owned subsidiary that is held for sale at December 31, 2012. The preferred stock in ILFC consists of 1,000 shares of market auction preferred stock (MAPS) in two series (Series A and B) of 500 shares each. Each of the MAPS shares has a liquidation value of $100,000 per share and is not convertible. Dividends on the MAPS are accounted for as a reduction of the noncontrolling interest. The dividend rate, other than the initial rate, for each dividend period for each series is reset approximately every seven weeks (49 days) on the basis of orders placed in an auction, provided such auctions are able to occur. At December 31, 2012, there is no ability to conduct such auctions; therefore, the MAPS certificate of determination dictates that a maximum applicable rate, as defined in the certificate of determination, be paid on the MAPS. At December 31, 2012, the dividend rate for each of the Series A and Series B MAPS was 0.50 percent and 0.36 percent respectively.

For the years ended December 31, 2012 and 2011, the Noncontrolling interests balance declined by $188 million and $707 million, respectively. In 2012, this decline was primarily caused by an adjustment for the reclassification of noncontrolling interest from permanent to temporary and acquisitions of noncontrolling interests in 2012. In 2011, the decline in noncontrolling interest balance was mostly due to the acquisition of Fuji's noncontrolling interest.

- 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)

12 Months Ended

Dec. 31, 2012

EARNINGS (LOSS) PER SHARE (EPS)

EARNINGS (LOSS) PER SHARE (EPS)

19. 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.

In connection with the issuance of the Series C Preferred Stock, we applied the two-class method for calculating EPS. The two-class method is an earnings allocation method for computing EPS when a company's capital structure includes either two or more classes of common stock or common stock and participating securities. This method determines EPS based on dividends declared on common stock and participating securities (i.e., distributed earnings), as well as participation rights of participating securities in any undistributed earnings. The Series C Preferred Stock was retired as part of the Recapitalization on January 14, 2011.

We applied the two-class method due to the participation rights of the Series C Preferred Stock through January 14, 2011. However, application of the two-class method had no effect on earnings per share for 2011 because we recognized a net loss attributable to AIG common shareholders from continuing operations, which is not applicable to participating stock for EPS, for 2011. Subsequent to January 14, 2011, we have not had any outstanding participating securities that would subject us to the two-class method.

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





Years Ended December 31, (dollars in millions, except per share data)
	2012			2011			2010

Numerator for EPS:
Income from continuing operations	$	7,752		$	19,540		$	13,254
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		208			634			1,818
Other		54			54			354

Total net income from continuing operations attributable to noncontrolling interests		262			688			2,172

Net income attributable to AIG from continuing operations		7,490			18,852			11,082

Income (loss) from discontinued operations	$	(4,052	)	$	1,790		$	(969	)
Net income from discontinued operations attributable to noncontrolling interests		–			20			55

Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS		(4,052	)		1,770			(1,024	)

Deemed dividends to AIG Series E and F Preferred Stock		–			(812	)		–
Income (loss) allocated to the Series C Preferred Stock – continuing operations		–			–			(8,828	)
Net income attributable to AIG common shareholders from continuing operations, applicable to common stock for EPS	$	7,490		$	18,040		$	2,254

Income (loss) allocated to the Series C Preferred Stock – discontinued operations		–			–			816
Net income (loss) attributable to AIG common shareholders from discontinued operations, applicable to common stock for EPS	$	(4,052	)	$	1,770		$	(208	)

Denominator for EPS:
Weighted average shares outstanding – basic		1,687,197,038			1,799,385,757			136,585,844
Dilutive shares		29,603			72,740			63,436

Weighted average shares outstanding – diluted*		1,687,226,641			1,799,458,497			136,649,280

EPS attributable to AIG common shareholders:
Basic and diluted:
Income from continuing operations	$	4.44		$	10.03		$	16.50
Income (loss) from discontinued operations	$	(2.40	)	$	0.98		$	(1.52	)

* Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, and the warrants issued to the Department of the Treasury in 2009. The number of shares excluded from diluted shares outstanding were 78 million, 76 million and 11 million for the years ended December 31, 2012, 2011 and 2010, respectively, because the effect would have been anti-dilutive.

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 consisted of 1,092,169,866 shares of AIG Common Stock, $20.2 billion of AIA SPV Preferred Interests and ALICO SPV Preferred Interests, and a liability for a commitment by us to pay the Department of the Treasury's costs to dispose of all of its shares, over
•: the carrying value of the Series E Preferred Stock and Series F Preferred Stock.

The fair value of the AIG Common Stock issued for the 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 Note 25 herein for further discussion of shares exchanged in connection with the Recapitalization.

- Definition

The entire disclosure for earnings per share.

+ References+ Details

STATUTORY FINANCIAL DATA AND RESTRICTIONS

12 Months Ended

Dec. 31, 2012

STATUTORY FINANCIAL DATA AND RESTRICTIONS

STATUTORY FINANCIAL DATA AND RESTRICTIONS

20. STATUTORY FINANCIAL DATA AND RESTRICTIONS

The following table presents statutory surplus and net income (loss) for our property casualty and life insurance and retirement services operations in accordance with statutory accounting practices:




(in millions)	2012		2011		2010

At December 31,
Statutory surplus(a):
Property casualty(b)	$	40,111	$	40,215
Life insurance and retirement services		14,692		14,184

Years Ended December 31,
Statutory net income (loss)(a)(c):
Property casualty	$	3,855	$	2,330	$	471
Life insurance and retirement services		3,827		797		794

(a) Excludes discontinued operations and other divested businesses. Statutory surplus and net income (loss) with respect to foreign operations are estimated at November 30.

(b) The 2011 amount was increased by $917 million for Property casualty and decreased $267 million for Life insurance and retirement services.

Our insurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by domestic and foreign insurance regulatory authorities. The principal differences between statutory financial statements and financial statements prepared in accordance with U.S. GAAP for domestic companies are that statutory financial statements do not reflect DAC, some bond portfolios may be carried at amortized cost, investment impairments are determined in accordance with statutory accounting practices, assets and liabilities are presented net of reinsurance, policyholder liabilities are generally valued using more conservative assumptions and certain assets are non-admitted.

At December 31, 2012, 2011 and 2010, statutory capital of our insurance subsidiaries exceeded minimum company action level requirements.

Subsidiary Dividend Restrictions

Payments of dividends to us by our insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. With respect to our domestic insurance subsidiaries, the payment of any dividend requires formal notice to the insurance department in which the particular insurance subsidiary is domiciled. For example, unless permitted by the New York Superintendent of Insurance, property casualty companies domiciled in New York may not pay dividends to shareholders that, in any 12-month period, exceed the lesser of ten percent of such company's statutory policyholders' surplus or 100 percent of its "adjusted net investment income," as defined. Generally, less severe restrictions applicable to both property casualty and life insurance companies exist in most of the other states in which our insurance subsidiaries are domiciled. Under the laws of many states, an insurer may pay a dividend without prior approval of the insurance regulator when the amount of the dividend is below certain regulatory thresholds. Other foreign jurisdictions may restrict the ability of our foreign insurance subsidiaries to pay dividends.

There are also various local restrictions limiting cash loans and advances to us by our subsidiaries. Largely as a result of these restrictions, approximately 92 percent of the aggregate equity of our consolidated insurance operations was restricted from transfer to AIG Parent at December 31, 2012. We cannot predict how regulatory investigations may affect the ability of our regulated subsidiaries to pay dividends.

To our knowledge, no AIG insurance company is currently on any regulatory or similar "watch list" with regard to solvency.

SHARE-BASED COMPENSATION AND OTHER PLANS

12 Months Ended

Dec. 31, 2012

SHARE-BASED COMPENSATION AND OTHER PLANS

SHARE-BASED COMPENSATION AND OTHER PLANS

21. SHARE-BASED COMPENSATION AND OTHER PLANS

Our Consolidated Statement of Operations included share-based compensation expense as follows:




Years Ended December 31, (in millions)	2012		2011			2010

Share-based compensation expense – pre-tax*	$	286	$	(16	)	$	333
Share-based compensation expense – after tax		186		(10	)		216

* As of December 31, 2012, compensation expense for the majority of our outstanding share-based awards is attributed to liability-classified awards, the value of which are based on our share price at the reporting date. Our share price was $35.30, $23.20 and $57.62 at December 31, 2012, December 31, 2011 and December 31, 2010, respectively, and is the primary driver of the volatility in share-based compensation expense. Pre-tax share-based compensation expense related to discontinued operations for the years ended December 31, 2012, 2011 and 2010 of $15 million ($10 million after tax), ($4 million) (($3 million) after tax) and $18 million ($13 million after tax), respectively, is also included.

Employee Plans

Our employees are granted awards under the AIG 2010 Stock Incentive Plan, as amended (2010 Plan), under which we have issued restricted stock, restricted stock units (RSUs) and stock appreciation rights (SARs). The 2010 Plan supersedes all plans for which share-based awards remain outstanding and is currently the only plan under which share-based awards can be issued.

However, of all grants made under the legacy plans, only grants under the 2007 Stock Incentive Plan (the 2007 Plan) and the Starr International Company, Inc. Deferred Compensation Profit Participation Plans (the SICO Plans) remain unvested as of December 31, 2012.

Our share-settled awards are settled with newly-issued shares of AIG Common Stock. Share awards made by SICO are settled by SICO.

Non-Employee Plans

Our non-employee directors received share-based compensation in the form of deferred stock units (DSUs) under the 2010 Plan with delivery deferred until retirement from the Board. In 2012, 2011 and 2010, we granted to directors 19,434, 21,203 and 14,484 DSUs, respectively.

Stock Options

AIG Stock Option Plan

Options granted under the 2007 Plan and the 1999 Stock Option Plan are vested and out of the money at December 31, 2012. These awards generally vested over four years (25 percent vesting per year) and expired 10 years from the date of grant. There were no stock options granted since 2008; however, in 2012, we issued 558,358 shares in connection with previous exercises of options with delivery deferred.

The following table provides a roll forward of stock option activity:

As of or for the Year Ended December 31, 2012			Weighted Average Exercise Price



Options:
Exercisable at beginning of year	710,298		$	1,172.25	2.96
Expired	(196,053	)	$	1,284.58

Exercisable at end of year	514,245		$	1,129.42	2.49

The aggregate intrinsic value for all unexercised options is zero, and no unrecognized compensation costs remain for stock options under these plans at December 31, 2012.

Other Share-Settled Awards under Share-Based Plans

AIG 2010 Stock Incentive Plan

The 2010 Plan was adopted at the 2010 Annual Meeting of Shareholders. The total number of shares of AIG Common Stock that may be granted under the 2010 Plan is 60,000,000 (the reserve). During 2012, 2011 and 2010, we granted DSUs, RSUs, restricted stock and stock appreciation rights (SARS) under the 2010 Plan. Each RSU, DSU, SAR and share of restricted stock awarded reduces the number of shares available for future grants by one share. The reserve is also reduced for the issuance of cash-settled share-based awards regardless of the form in which the award is originally granted. At December 31, 2012, a total of 25,031,720 shares remained in reserve for future grants under the 2010 Plan.

AIG 2007 Stock Incentive Plan

The 2007 Plan was adopted at the 2007 Annual Meeting of Shareholders. The 2010 Plan superseded the 2007 Plan, therefore, there were no grants made under the 2007 Plan subsequent to May 11, 2010. During 2010, 114,521 time-vested RSUs were granted under the 2007 Plan and vest on the second or the third anniversary of the date of grant.

SICO Plans

The SICO Plans provide that shares of AIG Common Stock currently held by SICO are set aside for the benefit of the participant and distributed upon retirement. The SICO Board of Directors currently may permit an early payout of shares under certain circumstances. Prior to payout, the participant is not entitled to vote, dispose of or receive dividends with respect to such shares, and shares are subject to forfeiture under certain conditions, including but not limited to the participant's termination of employment with us prior to normal retirement age. A significant portion of the awards under the SICO Plans vest the year after the participant reaches age 65, provided that the participant remains employed by us through age 65. The portion of the awards for which early payout is available vest on the applicable payout date.

Although none of the costs of the various benefits provided under the SICO Plans have been paid by us, we have recorded compensation expense for the deferred compensation amounts payable to our employees by SICO, with an offsetting amount credited to Additional paid-in capital reflecting amounts deemed contributed by SICO.

Restricted Stock and Restricted Stock Unit Valuation

The fair value of restricted stock and RSUs is based on the closing price of AIG Common Stock on the date of grant.

The following table summarizes outstanding share-settled awards and RSUs that are fully vested on the date of grant but subject to transfer restrictions under the foregoing plans^(a):

	Number of Shares/RSUs						Weighted Average Grant-Date Fair Value


As of or for the Year Ended December 31, 2012	AIG Plans^(b)			SICO Plans			AIG Plans		SICO Plans

Unvested, beginning of year(c)		48,892			195,907		$	74.57	$	1,209.45
Granted		241,268			–			31.04		–
Vested		(240,765	)		(48,391	)		34.47		747.11
Forfeited		(10,146	)		(27,572	)		92.70		1,210.60

Unvested, end of year		39,249			119,944		$	48.29	$	1,197.96

(a) Excludes DSUs and options, which are discussed under the Non-Employee Plans and Stock Options sections above.

(b) Excludes legacy Deferred Compensation Profit Participation and Partners Plan for which the final installments (38,959 RSUs) vested on January 1, 2012.

(c) Adjusted to reflect the Company's election in 2012 to cash-settle RSUs that were previously expected to be share-settled.

The total unrecognized compensation cost (net of expected forfeitures) related to unvested SICO awards is $46 million and the weighted-average and expected period of years over which those costs are expected to be recognized are 5.44 years and 27 years, respectively. The unrecognized expense for all other awards totals less than $1 million, with a weighted average period of less than one year.

Liability Awards

We have issued various share-based grants, including restricted stock units, linked to AIG Common Stock, but providing for cash settlement to certain of our most highly compensated employees and executive officers. Share-based cash settled awards are recorded as liabilities until the final payout is made or the award is replaced with a stock-settled award. Compensation expense is recognized over the vesting periods, unless the award is fully vested on the grant date in which case the entire award value is immediately expensed.

Unlike stock-settled awards, which have a fixed grant-date fair value (unless the award is subsequently modified), the fair value of unsettled or unvested liability awards is remeasured at the end of each reporting period based on the change in fair value of one share of AIG Common Stock. The liability and corresponding expense are adjusted accordingly until the award is settled.

Restricted Stock Units

Stock Salary Awards

In 2009, we established a program of regular grants of vested stock or units that is generally referred to as "Stock Salary." Stock Salary is determined as a dollar amount through the date that salary is earned and accrued at the same time or times as the salary would otherwise be paid in cash. Stock Salary was granted to any individual qualifying as a senior executive officer or one of our next twenty most highly compensated employees (the Top 25). Stock Salary for a Top 25 employee (other than our CEO) is settled in three equal installments on the first, second and third anniversary of grant. Stock Salary was also granted to individuals qualifying as an executive officer or one of our next 75 most highly compensated employees (Top 26-100), and is generally settled on either the first or third anniversary of grant in accordance with the terms of an employee's award. Except as noted below, Stock Salary grants issued were awarded in the form of immediately vested RSUs, and the number of units awarded was based on the value of AIG Common Stock on the grant date. During 2012, we issued 2,668,436 RSUs to eligible employees.

In 2010, Stock Salary was awarded in the form of fully vested long term performance units (LTPU) that were measured based on a mix of our hybrid securities and AIG Common Stock weighted 80 percent and 20 percent, respectively. In April 2011, unsettled LTPUs were subsequently converted to RSUs based on the value of AIG Common Stock on the conversion date. RSUs are settled in cash based on the value of AIG Common Stock on the applicable settlement date. During 2012, 2011 and 2010 we paid $111 million, $35 million and $18 million respectively to settle awards; for those awards that were unsettled at the end of each year, we recognized a charge of $173 million, a reduction of $1 million and a charge of $192 million in compensation expense in the respective years to reflect fluctuations in the price of AIG Common Stock.

TARP RSUs

TARP RSUs awarded require the achievement of objective performance metrics as a condition to entitlement. When vested and transferable, an award would be settled in 25 percent installments in proportion to the settlement of our TARP obligations. Prior to December 2011, TARP RSUs granted to the Top 25 (other than our CEO) vested on the third anniversary of grant, while TARP RSUs granted to the Top 26-100 vested on the second anniversary of grant and are subject to transferability restrictions for an additional year after vesting. As of December 2011, all TARP RSUs granted will vest in two 50 percent installments on the second and third anniversary of the date of grant. Our TARP obligations were fully repaid in December 2012. Accordingly, 100 percent of outstanding TARP RSUs will vest once the service requirements are satisfied.

Other RSUs

Fully-vested RSUs totaling 271,131 were issued in March 2011 to certain employees in the Top 26-100 based on 2010 performance. Similarly, 301,645 fully vested RSUs were issued in March 2010 for performance in 2009. The RSUs for both awards will be cash-settled in March 2014 and 2013 for the 2010 and 2009 grants, respectively, based on the value of AIG Common Stock on each settlement date. Compensation expense totaling $8 million and $9 million was recorded in December 2010 and December 2009, respectively, when the awards were initially granted and $4 million was recorded for those awards that remained unsettled at December 31, 2012.

During 2012, with the exception of 139,169 fully-vested RSUs issued to certain employees, RSUs granted and issued in March 2012 for Recipients' 2011 performance will vest in two 50 percent installments on the second and third anniversary of the date of grant.

Long Term Incentive Plans

Under our Long-Term Incentive Plan (LTIP), certain employees are offered the opportunity to receive additional compensation in the form of cash and/or SARs if certain performance metrics are met. The ultimate value of LTIP awards is contingent on the achievement of performance measures aligned to the participant's business unit over a two-year period and such value could range from zero to twice the target amount. Subsequent to the performance period, the earned awards are subject to an additional time-vesting period. This results in a graded vesting schedule for the cash portion of up to two years, while the SARs portion cliff-vests two years after the performance period ends. For a majority of SARs issued under the 2011 LTIP, the strike price, which is based on our average share price over the 30-day period prior to the March grant date, was $37.40. On January 19, 2011, the previous strike price of $31.91 for SARs issued under both the 2010 LTIP and the 2009 LTIP was adjusted to $26.97 pursuant to anti-dilution provisions of the LTIP due to the issuance of warrants in connection with the Recapitalization (see Note 25 for additional discussion). No SARs were granted in connection with the 2012 LTIP.

The cash portion of the awards expensed in 2012, 2011 and 2010 totaled approximately $189 million, $199 million, and $258 million, respectively.

The following table presents a rollforward of SARs and cash-settled RSUs (excluding stock salary) as well as the related expenses:

	Number of Units


Year Ended December 31, 2012	SARs			TARP RSUs			RSUs

Unvested, beginning of year^(a)		14,123,062			1,549,622			7,389
Granted^(b)		1,809,842			678,188			836,355
Vested^(c)		(1,864,801	)		(246,434	)		(139,169	)
Forfeited		(1,711,530	)		(91,942	)		(18,285	)

Unvested, end of year		12,356,573			1,889,434			686,290

Net compensation expense for the year (in millions)	$	84		$	31		$	17

(a) Adjusted to reflect our election in 2012 to cash-settle RSUs that were previously expected to be share-settled.

(b) Represents additional SARs earned as a result of the completion of the performance period for the 2010 LTIP.

(c) Pursuant to the terms of the LTIP, vesting was accelerated for SARs awarded to employees who became retirement eligible or were deceased.

The total unrecognized compensation cost (net of expected forfeitures) related to unvested SARs and cash-settled RSUs excluding stock salary and the weighted-average periods over which those costs are expected to be recognized are as follows:

At December 31, 2012 (in millions)	Unrecognized Compensation Cost		Weighted- Average Period (years)	Expected Period (years)



SARs	$	28	0.87	2
TARP RSUs		33	1.04	3
RSUs		14	1.00	2

Stock Appreciation Rights Valuation

We use a Monte Carlo simulation approach, which incorporates a range of input parameters that is consistently applied, to determine the fair value of SARs awards at each reporting period. The table below presents the assumptions used to estimate the fair value of SARs on December 31, 2012.





Expected dividend yield^(a)	–	%
Expected volatility^(b)	33.78 - 40.57	%
Weighted-average volatility	37.64	%
Risk-free interest rate^(c)	0.34 - 0.40	%
Expected term^(d)	1.0 - 2.0 years

(a) The dividend yield is estimated at zero percent given our recent dividend history. See Note 17 herein for additional information.

(b) The expected volatilities are the implied volatilities with the nearest maturity and strike price as of valuation date from actively traded stock options on AIG Common Stock.

(c) The risk-free interest rate is the continuously compounded interest rate for the term between the valuation date and maturity date that is assumed to be constant and equal to the interpolated value between the closest data points on the USD LIBOR-Swap curve as of valuation date.

(d) The term to maturity is specified in the contract of each SARs grant.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

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

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-Number 123R

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+ Details

EMPLOYEE BENEFITS

12 Months Ended

Dec. 31, 2012

EMPLOYEE BENEFITS

EMPLOYEE BENEFITS

22. EMPLOYEE BENEFITS

Pension Plans

We offer various defined benefit plans to eligible employees based on years of service.

The U.S. AIG Retirement Plan (the qualified plan) is a noncontributory defined benefit plan, which is subject to the provisions of ERISA. U.S. salaried employees who are employed by a participating company and completed 12 months of continuous service are eligible to participate in the plan. Effective April 1, 2012, the qualified plan was converted to a cash balance formula comprised of pay credits based on six percent of a plan participant's annual compensation (subject to IRS limitations) and annual interest credits. In addition, employees can take their vested benefits when they leave AIG as a lump sum or an annuity option after completing at least three years of service. However, employees satisfying certain age and service requirements (i.e. grandfathered employees) remain covered under the old plan formula, which is based upon a percentage of final average compensation multiplied by years of credited service, up to 44 years. Grandfathered employees will receive the higher of the benefits under the cash balance or final average pay formula at retirement. Non-U.S. defined benefit plans are generally either based on the employee's years of credited service and compensation in the years preceding retirement or on points accumulated based on the employee's job grade and other factors during each year of service.

We also sponsor several non-qualified unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by the qualified plan. These include the AIG Non-Qualified Retirement Income Plan (AIG NQRIP) formerly known as AIG Excess Retirement Income Plan, which provides a benefit equal to the reduction in benefits payable to certain employees under the qualified plan as a result of federal tax limitations on compensation and benefits payable, and the Supplemental Executive Retirement Plan (Supplemental), which provides additional retirement benefits to designated executives. Under the Supplemental plan, an annual benefit accrues at a percentage of final average pay multiplied by each year of credited service, not greater than 60 percent of final average pay, reduced by any benefits from the current and any predecessor retirement plans (including the AIG NQRIP Plan), Social Security, and any benefits accrued under a Company sponsored foreign deferred compensation plan. As of December 2012, we are no longer subject to the Special Master for TARP Executive Compensation; therefore, the suspension of future benefit accruals in the non-qualified retirement plans for our Top 100 most highly compensated employees is lifted.

Postretirement Plans

We also provide postretirement medical care and life insurance benefits in the U.S. and in certain non-U.S. countries. Eligibility in the various plans is generally based upon completion of a specified period of eligible service and attaining a specified age. Overseas, benefits vary by geographic location.

U.S. postretirement medical and life insurance benefits are based upon the employee attaining the age of 55 and having a minimum of ten years of service. Eligible employees who have medical coverage can enroll in retiree medical without having to elect immediate retirement pension benefits. Medical benefits are contributory, while the life insurance benefits are generally non-contributory. Retiree medical contributions vary from requiring no cost for pre-1989 retirees to requiring actual premium payments reduced by certain subsidies for post-1993 retirees. These contributions are subject to adjustment annually. Other cost sharing features of the medical plan include deductibles, coinsurance and Medicare coordination. Effective April 1, 2012, the retiree medical employer subsidy for the AIG Postretirement plan was eliminated for employees who were not grandfathered. Additionally, new employees hired after December 31, 2012 are not eligible for retiree life insurance.

The following table presents the funded status of the plans, reconciled to the amount reported in the Consolidated Balance Sheet. The measurement date for most of the Non-U.S. defined benefit pension and postretirement plans is November 30, consistent with the fiscal year end of the sponsoring companies. For all other plans, measurement occurs as of December 31.




	Pension												Postretirement^(a)
As of or for the Years Ended December 31, (in millions)	U.S. Plans^(b)						Non-U.S. Plans^(b)						U.S. Plans						Non-U.S. Plans
As of or for the Years Ended December 31, (in millions)	2012			2011			2012			2011			2012			2011			2012			2011

Change in projected benefit obligation:
Benefit obligation, beginning of year	$	4,438		$	3,878		$	1,137		$	1,981		$	236		$	279		$	52		$	66
Service cost		154			150			53			66			5			8			3			4
Interest cost		200			207			34			37			11			13			2			2
Actuarial (gain) loss		536			653			69			(7	)		22			6			11			7
Benefits paid:
AIG assets		(12	)		(8	)		(7	)		(26	)		(11	)		(7	)		(1	)		(1	)
Plan assets		(150	)		(118	)		(35	)		(48	)		–			–			–			–
Plan amendment		–			(324	)		4			(11	)		(8	)		(63	)		–			–
Curtailments		(5	)		–			(3	)		–			–			–			(1	)		–
Settlements		–			–			(20	)		(56	)		–			–			–			–
Foreign exchange effect		–			–			(32	)		80			–			–			–			1
Dispositions		–			–			–			(888	)		–			–			–			(30	)
Acquisitions		–			–			–			–			–			–			–			–
Other		–			–			5			9			–			–			–			3

Projected benefit obligation, end of year	$	5,161		$	4,438		$	1,205		$	1,137		$	255		$	236		$	66		$	52

Change in plan assets:
Fair value of plan assets, beginning of year	$	3,432		$	3,425		$	683		$	954		$	–		$	–		$	–		$	–
Actual return on plan assets, net of expenses		438			125			34			3			–			–			–			–
AIG contributions		12			8			86			100			11			7			1			1
Benefits paid:
AIG assets		(12	)		(8	)		(7	)		(26	)		(11	)		(7	)		(1	)		(1	)
Plan assets		(150	)		(118	)		(35	)		(48	)		–			–			–			–
Settlements		–			–			(20	)		(56	)		–			–			–			–
Foreign exchange effect		–			–			(15	)		45			–			–			–			–
Dispositions		–			–			–			(295	)		–			–			–			–
Acquisitions		–			–			–			–			–			–			–			–
Other		–			–			1			6			–			–			–			–

Fair value of plan assets, end of year	$	3,720		$	3,432		$	727		$	683		$	–		$	–		$	–		$	–

Funded status, end of year	$	(1,441	)	$	(1,006	)	$	(478	)	$	(454	)	$	(255	)	$	(236	)	$	(66	)	$	(52	)

Amounts recognized in the consolidated balance sheet:

Assets	$	–		$	–		$	65		$	80		$	–		$	–		$	–		$	–

Liabilities		(1,441	)		(1,006	)		(543	)		(534	)		(255	)		(236	)		(66	)		(52	)

Total amounts recognized	$	(1,441	)	$	(1,006	)	$	(478	)	$	(454	)	$	(255	)	$	(236	)	$	(66	)	$	(52	)

Pre tax amounts recognized in Accumulated other comprehensive income (loss):

Net gain (loss)	$	(1,764	)	$	(1,550	)	$	(299	)	$	(272	)	$	(40	)	$	(18	)	$	1		$	(2	)

Prior service (cost) credit		267			303			21			30			46			48			(13	)		1

Total amounts recognized	$	(1,497	)	$	(1,247	)	$	(278	)	$	(242	)	$	6		$	30		$	(12	)	$	(1	)

(a) We do not currently fund postretirement benefits.

(b) Includes non-qualified unfunded plans of which the aggregate projected benefit obligation was $238 million and $210 million for the U.S. and $299 million and $267 million for the non-U.S. at December 31, 2012 and 2011, respectively.

The following table presents the accumulated benefit obligations for U.S. and Non-U.S. pension benefit plans:




At December 31, (in millions)	2012		2011

U.S. pension benefit plans	$	4,827	$	4,291
Non-U.S. pension benefit plans	$	1,125	$	895

Defined benefit pension plan obligations in which the projected benefit obligation was in excess of the related plan assets and the accumulated benefit obligation was in excess of the related plan assets were as follows:




	PBO Exceeds Fair Value of Plan Assets								ABO Exceeds Fair Value of Plan Assets
	U.S. Plans				Non-U.S. Plans				U.S. Plans				Non-U.S. Plans
At December 31, (in millions)	U.S. Plans				Non-U.S. Plans				U.S. Plans				Non-U.S. Plans
At December 31, (in millions)	2012		2011		2012		2011		2012		2011		2012		2011

Projected benefit obligation	$	5,161	$	4,438	$	1,028	$	956	$	5,161	$	4,438	$	1,018	$	916
Accumulated benefit obligation		4,827		4,291		964		895		4,827		4,291		959		864
Fair value of plan assets		3,720		3,432		485		422		3,720		3,432		478		388

The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in Accumulated other comprehensive income (loss) with respect to the defined benefit pension plans and other postretirement benefit plans:




	Pension																		Postretirement
	U.S. Plans									Non-U.S. Plans									U.S. Plans									Non-U.S. Plans
(in millions)	2012			2011			2010			2012			2011			2010			2012			2011			2010			2012			2011			2010

Components of net periodic benefit cost:
Service cost	$	154		$	150		$	149		$	53		$	66		$	137		$	5		$	8		$	8		$	3		$	4		$	8
Interest cost		200			207			216			34			37			59			11			13			15			2			2			4
Expected return on assets		(240	)		(250	)		(259	)		(20	)		(25	)		(31	)		–			–			–			–			–			–
Amortization of prior service (credit) cost		(33	)		(7	)		1			(4	)		(4	)		(9	)		(10	)		(2	)		–			–			–			–
Amortization of net (gain) loss		118			65			57			13			15			45			–			–			(1	)		–			–			–
Net curtailment (gain) loss		–			–			1			1			–			(1	)		–			–			(2	)		(1	)		–			–
Net settlement (gain) loss		–			–			58			4			8			3			–			–			(6	)		–			–			–
Other		–			–			–			–			–			2			–			–			–			–			–			–

Net periodic benefit cost	$	199		$	165		$	223		$	81		$	97		$	205		$	6		$	19		$	14		$	4		$	6		$	12

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

Total recognized in Accumulated other comprehensive income (loss)	$	(250	)	$	(396	)	$	85		$	(36	)	$	261		$	167		$	(23	)	$	56		$	(3	)	$	(11	)	$	(6	)	$	16

Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(447	)	$	(561	)	$	(139	)	$	(117	)	$	164		$	(38	)	$	(29	)	$	37		$	(17	)	$	(15	)	$	(12	)	$	4

The estimated net loss and prior service credit that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $145 million and $37 million, respectively, for our combined defined benefit pension plans. For the defined benefit postretirement plans, the estimated amortization from Accumulated other comprehensive income for net loss and prior service credit that will be amortized into net periodic benefit cost over the next fiscal year will be less than $9 million in the aggregate.

The annual pension expense in 2013 for the AIG U.S. and non-U.S. defined benefit pension plans is expected to be approximately $292 million including less than $1 million associated with ILFC. A 100 basis point increase in the discount rate or expected long-term rate of return would decrease the 2013 expense by approximately $90 million and $43 million, respectively, with all other items remaining the same. Conversely, a 100 basis point decrease in the discount rate or expected long-term rate of return would increase the 2013 expense by approximately $96 million and $43 million, respectively, with all other items remaining the same.

Assumptions

The following table summarizes the weighted average assumptions used to determine the benefit obligations:

	Pension						Postretirement


	U.S. Plans			Non-U.S. Plans^(a)			U.S. Plans			Non-U.S. Plans^(a)

December 31, 2012
Discount rate		3.93	%		2.62	%		3.67	%		3.45	%
Rate of compensation increase		4.00	%		2.86	%		N/A			3.55	%

December 31, 2011
Discount rate		4.62	%		3.02	%		4.51	%		4.19	%
Rate of compensation increase		4.00	%		2.94	%		N/A			3.61	%

(a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

The following table summarizes assumed health care cost trend rates for the U.S. plans:




At December 31,	2012			2011

Following year:
Medical (before age 65)		7.39	%		7.59	%
Medical (age 65 and older)		6.82	%		6.88	%

Ultimate rate to which cost increase is assumed to decline		4.50	%		4.50	%

Year in which the ultimate trend rate is reached:
Medical (before age 65)		2027			2027
Medical (age 65 and older)		2027			2027

A one percent point change in the assumed healthcare cost trend rate would have the following effect on our postretirement benefit obligations:




	One Percent Increase				One Percent Decrease
At December 31, (in millions)	One Percent Increase				One Percent Decrease
At December 31, (in millions)	2012		2011		2012			2011

U.S. plans	$	5	$	3	$	(4	)	$	(3	)
Non-U.S. plans	$	15	$	11	$	(11	)	$	(8	)

Our postretirement plans provide benefits primarily in the form of defined employer contributions rather than defined employer benefits. Changes in the assumed healthcare cost trend rate are subject to caps for U.S. plans. Our non-U.S. postretirement plans are not subject to caps.

The following table presents the weighted average assumptions used to determine the net periodic benefit costs:

	Pension						Postretirement


At December 31,	U.S. Plans			Non-U.S. Plans^(a)			U.S. Plans			Non-U.S. Plans^(a)

2012
Discount rate		4.62	%		3.02	%		4.51	%		4.19	%
Rate of compensation increase		4.00	%		2.94	%		N/A			3.61	%
Expected return on assets		7.25	%		2.91	%		N/A			N/A

2011
Discount rate		5.50	%		2.25	%		5.25	%		4.00	%
Rate of compensation increase		4.00	%		3.00	%		N/A			3.00	%
Expected return on assets		7.50	%		3.14	%		N/A			N/A

2010
Discount rate		6.00	%		2.75	%		5.75	%		3.75	%
Rate of compensation increase		4.00	%		3.50	%		N/A			3.75	%
Expected return on assets		7.75	%		3.75	%		N/A			N/A

(a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits.

Discount Rate Methodology

The projected benefit cash flows under the U.S. AIG Retirement plan were discounted using the spot rates derived from the Mercer Pension Discount Yield Curve at December 31, 2012 and December 31, 2011, which resulted in a single discount rate that would produce the same liability at the respective measurement dates. The discount rates were 3.94 percent at December 31, 2012 and 4.62 percent at December 31, 2011. The methodology was consistently applied for the respective years in determining the discount rates for the other U.S. plans.

In general, the discount rates for non-U.S. pension plans were developed based on the duration of liabilities on a plan by plan basis and were selected by reference to high quality corporate bonds in developed markets or local government bonds where developed markets are not as robust or are nonexistent.

The projected benefit obligation for Japan represents approximately 57 and 62 percent of the total projected benefit obligations for our non-U.S. pension plans at December 31, 2012 and 2011, respectively. The weighted average discount rate of 1.54 and 1.70 percent at December 31, 2012 and 2011 respectively for Japan was selected by reference to the AA rated corporate bonds reported by Rating and Investment Information, Inc. based on the duration of the plans' liabilities.

Plan Assets

The investment strategy with respect to assets relating to our U.S. and non-U.S. pension plans is designed to achieve investment returns that will (a) provide for the benefit obligations of the plans over the long term; (b) limit the risk of short-term funding shortfalls; and (c) maintain liquidity sufficient to address cash needs. Accordingly, the asset allocation strategy is designed to maximize the investment rate of return while managing various risk factors, including but not limited to, volatility relative to the benefit obligations, diversification and concentration, and the risk and rewards profile indigenous to each asset class. The assessment of the expected rate of return for all our plans is long-term and thus not expected to change annually; however, significant changes in investment strategy or economic conditions may warrant such a change.

There were no shares of AIG Common Stock included in the U.S. and non-U.S. pension plans assets at December 31, 2012 or 2011.

U.S. Pension Plans

The long-term strategic asset allocation is reviewed and revised approximately every three years. The plans' assets are monitored by the investment committee of our Retirement Board and the investment managers, which includes allocating the plans' assets among approved asset classes within pre-approved ranges permitted by the strategic allocation.

The following table presents the asset allocation percentage by major asset class for U.S. pension plans and the target allocation:




At December 31,	Target 2013			Actual 2012			Actual 2011

Asset class:
Equity securities		45	%		44	%		52	%
Fixed maturity securities		30	%		29	%		30	%
Other investments		25	%		27	%		18	%

Total		100	%		100	%		100	%

The expected long-term rate of return for the plan was 7.25 and 7.50 percent for 2012 and 2011, respectively. The expected rate of return is an aggregation of expected returns within each asset class category and incorporates the current and target asset allocations. The combination of the expected asset return and any contributions made by us are expected to maintain the plans' ability to meet all required benefit obligations. The expected asset return for each asset class was developed based on an approach that considers key fundamental drivers of the asset class returns in addition to historical returns, current market conditions, asset volatility and the expectations for future market returns.

Non-U.S. Pension Plans

The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in equities and fixed maturity securities to maximize the long-term return on assets for a given level of risk.

The following table presents the asset allocation percentage by major asset class for Non-U.S. pension plans and the target allocation:




At December 31,	Target 2013			Actual 2012			Actual 2011

Asset class:
Equity securities		28	%		36	%		38	%
Fixed maturity securities		43	%		43	%		39	%
Other investments		28	%		6	%		6	%
Cash and cash equivalents		1	%		15	%		17	%

Total		100	%		100	%		100	%

The expected weighted average long-term rates of return for our non-U.S. pension plans was 2.91 and 3.14 percent for the years ended December 31, 2012 and 2011, respectively. The expected rate of return for each country is an aggregation of expected returns within each asset class for such country. For each country, the return with respect to each asset class was developed based on a building block approach that considers historical returns, current market conditions, asset volatility and the expectations for future market returns.

Assets Measured at Fair Value

We are required to disclose the level of the fair value measurement of the plan assets. The inputs and methodology used in determining the fair value of these assets are consistent with those used to measure our assets as noted in Note 6 herein.

The following table presents information about our plan assets based on the level within the fair value hierarchy in which the fair value measurement falls:

	U.S. Plans								Non-U.S. Plans


(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

At December 31, 2012
Assets:
Cash & cash equivalents	$	229	$	–	$	–	$	229	$	113	$	–	$	–	$	113
Equity securities:
U.S.^(a)		1,331		15		–		1,346		21		1		–		22
International^(b)		290		18		–		308		240		–		–		240
Fixed maturity securities:
U.S. investment grade^(c)		–		763		11		774		–		–		–		–
International investment grade^(c)		–		112		–		112		–		169		–		169
U.S. and international high yield^(d)		–		134		–		134		–		96		–		96
Mortgage and other asset-backed securities^(e)		–		59		–		59		–		–		–		–
Other fixed maturity securities		–		–		–		–		–		17		27		44
Other investment types:
Hedge funds^(f)		–		334		–		334		–		–		–		–
Commodities		–		170		–		170		–		–		–		–
Private equity^(g)		–		–		225		225		–		–		–		–
Insurance contracts		–		29		–		29		–		–		43		43

Total	$	1,850	$	1,634	$	236	$	3,720	$	374	$	283	$	70	$	727

At December 31, 2011
Assets:
Cash & cash equivalents	$	9	$	–	$	–	$	9	$	114	$	–	$	–	$	114
Equity securities:
U.S.^(a)		1,449		13		–		1,462		19		–		–		19
International^(b)		305		16		–		321		242		1		–		243
Fixed maturity securities:
U.S. investment grade^(c)		–		794		1		795		–		–		–		–
International investment grade^(c)		–		–		–		–		–		139		–		139
U.S. and international high yield^(d)		–		104		–		104		–		88		–		88
Mortgage and other asset-backed securities^(e)		–		80		36		116		–		–		–		–
Other fixed maturity securities		–		–		–		–		–		40		1		41
Other investment types:
Hedge funds^(f)		–		345		–		345		–		–		–		–
Commodities		–		26		–		26		–		–		–		–
Private equity^(g)		–		–		223		223		–		–		–		–
Insurance contracts		–		31		–		31		–		–		39		39

Total	$	1,763	$	1,409	$	260	$	3,432	$	375	$	268	$	40	$	683

(a) Includes index funds that primarily track several indices including S&P 500 and S&P Small Cap 600 in addition to other actively managed accounts comprised of investments in large cap companies.

(b) Includes investments in companies in emerging and developed markets.

(c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade.

(e) Comprised primarily of investments in U.S. government agency or U.S. government sponsored agency bonds.

(f) Includes funds comprised of macro, event driven, long/short equity, and controlled risk hedge fund strategies and a separately managed controlled risk strategy.

(g) Includes funds that are diverse by geography, investment strategy, and sector.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in these securities. Based on our investment strategy, we have no significant concentrations of risks.

The U.S. pension plan holds a group annuity contract with US Life, one of our subsidiaries, which totaled $29 million and $31 million at December 31, 2012 and 2011, respectively.

Changes in Level 3 fair value measurements

The following table presents changes in our U.S. and Non-U.S. Level 3 plan assets measured at fair value:




At December 31, 2012 (in millions)	Balance Beginning of year		Net Realized and Unrealized Gains (Losses)		Purchases		Sales			Issuances		Settlements			Transfers In		Transfers Out			Balance at End of year		Changes in Unrealized Gains (Losses) on Instruments Held at End of year

U.S. Plan Assets:
Fixed maturity
U.S. investment grade	$	1	$	5	$	9	$	(29	)	$	–	$	(10	)	$	36	$	(1	)	$	11	$	1
Mortgage and other asset-backed securities		36		–		–		–			–		–			–		(36	)		–		–
Private equity		223		9		23		(26	)		–		–			4		(8	)		225		(14	)

Total	$	260	$	14	$	32	$	(55	)	$	–	$	(10	)	$	40	$	(45	)	$	236	$	(13	)

Non-U.S. Plan Assets:
Other fixed maturity securities	$	1	$	–	$	–	$	(1	)	$	–	$	–		$	27	$	–		$	27	$	–
Insurance contracts		39		2		2		–			–		–			–		–			43		–

Total	$	40	$	2	$	2	$	(1	)	$	–	$	–		$	27	$	–		$	70	$	–

At December 31, 2011 (in millions)	Balance Beginning of year		Net Realized and Unrealized Gains (Losses)		Purchases		Sales			Issuances		Settlements			Transfers In		Transfers Out			Balance at End of year		Changes in Unrealized Gains (Losses) on Instruments Held at End of year



U.S. Plan Assets:
Fixed maturity
U.S. investment grade	$	1	$	–	$	–	$	–		$	–	$	–		$	–	$	–		$	1	$	–
U.S. and international high yield		–		–		–		–			–		(1	)		1		–			–		1
Mortgage and other asset-backed securities		80		1		34		(79	)		–		(1	)		4		(3	)		36		13
Equities – U.S.		–		–		–		–			–		–			–		–			–		–
Private equity		209		5		30		(20	)		–		(1	)		–		–			223		(23	)

Total	$	290	$	6	$	64	$	(99	)	$	–	$	(3	)	$	5	$	(3	)	$	260	$	(9	)

Non-U.S. Plan Assets:
Other fixed maturity securities	$	–	$	–	$	1	$	–		$	–	$	–		$	–	$	–		$	1	$	–
Private equity		–		–		–		–			–		–			–		–			–		–
Insurance contracts		34		3		2		–			–		–			–		–			39		–

Total	$	34	$	3	$	3	$	–		$	–	$	–		$	–	$	–		$	40	$	–

Transfers of Level 1 and Level 2 Assets and Liabilities

Transfers of Level 3 Assets

During the year ended December 31, 2012, transfers of Level 3 assets included certain U.S. investment grade and mortgage backed securities and other fixed maturity securities. These transfers were due to a decrease in market transparency, downward credit migration and an overall increase in price disparity for certain individual security types.

Expected Cash Flows

Funding for the U.S. pension plan ranges from the minimum amount required by ERISA to the maximum amount that would be deductible for U.S. tax purposes. Contributed amounts in excess of the minimum amounts are deemed voluntary. Amounts in excess of the maximum amount would be subject to an excise tax and may not be deductible under the Internal Revenue Code. There are no minimum required cash contributions for the AIG Retirement Plan in 2013. Supplemental, AIG NQRIP and postretirement plan payments are deductible when paid.

Our annual pension contribution in 2013 is expected to be approximately $100 million for our U.S. and non-U.S. non-qualified plans. No contributions to the AIG Retirement Plan are currently anticipated. These estimates are subject to change, since contribution decisions are affected by various factors including our liquidity, market performance and management's discretion.

The expected future benefit payments, net of participants' contributions, with respect to the defined benefit pension plans and other postretirement benefit plans, are as follows:

	Pension				Postretirement


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

2013	$	312	$	48	$	16	$	1
2014		322		44		17		1
2015		328		44		18		1
2016		336		47		18		1
2017		351		51		19		1
2018 - 2022		1,830		287		107		10

Defined Contribution Plans

In addition to several small defined contribution plans, we sponsor a voluntary savings plan for U.S. employees which provide for pre-tax salary reduction contributions by employees. Effective January 1, 2012, the Company matching contribution was changed to 100 percent of the first six percent of participant contributions, up to the IRS maximum limits of $17,000 for employee contributions and to $15,000 for the Company matching contribution, irrespective of their length of service. Prior to the change, company contributions of up to seven percent of annual salary were made depending on the employee's years of service subject to certain compensation limits.

Pre-tax expenses associated with this plan were $132 million, $98 million and $102 million in 2012, 2011 and 2010 respectively, excluding approximately $1 million per year relating to ILFC.

- Definition

The entire disclosure for pension and other postretirement benefits.

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+ Details

OWNERSHIP	12 Months Ended
OWNERSHIP	Dec. 31, 2012
OWNERSHIP
OWNERSHIP	23. OWNERSHIP Through registered public offerings, the Department of the Treasury disposed of all of its ownership of AIG Common Stock during 2012 and 2011. The Department of the Treasury still owns two series of warrants (the Series D Warrant and Series F Warrant, respectively). The Series D Warrant provides for the purchase of 2,689,938 shares of AIG Common Stock at $50 per share. The Series F Warrant provides for the purchase of 150 shares of AIG Common Stock at $0.00002 per share. Both series of warrants have a 10-year term and are exercisable at any time, in whole or in part. For discussion of the Recapitalization, see Note 25 herein. A Schedule 13G/A filed February 14, 2013 reports aggregate ownership of 110,209,093 shares, or approximately 7.3 percent (based on the AIG Common Stock outstanding, as adjusted to reflect the warrants owned), of AIG Common Stock and warrants (85,862,294 shares plus 24,346,799 warrants) as of December 31, 2012, including securities beneficially owned by The Fairholme Fund and other funds and investment vehicles managed by Fairholme Capital Management and securities owned by Mr. Bruce Berkowitz personally. The calculation of ownership interest for purposes of the AIG Tax Asset Protection Plan and Article 13 of our Restated Certificate of Incorporation is different than beneficial ownership for Schedule 13G.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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+ Details

INCOME TAXES

12 Months Ended

Dec. 31, 2012

INCOME TAXES

INCOME TAXES

24. INCOME TAXES

The following table presents income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location in which such pre-tax income (loss) was earned or incurred.




Years Ended December 31, (in millions)	2012		2011			2010

U.S.	$	5,515	$	(566	)	$	15,749
Foreign		3,807		682			4,498

Total	$	9,322	$	116		$	20,247

The following table presents the income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations:




Years Ended December 31, (in millions)	2012			2011			2010

Foreign and U.S. components of actual income tax expense:
Foreign:
Current	$	484		$	302		$	823
Deferred		(275	)		(20	)		270
U.S.:
Current		311			(284	)		(243	)
Deferred		1,050			(19,422	)		6,143

Total	$	1,570		$	(19,424	)	$	6,993

Our actual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following:




	2012									2011								2010
Years Ended December 31, (dollars in millions)	Pre-Tax Income (Loss)			Tax Expense/ (Benefit)			Percent of Pre-Tax Income (Loss)			Pre-Tax Income (Loss)		Tax Expense/ (Benefit)			Percent of Pre-Tax Income (Loss)			Pre-Tax Income		Tax Expense/ (Benefit)			Percent of Pre-Tax Income

U.S. federal income tax at statutory rate adjustments:	$	2,893		$	1,013			35.0	%	$	2,604	$	911			35.0	%	$	22,877	$	8,007			35.0	%
Tax exempt interest					(302	)		(10.4	)				(454	)		(17.4	)				(587	)		(2.6	)
Investment in subsidiaries and partnerships					(26	)		(0.9	)				(224	)		(8.6	)				(1,319	)		(5.8	)
Variable interest entities					32			1.1					(43	)		(1.7	)				(2	)		–
Uncertain tax positions					586			20.3					(29	)		(1.1	)				(36	)		(0.2	)
Dividends received deduction					(58	)		(2.0	)				(52	)		(2.0	)				(108	)		(0.5	)
Effect of foreign operations					172			5.9					(386	)		(14.8	)				602			2.6
Bargain purchase gain					–			–					–			–					(116	)		(0.5	)
State income taxes					(83	)		(2.9	)				(85	)		(3.3	)				(104	)		(0.5	)
Other					(107	)		(3.7	)				116			4.5					215			1.0
Effect of discontinued operations					(127	)		(4.4	)				(173	)		(6.6	)				119			0.5
Effect of discontinued operations – goodwill					–			–					–			–					1,268			5.5
Valuation allowance:
Continuing operations					(1,907	)		(65.9	)				(18,307	)		NM					1,361			6.0
Discontinued operations					–			–					–			–					1,292			5.7

Consolidated total amounts		2,893			(807	)		(27.9	)		2,604		(18,726	)		NM			22,877		10,592			46.2
Amounts attributable to discontinued operations		(6,429	)		(2,377	)		37.0			2,488		698			28.1			2,630		3,599			136.8

Amounts attributable to continuing operations	$	9,322		$	1,570			16.8	%	$	116	$	(19,424	)		NM	%	$	20,247	$	6,993			34.5	%

For the year ended December 31, 2012, the effective tax rate on pre-tax income from continuing operations was 16.8 percent. The effective tax rate for the year ended December 31, 2012, attributable to continuing operations differs from the statutory rate primarily due to tax benefits of $1.9 billion related to a decrease in the life-insurance-business capital loss carryforward valuation allowance and $302 million associated with tax exempt interest income. These items were partially offset by charges of $586 million related to uncertain tax positions and $172 million associated with the effect of foreign operations.

For the year ended December 31, 2011, the effective tax rate on pre-tax income from continuing operations was not meaningful, due to the significant effect of releasing approximately $18.4 billion of the deferred tax asset valuation allowance. Other factors that contributed to the difference from the statutory rate included tax benefits of $454 million associated with tax exempt interest income, $386 million associated with the effect of foreign operations, and $224 million related to our investment in subsidiaries and partnerships

For the year ended December 31, 2010, the effective tax rate on pre-tax income from continuing operations was 34.5 percent. The effective tax rate for the year ended December 31, 2010, attributable to continuing operations differs from the statutory rate primarily due to tax benefits of $1.3 billion associated with our investment in subsidiaries and partnerships, principally the AIA SPV which is treated as a partnership for U.S. tax purposes, and $587 million associated with tax exempt interest, partially offset by an increase in the valuation allowance attributable to continuing operations of $1.4 billion.

The following table presents the components of the net deferred tax assets (liabilities):




December 31, (in millions)	2012			2011

Deferred tax assets:
Losses and tax credit carryforwards	$	25,359		$	28,223
Unrealized loss on investments		3,365			2,436
Accruals not currently deductible, and other		4,499			6,431
Investments in foreign subsidiaries and joint ventures		1,435			1,432
Loss reserve discount		1,235			1,260
Loan loss and other reserves		547			877
Unearned premium reserve reduction		1,145			1,696
Employee benefits		1,483			1,217

Total deferred tax assets		39,068			43,572

Deferred tax liabilities:
Adjustment to life policy reserves		(1,817	)		(1,978	)
Deferred policy acquisition costs		(2,816	)		(3,340	)
Flight equipment, fixed assets and intangible assets		(2,015	)		(4,530	)
Unrealized gains related to available for sale debt securities		(7,464	)		(4,010	)
Other		(225	)		(378	)

Total deferred tax liabilities		(14,337	)		(14,236	)

Net deferred tax assets before valuation allowance		24,731			29,336
Valuation allowance		(8,036	)		(11,047	)

Net deferred tax assets (liabilities)	$	16,695		$	18,289

The following table presents our U.S. consolidated income tax group tax losses and credits carryforwards as of December 31, 2012 on a tax return basis.

December 31, 2012 (in millions)	Gross		Tax Effected		Expiration Periods



Net operating loss carryforwards	$	40,872	$	14,305	2025 - 2031
Capital loss carryforwards – Life		17,249		6,037	2013 - 2014
Capital loss carryforwards – Non-Life		88		31	2013
Foreign tax credit carryforwards		–		5,549	2015 - 2022
Other carryforwards and other		–		515	Various

Total AIG U.S. consolidated income tax group tax losses and credits carryforwards			$	26,437

Assessment of Deferred Tax Asset Valuation Allowance

The evaluation of the recoverability of the deferred tax asset and the need for a valuation allowance requires us 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.

Our framework for assessing the recoverability of deferred tax assets weighs the sustainability of recent operating profitability, the predictability of future operating profitability of the character necessary to realize the deferred tax assets, and our emergence from cumulative losses in recent years. The framework requires us to consider all available evidence, including:

•: the nature, frequency, and severity of cumulative financial reporting losses in recent years;
•: the sustainability of recent operating profitability of our subsidiaries in various tax jurisdictions;
•: the predictability of future operating profitability of the character necessary to realize the net deferred tax asset;
•: the carryforward periods for the net operating loss, capital loss and foreign tax credit carryforwards, including the effect of reversing taxable temporary differences; and,
•: prudent and feasible tax planning strategies that would be implemented, if necessary, to protect against the loss of the deferred tax assets.

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 year ended December 31, 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.

For the year ended December 31, 2012, AIG released $2.1 billion of its deferred tax asset valuation allowance associated with the life insurance business capital loss carryforwards, of which $1.9 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.

The following table presents the net deferred tax assets (liabilities) for December 31, 2012, and December 31, 2011, respectively, on a U.S. GAAP basis:




December 31, (in millions)	2012			2011

Net U.S. consolidated return group deferred tax assets	$	29,550		$	29,442
Net deferred tax assets (liabilities) in Other comprehensive income		(7,174	)		(3,041	)
Valuation allowance		(5,068	)		(7,240	)

Subtotal		17,308			19,161

Net foreign, state & local deferred tax assets		3,126			4,261
Valuation allowance		(2,968	)		(3,807	)

Subtotal		158			454

Subtotal – Net U.S, foreign, state & local deferred tax assets		17,466			19,615
Net foreign, state & local deferred tax liabilities		(771	)		(1,326	)

Total AIG net deferred tax assets (liabilities)	$	16,695		$	18,289

Deferred Tax Asset Valuation Allowance of U.S. Consolidated Income Tax Group

At December 31, 2012, and December 31, 2011, our U.S. consolidated income tax group had net deferred tax assets (liabilities) after valuation allowance of $17.3 billion and $19.2 billion, respectively. At December 31, 2012, and December 31, 2011, our U.S. consolidated income tax group had valuation allowances of $5.1 billion and $7.2 billion, respectively.

For the year ended December 31, 2011, the decrease in the U.S. consolidated income tax group deferred tax asset valuation allowance was $18.4 billion. The entire decrease in the deferred tax asset valuation allowance was allocated to continuing operations. The amount allocated to continuing operations also included the decrease in the deferred tax asset valuation allowance attributable to the anticipated inclusion of the ALICO SPV within the 2011 U.S. consolidated federal income tax return.

Deferred Tax Liability – Foreign, State and Local

At December 31, 2012 and December 31, 2011, we had net deferred tax liabilities of $613 million and $872 million, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns.

At December 31, 2012 and December 31, 2011, we had deferred tax asset valuation allowances of $2.9 billion and $3.8 billion, respectively, related to foreign subsidiaries, state and local tax jurisdictions, and certain domestic subsidiaries that file separate tax returns. We maintained these valuation allowances following our conclusion that we could not demonstrate that it was more likely than not that the related deferred tax assets will be realized. This was primarily due to factors such as cumulative losses in recent years and the inability to demonstrate profits within the specific jurisdictions over the relevant carryforward periods.

Tax Examinations and Litigation

We file a consolidated U.S. federal income tax return with our eligible U.S. subsidiaries. Several U.S. subsidiaries included in the consolidated financial statements previously filed separate U.S. federal income tax returns and were not part of our U.S. consolidated income tax group. Subsidiaries operating outside the U.S. are taxed, and income tax expense is recorded, based on applicable U.S. and foreign law.

The statute of limitations for all tax years prior to 2000 has expired for our consolidated federal income tax return. We are currently under examination for the tax years 2000 through 2006.

On March 20, 2008, we received a Statutory Notice of Deficiency (Notice) from the IRS for years 1997 to 1999. The Notice asserted that we owe additional taxes and penalties for these years primarily due to the disallowance of foreign tax credits associated with cross-border financing transactions. The transactions that are the subject of the Notice extend beyond the period covered by the Notice, and the IRS is challenging the later periods. It is also possible that the IRS will consider other transactions to be similar to these transactions. We have paid the assessed tax plus interest and penalties for 1997 to 1999. On February 26, 2009, we filed a complaint in the United States District Court for the Southern District of New York seeking a refund of approximately $306 million in taxes, interest and penalties paid with respect to its 1997 taxable year. We allege that the IRS improperly disallowed foreign tax credits and that our taxable income should be reduced as a result of our 2005 restatement of its consolidated financial statements.

On March 29, 2011, the U.S. District Court, Southern District of New York, ruled on a motion for partial summary judgment that we filed on July 30, 2010 related to the disallowance of foreign tax credits associated with cross border financing transactions. The court denied our motion with leave to renew following the completion of discovery regarding certain transactions referred to in our motion, which we believe may be significant to the outcome of the action.

On August 1, 2012, we filed a motion for partial summary judgment. The parties completed submission of briefs in support of their respective positions on November 12, 2012. As of February 21, 2013 the motion remains pending. We will vigorously defend our position, and continue to believe that we have adequate reserves for any liability that could result from the IRS actions.

We also filed an administrative refund claim on September 9, 2010 for our 1998 and 1999 tax years.

We continue to monitor legal and other developments in this area and evaluate the effect, if any, on our position, including recent decisions adverse to other taxpayers.

Accounting For Uncertainty in Income Taxes

The following table presents a rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits:




Years Ended December 31, (in millions)	2012			2011			2010

Gross unrecognized tax benefits, beginning of year	$	4,279		$	5,296		$	4,843
Increases in tax positions for prior years		322			239			888
Decreases in tax positions for prior years		(253	)		(1,046	)		(470	)
Increases in tax positions for current year		–			48			49
Lapse in statute of limitations		(8	)		(7	)		(6	)
Settlements		(5	)		(259	)		(12	)
Activity of discontinued operations		50			8			–
Less: Unrecognized tax benefits of held for sale entities		–			–			4

Gross unrecognized tax benefits, end of year	$	4,385		$	4,279		$	5,296

At December 31, 2012, 2011 and 2010, our unrecognized tax benefits related to tax positions that if recognized would not affect the effective tax rate as they relate to such factors as the timing, rather than the permissibility, of the deduction were $0.2 billion, $0.7 billion and $1.7 billion, respectively. Accordingly, at December 31, 2012, 2011 and 2010, the amounts of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate were $4.2 billion, $3.5 billion and $3.6 billion, respectively.

The decrease in the gross unrecognized tax benefits for 2012 was primarily related to tax positions that did not affect the effective tax rate because they relate to timing.

Interest and penalties related to unrecognized tax benefits are recognized in income tax expense. At December 31, 2012 and 2011, we had accrued liabilities of $935 million and $744 million, respectively, for the payment of interest (net of the federal benefit) and penalties. For the years ended December 31, 2012, 2011 and 2010, we accrued expense (benefits) of $189 million, $(174) million and $149 million, respectively, for the payment of interest (net of the federal benefit) and penalties.

We regularly evaluate adjustments proposed by taxing authorities. At December 31, 2012, such proposed adjustments would not have resulted in a material change to our consolidated financial condition, although it is possible that the effect could be material to our consolidated results of operations for an individual reporting period. Although it is reasonably possible that a change in the balance of unrecognized tax benefits may occur within the next 12 months, based on the information currently available, we do not expect any change to be material to our consolidated financial condition.

Listed below are the tax years that remain subject to examination by major tax jurisdictions:

At December 31, 2012		Open Tax Years



Major Tax Jurisdiction
United States		2000 - 2011
Australia		2008 - 2011
France		2008 - 2011
Japan		2007 - 2011
Korea		2007 - 2011
Singapore		2011
United Kingdom		2010 - 2011

- 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

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 15

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 2: 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.(h))

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

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph h

-Article 4

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 740

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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 109

-Paragraph 136, 172

-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 109

-Paragraph 43, 44, 45, 46, 47, 48, 49

-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

RECAPITALIZATION	12 Months Ended
RECAPITALIZATION	Dec. 31, 2012
RECAPITALIZATION
RECAPITALIZATION	25. RECAPITALIZATION On January 14, 2011 (the Closing), we completed a series of integrated transactions to recapitalize AIG (the Recapitalization) with the Department of the Treasury, the FRBNY and AIG Credit Facility Trust (the Trust), including the repayment of all amounts owed under the FRBNY Credit Facility. At the Closing, we recognized a net loss on extinguishment of debt, primarily representing $3.3 billion in accelerated amortization of the remaining prepaid commitment fee asset resulting from the termination of the FRBNY Credit Facility. Repayment and Termination of the FRBNY Credit Facility At the Closing, we repaid to the FRBNY approximately $21 billion in cash, representing complete repayment of all amounts owed under the FRBNY Credit Facility, and the FRBNY Credit Facility was terminated. The funds for the repayment came from the net cash proceeds from our sale of 67 percent of the ordinary shares of AIA in its initial public offering and from our sale of ALICO in 2010. Repurchase and Exchange of SPV Preferred Interests At the Closing, we drew down approximately $20.3 billion (the Series F Closing Drawdown Amount) under the Department of the Treasury Commitment (Series F) pursuant to the Series F SPA. The Series F Closing Drawdown Amount was the full amount remaining under the Department of the Treasury Commitment (Series F), less $2 billion that we designated to be available after the closing for general corporate purposes under a commitment relating to our Series G Preferred Stock described below (the Series G Drawdown Right). Our right to draw on the Department of the Treasury Commitment (Series F) (other than the Series G Drawdown Right) was terminated. We used the Series F Closing Drawdown Amount to repurchase all of the FRBNY's AIA SPV Preferred Interests and the ALICO SPV Preferred Interests. We transferred the SPV Preferred Interests to the Department of the Treasury as part of the consideration for the exchange of the Series F Preferred Stock (described below). During the first quarter of 2011, the liquidation preference of the ALICO SPV Preferred Interests was paid down in full. During the first quarter of 2012, the liquidation preference of the AIA SPV Preferred Interests was paid down in full. Issuance and Cancellation of Our Series G Preferred Stock At the Closing, we and the Department of the Treasury amended and restated the Series F SPA to provide for the issuance of 20,000 shares of Series G Preferred Stock by AIG to the Department of the Treasury. The Series G Preferred Stock was issued with a liquidation preference of zero. Because the net proceeds to us from the completion of the registered public offering of AIG Common Stock in May 2011 of $2.9 billion exceeded the $2.0 billion Series G Drawdown Right, the Series G Drawdown Right was terminated and the Series G Preferred Stock was cancelled immediately thereafter. Exchange of Our Series C, E and F Preferred Stock for AIG Common Stock and Series G Preferred Stock At the Closing: • the shares of our Series C Preferred Stock held by the Trust were exchanged for 562,868,096 shares of newly issued AIG Common Stock, which were subsequently transferred by the Trust to the Department of the Treasury; • the shares of our Series E Preferred Stock held by the Department of the Treasury were exchanged for 924,546,133 newly issued shares of AIG Common Stock; and • the shares of the Series F Preferred Stock held by the Department of the Treasury, were exchanged for (a) the SPV Preferred Interests, (b) 20,000 shares of the Series G Preferred Stock (subsequently cancelled) and (c) 167,623,733 shares of newly issued AIG Common Stock. For a discussion of the Department of the Treasury's sale of all of its ownership of AIG Common Stock, see Note 17 herein. Issuance of Warrants to Purchase AIG Common Stock On January 19, 2011, as part of the Recapitalization, we issued to the holders of record of AIG Common Stock as of January 13, 2011, by means of a dividend, ten-year warrants to purchase a total of 74,997,778 shares of AIG Common Stock at an exercise price of $45.00 per share. We retained 67,650 of these warrants for tax withholding purposes. No warrants were issued to the Trust, the Department of the Treasury or the FRBNY.

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 31, 2012

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

26. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

Consolidated Statements of Income (Loss)




	Three Months Ended
	March 31,						June 30,						September 30,						December 31,
(dollars in millions, except per share data)	March 31,						June 30,						September 30,						December 31,
(dollars in millions, except per share data)	2012			2011			2012			2011			2012			2011			2012			2011

Total revenues	$	17,291		$	16,283		$	16,006		$	15,547		$	16,505		$	11,606		$	15,854		$	16,376
Income (loss) from continuing operations before income taxes		4,466			(1,428	)		1,669			1,711			2,558			(2,938	)		629			2,771
Income (loss) from discontinued operations, net of income taxes		64			2,707			179			41			37			(1,052	)		(4,332	)		94
Net income (loss)		3,449			1,501			2,339			2,053			1,861			(3,826	)		(3,949	)		21,602
Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior, and senior preferred interests		208			252			–			141			–			145			–			96
Other		33			(55	)		7			64			5			19			9			26

Total net income from continuing operations attributable to noncontrolling interests		241			197			7			205			5			164			9			122
Net income (loss) from discontinued operations attributable to noncontrolling interests		–			7			–			12			–			–			–			1

Total net income (loss) attributable to noncontrolling interests		241			204			7			217			5			164			9			123
Net income (loss) attributable to AIG	$	3,208		$	1,297		$	2,332		$	1,836		$	1,856		$	(3,990	)	$	(3,958	)	$	21,479

Earnings (loss) per common share attributable to AIG common shareholders:
Basic and diluted:
Income (loss) from continuing operations	$	1.68		$	(1.42	)	$	1.23		$	0.98		$	1.11		$	(1.55	)	$	0.25		$	11.26
Income (loss) from discontinued operations	$	0.03		$	1.73		$	0.10		$	0.02		$	0.02		$	(0.55	)	$	(2.93	)	$	0.05

Weighted average shares outstanding:
Basic		1,875,972,970			1,557,748,353			1,756,689,067			1,836,713,069			1,642,472,814			1,899,500,628			1,476,457,586			1,898,734,116
Diluted		1,876,002,775			1,557,863,729			1,756,714,475			1,836,771,513			1,642,502,251			1,899,500,628			1,476,457,586			1,898,845,071

Noteworthy quarterly items – income (expense):
Other-than-temporary impairments		(618	)		(254	)		(216	)		(181	)		(114	)		(496	)		(219	)		(349	)
Net gain (loss) on sale of divested businesses		–			(72	)		–			(2	)		–			(2	)		(2	)		2
Adjustment to federal and foreign deferred tax valuation allowance		347			(604	)		1,239			564			205			(905	)		116			19,252
Net gain (loss) on extinguishment of debt		(21	)		(3,313	)		(11	)		(79	)		–			–			41			484
Change in fair value of AIA securities		1,795			1,062			(493	)		1,521			527			(2,315	)		240			1,021
Change in fair value of Maiden Lane Interests		1,498			995			1,306			(843	)		330			(974	)		–			218

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References+ Details

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

12 Months Ended

Dec. 31, 2012

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

27. INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

The following condensed consolidating financial statements reflect the results of SunAmerica Financial Group, Inc. (SAFG, Inc.), formerly known as AIG Life Holdings (U.S.), Inc. (AIGLH), a holding company and a 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



December 31, 2012
Assets:
Short-term investments	$	14,764	$	–	$	18,323		$	(4,279	)	$	28,808
Other investments(a)		3,902		–		345,706			(2,592	)		347,016

Total investments		18,666		–		364,029			(6,871	)		375,824
Cash		81		73		997			–			1,151
Loans to subsidiaries(b)		35,064		–		5,169			(40,233	)		–
Investment in consolidated subsidiaries(b)		70,781		43,891		(28,239	)		(86,433	)		–
Other assets, including current and deferred income taxes		23,153		150		121,345			(4,955	)		139,693
Assets held for sale		–		–		31,965			–			31,965

Total assets	$	147,745	$	44,114	$	495,266		$	(138,492	)	$	548,633

Liabilities:
Insurance liabilities	$	–	$	–	$	280,487		$	(235	)	$	280,252
Other long-term debt		36,366		1,638		10,197			299			48,500
Other liabilities, including intercompany balances(a)(c)		12,375		261		90,022			(9,146	)		93,512
Loans from subsidiaries(b)		1,002		472		41,754			(43,228	)		–
Liabilities held for sale		–		–		27,366			–			27,366

Total liabilities		49,743		2,371		449,826			(52,310	)		449,630

Other		–		–		192			142			334

Redeemable noncontrolling interests		–		–		192			142			334

Total AIG shareholders' equity		98,002		41,743		44,955			(86,698	)		98,002
Non-redeemable noncontrolling interests		–		–		293			374			667

Total equity		98,002		41,743		45,248			(86,324	)		98,669

Total liabilities and equity	$	147,745	$	44,114	$	495,266		$	(138,492	)	$	548,633

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	)		–			–
Investment in consolidated subsidiaries(b)(d)		80,990		32,361		(11,463	)		(101,888	)		–
Other assets, including current and deferred income taxes		25,019		2,722		117,992			(4,591	)		141,142

Total assets	$	165,623	$	35,096	$	563,478		$	(211,143	)	$	553,054

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)		15,863		249		77,767			(9,510	)		84,369
Loans from subsidiaries(b)		12,316		2,420		(14,736	)		–			–

Total liabilities		64,085		4,307		484,061			(110,315	)		442,138

Redeemable noncontrolling interests (see Note 18):
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	$	165,623	$	35,096	$	563,478		$	(211,143	)	$	553,054

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

(b) Eliminated in consolidation.

(c) For December 31, 2012 and December 31, 2011, includes intercompany tax payable of $6.1 billion and $9.8 billion, respectively, and intercompany derivative liabilities of $602 million and $901 million, respectively, for American International Group, Inc. (As Guarantor) and intercompany tax receivable of $120 million and $128 million, respectively, for SAFG, Inc.

Condensed Consolidating Statement of Income (Loss)

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



Year Ended December 31, 2012
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	1,970		$	2,315		$	–		$	(4,285	)	$	–
Change in fair value of ML III		2,287			–			601			–			2,888
Other income(b)		1,911			49			61,191			(383	)		62,768

Total revenues		6,168			2,364			61,792			(4,668	)		65,656

Expenses:
Other interest expense(c)		2,257			174			271			(383	)		2,319
Net loss on extinguishment of debt		9			–			–			–			9
Other expenses		1,602			–			52,404			–			54,006

Total expenses		3,868			174			52,675			(383	)		56,334

Income (loss) from continuing operations before income tax expense (benefit)		2,300			2,190			9,117			(4,285	)		9,322
Income tax expense (benefit)		(1,137	)		(17	)		2,724			–			1,570

Income (loss) from continuing operations		3,437			2,207			6,393			(4,285	)		7,752
Income (loss) from discontinued operations		1			–			(4,053	)		–			(4,052	)

Net income (loss)		3,438			2,207			2,340			(4,285	)		3,700
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			208			208
Other		–			–			54			–			54

Total net income attributable to noncontrolling interests		–			–			54			208			262

Net income (loss) attributable to AIG	$	3,438		$	2,207		$	2,286		$	(4,493	)	$	3,438

Year Ended December 31, 2011
Revenues:
Equity in earnings of consolidated subsidiaries(a)(d)	$	6,260		$	1,586		$	–		$	(7,846	)	$	–
Change in fair value of ML III		(723	)		–			77			–			(646	)
Other income(b)(d)		1,088			189			60,370			(1,189	)		60,458

Total revenues		6,625			1,775			60,447			(9,035	)		59,812

Expenses:
Interest expense on FRBNY Credit Facility		72			–			–			(2	)		70
Other interest expense(c)		2,845			281			437			(1,189	)		2,374
Net loss on extinguishment of debt		2,847			–			–			–			2,847
Other expenses		867			–			53,538			–			54,405

Total expenses		6,631			281			53,975			(1,191	)		59,696

Income (loss) from continuing operations before income tax expense (benefit)		(6	)		1,494			6,472			(7,844	)		116
Income tax expense (benefit)		(19,695	)		(103	)		374			–			(19,424	)

Income (loss) from continuing operations		19,689			1,597			6,098			(7,844	)		19,540
Income (loss) from discontinued operations		933			–			859			(2	)		1,790

Net income (loss)		20,622			1,597			6,957			(7,846	)		21,330
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			634			634
Other		–			–			54			–			54

Total income from continuing operations attributable to noncontrolling interests		–			–			54			634			688
Income from discontinued operations attributable to noncontrolling interests		–			–			20			–			20

Total net income attributable to noncontrolling interests		–			–			74			634			708

Net income (loss) attributable to AIG	$	20,622		$	1,597		$	6,883		$	(8,480	)	$	20,622

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



Year Ended December 31, 2010
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	21,385		$	1,695		$	–	$	(23,080	)	$	–
Change in fair value of ML III		–			–			1,792		–			1,792
Other income(b)		3,046			246			70,403		(2,658	)		71,037

Total revenues		24,431			1,941			72,195		(25,738	)		72,829

Expenses:
Interest expense on FRBNY Credit Facility		4,107			–			–		(79	)		4,028
Other interest expense(c)		2,279			378			2,711		(2,654	)		2,714
Loss on extinguishment of debt		104			–			–		–			104
Other expenses		1,664			–			44,072		–			45,736

Total expenses		8,154			378			46,783		(2,733	)		52,582

Income (loss) from continuing operations before income tax expense (benefit)		16,277			1,563			25,412		(23,005	)		20,247

Income tax expense (benefit)(d)		5,402			(101	)		1,692		–			6,993

Income (loss) from continuing operations		10,875			1,664			23,720		(23,005	)		13,254
Loss from discontinued operations		(817	)		–			(73)		(79	)		(969)

Net income (loss)		10,058			1,664			23,647		(23,084	)		12,285
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–		1,818			1,818
Other		–			–			354		–			354

Total income from continuing operations attributable to noncontrolling interests		–			–			354		1,818			2,172

Income from discontinued operations attributable to noncontrolling interests		–			–			55		–			55

Total net income attributable to noncontrolling interests		–			–			409		1,818			2,227

Net income (loss) attributable to AIG	$	10,058		$	1,664		$	23,238	$	(24,902	)	$	10,058

(a) Eliminated in consolidation.

(b) Includes intercompany income of $242 million, $489 million, and $2.6 billion for 2012, 2011, and 2010, respectively, for American International Group, Inc. (As Guarantor).

(c) Includes intercompany interest expense of $141 million, $700 million, and $28 million for 2012, 2011, and 2010, respectively, for American International Group, Inc. (As Guarantor).

(d) For 2010 and 2009, income taxes recorded by American International Group, Inc. (As Guarantor) include deferred tax expense attributable to foreign businesses sold and a valuation allowance to reduce the consolidated deferred tax asset to the amount more likely than not to be realized. For 2011, the income tax benefit includes the effect of releasing a significant portion of the deferred tax asset valuation allowance. See Note 24 herein for additional information.

Condensed Consolidating Statement of Comprehensive Income (Loss)




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

Year Ended December 31, 2012
Net income (loss)	$	3,438		$	2,207	$	2,340		$	(4,285	)	$	3,700
Other comprehensive income (loss)		6,093			3,973		7,158			(11,128	)		6,096

Comprehensive income (loss)		9,531			6,180		9,498			(15,413	)		9,796
Total comprehensive income attributable to noncontrolling interests		–			–		57			208			265

Comprehensive income (loss) attributable to AIG	$	9,531		$	6,180	$	9,441		$	(15,621	)	$	9,531

Year Ended December 31, 2011
Net income (loss)	$	20,622		$	1,597	$	6,957		$	(7,846	)	$	21,330
Other comprehensive income (loss)		(2,483	)		1,101		(2,674	)		1,452			(2,604	)

Comprehensive income (loss)		18,139			2,698		4,283			(6,394	)		18,726
Total comprehensive income (loss) attributable to noncontrolling interests		–			–		(47	)		634			587

Comprehensive income (loss) attributable to AIG	$	18,139		$	2,698	$	4,330		$	(7,028	)	$	18,139

Year Ended December 31, 2010
Net income (loss)	$	10,058		$	1,664	$	23,647		$	(23,084	)	$	12,285
Other comprehensive income (loss)		2,782			3,258		2,270			(5,347	)		2,963

Comprehensive income (loss)		12,840			4,922		25,917			(28,431	)		15,248
Total comprehensive income attributable to noncontrolling interests		–			–		590			1,818			2,408

Comprehensive income (loss) attributable to AIG	$	12,840		$	4,922	$	25,327		$	(30,249	)	$	12,840

Condensed Consolidating Statement of Cash Flows

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



Year Ended December 31, 2012
Net cash (used in) provided by operating activities – continuing operations		(825	)		2,682			(1,109	)		748
Net cash provided by operating activities – discontinued operations		–			–			2,928			2,928

Net cash (used in) provided by operating activities	$	(825	)	$	2,682		$	1,819		$	3,676

Cash flows from investing activities:
Sales of investments		16,874			–			84,025			100,899
Purchase of investments		(4,406	)		–			(70,222	)		(74,628	)
Loans to subsidiaries – net		5,126			–			(5,126	)		–
Contributions to subsidiaries – net		(152	)		–			152			–
Net change in restricted cash		(377	)		–			1,072			695
Net change in short-term investments		(2,029	)		–			(6,129	)		(8,158	)
Other, net		259			–			(785	)		(526	)

Net cash provided by investing activities – continuing operations		15,295			–			2,987			18,282
Net cash (used in) investing activities – discontinued operations		–			–			(1,670	)		(1,670	)

Net cash provided by investing activities		15,295			–			1,317			16,612

Cash flows from financing activities:
Issuance of long-term debt		3,754			–			1,090			4,844
Repayments of long-term debt		(3,238	)		–			(4,038	)		(7,276	)
Purchase of Common Stock		(13,000	)		–			–			(13,000	)
Intercompany loans – net		(2,032	)		(2,622	)		4,654			–
Other, net		(49	)		–			(4,951	)		(5,000	)

Net cash (used in) financing activities – continuing operations		(14,565	)		(2,622	)		(3,245	)		(20,432	)
Net cash (used in) financing activities – discontinued operations		–			–			(132	)		(132	)

Net cash (used in) financing activities		(14,565	)		(2,622	)		(3,377	)		(20,564	)

Effect of exchange rate changes on cash		–			–			16			16

Change in cash		(95	)		60			(225	)		(260	)
Cash at beginning of period		176			13			1,285			1,474
Reclassification to assets held for sale		–			–			(63	)		(63	)

Cash at end of period	$	81		$	73		$	997		$	1,151



Year Ended December 31, 2011
Net cash (used in) provided by operating activities – continuing operations	$	(5,600	)	$	1,277		$	(1,933	)	$	(6,256	)
Net cash provided by operating activities – discontinued operations		–			–			6,175			6,175

Net cash (used in) provided by operating activities		(5,600	)		1,277			4,242			(81	)

Cash flows from investing activities:
Sales of investments		2,565			–			82,134			84,699
Sales of divested businesses, net		1,075			–			(488	)		587
Purchase of investments		(19	)		–			(100,471	)		(100,490	)
Loans to subsidiaries – net		3,757			–			(3,757	)		–
Contributions to subsidiaries – net*		(15,973	)		(2	)		15,975			–
Net change in restricted cash		1,945			–			25,257			27,202
Net change in short-term investments		(7,130	)		–			25,929			18,799
Other, net*		1,543			–			(1,363	)		180

Net cash (used in) provided by investing activities – continuing operations		(12,237	)		(2	)		43,216			30,977
Net cash provided by investing activities – discontinued operations		–			–			5,471			5,471

Net cash (used in) provided by investing activities		(12,237	)		(2	)		48,687			36,448

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



Cash flows from financing activities:
FRBNY credit facility repayments		(14,622	)		–			–			(14,622	)
Issuance of long-term debt		2,135			–			1,055			3,190
Repayments of long-term debt		(6,181	)		–			(3,305	)		(9,486	)
Proceeds from drawdown on the Department of the Treasury Commitment*		20,292			–			–			20,292
Issuance of common stock		5,055			–			–			5,055
Intercompany loans – net		11,519			(1,262	)		(10,257	)		–
Purchase of common stock		(70	)		–			–			(70	)
Other, net*		(164	)		–			(35,325	)		(35,489	)

Net cash (used in) provided by financing activities – continuing operations		17,964			(1,262	)		(47,832	)		(31,130	)
Net cash (used in) financing activities – discontinued operations		–			–			(5,796	)		(5,796	)

Net cash (used in) provided by financing activities		17,964			(1,262	)		(53,628	)		(36,926	)

Effect of exchange rate changes on cash		–			–			29			29

Change in cash		127			13			(670	)		(530	)
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	$	176		$	13		$	1,285		$	1,474



Year Ended December 31, 2010
Net cash (used in) provided by operating activities – continuing operations	$	(1,942	)	$	(141	)	$	8,244		$	6,161
Net cash provided by operating activities – discontinued operations		–			–			10,436			10,436

Net cash (used in) provided by operating activities		(1,942	)		(141	)		18,680			16,597

Cash flows from investing activities:
Sales of investments		3,997			–			86,869			90,866
Sales of divested businesses, net		278			–			21,482			21,760
Purchase of investments		(55	)		–			(92,780	)		(92,835	)
Loans to subsidiaries – net		5,703			–			(5,703	)		–
Contributions to subsidiaries – net*		(2,574	)		–			2,574			–
Net change in restricted cash		(183	)		–			(26,843	)		(27,026	)
Net change in short-term investments		(4,291	)		–			1,845			(2,446	)
Other, net*		(300	)		–			133			(167	)

Net cash (used in) provided by investing activities – continuing operations		2,575			–			(12,423	)		(9,848	)
Net cash (used in) investing activities – discontinued operations		–			–			(64	)		(64	)

Net cash (used in) provided by investing activities		2,575			–			(12,487	)		(9,912	)

Cash flows from financing activities:
FRBNY credit facility repayments		(19,110	)		–			(4,068	)		(23,178	)
FRBNY credit facility borrowings		19,900			–			–			19,900
Issuance of long-term debt		1,996			–			1,346			3,342
Repayments of long-term debt		(3,681	)		(500	)		(3,805	)		(7,986	)
Proceeds from drawdown on the Department of the Treasury Commitment*		2,199			–			–			2,199
Intercompany loans – net		(1,777	)		639			1,138			–
Other, net*		(168	)		–			(1,126	)		(1,294	)

Net cash (used in) provided by financing activities – continuing operations		(641	)		139			(6,515	)		(7,017	)
Net cash (used in) financing activities – discontinued operations		–			–			(2,244	)		(2,244	)

Net cash (used in) provided by financing activities		(641	)		139			(8,759	)		(9,261	)

Effect of exchange rate changes on cash		–			–			39			39

Change in cash		(8	)		(2	)		(2,527	)		(2,537	)
Cash at beginning of period		57			2			4,341			4,400
Change in cash of businesses held for sale		–			–			(305	)		(305	)

Cash at end of period	$	49		$	–		$	1,509		$	1,558

* Includes activities related to the Recapitalization. See Note 17 herein.

Supplementary Disclosure of Cash Flow Information

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



Cash (paid) received during the Year Ended December 31, 2012 for:
Interest:
Third party	$	(2,089	)	$	(128	)	$	(1,820	)	$	(4,037	)
Intercompany		(133	)		(56	)		189			–
Taxes:
Income tax authorities	$	(7	)	$	–		$	(440	)	$	(447	)
Intercompany		230			(41	)		(189	)		–

Cash (paid) received during the Year Ended December 31, 2011 for:
Interest:
Third party*	$	(6,909	)	$	(128	)	$	(1,948	)	$	(8,985	)
Intercompany		(311	)		(169	)		480			–
Taxes:
Income tax authorities	$	13		$	–		$	(729	)	$	(716	)
Intercompany		(335	)		1			334			–

Cash (paid) received during the Year Ended December 31, 2010 for:
Interest:
Third party	$	(2,493	)	$	(166	)	$	(2,507	)	$	(5,166	)
Intercompany		(12	)		(222	)		234			–
Taxes:
Income tax authorities	$	(32	)	$	–		$	(970	)	$	(1,002	)
Intercompany		859			–			(859	)		–

* 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:




Year Ended December 31, (in millions)	2012		2011		2010

Intercompany non-cash financing and investing activities:
Capital contributions
to subsidiaries through the forgiveness of loans	$	–	$	–	$	2,510
in the form of bond available for sale securities		4,078		–		–
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		1,364
Exchange of intercompany payable with loan payable		–		–		469
Investment assets received through reduction of intercompany loan receivable		–		–		468
Paydown of FRBNY Credit Facility by subsidiary		–		–		4,068
Other capital contributions – net		579		523		346

Schedule I Summary of Investments - Other than Investments in Related Parties

12 Months Ended

Dec. 31, 2012

Schedule I Summary of Investments - Other than Investments in Related Parties

Schedule I Summary of Investments - Other than Investments in Related Parties

At December 31, 2012 (in millions)	Cost^*		Fair Value		Amount at which shown in the Balance Sheet



Fixed maturities:
U.S. government and government sponsored entities	$	9,955	$	10,277	$	10,277
Obligations of states, municipalities and political subdivisions		33,042		35,705		35,705
Non-U.S. governments		25,451		26,802		26,802
Public utilities		22,266		24,993		24,993
All other corporate debt securities		114,782		127,439		127,439
Mortgage-backed, asset-backed and collateralized		65,237		69,327		69,327

Total fixed maturity securities		270,733		294,543		294,543

Equity securities and mutual funds:
Common stock:
Public utilities		9		11		11
Banks, trust and insurance companies		1,579		3,036		3,036
Industrial, miscellaneous and all other		553		631		631

Total common stock		2,141		3,678		3,678
Preferred stock		56		78		78
Mutual funds		105		118		118

Total equity securities and mutual funds		2,302		3,874		3,874

Mortgage and other loans receivable, net of allowance		19,482		20,353		19,482
Other invested assets		28,257		26,711		29,117
Short-term investments, at cost (approximates fair value)		28,808		28,808		28,808
Derivative assets		3,671		3,671		3,671

Total investments	$	353,253	$	377,960	$	379,495

* Original cost of equity securities and fixed maturities is reduced by other-than-temporary impairment charges, and, as to fixed maturity securities, reduced by repayments and adjusted for amortization of premiums or accretion of discounts.

- Definition

The entire disclosure for the schedule applicable to insurance companies summarizing investments held as of the most recent audited balance sheet. At a minimum, such summary is by three major categories of investments including: (1) fixed maturities primarily consisting of bonds, including convertibles and bonds with warrants, and redeemable preferred stocks, (2) equity securities primarily consisting of common stocks and nonredeemable preferred stocks, and (3) other investments including mortgage loans on real estate, real estate held for investment, real estate acquired in satisfaction of debt, policy loans, other long-term investments, and short-term investments not otherwise categorized. The information provided with respect to each item within each category includes: (A) the original cost of equity securities and, as to fixed maturity securities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts, (B) fair value as of the reporting date, and (C) the amount at which the item within each category is shown in the statement of financial position; with respect to (C), if the amount at which shown in the statement of financial position is different from the items original [amortized] cost or fair value, an explanation of the difference may be included herein.

+ References+ Details

Schedule II Condensed Financial Information of Registrant

12 Months Ended

Dec. 31, 2012

Schedule II Condensed Financial Information of Registrant

Schedule II Condensed Financial Information of Registrant

Balance Sheet – Parent Company Only




December 31, (in millions)	2012			2011

Assets:
Short-term investments	$	14,764		$	12,868
Other investments		3,902			6,599

Total investments		18,666			19,467
Cash		81			176
Loans to subsidiaries^*		35,064			39,971
Due from affiliates – net^*		422			303
Current and deferred income taxes		20,601			22,944
Investments in consolidated subsidiaries^*		70,781			80,990
Other assets		2,130			1,772

Total assets	$	147,745		$	165,623

Liabilities:
Intercompany tax payable^*	$	6,078		$	9,801
Notes and bonds payable		14,334			12,725
Junior subordinated debt		9,416			9,327
MIP notes payable		9,287			10,138
Series AIGFP matched notes and bonds payable		3,329			3,560
Loans and mortgages payable		–			156
Loans from subsidiaries^*		1,002			12,316
Other liabilities (includes intercompany derivative liabilities of $602 in 2012 and $901 in 2011)		6,297			6,062

Total liabilities		49,743			64,085

AIG Shareholders' equity:
Common stock		4,766			4,766
Treasury stock		(13,924	)		(942	)
Additional paid-in capital		80,410			80,459
Retained earnings		14,176			10,774
Accumulated other comprehensive income		12,574			6,481

Total AIG shareholders' equity		98,002			101,538

Total liabilities and equity	$	147,745		$	165,623

* Eliminated in consolidation.

See Accompanying Notes to Condensed Financial Information of Registrant, which include a summary of revisions to prior year balances in connection with a change in accounting principle.

Statement of Income (Loss) – Parent Company Only




Years Ended December 31, (in millions)	2012			2011			2010

Revenues:
Equity in earnings of consolidated subsidiaries^*	$	1,970		$	6,260		$	21,385
Interest income		358			596			3,249
Change in fair value of ML III		2,287			(723	)		–
Net realized capital gains (losses)		747			213			(209	)
Other income		806			279			6
Expenses:
Accrued and compounding interest		–			(24	)		(636	)
Amortization of prepaid commitment asset		–			(48	)		(3,471	)

Total interest expense on FRBNY Credit Facility		–			(72	)		(4,107	)
Other interest expense		(2,257	)		(2,845	)		(2,279	)
Restructuring expense and related asset impairment and other expenses		(47	)		(36	)		(451	)
Net loss on extinguishment of debt		(9	)		(2,847	)		(104	)
Other expenses		(1,555	)		(831	)		(1,213	)

Income (loss) from continuing operations before income tax expense (benefit)		2,300			(6	)		16,277
Income tax expense (benefit)		(1,137	)		(19,695	)		5,402

Net income		3,437			19,689			10,875
Income (loss) from discontinued operations		1			933			(817	)

Net income attributable to AIG Parent Company	$	3,438		$	20,622		$	10,058

* Eliminated in consolidation.

See Accompanying Notes to Condensed Financial Information of Registrant, which include a summary of revisions to prior year balances in connection with a change in accounting principle.

Statement of Comprehensive Income (Loss) – Parent Company Only




Years Ended December 31, (in millions)	2012		2011			2010

Net income (loss)	$	3,438	$	20,622		$	10,058
Other comprehensive income (loss)		6,093		(2,483	)		2,782

Total comprehensive income attributable to AIG	$	9,531	$	18,139		$	12,840

See accompanying Notes to Condensed Financial Information of Registrant.

Statement of Cash Flows – Parent Company Only




Years Ended December 31, (in millions)	2012			2011			2010

Net cash used in operating activities	$	(825	)	$	(5,600	)	$	(1,942	)

Cash flows from investing activities:
Sales and maturities of investments		16,546			2,224			3,212
Sales of divested businesses		–			1,075			278
Purchase of investments		(4,406	)		(19	)		(55	)
Net change in restricted cash		(377	)		1,945			(183	)
Net change in short-term investments		(2,029	)		(7,130	)		(4,291	)
Contributions to subsidiaries – net		(152	)		(15,973	)		(2,574	)
Payments received on mortgages and other loan receivables		328			341			785
Loans to subsidiaries – net		5,126			3,757			5,703
Other, net		259			1,543			(300	)

Net cash provided by (used in) investing activities		15,295			(12,237	)		2,575

Cash flows from financing activities:
Federal Reserve Bank of New York credit facility borrowings		–			–			19,900
Federal Reserve Bank of New York credit facility repayments		–			(14,622	)		(19,110	)
Issuance of long-term debt		3,754			2,135			1,996
Repayment of long-term debt		(3,238	)		(6,181	)		(3,681	)
Proceeds from drawdown on the Department of the Treasury Commitment		–			20,292			2,199
Issuance of Common Stock		–			5,055			–
Loans from subsidiaries – net		(2,032	)		11,519			(1,777	)
Purchase of Common Stock		(13,000	)		(70	)		–
Other, net		(49	)		(164	)		(168	)

Net cash provided by (used in) financing activities		(14,565	)		17,964			(641	)

Change in cash		(95	)		127			(8	)
Cash at beginning of year		176			49			57

Cash at end of year	$	81		$	176		$	49

Supplementary disclosure of cash flow information:




	Years Ended December 31,
(in millions)	2012		2011		2010

Intercompany non-cash financing and investing activities:
Capital contributions in the form of available for sale securities	$	4,078	$	–	$	–
Capital contributions to subsidiaries through forgiveness of loans		–		–		2,510
Other capital contributions – net		579		523		346
Paydown of FRBNY Credit Facility by subsidiary		–		–		4,068
Investment assets received through reduction of intercompany loan receivable		–		–		468
Exchange of intercompany payable with loan payable		–		–		469
Intercompany loan receivable offset by intercompany payable		–		18,284		1,364
Return of capital and dividend received in the form of cancellation of intercompany loan		9,303		–		–
Return of capital and dividend received in the form of bond trading securities		3,320		3,668		–

See Accompanying Notes to Condensed Financial Information of Registrant.

Notes to Condensed Financial Information of Registrant

American International Group, Inc.'s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant's 2012 Annual Report on Form 10-K for the year ended December 31, 2012 (2012 Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 21, 2013.

On January 1, 2012, the Registrant retrospectively adopted a standard that changed its subsidiaries' method of accounting for costs associated with acquiring or renewing insurance contracts. The standard clarifies how to determine whether the costs incurred in connection with the acquisition of new or renewal insurance contracts qualify as deferred policy acquisition costs. Accordingly, the Registrant revised its financial information and accompanying notes included herein.

The following tables present the Condensed Balance Sheet as of December 31, 2011 and the Condensed Statement of Income (Loss) for the years ended December 31, 2011 and 2010, showing the amounts previously reported, the effect of the change due to the adoption of the standard and the adjusted amounts that are reflected in the Registrant's condensed financial information:

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



Assets:
Investments in consolidated subsidiaries	$	84,403	$	(3,413)		$	80,990

Total assets		169,036		(3,413	)		165,623

AIG shareholders' equity:
Retained earnings		14,332		(3,558	)		10,774
Accumulated other comprehensive income		6,336		145			6,481

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

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



Statement of Operations:
Equity in earnings of consolidated subsidiaries	$	5,222		$	1,038		$	6,260

Income (loss) from continuing operations before income tax benefit		(1,044	)		1,038			(6	)

Income tax benefit		(17,909	)		(1,786	)		(19,695	)

Net income		16,865			2,824			19,689

Net income attributable to AIG Parent Company	$	17,798		$	2,824		$	20,622

Year Ended December 31, 2010 (dollars in millions)	As Previously Reported			Effect of Change			As Currently Reported



Statement of Operations:
Equity in earnings of consolidated subsidiaries	$	18,040		$	3,345		$	21,385

Income from continuing operations before income tax benefit		12,932			3,345			16,277

Income tax expense		5,144			258			5,402

Net income		7,788			3,087			10,875

Loss from discontinued operations		(2	)		(815	)		(817	)

Net income attributable to AIG Parent Company	$	7,786		$	2,272		$	10,058

The Registrant adopted this standard on January 1, 2012 and included the Condensed Consolidating Statement of Comprehensive Income (Loss).

The Registrant includes in its statement of income (loss) dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

On December 1, 2009, the Registrant and the Federal Reserve Bank of New York (FRBNY) completed two transactions that reduced the outstanding balance and the maximum amount of credit available under the FRBNY Credit Facility by $25 billion. In connection with one of those transactions, the Registrant assigned $16 billion of its obligation under the FRBNY Credit Agreement to a subsidiary. The Registrant subsequently settled its obligation to the subsidiary with a $15.5 billion non-cash dividend from the subsidiary. The difference was recognized over the remaining term of the FRBNY Credit Agreement as a reduction to interest expense. The remaining difference was derecognized by AIG through earnings due to the repayment in January 2011 of all amounts owed under, and the termination of, the FRBNY Credit Facility.

Certain prior period amounts have been reclassified to conform to the current period presentation.

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

The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due to Affiliates in the accompanying Condensed Balance Sheets.

Income taxes in the accompanying Condensed Balance Sheets are comprised of the Registrant's current and deferred tax assets, the consolidated group's current income tax receivable, deferred taxes related to tax attribute carryforwards of AIG's U.S. consolidated income tax group and a valuation allowance to reduce the consolidated deferred tax asset to an amount more likely than not to be realized. See Note 24 to the Consolidated Financial Statements for additional information.

The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards and valuation allowance are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries.

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References+ Details

Schedule III Supplementary Insurance Information

12 Months Ended

Dec. 31, 2012

Schedule III Supplementary Insurance Information

Schedule III Supplementary Insurance Information

At December 31, 2012, 2011 and 2010 and for the years then ended

Segment (in millions)	Deferred Policy Acquisition Costs		Liability for Unpaid Claims and Claims Adjustment Expense, Future Policy Benefits^(a)		Reserve for Unearned Premiums		Policy and Contract Claims^(b)		Premiums and Policy Fees			Net Investment Income			Losses and Loss Expenses Incurred, Benefits			Amortization of Deferred Policy Acquisition Costs		Other Operating Expenses			Net Premiums Written



2012
AIG Property Casualty	$	2,441	$	90,011	$	22,161	$	24	$	34,873		$	4,820		$	25,785		$	4,761	$	7,317		$	34,436
AIG Life and Retirement		5,672		32,288		–		856		5,219			10,755			9,977			931		2,079			–
Mortgage Guaranty		44		1,957		376		–		715			146			659			17		177			858
Other		25		75		–		9		(5	)		4,622			(82	)		–		(338	)		–

	$	8,182	$	124,331	$	22,537	$	889	$	40,802		$	20,343		$	36,339		$	5,709	$	9,235		$	35,294

2011
AIG Property Casualty	$	2,375	$	91,686	$	23,236	$	26	$	35,689		$	4,348		$	27,949		$	4,324	$	6,539		$	34,840
AIG Life and Retirement		6,502		30,607		–		880		5,218			9,882			9,132			1,142		2,085			–
Mortgage Guaranty		25		3,104		229		–		792			132			834			20		167			801
Other		35		65		–		5		(4	)		393			2			–		(333	)		–

	$	8,937	$	125,462	$	23,465	$	911	$	41,695		$	14,755		$	37,917		$	5,486	$	8,458		$	35,641

2010
AIG Property Casualty	$	2,099	$	90,026	$	23,573	$	21	$	32,521		$	4,392		$	27,867		$	3,894	$	6,207		$	31,612
AIG Life and Retirement		7,258		28,192		–		686		5,230			10,768			8,754			1,086		2,206			–
Mortgage Guaranty		32		3,907		230		–		975			1,941			500			26		245			756
Divested Businesses		–		–		–		–		9,266			3,963			8,719			814		1,821			–
Other		42		294		–		5		37			(130	)		39			1		(316	)		–

	$	9,431	$	122,419	$	23,803	$	712	$	48,029		$	20,934		$	45,879		$	5,821	$	10,163		$	32,368

(a) Liability for unpaid claims and claims adjustment expense with respect to the General Insurance operations are net of discounts of $3.25 billion, $3.18 billion and $3.22 billion at December 31, 2012, 2011 and 2010, respectively.

(b) Reflected in insurance balances payable in the accompanying Consolidated Balance Sheet.

- Definition

The entire disclosure for required supplementary insurance information giving segment detail in support of various balance sheet and income statement captions. The balance sheet information generally is presented as of the date of each audited balance sheet filed, and the income statement information generally is presented for each period for which an audited income statement is required to be filed. Supplementary insurance information table includes segment name; deferred policy acquisition costs; future policy benefits, losses, claims and loss expenses; unearned premiums; other policy claims and benefits payable; premium revenue; net investment income; benefits, claims, losses and settlement expenses; amortization of deferred policy acquisition costs; other operating expenses; and premiums written.

+ References+ Details

Schedule IV Reinsurance

12 Months Ended

Dec. 31, 2012

Schedule IV Reinsurance

Schedule IV Reinsurance

At December 31, 2012, 2011 and 2010 and for the years then ended

(in millions)	Gross Amount		Ceded to Other Companies			Assumed from Other Companies			Net Amount



2012
Long-duration insurance in force	$	918,260	$	129,159		$	458		$	789,559		0.1	%

Premiums:
AIG Property Casualty	$	40,428	$	9,420		$	3,428		$	34,436		10.0	%
AIG Life and Retirement		3,014		602			16			2,428		0.7
Mortgage Guaranty		938		70			(10	)		858		(1.2	)
Divested businesses		11		–			–			11		–
Eliminations		–		7			7			–		–

Total premiums	$	44,391	$	10,099		$	3,441		$	37,733		9.1	%

2011
Long-duration insurance in force	$	918,982	$	140,156		$	643		$	779,469		0.1	%

AIG Property Casualty	$	41,710	$	9,901		$	3,031		$	34,840		8.7	%
AIG Life and Retirement		3,085		591			19			2,513		0.8
Mortgage Guaranty		898		97			–			801		–
Divested businesses		15		6			2			11		18.2
Eliminations		–		(5	)		(5	)		–		–

Total premiums	$	45,708	$	10,590		$	3,047		$	38,165		8.0	%

2010
Long-duration insurance in force^(a)	$	891,145	$	148,605		$	1,220		$	743,760		0.2	%

Premiums:
AIG Property Casualty	$	38,965	$	9,795		$	2,442		$	31,612		7.7	%
AIG Life and Retirement		3,119		621			22			2,520		0.9
Mortgage Guaranty		927		169			(2	)		756		(0.3	)
Divested businesses		9,643		435			27			9,235	^(b)	0.3
Eliminations		–		(25	)		(25	)		–		–

Total premiums	$	52,654	$	10,995		$	2,464		$	44,123		5.6	%

(a) Excludes long-duration insurance in force of $399.4 billion related to held-for-sale entities at December 31, 2010.

(b) Includes accident and health premiums of $1.57 billion in 2010.

- Definition

The entire disclosure for the supplemental schedule of reinsurance information required to be filed for each period for which an audited income statement is presented. Reinsurance schedule includes the type of insurance, gross amount of premiums, premiums ceded to other companies, premiums assumed from other companies, net amount of premium revenue, and the percentage of the premiums assumed to net premium revenue.

+ References+ Details

Schedule V Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2012

Schedule V Valuation and Qualifying Accounts

Schedule V Valuation and Qualifying Accounts

For the years ended December 31, 2012, 2011 and 2010

			Additions


(in millions)	Balance, Beginning of year		Charged to Costs and Expenses			Charge Offs			Activity of Discontinued Operations			Reclassified to Assets of Businesses Held for Sale			Divested Businesses			Other Changes^*			Balance, End of year

2012
Allowance for mortgage and other loans receivable	$	740	$	(103	)	$	(43	)	$	(205	)	$	–		$	–		$	16		$	405
Allowance for premiums and insurances balances receivable		484		174			(36	)		–			–			–			2			624
Allowance for reinsurance assets		364		(4	)		(1	)		–			–			–			(21	)		338
Federal and foreign valuation allowance for deferred tax assets		11,047		(1,907	)		–			–			–			–			(1,104	)		8,036

2011
Allowance for mortgage and other loans receivable	$	878	$	(18)		$	(125	)	$	22		$	–		$	(55)		$	38		$	740
Allowance for premiums and insurances balances receivable		515		63			(94	)		–			–			–			–			484
Allowance for reinsurance assets		492		(116	)		(63	)		–			–			–			51			364
Federal and foreign valuation allowance for deferred tax assets		27,548		(18,307	)		–			–			–			–			1,806			11,047

2010
Allowance for mortgage and other loans receivable	$	2,444	$	348		$	(354	)	$	125		$	(58	)	$	(1,635	)	$	8		$	878
Allowance for premiums and insurances balances receivable		537		87			(113	)		(2	)		–			(7	)		13			515
Allowance for reinsurance assets		440		3			14			(4	)		–			–			39			492
Federal and foreign valuation allowance for deferred tax assets		25,605		1,361			–			1,292			–			–			(710	)		27,548

* Includes recoveries of amounts previously charged off and reclassifications to/from other accounts.

BASIS OF PRESENTATION (Policies)	12 Months Ended
BASIS OF PRESENTATION (Policies)	Dec. 31, 2012
BASIS OF 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. We consider the 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: • classification of International Lease Finance Corporation (ILFC) as held for sale; • insurance liabilities, including property and casualty and mortgage guaranty unpaid claims and claims adjustment expenses and future policy benefits for life and accident and health contracts; • income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset; • recoverability of assets including reinsurance assets; • 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, our consolidated financial condition, results of operations and cash flows could be materially affected.
Prior Period Reclassifications and Segment Changes	Prior period amounts were reclassified to conform to the current period presentation. Significant items include: • Segment changes discussed in Note 3 herein. • Revisions attributable to discontinued operations presented in Note 4 herein. • Reclassified approximately $1.3 billion of income taxes from Accumulated other comprehensive income to Additional paid in capital as of January 1, 2010 to correct the presentation of components of Shareholders' Equity. These income taxes related to the creation in 2009 of special purpose vehicles that held our interests in AIA Group Ltd. (AIA) and American Life Insurance Company (ALICO). There was no effect on Total AIG shareholders' equity or on Total equity as a result of this reclassification. • Changes were made to the presentation within the Consolidated Statement of Operations to align the presentation of changes in the fair value of derivatives with changes in the administration of AIG's derivatives portfolio. 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).

- 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 (Policies)

12 Months Ended

Dec. 31, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Revenues and expenses

Reinsurance premiums ceded are recognized as a reduction in revenues over the period the reinsurance coverage is provided in proportion to the risks to which the premiums relate.

Premiums for long duration insurance products and life contingent annuities are recognized as revenues when due. Estimates for premiums due but not yet collected are accrued.

Net investment income: For a discussion of our policies on net investment income, see Note 7 herein.

Net realized capital gains (losses): For a discussion of our policies on net realized capital gains (losses), see Note 7 herein.

Other income from the operations of the DIB and our Other Operations category consists of the following:

•: Change in fair value relating to financial assets and liabilities for which the fair value option has been elected.
•: Interest income and related expenses, including amortization of premiums and accretion of discounts on bonds with changes in the timing and the amount of expected principal and interest cash flows reflected in the yield, as applicable.
•: Dividend income from common and preferred stock and distributions from other investments.
•: Changes in the fair value of trading securities and spot commodities sold but not yet purchased, futures, hybrid financial instruments, securities purchased under agreements to resell, and securities sold under agreements to repurchase for which the fair value option was elected.
•: Realized capital gains and losses from the sales of available for sale securities and investments in private equity funds and hedge funds and other investments.
•: Income earned on real estate based investments and related losses from property level impairments and financing costs.

•: Exchange gains and losses resulting from foreign currency transactions.
•: Reductions to the cost basis of securities available for sale for other-than-temporary impairments.
•: Earnings from private equity funds and hedge fund investments accounted for under the equity method.
•: Gains and losses recognized in earnings on derivatives for the effective portion and their related hedged items.

Amortization of deferred acquisition costs: For a discussion of our accounting policies on amortization of deferred policy acquisition costs, see Note 10 herein.

Policyholder benefits and claims incurred

Held-for-sale and discontinued operations

(b) Held-for-sale and discontinued operations: For a discussion of our accounting policies on reporting a business as held for sale or as discontinued operations, see Note 4 herein.

Investments

(c) Investments:

Other invested assets: For a discussion of our accounting policies on classification, measurement and other-than-temporary impairment of other invested assets, see Note 7 herein.

For a discussion of our accounting policies on securities purchased under agreements to resell, see Note 7 herein.

Cash

(d) Cash: Cash represents cash on hand and non-interest bearing demand deposits.

Premiums and other receivables - net

Reinsurance assets

(f) Reinsurance assets – net: For a discussion about our accounting policies on reinsurance assets – net, see Note 9 herein.

Deferred policy acquisition costs (DAC):

(g) Deferred policy acquisition costs (DAC): For discussion of our accounting policies on deferred policy acquisition costs, see Note 10 herein

Derivative assets and Derivative liabilities, at fair value

(h) Derivative assets and derivative liabilities, at fair value: For discussion of our accounting policies on derivative assets and derivative liabilities, at fair value, see Note 12 herein.

Other assets

Goodwill

At December 31, 2012, we performed our annual goodwill impairment test. Based on the results of the goodwill impairment test, we concluded that the remaining goodwill was not impaired.

The following table presents the changes in goodwill by reportable segment:

(in millions)	AIG Property Casualty			Aircraft Leasing			Other			Total



Balance at December 31, 2010:
Goodwill – gross	$	2,529		$	–		$	2,281		$	4,810
Accumulated impairments		(1,196	)		–			(2,281	)		(3,477	)

Net goodwill		1,333			–			–			1,333

Increase (decrease) due to:
Acquisition		3			15			8			26
Other^(a)		14			–			–			14

Balance at December 31, 2011:
Goodwill – gross	$	2,546		$	15		$	2,289		$	4,850
Accumulated impairments		(1,196	)		–			(2,281	)		(3,477	)

Net goodwill	$	1,350		$	15		$	8		$	1,373

Increase (decrease) due to:
Acquisition		119			–			–			119
Other^(a)		–			–			–			–
Goodwill impairment included in discontinued operations		–			(15	)		(8	)		(23	)

Balance at December 31, 2012:
Goodwill – gross	$	2,665		$	–		$	2,281		$	4,946
Accumulated impairments		(1,196	)		–			(2,281	)		(3,477	)

Net goodwill	$	1,469		$	–		$	–		$	1,469

(a) Includes foreign exchange translation and purchase price adjustments.

Testing Goodwill for Impairment

Separate accounts

Liability for unpaid claims and claims adjustment expense

(l) Liability for unpaid claims and claims adjustment expense: For discussion of our accounting policies on liability for unpaid claims and claims adjustment expense, see Note 13 herein.

Future policy benefits for life and accident and health insurance contracts and Policyholder contract deposits

Other policyholder funds

(n) Other policyholder funds: Other policyholder funds are reported at cost and include any policyholder funds on deposit that encompass premium deposits and similar items.

Income taxes

(o) Income taxes: For a discussion of our accounting policies on income taxes, see Note 24 herein.

Other liabilities

For further discussion of secured financing arrangements, see Note 7 herein.

Long-term debt

(q) Long-term debt: For a discussion of our accounting policies on long-term debt, see Note 15 herein.

Contingent liabilities

(r) Contingent liabilities: For a discussion of our accounting policies on contingent liabilities, see Note 16 herein.

Foreign currency

Noncontrolling interests

(t) Noncontrolling interests: For discussion of our accounting policies on noncontrolling interests, see Note 18 herein.

Earnings (loss) per share

(u) Earnings (loss) per share: For a discussion of our accounting policies on earnings (loss) per share, see Note 19 herein

Future Application of Accounting Standards

Future Application of Accounting Standards

Testing Indefinite-Lived Intangible Assets for Impairment

Disclosures about Offsetting Assets and Liabilities

Presentation of Comprehensive Income

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

2012

New Accounting Pronouncements or Change in Accounting Principles

Accounting Standards Adopted

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 DAC.

The method we use to amortize DAC 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:
Deferred income taxes	$	17,897	$	1,718		$	19,615
Deferred policy acquisition costs		14,026		(5,089	)		8,937
Other assets		11,705		(42	)		11,663

Total assets		556,467		(3,413	)		553,054

Retained earnings		14,332		(3,558	)		10,774
Accumulated other comprehensive income		6,336		145			6,481

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

Year Ended December 31, 2011 (dollars in millions, except per share data)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital gains	$	681		$	20		$	701

Total revenues		59,792			20			59,812

Interest credited to policyholder account balances		4,446			21			4,467
Amortization of deferred acquisition costs		8,019			(2,533	)		5,486
Other acquisition and other insurance expenses		6,091			2,367			8,458
Net (gain) loss on sale of properties and divested businesses		74			–			74

Total benefits, claims and expenses		59,840			(144	)		59,696

Income (loss) from continuing operations before income tax benefit		(48	)		164			116

Income tax benefit^(b)		(17,696	)		(1,728	)		(19,424	)

Income from continuing operations		17,648			1,892			19,540
Income from discontinued operations, net of income tax expense^(c)		858			932			1,790

Net income		18,506			2,824			21,330

Net income attributable to AIG		17,798			2,824			20,622

Net income attributable to AIG common shareholders		16,986			2,824			19,810

Income per share attributable to AIG common shareholders:
Basic and diluted
Income from continuing operations	$	8.98		$	1.05			10.03
Income from discontinued operations	$	0.46		$	0.52			0.98

(b) Includes an adjustment to the deferred tax valuation allowance of $1.8 billion in the fourth quarter of 2011.

Year Ended December 31, 2010 (dollars in millions, except per share data)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital losses	$	(727	)	$	11		$	(716	)

Total revenues		72,818			11			72,829

Interest credited to policyholder account balances		4,480			7			4,487
Amortization of deferred acquisition costs		9,134			(3,313	)		5,821
Other acquisition and other insurance expenses		6,775			3,388			10,163
Net (gain) loss on sale of properties and divested businesses^(b)		(17,767	)		(1,799	)		(19,566	)

Total benefits, claims and expenses		54,301			(1,719	)		52,582

Income from continuing operations before income tax expense		18,517			1,730			20,247

Income tax expense^(c)		6,116			877			6,993

Income from continuing operations		12,401			853			13,254
Income (loss) from discontinued operations, net of income tax expense^(d)		(2,388	)		1,419			(969	)

Net income		10,013			2,272			12,285

Net income attributable to AIG		7,786			2,272			10,058

Net income attributable to AIG common shareholders		1,583			463			2,046

Income (loss) per share attributable to AIG common shareholders:
Basic and diluted
Income from continuing operations	$	15.23		$	1.27		$	16.50
Loss from discontinued operations	$	3.63		$	2.11		$	1.52

(b) Represents the effect on the gain on sale of AIA ordinary shares, which were sold in the fourth quarter of 2010.

(d) Includes an adjustment to the after-tax gain on the sale of ALICO of $1.6 billion in the fourth quarter of 2010.

Year Ended December 31, 2011 (in millions)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net income	$	18,506		$	2,824		$	21,330
(Income) loss from discontinued operations		(858	)		(932	)		(1,790	)

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings – net		(937	)		(20	)		(957	)
Depreciation and other amortization		7,935			(2,511	)		5,424
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(7,796	)		2,367			(5,429	)
Current and deferred income taxes – net		(18,333	)		(1,728	)		(20,061	)
Total adjustments		(23,904	)		(1,892	)		(25,796	)

Year Ended December 31, 2010 (in millions)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net income	$	10,013		$	2,272		$	12,285
(Income) loss from discontinued operations		2,388			(1,419	)		969

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gains) losses on sales of divested businesses		(17,767	)		(1,799	)		(19,566	)
Unrealized gains in earnings – net		(1,509	)		(20	)		(1,529	)
Depreciation and other amortization		8,488			(2,511	)		5,977
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(8,300	)		2,367			(5,933	)
Current and deferred income taxes – net		7,780			(1,728	)		6,052
Total adjustments	$	(5,201	)	$	(1,892	)	$	(7,093	)

(a) Includes the effect of the reclassification of ILFC as discontinued operations.

2011

New Accounting Pronouncements or Change in Accounting Principles

Accounting Standards Adopted

Accounting Standards Adopted During 2011

The adoption of these standards did not have a material effect on our consolidated financial condition, results of operations or cash flows.

2010

New Accounting Pronouncements or Change in Accounting Principles

Accounting Standards Adopted

Accounting Standards Adopted During 2010

The adoption of these standards did not have a material effect on our consolidated financial condition, results of operations or cash flows.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of changes in goodwill by reportable segment

(in millions)	AIG Property Casualty			Aircraft Leasing			Other			Total



Balance at December 31, 2010:
Goodwill – gross	$	2,529		$	–		$	2,281		$	4,810
Accumulated impairments		(1,196	)		–			(2,281	)		(3,477	)

Net goodwill		1,333			–			–			1,333

Increase (decrease) due to:
Acquisition		3			15			8			26
Other^(a)		14			–			–			14

Balance at December 31, 2011:
Goodwill – gross	$	2,546		$	15		$	2,289		$	4,850
Accumulated impairments		(1,196	)		–			(2,281	)		(3,477	)

Net goodwill	$	1,350		$	15		$	8		$	1,373

Increase (decrease) due to:
Acquisition		119			–			–			119
Other^(a)		–			–			–			–
Goodwill impairment included in discontinued operations		–			(15	)		(8	)		(23	)

Balance at December 31, 2012:
Goodwill – gross	$	2,665		$	–		$	2,281		$	4,946
Accumulated impairments		(1,196	)		–			(2,281	)		(3,477	)

Net goodwill	$	1,469		$	–		$	–		$	1,469

(a) Includes foreign exchange translation and purchase price adjustments.

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:
Deferred income taxes	$	17,897	$	1,718		$	19,615
Deferred policy acquisition costs		14,026		(5,089	)		8,937
Other assets		11,705		(42	)		11,663

Total assets		556,467		(3,413	)		553,054

Retained earnings		14,332		(3,558	)		10,774
Accumulated other comprehensive income		6,336		145			6,481

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

Year Ended December 31, 2011 (dollars in millions, except per share data)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital gains	$	681		$	20		$	701

Total revenues		59,792			20			59,812

Interest credited to policyholder account balances		4,446			21			4,467
Amortization of deferred acquisition costs		8,019			(2,533	)		5,486
Other acquisition and other insurance expenses		6,091			2,367			8,458
Net (gain) loss on sale of properties and divested businesses		74			–			74

Total benefits, claims and expenses		59,840			(144	)		59,696

Income (loss) from continuing operations before income tax benefit		(48	)		164			116

Income tax benefit^(b)		(17,696	)		(1,728	)		(19,424	)

Income from continuing operations		17,648			1,892			19,540
Income from discontinued operations, net of income tax expense^(c)		858			932			1,790

Net income		18,506			2,824			21,330

Net income attributable to AIG		17,798			2,824			20,622

Net income attributable to AIG common shareholders		16,986			2,824			19,810

Income per share attributable to AIG common shareholders:
Basic and diluted
Income from continuing operations	$	8.98		$	1.05		$	10.03
Income from discontinued operations	$	0.46		$	0.52		$	0.98

(b) Includes an adjustment to the deferred tax valuation allowance of $1.8 billion in the fourth quarter of 2011.

Year Ended December 31, 2010 (dollars in millions, except per share data)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Statement of Operations:
Total net realized capital losses	$	(727	)	$	11		$	(716	)

Total revenues		72,818			11			72,829

Interest credited to policyholder account balances		4,480			7			4,487
Amortization of deferred acquisition costs		9,134			(3,313	)		5,821
Other acquisition and other insurance expenses		6,775			3,388			10,163
Net (gain) loss on sale of properties and divested businesses^(b)		(17,767	)		(1,799	)		(19,566	)

Total benefits, claims and expenses		54,301			(1,719	)		52,582

Income from continuing operations before income tax expense		18,517			1,730			20,247

Income tax expense^(c)		6,116			877			6,993

Income from continuing operations		12,401			853			13,254
Income (loss) from discontinued operations, net of income tax expense^(d)		(2,388	)		1,419			(969	)

Net income		10,013			2,272			12,285

Net income attributable to AIG		7,786			2,272			10,058

Net income attributable to AIG common shareholders		1,583			463			2,046

Income (loss) per share attributable to AIG common shareholders:
Basic and diluted
Income from continuing operations	$	15.23		$	1.27		$	16.50
Loss from discontinued operations	$	(3.63	)	$	2.11		$	(1.52	)

(b) Represents the effect on the gain on sale of AIA ordinary shares, which were sold in the fourth quarter of 2010.

(d) Includes an adjustment to the after-tax gain on the sale of ALICO of $1.6 billion in the fourth quarter of 2010.

Year Ended December 31, 2011 (in millions)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net income	$	18,506		$	2,824		$	21,330
(Income) loss from discontinued operations		(858	)		(932	)		(1,790	)

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings – net		(937	)		(20	)		(957	)
Depreciation and other amortization		7,935			(2,511	)		5,424
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(7,796	)		2,367			(5,429	)
Current and deferred income taxes – net		(18,333	)		(1,728	)		(20,061	)
Total adjustments		(23,904	)		(1,892	)		(25,796	)

Year Ended December 31, 2010 (in millions)	As Previously Reported^(a)			Effect of Change			As Currently Reported



Cash flows from operating activities:
Net income	$	10,013		$	2,272		$	12,285
(Income) loss from discontinued operations		2,388			(1,419	)		969

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gains) losses on sales of divested businesses		(17,767	)		(1,799	)		(19,566	)
Unrealized gains in earnings – net		(1,509	)		(20	)		(1,529	)
Depreciation and other amortization		8,488			(2,511	)		5,977
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(8,300	)		2,367			(5,933	)
Current and deferred income taxes – net		7,780			(1,728	)		6,052
Total adjustments	$	(5,201	)	$	(1,892	)	$	(7,093	)

(a) Includes the effect of the reclassification of ILFC as discontinued operations.

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References+ Details

- 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

-Section 45

-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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 250

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22580-107794

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 250

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6801783&loc=d3e22583-107794

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)

12 Months Ended

Dec. 31, 2012

Segment results

Schedule of continuing operations by reportable segment




(in millions)	Total Revenues			Other-than- temporary impairment charges^(a)		Net (gain) loss on sale of properties and divested businesses		Interest Expense^(b)			Depreciation and Amortization			Pre-tax Income from continuing operations

2012
AIG Property Casualty
Commercial Insurance	$	23,609		$	–	$	–	$	5		$	2,735		$	904
Consumer Insurance		14,403			–		–		4			2,121			292
Other		1,769			378		–		1			(1	)		641

Total AIG Property Casualty	$	39,781		$	378	$	–	$	10		$	4,855		$	1,837

AIG Life and Retirement
Life Insurance		9,509			162		–		–			322			1,966
Retirement Services		7,258			562		–		–			(109	)		1,814

Total AIG Life and Retirement	$	16,767		$	724	$	–	$	–		$	213		$	3,780

Other Operations
Mortgage Guaranty		867			–		–		–			44			15
Global Capital Markets		745			–		–		–			–			553
Direct Investment Book		2,024			60		–		369			(121	)		1,632
Retained Interests		4,957			–		–		–			–			4,957
Corporate & Other		1,429			5		2		1,998			318			(3,262	)
Consolidation and Elimination		(48	)		–		–		(27	)		–			4

Total Other Operations	$	9,974		$	65	$	2	$	2,340		$	241		$	3,899

AIG Consolidation and Elimination		(866	)		–		–		(31	)		(2	)		(194	)

Total AIG Consolidated	$	65,656		$	1,167	$	2	$	2,319		$	5,307		$	9,322

2011
AIG Property Casualty
Commercial Insurance	$	25,016		$	–	$	–	$	3		$	2,864		$	1,339
Consumer Insurance		14,109			–		–		4			1,836			(44	)
Other		1,597			274		–		–			–			525

Total AIG Property Casualty	$	40,722		$	274	$	–	$	7		$	4,700		$	1,820

AIG Life and Retirement
Life Insurance		8,282			223		–		–			301			1,387
Retirement Services		7,033			754		–		–			390			1,569

Total AIG Life and Retirement	$	15,315		$	977	$	–	$	–		$	691		$	2,956

Other Operations
Mortgage Guaranty		944			–		–		–			44			(77	)
Global Capital Markets		266			–		–		–			–			(7	)
Direct Investment Book		1,004			25		–		367			(218	)		622
Retained Interests		486			–		–		–			–			486
Corporate & Other		1,415			4		74		2,143			207			(5,727	)
Consolidation and Elimination		(36	)		–		–		(20	)		–			–

Total Other Operations	$	4,079		$	29	$	74	$	2,490		$	33		$	(4,703	)

AIG Consolidation and Elimination		(304	)		–		–		(53	)		–			43

Total AIG Consolidated	$	59,812		$	1,280	$	74	$	2,444		$	5,424		$	116

(in millions)	Total Revenues			Other-than- temporary impairment charges^(a)		Net (gain) loss on sale of properties and divested businesses			Interest Expense^(b)			Depreciation and Amortization			Pre-tax Income from continuing operations



2010
AIG Property Casualty
Commercial Insurance	$	24,371		$	–	$	–		$	1		$	2,911		$	305
Consumer Insurance		11,580			–		–			–			1,509			185
Other		1,256			577		(669	)		–			2			(583	)

Total AIG Property Casualty	$	37,207		$	577	$	(669	)	$	1		$	4,422		$	(93	)

AIG Life and Retirement
Life Insurance		8,334			409		–			–			433			1,441
Retirement Services		6,413			1,549		–			–			189			1,260

Total AIG Life and Retirement	$	14,747		$	1,958	$	–		$	–		$	622		$	2,701

Other Operations
Mortgage Guaranty		1,168			–		–			–			43			397
Global Capital Markets		532			2		–			3			4			193
Direct Investment Book		1,499			356		–			382			(317	)		1,242
Retained Interests		1,819			–		–			–			–			1,819
Corporate & Other		2,631			30		(18,897	)		6,551			342			11,436
Divested Businesses		13,811			116		–			4			861			2,435
Consolidation and Elimination		(55	)		–		–			(59	)		–			89

Total Other Operations	$	21,405		$	504	$	(18,897	)	$	6,881		$	933		$	17,611

AIG Consolidation and Elimination		(530	)		–		–			(140	)		–			28

Total AIG Consolidated	$	72,829		$	3,039	$	(19,566	)	$	6,742		$	5,977		$	20,247

(a) Included in Total revenues presented above.

(b) Interest expense for Other operations in 2010 includes amortization of prepaid commitment fee asset related to the FRBNY Credit Facility of $3.5 billion.

Schedule of year-end identifiable assets and capital expenditures by reportable segment




	Year-end identifiable assets						Capital expenditures
(in millions)	2012			2011			2012		2011

AIG Property Casualty
Commercial Insurance	$	^(a)		$	^(a)		$	^(a)	$	^(a)
Consumer Insurance		^(a)			^(a)			^(a)		^(a)
Other		^(a)			^(a)			^(a)		^(a)

Total AIG Property Casualty	$	178,733		$	177,892		$	321	$	234

AIG Life and Retirement
Life Insurance		105,441			90,446			48		42
Retirement Services		177,002			177,627			12		33
Consolidation and Elimination		(6,769	)		(9,610	)		–		–

Total AIG Life and Retirement	$	275,674		$	258,463		$	60	$	75

Other Operations
Mortgage Guaranty		5,270			5,395			11		37
Global Capital Markets		7,050			12,620			–		–
Direct Investment Book		28,528			31,172			–		–
Retained Interests		–			15,086			–		–
Corporate & Other		87,021			99,085			680		618
Aircraft Leasing^(b)		39,812			39,107			–		604
Consolidation and Elimination		23,431			27,153			–		–

Total Other Operations	$	191,112		$	229,618		$	691	$	1,259

AIG Consolidation and Elimination		(96,886	)		(112,919	)		–		–

Total Assets	$	548,633		$	553,054		$	1,072	$	1,568

(a) AIG Property Casualty manages its assets on an aggregate basis and does not allocate its assets, other than goodwill, between its operating segments.

(b) 2012 includes Aircraft Leasing assets classified as assets held-for-sale on the Consolidated Balance Sheet.

Schedule of entity's consolidated operations and long-lived assets by major geographic area




	Total revenues^(a)						Real estate and other fixed assets, net of accumulated depreciation
(in millions)	2012		2011		2010		2012		2011		2010

United States	$	46,171	$	40,002	$	40,232	$	1,391	$	1,330	$	1,896
Asia		7,635		6,834		19,084		516		591		557
Other Foreign		11,850		12,976		13,513		306		386		392

Consolidated		65,656		59,812		72,829		2,213		2,307		2,845

(a) Revenues are generally reported according to the geographic location of the reporting unit.

Total AIG Property Casualty

Segment results

Schedule of continuing operations by reportable segment




	Claims and claims adjustment expenses incurred						Underwriting expenses
(in millions)	2012		2011		2010		2012		2011		2010

Commercial Insurance	$	16,696	$	18,332	$	18,814	$	6,009	$	5,345	$	5,252
Consumer Insurance		8,498		8,900		6,745		5,613		5,253		4,650
Other		591		717		2,308		466		272		200

Total AIG Property Casualty		25,785		27,949		27,867		12,088		10,870		10,102

Total AIG Life and Retirement

Segment results

Schedule of continuing operations by reportable segment




	Life Insurance						Retirement Services
(in millions)	2012		2011		2010		2012		2011		2010

Insurance-oriented products	$	5,985	$	5,813	$	5,992	$	–	$	–	$	–
Retirement savings products		3,524		2,469		2,335		6,410		6,006		6,150
Asset management revenues		–		–		7		848		1,027		263

Total revenues		9,509		8,282		8,334		7,258		7,033		6,413

- Definition

Tabular disclosure of information concerning material long-lived assets (excluding financial instruments, customer relationships with financial institutions, mortgage and other servicing rights, deferred policy acquisition costs, and deferred taxes assets) located in identified geographic areas and/or the amount of revenue from external customers attributed to that country from which revenue is material. An entity may also provide subtotals of geographic information about groups of countries.

+ References+ Details

- 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

DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 31, 2012

DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS

Summary of information relating to sales of AIA ordinary shares

(in billions, except share data)		Gross Proceeds



Sales:
March 7, 2012	1,720,000,000	$	6.0
September 11, 2012	591,866,000		2.0
December 20, 2012	1,648,903,201		6.5

Total Sales	3,960,769,201	$	14.5

Summary of assets and liabilities held for sale

(in millions)	December 31, 2012



Assets:
Equity securities	$	1
Mortgage and other loans receivable, net		117
Flight equipment primarily under operating leases, net of accumulated depreciation		34,468
Short-term investments		1,861
Cash		63
Premiums and other receivables, net of allowance		308
Other assets		1,864

Assets of businesses held for sale		38,682

Less: Loss Accrual		(6,717	)

Total assets held for sale	$	31,965

Liabilities:
Other liabilities	$	3,043
Other long-term debt		24,323

Total liabilities held for sale	$	27,366

Summary of income (loss) from discontinued operations




Years Ended December 31, (in millions)	2012			2011			2010

Revenues:
Premiums	$	–		$	5,012		$	18,296
Net investment income		–			1,632			6,924
Net realized capital gains		1			834			158
Aircraft leasing revenue		4,504			4,508			4,749
Other income		(18	)		(48	)		1,697

Total revenues		4,487			11,938			31,824

Benefits, claims and expenses, excluding Aircraft leasing expenses^*		1,596			7,910			30,458
Aircraft leasing expenses		2,587			3,876			4,050
Interest expense allocation		–			2			75

Income (loss) from discontinued operations		304			150			(2,759	)

Gain (loss) on sale		(6,733	)		2,338			5,389

Income (loss) from discontinued operations, before tax income tax expense (benefit)		(6,429	)		2,488			2,630

Income tax expense (benefit)		(2,377	)		698			3,599

Income (loss) from discontinued operations, net of income tax	$	(4,052	)	$	1,790		$	(969	)

- 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

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2012

FAIR VALUE MEASUREMENTS

Assets and liabilities measured at fair value on a recurring basis




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

Assets:
Bonds available for sale:
U.S. government and government sponsored entities	$	–	$	3,483	$	–	$	–		$	–		$	3,483
Obligations of states, municipalities and political subdivisions		–		34,681		1,024		–			–			35,705
Non-U.S. governments		1,004		25,782		14		–			–			26,800
Corporate debt		–		149,625		1,487		–			–			151,112
RMBS		–		22,730		11,662		–			–			34,392
CMBS		–		5,010		5,124		–			–			10,134
CDO/ABS		–		3,492		4,841		–			–			8,333

Total bonds available for sale		1,004		244,803		24,152		–			–			269,959

Bond trading securities:
U.S. government and government sponsored entities		266		6,528		–		–			–			6,794
Obligations of states, municipalities and political subdivisions		–		–		–		–			–			–
Non-U.S. governments		–		2		–		–			–			2
Corporate debt		–		1,320		–		–			–			1,320
RMBS		–		1,331		396		–			–			1,727
CMBS		–		1,424		812		–			–			2,236
CDO/ABS		–		3,969		8,536		–			–			12,505

Total bond trading securities		266		14,574		9,744		–			–			24,584

Equity securities available for sale:
Common stock		3,002		3		24		–			–			3,029
Preferred stock		–		34		44		–			–			78
Mutual funds		83		22		–		–			–			105

Total equity securities available for sale		3,085		59		68		–			–			3,212

Equity securities trading		578		84		–		–			–			662
Mortgage and other loans receivable		–		134		–		–			–			134
Other invested assets		125		1,542		5,389		–			–			7,056
Derivative assets:
Interest rate contracts		2		5,521		956		–			–			6,479
Foreign exchange contracts		–		104		–		–			–			104
Equity contracts		104		63		54		–			–			221
Commodity contracts		–		144		1		–			–			145
Credit contracts		–		–		60		–			–			60
Other contracts		–		–		38		–			–			38
Counterparty netting and cash collateral		–		–		–		(2,467	)		(909	)		(3,376	)

Total derivative assets		106		5,832		1,109		(2,467	)		(909	)		3,671

Short-term investments		285		7,771		–		–			–			8,056
Separate account assets		54,430		2,907		–		–			–			57,337
Other assets		–		696		–		–			–			696

Total	$	59,879	$	278,402	$	40,462	$	(2,467	)	$	(909	)	$	375,367

Liabilities:
Policyholder contract deposits	$	–	$	–	$	1,257	$	–		$	–		$	1,257
Derivative liabilities:
Interest rate contracts		–		5,582		224		–			–			5,806
Foreign exchange contracts		–		174		–		–			–			174
Equity contracts		–		114		7		–			–			121
Commodity contracts		–		146		–		–			–			146
Credit contracts(d)		–		–		2,051		–			–			2,051
Other contracts		–		6		200		–			–			206
Counterparty netting and cash collateral		–		–		–		(2,467	)		(1,976	)		(4,443	)

Total derivative liabilities		–		6,022		2,482		(2,467	)		(1,976	)		4,061

Long-term debt(e)		–		7,711		344		–			–			8,055
Other liabilities		30		1,050		–		–			–			1,080

Total	$	30	$	14,783	$	4,083	$	(2,467	)	$	(1,976	)	$	14,453

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		6,362		–		–			–			6,462
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		–		4,877		8,432		–			–			13,309

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

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) Level 1 Other invested assets included $12.4 billion at December 31, 2011 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 Year^(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 Year			Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year

December 31, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	960		$	48		$	12		$	84		$	70		$	(150	)	$	1,024		$	–
Non-U.S. governments		9			1			(1	)		1			4			–			14			–
Corporate debt		1,935			(44	)		145			24			664			(1,237	)		1,487			–
RMBS		10,877			522			2,121			(316	)		952			(2,494	)		11,662			–
CMBS		3,955			(135	)		786			636			44			(162	)		5,124			–
CDO/ABS		4,220			334			289			10			691			(703	)		4,841			–

Total bonds available for sale		21,956			726			3,352			439			2,425			(4,746	)		24,152			–

Bond trading securities:
Corporate debt		7			–			–			(7	)		–			–			–			–
RMBS		303			76			2			(109	)		128			(4	)		396			42
CMBS		554			70			2			(159	)		446			(101	)		812			87
CDO/ABS		8,432			3,683			3			(3,968	)		386			–			8,536			2,547

Total bond trading securities		9,296			3,829			7			(4,243	)		960			(105	)		9,744			2,676

Equity securities available for sale:
Common stock		57			22			(28	)		(33	)		6			–			24			–
Preferred stock		99			17			(35	)		(36	)		11			(12	)		44			–

Total equity securities available for sale		156			39			(63	)		(69	)		17			(12	)		68			–

Mortgage and other loans receivable		1			–			–			(1	)		–			–			–			–
Other invested assets		6,618			(95	)		290			(257	)		1,204			(2,371	)		5,389			–

Total	$	38,027		$	4,499		$	3,586		$	(4,131	)	$	4,606		$	(7,234	)	$	39,353		$	2,676

Liabilities:
Policyholder contract deposits	$	(918	)	$	(275	)	$	(72	)	$	8		$	–		$	–		$	(1,257	)	$	112
Derivative liabilities, net:
Interest rate contracts		785			(11	)		–			(42	)		–			–			732			56
Foreign exchange contracts		2			–			–			(2	)		–			–			–			–
Equity contracts		28			10			–			12			(3	)		–			47			(10	)
Commodity contracts		2			5			–			(6	)		–			–			1			(6	)
Credit contracts		(3,273	)		638			–			644			–			–			(1,991	)		(1,172	)
Other contracts		33			(76	)		(18	)		15			(116	)		–			(162	)		46

Total derivative liabilities, net		(2,423	)		566			(18	)		621			(119	)		–			(1,373	)		(1,086	)

Long-term debt(b)		(508	)		(411	)		(77	)		242			(14	)		424			(344	)		105

Total	$	(3,849	)	$	(120	)	$	(167	)	$	871		$	(133	)	$	424		$	(2,974	)	$	(869	)

(in millions)	Fair value Beginning of Year^(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 Year			Changes in Unrealized Gains (Losses) Included in Income on Instruments Held at End of Year



December 31, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	609		$	2		$	112		$	296		$	17		$	(76	)	$	960		$	–
Non-U.S. governments		5			–			–			5			–			(1	)		9			–
Corporate debt		2,262			11			(25	)		171			2,480			(2,964	)		1,935			–
RMBS		6,367			(50	)		288			3,232			1,093			(53	)		10,877			–
CMBS		3,604			(100	)		239			207			134			(129	)		3,955			–
CDO/ABS		4,241			73			142			(432	)		852			(656	)		4,220			–

Total bonds available for sale		17,088			(64	)		756			3,479			4,576			(3,879	)		21,956			–

Bond trading securities:
Corporate debt		–			–			–			(11	)		18			–			7			1
RMBS		91			(27	)		–			239			–			–			303			(28	)
CMBS		506			92			–			(95	)		292			(241	)		554			87
CDO/ABS		9,431			(660	)		–			(323	)		48			(64	)		8,432			(677	)

Total bond trading securities		10,028			(595	)		–			(190	)		358			(305	)		9,296			(617	)

Equity securities available for sale:
Common stock		61			28			(4	)		(40	)		18			(6	)		57			–
Preferred stock		64			(1	)		32			(1	)		5			–			99			–
Mutual funds		–			–			–			(6	)		6			–			–			–

Total equity securities available for sale		125			27			28			(47	)		29			(6	)		156			–

Equity securities trading		1			–			–			(1	)		–			–			–			–
Mortgage and other loans receivable		–			–			–			1			–			–			1			–
Other invested assets		7,414			(10	)		139			(739	)		251			(437	)		6,618			2

Total	$	34,656		$	(642	)	$	923		$	2,503		$	5,214		$	(4,627	)	$	38,027		$	(615	)

Liabilities:
Policyholder contract deposits	$	(445	)	$	(429	)	$	–		$	(44	)	$	–		$	–		$	(918	)	$	508
Derivative liabilities, net:
Interest rate contracts		732			46			–			(2	)		30			(21	)		785			(90	)
Foreign exchange contracts		16			(11	)		–			(5	)		2			–			2			1
Equity contracts		22			(16	)		–			41			(7	)		(12	)		28			(15	)
Commodity contracts		23			1			–			(22	)		–			–			2			(1	)
Credit contracts		(3,798	)		332			–			193			–			–			(3,273	)		493
Other contracts		(112	)		(14	)		(51	)		74			(30	)		166			33			(98	)

Total derivatives liabilities, net		(3,117	)		338			(51	)		279			(5	)		133			(2,423	)		290

Long-term debt(b)		(982	)		(60	)		–			555			(21	)		–			(508	)		(135	)

Total	$	(4,544	)	$	(151	)	$	(51	)	$	790		$	(26	)	$	133		$	(3,849	)	$	663

(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



December 31, 2012
Bonds available for sale	$	906		$	(395	)	$	215		$	726
Bond trading securities		3,303			–			526			3,829
Equity securities		–			39			–			39
Other invested assets		54			(210	)		61			(95	)
Policyholder contract deposits		–			(275	)		–			(275	)
Derivative liabilities, net		3			26			537			566
Other long-term debt		–			–			(411	)		(411	)

December 31, 2011
Bonds available for sale	$	638		$	(717	)	$	15		$	(64	)
Bond trading securities		(634	)		4			35			(595	)
Equity securities		–			27			–			27
Other invested assets		23			(84	)		51			(10	)
Policyholder contract deposits		–			(499	)		70			(429	)
Derivative liabilities, net		2			13			323			338
Other long-term debt		–			–			(60	)		(60	)

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




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

December 31, 2012
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	477	$	(219	)	$	(174	)	$	84
Non-U.S. governments		5		(3	)		(1	)		1
Corporate debt		283		(75	)		(184	)		24
RMBS		2,308		(723	)		(1,901	)		(316	)
CMBS		1,137		(318	)		(183	)		636
CDO/ABS		1,120		(4	)		(1,106	)		10

Total bonds available for sale		5,330		(1,342	)		(3,549	)		439

Bond trading securities:
Corporate debt		–		–			(7	)		(7	)
RMBS		–		(45	)		(64	)		(109	)
CMBS		225		(106	)		(278	)		(159	)
CDO/ABS(b)		7,382		(21	)		(11,329	)		(3,968	)

Total bond trading securities		7,607		(172	)		(11,678	)		(4,243	)

Equity securities		67		(56	)		(80	)		(69	)
Mortgage and other loans receivable		–		–			(1	)		(1	)
Other invested assets		900		(100	)		(1,057	)		(257	)

Total assets	$	13,904	$	(1,670	)	$	(16,365	)	$	(4,131	)

Liabilities:
Policyholder contract deposits	$	–	$	(25	)	$	33		$	8
Derivative liabilities, net		11		(2	)		612			621
Other long-term debt(c)		–		–			242			242

Total liabilities	$	11	$	(27	)	$	887		$	871

December 31, 2011
Assets:
Bonds available for sale:
Obligations of states, municipalities and political subdivisions	$	305	$	(4	)	$	(5	)	$	296
Non-U.S. governments		4		(2	)		3			5
Corporate debt		497		(27	)		(299	)		171
RMBS		4,932		(205	)		(1,495	)		3,232
CMBS		470		(34	)		(229	)		207
CDO/ABS		1,067		(1	)		(1,498	)		(432	)

Total bonds available for sale		7,275		(273	)		(3,523	)		3,479

Bond trading securities:
Corporate debt		–		–			(11	)		(11	)
RMBS		305		(1	)		(65	)		239
CMBS		221		(207	)		(109	)		(95	)
CDO/ABS		331		(304	)		(350	)		(323	)

Total bond trading securities		857		(512	)		(535	)		(190	)

Equity securities		–		(31	)		(17	)		(48	)
Mortgage and other loans receivable		–		–			1			1
Other invested assets		718		(296	)		(1,161	)		(739	)

Total assets	$	8,850	$	(1,112	)	$	(5,235	)	$	2,503

Liabilities:
Policyholder contract deposits	$	–	$	(70	)	$	26		$	(44	)
Derivative liabilities, net		43		–			236			279
Other long-term debt(c)		–		–			555			555

Total liabilities	$	43	$	(70	)	$	817		$	790

(a) There were no issuances during year ended December 31, 2012.

(b) Includes $7.1 billion of securities purchased through the FRBNY's auction of ML III assets.

Significant unobservable inputs used for recurring fair value measurements




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

Assets:
Corporate debt	$	775	Discounted cash flow	Yield(b)	0.08% - 6.55% (3.31%)
RMBS		10,650	Discounted cash flow	Constant prepayment rate(c)	0.00% - 10.76% (5.03%)
				Loss severity(c)	43.70% - 78.72% (61.21%)
				Constant default rate(c)	4.21% - 13.30% (8.75%)
				Yield(c)	2.23% - 9.42% (5.82%)
Certain CDO/ABS(d)		7,844	Discounted cash flow	Constant prepayment rate(c)	0.00% - 32.25% (11.82%)
				Loss severity(c)	0.00% - 29.38% (6.36%)
				Constant default rate(c)	0.00% - 4.05% (1.18%)
				Yield(c)	5.41% - 10.67% (8.04%)
Commercial mortgage backed securities		3,251	Discounted cash flow	Yield(b)	0.00% - 19.95% (7.76%)
CDO/ABS – Direct			Binomial Expansion	Recovery rate(b)	3% - 63% (27%)
Investment Book		1,205	Technique (BET)	Diversity score(b)	4 - 44 (13)
				Weighted average life(b)	1.27 - 9.11 years (4.91 years)

Liabilities:
Policyholder contract deposits – GMWB		1,257	Discounted cash flow	Equity implied volatility(b)	6.0% - 39.0%
				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		1,436	BET	Recovery rates(b)	3% - 37% (17%)
				Diversity score(b)	9 - 38 (14)
				Weighted average life(b)	5.10 - 8.45 years (5.75 years)

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

(d) Yield was the only input available for $6.6 billion of total fair value at December 31, 2012.

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




		December 31, 2012				December 31, 2011
(in millions)	Investment Category Includes	Fair Value Using Net Asset Value Per Share (or its equivalent)		Unfunded Commitments		Fair Value Using Net Asset Value Per Share (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	$	2,549	$	659	$	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		179		25		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		163		16		316		39
Distressed	Securities of companies that are already in default, under bankruptcy protection, or troubled		87		21		182		42
Other	Real estate, energy, multi-strategy, mezzanine, and industry-focused strategies		255		152		252		98

Total private equity funds			3,233		873		4,100		1,181

Hedge funds:
Event-driven	Securities of companies undergoing material structural changes, including mergers, acquisitions and other reorganizations		747		2		774		2
Long-short	Securities that the manager believes are undervalued, with corresponding short positions to hedge market risk		1,091		–		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		238		–		173		–
Distressed	Securities of companies that are already in default, under bankruptcy protection or troubled		316		–		272		10
Other	Non-U.S. companies, futures and commodities, relative value, and multi-strategy and industry-focused strategies		416		–		627		–

Total hedge funds			2,808		2		2,773		12

Total		$	6,041	$	875	$	6,873	$	1,193

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




	Gain (Loss)
Years Ended December 31, (in millions)	Gain (Loss)
Years Ended December 31, (in millions)	2012			2011			2010

Assets:
Mortgage and other loans receivable	$	47		$	11		$	53
Bonds and equity securities		2,339			1,273			2,060
Trading – ML II interest		246			42			513
Trading – ML III interest		2,888			(646	)		1,792
Retained interest in AIA		2,069			1,289			(638	)
Other, including Short-term investments		56			35			(39	)

Liabilities:
Policyholder contract deposits		–			–			(320	)
Long-term debt^(a)		(681	)		(966	)		(1,595	)
Other liabilities		(33	)		(67	)		(8	)

Total gain^(b)	$	6,931		$	971		$	1,818

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

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




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

Assets:
Mortgage and other loans receivable	$	134	$	141	$	(7	)	$	107	$	150	$	(43	)
Liabilities:
Long-term debt*	$	8,055	$	5,705	$	2,350		$	10,766	$	8,624	$	2,142

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

Fair value assets measured on nonrecurring basis and impairment charges

	Assets at Fair Value								Impairment Charges



	Non-Recurring Basis								December 31,
(in millions)	Level 1		Level 2		Level 3		Total		2012		2011		2010

December 31, 2012
Investment real estate	$	–	$	–	$	–	$	–	$	–	$	18	$	604
Other investments		–		–		2,062		2,062		460		639		323
Aircraft(a)		–		–		–		–		–		1,693		1,614
Other assets		–		3		18		21		11		3		5

Total	$	–	$	3	$	2,080	$	2,083	$	471	$	2,353	$	2,546

December 31, 2011
Investment real estate	$	–	$	–	$	457	$	457
Other investments		–		–		2,199		2,199
Aircraft(b)		–		–		1,683		1,683
Other assets		–		–		4		4

Total	$	–	$	–	$	4,343	$	4,343

(a) See Note 4 for a discussion on the ILFC Transaction.

(b) Fair value of Aircraft includes aircraft impairment charges.

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

December 31, 2012
Assets:
Mortgage and other loans receivable	$	–	$	823	$	19,396	$	20,219	$	19,348
Other invested assets		–		237		3,521		3,758		4,932
Short-term investments		–		20,752		–		20,752		20,752
Cash		1,151		–		–		1,151		1,151
Liabilities:
Policyholder contract deposits associated with investment-type contracts		–		245		123,860		124,105		105,979
Other liabilities		–		2,205		818		3,023		3,024
Long-term debt^*		–		43,966		1,925		45,891		40,445

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

* Excludes Long-term debt of ILFC reclassed to Liabilities held for sale on the Consolidated Balance Sheet.

INVESTMENTS (Tables)

12 Months Ended

Dec. 31, 2012

Investments

The amortized cost or cost and fair value of AIG's available for sale securities and other invested assets carried at fair value

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



December 31, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	3,161	$	323	$	(1	)	$	3,483	$	–
Obligations of states, municipalities and political subdivisions		33,042		2,685		(22	)		35,705		2
Non-U.S. governments		25,449		1,395		(44	)		26,800		–
Corporate debt		135,728		15,848		(464	)		151,112		115
Mortgage-backed, asset-backed and collateralized:
RMBS		31,330		3,379		(317	)		34,392		1,330
CMBS		9,699		811		(376	)		10,134		(54	)
CDO/ABS		7,740		765		(172	)		8,333		57

Total mortgage-backed, asset-backed and collateralized		48,769		4,955		(865	)		52,859		1,333

Total bonds available for sale(b)		246,149		25,206		(1,396	)		269,959		1,450

Equity securities available for sale:
Common stock		1,492		1,574		(37	)		3,029		–
Preferred stock		55		23		–			78		–
Mutual funds		93		12		–			105		–

Total equity securities available for sale		1,640		1,609		(37	)		3,212		–

Total	$	247,789	$	26,815	$	(1,433	)	$	273,171	$	1,450

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		–

Total	$	252,590	$	20,026	$	(5,011	)	$	267,605	$	(856	)

(b) At December 31, 2012 and December 31, 2011, bonds available for sale held by us that were below investment grade or not rated totaled $29.6 billion and $24.2 billion, respectively.

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

December 31, 2012
Bonds available for sale:
U.S. government and government sponsored entities	$	153	$	1	$	–	$	–	$	153	$	1
Obligations of states, municipalities and political subdivisions		692		11		114		11		806		22
Non-U.S. governments		1,555		19		442		25		1,997		44
Corporate debt		8,483		201		3,229		263		11,712		464
RMBS		597		28		1,661		289		2,258		317
CMBS		406		11		1,595		365		2,001		376
CDO/ABS		391		1		1,510		171		1,901		172

Total bonds available for sale		12,277		272		8,551		1,124		20,828		1,396

Equity securities available for sale:
Common stock		247		36		18		1		265		37
Preferred stock		–		–		–		–		–		–
Mutual funds		3		–		–		–		3		–

Total equity securities available for sale		250		36		18		1		268		37

Total	$	12,527	$	308	$	8,569	$	1,125	$	21,096	$	1,433

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


December 31, 2012 (in millions)	Total Fixed Maturity Securities Available for Sale
December 31, 2012 (in millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value

Due in one year or less	$	11,801	$	12,001	$	717	$	713
Due after one year through five years		51,646		54,918		3,239		3,162
Due after five years through ten years		72,091		79,531		4,641		4,510
Due after ten years		61,842		70,650		6,602		6,283
Mortgage-backed, asset-backed and collateralized		48,769		52,859		7,025		6,160

Total	$	246,149	$	269,959	$	22,224	$	20,828

The gross realized gains and gross realized losses from sales of AIG's available for sale securities




	Years Ended December 31,
	2012				2011				2010
(in millions)	Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses		Gross Realized Gains		Gross Realized Losses

Fixed maturity securities	$	2,778	$	171	$	2,042	$	129	$	2,138	$	292
Equity securities		515		31		199		35		811		86

Total	$	3,293	$	202	$	2,241	$	164	$	2,949	$	378

The fair value of AIG's trading securities




	December 31, 2012					December 31, 2011
(in millions)	Fair Value		Percent of Total			Fair Value		Percent of Total

Fixed maturities:
U.S. government and government sponsored entities	$	6,794		27	%	$	6,462		26	%
Obligations of states, territories and political subdivisions		–		–			257		1
Non-U.S. governments		2		–			35		–
Corporate debt		1,320		5			816		3
Mortgage-backed, asset-backed and collateralized:
RMBS		1,727		7			1,648		7
CMBS		2,236		9			1,837		8
CDO/ABS and other collateralized^*		12,497		50			6,324		26

Total mortgage-backed, asset-backed and collateralized		16,460		66			9,809		41
ML II		–		–			1,321		5
ML III		8		–			5,664		23

Total fixed maturities		24,584		98			24,364		99

Equity securities		662		2			125		1

Total	$	25,246		100	%	$	24,489		100	%

* Includes $0.9 billion of U.S. Government agency backed ABS.

Components of other invested assets

December 31, (in millions)	2012		2011




Alternative investments^(a)	$	18,990	$	18,793
Mutual funds		128		258
Investment real estate^(b)		3,195		2,778
Aircraft asset investments^(c)		984		1,100
Life settlement contracts		4,357		4,006
Retained interest in AIA		–		12,367
All other investments		1,463		1,442

Total	$	29,117	$	40,744

(a) Includes hedge funds, private equity funds, affordable housing partnerships and other investment partnerships.

(b) Net of accumulated depreciation of $469 million and $428 million in 2012 and 2011, respectively.

The carrying value and ownership percentage of AIA and equity method investments

	2012				2011



(in millions, except percentages)	Carrying Value		Ownership Percentage		Carrying Value		Ownership Percentage

AIA	$	–	–	%	$	12,367		33	%
All other equity method investments		11,544	Various			9,026		Various

Total	$	11,544			$	21,393

Schedule of information regarding life settlement contracts

	December 31, 2012


(dollars in millions)	Number of Contracts		Carrying Value		Face Value (Death Benefits)

Remaining Life Expectancy of Insureds:
0 - 1 year		1	$	3	$	8
1 - 2 years		29		19		35
2 - 3 years		90		138		269
3 - 4 years		234		250		554
4 - 5 years		296		283		723
Thereafter		5,023		3,509		16,067

Total		5,673	$	4,202	$	17,656

Components of net investment income




Years Ended December 31, (in millions)	2012		2011			2010

Fixed maturity securities, including short-term investments	$	12,592	$	11,814		$	14,445
Change in fair value of ML II		246		42			513
Change in fair value of ML III		2,888		(646	)		1,792
Change in fair value of AIA securities including realized gain in 2012		2,069		1,289			(638	)
Change in the fair value of MetLife securities prior to their sale		–		(157	)		665
Equity securities		162		92			234
Interest on mortgage and other loans		1,083		1,065			1,268
Alternative investments^*		1,769		1,622			1,957
Real estate		127		107			126
Other investments		11		36			177

Total investment income before policyholder income and trading gains		20,947		15,264			20,539
Policyholder investment income and trading gains		–		–			886

Total investment income		20,947		15,264			21,425
Investment expenses		604		509			491

Net investment income	$	20,343	$	14,755		$	20,934

* Includes hedge funds, private equity funds, affordable housing partnerships and other investment partnerships.

Components of net realized capital gains (losses) and the increase (decrease) in unrealized appreciation




Years Ended December 31, (in millions)	2012			2011			2010

Sales of fixed maturity securities	$	2,607		$	1,913		$	1,846
Sales of equity securities		484			164			725
Other-than-temporary impairments:
Severity		(44	)		(51	)		(73	)
Change in intent		(62	)		(12	)		(441	)
Foreign currency declines		(8	)		(32	)		(63	)
Issuer-specific credit events		(1,048	)		(1,165	)		(2,457	)
Adverse projected cash flows		(5	)		(20	)		(5	)
Provision for loan losses		104			48			(304	)
Change in the fair value of MetLife securities prior to their sale		–			(191	)		315
Foreign exchange transactions		(234	)		(93	)		191
Derivative instruments		(684	)		448			(416	)
Other		(181	)		(308	)		(34	)

Net realized capital gains (losses)	$	929		$	701		$	(716	)

Increase in unrealized appreciation of investments:
Fixed maturities	$	10,599		$	5,578		$	8,677
Equity securities		(232	)		(206	)		473
Other investments		343			146			156

Increase in unrealized appreciation^*	$	10,710		$	5,518		$	9,306

* Excludes net unrealized gains attributable to businesses held for sale.

Credit impairments recognized in earnings for available for sale fixed maturity securities held by AIG




Years Ended December 31, (in millions)	2012			2011			2010

Balance, beginning of year	$	6,504		$	6,786		$	7,803
Increases due to:
Credit impairments on new securities subject to impairment losses		194			235			627
Additional credit impairments on previously impaired securities		483			735			1,294
Reductions due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell		(1,105	)		(529	)		(1,039	)
Credit impaired securities for which there is a current intent or anticipated requirement to sell		(5	)		–			(503	)
Accretion on securities previously impaired due to credit^*		(915	)		(544	)		(332	)
Hybrid securities with embedded credit derivatives reclassified to Bond trading securities		–			(179	)		(748	)
Other		8			–			(316	)

Balance, end of year	$	5,164		$	6,504		$	6,786

Schedule of Purchased Credit Impaired (PCI) Securities, at acquisition date

(in millions)	At Date of Acquisition



Contractually required payments (principal and interest)	$	18,708
Cash flows expected to be collected^*		14,626
Recorded investment in acquired securities		9,379

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

Schedule of Purchased Credit Impaired (PCI) Securities, at reporting date




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

Outstanding principal balance	$	11,791	$	10,119
Amortized cost		7,718		7,006
Fair value		8,823		6,535

Activity for accretable yield on Purchased Credit Impaired (PCI) Securities




Years Ended December 31, (in millions)	2012			2011

Balance, beginning of year	$	4,135		$	–
Newly purchased PCI securities		1,620			3,943
Disposals		(298	)		–
Accretion		(672	)		(324	)
Effect of changes in interest rate indices		(213	)		(62	)
Net reclassification from non-accretable difference, including effects of prepayments		194			578

Balance, end of year	$	4,766		$	4,135

AIA

Investments

Summarized financial information of AIG's equity method investees

Year Ended December 31, (in millions)	2011



Operating results:
Total revenues	$	13,802
Total expenses		(12,436	)

Net income	$	1,366

At December 31, (in millions)	2011



Balance sheet:
Total assets	$	112,673
Total liabilities	$	(90,894	)

Other equity method investees

Investments

Summarized financial information of AIG's equity method investees

Years Ended December 31, (in millions)	2012			2011			2010




Operating results:
Total revenues	$	9,438		$	12,749		$	14,079
Total expenses		(5,183	)		(3,530	)		(3,812	)

Net income	$	4,255		$	9,219		$	10,267

At December 31, (in millions)	2012			2011




Balance sheet:
Total assets	$	139,681		$	95,749
Total liabilities	$	(26,529	)	$	(22,379	)

LENDING ACTIVITIES (Tables)

12 Months Ended

Dec. 31, 2012

LENDING ACTIVITIES

Composition of Mortgages and other loans receivable




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

Commercial mortgages^*	$	13,788		$	13,554
Life insurance policy loans		2,952			3,049
Commercial loans, other loans and notes receivable		3,147			3,626

Total mortgage and other loans receivable		19,887			20,229
Allowance for losses		(405	)		(740	)

Mortgage and other loans receivable, net	$	19,482		$	19,489

Schedule of credit quality indicators for the commercial mortgage loans

			Class


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

Credit Quality Indicator:
In good standing		998	$	1,549	$	4,698	$	2,640	$	1,654	$	1,153	$	1,671	$	13,365		97	%
Restructured^(a)		8		50		207		7		2		–		22		288		2
90 days or less delinquent		4		–		17		–		–		–		–		17		–
>90 days delinquent or in process of foreclosure		6		–		13		26		–		–		79		118		1

Total^(b)		1,016	$	1,599	$	4,935	$	2,673	$	1,656	$	1,153	$	1,772	$	13,788		100	%

Valuation allowance			$	5	$	74	$	19	$	19	$	1	$	41	$	159		1	%

(a) Loans that have been modified in troubled debt restructurings and are performing according to their restructured terms. See discussion of troubled debt restructurings below.

(b) Does not reflect valuation allowances.

Schedule of changes in the allowance for losses on Mortgage and other loans receivable




	2012									2011									2010
Years Ended December 31, (in millions)	Commercial Mortgages			Other Loans			Total			Commercial Mortgages			Other Loans			Total			Commercial Mortgages			Other Loans^(b)			Total

Allowance, beginning of year	$	305		$	435		$	740		$	470		$	408		$	878		$	432		$	2,012		$	2,444
Loans charged off		(23	)		(21	)		(44	)		(78	)		(47	)		(125	)		(217	)		(137	)		(354	)
Recoveries of loans previously charged off		13			4			17			37			1			38			–			8			8

Net charge-offs		(10	)		(17	)		(27	)		(41	)		(46	)		(87	)		(217	)		(129	)		(346	)
Provision for loan losses		(136	)		33			(103	)		(69	)		51			(18	)		342			6			348
Other		–			–			–			(55	)		–			(55	)		(34	)		(1,601	)		(1,635	)
Reclassified to Assets of businesses held for sale		–			–			–			–			–			–			(53	)		(5	)		(58	)
Activity of discontinued operations		–			(205	)		(205	)		–			22			22			–			125			125

Allowance, end of year	$	159	^(a)	$	246		$	405		$	305	(a)	$	435		$	740		$	470		$	408		$	878

(b) Included in Other loans were finance receivables, which were reported net of unearned finance charges, for both investment purposes and held for sale.

REINSURANCE (Tables)

12 Months Ended

Dec. 31, 2012

REINSURANCE

Supplemental information for gross loss and benefit reserves net of ceded reinsurance




	2012						2011
At December 31, (in millions)	As Reported			Net of Reinsurance			As Reported			Net of Reinsurance

Liability for unpaid claims and claims adjustment expense^(a)	$	(87,991	)	$	(68,782)		$	(91,145	)	$	(70,825	)
Future policy benefits for life and accident and health insurance contracts		(36,340	)		(35,408	)		(34,317	)		(33,312	)
Reserve for unearned premiums		(22,537	)		(18,934	)		(23,465	)		(19,553	)
Reinsurance assets^(b)		23,744			–			25,237			–

(a) In 2012 and 2011, the Net of Reinsurance amount reflects the cession under the June 17, 2011 transaction with National Indemnity Company (NICO) of $1.6 billion and $1.7 billion, respectively.

(b) Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses.

Schedule of short-duration insurance premiums written and earned




	AIG Property Casualty									Other Businesses^*									Eliminations								Total
Years Ended December 31, (in millions)	AIG Property Casualty									Other Businesses^*									Eliminations								Total
Years Ended December 31, (in millions)	2012			2011			2010			2012			2011^*			2010^*			2012			2011			2010		2012			2011			2010

Premiums written:
Direct	$	40,428		$	41,710		$	38,965		$	938		$	898		$	927		$	–		$	–		$	–	$	41,366		$	42,608		$	39,892
Assumed		3,428			3,031			2,442			(10	)		–			(2	)		7			2			–		3,425			3,033			2,440
Ceded		(9,420	)		(9,901	)		(9,795	)		(70	)		(97	)		(169	)		(7	)		(2	)		–		(9,497	)		(10,000	)		(9,964	)

Net	$	34,436		$	34,840		$	31,612		$	858		$	801		$	756		$	–		$	–		$	–	$	35,294		$	35,641		$	32,368

Premiums earned:
Direct	$	40,954		$	42,878		$	39,082		$	754		$	835		$	1,065		$	–		$	–		$	–	$	41,708		$	43,713		$	40,147
Assumed		3,254			3,294			2,488			31			55			80			(30	)		(46	)		–		3,255			3,303			2,568
Ceded		(9,335	)		(10,483	)		(9,049	)		(70	)		(98	)		(170	)		30			46			–		(9,375	)		(10,535	)		(9,219	)

Net	$	34,873		$	35,689		$	32,521		$	715		$	792		$	975		$	–		$	–		$	–	$	35,588		$	36,481		$	33,496

* Includes results of Mortgage Guaranty.

Schedule of premiums for entity's long-duration insurance and retirement services operations




Years Ended December 31, (in millions)	AIG Life and Retirement									Divested Businesses^*								Total
Years Ended December 31, (in millions)	2012			2011			2010			2012		2011			2010			2012			2011			2010

Gross premiums	$	3,030		$	3,104		$	3,141		$	11	$	17		$	9,670		$	3,041		$	3,121		$	12,811
Ceded premiums		(602	)		(591	)		(621	)		–		(6	)		(435	)		(602	)		(597	)		(1,056	)

Net	$	2,428		$	2,513		$	2,520		$	11	$	11		$	9,235		$	2,439		$	2,524		$	11,755

* Primarily represents results of AIA, which was deconsolidated during 2010.

Schedule of long-duration insurance in force ceded to other insurance companies




At December 31, (in millions)	2012		2011		2010^*

Long-duration insurance in force ceded	$	129,159	$	140,156	$	148,605

* Excludes amounts related to held-for-sale entities.

DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2012

DEFERRED POLICY ACQUISITION COSTS

Rollforward of DAC




Years Ended December 31, (in millions)	2012			2011			2010

AIG Property Casualty:
Balance, beginning of year	$	2,375		$	2,099		$	1,919

Acquisition costs deferred		4,861			4,548			4,058
Amortization expense		(4,761	)		(4,324	)		(3,894	)
Increase (decrease) due to foreign exchange and other		(34	)		52			16

Balance, end of year	$	2,441		$	2,375		$	2,099

AIG Life and Retirement:
Balance, beginning of year	$	6,502		$	7,258		$	8,462

Acquisition costs deferred		724			869			701
Amortization expense		(931	)		(1,142	)		(1,086	)
Change in net unrealized losses on securities		(621	)		(486	)		(817	)
Increase (decrease) due to foreign exchange		(2	)		3			1
Other		–			–			(3	)

Balance, end of year^(a)	$	5,672		$	6,502		$	7,258

Other operations:
Balance, beginning of year	$	25		$	32		$	17,505

Dispositions^(b)		–			–			(16,117	)
Acquisition costs deferred		36			14			1,218
Amortization expense		(17	)		(20	)		(841	)
Change in net unrealized gains (losses) on securities		–			–			28
Increase due to foreign exchange		–			1			314
Activity of discontinued operations		–			–			59
Reclassified to Assets held for sale		–			–			(1,960	)
Other		–			(2	)		(174	)

Subtotal	$	44		$	25		$	32
Consolidation and eliminations		25			35			42

Balance, end of year^(a)	$	69		$	60		$	74

Total deferred policy acquisition costs	$	8,182		$	8,937		$	9,431

(b) For 2010, includes AIA which was deconsolidated and ALICO which was sold in 2010.

VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2012

VARIABLE INTEREST ENTITIES

Schedule of Consolidated Variable Interest Entities




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

AIA/ALICO SPVs	$	0.6	^(b)	$	14.2	$	0.1	$	0.1
Real estate and investment funds^(c)		1.0			1.5		0.2		0.4
Securitization Vehicles		2.4			–		–		–
Structured investment vehicles		1.7			1.0		0.1		–
Affordable housing partnerships		2.3			2.5		0.2		0.1
Other		3.3			3.6		1.3		2.0

Total	$	11.3		$	22.8	$	1.9	$	2.6

(a) The assets of each VIE can be used only to settle specific obligations of that VIE.

(c) At December 31, 2012 and December 31, 2011, off-balance sheet exposure with respect to real estate and investments funds was $48.7 million and $85.7 million, respectively.

Schedule of Unconsolidated Variable Interest Entities

			Maximum Exposure to Loss


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

December 31, 2012
Real estate and investment funds	$	16.7	$	1.8	$	0.2	$	2.0
Affordable housing partnerships		0.5		0.5		–		0.5
Other		1.0		0.1		–		0.1

Total	$	18.2	$	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)	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011

Assets:
Available for sale securities	$	2.9	$	0.4	$	–	$	–
Trading securities		1.0		1.3		0.1		7.1
Mortgage and other loans receivable		0.4		0.5		–		–
Other invested assets^*		4.0		17.2		2.3		2.6
Other asset accounts		3.0		3.4		–		–

Total	$	11.3	$	22.8	$	2.4	$	9.7

Liabilities:
Long-term debt	$	0.7	$	1.7	$	–	$	–
Other liability accounts		1.2		0.9		–		–

Total	$	1.9	$	2.6	$	–	$	–

* Decrease from prior year was due to the repayment of the FRBNY Credit Facility from the AIA and ALICO SPVs pursuant to the Recapitalization.

DERIVATIVES AND HEDGE ACCOUNTING (Tables)

12 Months Ended

Dec. 31, 2012

DERIVATIVES AND HEDGE ACCOUNTING

Notional amounts and fair values of derivative instruments




	December 31, 2012								December 31, 2011
	Gross Derivative Assets				Gross Derivative Liabilities				Gross Derivative Assets				Gross Derivative Liabilities
(in millions)	Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)		Notional Amount		Fair Value^(a)

Derivatives designated as hedging instruments:
Interest rate contracts^(b)	$	–	$	–	$	–	$	–	$	–	$	–	$	481	$	38
Foreign exchange contracts		–		–		–		–		–		–		180		1
Derivatives not designated as hedging instruments:
Interest rate contracts^(b)		63,463		6,479		63,482		5,806		72,660		8,286		73,248		6,870
Foreign exchange contracts		8,325		104		10,168		174		3,278		145		3,399		178
Equity contracts^(c)		4,990		221		25,626		1,377		4,748		263		18,911		1,126
Commodity contracts		625		145		622		146		691		136		861		146
Credit contracts		70		60		16,244		2,051		407		89		25,857		3,366
Other contracts^(d)		20,449		38		1,488		206		24,305		741		2,125		372

Total derivatives not designated as hedging instruments		97,922		7,047		117,630		9,760		106,089		9,660		124,401		12,058

Total derivatives	$	97,922	$	7,047	$	117,630	$	9,760	$	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




	December 31, 2012										December 31, 2011
	Derivative Assets					Derivative Liabilities					Derivative Assets					Derivative Liabilities
(in millions)	Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value

Global Capital Markets derivatives:
AIG Financial Products	$	59,854	$	4,725		$	66,717	$	5,506		$	86,128	$	7,063		$	90,241	$	8,853
AIG Markets		14,028		1,308			18,774		1,818			7,908		1,409			8,201		1,168

Total Global Capital Markets derivatives		73,882		6,033			85,491		7,324			94,036		8,472			98,442		10,021
Non-Global Capital Markets derivatives^(a)		24,040		1,014			32,139		2,436			12,053		1,188			26,620		2,076

Total derivatives, gross	$	97,922		7,047		$	117,630		9,760		$	106,089		9,660		$	125,062		12,097

Counterparty netting^(b)				(2,467	)				(2,467	)				(3,660	)				(3,660	)
Cash collateral^(c)				(909	)				(1,976	)				(1,501	)				(2,786	)

Total derivatives, net				3,671					5,317					4,499					5,651

Less: Bifurcated embedded derivatives				–					1,256					–					918

Total derivatives on consolidated balance sheet			$	3,671				$	4,061				$	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




Years Ended December 31, (in millions)	2012			2011

Interest rate contracts:^(a)
Loss recognized in earnings on derivatives	$	–		$	(3	)
Gain recognized in earnings on hedged items^(b)		124			152
Foreign exchange contracts:^(a)
Loss recognized in earnings on derivatives		(2	)		(1	)
Gain recognized in earnings on hedged items		2			1

(a) Gains and losses recognized in earnings for the ineffective portion and amounts excluded from effectiveness testing, if any, are recorded in Net realized capital gains (losses).

Effect of AIG's derivative instruments in cash flow hedging relationships in the Consolidated Statement of Operations




Years Ended December 31, (in millions)	2012			2011

Interest rate contracts^(a):
Gain (loss) recognized in OCI on derivatives	$	(2	)	$	(5	)
Gain (loss) reclassified from Accumulated OCI into earnings^(b)		(35	)		(55	)

Effect of AIG's derivative instruments not designated as hedging instruments in the Consolidated Statement of Operations




	Gains (Losses) Recognized in Earnings
Years Ended December 31, (in millions)	Gains (Losses) Recognized in Earnings
Years Ended December 31, (in millions)	2012			2011

By Derivative Type:
Interest rate contracts^(a)	$	(241	)	$	603
Foreign exchange contracts		96			137
Equity contracts^(b)		(641	)		(263	)
Commodity contracts		(1	)		4
Credit contracts		641			337
Other contracts		6			47

Total	$	(140	)	$	865

By Classification:
Policy fees	$	160		$	113
Net investment income		5			8
Net realized capital gains (losses)		(672	)		248
Other income (losses)		367			496

Total	$	(140	)	$	865

(a) Includes cross currency swaps.

(b) Includes embedded derivative losses of $166 million and $397 million for the years ended December 31, 2012 and 2011, respectively.

Net notional amount, fair value of derivative (asset) liability and unrealized market valuation gain (loss)




									Unrealized Market Valuation Gain^(c)
					Fair Value of Derivative Liability at^(b)(c)
	Net Notional Amount^(a)
	Net Notional Amount^(a)								Years Ended December 31,
	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011		Years Ended December 31,
(in millions)	December 31, 2012		December 31, 2011		December 31, 2012		December 31, 2011		2012		2011

Regulatory Capital:
Corporate loans	$	–	$	1,830	$	–	$	–	$	–	$	–
Prime residential mortgages		97		3,653		–		–		–		6
Other		–		887		–		9		9		8

Total		97		6,370		–		9		9		14

Arbitrage:
Multi-sector CDOs^(d)		3,944		5,476		1,910		3,077		538		249
Corporate debt/CLOs^(e)		11,832		11,784		60		127		67		44

Total		15,776		17,260		1,970		3,204		605		293

Mezzanine tranches		–		989		–		10		3		32

Total	$	15,873	$	24,619	$	1,970	$	3,223	$	617	$	339

(b) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral.

- 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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-Topic 235

-SubTopic 10

-Section S99

-Paragraph 1

-Subparagraph (SX 210.4-08.(n)(2))

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

+ Details

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2012

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS

Schedule of reconciliation of activity in the liability for unpaid claims and claims adjustment expense




Years Ended December 31, (in millions)	2012			2011			2010

Liability for unpaid claims and claims adjustment expense, beginning of year	$	91,145		$	91,151		$	85,386
Reinsurance recoverable		(20,320	)		(19,644	)		(17,487	)

Net liability for unpaid claims and claims adjustment expense, beginning of year		70,825			71,507			67,899

Foreign exchange effect		757			353			(126	)
Acquisitions^(a)		–			–			1,538
Dispositions		(11	)		–			(87	)
Changes in net loss reserves due to NICO transaction		90			(1,703	)		–

Total		71,661			70,157			69,224

Losses and loss expenses incurred^(b):
Current year		25,385			27,931			24,455
Prior years, other than accretion of discount^(c)		421			195			4,182
Prior years, accretion of discount		(63	)		34			(562	)

Total		25,743			28,160			28,075

Losses and loss expenses paid^(b):
Current year		9,297			11,534			9,873
Prior years		19,325			15,958			15,919

Total		28,622			27,492			25,792

Balance, end of year:
Net liability for unpaid claims and claims adjustment expense		68,782			70,825			71,507
Reinsurance recoverable		19,209			20,320			19,644

Total	$	87,991		$	91,145		$	91,151

(a) Represents the acquisition of Fuji on March 31, 2010.

(b) Includes amounts related to dispositions through the date of disposition.

Schedule of components of future policy benefits




At December 31, (in millions)	2012		2011

Future policy benefits:
Long duration and contracts	$	36,121	$	33,322
Short duration contracts		219		995

Total future policy benefits	$	36,340	$	34,317

Schedule of policyholder contract deposits liabilities




At December 31, (in millions)	2012		2011

Policyholder contract deposits:
Annuities	$	98,544	$	98,657
Universal life products		13,045		12,917
Guaranteed investment contracts		6,178		6,788
Variable products – fixed account option		3,936		3,181
Corporate life products		2,284		2,239
Other investment contracts		3,130		3,116

Total policyholder contract deposits	$	127,117	$	126,898

- Definition

The entire disclosure for the present values of future benefits to be paid to or on behalf of policyholders and related expenses less the present value of future net premiums using assumptions such as estimates of expected investment yields, mortality, morbidity, terminations and expenses, applicable at the time the insurance contracts are made and unpaid claim costs relating to insurance contracts including estimates of costs relating to incurred but not reported claims based on the estimated ultimate cost of settling the claims (including effects of inflation and other societal and economic factors), using past experience adjusted for current trends and any other factors that would modify past experience by element such as business segment, country and interest rate range.

+ References+ Details

- Definition

Tabular disclosure of the activity in the reserve for settling insured claims and expenses incurred in the claims settlement process for the period. The estimated liability includes the amount of money that will be required for future payments of (a) claims that have been reported to the insurer, (b) claims related to insured events that have occurred but that have not been reported to the insurer as of the date the liability is estimated, and (c) claim adjustment expenses. Claim adjustment expenses include costs incurred in the claim settlement process such as legal fees; outside adjuster fees; and costs to record, process, and adjust claims.

+ References+ Details

VARIABLE LIFE AND ANNUITY CONTRACTS (Tables)

12 Months Ended

Dec. 31, 2012

VARIABLE LIFE AND ANNUITY CONTRACTS

Schedule of details concerning entity's GMDB exposures




	2012					2011
At December 31, (dollars in billions)	Net Deposits Plus a Minimum Return			Highest Contract Value Attained		Net Deposits Plus a Minimum Return			Highest Contract Value Attained

Account value^(a)	$	64		$	13	$	57		$	12
Amount at risk^(b)		2			1		3			2
Average attained age of contract holders by product		59 - 73 years			66 - 75 years		58 - 72 years			67 - 74 years

Range of guaranteed minimum return rates		3 - 10	%				3 - 10	%

(a) Included in Policyholder contract deposits in the Consolidated Balance Sheet.

(b) Represents the amount of death benefit currently in excess of Account value.

Schedule of changes in GMDB and GMIB liabilities for guarantees on variable contracts reflected in the general account




Years Ended December 31, (in millions)	2012			2011

Balance, beginning of year	$	445		$	412
Reserve increase		43			120
Benefits paid		(75	)		(87	)

Balance, end of year	$	413		$	445

- Definition

Tabular disclosure of minimum guaranteed benefits to policyholders and contract holders, such as guaranteed minimum death benefit, guaranteed minimum income benefit, and guaranteed annuitization benefits, discloses the amount of liability reported for additional insurance benefits, annuitization benefits and other minimum guarantees, by type of benefit, for the most recent balance sheet date and the incurred and paid amounts for periods presented for traditional and nontraditional products.

+ References+ Details

- Definition

Tabular disclosure of the guaranteed benefits in excess of the current account balance, quantifies such excesses (the net amounts at risk) and includes other relevant, pertinent information as of the most recent balance sheet date by product type.

+ References+ Details

DEBT OUTSTANDING (Tables)

12 Months Ended

Dec. 31, 2012

DEBT OUTSTANDING

Schedule of total debt outstanding




Year Ended December 31, 2012 (in millions)^{Interest Rate(s)}	Range of	Maturity Date(s)		Balance at December 31, 2012		Balance at December 31, 2011

Debt issued or guaranteed by AIG:
AIG general borrowings:
Notes and bonds payable	2.50% - 8.13%		2013 - 2097	$	14,084	$	12,725
Subordinated debt	2.38%		2015		250		–
Junior subordinated debt^(a)	4.88% - 8.63%		2037 - 2058		9,416		9,327
Loans and mortgages payable	1.09% - 9.00%		2013 - 2015		79		234
SunAmerica Financial Group, Inc. notes and bonds payable	6.63% - 7.50%		2025 - 2029		298		298
Liabilities connected to trust preferred stock	7.57% - 8.50%		2030 - 2046		1,339		1,339

Total AIG general borrowings	–		–		25,466		23,923

AIG borrowings supported by assets:
MIP notes payable	0.38% - 8.59%		2013 - 2018		9,296		10,147
Series AIGFP matched notes and bonds payable	0.06% - 8.25%		2013 - 2052		3,544		3,807
GIAs, at fair value^(b)	3.50% - 9.80%		2013 - 2047		6,501		7,964
Notes and bonds payable, at fair value^(b)	0.18% - 10.37%		2013 - 2053		1,554		2,316
Loans and mortgages payable, at fair value	–		–		–		486

Total AIG borrowings supported by assets	–		–		20,895		24,720

Total debt issued or guaranteed by AIG	–		–		46,361		48,643

Debt not guaranteed by AIG:
ILFC:
Notes and bonds payable, ECA Facility, bank financings and other secured financings	0.50% - 8.88%		2013 - 2025		–		23,365
Junior subordinated debt	4.54% - 6.25%		2065		–		999

Total ILFC debt^(c)	–		–		–		24,364

Other subsidiaries notes, bonds, loans and mortgages payable	0.24% - 8.29%		2013 - 2060		325		393

Debt of consolidated investments^(d)	0.03% - 7.15%		2013 - 2035		1,814		1,853

Total debt not guaranteed by AIG	–		–		2,139		26,610

Total long term debt	–		–	$	48,500	$	75,253

(c) Excludes $24.3 billion of debt for ILFC at December 31, 2012 which has been reclassified to Liabilities of businesses held for sale.

Maturities of long-term debt, excluding borrowings of consolidated investments

			Year Ending


December 31, 2012 (in millions)			Year Ending
December 31, 2012 (in millions)	Total		2013		2014		2015		2016		2017		Thereafter

General borrowings:
Notes and bonds payable	$	14,084	$	1,469	$	500	$	999	$	1,738	$	1,455	$	7,923
Subordinated debt		250		–		–		250		–		–		–
Junior subordinated debt		9,416		–		–		–		–		–		9,416
Loans and mortgages payable		79		77		–		2		–		–		–
SAFG, Inc. notes and bonds payable		298		–		–		–		–		–		298
Liabilities connected to trust preferred stock		1,339		–		–		–		–		–		1,339

AIG general borrowings	$	25,466	$	1,546	$	500	$	1,251	$	1,738	$	1,455	$	18,976

Borrowings supported by assets:
MIP notes payable		9,296		851		1,613		1,021		1,329		3,971		511
Series AIGFP matched notes and bonds payable		3,544		3		–		–		–		–		3,541
GIAs, at fair value		6,501		380		585		601		321		260		4,354
Notes and bonds payable, at fair value		1,554		366		31		193		329		104		531
Loans and mortgages payable, at fair value		–		–		–		–		–		–		–

AIG borrowings supported by assets		20,895		1,600		2,229		1,815		1,979		4,335		8,937

Other subsidiaries notes, bonds, loans and mortgages payable		325		43		11		22		3		5		241

Total	$	46,686	$	3,189	$	2,740	$	3,088	$	3,720	$	5,795	$	28,154

Schedule of detail for uncollateralized and collateralized notes, bonds, loans and mortgages payable

At December 31, 2012 (in millions)	Uncollateralized Notes/Bonds/Loans Payable		Collateralized Loans and Mortgages Payable		Total



AIG general borrowings	$	79	$	–	$	79
Other subsidiaries notes, bonds, loans and mortgages payable^*		104		221		325

Total	$	183	$	221	$	404

* AIG does not guarantee any of these borrowings.

Summary of the Four-Year Facility

December 31, 2012 (in millions) Facility	Size		Available Amount



Four-Year Syndicated Credit Facility	$	4,000	$	3,037	October 2016	10/05/2012

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Tables)

12 Months Ended

Dec. 31, 2012

CONTINGENCIES, COMMITMENTS AND GUARANTEES

Future minimum lease payments under operating leases

(in millions)



2013	$	390
2014		282
2015		207
2016		171
2017		138
Remaining years after 2017		310

Total	$	1,498

Minimum future rental income on noncancelable operating leases of flight equipment that has been delivered

(in millions)



2013	$	3,854
2014		3,344
2015		2,631
2016		2,001
2017		1,347
Remaining years after 2017		1,628

Total	$	14,805

TOTAL EQUITY (Tables)

12 Months Ended

Dec. 31, 2012

TOTAL EQUITY

Rollforward of common stock outstanding

	Preferred Stock


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

Year Ended December 31, 2010
Shares, beginning of year		400,000			300,000			100,000			–			141,732,263		(6,661,356	)		135,070,907
Issuances		–			–			–			–			5,391,804		–			5,391,804
Shares exchanged		–			–			–			–			–		448			448

Shares, end of year		400,000			300,000			100,000			–			147,124,067		(6,660,908	)		140,463,159

Year Ended December 31, 2011
Shares, beginning of year		400,000			300,000			100,000			–			147,124,067		(6,660,908	)		140,463,159
Issuances		–			–			–			20,000			100,799,653		–			100,799,653
Settlement of equity unit stock purchase contracts		–			–			–			–			3,606,417		–			3,606,417
Shares exchanged^*		(400,000	)		(300,000	)		(100,000	)		–			1,655,037,962		(11,678	)		1,655,026,284
Shares purchased		–			–			–			–			–		(3,074,031	)		(3,074,031	)
Shares cancelled		–			–			–			(20,000	)		–		–			–

Shares, end of year		–			–			–			–			1,906,568,099		(9,746,617	)		1,896,821,482

Year Ended December 31, 2012
Shares, beginning of year		–			–			–			–			1,906,568,099		(9,746,617	)		1,896,821,482
Issuances		–			–			–			–			43,581		685,727			729,308
Shares purchased		–			–			–			–			–		(421,228,855	)		(421,228,855	)

Shares, end of year		–			–			–			–			1,906,611,680		(430,289,745	)		1,476,321,935

Consolidated balance sheet line items affected by the recapitalization

	Effect of Recapitalization


Increase (Decrease) (in millions)	Repayment and Termination of FRBNY Credit Facility^(a)			Repurchase and Exchange of SPV Preferred Interests			Exchange of Preferred Stock for Common Stock^(c)			Total Effect of Recapitalization

Other assets	$	(24,297	)	$	(6,140	)^(b)	$	–		$	(30,437	)
Other liabilities		(325	)		–			–			(325	)
Federal Reserve Bank of New York credit facility		(20,689	)		–			–			(20,689	)
Redeemable noncontrolling nonvoting, callable, junior preferred interests held by Department of Treasury		–			20,292			–			20,292
AIG shareholders' equity:
Preferred stock
Series C preferred stock		–			–			(23,000	)		(23,000	)
Series E preferred stock		–			–			(41,605	)		(41,605	)
Series F preferred stock		–			20,292			(7,378	)		(7,378	)
					(20,292	)
Series G preferred stock; 20,000 shares issued; liquidation value $0^(d)		–			–			–			–
Common stock		–			–			4,138			4,138
Additional paid-in capital		–			–			67,845			67,845
Retained Earnings		(3,283	)		–			–			(3,283	)
Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York		–			(26,432	)		–			(26,432	)
Shares outstanding								1,655,037,962			1,655,037,962

(d) In connection with the May 2011 AIG Common Stock offering and sale, the Series G Preferred Stock was cancelled.

Rollforward of preferred stock

(in millions)	AIG Series E			AIG Series F			AIG Series C			Total Preferred Stock



Balance, January 1, 2010	$	41,605		$	5,179		$	23,000		$	69,784
AIG Series F drawdown		–			2,199			–			2,199

Balance, December 31, 2010	$	41,605		$	7,378		$	23,000		$	71,983

Shares Exchanged		(41,605	)		(7,378	)		(23,000	)		(71,983	)

Balance, December 31, 2011	$	–		$	–		$	–		$	–

Shares Exchanged		–			–			–			–

Balance, December 31, 2012	$	–		$	–		$	–		$	–

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)			U.S. Treasury				AIG^*
(dollars in millions, except share-price data)	Price		Shares Sold		Amount		Shares Purchased		Amount

May 2011 Offering	$	29.00		200,000,000	$	5,800		–	$	–
2012 Offerings:
March Offering		29.00		206,896,552		6,000		103,448,276		3,000
May Offering		30.50		188,524,589		5,750		65,573,770		2,000
August Offering		30.50		188,524,590		5,750		98,360,656		3,000
September Offering		32.50		636,923,075		20,700		153,846,153		5,000
December Offering		32.50		234,169,156		7,610		–		–

				1,655,037,962	$	51,610		421,228,855	$	13,000

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

Accumulated Other Comprehensive Income (Loss)

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized			Unrealized Appreciation (Depreciation) of All Other Investments			Foreign Currency Translation Adjustments			Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities			Change in Retirement Plan Liabilities Adjustment			Total



Balance, January 1, 2010, net of tax	$	(1,785	)	$	7,829		$	2,249		$	(128	)	$	(1,144	)	$	7,021
Cumulative effect of change in accounting principle		(76	)		(168	)		(688	)		–			–			(932	)
Change in unrealized appreciation of investments		2,645			7,265			–			–			–			9,910
Change in deferred acquisition costs adjustment and other		(166	)		(491	)		–			–			–			(657	)
Change in foreign currency translation adjustments		–			–			654			–			–			654
Change in net derivative losses arising from cash flow hedging activities		–			–			–			105			–			105
Net actuarial loss		–			–			–			–			(1	)		(1	)
Prior service credit		–			–			–			–			10			10
Change attributable to divestitures and deconsolidations		43			(2,854	)		(2,357	)		6			290			(4,872	)
Deferred tax asset (liability)		(1,293	)		(1,627	)		775			(17	)		(24	)		(2,186	)

Total other comprehensive income (loss)		1,229			2,293			(928	)		94			275			2,963
Acquisition of noncontrolling interest		–			–			–			–			–			–
Noncontrolling interests		2			99			80			–			–			181

Balance, December 31, 2010, net of tax	$	(634	)	$	9,855		$	553		$	(34	)	$	(869	)	$	8,871

Change in unrealized appreciation of investments		55			5,463			–			–			–			5,518
Change in deferred acquisition costs adjustment and other(a)		11			(641	)		–			–			–			(630	)
Change in future policy benefits(b)		–			(2,302	)		–			–			–			(2,302	)
Change in foreign currency translation adjustments		–			–			(97	)		–			–			(97	)
Change in net derivative losses arising from cash flow hedging activities		–			–			–			51			–			51
Net actuarial loss		–			–			–			–			(752	)		(752	)
Prior service credit		–			–			–			–			387			387
Change attributable to divestitures and deconsolidations		23			(3,643	)		(1,681	)		–			260			(5,041	)
Deferred tax asset (liability)		(163	)		(362	)		786			(34	)		35			262

Total other comprehensive income (loss)		(74	)		(1,485	)		(992	)		17			(70	)		(2,604	)
Acquisition of noncontrolling interest		–			45			66			–			(18	)		93
Noncontrolling interests		3			(160	)		36			–			–			(121	)

Balance, December 31, 2011, net of tax	$	(711	)	$	8,575		$	(409	)	$	(17	)	$	(957	)	$	6,481

Change in unrealized appreciation of investments		2,306			8,404			–			–			–			10,710
Change in deferred acquisition costs adjustment and other		(49	)		(840	)		–			–			–			(889	)
Change in future policy benefits		(85	)		(432	)		–			–			–			(517	)
Change in foreign currency translation adjustments		–			–			(33	)		–			–			(33	)
Change in net derivative gains (losses) arising from cash flow hedging activities		–			–			–			33			–			33
Net actuarial loss		–			–			–			–			(273	)		(273	)
Prior service credit		–			–			–			–			(46	)		(46	)
Deferred tax asset (liability)		(886	)		(2,252	)		33			(16	)		232			(2,889	)

Total other comprehensive income (loss)		1,286			4,880			–			17			(87	)		6,096
Noncontrolling interests		–			9			(6	)		–			–			3

Balance, December 31, 2012, net of tax	$	575		$	13,446		$	(403	)	$	–		$	(1,044	)	$	12,574

Other comprehensive income (loss) reclassification adjustments

(in millions)	Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Recognized			Unrealized Appreciation (Depreciation) of All Other Investments			Foreign Currency Translation Adjustments			Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities			Change in Retirement Plan Liabilities Adjustment			Total



December 31, 2010
Unrealized change arising during period	$	2,469		$	9,270		$	654		$	(25	)	$	(89	)	$	12,279
Less: Reclassification adjustments included in net income		(53	)		5,350			2,357			(136	)		(388	)		7,130

Total other comprehensive income (loss), before income tax expense (benefit)		2,522			3,920			(1,703	)		111			299			5,149
Less: Income tax expense (benefit)		1,293			1,627			(775	)		17			24			2,186

Total other comprehensive income (loss), net of income tax expense (benefit)	$	1,229		$	2,293		$	(928	)	$	94		$	275		$	2,963

December 31, 2011
Unrealized change arising during period	$	84		$	4,222		$	(97	)	$	(5	)	$	(440	)	$	3,764
Less: Reclassification adjustments included in net income		(5	)		5,345			1,681			(56	)		(335	)		6,630

Total other comprehensive income (loss), before income tax expense (benefit)		89			(1,123	)		(1,778	)		51			(105	)		(2,866	)
Less: Income tax expense (benefit)		163			362			(786	)		34			(35	)		(262	)

Total other comprehensive income (loss), net of income tax expense (benefit)	$	(74	)	$	(1,485	)	$	(992	)	$	17		$	(70	)	$	(2,604	)

December 31, 2012
Unrealized change arising during period	$	2,236		$	8,896		$	(33	)	$	(2	)	$	(406	)	$	10,691
Less: Reclassification adjustments included in net income		64			1,764			–			(35	)		(87	)		1,706

Total other comprehensive income, before income tax expense (benefit)		2,172			7,132			(33	)		33			(319	)		8,985
Less: Income tax expense (benefit)		886			2,252			(33	)		16			(232	)		2,889

Total other comprehensive income, net of income tax expense (benefit)	$	1,286		$	4,880		$	–		$	17		$	(87	)	$	6,096

- 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)

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

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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

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-Name Accounting Standards Codification

-Topic 235

-SubTopic 10

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-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

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Reference 7: 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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-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

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-Article 5

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-Name Accounting Standards Codification

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+ Details

NONCONTROLLING INTERESTS (Tables)

12 Months Ended

Dec. 31, 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

Year Ended December 31, 2012
Balance, beginning of year	$	8,427		$	96		$	8,523		$	–		$	855		$	855

Repayment to Department of the Treasury		(8,635	)		–			(8,635	)		–			–			–
Net contributions (distributions)		–			36			36			–			(87	)		(87	)
Consolidation (deconsolidation)		–			68			68			–			(27	)		(27	)
Comprehensive income:
Net income		208			14			222			–			40			40
Other comprehensive income (loss), net of tax:
Unrealized gains on investments		–			4			4			–			5			5
Foreign currency translation adjustments		–			–			–			–			(6	)		(6	)

Total other comprehensive income (loss), net of tax		–			4			4			–			(1	)		(1	)

Total comprehensive income		208			18			226			–			39			39

Other		–			116			116			–			(113	)		(113	)

Balance, end of year	$	–		$	334		$	334		$	–		$	667		$	667

Year Ended December 31, 2011
Balance, beginning of year	$	–		$	434		$	434		$	26,358		$	1,562		$	27,920
Repurchase of SPV preferred interests in connection with Recapitalization		–			–			–			(26,432	)		–			(26,432	)
Exchange of consideration for preferred stock in connection with Recapitalization		20,292			–			20,292			–			–			–
Repayment to Department of the Treasury		(12,425	)		–			(12,425	)		–			–			–
Net distributions		–			(21	)		(21	)		–			(8	)		(8	)
Deconsolidation		–			(307	)		(307	)		–			(123	)		(123	)
Acquisition of noncontrolling interest		–			–			–			–			(489	)		(489	)
Comprehensive income (loss):
Net income (loss)		560			(8	)		552			74			82			156
Other comprehensive income (loss), net of tax:
Unrealized losses on investments		–			(2	)		(2	)		–			(155	)		(155	)
Foreign currency translation adjustments		–			–			–			–			36			36

Total other comprehensive income (loss), net of tax		–			(2	)		(2	)		–			(119	)		(119	)

Total comprehensive income (loss)		560			(10	)		550			74			(37	)		37

Other		–			–			–			–			(50	)		(50	)

Balance, end of year	$	8,427		$	96		$	8,523		$	–		$	855		$	855

EARNINGS (LOSS) PER SHARE (EPS) (Tables)

12 Months Ended

Dec. 31, 2012

EARNINGS (LOSS) PER SHARE (EPS)

Computation of basic and diluted EPS





Years Ended December 31, (dollars in millions, except per share data)
	2012			2011			2010

Numerator for EPS:
Income from continuing operations	$	7,752		$	19,540		$	13,254
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		208			634			1,818
Other		54			54			354

Total net income from continuing operations attributable to noncontrolling interests		262			688			2,172

Net income attributable to AIG from continuing operations		7,490			18,852			11,082

Income (loss) from discontinued operations	$	(4,052	)	$	1,790		$	(969	)
Net income from discontinued operations attributable to noncontrolling interests		–			20			55

Net income (loss) attributable to AIG from discontinued operations, applicable to common stock for EPS		(4,052	)		1,770			(1,024	)

Deemed dividends to AIG Series E and F Preferred Stock		–			(812	)		–
Income (loss) allocated to the Series C Preferred Stock – continuing operations		–			–			(8,828	)
Net income attributable to AIG common shareholders from continuing operations, applicable to common stock for EPS	$	7,490		$	18,040		$	2,254

Income (loss) allocated to the Series C Preferred Stock – discontinued operations		–			–			816
Net income (loss) attributable to AIG common shareholders from discontinued operations, applicable to common stock for EPS	$	(4,052	)	$	1,770		$	(208	)

Denominator for EPS:
Weighted average shares outstanding – basic		1,687,197,038			1,799,385,757			136,585,844
Dilutive shares		29,603			72,740			63,436

Weighted average shares outstanding – diluted*		1,687,226,641			1,799,458,497			136,649,280

EPS attributable to AIG common shareholders:
Basic and diluted:
Income from continuing operations	$	4.44		$	10.03		$	16.50
Income (loss) from discontinued operations	$	(2.40	)	$	0.98		$	(1.52	)

STATUTORY FINANCIAL DATA AND RESTRICTIONS (Tables)

12 Months Ended

Dec. 31, 2012

STATUTORY FINANCIAL DATA AND RESTRICTIONS

Schedule of statutory surplus and net income (loss) for property casualty and life insurance and retirement services operations in accordance with statutory accounting practices




(in millions)	2012		2011		2010

At December 31,
Statutory surplus(a):
Property casualty(b)	$	40,111	$	40,215
Life insurance and retirement services		14,692		14,184

Years Ended December 31,
Statutory net income (loss)(a)(c):
Property casualty	$	3,855	$	2,330	$	471
Life insurance and retirement services		3,827		797		794

(a) Excludes discontinued operations and other divested businesses. Statutory surplus and net income (loss) with respect to foreign operations are estimated at November 30.

(b) The 2011 amount was increased by $917 million for Property casualty and decreased $267 million for Life insurance and retirement services.

- Definition

Tabular disclosure of how the entity's reporting under GAAP as of the balance sheet date differs from the results based on prescribed and permitted accounting practices of the state or country of domicile in which a relevant statutory filing is made, or differences in results based on the National Association of Insurance Commissioners (NAIC) prescribed practices, or a combination thereof. Describes the accounting practices used and the related monetary effect on statutory surplus, net income, and risk-based capital. If an insurance enterprise's risk-based capital would have triggered a regulatory event had it not used a permitted practice, that fact is disclosed in the financial statements. Permitted statutory accounting practices include practices not prescribed but allowed by the domiciliary state insurance department regulatory authority.

+ References

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 505

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6486098&loc=d3e24708-158529

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 60

-Paragraph 60

-Subparagraph h

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

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

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 94-5

-Paragraph 8, 9

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

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 505

-Section 55

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6588579&loc=d3e24938-158530

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 210

-Section S99

-Paragraph 1

-Subparagraph (SX 210.7-03.23(c))

-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 505

-Section 55

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6588579&loc=d3e24959-158530

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 505

-Section 50

-Paragraph 6

-URI http://asc.fasb.org/extlink&oid=6486098&loc=d3e24790-158529

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 505

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6486098&loc=d3e24746-158529

+ Details

SHARE-BASED COMPENSATION AND OTHER PLANS (Tables)

12 Months Ended

Dec. 31, 2012

SHARE-BASED COMPENSATION AND OTHER PLANS

Schedule of share-based compensation expense recognized in Consolidated Statement of Operations




Years Ended December 31, (in millions)	2012		2011			2010

Share-based compensation expense – pre-tax*	$	286	$	(16	)	$	333
Share-based compensation expense – after tax		186		(10	)		216

Schedule of stock option activity

As of or for the Year Ended December 31, 2012			Weighted Average Exercise Price



Options:
Exercisable at beginning of year	710,298		$	1,172.25	2.96
Expired	(196,053	)	$	1,284.58

Exercisable at end of year	514,245		$	1,129.42	2.49

Summary of outstanding share-settled awards under the foregoing plans

	Number of Shares/RSUs						Weighted Average Grant-Date Fair Value


As of or for the Year Ended December 31, 2012	AIG Plans^(b)			SICO Plans			AIG Plans		SICO Plans

Unvested, beginning of year(c)		48,892			195,907		$	74.57	$	1,209.45
Granted		241,268			–			31.04		–
Vested		(240,765	)		(48,391	)		34.47		747.11
Forfeited		(10,146	)		(27,572	)		92.70		1,210.60

Unvested, end of year		39,249			119,944		$	48.29	$	1,197.96

(a) Excludes DSUs and options, which are discussed under the Non-Employee Plans and Stock Options sections above.

(b) Excludes legacy Deferred Compensation Profit Participation and Partners Plan for which the final installments (38,959 RSUs) vested on January 1, 2012.

(c) Adjusted to reflect the Company's election in 2012 to cash-settle RSUs that were previously expected to be share-settled.

Summary of SARs (based on target amounts) and cash-settled RSUs (excluding stock salary) including the related expenses

	Number of Units


Year Ended December 31, 2012	SARs			TARP RSUs			RSUs

Unvested, beginning of year^(a)		14,123,062			1,549,622			7,389
Granted^(b)		1,809,842			678,188			836,355
Vested^(c)		(1,864,801	)		(246,434	)		(139,169	)
Forfeited		(1,711,530	)		(91,942	)		(18,285	)

Unvested, end of year		12,356,573			1,889,434			686,290

Net compensation expense for the year (in millions)	$	84		$	31		$	17

(a) Adjusted to reflect our election in 2012 to cash-settle RSUs that were previously expected to be share-settled.

(b) Represents additional SARs earned as a result of the completion of the performance period for the 2010 LTIP.

(c) Pursuant to the terms of the LTIP, vesting was accelerated for SARs awarded to employees who became retirement eligible or were deceased.

Schedule of total unrecognized compensation cost (net of expected forfeitures) related to unvested SARs and cash-settled RSUs excluding stock salary and the weighted-average periods over which those costs are expected to be recognized

At December 31, 2012 (in millions)	Unrecognized Compensation Cost		Weighted- Average Period (years)	Expected Period (years)



SARs	$	28	0.87	2
TARP RSUs		33	1.04	3
RSUs		14	1.00	2

Schedule of weighted average assumptions used to estimate the fair value of SARs





Expected dividend yield^(a)	–	%
Expected volatility^(b)	33.78 - 40.57	%
Weighted-average volatility	37.64	%
Risk-free interest rate^(c)	0.34 - 0.40	%
Expected term^(d)	1.0 - 2.0 years

(a) The dividend yield is estimated at zero percent given our recent dividend history. See Note 17 herein for additional information.

(b) The expected volatilities are the implied volatilities with the nearest maturity and strike price as of valuation date from actively traded stock options on AIG Common Stock.

(d) The term to maturity is specified in the contract of each SARs grant.

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References+ Details

EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2012

DEFINED BENEFIT PLAN DISCLOSURE

Schedule of funded status of the plans, reconciled to the amount reported in the balance sheet




	Pension												Postretirement^(a)
As of or for the Years Ended December 31, (in millions)	U.S. Plans^(b)						Non-U.S. Plans^(b)						U.S. Plans						Non-U.S. Plans
As of or for the Years Ended December 31, (in millions)	2012			2011			2012			2011			2012			2011			2012			2011

Change in projected benefit obligation:
Benefit obligation, beginning of year	$	4,438		$	3,878		$	1,137		$	1,981		$	236		$	279		$	52		$	66
Service cost		154			150			53			66			5			8			3			4
Interest cost		200			207			34			37			11			13			2			2
Actuarial (gain) loss		536			653			69			(7	)		22			6			11			7
Benefits paid:
AIG assets		(12	)		(8	)		(7	)		(26	)		(11	)		(7	)		(1	)		(1	)
Plan assets		(150	)		(118	)		(35	)		(48	)		–			–			–			–
Plan amendment		–			(324	)		4			(11	)		(8	)		(63	)		–			–
Curtailments		(5	)		–			(3	)		–			–			–			(1	)		–
Settlements		–			–			(20	)		(56	)		–			–			–			–
Foreign exchange effect		–			–			(32	)		80			–			–			–			1
Dispositions		–			–			–			(888	)		–			–			–			(30	)
Acquisitions		–			–			–			–			–			–			–			–
Other		–			–			5			9			–			–			–			3

Projected benefit obligation, end of year	$	5,161		$	4,438		$	1,205		$	1,137		$	255		$	236		$	66		$	52

Change in plan assets:
Fair value of plan assets, beginning of year	$	3,432		$	3,425		$	683		$	954		$	–		$	–		$	–		$	–
Actual return on plan assets, net of expenses		438			125			34			3			–			–			–			–
AIG contributions		12			8			86			100			11			7			1			1
Benefits paid:
AIG assets		(12	)		(8	)		(7	)		(26	)		(11	)		(7	)		(1	)		(1	)
Plan assets		(150	)		(118	)		(35	)		(48	)		–			–			–			–
Settlements		–			–			(20	)		(56	)		–			–			–			–
Foreign exchange effect		–			–			(15	)		45			–			–			–			–
Dispositions		–			–			–			(295	)		–			–			–			–
Acquisitions		–			–			–			–			–			–			–			–
Other		–			–			1			6			–			–			–			–

Fair value of plan assets, end of year	$	3,720		$	3,432		$	727		$	683		$	–		$	–		$	–		$	–

Funded status, end of year	$	(1,441	)	$	(1,006	)	$	(478	)	$	(454	)	$	(255	)	$	(236	)	$	(66	)	$	(52	)

Amounts recognized in the consolidated balance sheet:

Assets	$	–		$	–		$	65		$	80		$	–		$	–		$	–		$	–

Liabilities		(1,441	)		(1,006	)		(543	)		(534	)		(255	)		(236	)		(66	)		(52	)

Total amounts recognized	$	(1,441	)	$	(1,006	)	$	(478	)	$	(454	)	$	(255	)	$	(236	)	$	(66	)	$	(52	)

Pre tax amounts recognized in Accumulated other comprehensive income (loss):

Net gain (loss)	$	(1,764	)	$	(1,550	)	$	(299	)	$	(272	)	$	(40	)	$	(18	)	$	1		$	(2	)

Prior service (cost) credit		267			303			21			30			46			48			(13	)		1

Total amounts recognized	$	(1,497	)	$	(1,247	)	$	(278	)	$	(242	)	$	6		$	30		$	(12	)	$	(1	)

(a) We do not currently fund postretirement benefits.

Schedule of components of net periodic benefit cost recognized in income and other amounts recognized in Accumulated other comprehensive income (loss)




	Pension																		Postretirement
	U.S. Plans									Non-U.S. Plans									U.S. Plans									Non-U.S. Plans
(in millions)	2012			2011			2010			2012			2011			2010			2012			2011			2010			2012			2011			2010

Components of net periodic benefit cost:
Service cost	$	154		$	150		$	149		$	53		$	66		$	137		$	5		$	8		$	8		$	3		$	4		$	8
Interest cost		200			207			216			34			37			59			11			13			15			2			2			4
Expected return on assets		(240	)		(250	)		(259	)		(20	)		(25	)		(31	)		–			–			–			–			–			–
Amortization of prior service (credit) cost		(33	)		(7	)		1			(4	)		(4	)		(9	)		(10	)		(2	)		–			–			–			–
Amortization of net (gain) loss		118			65			57			13			15			45			–			–			(1	)		–			–			–
Net curtailment (gain) loss		–			–			1			1			–			(1	)		–			–			(2	)		(1	)		–			–
Net settlement (gain) loss		–			–			58			4			8			3			–			–			(6	)		–			–			–
Other		–			–			–			–			–			2			–			–			–			–			–			–

Net periodic benefit cost	$	199		$	165		$	223		$	81		$	97		$	205		$	6		$	19		$	14		$	4		$	6		$	12

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

Total recognized in Accumulated other comprehensive income (loss)	$	(250	)	$	(396	)	$	85		$	(36	)	$	261		$	167		$	(23	)	$	56		$	(3	)	$	(11	)	$	(6	)	$	16

Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	(447	)	$	(561	)	$	(139	)	$	(117	)	$	164		$	(38	)	$	(29	)	$	37		$	(17	)	$	(15	)	$	(12	)	$	4

Schedule of weighted average assumptions used to determine the benefit obligations

	Pension						Postretirement


	U.S. Plans			Non-U.S. Plans^(a)			U.S. Plans			Non-U.S. Plans^(a)

December 31, 2012
Discount rate		3.93	%		2.62	%		3.67	%		3.45	%
Rate of compensation increase		4.00	%		2.86	%		N/A			3.55	%

December 31, 2011
Discount rate		4.62	%		3.02	%		4.51	%		4.19	%
Rate of compensation increase		4.00	%		2.94	%		N/A			3.61	%

(a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of each of the subsidiaries providing such benefits.

Schedule of weighted average assumptions used to determine the net periodic benefit costs

	Pension						Postretirement


At December 31,	U.S. Plans			Non-U.S. Plans^(a)			U.S. Plans			Non-U.S. Plans^(a)

2012
Discount rate		4.62	%		3.02	%		4.51	%		4.19	%
Rate of compensation increase		4.00	%		2.94	%		N/A			3.61	%
Expected return on assets		7.25	%		2.91	%		N/A			N/A

2011
Discount rate		5.50	%		2.25	%		5.25	%		4.00	%
Rate of compensation increase		4.00	%		3.00	%		N/A			3.00	%
Expected return on assets		7.50	%		3.14	%		N/A			N/A

2010
Discount rate		6.00	%		2.75	%		5.75	%		3.75	%
Rate of compensation increase		4.00	%		3.50	%		N/A			3.75	%
Expected return on assets		7.75	%		3.75	%		N/A			N/A

(a) The non-U.S. plans reflect those assumptions that were most appropriate for the local economic environments of the subsidiaries providing such benefits.

Schedule of plan assets based on the level within the fair value hierarchy in which the fair value measurement falls

	U.S. Plans								Non-U.S. Plans


(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total

At December 31, 2012
Assets:
Cash & cash equivalents	$	229	$	–	$	–	$	229	$	113	$	–	$	–	$	113
Equity securities:
U.S.^(a)		1,331		15		–		1,346		21		1		–		22
International^(b)		290		18		–		308		240		–		–		240
Fixed maturity securities:
U.S. investment grade^(c)		–		763		11		774		–		–		–		–
International investment grade^(c)		–		112		–		112		–		169		–		169
U.S. and international high yield^(d)		–		134		–		134		–		96		–		96
Mortgage and other asset-backed securities^(e)		–		59		–		59		–		–		–		–
Other fixed maturity securities		–		–		–		–		–		17		27		44
Other investment types:
Hedge funds^(f)		–		334		–		334		–		–		–		–
Commodities		–		170		–		170		–		–		–		–
Private equity^(g)		–		–		225		225		–		–		–		–
Insurance contracts		–		29		–		29		–		–		43		43

Total	$	1,850	$	1,634	$	236	$	3,720	$	374	$	283	$	70	$	727

At December 31, 2011
Assets:
Cash & cash equivalents	$	9	$	–	$	–	$	9	$	114	$	–	$	–	$	114
Equity securities:
U.S.^(a)		1,449		13		–		1,462		19		–		–		19
International^(b)		305		16		–		321		242		1		–		243
Fixed maturity securities:
U.S. investment grade^(c)		–		794		1		795		–		–		–		–
International investment grade^(c)		–		–		–		–		–		139		–		139
U.S. and international high yield^(d)		–		104		–		104		–		88		–		88
Mortgage and other asset-backed securities^(e)		–		80		36		116		–		–		–		–
Other fixed maturity securities		–		–		–		–		–		40		1		41
Other investment types:
Hedge funds^(f)		–		345		–		345		–		–		–		–
Commodities		–		26		–		26		–		–		–		–
Private equity^(g)		–		–		223		223		–		–		–		–
Insurance contracts		–		31		–		31		–		–		39		39

Total	$	1,763	$	1,409	$	260	$	3,432	$	375	$	268	$	40	$	683

(a) Includes index funds that primarily track several indices including S&P 500 and S&P Small Cap 600 in addition to other actively managed accounts comprised of investments in large cap companies.

(b) Includes investments in companies in emerging and developed markets.

(c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade corporate bonds.

(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade.

(e) Comprised primarily of investments in U.S. government agency or U.S. government sponsored agency bonds.

(f) Includes funds comprised of macro, event driven, long/short equity, and controlled risk hedge fund strategies and a separately managed controlled risk strategy.

(g) Includes funds that are diverse by geography, investment strategy, and sector.

Schedule of changes in Level 3 plan assets measured at fair value




At December 31, 2012 (in millions)	Balance Beginning of year		Net Realized and Unrealized Gains (Losses)		Purchases		Sales			Issuances		Settlements			Transfers In		Transfers Out			Balance at End of year		Changes in Unrealized Gains (Losses) on Instruments Held at End of year

U.S. Plan Assets:
Fixed maturity
U.S. investment grade	$	1	$	5	$	9	$	(29	)	$	–	$	(10	)	$	36	$	(1	)	$	11	$	1
Mortgage and other asset-backed securities		36		–		–		–			–		–			–		(36	)		–		–
Private equity		223		9		23		(26	)		–		–			4		(8	)		225		(14	)

Total	$	260	$	14	$	32	$	(55	)	$	–	$	(10	)	$	40	$	(45	)	$	236	$	(13	)

Non-U.S. Plan Assets:
Other fixed maturity securities	$	1	$	–	$	–	$	(1	)	$	–	$	–		$	27	$	–		$	27	$	–
Insurance contracts		39		2		2		–			–		–			–		–			43		–

Total	$	40	$	2	$	2	$	(1	)	$	–	$	–		$	27	$	–		$	70	$	–

At December 31, 2011 (in millions)	Balance Beginning of year		Net Realized and Unrealized Gains (Losses)		Purchases		Sales			Issuances		Settlements			Transfers In		Transfers Out			Balance at End of year		Changes in Unrealized Gains (Losses) on Instruments Held at End of year



U.S. Plan Assets:
Fixed maturity
U.S. investment grade	$	1	$	–	$	–	$	–		$	–	$	–		$	–	$	–		$	1	$	–
U.S. and international high yield		–		–		–		–			–		(1	)		1		–			–		1
Mortgage and other asset-backed securities		80		1		34		(79	)		–		(1	)		4		(3	)		36		13
Equities – U.S.		–		–		–		–			–		–			–		–			–		–
Private equity		209		5		30		(20	)		–		(1	)		–		–			223		(23	)

Total	$	290	$	6	$	64	$	(99	)	$	–	$	(3	)	$	5	$	(3	)	$	260	$	(9	)

Non-U.S. Plan Assets:
Other fixed maturity securities	$	–	$	–	$	1	$	–		$	–	$	–		$	–	$	–		$	1	$	–
Private equity		–		–		–		–			–		–			–		–			–		–
Insurance contracts		34		3		2		–			–		–			–		–			39		–

Total	$	34	$	3	$	3	$	–		$	–	$	–		$	–	$	–		$	40	$	–

Schedule of expected future benefit payments, net of participants' contributions

	Pension				Postretirement


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

2013	$	312	$	48	$	16	$	1
2014		322		44		17		1
2015		328		44		18		1
2016		336		47		18		1
2017		351		51		19		1
2018 - 2022		1,830		287		107		10

Pensions

DEFINED BENEFIT PLAN DISCLOSURE

Schedule of accumulated benefit obligations




At December 31, (in millions)	2012		2011

U.S. pension benefit plans	$	4,827	$	4,291
Non-U.S. pension benefit plans	$	1,125	$	895

Schedule of projected benefit obligation in excess of the plan assets and the accumulated benefit obligation in excess of the plan assets




	PBO Exceeds Fair Value of Plan Assets								ABO Exceeds Fair Value of Plan Assets
	U.S. Plans				Non-U.S. Plans				U.S. Plans				Non-U.S. Plans
At December 31, (in millions)	U.S. Plans				Non-U.S. Plans				U.S. Plans				Non-U.S. Plans
At December 31, (in millions)	2012		2011		2012		2011		2012		2011		2012		2011

Projected benefit obligation	$	5,161	$	4,438	$	1,028	$	956	$	5,161	$	4,438	$	1,018	$	916
Accumulated benefit obligation		4,827		4,291		964		895		4,827		4,291		959		864
Fair value of plan assets		3,720		3,432		485		422		3,720		3,432		478		388

U.S. Pension Plans

DEFINED BENEFIT PLAN DISCLOSURE

Schedule of asset allocation percentage by major asset class and target allocation




At December 31,	Target 2013			Actual 2012			Actual 2011

Asset class:
Equity securities		45	%		44	%		52	%
Fixed maturity securities		30	%		29	%		30	%
Other investments		25	%		27	%		18	%

Total		100	%		100	%		100	%

Non U.S. Pension Plans

DEFINED BENEFIT PLAN DISCLOSURE

Schedule of asset allocation percentage by major asset class and target allocation




At December 31,	Target 2013			Actual 2012			Actual 2011

Asset class:
Equity securities		28	%		36	%		38	%
Fixed maturity securities		43	%		43	%		39	%
Other investments		28	%		6	%		6	%
Cash and cash equivalents		1	%		15	%		17	%

Total		100	%		100	%		100	%

Postretirement Plans

DEFINED BENEFIT PLAN DISCLOSURE

Schedule of A one percent point change in the assumed healthcare cost trend rate




	One Percent Increase				One Percent Decrease
At December 31, (in millions)	One Percent Increase				One Percent Decrease
At December 31, (in millions)	2012		2011		2012			2011

U.S. plans	$	5	$	3	$	(4	)	$	(3	)
Non-U.S. plans	$	15	$	11	$	(11	)	$	(8	)

U.S. Postretirement Plans

DEFINED BENEFIT PLAN DISCLOSURE

Schedule of assumed health care cost trend rates




At December 31,	2012			2011

Following year:
Medical (before age 65)		7.39	%		7.59	%
Medical (age 65 and older)		6.82	%		6.88	%

Ultimate rate to which cost increase is assumed to decline		4.50	%		4.50	%

Year in which the ultimate trend rate is reached:
Medical (before age 65)		2027			2027
Medical (age 65 and older)		2027			2027

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES

Schedule of income (loss) from continuing operations before income tax expense (benefit) by U.S. and foreign location




Years Ended December 31, (in millions)	2012		2011			2010

U.S.	$	5,515	$	(566	)	$	15,749
Foreign		3,807		682			4,498

Total	$	9,322	$	116		$	20,247

Schedule of income tax expense (benefit) attributable to pre-tax income (loss) from continuing operations




Years Ended December 31, (in millions)	2012			2011			2010

Foreign and U.S. components of actual income tax expense:
Foreign:
Current	$	484		$	302		$	823
Deferred		(275	)		(20	)		270
U.S.:
Current		311			(284	)		(243	)
Deferred		1,050			(19,422	)		6,143

Total	$	1,570		$	(19,424	)	$	6,993

Schedule of reconciliation between actual income tax (benefit) expense and statutory U.S. federal amount computed by applying the federal income tax rate




	2012									2011								2010
Years Ended December 31, (dollars in millions)	Pre-Tax Income (Loss)			Tax Expense/ (Benefit)			Percent of Pre-Tax Income (Loss)			Pre-Tax Income (Loss)		Tax Expense/ (Benefit)			Percent of Pre-Tax Income (Loss)			Pre-Tax Income		Tax Expense/ (Benefit)			Percent of Pre-Tax Income

U.S. federal income tax at statutory rate adjustments:	$	2,893		$	1,013			35.0	%	$	2,604	$	911			35.0	%	$	22,877	$	8,007			35.0	%
Tax exempt interest					(302	)		(10.4	)				(454	)		(17.4	)				(587	)		(2.6	)
Investment in subsidiaries and partnerships					(26	)		(0.9	)				(224	)		(8.6	)				(1,319	)		(5.8	)
Variable interest entities					32			1.1					(43	)		(1.7	)				(2	)		–
Uncertain tax positions					586			20.3					(29	)		(1.1	)				(36	)		(0.2	)
Dividends received deduction					(58	)		(2.0	)				(52	)		(2.0	)				(108	)		(0.5	)
Effect of foreign operations					172			5.9					(386	)		(14.8	)				602			2.6
Bargain purchase gain					–			–					–			–					(116	)		(0.5	)
State income taxes					(83	)		(2.9	)				(85	)		(3.3	)				(104	)		(0.5	)
Other					(107	)		(3.7	)				116			4.5					215			1.0
Effect of discontinued operations					(127	)		(4.4	)				(173	)		(6.6	)				119			0.5
Effect of discontinued operations – goodwill					–			–					–			–					1,268			5.5
Valuation allowance:
Continuing operations					(1,907	)		(65.9	)				(18,307	)		NM					1,361			6.0
Discontinued operations					–			–					–			–					1,292			5.7

Consolidated total amounts		2,893			(807	)		(27.9	)		2,604		(18,726	)		NM			22,877		10,592			46.2
Amounts attributable to discontinued operations		(6,429	)		(2,377	)		37.0			2,488		698			28.1			2,630		3,599			136.8

Amounts attributable to continuing operations	$	9,322		$	1,570			16.8	%	$	116	$	(19,424	)		NM	%	$	20,247	$	6,993			34.5	%

Schedule of components of the net deferred tax asset




December 31, (in millions)	2012			2011

Deferred tax assets:
Losses and tax credit carryforwards	$	25,359		$	28,223
Unrealized loss on investments		3,365			2,436
Accruals not currently deductible, and other		4,499			6,431
Investments in foreign subsidiaries and joint ventures		1,435			1,432
Loss reserve discount		1,235			1,260
Loan loss and other reserves		547			877
Unearned premium reserve reduction		1,145			1,696
Employee benefits		1,483			1,217

Total deferred tax assets		39,068			43,572

Deferred tax liabilities:
Adjustment to life policy reserves		(1,817	)		(1,978	)
Deferred policy acquisition costs		(2,816	)		(3,340	)
Flight equipment, fixed assets and intangible assets		(2,015	)		(4,530	)
Unrealized gains related to available for sale debt securities		(7,464	)		(4,010	)
Other		(225	)		(378	)

Total deferred tax liabilities		(14,337	)		(14,236	)

Net deferred tax assets before valuation allowance		24,731			29,336
Valuation allowance		(8,036	)		(11,047	)

Net deferred tax assets (liabilities)	$	16,695		$	18,289

Schedule of consolidated income tax group tax losses and credits carryforwards

December 31, 2012 (in millions)	Gross		Tax Effected		Expiration Periods



Net operating loss carryforwards	$	40,872	$	14,305	2025 - 2031
Capital loss carryforwards – Life		17,249		6,037	2013 - 2014
Capital loss carryforwards – Non-Life		88		31	2013
Foreign tax credit carryforwards		–		5,549	2015 - 2022
Other carryforwards and other		–		515	Various

Total AIG U.S. consolidated income tax group tax losses and credits carryforwards			$	26,437

Schedule of net deferred tax assets (liabilities)




December 31, (in millions)	2012			2011

Net U.S. consolidated return group deferred tax assets	$	29,550		$	29,442
Net deferred tax assets (liabilities) in Other comprehensive income		(7,174	)		(3,041	)
Valuation allowance		(5,068	)		(7,240	)

Subtotal		17,308			19,161

Net foreign, state & local deferred tax assets		3,126			4,261
Valuation allowance		(2,968	)		(3,807	)

Subtotal		158			454

Subtotal – Net U.S, foreign, state & local deferred tax assets		17,466			19,615
Net foreign, state & local deferred tax liabilities		(771	)		(1,326	)

Total AIG net deferred tax assets (liabilities)	$	16,695		$	18,289

Schedule of rollforward of the beginning and ending balances of the total amounts of gross unrecognized tax benefits




Years Ended December 31, (in millions)	2012			2011			2010

Gross unrecognized tax benefits, beginning of year	$	4,279		$	5,296		$	4,843
Increases in tax positions for prior years		322			239			888
Decreases in tax positions for prior years		(253	)		(1,046	)		(470	)
Increases in tax positions for current year		–			48			49
Lapse in statute of limitations		(8	)		(7	)		(6	)
Settlements		(5	)		(259	)		(12	)
Activity of discontinued operations		50			8			–
Less: Unrecognized tax benefits of held for sale entities		–			–			4

Gross unrecognized tax benefits, end of year	$	4,385		$	4,279		$	5,296

Schedule of tax years that remain subject to examination by major tax jurisdictions

At December 31, 2012		Open Tax Years



Major Tax Jurisdiction
United States		2000 - 2011
Australia		2008 - 2011
France		2008 - 2011
Japan		2007 - 2011
Korea		2007 - 2011
Singapore		2011
United Kingdom		2010 - 2011

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 31, 2012

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

Consolidated Statements of Income (Loss)




	Three Months Ended
	March 31,						June 30,						September 30,						December 31,
(dollars in millions, except per share data)	March 31,						June 30,						September 30,						December 31,
(dollars in millions, except per share data)	2012			2011			2012			2011			2012			2011			2012			2011

Total revenues	$	17,291		$	16,283		$	16,006		$	15,547		$	16,505		$	11,606		$	15,854		$	16,376
Income (loss) from continuing operations before income taxes		4,466			(1,428	)		1,669			1,711			2,558			(2,938	)		629			2,771
Income (loss) from discontinued operations, net of income taxes		64			2,707			179			41			37			(1,052	)		(4,332	)		94
Net income (loss)		3,449			1,501			2,339			2,053			1,861			(3,826	)		(3,949	)		21,602
Net income (loss) from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior, and senior preferred interests		208			252			–			141			–			145			–			96
Other		33			(55	)		7			64			5			19			9			26

Total net income from continuing operations attributable to noncontrolling interests		241			197			7			205			5			164			9			122
Net income (loss) from discontinued operations attributable to noncontrolling interests		–			7			–			12			–			–			–			1

Total net income (loss) attributable to noncontrolling interests		241			204			7			217			5			164			9			123
Net income (loss) attributable to AIG	$	3,208		$	1,297		$	2,332		$	1,836		$	1,856		$	(3,990	)	$	(3,958	)	$	21,479

Earnings (loss) per common share attributable to AIG common shareholders:
Basic and diluted:
Income (loss) from continuing operations	$	1.68		$	(1.42	)	$	1.23		$	0.98		$	1.11		$	(1.55	)	$	0.25		$	11.26
Income (loss) from discontinued operations	$	0.03		$	1.73		$	0.10		$	0.02		$	0.02		$	(0.55	)	$	(2.93	)	$	0.05

Weighted average shares outstanding:
Basic		1,875,972,970			1,557,748,353			1,756,689,067			1,836,713,069			1,642,472,814			1,899,500,628			1,476,457,586			1,898,734,116
Diluted		1,876,002,775			1,557,863,729			1,756,714,475			1,836,771,513			1,642,502,251			1,899,500,628			1,476,457,586			1,898,845,071

Noteworthy quarterly items – income (expense):
Other-than-temporary impairments		(618	)		(254	)		(216	)		(181	)		(114	)		(496	)		(219	)		(349	)
Net gain (loss) on sale of divested businesses		–			(72	)		–			(2	)		–			(2	)		(2	)		2
Adjustment to federal and foreign deferred tax valuation allowance		347			(604	)		1,239			564			205			(905	)		116			19,252
Net gain (loss) on extinguishment of debt		(21	)		(3,313	)		(11	)		(79	)		–			–			41			484
Change in fair value of AIA securities		1,795			1,062			(493	)		1,521			527			(2,315	)		240			1,021
Change in fair value of Maiden Lane Interests		1,498			995			1,306			(843	)		330			(974	)		–			218

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

12 Months Ended

Dec. 31, 2012

INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT

Condensed Consolidating Balance Sheet

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



December 31, 2012
Assets:
Short-term investments	$	14,764	$	–	$	18,323		$	(4,279	)	$	28,808
Other investments(a)		3,902		–		345,706			(2,592	)		347,016

Total investments		18,666		–		364,029			(6,871	)		375,824
Cash		81		73		997			–			1,151
Loans to subsidiaries(b)		35,064		–		5,169			(40,233	)		–
Investment in consolidated subsidiaries(b)		70,781		43,891		(28,239	)		(86,433	)		–
Other assets, including current and deferred income taxes		23,153		150		121,345			(4,955	)		139,693
Assets held for sale		–		–		31,965			–			31,965

Total assets	$	147,745	$	44,114	$	495,266		$	(138,492	)	$	548,633

Liabilities:
Insurance liabilities	$	–	$	–	$	280,487		$	(235	)	$	280,252
Other long-term debt		36,366		1,638		10,197			299			48,500
Other liabilities, including intercompany balances(a)(c)		12,375		261		90,022			(9,146	)		93,512
Loans from subsidiaries(b)		1,002		472		41,754			(43,228	)		–
Liabilities held for sale		–		–		27,366			–			27,366

Total liabilities		49,743		2,371		449,826			(52,310	)		449,630

Other		–		–		192			142			334

Redeemable noncontrolling interests		–		–		192			142			334

Total AIG shareholders' equity		98,002		41,743		44,955			(86,698	)		98,002
Non-redeemable noncontrolling interests		–		–		293			374			667

Total equity		98,002		41,743		45,248			(86,324	)		98,669

Total liabilities and equity	$	147,745	$	44,114	$	495,266		$	(138,492	)	$	548,633

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	)		–			–
Investment in consolidated subsidiaries(b)(d)		80,990		32,361		(11,463	)		(101,888	)		–
Other assets, including current and deferred income taxes		25,019		2,722		117,992			(4,591	)		141,142

Total assets	$	165,623	$	35,096	$	563,478		$	(211,143	)	$	553,054

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)		15,863		249		77,767			(9,510	)		84,369
Loans from subsidiaries(b)		12,316		2,420		(14,736	)		–			–

Total liabilities		64,085		4,307		484,061			(110,315	)		442,138

Redeemable noncontrolling interests (see Note 18):
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	$	165,623	$	35,096	$	563,478		$	(211,143	)	$	553,054

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

(b) Eliminated in consolidation.

Condensed Consolidating Statement of Income (Loss)

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



Year Ended December 31, 2012
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	1,970		$	2,315		$	–		$	(4,285	)	$	–
Change in fair value of ML III		2,287			–			601			–			2,888
Other income(b)		1,911			49			61,191			(383	)		62,768

Total revenues		6,168			2,364			61,792			(4,668	)		65,656

Expenses:
Other interest expense(c)		2,257			174			271			(383	)		2,319
Net loss on extinguishment of debt		9			–			–			–			9
Other expenses		1,602			–			52,404			–			54,006

Total expenses		3,868			174			52,675			(383	)		56,334

Income (loss) from continuing operations before income tax expense (benefit)		2,300			2,190			9,117			(4,285	)		9,322
Income tax expense (benefit)		(1,137	)		(17	)		2,724			–			1,570

Income (loss) from continuing operations		3,437			2,207			6,393			(4,285	)		7,752
Income (loss) from discontinued operations		1			–			(4,053	)		–			(4,052	)

Net income (loss)		3,438			2,207			2,340			(4,285	)		3,700
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			208			208
Other		–			–			54			–			54

Total net income attributable to noncontrolling interests		–			–			54			208			262

Net income (loss) attributable to AIG	$	3,438		$	2,207		$	2,286		$	(4,493	)	$	3,438

Year Ended December 31, 2011
Revenues:
Equity in earnings of consolidated subsidiaries(a)(d)	$	6,260		$	1,586		$	–		$	(7,846	)	$	–
Change in fair value of ML III		(723	)		–			77			–			(646	)
Other income(b)(d)		1,088			189			60,370			(1,189	)		60,458

Total revenues		6,625			1,775			60,447			(9,035	)		59,812

Expenses:
Interest expense on FRBNY Credit Facility		72			–			–			(2	)		70
Other interest expense(c)		2,845			281			437			(1,189	)		2,374
Net loss on extinguishment of debt		2,847			–			–			–			2,847
Other expenses		867			–			53,538			–			54,405

Total expenses		6,631			281			53,975			(1,191	)		59,696

Income (loss) from continuing operations before income tax expense (benefit)		(6	)		1,494			6,472			(7,844	)		116
Income tax expense (benefit)		(19,695	)		(103	)		374			–			(19,424	)

Income (loss) from continuing operations		19,689			1,597			6,098			(7,844	)		19,540
Income (loss) from discontinued operations		933			–			859			(2	)		1,790

Net income (loss)		20,622			1,597			6,957			(7,846	)		21,330
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–			634			634
Other		–			–			54			–			54

Total income from continuing operations attributable to noncontrolling interests		–			–			54			634			688
Income from discontinued operations attributable to noncontrolling interests		–			–			20			–			20

Total net income attributable to noncontrolling interests		–			–			74			634			708

Net income (loss) attributable to AIG	$	20,622		$	1,597		$	6,883		$	(8,480	)	$	20,622

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



Year Ended December 31, 2010
Revenues:
Equity in earnings of consolidated subsidiaries(a)	$	21,385		$	1,695		$	–	$	(23,080	)	$	–
Change in fair value of ML III		–			–			1,792		–			1,792
Other income(b)		3,046			246			70,403		(2,658	)		71,037

Total revenues		24,431			1,941			72,195		(25,738	)		72,829

Expenses:
Interest expense on FRBNY Credit Facility		4,107			–			–		(79	)		4,028
Other interest expense(c)		2,279			378			2,711		(2,654	)		2,714
Loss on extinguishment of debt		104			–			–		–			104
Other expenses		1,664			–			44,072		–			45,736

Total expenses		8,154			378			46,783		(2,733	)		52,582

Income (loss) from continuing operations before income tax expense (benefit)		16,277			1,563			25,412		(23,005	)		20,247

Income tax expense (benefit)(d)		5,402			(101	)		1,692		–			6,993

Income (loss) from continuing operations		10,875			1,664			23,720		(23,005	)		13,254
Loss from discontinued operations		(817	)		–			(73)		(79	)		(969)

Net income (loss)		10,058			1,664			23,647		(23,084	)		12,285
Less:
Net income from continuing operations attributable to noncontrolling interests:
Nonvoting, callable, junior and senior preferred interests		–			–			–		1,818			1,818
Other		–			–			354		–			354

Total income from continuing operations attributable to noncontrolling interests		–			–			354		1,818			2,172

Income from discontinued operations attributable to noncontrolling interests		–			–			55		–			55

Total net income attributable to noncontrolling interests		–			–			409		1,818			2,227

Net income (loss) attributable to AIG	$	10,058		$	1,664		$	23,238	$	(24,902	)	$	10,058

(a) Eliminated in consolidation.

(b) Includes intercompany income of $242 million, $489 million, and $2.6 billion for 2012, 2011, and 2010, respectively, for American International Group, Inc. (As Guarantor).

(c) Includes intercompany interest expense of $141 million, $700 million, and $28 million for 2012, 2011, and 2010, respectively, for American International Group, Inc. (As Guarantor).

Condensed Consolidating Statement of Comprehensive Income (Loss)




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

Year Ended December 31, 2012
Net income (loss)	$	3,438		$	2,207	$	2,340		$	(4,285	)	$	3,700
Other comprehensive income (loss)		6,093			3,973		7,158			(11,128	)		6,096

Comprehensive income (loss)		9,531			6,180		9,498			(15,413	)		9,796
Total comprehensive income attributable to noncontrolling interests		–			–		57			208			265

Comprehensive income (loss) attributable to AIG	$	9,531		$	6,180	$	9,441		$	(15,621	)	$	9,531

Year Ended December 31, 2011
Net income (loss)	$	20,622		$	1,597	$	6,957		$	(7,846	)	$	21,330
Other comprehensive income (loss)		(2,483	)		1,101		(2,674	)		1,452			(2,604	)

Comprehensive income (loss)		18,139			2,698		4,283			(6,394	)		18,726
Total comprehensive income (loss) attributable to noncontrolling interests		–			–		(47	)		634			587

Comprehensive income (loss) attributable to AIG	$	18,139		$	2,698	$	4,330		$	(7,028	)	$	18,139

Year Ended December 31, 2010
Net income (loss)	$	10,058		$	1,664	$	23,647		$	(23,084	)	$	12,285
Other comprehensive income (loss)		2,782			3,258		2,270			(5,347	)		2,963

Comprehensive income (loss)		12,840			4,922		25,917			(28,431	)		15,248
Total comprehensive income attributable to noncontrolling interests		–			–		590			1,818			2,408

Comprehensive income (loss) attributable to AIG	$	12,840		$	4,922	$	25,327		$	(30,249	)	$	12,840

Condensed Consolidating Statement of Cash Flows

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



Year Ended December 31, 2012
Net cash (used in) provided by operating activities – continuing operations		(825	)		2,682			(1,109	)		748
Net cash provided by operating activities – discontinued operations		–			–			2,928			2,928

Net cash (used in) provided by operating activities	$	(825	)	$	2,682		$	1,819		$	3,676

Cash flows from investing activities:
Sales of investments		16,874			–			84,025			100,899
Purchase of investments		(4,406	)		–			(70,222	)		(74,628	)
Loans to subsidiaries – net		5,126			–			(5,126	)		–
Contributions to subsidiaries – net		(152	)		–			152			–
Net change in restricted cash		(377	)		–			1,072			695
Net change in short-term investments		(2,029	)		–			(6,129	)		(8,158	)
Other, net		259			–			(785	)		(526	)

Net cash provided by investing activities – continuing operations		15,295			–			2,987			18,282
Net cash (used in) investing activities – discontinued operations		–			–			(1,670	)		(1,670	)

Net cash provided by investing activities		15,295			–			1,317			16,612

Cash flows from financing activities:
Issuance of long-term debt		3,754			–			1,090			4,844
Repayments of long-term debt		(3,238	)		–			(4,038	)		(7,276	)
Purchase of Common Stock		(13,000	)		–			–			(13,000	)
Intercompany loans – net		(2,032	)		(2,622	)		4,654			–
Other, net		(49	)		–			(4,951	)		(5,000	)

Net cash (used in) financing activities – continuing operations		(14,565	)		(2,622	)		(3,245	)		(20,432	)
Net cash (used in) financing activities – discontinued operations		–			–			(132	)		(132	)

Net cash (used in) financing activities		(14,565	)		(2,622	)		(3,377	)		(20,564	)

Effect of exchange rate changes on cash		–			–			16			16

Change in cash		(95	)		60			(225	)		(260	)
Cash at beginning of period		176			13			1,285			1,474
Reclassification to assets held for sale		–			–			(63	)		(63	)

Cash at end of period	$	81		$	73		$	997		$	1,151



Year Ended December 31, 2011
Net cash (used in) provided by operating activities – continuing operations	$	(5,600	)	$	1,277		$	(1,933	)	$	(6,256	)
Net cash provided by operating activities – discontinued operations		–			–			6,175			6,175

Net cash (used in) provided by operating activities		(5,600	)		1,277			4,242			(81	)

Cash flows from investing activities:
Sales of investments		2,565			–			82,134			84,699
Sales of divested businesses, net		1,075			–			(488	)		587
Purchase of investments		(19	)		–			(100,471	)		(100,490	)
Loans to subsidiaries – net		3,757			–			(3,757	)		–
Contributions to subsidiaries – net*		(15,973	)		(2	)		15,975			–
Net change in restricted cash		1,945			–			25,257			27,202
Net change in short-term investments		(7,130	)		–			25,929			18,799
Other, net*		1,543			–			(1,363	)		180

Net cash (used in) provided by investing activities – continuing operations		(12,237	)		(2	)		43,216			30,977
Net cash provided by investing activities – discontinued operations		–			–			5,471			5,471

Net cash (used in) provided by investing activities		(12,237	)		(2	)		48,687			36,448

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



Cash flows from financing activities:
FRBNY credit facility repayments		(14,622	)		–			–			(14,622	)
Issuance of long-term debt		2,135			–			1,055			3,190
Repayments of long-term debt		(6,181	)		–			(3,305	)		(9,486	)
Proceeds from drawdown on the Department of the Treasury Commitment*		20,292			–			–			20,292
Issuance of common stock		5,055			–			–			5,055
Intercompany loans – net		11,519			(1,262	)		(10,257	)		–
Purchase of common stock		(70	)		–			–			(70	)
Other, net*		(164	)		–			(35,325	)		(35,489	)

Net cash (used in) provided by financing activities – continuing operations		17,964			(1,262	)		(47,832	)		(31,130	)
Net cash (used in) financing activities – discontinued operations		–			–			(5,796	)		(5,796	)

Net cash (used in) provided by financing activities		17,964			(1,262	)		(53,628	)		(36,926	)

Effect of exchange rate changes on cash		–			–			29			29

Change in cash		127			13			(670	)		(530	)
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	$	176		$	13		$	1,285		$	1,474



Year Ended December 31, 2010
Net cash (used in) provided by operating activities – continuing operations	$	(1,942	)	$	(141	)	$	8,244		$	6,161
Net cash provided by operating activities – discontinued operations		–			–			10,436			10,436

Net cash (used in) provided by operating activities		(1,942	)		(141	)		18,680			16,597

Cash flows from investing activities:
Sales of investments		3,997			–			86,869			90,866
Sales of divested businesses, net		278			–			21,482			21,760
Purchase of investments		(55	)		–			(92,780	)		(92,835	)
Loans to subsidiaries – net		5,703			–			(5,703	)		–
Contributions to subsidiaries – net*		(2,574	)		–			2,574			–
Net change in restricted cash		(183	)		–			(26,843	)		(27,026	)
Net change in short-term investments		(4,291	)		–			1,845			(2,446	)
Other, net*		(300	)		–			133			(167	)

Net cash (used in) provided by investing activities – continuing operations		2,575			–			(12,423	)		(9,848	)
Net cash (used in) investing activities – discontinued operations		–			–			(64	)		(64	)

Net cash (used in) provided by investing activities		2,575			–			(12,487	)		(9,912	)

Cash flows from financing activities:
FRBNY credit facility repayments		(19,110	)		–			(4,068	)		(23,178	)
FRBNY credit facility borrowings		19,900			–			–			19,900
Issuance of long-term debt		1,996			–			1,346			3,342
Repayments of long-term debt		(3,681	)		(500	)		(3,805	)		(7,986	)
Proceeds from drawdown on the Department of the Treasury Commitment*		2,199			–			–			2,199
Intercompany loans – net		(1,777	)		639			1,138			–
Other, net*		(168	)		–			(1,126	)		(1,294	)

Net cash (used in) provided by financing activities – continuing operations		(641	)		139			(6,515	)		(7,017	)
Net cash (used in) financing activities – discontinued operations		–			–			(2,244	)		(2,244	)

Net cash (used in) provided by financing activities		(641	)		139			(8,759	)		(9,261	)

Effect of exchange rate changes on cash		–			–			39			39

Change in cash		(8	)		(2	)		(2,527	)		(2,537	)
Cash at beginning of period		57			2			4,341			4,400
Change in cash of businesses held for sale		–			–			(305	)		(305	)

Cash at end of period	$	49		$	–		$	1,509		$	1,558

* Includes activities related to the Recapitalization. See Note 17 herein.

Supplementary Disclosure of Cash Flow Information

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



Cash (paid) received during the Year Ended December 31, 2012 for:
Interest:
Third party	$	(2,089	)	$	(128	)	$	(1,820	)	$	(4,037	)
Intercompany		(133	)		(56	)		189			–
Taxes:
Income tax authorities	$	(7	)	$	–		$	(440	)	$	(447	)
Intercompany		230			(41	)		(189	)		–

Cash (paid) received during the Year Ended December 31, 2011 for:
Interest:
Third party*	$	(6,909	)	$	(128	)	$	(1,948	)	$	(8,985	)
Intercompany		(311	)		(169	)		480			–
Taxes:
Income tax authorities	$	13		$	–		$	(729	)	$	(716	)
Intercompany		(335	)		1			334			–

Cash (paid) received during the Year Ended December 31, 2010 for:
Interest:
Third party	$	(2,493	)	$	(166	)	$	(2,507	)	$	(5,166	)
Intercompany		(12	)		(222	)		234			–
Taxes:
Income tax authorities	$	(32	)	$	–		$	(970	)	$	(1,002	)
Intercompany		859			–			(859	)		–

* 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




Year Ended December 31, (in millions)	2012		2011		2010

Intercompany non-cash financing and investing activities:
Capital contributions
to subsidiaries through the forgiveness of loans	$	–	$	–	$	2,510
in the form of bond available for sale securities		4,078		–		–
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		1,364
Exchange of intercompany payable with loan payable		–		–		469
Investment assets received through reduction of intercompany loan receivable		–		–		468
Paydown of FRBNY Credit Facility by subsidiary		–		–		4,068
Other capital contributions – net		579		523		346

- 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 (Details) (USD $) In Billions, except Per Share data, unless otherwise specified	0 Months Ended			12 Months Ended
	Jan. 02, 2010	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Minimum item	Dec. 31, 2012 Maximum
Recapitalization
Number of Countries in which the entity operates				130
Common stock, par value (in dollars per share)		$ 2.50	$ 2.50
Percentage ownership of voting rights of a variable interest entities				20.00%	50.00%
Amount of income taxes reclassified from accumulated other comprehensive income to additional paid in capital	$ 1.3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Earning pattern of a quota share reinsurance contract	24 months
Short-term investments
Maximum term of original maturity to classify instruments as short-term investments	1 year
Premiums and other receivables
Allowance for doubtful accounts on premiums and other receivables	$ 619	$ 484

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Other assets
Deferred bonus interest and deferred sales inducement assets	$ 517	$ 803
Amortization expense associated with deferred bonus interest and deferred sales inducement assets	$ 162	$ 239	$ 146
Buildings \| Maximum
Real estate and other fixed assets
Estimated useful life	40 years
Furniture and equipment \| Maximum
Real estate and other fixed assets
Estimated useful life	10 years
Software Development \| Maximum
Real estate and other fixed assets
Estimated useful life	5 years

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012 item	Dec. 31, 2011
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Number of steps involved in process of impairment test	2
Goodwill
Goodwill - gross	$ 4,850	$ 4,810
Accumulated impairments	(3,477)	(3,477)
Net goodwill	1,373	1,333
Increase (decrease) due to:
Acquisition	119	26
Other		14
Goodwill impairment included in discontinued operations	(23)
Goodwill - gross	4,946	4,850
Accumulated impairments	(3,477)	(3,477)
Net goodwill	1,469	1,373
AIG Property Casualty
Goodwill
Goodwill - gross	2,546	2,529
Accumulated impairments	(1,196)	(1,196)
Net goodwill	1,350	1,333
Increase (decrease) due to:
Acquisition	119	3
Other		14
Goodwill - gross	2,665	2,546
Accumulated impairments	(1,196)	(1,196)
Net goodwill	1,469	1,350
Aircraft Leasing
Goodwill
Goodwill - gross	15
Net goodwill	15
Increase (decrease) due to:
Acquisition		15
Goodwill impairment included in discontinued operations	(15)
Goodwill - gross		15
Net goodwill		15
Other
Goodwill
Goodwill - gross	2,289	2,281
Accumulated impairments	(2,281)	(2,281)
Net goodwill	8
Increase (decrease) due to:
Acquisition		8
Goodwill impairment included in discontinued operations	(8)
Goodwill - gross	2,281	2,289
Accumulated impairments	(2,281)	(2,281)
Net goodwill		$ 8

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Assets:
Deferred income taxes	$ 17,466	$ 19,615
Deferred policy acquisition costs	8,182	8,937	9,431
Other assets	10,399	11,663
Total assets	548,633	553,054
AIG shareholders' equity:
Retained Earnings	14,176	10,774
Accumulated other comprehensive income (loss)	12,574	6,481
Total AIG shareholders' equity	98,002	101,538
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts
Assets:
Deferred income taxes		19,615
Deferred policy acquisition costs		8,937
Other assets		11,663
Total assets		553,054
AIG shareholders' equity:
Retained Earnings		10,774
Accumulated other comprehensive income (loss)		6,481
Total AIG shareholders' equity		101,538
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts \| As Previously Reported
Assets:
Deferred income taxes		17,897
Deferred policy acquisition costs		14,026
Other assets		11,705
Total assets		556,467
AIG shareholders' equity:
Retained Earnings		14,332
Accumulated other comprehensive income (loss)		6,336
Total AIG shareholders' equity		104,951
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts \| Effect of Change
Assets:
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 5) (USD $)	3 Months Ended								12 Months Ended			3 Months Ended		12 Months Ended				3 Months Ended	12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2010 ALICO	Dec. 31, 2010 AIA	Dec. 31, 2011 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts	Dec. 31, 2010 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts	Dec. 31, 2011 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts As Previously Reported	Dec. 31, 2010 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts As Previously Reported	Dec. 31, 2011 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts Effect of Change	Dec. 31, 2011 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts Effect of Change	Dec. 31, 2010 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts Effect of Change
Statement of Operations:
Total net realized capital gains (losses)									$ 929,000,000	$ 701,000,000	$ (716,000,000)			$ 701,000,000	$ (716,000,000)	$ 681,000,000	$ (727,000,000)		$ 20,000,000	$ 11,000,000
Total revenues	15,854,000,000	16,505,000,000	16,006,000,000	17,291,000,000	16,376,000,000	11,606,000,000	15,547,000,000	16,283,000,000	65,656,000,000	59,812,000,000	72,829,000,000			59,812,000,000	72,829,000,000	59,792,000,000	72,818,000,000		20,000,000	11,000,000
Interest credited to policyholder account balances									4,362,000,000	4,467,000,000	4,487,000,000			4,467,000,000	4,487,000,000	4,446,000,000	4,480,000,000		21,000,000	7,000,000
Amortization of deferred acquisition costs									5,709,000,000	5,486,000,000	5,821,000,000			5,486,000,000	5,821,000,000	8,019,000,000	9,134,000,000		(2,533,000,000)	(3,313,000,000)
Other acquisition and other insurance expenses									9,235,000,000	8,458,000,000	10,163,000,000			8,458,000,000	10,163,000,000	6,091,000,000	6,775,000,000		2,367,000,000	3,388,000,000
Net (gain) loss on sale of properties and divested businesses									2,000,000	74,000,000	(19,566,000,000)			74,000,000	(19,566,000,000)	74,000,000	(17,767,000,000)			(1,799,000,000)
Total benefits, claims and expenses									56,334,000,000	59,696,000,000	52,582,000,000			59,696,000,000	52,582,000,000	59,840,000,000	54,301,000,000		(144,000,000)	(1,719,000,000)
Income (loss) from continuing operations before income tax expense (benefit)	629,000,000	2,558,000,000	1,669,000,000	4,466,000,000	2,771,000,000	(2,938,000,000)	1,711,000,000	(1,428,000,000)	9,322,000,000	116,000,000	20,247,000,000			116,000,000	20,247,000,000	(48,000,000)	18,517,000,000		164,000,000	1,730,000,000
Income tax expense (benefit)									1,570,000,000	(19,424,000,000)	6,993,000,000			(19,424,000,000)	6,993,000,000	(17,696,000,000)	6,116,000,000		(1,728,000,000)	877,000,000
Income (Loss) from Continuing Operations									7,752,000,000	19,540,000,000	13,254,000,000			19,540,000,000	13,254,000,000	17,648,000,000	12,401,000,000		1,892,000,000	853,000,000
Income (loss) from discontinued operations, net of income tax expense (benefit)	(4,332,000,000)	37,000,000	179,000,000	64,000,000	94,000,000	(1,052,000,000)	41,000,000	2,707,000,000	(4,052,000,000)	1,790,000,000	(969,000,000)			1,790,000,000	(969,000,000)	858,000,000	(2,388,000,000)		932,000,000	1,419,000,000
Net income (loss)	(3,949,000,000)	1,861,000,000	2,339,000,000	3,449,000,000	21,602,000,000	(3,826,000,000)	2,053,000,000	1,501,000,000	3,700,000,000	21,330,000,000	12,285,000,000			21,330,000,000	12,285,000,000	18,506,000,000	10,013,000,000		2,824,000,000	2,272,000,000
Net income (loss) attributable to AIG	(3,958,000,000)	1,856,000,000	2,332,000,000	3,208,000,000	21,479,000,000	(3,990,000,000)	1,836,000,000	1,297,000,000	3,438,000,000	20,622,000,000	10,058,000,000			20,622,000,000	10,058,000,000	17,798,000,000	7,786,000,000		2,824,000,000	2,272,000,000
Net income (loss) attributable to AIG common shareholders									3,438,000,000	19,810,000,000	2,046,000,000			19,810,000,000	2,046,000,000	16,986,000,000	1,583,000,000		2,824,000,000	463,000,000
Basic and diluted:
Income (loss) from continuing operations - basic (in dollars per share)	$ 0.25	$ 1.11	$ 1.23	$ 1.68	$ 11.26	$ (1.55)	$ 0.98	$ (1.42)	$ 4.44	$ 10.03	$ 16.50			$ 10.03	$ 16.50	$ 8.98	$ 15.23		$ 1.05	$ 1.27
Income (loss) from discontinued operations - basic (in dollars per share)	$ (2.93)	$ 0.02	$ 0.1	$ 0.03	$ 0.05	$ (0.55)	$ 0.02	$ 1.73	$ (2.40)	$ 0.98	$ (1.52)			$ 0.98	$ (1.52)	$ 0.46	$ (3.63)		$ 0.52	$ 2.11
Income (loss) from continuing operations - diluted (in dollars per share)	$ 0.25	$ 1.11	$ 1.23	$ 1.68	$ 11.26	$ (1.55)	$ 0.98	$ (1.42)	$ 4.44	$ 10.03	$ 16.50			$ 10.03	$ 16.50	$ 8.98	$ 15.23		$ 1.05	$ 1.27
Income (loss) from discontinued operations - diluted (in dollars per share)	$ (2.93)	$ 0.02	$ 0.1	$ 0.03	$ 0.05	$ (0.55)	$ 0.02	$ 1.73	$ (2.40)	$ 0.98	$ (1.52)			$ 0.98	$ (1.52)	$ 0.46	$ (3.63)		$ 0.52	$ 2.11
Reclassification of certain derivative activity																140,000,000	783,000,000
Adjustment to the deferred tax valuation allowance	116,000,000	205,000,000	1,239,000,000	347,000,000	19,252,000,000	(905,000,000)	564,000,000	(604,000,000)	2,100,000,000									1,800,000,000
Tax impact of gain on sale of ordinary shares													1,000,000,000
After-tax gain on sale of business												$ 1,600,000,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 6) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash flows from operating activities:
Net income (loss)	$ (3,949)	$ 1,861	$ 2,339	$ 3,449	$ 21,602	$ (3,826)	$ 2,053	$ 1,501	$ 3,700	$ 21,330	$ 12,285
Income (loss) from discontinued operations	4,332	(37)	(179)	(64)	(94)	1,052	(41)	(2,707)	4,052	(1,790)	969
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gain) loss on sale of properties and divested businesses									2	74	(19,566)
Unrealized (gains) losses in earnings - net									(6,107)	(957)	(1,529)
Depreciation and other amortization									5,307	5,424	5,977
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs									(5,613)	(5,429)	(5,933)
Current and deferred income taxes - net									1,122	(20,061)	6,052
Total adjustments									(7,004)	(25,796)	(7,093)
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts
Cash flows from operating activities:
Net income (loss)										21,330	12,285
Income (loss) from discontinued operations										(1,790)	969
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gain) loss on sale of properties and divested businesses										74	(19,566)
Unrealized (gains) losses in earnings - net										(957)	(1,529)
Depreciation and other amortization										5,424	5,977
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs										(5,429)	(5,933)
Current and deferred income taxes - net										(20,061)	6,052
Total adjustments										(25,796)	(7,093)
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts \| As Previously Reported
Cash flows from operating activities:
Net income (loss)										18,506	10,013
Income (loss) from discontinued operations										(858)	2,388
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gain) loss on sale of properties and divested businesses										74	(17,767)
Unrealized (gains) losses in earnings - net										(937)	(1,509)
Depreciation and other amortization										7,935	8,488
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs										(7,796)	(8,300)
Current and deferred income taxes - net										(18,333)	7,780
Total adjustments										(23,904)	(5,201)
Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts \| Effect of Change
Cash flows from operating activities:
Net income (loss)										2,824	2,272
Income (loss) from discontinued operations										(932)	(1,419)
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gain) loss on sale of properties and divested businesses											(1,799)
Unrealized (gains) losses in earnings - net										(20)	(20)
Depreciation and other amortization										(2,511)	(2,511)
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs										2,367	2,367
Current and deferred income taxes - net										(1,728)	(1,728)
Total adjustments										$ (1,892)	$ (1,892)

SEGMENT INFORMATION (Details) (USD $)	3 Months Ended								12 Months Ended
SEGMENT INFORMATION (Details) (USD $)	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012 segment	Dec. 31, 2011	Dec. 31, 2010
Segment results
Number of reportable segments									2
Total revenues	$ 15,854,000,000	$ 16,505,000,000	$ 16,006,000,000	$ 17,291,000,000	$ 16,376,000,000	$ 11,606,000,000	$ 15,547,000,000	$ 16,283,000,000	$ 65,656,000,000	$ 59,812,000,000	$ 72,829,000,000
Other-than-temporary impairment charges									1,167,000,000	1,280,000,000	3,039,000,000
Net (gain) loss on sale of properties and divested businesses	2,000,000				(2,000,000)	2,000,000	2,000,000	72,000,000	2,000,000	74,000,000	(19,566,000,000)
Interest expense									2,319,000,000	2,444,000,000	6,742,000,000
Depreciation and amortization									5,307,000,000	5,424,000,000	5,977,000,000
Pre-tax Income from continuing operations	629,000,000	2,558,000,000	1,669,000,000	4,466,000,000	2,771,000,000	(2,938,000,000)	1,711,000,000	(1,428,000,000)	9,322,000,000	116,000,000	20,247,000,000
Year-end identifiable assets	548,633,000,000				553,054,000,000				548,633,000,000	553,054,000,000
Capital expenditures									1,072,000,000	1,568,000,000
Claims and claims adjustment expenses incurred									36,339,000,000	37,917,000,000	45,879,000,000
AIG Property Casualty
Segment results
Number of operating segments									2
Claims and claims adjustment expenses incurred									25,785,000,000	27,949,000,000	27,867,000,000
Commercial Insurance
Segment results
Total revenues									23,609,000,000	25,016,000,000	24,371,000,000
Interest expense									5,000,000	3,000,000	1,000,000
Depreciation and amortization									2,735,000,000	2,864,000,000	2,911,000,000
Pre-tax Income from continuing operations									904,000,000	1,339,000,000	305,000,000
Claims and claims adjustment expenses incurred									16,696,000,000	18,332,000,000	18,814,000,000
Underwriting expenses									6,009,000,000	5,345,000,000	5,252,000,000
Consumer Insurance
Segment results
Total revenues									14,403,000,000	14,109,000,000	11,580,000,000
Interest expense									4,000,000	4,000,000
Depreciation and amortization									2,121,000,000	1,836,000,000	1,509,000,000
Pre-tax Income from continuing operations									292,000,000	(44,000,000)	185,000,000
Claims and claims adjustment expenses incurred									8,498,000,000	8,900,000,000	6,745,000,000
Underwriting expenses									5,613,000,000	5,253,000,000	4,650,000,000
Other
Segment results
Total revenues									1,769,000,000	1,597,000,000	1,256,000,000
Other-than-temporary impairment charges									378,000,000	274,000,000	577,000,000
Net (gain) loss on sale of properties and divested businesses											(669,000,000)
Interest expense									1,000,000
Depreciation and amortization									(1,000,000)		2,000,000
Pre-tax Income from continuing operations									641,000,000	525,000,000	(583,000,000)
Claims and claims adjustment expenses incurred									591,000,000	717,000,000	2,308,000,000
Underwriting expenses									466,000,000	272,000,000	200,000,000
Total AIG Property Casualty
Segment results
Total revenues									39,781,000,000	40,722,000,000	37,207,000,000
Other-than-temporary impairment charges									378,000,000	274,000,000	577,000,000
Net (gain) loss on sale of properties and divested businesses											(669,000,000)
Interest expense									10,000,000	7,000,000	1,000,000
Depreciation and amortization									4,855,000,000	4,700,000,000	4,422,000,000
Pre-tax Income from continuing operations									1,837,000,000	1,820,000,000	(93,000,000)
Year-end identifiable assets	178,733,000,000				177,892,000,000				178,733,000,000	177,892,000,000
Capital expenditures									321,000,000	234,000,000
Claims and claims adjustment expenses incurred									25,785,000,000	27,949,000,000	27,867,000,000
Underwriting expenses									12,088,000,000	10,870,000,000	10,102,000,000
AIG Life and Retirement
Segment results
Number of operating segments									2
Claims and claims adjustment expenses incurred									9,977,000,000	9,132,000,000	8,754,000,000
Life Insurance
Segment results
Total revenues									9,509,000,000	8,282,000,000	8,334,000,000
Other-than-temporary impairment charges									162,000,000	223,000,000	409,000,000
Depreciation and amortization									322,000,000	301,000,000	433,000,000
Pre-tax Income from continuing operations									1,966,000,000	1,387,000,000	1,441,000,000
Year-end identifiable assets	105,441,000,000				90,446,000,000				105,441,000,000	90,446,000,000
Capital expenditures									48,000,000	42,000,000
Life Insurance \| Insurance-oriented products
Segment results
Total revenues									5,985,000,000	5,813,000,000	5,992,000,000
Life Insurance \| Retirement savings products
Segment results
Total revenues									3,524,000,000	2,469,000,000	2,335,000,000
Life Insurance \| Asset management revenues
Segment results
Total revenues											7,000,000
Retirement Services
Segment results
Total revenues									7,258,000,000	7,033,000,000	6,413,000,000
Other-than-temporary impairment charges									562,000,000	754,000,000	1,549,000,000
Depreciation and amortization									(109,000,000)	390,000,000	189,000,000
Pre-tax Income from continuing operations									1,814,000,000	1,569,000,000	1,260,000,000
Year-end identifiable assets	177,002,000,000				177,627,000,000				177,002,000,000	177,627,000,000
Capital expenditures									12,000,000	33,000,000
Retirement Services \| Retirement savings products
Segment results
Total revenues									6,410,000,000	6,006,000,000	6,150,000,000
Retirement Services \| Asset management revenues
Segment results
Total revenues									848,000,000	1,027,000,000	263,000,000
AIG Life and Retirement, consolidation and elimination
Segment results
Year-end identifiable assets	(6,769,000,000)				(9,610,000,000)				(6,769,000,000)	(9,610,000,000)
Total AIG Life and Retirement
Segment results
Total revenues									16,767,000,000	15,315,000,000	14,747,000,000
Other-than-temporary impairment charges									724,000,000	977,000,000	1,958,000,000
Depreciation and amortization									213,000,000	691,000,000	622,000,000
Pre-tax Income from continuing operations									3,780,000,000	2,956,000,000	2,701,000,000
Year-end identifiable assets	275,674,000,000				258,463,000,000				275,674,000,000	258,463,000,000
Capital expenditures									60,000,000	75,000,000
Other Operations
Segment results
Total revenues									9,974,000,000	4,079,000,000	21,405,000,000
Other-than-temporary impairment charges									65,000,000	29,000,000	504,000,000
Net (gain) loss on sale of properties and divested businesses									2,000,000	74,000,000	(18,897,000,000)
Interest expense									2,340,000,000	2,490,000,000	6,881,000,000
Depreciation and amortization									241,000,000	33,000,000	933,000,000
Pre-tax Income from continuing operations									3,899,000,000	(4,703,000,000)	17,611,000,000
Year-end identifiable assets	191,112,000,000				229,618,000,000				191,112,000,000	229,618,000,000
Capital expenditures									691,000,000	1,259,000,000
Amortization of prepaid commitment asset											3,500,000,000
Claims and claims adjustment expenses incurred									(82,000,000)	2,000,000	39,000,000
Mortgage Guaranty
Segment results
Total revenues									867,000,000	944,000,000	1,168,000,000
Depreciation and amortization									44,000,000	44,000,000	43,000,000
Pre-tax Income from continuing operations									15,000,000	(77,000,000)	397,000,000
Year-end identifiable assets	5,270,000,000				5,395,000,000				5,270,000,000	5,395,000,000
Capital expenditures									11,000,000	37,000,000
Global Capital Markets
Segment results
Total revenues									745,000,000	266,000,000	532,000,000
Other-than-temporary impairment charges											2,000,000
Interest expense											3,000,000
Depreciation and amortization											4,000,000
Pre-tax Income from continuing operations									553,000,000	(7,000,000)	193,000,000
Year-end identifiable assets	7,050,000,000				12,620,000,000				7,050,000,000	12,620,000,000
Direct Investment Book
Segment results
Total revenues									2,024,000,000	1,004,000,000	1,499,000,000
Other-than-temporary impairment charges									60,000,000	25,000,000	356,000,000
Interest expense									369,000,000	367,000,000	382,000,000
Depreciation and amortization									(121,000,000)	(218,000,000)	(317,000,000)
Pre-tax Income from continuing operations									1,632,000,000	622,000,000	1,242,000,000
Year-end identifiable assets	28,528,000,000				31,172,000,000				28,528,000,000	31,172,000,000
Retained Interests
Segment results
Total revenues									4,957,000,000	486,000,000	1,819,000,000
Pre-tax Income from continuing operations									4,957,000,000	486,000,000	1,819,000,000
Year-end identifiable assets					15,086,000,000					15,086,000,000
Corporate and Other
Segment results
Total revenues									1,429,000,000	1,415,000,000	2,631,000,000
Other-than-temporary impairment charges									5,000,000	4,000,000	30,000,000
Net (gain) loss on sale of properties and divested businesses									2,000,000	74,000,000	(18,897,000,000)
Interest expense									1,998,000,000	2,143,000,000	6,551,000,000
Depreciation and amortization									318,000,000	207,000,000	342,000,000
Pre-tax Income from continuing operations									(3,262,000,000)	(5,727,000,000)	11,436,000,000
Year-end identifiable assets	87,021,000,000				99,085,000,000				87,021,000,000	99,085,000,000
Capital expenditures									680,000,000	618,000,000
Divested Businesses
Segment results
Total revenues											13,811,000,000
Other-than-temporary impairment charges											116,000,000
Interest expense											4,000,000
Depreciation and amortization											861,000,000
Pre-tax Income from continuing operations											2,435,000,000
Other Operations, consolidation and eliminations
Segment results
Total revenues									(48,000,000)	(36,000,000)	(55,000,000)
Interest expense									(27,000,000)	(20,000,000)	(59,000,000)
Pre-tax Income from continuing operations									4,000,000		89,000,000
Year-end identifiable assets	23,431,000,000				27,153,000,000				23,431,000,000	27,153,000,000
Aircraft Leasing
Segment results
Year-end identifiable assets	39,812,000,000				39,107,000,000				39,812,000,000	39,107,000,000
Capital expenditures										604,000,000
Consolidation and Eliminations
Segment results
Total revenues									(866,000,000)	(304,000,000)	(530,000,000)
Interest expense									(31,000,000)	(53,000,000)	(140,000,000)
Depreciation and amortization									(2,000,000)
Pre-tax Income from continuing operations									(194,000,000)	43,000,000	28,000,000
Year-end identifiable assets	$ (96,886,000,000)				$ (112,919,000,000)				$ (96,886,000,000)	$ (112,919,000,000)

SEGMENT INFORMATION (Details 2) (USD $) In Millions, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Operations and long-lived assets by geographical area
Total revenues	$ 15,854	$ 16,505	$ 16,006	$ 17,291	$ 16,376	$ 11,606	$ 15,547	$ 16,283	$ 65,656	$ 59,812	$ 72,829
Real estate and other fixed assets, net of accumulated depreciation	2,213				2,307				2,213	2,307	2,845
United States
Operations and long-lived assets by geographical area
Total revenues									46,171	40,002	40,232
Real estate and other fixed assets, net of accumulated depreciation	1,391				1,330				1,391	1,330	1,896
Asia
Operations and long-lived assets by geographical area
Total revenues									7,635	6,834	19,084
Real estate and other fixed assets, net of accumulated depreciation	516				591				516	591	557
Other Foreign
Operations and long-lived assets by geographical area
Total revenues									11,850	12,976	13,513
Real estate and other fixed assets, net of accumulated depreciation	$ 306				$ 386				$ 306	$ 386	$ 392

- Definition

Amount, net of accumulated depreciation, depletion and amortization, of long-lived physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, furniture and fixtures, and computer equipment.

+ References+ Details

DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Details) (AIA Group Limited (AIA), USD $) In Billions, except Share data, unless otherwise specified	0 Months Ended				12 Months Ended
	Dec. 20, 2012	Sep. 11, 2012	Mar. 07, 2012	Oct. 29, 2010	Dec. 31, 2012	Dec. 31, 2010	Dec. 31, 2011
AIA Group Limited (AIA)
AIA initial public offering
Ordinary shares issued through IPO				8,080,000,000
Gross proceeds from ordinary shares issued through IPO				$ 20.5
Percentage of voting interest owned				33.00%
Pre-tax gain (loss) on deconsolidation						18.1
Gross proceeds from subsequent shares sold	6.5	2.0	6.0		14.5
Fair value of the company's retained interest							$ 12.4
Subsequent sale of ordinary shares	1,648,903,201	591,866,000	1,720,000,000		3,960,769,201

- Definition

+ References+ Details

- Definition

The cash inflow associated with the amount received from entity's first offering of stock to the public.

+ References+ Details

- Definition

The cash inflow associated with the sale of equity method investments, which are investments in joint ventures and entities in which the entity has an equity ownership interest normally of 20 to 50 percent and exercises significant influence.

+ References+ Details

DIVESTED BUSINESSES, HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS (Details 2) (USD $)	3 Months Ended								12 Months Ended				0 Months Ended	12 Months Ended				0 Months Ended		12 Months Ended	1 Months Ended	3 Months Ended	12 Months Ended	0 Months Ended		12 Months Ended		12 Months Ended	0 Months Ended				1 Months Ended	0 Months Ended
	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Sep. 30, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 09, 2012 International Lease Finance Corporation (ILFC)	Dec. 31, 2012 International Lease Finance Corporation (ILFC)	Dec. 31, 2012 Discontinued operations	Dec. 31, 2011 Discontinued operations	Dec. 31, 2010 Discontinued operations	Aug. 18, 2011 Nan Shan	Jan. 12, 2011 Nan Shan	Dec. 31, 2011 Nan Shan	Feb. 28, 2011 Star/Edison Sale	Sep. 30, 2010 Star/Edison Sale	Dec. 31, 2010 Star/Edison Sale	Nov. 30, 2010 AGF	Aug. 10, 2010 AGF	Dec. 31, 2010 AGF	Dec. 31, 2012 AGF	Dec. 31, 2010 ALICO	Nov. 01, 2010 ALICO MetLife Inc. (MetLife) ALICO SPV	Nov. 01, 2010 ALICO MetLife Inc. (MetLife) ALICO SPV Common Stock	Nov. 01, 2010 ALICO MetLife Inc. (MetLife) ALICO SPV Participating convertible preferred stock	Nov. 01, 2010 ALICO MetLife Inc. (MetLife) ALICO SPV Equity Units	Jan. 31, 2011 ALICO MetLife Inc. (MetLife) ALICO SPV Equity Units	Mar. 07, 2010 ALICO and Delaware American Life Insurance Company MetLife Inc. (MetLife) Definitive agreement	Nov. 01, 2010 ALICO and Delaware American Life Insurance Company MetLife Inc. (MetLife) Closing	Dec. 31, 2010 ALICO and Delaware American Life Insurance Company MetLife Inc. (MetLife) Closing	Dec. 31, 2012 Assets held-for-sale
Assets:
Equity securities	$ 3,212,000,000				$ 3,624,000,000				$ 3,212,000,000	$ 3,624,000,000																											$ 1,000,000
Mortgage and other loans receivable, net																																					117,000,000
Flight equipment primarily under operating leases, net of accumulated depreciation					35,539,000,000					35,539,000,000																											34,468,000,000
Short-term investments	28,808,000,000				22,572,000,000				28,808,000,000	22,572,000,000																											1,861,000,000
Cash	1,151,000,000				1,474,000,000				1,151,000,000	1,474,000,000	1,558,000,000	4,400,000,000																									63,000,000
Premiums and other receivables, net of allowance	13,989,000,000				14,721,000,000				13,989,000,000	14,721,000,000																											308,000,000
Other assets	10,399,000,000				11,663,000,000				10,399,000,000	11,663,000,000																											1,864,000,000
Assets of businesses held for sale																																					38,682,000,000
Less: Loss Accrual																																					(6,717,000,000)
Total assets held for sale	31,965,000,000								31,965,000,000																												31,965,000,000
Liabilities:
Other liabilities	32,114,000,000				28,248,000,000				32,114,000,000	28,248,000,000																											3,043,000,000
Other long-term debt	48,500,000,000				75,253,000,000				48,500,000,000	75,253,000,000																											24,323,000,000
Total liabilities held for sale	27,366,000,000								27,366,000,000																												27,366,000,000
Percentage of common stock agreed to be sold													80.10%
Additional percentage of common stock under purchase option													9.90%
Additional consideration for common stock under purchase option													522,500,000
Period for exercising option to purchase additional common stock													10 days
Percentage of ownership interest retained													19.90%
Percentage of ownership interest retained on exercise of purchase option													10.00%
Percentage of reduction in ownership interest													1.00%
Economic interest (as a percent)																									80.00%
Voting interest (as a percent)																			97.57%						84.00%
Consideration in cash													4,200,000,000					2,150,000,000			4,800,000,000				125,000,000				7,200,000,000					6,800,000,000
Pre-tax gain (loss) reflected in Income (loss) from discontinued operations in the Income Statement															(6,733,000,000)	2,338,000,000	5,389,000,000			(1,000,000,000)	3,500,000,000					(1,700,000,000)		7,900,000,000
Amount of debt assumed by purchaser as part of total consideration received																					600,000,000
Goodwill impairment charge														23,000,000								1,300,000,000	1,300,000,000					3,300,000,000
Voting interest after sale (as a percent)																								16.00%
Carrying value shown as a cost method investment in Other invested assets																											30,000,000
Retained economic interest after sale (as a percent)																										20.00%
Aggregate stated value of consideration																																3,200,000,000		15,500,000,000	16,200,000,000
Common and preferred stock trading, at fair value	25,246,000,000				24,489,000,000				25,246,000,000	24,489,000,000																										6,500,000,000
Upward price adjustment in proceeds																													400,000,000
Number of shares received																														78,239,712	6,857,000	40,000,000
Number of shares receivable on participating convertible preferred stock on conversion																															68,570,000
Repayment of a portion of the liquidation preference and accrued return of the ALICO SPV																																	6,100,000,000
Revenues:
Premiums									38,011,000,000	38,990,000,000	45,319,000,000					5,012,000,000	18,296,000,000
Net investment income									20,343,000,000	14,755,000,000	20,934,000,000					1,632,000,000	6,924,000,000
Net realized capital gains (losses)									929,000,000	701,000,000	(716,000,000)				1,000,000	834,000,000	158,000,000
Aircraft leasing revenue															4,504,000,000	4,508,000,000	4,749,000,000
Other income									3,582,000,000	2,661,000,000	4,582,000,000				(18,000,000)	(48,000,000)	1,697,000,000
Total revenues	15,854,000,000	16,505,000,000	16,006,000,000	17,291,000,000	16,376,000,000	11,606,000,000	15,547,000,000	16,283,000,000	65,656,000,000	59,812,000,000	72,829,000,000				4,487,000,000	11,938,000,000	31,824,000,000
Benefits, claims and expenses, excluding Aircraft leasing expenses															1,596,000,000	7,910,000,000	30,458,000,000
Aircraft leasing expenses															2,587,000,000	3,876,000,000	4,050,000,000
Interest expense allocation									2,319,000,000	2,444,000,000	6,742,000,000					2,000,000	75,000,000
Income (loss) from discontinued operations															304,000,000	150,000,000	(2,759,000,000)
Gain (loss) on sale															(6,733,000,000)	2,338,000,000	5,389,000,000			(1,000,000,000)	3,500,000,000					(1,700,000,000)		7,900,000,000
Income (loss) from discontinued operations, before tax expense (benefit)									(6,429,000,000)	2,488,000,000	2,630,000,000				(6,429,000,000)	2,488,000,000	2,630,000,000
Income tax expense (benefit)									(2,377,000,000)	698,000,000	3,599,000,000				(2,377,000,000)	698,000,000	3,599,000,000
Income (loss) from discontinued operations, net of income tax	(4,332,000,000)	37,000,000	179,000,000	64,000,000	94,000,000	(1,052,000,000)	41,000,000	2,707,000,000	(4,052,000,000)	1,790,000,000	(969,000,000)			4,400,000,000	(4,052,000,000)	1,790,000,000	(969,000,000)
Amount to be returned by the entity at the closing of the transaction in connection with the termination of intercompany arrangements														$ 1,100,000,000

BUSINESS COMBINATIONS (Details) (Fuji, AIG Property Casualty) In Millions, except Per Share data, unless otherwise specified	1 Months Ended			12 Months Ended
	Mar. 31, 2011 USD ($)	Mar. 31, 2011 JPY (¥)	Mar. 31, 2010 USD ($)	Dec. 31, 2012	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)
Business Acquisition
Business acquisition, amount of additional voting shares			$ 145
Ownership interest before purchase of additional shares			41.70%
Ownership interest after purchase of additional shares			54.80%	100.00%
Recognized bargain purchase gain on business acquisition						332
Cash tender offer, number of common shares tendered	305	305
Cash tender offer, price per share (in currency per share)	$ 1.76	¥ 146.00
Cash tender offer, purchase price	538
Cash tender offer, purchase price					560
Acquisition of noncontrolling interest					$ 489

FAIR VALUE MEASUREMENTS (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Change in accounting estimate
DAC amortization	$ 5,709	$ 5,486	$ 5,821
Embedded Policy Derivatives
Change in accounting estimate
Reduction in the fair value of the embedded derivative liabilities			336
DAC amortization			$ 173

- Definition

Amount of deferred policy acquisition costs charged to expense in the period, generally in proportion to related revenue earned, estimated gross profits, or over the customer relationship or some other period.

+ 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 Accounting Standards Codification

-Topic 944

-SubTopic 225

-Section S99

-Paragraph 1

-Subparagraph (SX 210.7-04.7(a))

-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 04

-Paragraph 7

-Article 7

Reference 4: 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 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 18

-Article 12

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 30

-Section 50

-Paragraph 1

-Subparagraph (c)

-URI http://asc.fasb.org/extlink&oid=6967983&loc=d3e11264-158415

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 30

-Section 35

-Paragraph 11

-URI http://asc.fasb.org/extlink&oid=7473040&loc=d3e10157-158409

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 944

-SubTopic 20

-Section 45

-Paragraph 2

-Subparagraph (d)

-URI http://asc.fasb.org/extlink&oid=6480726&loc=d3e6691-158385

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 97

-Paragraph 22, 23, 24, 25, 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 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher AICPA

-Name Statement of Position (SOP)

-Number 95-1

-Paragraph 19, 20, 21, 22, 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

Net Increase or Decrease in the fair value of the embedded derivative or group of embedded derivatives included in earnings in the period.

+ References

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 10

-Section 50

-Paragraph 4C

-URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 133

-Paragraph 12-16, 44A, 44B

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

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 133

-Paragraph 44A

-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 133

-Paragraph 44A, 44B

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

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 133

-Paragraph 44B

-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

FAIR VALUE MEASUREMENTS (Details 3) (USD $)			12 Months Ended
FAIR VALUE MEASUREMENTS (Details 3) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)	Dec. 31, 2012 Recurring Basis U.S. government and government sponsored entities	Dec. 31, 2012 Recurring Basis Non-U.S. government	Dec. 31, 2012 Recurring Basis Level 1	Dec. 31, 2011 Recurring Basis Level 1	Dec. 31, 2011 Recurring Basis Level 1 AIA Group Limited (AIA)	Dec. 31, 2012 Recurring Basis Level 1 Interest rate contracts	Dec. 31, 2011 Recurring Basis Level 1 Interest rate contracts	Dec. 31, 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	Dec. 31, 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	Dec. 31, 2012 Recurring Basis Level 1 Non-U.S. government	Dec. 31, 2011 Recurring Basis Level 1 Non-U.S. government	Dec. 31, 2012 Recurring Basis Level 1 Common Stock	Dec. 31, 2011 Recurring Basis Level 1 Common Stock	Dec. 31, 2012 Recurring Basis Level 1 Mutual Funds	Dec. 31, 2011 Recurring Basis Level 1 Mutual Funds	Dec. 31, 2012 Recurring Basis Level 2	Dec. 31, 2011 Recurring Basis Level 2	Dec. 31, 2012 Recurring Basis Level 2 Interest rate contracts	Dec. 31, 2011 Recurring Basis Level 2 Interest rate contracts	Dec. 31, 2012 Recurring Basis Level 2 Foreign exchange contracts	Dec. 31, 2011 Recurring Basis Level 2 Foreign exchange contracts	Dec. 31, 2012 Recurring Basis Level 2 Equity contracts	Dec. 31, 2011 Recurring Basis Level 2 Equity contracts	Dec. 31, 2012 Recurring Basis Level 2 Commodity contracts	Dec. 31, 2011 Recurring Basis Level 2 Commodity contracts	Dec. 31, 2011 Recurring Basis Level 2 Credit contracts	Dec. 31, 2012 Recurring Basis Level 2 Other contracts	Dec. 31, 2011 Recurring Basis Level 2 Other contracts	Dec. 31, 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	Dec. 31, 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	Dec. 31, 2012 Recurring Basis Level 2 Non-U.S. government	Dec. 31, 2011 Recurring Basis Level 2 Non-U.S. government	Dec. 31, 2012 Recurring Basis Level 2 Corporate debt	Dec. 31, 2011 Recurring Basis Level 2 Corporate debt	Dec. 31, 2012 Recurring Basis Level 2 Residential mortgage backed securities (RMBS)	Dec. 31, 2011 Recurring Basis Level 2 Residential mortgage backed securities (RMBS)	Dec. 31, 2012 Recurring Basis Level 2 Commercial mortgage-backed securities (CMBS)	Dec. 31, 2011 Recurring Basis Level 2 Commercial mortgage-backed securities (CMBS)	Dec. 31, 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)	Dec. 31, 2012 Recurring Basis Level 2 Common Stock	Dec. 31, 2011 Recurring Basis Level 2 Common Stock	Dec. 31, 2012 Recurring Basis Level 2 Preferred Stock	Dec. 31, 2011 Recurring Basis Level 2 Preferred Stock	Dec. 31, 2012 Recurring Basis Level 2 Mutual Funds	Dec. 31, 2011 Recurring Basis Level 2 Mutual Funds	Dec. 31, 2012 Recurring Basis Level 3	Dec. 31, 2011 Recurring Basis Level 3	Dec. 31, 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	Dec. 31, 2012 Recurring Basis Level 3 Equity contracts	Dec. 31, 2011 Recurring Basis Level 3 Equity contracts	Dec. 31, 2012 Recurring Basis Level 3 Commodity contracts	Dec. 31, 2011 Recurring Basis Level 3 Commodity contracts	Dec. 31, 2012 Recurring Basis Level 3 Credit contracts	Dec. 31, 2011 Recurring Basis Level 3 Credit contracts	Dec. 31, 2012 Recurring Basis Level 3 Other contracts	Dec. 31, 2011 Recurring Basis Level 3 Other contracts	Dec. 31, 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	Dec. 31, 2012 Recurring Basis Level 3 Non-U.S. government	Dec. 31, 2011 Recurring Basis Level 3 Non-U.S. government	Dec. 31, 2012 Recurring Basis Level 3 Corporate debt	Dec. 31, 2011 Recurring Basis Level 3 Corporate debt	Dec. 31, 2012 Recurring Basis Level 3 Residential mortgage backed securities (RMBS)	Dec. 31, 2011 Recurring Basis Level 3 Residential mortgage backed securities (RMBS)	Dec. 31, 2012 Recurring Basis Level 3 Commercial mortgage-backed securities (CMBS)	Dec. 31, 2011 Recurring Basis Level 3 Commercial mortgage-backed securities (CMBS)	Dec. 31, 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)	Dec. 31, 2012 Recurring Basis Level 3 Common Stock	Dec. 31, 2011 Recurring Basis Level 3 Common Stock	Dec. 31, 2012 Recurring Basis Level 3 Preferred Stock	Dec. 31, 2011 Recurring Basis Level 3 Preferred Stock	Dec. 31, 2012 Recurring Basis Counterparty Netting	Dec. 31, 2011 Recurring Basis Counterparty Netting	Dec. 31, 2012 Recurring Basis Counterparty Netting Counterparty netting and cash collateral	Dec. 31, 2011 Recurring Basis Counterparty Netting Counterparty netting and cash collateral	Dec. 31, 2012 Recurring Basis Cash Collateral	Dec. 31, 2011 Recurring Basis Cash Collateral	Dec. 31, 2012 Recurring Basis Cash Collateral Counterparty netting and cash collateral	Dec. 31, 2011 Recurring Basis Cash Collateral Counterparty netting and cash collateral	Dec. 31, 2012 Recurring Basis Total Fair Value	Dec. 31, 2011 Recurring Basis Total Fair Value	Dec. 31, 2012 Recurring Basis Total Fair Value Interest rate contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Interest rate contracts	Dec. 31, 2012 Recurring Basis Total Fair Value Foreign exchange contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Foreign exchange contracts	Dec. 31, 2012 Recurring Basis Total Fair Value Equity contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Equity contracts	Dec. 31, 2012 Recurring Basis Total Fair Value Commodity contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Commodity contracts	Dec. 31, 2012 Recurring Basis Total Fair Value Credit contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Credit contracts	Dec. 31, 2012 Recurring Basis Total Fair Value Other contracts	Dec. 31, 2011 Recurring Basis Total Fair Value Other contracts	Dec. 31, 2012 Recurring Basis Total Fair Value Counterparty netting and cash collateral	Dec. 31, 2011 Recurring Basis Total Fair Value Counterparty netting and cash collateral	Dec. 31, 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	Dec. 31, 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	Dec. 31, 2012 Recurring Basis Total Fair Value Non-U.S. government	Dec. 31, 2011 Recurring Basis Total Fair Value Non-U.S. government	Dec. 31, 2012 Recurring Basis Total Fair Value Corporate debt	Dec. 31, 2011 Recurring Basis Total Fair Value Corporate debt	Dec. 31, 2012 Recurring Basis Total Fair Value Residential mortgage backed securities (RMBS)	Dec. 31, 2011 Recurring Basis Total Fair Value Residential mortgage backed securities (RMBS)	Dec. 31, 2012 Recurring Basis Total Fair Value Commercial mortgage-backed securities (CMBS)	Dec. 31, 2011 Recurring Basis Total Fair Value Commercial mortgage-backed securities (CMBS)	Dec. 31, 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)	Dec. 31, 2012 Recurring Basis Total Fair Value Common Stock	Dec. 31, 2011 Recurring Basis Total Fair Value Common Stock	Dec. 31, 2012 Recurring Basis Total Fair Value Preferred Stock	Dec. 31, 2011 Recurring Basis Total Fair Value Preferred Stock	Dec. 31, 2012 Recurring Basis Total Fair Value Mutual Funds	Dec. 31, 2011 Recurring Basis Total Fair Value Mutual Funds
FAIR VALUE, ASSETS AND LIABILITIES MEASURED ON A RECURRING BASIS
Reference rate for variable interest rate			LIBOR
Percentage of securities for which market prices were provided			59.00%
Fair Value, Assets Measured on Recurring Basis
Bonds available for sale						$ 1,004,000,000	$ 433,000,000								$ 174,000,000	$ 1,004,000,000	$ 259,000,000					$ 244,803,000,000	$ 241,592,000,000												$ 3,483,000,000	$ 5,904,000,000	$ 34,681,000,000	$ 36,538,000,000	$ 25,782,000,000	$ 25,467,000,000	$ 149,625,000,000	$ 142,883,000,000	$ 22,730,000,000	$ 23,727,000,000	$ 5,010,000,000	$ 3,991,000,000	$ 3,492,000,000	$ 3,082,000,000							$ 24,152,000,000	$ 21,956,000,000												$ 1,024,000,000	$ 960,000,000	$ 14,000,000	$ 9,000,000	$ 1,487,000,000	$ 1,935,000,000	$ 11,662,000,000	$ 10,877,000,000	$ 5,124,000,000	$ 3,955,000,000	$ 4,841,000,000	$ 4,220,000,000													$ 269,959,000,000	$ 263,981,000,000															$ 3,483,000,000	$ 6,078,000,000	$ 35,705,000,000	$ 37,498,000,000	$ 26,800,000,000	$ 25,735,000,000	$ 151,112,000,000	$ 144,818,000,000	$ 34,392,000,000	$ 34,604,000,000	$ 10,134,000,000	$ 7,946,000,000	$ 8,333,000,000	$ 7,302,000,000
Bond trading securities, at fair value	24,584,000,000	24,364,000,000				266,000,000	100,000,000							266,000,000	100,000,000							14,574,000,000	14,968,000,000												6,528,000,000	6,362,000,000		257,000,000	2,000,000	35,000,000	1,320,000,000	809,000,000	1,331,000,000	1,345,000,000	1,424,000,000	1,283,000,000	3,969,000,000	4,877,000,000							9,744,000,000	9,296,000,000																	7,000,000	396,000,000	303,000,000	812,000,000	554,000,000	8,536,000,000	8,432,000,000													24,584,000,000	24,364,000,000															6,794,000,000	6,462,000,000		257,000,000	2,000,000	35,000,000	1,320,000,000	816,000,000	1,727,000,000	1,648,000,000	2,236,000,000	1,837,000,000	12,505,000,000	13,309,000,000
Equity securities available for sale	3,212,000,000	3,624,000,000				3,085,000,000	3,349,000,000											3,002,000,000	3,294,000,000	83,000,000	55,000,000	59,000,000	119,000,000																										3,000,000	70,000,000	34,000,000	44,000,000	22,000,000	5,000,000	68,000,000	156,000,000																								24,000,000	57,000,000	44,000,000	99,000,000									3,212,000,000	3,624,000,000																													3,029,000,000	3,421,000,000	78,000,000	143,000,000	105,000,000	60,000,000
Equity securities trading	662,000,000	125,000,000				578,000,000	43,000,000															84,000,000	82,000,000																																																																					662,000,000	125,000,000
Mortgage and other loans receivable																						134,000,000	106,000,000																																	1,000,000																																				134,000,000	107,000,000
Other invested assets	7,056,000,000	20,876,000,000				125,000,000	12,549,000,000	12,400,000,000														1,542,000,000	1,709,000,000																																5,389,000,000	6,618,000,000																																				7,056,000,000	20,876,000,000
Derivative assets, at fair value	3,671,000,000	4,499,000,000				106,000,000	123,000,000		2,000,000	2,000,000	104,000,000	92,000,000	29,000,000									5,832,000,000	8,123,000,000	5,521,000,000	7,251,000,000	104,000,000	143,000,000	63,000,000	133,000,000	144,000,000	134,000,000			462,000,000																					1,109,000,000	1,414,000,000	956,000,000	1,033,000,000	2,000,000	54,000,000	38,000,000	1,000,000	2,000,000	60,000,000	89,000,000	38,000,000	250,000,000																	(2,467,000,000)	(3,660,000,000)	(2,467,000,000)	(3,660,000,000)	(909,000,000)	(1,501,000,000)	(909,000,000)	(1,501,000,000)	3,671,000,000	4,499,000,000	6,479,000,000	8,286,000,000	104,000,000	145,000,000	221,000,000	263,000,000	145,000,000	136,000,000	60,000,000	89,000,000	38,000,000	741,000,000	(3,376,000,000)	(5,161,000,000)
Short-term investments, portion measured at fair value	8,056,000,000	5,913,000,000				285,000,000	2,309,000,000															7,771,000,000	3,604,000,000																																																																					8,056,000,000	5,913,000,000
Separate account assets, at fair value	57,337,000,000	51,388,000,000				54,430,000,000	48,502,000,000															2,907,000,000	2,886,000,000																																																																					57,337,000,000	51,388,000,000
Other assets	696,000,000	0																				696,000,000																																																																						696,000,000
Fair value assets measured on recurring basis, total						59,879,000,000	67,408,000,000															278,402,000,000	273,189,000,000																																40,462,000,000	39,441,000,000																												(2,467,000,000)	(3,660,000,000)			(909,000,000)	(1,501,000,000)			375,367,000,000	374,877,000,000
Fair Value, Liabilities Measured on Recurring Basis
Policyholder contract deposits, portion measured at fair value	1,257,000,000	918,000,000																																																					1,257,000,000	918,000,000																																				1,257,000,000	918,000,000
Derivative liabilities, at fair value	4,061,000,000	4,733,000,000																				6,022,000,000	7,342,000,000	5,582,000,000	6,661,000,000	174,000,000	178,000,000	114,000,000	198,000,000	146,000,000	146,000,000	4,000,000	6,000,000	155,000,000																					2,482,000,000	3,837,000,000	224,000,000	248,000,000		7,000,000	10,000,000			2,051,000,000	3,362,000,000	200,000,000	217,000,000																	(2,467,000,000)	(3,660,000,000)	(2,467,000,000)	(3,660,000,000)	(1,976,000,000)	(2,786,000,000)	(1,976,000,000)	(2,786,000,000)	4,061,000,000	4,733,000,000	5,806,000,000	6,909,000,000	174,000,000	178,000,000	121,000,000	208,000,000	146,000,000	146,000,000	2,051,000,000	3,366,000,000	206,000,000	372,000,000	(4,443,000,000)	(6,446,000,000)
Long-term debt, portion measured at fair value	8,055,000,000	10,766,000,000																				7,711,000,000	10,258,000,000																																344,000,000	508,000,000																																				8,055,000,000	10,766,000,000
Other liabilities	1,080,000,000	907,000,000				30,000,000	193,000,000															1,050,000,000	714,000,000																																																																					1,080,000,000	907,000,000
Fair value liabilities measured on recurring basis, total						30,000,000	193,000,000															14,783,000,000	18,314,000,000																																4,083,000,000	5,263,000,000																												(2,467,000,000)	(3,660,000,000)			(1,976,000,000)	(2,786,000,000)			14,453,000,000	17,324,000,000
Securities collateral posted for derivative transactions																																																																																								1,900,000,000	1,800,000,000
Securities collateral received not reflected in balance sheet																																																																																								299,000,000	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																																																							2,000,000,000	3,200,000,000
Assets transferred from Level 1 to Level 2				$ 888,000,000	$ 464,000,000

FAIR VALUE MEASUREMENTS (Details 4) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	$ 38,027	$ 34,656
Net Realized and Unrealized Gains (Losses) Included in Income	4,499	(642)
Accumulated Other Comprehensive Income (Loss)	3,586	923
Purchases, Sales, Issues and Settlements, Net	(4,131)	2,503
Gross Transfers in, assets	4,606	5,214
Gross Transfers out, assets	(7,234)	(4,627)
Balance End of Period	39,353	38,027
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	2,676	(615)
Liabilities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(3,849)	(4,544)
Net Realized and Unrealized Gains (Losses) Included in Income	(120)	(151)
Accumulated Other Comprehensive Income (loss)	(167)	(51)
Purchases, Sales, Issues and Settlements-Net	871	790
Gross Transfers in, liabilities	(133)	(26)
Gross Transfers out, liabilities	424	133
Balance at the End of the Period	(2,974)	(3,849)
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	(869)	663
Policyholder contract deposits
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(918)	(445)
Net Realized and Unrealized Gains (Losses) Included in Income	(275)	(429)
Accumulated Other Comprehensive Income (loss)	(72)
Purchases, Sales, Issues and Settlements-Net	8	(44)
Balance at the End of the Period	(1,257)	(918)
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	112	508
Derivative liabilities, net
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(2,423)	(3,117)
Net Realized and Unrealized Gains (Losses) Included in Income	566	338
Accumulated Other Comprehensive Income (loss)	(18)	(51)
Purchases, Sales, Issues and Settlements-Net	621	279
Gross Transfers in, liabilities	(119)	(5)
Gross Transfers out, liabilities		133
Balance at the End of the Period	(1,373)	(2,423)
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	(1,086)	290
Interest rate contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	785	732
Net Realized and Unrealized Gains (Losses) Included in Income	(11)	46
Purchases, Sales, Issues and Settlements-Net	(42)	(2)
Gross Transfers in, liabilities		30
Gross Transfers out, liabilities		(21)
Balance at the End of the Period	732	785
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	56	(90)
Foreign exchange contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	2	16
Net Realized and Unrealized Gains (Losses) Included in Income		(11)
Purchases, Sales, Issues and Settlements-Net	(2)	(5)
Gross Transfers in, liabilities		2
Balance at the End of the Period		2
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities		1
Equity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	28	22
Net Realized and Unrealized Gains (Losses) Included in Income	10	(16)
Purchases, Sales, Issues and Settlements-Net	12	41
Gross Transfers in, liabilities	(3)	(7)
Gross Transfers out, liabilities		(12)
Balance at the End of the Period	47	28
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	(10)	(15)
Commodity contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	2	23
Net Realized and Unrealized Gains (Losses) Included in Income	5	1
Purchases, Sales, Issues and Settlements-Net	(6)	(22)
Balance at the End of the Period	1	2
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	(6)	(1)
Credit contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(3,273)	(3,798)
Net Realized and Unrealized Gains (Losses) Included in Income	638	332
Purchases, Sales, Issues and Settlements-Net	644	193
Balance at the End of the Period	(1,991)	(3,273)
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	(1,172)	493
Other contracts
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	33	(112)
Net Realized and Unrealized Gains (Losses) Included in Income	(76)	(14)
Accumulated Other Comprehensive Income (loss)	(18)	(51)
Purchases, Sales, Issues and Settlements-Net	15	74
Gross Transfers in, liabilities	(116)	(30)
Gross Transfers out, liabilities		166
Balance at the End of the Period	(162)	33
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	46	(98)
Long-term debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance at the Beginning of the Period	(508)	(982)
Net Realized and Unrealized Gains (Losses) Included in Income	(411)	(60)
Accumulated Other Comprehensive Income (loss)	(77)
Purchases, Sales, Issues and Settlements-Net	242	555
Gross Transfers in, liabilities	(14)	(21)
Gross Transfers out, liabilities	424
Balance at the End of the Period	(344)	(508)
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, liabilities	105	(135)
Other long-term debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Net Realized and Unrealized Gains (Losses) Included in Income	(411)	(60)
Purchases, Sales, Issues and Settlements-Net	242	555
Bonds available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	21,956	17,088
Net Realized and Unrealized Gains (Losses) Included in Income	726	(64)
Accumulated Other Comprehensive Income (Loss)	3,352	756
Purchases, Sales, Issues and Settlements, Net	439	3,479
Gross Transfers in, assets	2,425	4,576
Gross Transfers out, assets	(4,746)	(3,879)
Balance End of Period	24,152	21,956
Bonds available for sale \| Obligations of states, municipalities and political subdivisions
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	960	609
Net Realized and Unrealized Gains (Losses) Included in Income	48	2
Accumulated Other Comprehensive Income (Loss)	12	112
Purchases, Sales, Issues and Settlements, Net	84	296
Gross Transfers in, assets	70	17
Gross Transfers out, assets	(150)	(76)
Balance End of Period	1,024	960
Bonds available for sale \| Non-U.S. government
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	9	5
Net Realized and Unrealized Gains (Losses) Included in Income	1
Accumulated Other Comprehensive Income (Loss)	(1)
Purchases, Sales, Issues and Settlements, Net	1	5
Gross Transfers in, assets	4
Gross Transfers out, assets		(1)
Balance End of Period	14	9
Bonds available for sale \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	1,935	2,262
Net Realized and Unrealized Gains (Losses) Included in Income	(44)	11
Accumulated Other Comprehensive Income (Loss)	145	(25)
Purchases, Sales, Issues and Settlements, Net	24	171
Gross Transfers in, assets	664	2,480
Gross Transfers out, assets	(1,237)	(2,964)
Balance End of Period	1,487	1,935
Bonds available for sale \| Residential mortgage backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	10,877	6,367
Net Realized and Unrealized Gains (Losses) Included in Income	522	(50)
Accumulated Other Comprehensive Income (Loss)	2,121	288
Purchases, Sales, Issues and Settlements, Net	(316)	3,232
Gross Transfers in, assets	952	1,093
Gross Transfers out, assets	(2,494)	(53)
Balance End of Period	11,662	10,877
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	3,955	3,604
Net Realized and Unrealized Gains (Losses) Included in Income	(135)	(100)
Accumulated Other Comprehensive Income (Loss)	786	239
Purchases, Sales, Issues and Settlements, Net	636	207
Gross Transfers in, assets	44	134
Gross Transfers out, assets	(162)	(129)
Balance End of Period	5,124	3,955
Bonds available for sale \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	4,220	4,241
Net Realized and Unrealized Gains (Losses) Included in Income	334	73
Accumulated Other Comprehensive Income (Loss)	289	142
Purchases, Sales, Issues and Settlements, Net	10	(432)
Gross Transfers in, assets	691	852
Gross Transfers out, assets	(703)	(656)
Balance End of Period	4,841	4,220
Bond trading securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	9,296	10,028
Net Realized and Unrealized Gains (Losses) Included in Income	3,829	(595)
Accumulated Other Comprehensive Income (Loss)	7
Purchases, Sales, Issues and Settlements, Net	(4,243)	(190)
Gross Transfers in, assets	960	358
Gross Transfers out, assets	(105)	(305)
Balance End of Period	9,744	9,296
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	2,676	(617)
Bond trading securities \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	7
Purchases, Sales, Issues and Settlements, Net	(7)	(11)
Gross Transfers in, assets		18
Balance End of Period		7
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		1
Bond trading securities \| Residential mortgage backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	303	91
Net Realized and Unrealized Gains (Losses) Included in Income	76	(27)
Accumulated Other Comprehensive Income (Loss)	2
Purchases, Sales, Issues and Settlements, Net	(109)	239
Gross Transfers in, assets	128
Gross Transfers out, assets	(4)
Balance End of Period	396	303
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	42	(28)
Bond trading securities \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	554	506
Net Realized and Unrealized Gains (Losses) Included in Income	70	92
Accumulated Other Comprehensive Income (Loss)	2
Purchases, Sales, Issues and Settlements, Net	(159)	(95)
Gross Transfers in, assets	446	292
Gross Transfers out, assets	(101)	(241)
Balance End of Period	812	554
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	87	87
Bond trading securities \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	8,432	9,431
Net Realized and Unrealized Gains (Losses) Included in Income	3,683	(660)
Accumulated Other Comprehensive Income (Loss)	3
Purchases, Sales, Issues and Settlements, Net	(3,968)	(323)
Gross Transfers in, assets	386	48
Gross Transfers out, assets		(64)
Balance End of Period	8,536	8,432
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets	2,547	(677)
Equity securities available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	156	125
Net Realized and Unrealized Gains (Losses) Included in Income	39	27
Accumulated Other Comprehensive Income (Loss)	(63)	28
Purchases, Sales, Issues and Settlements, Net	(69)	(47)
Gross Transfers in, assets	17	29
Gross Transfers out, assets	(12)	(6)
Balance End of Period	68	156
Equity securities available for sale \| Common Stock
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	57	61
Net Realized and Unrealized Gains (Losses) Included in Income	22	28
Accumulated Other Comprehensive Income (Loss)	(28)	(4)
Purchases, Sales, Issues and Settlements, Net	(33)	(40)
Gross Transfers in, assets	6	18
Gross Transfers out, assets		(6)
Balance End of Period	24	57
Equity securities available for sale \| Preferred Stock
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	99	64
Net Realized and Unrealized Gains (Losses) Included in Income	17	(1)
Accumulated Other Comprehensive Income (Loss)	(35)	32
Purchases, Sales, Issues and Settlements, Net	(36)	(1)
Gross Transfers in, assets	11	5
Gross Transfers out, assets	(12)
Balance End of Period	44	99
Equity securities available for sale \| Mutual Funds
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Purchases, Sales, Issues and Settlements, Net		(6)
Gross Transfers in, assets		6
Equity securities trading
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period		1
Purchases, Sales, Issues and Settlements, Net		(1)
Mortgage and other loans receivable
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	1
Purchases, Sales, Issues and Settlements, Net	(1)	1
Balance End of Period		1
Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation calculation
Balance Beginning of Period	6,618	7,414
Net Realized and Unrealized Gains (Losses) Included in Income	(95)	(10)
Accumulated Other Comprehensive Income (Loss)	290	139
Purchases, Sales, Issues and Settlements, Net	(257)	(739)
Gross Transfers in, assets	1,204	251
Gross Transfers out, assets	(2,371)	(437)
Balance End of Period	5,389	6,618
Changes in Unrealized Gains (Losses) on Instruments Held at End of Period, assets		$ 2

FAIR VALUE MEASUREMENTS (Details 5) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Net realized and unrealized gains and losses related to Level 3 items
Net realized and unrealized gains (losses) included in income, assets	$ 4,499	$ (642)
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	(275)	(499)
Net realized and unrealized gains (losses) included in other income, liabilities measured at Level 3		70
Net realized and unrealized gains (losses) included in income, liabilities	(275)	(429)
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	3	2
Net realized and unrealized gains (losses) included in net realized capital gains (losses), liabilities measured at Level 3	26	13
Net realized and unrealized gains (losses) included in other income, liabilities measured at Level 3	537	323
Net realized and unrealized gains (losses) included in income, liabilities	566	338
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	(411)	(60)
Net realized and unrealized gains (losses) included in income, liabilities	(411)	(60)
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	906	638
Net realized and unrealized gains (losses) included in net realized capital gains (losses), assets measured at Level 3	(395)	(717)
Net realized and unrealized gains (losses) included in other income, assets measured at Level 3	215	15
Net realized and unrealized gains (losses) included in income, assets	726	(64)
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	3,303	(634)
Net realized and unrealized gains (losses) included in net realized capital gains (losses), assets measured at Level 3		4
Net realized and unrealized gains (losses) included in other income, assets measured at Level 3	526	35
Net realized and unrealized gains (losses) included in income, assets	3,829	(595)
Equity securities
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), assets measured at Level 3	39	27
Net realized and unrealized gains (losses) included in income, assets	39	27
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	54	23
Net realized and unrealized gains (losses) included in net realized capital gains (losses), assets measured at Level 3	(210)	(84)
Net realized and unrealized gains (losses) included in other income, assets measured at Level 3	61	51
Net realized and unrealized gains (losses) included in income, assets	$ (95)	$ (10)

FAIR VALUE MEASUREMENTS (Details 6) (USD $)	12 Months Ended
FAIR VALUE MEASUREMENTS (Details 6) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, Sales, Issues and Settlements, Net, assets	$ (4,131,000,000)	$ 2,503,000,000
Securities purchased through FRBNY's auction of ML III assets	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	143,000,000
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.	92,000,000
Liabilities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, liabilities	11,000,000	43,000,000
Sales, liabilities	(27,000,000)	(70,000,000)
Settlements, liabilities	887,000,000	817,000,000
Purchases, Sales, Issues and Settlements, Net, liabilities	871,000,000	790,000,000
Policyholder contract deposits
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Sales, liabilities	(25,000,000)	(70,000,000)
Settlements, liabilities	33,000,000	26,000,000
Purchases, Sales, Issues and Settlements, Net, liabilities	8,000,000	(44,000,000)
Derivative liabilities, net
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, liabilities	11,000,000	43,000,000
Sales, liabilities	(2,000,000)
Settlements, liabilities	612,000,000	236,000,000
Purchases, Sales, Issues and Settlements, Net, liabilities	621,000,000	279,000,000
Other long-term debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, liabilities	242,000,000	555,000,000
Purchases, Sales, Issues and Settlements, Net, liabilities	242,000,000	555,000,000
Assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	13,904,000,000	8,850,000,000
Sales, assets	(1,670,000,000)	(1,112,000,000)
Settlements, assets	(16,365,000,000)	(5,235,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(4,131,000,000)	2,503,000,000
Bonds available for sale
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	5,330,000,000	7,275,000,000
Sales, assets	(1,342,000,000)	(273,000,000)
Settlements, assets	(3,549,000,000)	(3,523,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	439,000,000	3,479,000,000
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	477,000,000	305,000,000
Sales, assets	(219,000,000)	(4,000,000)
Settlements, assets	(174,000,000)	(5,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	84,000,000	296,000,000
Bonds available for sale \| Non-U.S. government
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	5,000,000	4,000,000
Sales, assets	(3,000,000)	(2,000,000)
Settlements, assets	(1,000,000)	3,000,000
Purchases, Sales, Issues and Settlements, Net, assets	1,000,000	5,000,000
Bonds available for sale \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	283,000,000	497,000,000
Sales, assets	(75,000,000)	(27,000,000)
Settlements, assets	(184,000,000)	(299,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	24,000,000	171,000,000
Bonds available for sale \| Residential mortgage backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	2,308,000,000	4,932,000,000
Sales, assets	(723,000,000)	(205,000,000)
Settlements, assets	(1,901,000,000)	(1,495,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(316,000,000)	3,232,000,000
Bonds available for sale \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	1,137,000,000	470,000,000
Sales, assets	(318,000,000)	(34,000,000)
Settlements, assets	(183,000,000)	(229,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	636,000,000	207,000,000
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	1,120,000,000	1,067,000,000
Sales, assets	(4,000,000)	(1,000,000)
Settlements, assets	(1,106,000,000)	(1,498,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	10,000,000	(432,000,000)
Bond trading securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	7,607,000,000	857,000,000
Sales, assets	(172,000,000)	(512,000,000)
Settlements, assets	(11,678,000,000)	(535,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(4,243,000,000)	(190,000,000)
Bond trading securities \| Corporate debt
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, assets	(7,000,000)	(11,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(7,000,000)	(11,000,000)
Bond trading securities \| Residential mortgage backed securities (RMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets		305,000,000
Sales, assets	(45,000,000)	(1,000,000)
Settlements, assets	(64,000,000)	(65,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(109,000,000)	239,000,000
Bond trading securities \| Commercial mortgage-backed securities (CMBS)
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	225,000,000	221,000,000
Sales, assets	(106,000,000)	(207,000,000)
Settlements, assets	(278,000,000)	(109,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(159,000,000)	(95,000,000)
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	7,382,000,000	331,000,000
Sales, assets	(21,000,000)	(304,000,000)
Settlements, assets	(11,329,000,000)	(350,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(3,968,000,000)	(323,000,000)
Equity securities
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	67,000,000
Sales, assets	(56,000,000)	(31,000,000)
Settlements, assets	(80,000,000)	(17,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	(69,000,000)	(48,000,000)
Mortgage and other loans receivable, net of allowance
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Settlements, assets	(1,000,000)	1,000,000
Purchases, Sales, Issues and Settlements, Net, assets	(1,000,000)	1,000,000
Other invested assets
Fair value assets and liabilities measured on recurring basis, unobservable input reconciliation
Purchases, assets	900,000,000	718,000,000
Sales, assets	(100,000,000)	(296,000,000)
Settlements, assets	(1,057,000,000)	(1,161,000,000)
Purchases, Sales, Issues and Settlements, Net, assets	$ (257,000,000)	$ (739,000,000)

FAIR VALUE MEASUREMENTS (Details 7) (Level 3, USD $)	12 Months Ended
FAIR VALUE MEASUREMENTS (Details 7) (Level 3, USD $)	Dec. 31, 2012
Corporate debt \| Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value	$ 775,000,000
Corporate debt \| Discounted cash flow \| Minimum
Fair value inputs, assets, quantitative information
Yield	0.08%
Corporate debt \| Discounted cash flow \| Maximum
Fair value inputs, assets, quantitative information
Yield	6.55%
Corporate debt \| Discounted cash flow \| Weighted-average
Fair value inputs, assets, quantitative information
Yield	3.31%
Residential mortgage backed securities \| Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value	10,650,000,000
Residential mortgage backed securities \| Discounted cash flow \| Minimum
Fair value inputs, assets, quantitative information
Yield	2.23%
Constant prepayment rate	0.00%
Loss severity	43.70%
Constant default rate	4.21%
Residential mortgage backed securities \| Discounted cash flow \| Maximum
Fair value inputs, assets, quantitative information
Yield	9.42%
Constant prepayment rate	10.76%
Loss severity	78.72%
Constant default rate	13.30%
Residential mortgage backed securities \| Discounted cash flow \| Weighted-average
Fair value inputs, assets, quantitative information
Yield	5.82%
Constant prepayment rate	5.03%
Loss severity	61.21%
Constant default rate	8.75%
Certain CDO/ABS \| Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value	7,844,000,000
Portion of total for which yield is the only input available	6,600,000,000
Certain CDO/ABS \| Discounted cash flow \| Minimum
Fair value inputs, assets, quantitative information
Yield	5.41%
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	10.67%
Constant prepayment rate	32.25%
Loss severity	29.38%
Constant default rate	4.05%
Certain CDO/ABS \| Discounted cash flow \| Weighted-average
Fair value inputs, assets, quantitative information
Yield	8.04%
Constant prepayment rate	11.82%
Loss severity	6.36%
Constant default rate	1.18%
Commercial mortgage backed securities \| Discounted cash flow
Fair value inputs, assets, quantitative information
Fair Value	3,251,000,000
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	19.95%
Commercial mortgage backed securities \| Discounted cash flow \| Weighted-average
Fair value inputs, assets, quantitative information
Yield	7.76%
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET)
Fair value inputs, assets, quantitative information
Fair Value	$ 1,205,000,000
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 3 months 7 days
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET) \| Maximum
Fair value inputs, assets, quantitative information
Recovery rates	63.00%
Diversity score	44
Weighted average life	9 years 1 month 10 days
CDO/ABS - Direct Investment book \| Binomial Expansion Technique (BET) \| Weighted-average
Fair value inputs, assets, quantitative information
Recovery rates	27.00%
Diversity score	13
Weighted average life	4 years 10 months 28 days

FAIR VALUE MEASUREMENTS (Details 8) (Level 3, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012
Policyholder contract deposits - GMWB
Significant unobservable inputs used for recurring fair value measurements
Fair value	$ 1,257
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	39.00%
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	$ 1,436
Derivative Liabilities - Credit contracts \| BET \| Minimum
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	3.00%
Diversity score	9
Weighted average life	5 years 1 month 6 days
Derivative Liabilities - Credit contracts \| BET \| Maximum
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	37.00%
Diversity score	38
Weighted average life	8 years 5 months 12 days
Derivative Liabilities - Credit contracts \| BET \| Weighted-average
Significant unobservable inputs used for recurring fair value measurements
Recovery rates	17.00%
Diversity score	14
Weighted average life	5 years 9 months

FAIR VALUE MEASUREMENTS (Details 9) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	$ 6,041	$ 6,873
Unfunded Commitments	875	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	41.00%
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	3.00%
Private equity funds:
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	3,233	4,100
Unfunded Commitments	873	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 Per Share or its equivalent	2,549	3,185
Unfunded Commitments	659	945
Non-U.S.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	179	165
Unfunded Commitments	25	57
Venture capital
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	163	316
Unfunded Commitments	16	39
Distressed
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	87	182
Unfunded Commitments	21	42
Other..
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	255	252
Unfunded Commitments	152	98
Hedge funds:
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	2,808	2,773
Unfunded Commitments	2	12
Hedge fund investments redeemable monthly (as a percent)	15.00%
Hedge fund investments redeemable quarterly (as a percent)	34.00%
Hedge fund investments redeemable semi-annually (as a percent)	28.00%
Hedge fund investments redeemable annually (as a percent)	23.00%
Hedge fund investments redemption notices of less than 90 days (as a percent)	69.00%
Percentage of hedge fund investments that cannot be redeemed, either in whole or in part	74.00%
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 Per Share or its equivalent	747	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 Per Share or its equivalent	1,091	927
Macro
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	238	173
Distressed.
INVESTMENTS IN CERTAIN ENTITIES CARRIED AT FAIR VALUE USING NET ASSET VALUE PER SHARE
Fair Value Using Net Asset Value Per Share or its equivalent	316	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 Per Share or its equivalent	$ 416	$ 627

FAIR VALUE MEASUREMENTS (Details 10) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	$ 6,931	$ 971	$ 1,818
Fair value option credit risk gains (losses) on liabilities	(641)	420	(779)
Segment Discontinued Operations
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	586	1,300	4,900
Fair Value Option \| Other long-term debt
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	(681)	(966)	(1,595)
Fair Value Option \| Other liabilities
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	(33)	(67)	(8)
Fair Value Option \| Policyholder contract deposits
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)			(320)
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)	47	11	53
Fair Value Option \| Bond and equity securities
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	2,339	1,273	2,060
Fair Value Option \| Trading - ML II Interest
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	246	42	513
Fair Value Option \| Trading - ML III Interest
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	2,888	(646)	1,792
Fair Value Option \| Retained interest in AIA
Fair Value, Option, Quantitative Disclosures
Fair Value Options Changes in Fair Value Gain (loss)	2,069	1,289	(638)
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)	$ 56	$ 35	$ (39)

FAIR VALUE MEASUREMENTS (Details 11) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Mortgage and other loans receivable, Fair Value	$ 134	$ 107
Long-term debt, Fair Value	8,055	10,766
Long-term debt, Outstanding Principal Amount	48,500	75,253
Fair Value Option
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Mortgage and other loans receivable, Fair Value	134	107
Mortgage and other loans receivable, Outstanding Principal Amount	141	150
Mortgage and other loans receivable, Difference	(7)	(43)
Long-term debt, Fair Value	8,055	10,766
Long-term debt, Outstanding Principal Amount	5,705	8,624
Long-term debt, Difference	$ 2,350	$ 2,142
Disclosure level, past due mortgage or other loans receivable for which the fair value option was elected, number of days past due threshold	90 days	90 days

- 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

FAIR VALUE MEASUREMENTS (Details 12) (Fair value on a non-recurring basis, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	$ 471	$ 2,353	$ 2,546
Investment real estate:
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges		18	604
Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	460	639	323
Aircraft
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges		1,693	1,614
Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Impairment Charges	11	3	5
Level 3
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	2,080	4,343
Level 3 \| Investment real estate:
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis		457
Level 3 \| Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	2,062	2,199
Level 3 \| Aircraft
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis		1,683
Level 3 \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	18	4
Total Fair Value
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	2,083	4,343
Total Fair Value \| Investment real estate:
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis		457
Total Fair Value \| Other investments
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	2,062	2,199
Total Fair Value \| Aircraft
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis		1,683
Total Fair Value \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	21	4
Level 2
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	3
Level 2 \| Other assets
FAIR VALUE, ASSETS MEASUREMENTS ON A NON-RECURRING BASIS
Assets at Fair Value, Non-Recurring Basis	$ 3

- 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 13) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Assets:
Mortgage and other loans receivable	$ 19,482	$ 19,489
Short-term investments	28,808	22,572
Cash	1,151	1,474	1,558	4,400
Liabilities:
Other liabilities	32,114	28,248
Long-term debt	48,500	75,253
Total Fair Value
Assets:
Mortgage and other loans receivable	20,219	20,494
Other invested assets	3,758	3,390
Short-term investments	20,752	16,657
Cash	1,151	1,474
Liabilities:
Policyholder contract deposits associated with investment-type contracts	124,105	122,125
Other liabilities	3,023	896
Long-term debt	45,891	61,295
Level 1
Assets:
Cash	1,151
Level 2
Assets:
Mortgage and other loans receivable	823
Other invested assets	237
Short-term investments	20,752
Liabilities:
Policyholder contract deposits associated with investment-type contracts	245
Other liabilities	2,205
Long-term debt	43,966
Level 3
Assets:
Mortgage and other loans receivable	19,396
Other invested assets	3,521
Liabilities:
Policyholder contract deposits associated with investment-type contracts	123,860
Other liabilities	818
Long-term debt	1,925
Carrying Value
Assets:
Mortgage and other loans receivable	19,348	19,382
Other invested assets	4,932	4,701
Short-term investments	20,752	16,659
Cash	1,151	1,474
Liabilities:
Policyholder contract deposits associated with investment-type contracts	105,979	106,950
Other liabilities	3,024	896
Long-term debt	$ 40,445	$ 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

+ 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 $)	12 Months Ended
INVESTMENTS (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Total, Amortized Cost or Cost	$ 247,789,000,000	$ 252,590,000,000
Total, Gross Unrealized Gains	26,815,000,000	20,026,000,000
Total, Gross Unrealized Losses	(1,433,000,000)	(5,011,000,000)
Total, fair value	273,171,000,000	267,605,000,000
Total, Other-Than-Temporary Impairments in AOCI	1,450,000,000	(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	246,149,000,000	250,770,000,000
Available-for-sale Securities, Gross Unrealized Gains	25,206,000,000	18,121,000,000
Available-for-sale Securities, Gross Unrealized Losses	(1,396,000,000)	(4,910,000,000)
Available for Sale Securities, fair value	269,959,000,000	263,981,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	1,450,000,000	(856,000,000)
Other details of available-for-sale securities
Available for sale securities not rated or rated below investment grade	29,600,000,000	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	3,161,000,000	5,661,000,000
Available-for-sale Securities, Gross Unrealized Gains	323,000,000	418,000,000
Available-for-sale Securities, Gross Unrealized Losses	(1,000,000)	(1,000,000)
Available for Sale Securities, fair value	3,483,000,000	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	33,042,000,000	35,017,000,000
Available-for-sale Securities, Gross Unrealized Gains	2,685,000,000	2,554,000,000
Available-for-sale Securities, Gross Unrealized Losses	(22,000,000)	(73,000,000)
Available for Sale Securities, fair value	35,705,000,000	37,498,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	2,000,000	(28,000,000)
Bonds available for sale \| Non-U.S. government
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	25,449,000,000	24,843,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,395,000,000	994,000,000
Available-for-sale Securities, Gross Unrealized Losses	(44,000,000)	(102,000,000)
Available for Sale Securities, fair value	26,800,000,000	25,735,000,000
Bonds available for sale \| Corporate debt
Reconciliation of amortized cost and fair value of available for sale securities and other invested assets carried at fair value
Available-for-sale Securities, Amortized Cost or Cost	135,728,000,000	134,699,000,000
Available-for-sale Securities, Gross Unrealized Gains	15,848,000,000	11,844,000,000
Available-for-sale Securities, Gross Unrealized Losses	(464,000,000)	(1,725,000,000)
Available for Sale Securities, fair value	151,112,000,000	144,818,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	115,000,000	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	48,769,000,000	50,550,000,000
Available-for-sale Securities, Gross Unrealized Gains	4,955,000,000	2,311,000,000
Available-for-sale Securities, Gross Unrealized Losses	(865,000,000)	(3,009,000,000)
Available for Sale Securities, fair value	52,859,000,000	49,852,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	1,333,000,000	(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	31,330,000,000	34,780,000,000
Available-for-sale Securities, Gross Unrealized Gains	3,379,000,000	1,387,000,000
Available-for-sale Securities, Gross Unrealized Losses	(317,000,000)	(1,563,000,000)
Available for Sale Securities, fair value	34,392,000,000	34,604,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	1,330,000,000	(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	9,699,000,000	8,449,000,000
Available-for-sale Securities, Gross Unrealized Gains	811,000,000	470,000,000
Available-for-sale Securities, Gross Unrealized Losses	(376,000,000)	(973,000,000)
Available for Sale Securities, fair value	10,134,000,000	7,946,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	(54,000,000)	(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	7,740,000,000	7,321,000,000
Available-for-sale Securities, Gross Unrealized Gains	765,000,000	454,000,000
Available-for-sale Securities, Gross Unrealized Losses	(172,000,000)	(473,000,000)
Available for Sale Securities, fair value	8,333,000,000	7,302,000,000
Available-for-sale Securities, Other-Than- Temporary Impairments in AOCI	57,000,000	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	1,640,000,000	1,820,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,609,000,000	1,905,000,000
Available-for-sale Securities, Gross Unrealized Losses	(37,000,000)	(101,000,000)
Available for Sale Securities, fair value	3,212,000,000	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	1,492,000,000	1,682,000,000
Available-for-sale Securities, Gross Unrealized Gains	1,574,000,000	1,839,000,000
Available-for-sale Securities, Gross Unrealized Losses	(37,000,000)	(100,000,000)
Available for Sale Securities, fair value	3,029,000,000	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	55,000,000	83,000,000
Available-for-sale Securities, Gross Unrealized Gains	23,000,000	60,000,000
Available for Sale Securities, fair value	78,000,000	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	93,000,000	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	$ 105,000,000	$ 60,000,000

INVESTMENTS (Details 2) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	$ 12,527	$ 37,024
Gross Unrealized Losses, less than 12 Months	308	2,056
Fair Value, 12 Months or More	8,569	14,554
Gross Unrealized Losses, 12 Months or More	1,125	2,955
Fair Value, total	21,096	51,578
Gross Unrealized Losses, total	1,433	5,011
Fixed maturity securities
Fair value and gross unrealized losses on AIG's available for sale securities
Number of individual fixed maturity securities in an unrealized loss position	3,637
Number of individual securities in continuous unrealized loss position for longer than twelve months	1,385
Bonds available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	12,277	36,408
Gross Unrealized Losses, less than 12 Months	272	1,955
Fair Value, 12 Months or More	8,551	14,554
Gross Unrealized Losses, 12 Months or More	1,124	2,955
Fair Value, total	20,828	50,962
Gross Unrealized Losses, total	1,396	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	153	142
Gross Unrealized Losses, less than 12 Months	1	1
Fair Value, total	153	142
Gross Unrealized Losses, total	1	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	692	174
Gross Unrealized Losses, less than 12 Months	11	1
Fair Value, 12 Months or More	114	669
Gross Unrealized Losses, 12 Months or More	11	72
Fair Value, total	806	843
Gross Unrealized Losses, total	22	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	1,555	3,992
Gross Unrealized Losses, less than 12 Months	19	67
Fair Value, 12 Months or More	442	424
Gross Unrealized Losses, 12 Months or More	25	35
Fair Value, total	1,997	4,416
Gross Unrealized Losses, total	44	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	8,483	18,099
Gross Unrealized Losses, less than 12 Months	201	937
Fair Value, 12 Months or More	3,229	5,907
Gross Unrealized Losses, 12 Months or More	263	788
Fair Value, total	11,712	24,006
Gross Unrealized Losses, total	464	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	597	10,624
Gross Unrealized Losses, less than 12 Months	28	714
Fair Value, 12 Months or More	1,661	4,148
Gross Unrealized Losses, 12 Months or More	289	849
Fair Value, total	2,258	14,772
Gross Unrealized Losses, total	317	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	406	1,697
Gross Unrealized Losses, less than 12 Months	11	185
Fair Value, 12 Months or More	1,595	1,724
Gross Unrealized Losses, 12 Months or More	365	788
Fair Value, total	2,001	3,421
Gross Unrealized Losses, total	376	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	391	1,680
Gross Unrealized Losses, less than 12 Months	1	50
Fair Value, 12 Months or More	1,510	1,682
Gross Unrealized Losses, 12 Months or More	171	423
Fair Value, total	1,901	3,362
Gross Unrealized Losses, total	172	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	198
Equity securities available for sale
Fair value and gross unrealized losses on AIG's available for sale securities
Fair Value, less than 12 Months	250	616
Gross Unrealized Losses, less than 12 Months	36	101
Fair Value, 12 Months or More	18
Gross Unrealized Losses, 12 Months or More	1
Fair Value, total	268	616
Gross Unrealized Losses, total	37	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	247	608
Gross Unrealized Losses, less than 12 Months	36	100
Fair Value, 12 Months or More	18
Gross Unrealized Losses, 12 Months or More	1
Fair Value, total	265	608
Gross Unrealized Losses, total	37	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	3	2
Gross Unrealized Losses, less than 12 Months		1
Fair Value, total	3	2
Gross Unrealized Losses, total		$ 1

INVESTMENTS (Details 3) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Fixed Maturity Securities in a Loss Position
Fixed Maturity Available-for-sale Securities by Contractual Maturity
Due in one year or less, Amortized Cost	$ 717
Due after one year through five years, Amortized Cost	3,239
Due after five years through ten years, Amortized Cost	4,641
Due after ten years, Amortized Cost	6,602
Mortgage-backed, asset-backed and collateralized, Amortized Cost	7,025
Fixed maturity available for sale in a loss position , Amortized Cost, Total	22,224
Due in one year or less, Fair Value	713
Due after one year through five years, Fair Value	3,162
Due after five years through ten years, Fair Value	4,510
Due after ten years, Fair Value	6,283
Mortgage-backed, asset-backed and collateralized, Fair Value	6,160
Fixed Maturity Available for Sale Securities, Fair Value, Total	20,828
Bonds available for sale
Fixed Maturity Available-for-sale Securities by Contractual Maturity
Due in one year or less, Amortized Cost	11,801
Due after one year through five years, Amortized Cost	51,646
Due after five years through ten years, Amortized Cost	72,091
Due after ten years, Amortized Cost	61,842
Mortgage-backed, asset-backed and collateralized, Amortized Cost	48,769
Fixed maturity available for sale in a loss position , Amortized Cost, Total	246,149	250,770
Due in one year or less, Fair Value	12,001
Due after one year through five years, Fair Value	54,918
Due after five years through ten years, Fair Value	79,531
Due after ten years, Fair Value	70,650
Mortgage-backed, asset-backed and collateralized, Fair Value	52,859
Fixed Maturity Available for Sale Securities, Fair Value, Total	$ 269,959

INVESTMENTS (Details 4) (USD $)	12 Months Ended
INVESTMENTS (Details 4) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Available for Sale Securities Disclosures
Gross Realized Gains	$ 3,293,000,000	$ 2,241,000,000	$ 2,949,000,000
Gross Realized Losses	202,000,000	164,000,000	378,000,000
Aggregate fair value of available for sale securities sold	40,300,000,000	44,000,000,000	56,000,000,000
Net realized capital gains (losses)	3,100,000,000	2,100,000,000	2,600,000,000
Fixed maturity securities
Available for Sale Securities Disclosures
Gross Realized Gains	2,778,000,000	2,042,000,000	2,138,000,000
Gross Realized Losses	171,000,000	129,000,000	292,000,000
Equity securities available for sale
Available for Sale Securities Disclosures
Gross Realized Gains	515,000,000	199,000,000	811,000,000
Gross Realized Losses	$ 31,000,000	$ 35,000,000	$ 86,000,000

INVESTMENTS (Details 5) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
TRADING SECURITIES
Trading Securities, Fair Value	$ 25,246	$ 24,489
Trading Securities, Percent of Total	100.00%	100.00%
U.S. Government agency backed ABS
TRADING SECURITIES
Trading Securities, Fair Value	900
Fixed maturity securities
TRADING SECURITIES
Trading Securities, Fair Value	24,584	24,364
Trading Securities, Percent of Total	98.00%	99.00%
Fixed maturity securities \| U.S. government and government sponsored entities
TRADING SECURITIES
Trading Securities, Fair Value	6,794	6,462
Trading Securities, Percent of Total	27.00%	26.00%
Fixed maturity securities \| Obligations of states, territories and political subdivisions
TRADING SECURITIES
Trading Securities, Fair Value		257
Trading Securities, Percent of Total		1.00%
Fixed maturity securities \| Non-U.S. government
TRADING SECURITIES
Trading Securities, Fair Value	2	35
Fixed maturity securities \| Corporate debt
TRADING SECURITIES
Trading Securities, Fair Value	1,320	816
Trading Securities, Percent of Total	5.00%	3.00%
Fixed maturity securities \| Mortgage backed, asset backed and collateralized
TRADING SECURITIES
Trading Securities, Fair Value	16,460	9,809
Trading Securities, Percent of Total	66.00%	41.00%
Fixed maturity securities \| Residential mortgage backed securities (RMBS)
TRADING SECURITIES
Trading Securities, Fair Value	1,727	1,648
Trading Securities, Percent of Total	7.00%	7.00%
Fixed maturity securities \| Commercial mortgage-backed securities (CMBS)
TRADING SECURITIES
Trading Securities, Fair Value	2,236	1,837
Trading Securities, Percent of Total	9.00%	8.00%
Fixed maturity securities \| Collateralized Debt Obligations/Asset Backed Securities (CDO/ABS)
TRADING SECURITIES
Trading Securities, Fair Value	12,497	6,324
Trading Securities, Percent of Total	50.00%	26.00%
Fixed maturity securities \| Maiden Lane II
TRADING SECURITIES
Trading Securities, Fair Value		1,321
Trading Securities, Percent of Total		5.00%
Fixed maturity securities \| Maiden Lane III
TRADING SECURITIES
Trading Securities, Fair Value	8	5,664
Trading Securities, Percent of Total		23.00%
Equity securities
TRADING SECURITIES
Trading Securities, Fair Value	$ 662	$ 125
Trading Securities, Percent of Total	2.00%	1.00%

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Trading Securities which consist of all investments in certain debt and equity securities that are bought and held principally for the purpose of selling them in the near term (thus held for only a short period of time) or for which an entity has elected the fair value option. Trading generally reflects active and frequent buying and selling, and trading securities are generally used with the objective of generating profits on short-term differences in price, but this category of investments may also include items which are not intended to be sold in the near term or for which the fair value option has been elected.

+ References+ Details

INVESTMENTS (Details 6) (USD $)	12 Months Ended
INVESTMENTS (Details 6) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
VARIABLE INTEREST ENTITY
Equity in (income) loss from equity method investments, net of dividends or distributions	$ (911,000,000)	$ (637,000,000)	$ (1,268,000,000)
Securities purchased through FRBNY's auction of Maiden Lane III assets	7,100,000,000
Maiden Lane III
VARIABLE INTEREST ENTITY
Equity in earnings of consolidated subsidiaries	8,500,000,000
Equity in (income) loss from equity method investments, net of dividends or distributions	5,000,000,000
Securities purchased through FRBNY's auction of Maiden Lane III assets	$ 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) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
OTHER INVESTED ASSETS
Other invested assets	$ 29,117	$ 40,744
Available for sale securities
OTHER INVESTED ASSETS
Other invested assets, gross unrealized losses	68	269
AIA Group Limited (AIA)
OTHER INVESTED ASSETS
Other invested assets		12,367
Alternative investments
OTHER INVESTED ASSETS
Other invested assets	18,990	18,793
Mutual Funds
OTHER INVESTED ASSETS
Other invested assets	128	258
Investment real estate
OTHER INVESTED ASSETS
Other invested assets	3,195	2,778
Net of accumulated depreciation on investment in real estate	469	428
Aircraft asset investments
OTHER INVESTED ASSETS
Other invested assets	984	1,100
Life settlement contracts
OTHER INVESTED ASSETS
Other invested assets	4,357	4,006
All other investments
OTHER INVESTED ASSETS
Other invested assets	$ 1,463	$ 1,442

INVESTMENTS (Details 8) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Other Invested Assets - Equity Method Investments
Dividend received from other strategic investments	$ 8	$ 17	$ 25
Undistributed earnings of other strategic investments in which AIG's ownership interest is less than 50 percent	51	9	8
Ownership in strategic investments with undistributed earnings, upper limit (as a percent)	50.00%	50.00%	50.00%
Equity method investments, Carrying Value	11,544	21,393
Minimum
Other Invested Assets - Equity Method Investments
Investee's reporting period prior to the end of entity's reporting period	1 month
Maximum
Other Invested Assets - Equity Method Investments
Investee's reporting period prior to the end of entity's reporting period	3 months
AIA Group Limited (AIA)
Other Invested Assets - Equity Method Investments
Equity method investments, Carrying Value		12,367
Percentage of equity method investments which is accounted under fair value option		33.00%
All other equity method investments
Other Invested Assets - Equity Method Investments
Equity method investments, Carrying Value	$ 11,544	$ 9,026

INVESTMENTS (Details 9) (USD $)	1 Months Ended	12 Months Ended			0 Months Ended	12 Months Ended
INVESTMENTS (Details 9) (USD $)	May 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Oct. 29, 2010 AIA Group Limited (AIA)	Dec. 31, 2012 AIA Group Limited (AIA)	Dec. 31, 2011 AIA Group Limited (AIA)	Dec. 31, 2010 AIA Group Limited (AIA)
AIA initial public offering
Ordinary shares issued through IPO					8,080,000,000
Gross proceeds from ordinary shares issued through IPO					$ 20,500,000,000
Percentage of voting interest owned					33.00%
Pre-tax gain (loss) on deconsolidation								18,100,000,000
Subsequent sale of ordinary shares		729,308	100,799,653	5,391,804
Gross proceeds from subsequent shares sold	2,900,000,000		5,055,000,000
Fair value option gain (loss)		6,931,000,000	971,000,000	1,818,000,000		2,100,000,000	1,300,000,000	(600,000,000)
Fair value of the company's retained interest							$ 12,400,000,000

- Definition

+ References+ Details

- Definition

The cash inflow associated with the amount received from entity's first offering of stock to the public.

+ References+ Details

- Definition

The cash inflow from the additional capital contribution to the entity.

+ References+ Details

- Definition

Number of new stock issued during the period.

+ References+ Details

INVESTMENTS (Details 10) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
AIA Group Limited (AIA)
Operating results:
Total revenues		$ 13,802
Total expenses		(12,436)
Net income		1,366
Balance sheet:
Total assets		112,673
Total liabilities		(90,894)
All other equity method investments
Operating results:
Total revenues	9,438	12,749	14,079
Total expenses	(5,183)	(3,530)	(3,812)
Net income	4,255	9,219	10,267
Balance sheet:
Total assets	139,681	95,749
Total liabilities	$ (26,529)	$ (22,379)

- Definition

The amount of assets reported by an equity method investment of the entity.

+ References

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 825

-SubTopic 10

-Section 50

-Paragraph 28

-Subparagraph (f)

-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 323

-SubTopic 10

-Section 50

-Paragraph 3

-Subparagraph (c)

-URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571

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.(g))

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

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 323

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33912-111571

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 08

-Paragraph g

-Subparagraph 1, 2

-Article 4

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

-Publisher SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph w

-Article 1

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

-Publisher AICPA

-Name Accounting Principles Board Opinion (APB)

-Number 18

-Paragraph 20

-Subparagraph d

-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 159

-Paragraph 18

-Subparagraph f

-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 SEC

-Name Regulation S-X (SX)

-Number 210

-Section 02

-Paragraph bb

-Article 1

+ Details

- Definition

The amount of liabilities reported by an equity method investment of the entity.

+ References

+ Details

- Definition

The amount of net income (loss) reported by an equity method investment of the entity.

+ References

+ Details

INVESTMENTS (Details 11) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012 item	Dec. 31, 2011	Dec. 31, 2010
INVESTMENTS
Income recognized on life settlement contracts	$ 253	$ 320	$ 213
Impairment charges recognized on life settlement contracts	309	312	74
Number of Contracts
Number of Contracts, 0 - 1 year	1
Number of Contracts, 1 - 2 years	29
Number of Contracts, 2 - 3 years	90
Number of Contracts, 3 - 4 years	234
Number of Contracts, 4 - 5 years	296
Number of Contracts, Thereafter	5,023
Total Number of Contracts	5,673
Carrying Value
Carrying Value, 0 to 1 year	3
Carrying Value, 1 to 2 years	19
Carrying Value, 2 to 3 years	138
Carrying Value, 3 to 4 years	250
Carrying Value, 4 to 5 years	283
Carrying Value, Thereafter	3,509
Total of Carrying Value	4,202
Face Value (Death Benefits)
Face Value (Death Benefits), 0 - 1 year	8
Face Value (Death Benefits), 1 - 2 years	35
Face Value (Death Benefits), 2 - 3 years	269
Face Value (Death Benefits), 3 - 4 years	554
Face Value (Death Benefits), 4 - 5 years	723
Face Value (Death Benefits), Thereafter	16,067
Total of Face Value (Death Benefits)	17,656
Anticipated life insurance premiums
2013	546
2014	555
2015	562
2016	554
2017	$ 555

INVESTMENTS (Details 12) (USD $) In Millions, unless otherwise specified	12 Months Ended			3 Months Ended								12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 AIA Group Limited (AIA)	Sep. 30, 2012 AIA Group Limited (AIA)	Jun. 30, 2012 AIA Group Limited (AIA)	Mar. 31, 2012 AIA Group Limited (AIA)	Dec. 31, 2011 AIA Group Limited (AIA)	Sep. 30, 2011 AIA Group Limited (AIA)	Jun. 30, 2011 AIA Group Limited (AIA)	Mar. 31, 2011 AIA Group Limited (AIA)	Dec. 31, 2012 AIA Group Limited (AIA) Change in fair value of securities	Dec. 31, 2011 AIA Group Limited (AIA) Change in fair value of securities	Dec. 31, 2010 AIA Group Limited (AIA) Change in fair value of securities	Dec. 31, 2012 Maiden Lane II Change in fair value of securities	Dec. 31, 2011 Maiden Lane II Change in fair value of securities	Dec. 31, 2010 Maiden Lane II Change in fair value of securities	Dec. 31, 2012 Maiden Lane III Change in fair value of securities	Dec. 31, 2011 Maiden Lane III Change in fair value of securities	Dec. 31, 2010 Maiden Lane III Change in fair value of securities	Dec. 31, 2011 MetLife Inc. (MetLife) Change in fair value of securities	Dec. 31, 2010 MetLife Inc. (MetLife) Change in fair value of securities	Dec. 31, 2012 Fixed maturity securities, including short-term investments	Dec. 31, 2011 Fixed maturity securities, including short-term investments	Dec. 31, 2010 Fixed maturity securities, including short-term investments	Dec. 31, 2012 Equity securities	Dec. 31, 2011 Equity securities	Dec. 31, 2010 Equity securities	Dec. 31, 2012 Interest on mortgage and other loans	Dec. 31, 2011 Interest on mortgage and other loans	Dec. 31, 2010 Interest on mortgage and other loans	Dec. 31, 2012 Alternative investments	Dec. 31, 2011 Alternative investments	Dec. 31, 2010 Alternative investments	Dec. 31, 2012 Real estate	Dec. 31, 2011 Real estate	Dec. 31, 2010 Real estate	Dec. 31, 2012 Other investments	Dec. 31, 2011 Other investments	Dec. 31, 2010 Other investments
COMPONENTS OF NET INVESTMENT INCOME
Total investment income before policyholder income and trading gains	$ 20,947	$ 15,264	$ 20,539	$ 240	$ 527	$ (493)	$ 1,795	$ 1,021	$ (2,315)	$ 1,521	$ 1,062	$ 2,069	$ 1,289	$ (638)	$ 246	$ 42	$ 513	$ 2,888	$ (646)	$ 1,792	$ (157)	$ 665	$ 12,592	$ 11,814	$ 14,445	$ 162	$ 92	$ 234	$ 1,083	$ 1,065	$ 1,268	$ 1,769	$ 1,622	$ 1,957	$ 127	$ 107	$ 126	$ 11	$ 36	$ 177
Policyholder investment income and trading gains			886
Total investment income	20,947	15,264	21,425
Investment expenses	604	509	491
Net investment income	$ 20,343	$ 14,755	$ 20,934

INVESTMENTS (Details 13) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Pledged investments
Sale of fixed maturity securities	$ 2,607	$ 1,913	$ 1,846
Sale of equity securities	484	164	725
Other-than-temporary impairments:
Severity	(44)	(51)	(73)
Change in intent	(62)	(12)	(441)
Foreign currency declines	(8)	(32)	(63)
Issuer-specific credit events	(1,048)	(1,165)	(2,457)
Adverse projected cash flows	(5)	(20)	(5)
Provision for loan losses	104	48	(304)
Foreign exchange transactions	(234)	(93)	191
Derivative instruments	(684)	448	(416)
Other	(181)	(308)	(34)
Total net realized capital gains (losses)	929	701	(716)
MetLife
Other-than-temporary impairments:
Total net realized capital gains (losses)		$ (191)	$ 315

INVESTMENTS (Details 14) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Available for Sale Securities Disclosures
Increase in unrealized appreciation of investments	$ 10,710	$ 5,518	$ 9,306
Fixed maturities
Available for Sale Securities Disclosures
Increase in unrealized appreciation of investments	10,599	5,578	8,677
Equity securities
Available for Sale Securities Disclosures
Increase in unrealized appreciation of investments	(232)	(206)	473
Other investments
Available for Sale Securities Disclosures
Increase in unrealized appreciation of investments	$ 343	$ 146	$ 156

INVESTMENTS (Details 15) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Fixed maturity securities
Other Than Temporary Impairment Credit Losses Recognized in Earnings
Balance at the beginning of the period	$ 6,504	$ 6,786	$ 7,803
Increases due to:
Credit impairments on new securities subject to impairment losses	194	235	627
Additional credit impairments on previously impaired securities	483	735	1,294
Reduction due to:
Credit impaired securities fully disposed for which there was no prior intent or requirement to sell	(1,105)	(529)	(1,039)
Credit impaired securities for which there is a current intent or anticipated requirement to sell	(5)		(503)
Accretion on securities previously impaired due to credit	(915)	(544)	(332)
Hybrid securities with embedded credit derivatives reclassified to Bond trading securities		(179)	(748)
Other	8		(316)
Balance at the end of the period	$ 5,164	$ 6,504	$ 6,786
Equity securities
Reduction due to:
Percent discount to cost for purposes of evaluating other-than-temporary impairment	25.00%
Criteria for considering impairment, period of time traded at discount	9 months

INVESTMENTS (Details 16) (Purchased Credit Impaired (PCI) Securities, USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Purchased Credit Impaired (PCI) Securities
Purchased Credit Impaired (PCI) Securities
Contractually required payments (principal and interest)	$ 18,708
Cash flows expected to be collected	14,626
Recorded investment in acquired securities	9,379
Outstanding principal balance	11,791	10,119
Amortized cost	7,718	7,006
Fair value	8,823	6,535
Changes in activity for the accretable yield on PCI securities:
Balance, beginning of period	4,135
Newly purchased PCI securities	1,620	3,943
Disposals	(298)
Accretion	(672)	(324)
Effect of changes in interest rate indices	(213)	(62)
Net reclassification (to) from non-accretable difference, including effects of prepayments	194	578
Balance, end of period	$ 4,766	$ 4,135

INVESTMENTS (Details 17) (USD $)	12 Months Ended
INVESTMENTS (Details 17) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Pledged investments
Cash collateral as a percentage of security value used to determine classification as a sale	90.00%
Fair value of securities transferred under repurchase agreements accounted for as sales		$ 2,100,000,000
Fair value of securities transferred under repurchase agreements accounted for as purchases	11,000,000,000	6,800,000,000
Collateral posted for repurchase transactions repledged	33,000,000	122,000,000
Total carrying values of cash and securities deposited under requirements of regulatory authorities or other insurance-related arrangements	8,900,000,000	9,800,000,000
FHLBs
Pledged investments
Fair value of available-for-sale securities	341,000,000
Amount owned by subsidiaries	84,000,000	77,000,000
Secured financing
Pledged investments
Fair value of available-for-sale securities	8,200,000,000	2,300,000,000
Fair value of trading securities	3,000,000,000	2,800,000,000
GIAs
Pledged investments
Fair value of trading securities	$ 4,400,000,000	$ 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									12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2012 Commercial mortgages	Dec. 31, 2011 Commercial mortgages	Dec. 31, 2010 Commercial mortgages	Dec. 31, 2009 Commercial mortgages	Dec. 31, 2012 Commercial mortgages California	Dec. 31, 2012 Commercial mortgages New York	Dec. 31, 2012 Life insurance policy loans	Dec. 31, 2011 Life insurance policy loans	Dec. 31, 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	$ 19,887	$ 20,229			$ 13,788	$ 13,554					$ 2,952	$ 3,049	$ 3,147	$ 3,626
Allowance for losses	(405)	(740)	(878)	(2,444)	(159)	(305)	(470)	(432)
Mortgage and other loans receivable, net	$ 19,482	$ 19,489
Percentage of mortgage loans in geographic area									22.00%	15.00%
Percentage of loans that are current as to payments of principal and interest					99.00%	98.00%

- 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											12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2012 Apartments	Dec. 31, 2012 Offices	Dec. 31, 2012 Retail	Dec. 31, 2012 Industrial	Dec. 31, 2012 Hotel	Dec. 31, 2012 Others	Dec. 31, 2012 Commercial mortgages loan
Credit quality indicators for commercial mortgage loans
Number of loans in good standing											998
Number of loans restructured											8
Number of loans 90 days or less delinquent											4
Number of loans greater than 90 days delinquent or in process of foreclosure											6
Number of Loans											1,016
In good standing					$ 1,549	$ 4,698	$ 2,640	$ 1,654	$ 1,153	$ 1,671	$ 13,365
Restructured					50	207	7	2		22	288
90 days or less delinquent						17					17
Greater than 90 days delinquent or in process of foreclosure						13	26			79	118
Mortgage and other loans receivable, net	19,482	19,489			1,599	4,935	2,673	1,656	1,153	1,772	13,788
Valuation allowance	$ 405	$ 740	$ 878	$ 2,444	$ 5	$ 74	$ 19	$ 19	$ 1	$ 41	$ 159
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	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance at the beginning of the year	$ 740	$ 878	$ 2,444
Loans charged off	(44)	(125)	(354)
Recoveries of loans previously charged off	17	38	8
Net charge-offs	(27)	(87)	(346)
Provision for loan losses	(103)	(18)	348
Other		(55)	(1,635)
Reclassified to Assets of businesses held for sale			(58)
Activity of discontinued operations	(205)	22	125
Allowance at the end of the period	405	740	878
Commercial mortgages
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance at the beginning of the year	305	470	432
Loans charged off	(23)	(78)	(217)
Recoveries of loans previously charged off	13	37
Net charge-offs	(10)	(41)	(217)
Provision for loan losses	(136)	(69)	342
Other		(55)	(34)
Reclassified to Assets of businesses held for sale			(53)
Allowance at the end of the period	159	305	470
Allowance related to individually assessed credit losses	47	65
Commercial mortgage loans	286	476
Other Loans
Changes in the allowance for losses on Mortgage and other loans receivable
Allowance at the beginning of the year	435	408	2,012
Loans charged off	(21)	(47)	(137)
Recoveries of loans previously charged off	4	1	8
Net charge-offs	(17)	(46)	(129)
Provision for loan losses	33	51	6
Other			(1,601)
Reclassified to Assets of businesses held for sale			(5)
Activity of discontinued operations	(205)	22	125
Allowance at the end of the period	$ 246	$ 435	$ 408

REINSURANCE (Details) (USD $)	12 Months Ended					12 Months Ended
REINSURANCE (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Jun. 17, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2012 Short-duration insurance	Dec. 31, 2011 Short-duration insurance	Dec. 31, 2010 Short-duration insurance	Dec. 31, 2012 AIG Property Casualty Short-duration insurance	Dec. 31, 2011 AIG Property Casualty Short-duration insurance	Dec. 31, 2010 AIG Property Casualty Short-duration insurance	Dec. 31, 2012 Other Operations Short-duration insurance	Dec. 31, 2011 Other Operations Short-duration insurance	Dec. 31, 2010 Other Operations Short-duration insurance	Dec. 31, 2012 Consolidation and Eliminations Short-duration insurance	Dec. 31, 2011 Consolidation and Eliminations Short-duration insurance
Premiums and other receivables
Allowance for doubtful accounts on reinsurance assets	$ 338,000,000	$ 365,000,000
Supplemental information for gross loss and benefit reserves net of ceded reinsurance
Liability for unpaid claims and claims adjustment expense, As Reported	(87,991,000,000)	(91,145,000,000)		(91,151,000,000)	(85,386,000,000)
Liability for unpaid claims and claims adjustment expense, Net of Reinsurance	(68,782,000,000)	(70,825,000,000)		(71,507,000,000)	(67,899,000,000)
Future policy benefits for life and accident and health insurance contracts	(36,340,000,000)	(34,317,000,000)
Future policy benefits for life and accident and health insurance contracts, Net of Reinsurance	(35,408,000,000)	(33,312,000,000)
Reserve for unearned premiums, As Reported	(22,537,000,000)	(23,465,000,000)
Reserve for unearned premiums, Net of Reinsurance	(18,934,000,000)	(19,553,000,000)
Reinsurance assets	23,744,000,000	25,237,000,000
Premiums Written
Direct						41,366,000,000	42,608,000,000	39,892,000,000	40,428,000,000	41,710,000,000	38,965,000,000	938,000,000	898,000,000	927,000,000
Assumed						3,425,000,000	3,033,000,000	2,440,000,000	3,428,000,000	3,031,000,000	2,442,000,000	(10,000,000)		(2,000,000)	7,000,000	2,000,000
Ceded						(9,497,000,000)	(10,000,000,000)	(9,964,000,000)	(9,420,000,000)	(9,901,000,000)	(9,795,000,000)	(70,000,000)	(97,000,000)	(169,000,000)	(7,000,000)	(2,000,000)
Net						35,294,000,000	35,641,000,000	32,368,000,000	34,436,000,000	34,840,000,000	31,612,000,000	858,000,000	801,000,000	756,000,000
Premiums earned:
Direct						41,708,000,000	43,713,000,000	40,147,000,000	40,954,000,000	42,878,000,000	39,082,000,000	754,000,000	835,000,000	1,065,000,000
Assumed						3,255,000,000	3,303,000,000	2,568,000,000	3,254,000,000	3,294,000,000	2,488,000,000	31,000,000	55,000,000	80,000,000	(30,000,000)	(46,000,000)
Ceded						(9,375,000,000)	(10,535,000,000)	(9,219,000,000)	(9,335,000,000)	(10,483,000,000)	(9,049,000,000)	(70,000,000)	(98,000,000)	(170,000,000)	30,000,000	46,000,000
Net						35,588,000,000	36,481,000,000	33,496,000,000	34,873,000,000	35,689,000,000	32,521,000,000	715,000,000	792,000,000	975,000,000
Net of reinsurance amount reflecting cession	1,600,000,000	1,700,000,000
Reinsurance recoveries, which reduced loss and loss expenses incurred	$ 19,209,000,000	$ 20,320,000,000	$ 1,700,000,000	$ 19,644,000,000	$ 17,487,000,000	$ 4,500,000,000	$ 6,100,000,000	$ 8,000,000,000

REINSURANCE (Details 2) (USD $) In Millions, unless otherwise specified						12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Jun. 17, 2011	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2012 Life Insurance and Retirement Services	Dec. 31, 2011 Life Insurance and Retirement Services	Dec. 31, 2010 Life Insurance and Retirement Services	Dec. 31, 2012 Life insurance	Dec. 31, 2011 Life insurance	Dec. 31, 2010 Life insurance	Dec. 31, 2012 Divested Businesses Life Insurance and Retirement Services	Dec. 31, 2011 Divested Businesses Life Insurance and Retirement Services	Dec. 31, 2010 Divested Businesses Life Insurance and Retirement Services	Dec. 31, 2012 AIG Life and Retirement	Dec. 31, 2011 AIG Life and Retirement	Dec. 31, 2010 AIG Life and Retirement	Dec. 31, 2012 AIG Life and Retirement Life Insurance and Retirement Services	Dec. 31, 2011 AIG Life and Retirement Life Insurance and Retirement Services	Dec. 31, 2010 AIG Life and Retirement Life Insurance and Retirement Services
Premiums earned:
Direct						$ 3,041	$ 3,121	$ 12,811				$ 11	$ 17	$ 9,670				$ 3,030	$ 3,104	$ 3,141
Ceded						(602)	(597)	(1,056)					(6)	(435)				(602)	(591)	(621)
Net						2,439	2,524	11,755				11	11	9,235				2,428	2,513	2,520
Reinsurance recoveries, which reduced loss and loss expenses incurred	19,209	20,320	1,700	19,644	17,487	758	611	810
Life insurance ratios
Long-duration insurance in force ceded									129,159	140,156	148,605
Assumed insurance as a percentage of gross long-duration insurance in force															0.10%	0.07%	0.10%
Assumed insurance as a percent of gross premiums															0.50%	0.50%	0.30%
Letters of credit
Syndicated letter of credit facility outstanding related to long-duration intercompany reinsurance transactions						585
Letters of credit obtained on a bilateral basis related to long-duration intercompany reinsurance transactions						215
Letters of credit						$ 800

DEFERRED POLICY ACQUISITION COSTS (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Rollforward of deferred policy acquisition costs
Amortization expense	$ (5,709)	$ (5,486)	$ (5,821)
Balance, end of year	8,182	8,937	9,431
Value of business acquired
Amortization of VOBA	53	34	90
Unamortized balance of VOBA	339	430	488
Percentage of unamortized balance of VOBA expected to be amortized in 2012 through 2016 by year
Year one (as a percent)	0.083
Year two (as a percent)	0.073
Year three (as a percent)	0.069
Year four (as a percent)	0.060
Year five (as a percent)	0.064
Year after five year (as a percent)	65.00%
(Increase) decrease in amortization expense	119	274	114
Divested Businesses
Rollforward of deferred policy acquisition costs
Increase (decrease) in deferred policy acquisition costs due to net unrealized gains and losses on available for sale securities		(34)
AIG Property Casualty
Rollforward of deferred policy acquisition costs
Balance, beginning of year before consolidation and eliminations	2,375	2,099	1,919
Acquisition costs deferred	4,861	4,548	4,058
Amortization expense	(4,761)	(4,324)	(3,894)
Increase (decrease) due to foreign exchange and other	(34)	52	16
Balance, end of year before consolidation and eliminations	2,441	2,375	2,099
AIG Life and Retirement
Rollforward of deferred policy acquisition costs
Balance, beginning of year before consolidation and eliminations	6,502	7,258	8,462
Acquisition costs deferred	724	869	701
Amortization expense	(931)	(1,142)	(1,086)
Change in net unrealized gains (losses) on securities	(621)	(486)	(817)
Increase (decrease) due to foreign exchange	(2)	3	1
Other			(3)
Balance, end of year before consolidation and eliminations	5,672	6,502	7,258
Increase (decrease) in deferred policy acquisition costs due to net unrealized gains and losses on available for sale securities	(619)	(1,400)	(758)
Other Operations
Rollforward of deferred policy acquisition costs
Balance, beginning of year before consolidation and eliminations	25	32	17,505
Dispositions			(16,117)
Acquisition costs deferred	36	14	1,218
Amortization expense	(17)	(20)	(841)
Activity of discontinued operations			59
Change in net unrealized gains (losses) on securities			28
Increase (decrease) due to foreign exchange		1	314
Reclassified to Assets held for sale			(1,960)
Other		(2)	(174)
Balance, end of year before consolidation and eliminations	44	25	32
Balance, end of year	69	60	74
Consolidation and Eliminations
Rollforward of deferred policy acquisition costs
Balance, end of year before consolidation and eliminations	$ 25	$ 35	$ 42

VARIABLE INTEREST ENTITIES (Details) (USD $)							12 Months Ended																12 Months Ended
VARIABLE INTEREST ENTITIES (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 AIA/ALICO SPVs	Dec. 31, 2012 Real estate and investment funds	Dec. 31, 2011 Real estate and investment funds	Dec. 31, 2012 Structured Investment Vehicle Minimum	Dec. 31, 2012 Affordable housing partnerships SunAmerica Affordable Housing Partners, Inc. item	Dec. 31, 2012 Aircraft Trusts item	Dec. 31, 2012 Consolidated VIE	Dec. 31, 2011 Consolidated VIE	Dec. 31, 2012 Consolidated VIE AIA/ALICO SPVs	Dec. 31, 2011 Consolidated VIE AIA/ALICO SPVs	Dec. 31, 2012 Consolidated VIE Real estate and investment funds	Dec. 31, 2011 Consolidated VIE Real estate and investment funds	Dec. 31, 2012 Consolidated VIE Securitization Vehicles	Dec. 31, 2012 Consolidated VIE Structured Investment Vehicle	Dec. 31, 2011 Consolidated VIE Structured Investment Vehicle	Dec. 31, 2012 Consolidated VIE Affordable housing partnerships	Dec. 31, 2011 Consolidated VIE Affordable housing partnerships	Dec. 31, 2012 Consolidated VIE Other	Dec. 31, 2011 Consolidated VIE Other	Dec. 31, 2012 Consolidated VIE Aircraft Trusts	Dec. 31, 2012 Consolidated VIE Commercial loans vehicles VIE item	Dec. 31, 2012 Unconsolidated VIE	Dec. 31, 2011 Unconsolidated VIE	Dec. 31, 2012 Unconsolidated VIE Real estate and investment funds	Dec. 31, 2011 Unconsolidated VIE Real estate and investment funds	Dec. 31, 2012 Unconsolidated VIE Affordable housing partnerships	Dec. 31, 2011 Unconsolidated VIE Affordable housing partnerships	Dec. 31, 2011 Unconsolidated VIE Maiden Lane II and III interests	Dec. 31, 2012 Unconsolidated VIE Other	Dec. 31, 2011 Unconsolidated VIE Other	Dec. 31, 2008 Maiden Lane II Maiden Lane Interests Residential mortgage backed securities (RMBS)
VARIABLE INTEREST ENTITY
Off-balance sheet exposure associated with VIEs				$ 200,000,000	$ 400,000,000
VIE Assets						1,700,000,000			11,300,000,000	22,800,000,000	600,000,000	14,200,000,000	1,000,000,000	1,500,000,000	2,400,000,000	1,700,000,000	1,000,000,000	2,300,000,000	2,500,000,000	3,300,000,000	3,600,000,000	1,200,000,000	412,000,000
VIE Liabilities									1,900,000,000	2,600,000,000	100,000,000	100,000,000	200,000,000	400,000,000		100,000,000		200,000,000	100,000,000	1,300,000,000	2,000,000,000	300,000,000	188,000,000
Total VIE Assets																								18,200,000,000	47,500,000,000	16,700,000,000	18,300,000,000	500,000,000	600,000,000	27,100,000,000	1,000,000,000	1,500,000,000
Cash held in escrow			567,000,000
Off-balance sheet exposure				48,700,000	85,700,000
Maximum Exposure to Loss, On-Balance Sheet																								2,400,000,000	9,700,000,000	1,800,000,000	2,100,000,000	500,000,000	600,000,000	7,000,000,000	100,000,000
Maximum Exposure to Loss, Off-Balance Sheet																								200,000,000	300,000,000	200,000,000	300,000,000
Total maximum exposure to loss																							389,000,000	2,600,000,000	10,000,000,000	2,000,000,000	2,400,000,000	500,000,000	600,000,000	7,000,000,000	100,000,000
Assets:
Available for sale securities									2,900,000,000	400,000,000
Trading securities	24,584,000,000	24,364,000,000							1,000,000,000	1,300,000,000														100,000,000	7,100,000,000
Mortgage and other loans receivable	19,482,000,000	19,489,000,000							400,000,000	500,000,000
Other invested assets	29,117,000,000	40,744,000,000							4,000,000,000	17,200,000,000														2,300,000,000	2,600,000,000
Other asset accounts									3,000,000,000	3,400,000,000
Unconsolidated VIE assets in balance sheet																								2,400,000,000	9,700,000,000
Liabilities:
Long-term debt	48,500,000,000	75,253,000,000							700,000,000	1,700,000,000
Other liability accounts									1,200,000,000	900,000,000
Number of partnerships through which investments has been made in apartment units nationwide							1,000
Number of apartment units nationwide in which investment for developments has been made							130,000
Partnership equity syndicated to other investors							7,700,000,000
Face amount of securities sold by certain wholly owned life insurance companies of AIG to ML II																																	$ 39,300,000,000
Number of VIEs								2															1

DERIVATIVES AND HEDGE ACCOUNTING (Details) (USD $) In Millions, unless otherwise specified	Dec. 31, 2012	Dec. 31, 2011
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	$ 97,922	$ 106,089
Gross Derivative Assets, Fair Value	7,047	9,660
Gross Derivative Liabilities, Notional Amount	117,630	125,062
Gross Derivative Liabilities, Fair Value	9,760	12,097
Bifurcated embedded derivatives
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Liabilities, Notional Amount	23,000	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		481
Gross Derivative Liabilities, Fair Value		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	97,922	106,089
Gross Derivative Assets, Fair Value	7,047	9,660
Gross Derivative Liabilities, Notional Amount	117,630	124,401
Gross Derivative Liabilities, Fair Value	9,760	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	63,463	72,660
Gross Derivative Assets, Fair Value	6,479	8,286
Gross Derivative Liabilities, Notional Amount	63,482	73,248
Gross Derivative Liabilities, Fair Value	5,806	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	8,325	3,278
Gross Derivative Assets, Fair Value	104	145
Gross Derivative Liabilities, Notional Amount	10,168	3,399
Gross Derivative Liabilities, Fair Value	174	178
Derivatives not designated as hedging instruments \| Equity contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	4,990	4,748
Gross Derivative Assets, Fair Value	221	263
Gross Derivative Liabilities, Notional Amount	25,626	18,911
Gross Derivative Liabilities, Fair Value	1,377	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	625	691
Gross Derivative Assets, Fair Value	145	136
Gross Derivative Liabilities, Notional Amount	622	861
Gross Derivative Liabilities, Fair Value	146	146
Derivatives not designated as hedging instruments \| Credit contracts
Notional amounts and fair values of AIG's derivative instruments:
Gross Derivative Assets, Notional Amount	70	407
Gross Derivative Assets, Fair Value	60	89
Gross Derivative Liabilities, Notional Amount	16,244	25,857
Gross Derivative Liabilities, Fair Value	2,051	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	20,449	24,305
Gross Derivative Assets, Fair Value	38	741
Gross Derivative Liabilities, Notional Amount	1,488	2,125
Gross Derivative Liabilities, Fair Value	$ 206	$ 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 $)	Dec. 31, 2012	Dec. 31, 2011
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	$ 97,922,000,000	$ 106,089,000,000
Derivative Assets, Fair Value	7,047,000,000	9,660,000,000
Derivative Liabilities, Notional Amount	117,630,000,000	125,062,000,000
Derivative Liabilities, Fair Value	9,760,000,000	12,097,000,000
Derivative assets, Counterparty netting	(2,467,000,000)	(3,660,000,000)
Derivative assets, Cash collateral	(909,000,000)	(1,501,000,000)
Total derivative assets, net	3,671,000,000	4,499,000,000
Derivative liabilities, Counterparty netting	(2,467,000,000)	(3,660,000,000)
Derivative liabilities, Cash collateral	(1,976,000,000)	(2,786,000,000)
Total derivative liabilities, net	5,317,000,000	5,651,000,000
Less: Bifurcated embedded derivative liabilities, fair value	1,256,000,000	918,000,000
Total derivative assets on consolidated balance sheet	3,671,000,000	4,499,000,000
Total derivative liabilities on consolidated balance sheet	4,061,000,000	4,733,000,000
Collateral
Collateral posted to third parties for derivative transactions	4,500,000,000	4,700,000,000
Collateral obtained from third parties for derivative transactions	1,400,000,000	1,600,000,000
Global Capital Markets (GCM) derivatives
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	73,882,000,000	94,036,000,000
Derivative Assets, Fair Value	6,033,000,000	8,472,000,000
Derivative Liabilities, Notional Amount	85,491,000,000	98,442,000,000
Derivative Liabilities, Fair Value	7,324,000,000	10,021,000,000
AIG Financial Products
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	59,854,000,000	86,128,000,000
Derivative Assets, Fair Value	4,725,000,000	7,063,000,000
Derivative Liabilities, Notional Amount	66,717,000,000	90,241,000,000
Derivative Liabilities, Fair Value	5,506,000,000	8,853,000,000
AIG Markets
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	14,028,000,000	7,908,000,000
Derivative Assets, Fair Value	1,308,000,000	1,409,000,000
Derivative Liabilities, Notional Amount	18,774,000,000	8,201,000,000
Derivative Liabilities, Fair Value	1,818,000,000	1,168,000,000
Non-Global Capital Markets derivatives
Notional amounts and fair values of AIG's derivative instruments:
Derivative Assets, Notional Amount	24,040,000,000	12,053,000,000
Derivative Assets, Fair Value	1,014,000,000	1,188,000,000
Derivative Liabilities, Notional Amount	32,139,000,000	26,620,000,000
Derivative Liabilities, Fair Value	$ 2,436,000,000	$ 2,076,000,000

DERIVATIVES AND HEDGE ACCOUNTING (Details 3) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Derivative instruments gain (loss):
Foreign currency translation gain (loss) adjustment related to net investment hedge relationships	$ (74)	$ (13)	$ 28
Gain (loss) recognized in OCI on derivatives	(2)	(5)	(25)
Derivatives designated as hedging instruments \| Interest rate contracts \| Fair value hedging
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives		(3)
Gain (loss) recognized in earnings on hedged items	124	152
Amortization of debt basis adjustment following the discontinuation of hedge accounting	124	149
Derivatives designated as hedging instruments \| Interest rate contracts \| Cash flow hedging
Derivative instruments gain (loss):
Gain (loss) recognized in OCI on derivatives	(2)	(5)
Gain (loss) reclassified from Accumulated OCI into earnings	(35)	(55)
Reclassification from Accumulated other comprehensive income into earnings	19
Derivatives designated as hedging instruments \| Foreign exchange contracts \| Fair value hedging
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(2)	(1)
Gain (loss) recognized in earnings on hedged items	2	1
Derivatives not designated as hedging instruments
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(140)	865
Derivatives not designated as hedging instruments \| Policy fees
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	160	113
Derivatives not designated as hedging instruments \| Net investment income
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	5	8
Derivatives not designated as hedging instruments \| Net realized capital gains (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(672)	248
Derivatives not designated as hedging instruments \| Other income (losses)
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	367	496
Derivatives not designated as hedging instruments \| Interest rate contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(241)	603
Derivatives not designated as hedging instruments \| Foreign exchange contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	96	137
Derivatives not designated as hedging instruments \| Equity contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(641)	(263)
Embedded derivative gains (losses)	(166)	(397)
Derivatives not designated as hedging instruments \| Commodity contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	(1)	4
Derivatives not designated as hedging instruments \| Credit contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	641	337
Derivatives not designated as hedging instruments \| Other contracts
Derivative instruments gain (loss):
Gain (loss) recognized in earnings on derivatives	$ 6	$ 47

- Definition

The effective portion of net gain (loss) reclassified from accumulated other comprehensive income into income on derivative instruments designated and qualifying as hedging instruments.

+ References+ Details

- Definition

The amount of net gains and losses recognized in income during the period on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges, on derivative instruments designated and qualifying as hedging instruments in cash flow hedges, and on derivative instruments not designated as hedging instruments.

+ References+ Details

- Definition

Net Increase or Decrease in the fair value of the embedded derivative or group of embedded derivatives included in earnings in the period.

+ References

+ Details

- Definition

Before tax amount of the change in accumulated gain (loss) from derivative instruments designated and qualifying as the effective portion of cash flow hedges. Also includes an entity's share of an equity investee's increase (decrease) in deferred hedging gain (loss).

+ References

Reference 1: 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 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 220

-SubTopic 10

-Section 45

-Paragraph 10A

-Subparagraph (d)

-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669646-108580

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

-Publisher AICPA

-Name Accounting Research Bulletin (ARB)

-Number 51

-Paragraph 38

-Subparagraph c(3)

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

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

-Publisher FASB

-Name Accounting Standards Codification

-Topic 815

-SubTopic 30

-Section 45

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 130

-Paragraph 24

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

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 130

-Paragraph 17, 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 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 133

-Paragraph 46

-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

DERIVATIVES AND HEDGE ACCOUNTING (Details 4) (USD $)	12 Months Ended
DERIVATIVES AND HEDGE ACCOUNTING (Details 4) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Credit derivatives:
Fair value of hybrid securities	$ 6,700,000,000
Current par value of hybrid securities	15,000,000,000
Credit Risk-Related Contingent Features
Credit derivatives:
Collateral posted	4,300,000,000
Aggregate fair value of net liability position	3,900,000,000
Additional collateral requirements, one-notch downgrade	102,000,000
Further additional collateral requirements, one-notch downgrade	112,000,000
Global Capital Markets (GCM) derivatives
Credit derivatives:
Credit derivative transactions hedging credit risk	67,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS
Credit derivatives:
Notional amount of credit risk derivatives	15,873,000,000	24,619,000,000
Terminations	5,400,000,000
Amortization	3,200,000,000
Fair Value of Derivative (Asset) Liability	1,970,000,000	3,223,000,000
Unrealized market valuation gain (loss) on credit derivatives	617,000,000	339,000,000
Unrealized gains (losses) on derivatives from change in credit valuation	(39,000,000)	26,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Regulatory Capital
Credit derivatives:
Notional amount of credit risk derivatives	97,000,000	6,370,000,000
Fair Value of Derivative (Asset) Liability		9,000,000
Unrealized market valuation gain (loss) on credit derivatives	9,000,000	14,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Regulatory Capital \| Corporate loans
Credit derivatives:
Notional amount of credit risk derivatives		1,830,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Regulatory Capital \| Prime residential mortgages
Credit derivatives:
Notional amount of credit risk derivatives	97,000,000	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	9,000,000	8,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Arbitrage
Credit derivatives:
Notional amount of credit risk derivatives	15,776,000,000	17,260,000,000
Fair Value of Derivative (Asset) Liability	1,970,000,000	3,204,000,000
Unrealized market valuation gain (loss) on credit derivatives	605,000,000	293,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Arbitrage \| Multi-sector CDOs
Credit derivatives:
Notional amount of credit risk derivatives	3,944,000,000	5,476,000,000
Fair Value of Derivative (Asset) Liability	1,910,000,000	3,077,000,000
Unrealized market valuation gain (loss) on credit derivatives	538,000,000	249,000,000
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	213,000,000
Unrealized market valuation gain (losses) on AIGFP super senior credit default swap portfolio	(213,000,000)
Notional amount of CDS with cash settlement provisions	3,400,000,000	4,600,000,000
Derivative weighted average maturity	6 years
Collateral posted	1,600,000,000	2,700,000,000
Global Capital Markets (GCM) derivatives \| Super Senior CDS \| Arbitrage \| Corporate debt
Credit derivatives:
Notional amount of credit risk derivatives	11,832,000,000	11,784,000,000
Fair Value of Derivative (Asset) Liability	60,000,000	127,000,000
Unrealized market valuation gain (loss) on credit derivatives	67,000,000	44,000,000
Notional amount of CDS written on super senior tranches of CLOs	1,200,000,000	1,200,000,000
Derivative weighted average maturity	3 years
Collateral posted	420,000,000	477,000,000
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	3,000,000	32,000,000
Global Capital Markets (GCM) derivatives \| Written single name CDS
Credit derivatives:
Notional amount of credit risk derivatives	410,000,000
Notional amount of CDS purchased offsets	51,000,000
Derivative weighted average maturity	4 years
Notional amount of single name CDS maximum exposure	359,000,000
Fair value of derivative liability	48,000,000
Collateral posted	$ 64,000,000

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Jun. 17, 2011
Reconciliation of activity in the Liability for unpaid claims and claims adjustment expense:
Liability for unpaid claims and claims adjustment expense, balance at the beginning of the year	$ 91,145	$ 91,151	$ 85,386
Reinsurance recoverable, balance at the beginning of the year	(20,320)	(19,644)	(17,487)	(1,700)
Total, balance at the beginning of the year	70,825	71,507	67,899
Foreign exchange effect	757	353	(126)
Acquisitions			1,538
Dispositions	(11)		(87)
Changes in net loss reserves due to NICO transaction	90	(1,703)
Total	71,661	70,157	69,224
Losses and loss expenses incurred
Current year	25,385	27,931	24,455
Prior years, other than accretion of discount	421	195	4,182
Prior years, accretion of discount	(63)	34	(562)
Total	25,743	28,160	28,075
Losses and loss expenses paid
Current year	9,297	11,534	9,873
Prior years	19,325	15,958	15,919
Total	28,622	27,492	25,792
Net liability for unpaid claims and claims adjustment expense, balance at the end of the year	68,782	70,825	71,507
Reinsurance recoverable, balance at the end of the year	19,209	20,320	19,644	1,700
Total, balance at the end of the year	87,991	91,145	91,151
Excess Casualty
Losses and loss expenses incurred
Total	262	(414)	1,100
Excess Workers' Compensation
Losses and loss expenses incurred
Total	46	145	793
Environmental
Losses and loss expenses incurred
Total	326	413
Asbestos
Losses and loss expenses incurred
Total			1,500
Loss sensitive premium adjustment
Losses and loss expenses paid
Net liability for unpaid claims and claims adjustment expense, balance at the end of the year	$ 54	$ 172	$ 8

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2012
DISCOUNTING OF RESERVES
Net loss reserve discount	$ 3,200,000,000
Tabular discount
DISCOUNTING OF RESERVES
Interest rate used to calculate worker's compensation discount (as a percent)	3.50%
Tabular discount \| AIG Property Casualty
DISCOUNTING OF RESERVES
Discount for workers' compensation	801,000,000
Non-tabular discount \| AIG Property Casualty
DISCOUNTING OF RESERVES
Discount for workers' compensation	2,400,000,000
Discount for asbestos	$ 51,000,000
Non-tabular discount \| New York
DISCOUNTING OF RESERVES
Interest rate used to calculate worker's compensation discount (as a percent)	5.00%
Non-tabular discount \| Pennsylvania
DISCOUNTING OF RESERVES
Interest rate used to calculate worker's compensation discount (as a percent)	6.00%

- Definition

Percent discount applied to worker's compensation reserve liability to reduce the reserve to present value.

+ References+ Details

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS (Details 3) (USD $) In Millions, unless otherwise specified			12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Life insurance
Future policy benefits
Long duration and contracts	$ 36,121	$ 33,322
Short duration contracts	219	995
Total future policy benefits	$ 36,340	$ 34,317
Assumptions for liability for future life policy benefits
Interest rates (exclusive of immediate/terminal funding annuities), low end of range (as a percent)			1.00%
Interest rates (exclusive of immediate/terminal funding annuities), high end of range (as a percent)			9.50%
Period considered for interest rates (exclusive of immediate/terminal funding annuities)			20 years
Maximum interest rates on immediate/terminal funding annuities (as a percent)			13.50%
Maximum grade of interest rates on immediate/terminal funding annuities (as a percent)			0.00%
Weighted average lapse rate, including surrenders, for individual and group life (as a percent)			7.10%
Percentage of gross insurance in force			2.00%
Percentage of gross premiums and other consideration			4.20%

LIABILITY FOR UNPAID CLAIMS AND CLAIMS ADJUSTMENT EXPENSE AND FUTURE POLICY BENEFITS FOR LIFE AND ACCIDENT AND HEALTH INSURANCE CONTRACTS AND POLICYHOLDER CONTRACT DEPOSITS (Details 4) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Policyholder Contract Deposits
Total policyholder contract deposits	$ 127,117	$ 126,898
Annuities
Policyholder Contract Deposits
Total policyholder contract deposits	98,544	98,657
Assumptions for liability for policyholder contract deposits
Interest rates credited on deferred annuities, low end of range (as a percent)	1.00%
Interest rates credited on deferred annuities, high end of range (as a percent)	9.00%
Period for interest rates credited on deferred annuities to remain in effect	1 year
Withdrawal charges, low end of range (as a percent)	0.00%
Withdrawal charges, high end of range (as a percent)	20.00%
Period in which withdrawal charges percentage grades to zero, low end of range	0 years
Period in which withdrawal charges percentage grades to zero, high end of range	15 years
Universal life products
Policyholder Contract Deposits
Total policyholder contract deposits	13,045	12,917
Assumptions for liability for policyholder contract deposits
Period in which withdrawal charges percentage grades to zero, high end of range	20 years
Universal life funds credited interest rate, low end of range (as a percent)	1.00%
Universal life funds credited interest rate, high end of range (as a percent)	8.00%
Universal life funds guaranteed rate, low end of range (as a percent)	1.00%
Universal life funds guaranteed rate, high end of range (as a percent)	5.50%
Surrender charges (as a percent)	9.70%
Guaranteed investment contracts
Policyholder Contract Deposits
Total policyholder contract deposits	6,178	6,788
Assumptions for liability for policyholder contract deposits
Guaranteed investment contracts interest rate, low end of range (as a percent)	0.50%
Guaranteed investment contracts interest rate, high end of range (as a percent)	8.50%
Maximum term of maturity for majority of GICs	4 years
Variable products - fixed account option
Policyholder Contract Deposits
Total policyholder contract deposits	3,936	3,181
Corporate life products
Policyholder Contract Deposits
Total policyholder contract deposits	2,284	2,239
Assumptions for liability for policyholder contract deposits
Corporate life insurance guaranteed interest rate (as a percent)	3.00%
Corporate life insurance weighted average rate (as a percent)	4.60%
Other investment contracts
Policyholder Contract Deposits
Total policyholder contract deposits	$ 3,130	$ 3,116

VARIABLE LIFE AND ANNUITY CONTRACTS (Details) (USD $)	12 Months Ended
VARIABLE LIFE AND ANNUITY CONTRACTS (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011
Guaranteed minimum death benefits (GMDB)
Assumptions and methodology used to determine the GMDB liability
Maximum number of stochastically generated investment performance scenarios (in counts)	1,000
Mean investment performance assumption, low end of range (as a percent)	3.00%
Mean investment performance assumption, high end of range (as a percent)	10.00%
Volatility rate (as a percent)	16.00%
Mortality rate, low end of range (as a percent)	50.00%
Mortality rate, high end of range (as a percent)	88.00%
Lapse rate, low end of range (as a percent)	0.00%
Lapse rate, high end of range (as a percent)	37.00%
Discount rate, low end of range (as a percent)	3.75%
Discount rate, high end of range (as a percent)	10.00%
Guaranteed minimum death benefits (GMDB) and Guaranteed minimum income benefits (GMIB)
Changes in GMDB and GMIB liabilities for guarantees on variable contracts reflected in the general account
Balance at the beginning of the period	$ 445,000,000	$ 412,000,000
Reserve increase	43,000,000	120,000,000
Benefits paid	(75,000,000)	(87,000,000)
Balance at the end of the period	413,000,000	445,000,000
Guaranteed minimum account value benefits (GMAV B) and Guaranteed minimum withdrawal benefits (GMWB)
VARIABLE LIFE AND ANNUITY CONTRACTS
Account value	19,800,000,000
Amount at risk	1,300,000,000
Variable contract, net deposits plus a minimum return \| Guaranteed minimum death benefits (GMDB)
VARIABLE LIFE AND ANNUITY CONTRACTS
Account value	64,000,000,000	57,000,000,000
Amount at risk	2,000,000,000	3,000,000,000
Range of guaranteed minimum return rates (as a percent)	3-10%	3-10%
Variable contract, net deposits plus a minimum return \| Guaranteed minimum death benefits (GMDB) \| Minimum
VARIABLE LIFE AND ANNUITY CONTRACTS
Average attained age of contract holders by product	59 years	58 years
Variable contract, net deposits plus a minimum return \| Guaranteed minimum death benefits (GMDB) \| Maximum
VARIABLE LIFE AND ANNUITY CONTRACTS
Average attained age of contract holders by product	73 years	72 years
Variable annuity contract, highest contract value attained \| Guaranteed minimum death benefits (GMDB)
VARIABLE LIFE AND ANNUITY CONTRACTS
Account value	13,000,000,000	12,000,000,000
Amount at risk	$ 1,000,000,000	$ 2,000,000,000
Variable annuity contract, highest contract value attained \| Guaranteed minimum death benefits (GMDB) \| Minimum
VARIABLE LIFE AND ANNUITY CONTRACTS
Average attained age of contract holders by product	66 years	67 years
Variable annuity contract, highest contract value attained \| Guaranteed minimum death benefits (GMDB) \| Maximum
VARIABLE LIFE AND ANNUITY CONTRACTS
Average attained age of contract holders by product	75 years	74 years

DEBT OUTSTANDING (Details) (USD $)																									12 Months Ended		12 Months Ended			12 Months Ended				12 Months Ended		12 Months Ended				12 Months Ended		12 Months Ended			12 Months Ended		12 Months Ended				12 Months Ended		12 Months Ended				12 Months Ended
DEBT OUTSTANDING (Details) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2012 Uncollateralized Notes/Bonds/Loans Payable	Dec. 31, 2012 Collateralized Loans and Mortgages Payable	Dec. 31, 2012 AIG Series AIGFP	Dec. 31, 2011 AIG Series AIGFP	Dec. 31, 2012 AIG MIP	Dec. 31, 2011 AIG MIP	Dec. 31, 2012 Notes and bonds payable AIG	Dec. 31, 2011 Notes and bonds payable AIG	Dec. 31, 2012 Junior subordinated debt AIG	Dec. 31, 2011 Junior subordinated debt AIG	Dec. 31, 2012 Series A-4 Junior Subordinated Debentures	Dec. 31, 2012 Series A-5 Junior Subordinated Debentures	Dec. 31, 2012 Other subsidiaries notes, bonds, loans and mortgages payable	Dec. 31, 2012 Other subsidiaries notes, bonds, loans and mortgages payable Other Subsidiaries	Dec. 31, 2012 Other subsidiaries notes, bonds, loans and mortgages payable Other Subsidiaries Uncollateralized Notes/Bonds/Loans Payable	Dec. 31, 2012 Other subsidiaries notes, bonds, loans and mortgages payable Other Subsidiaries Collateralized Loans and Mortgages Payable	Dec. 31, 2012 Debt issued or guaranteed	Dec. 31, 2011 Debt issued or guaranteed	Dec. 31, 2012 general borrowings	Dec. 31, 2011 general borrowings	Dec. 31, 2012 general borrowings AIG	Dec. 31, 2012 general borrowings AIG Uncollateralized Notes/Bonds/Loans Payable	Dec. 31, 2012 general borrowings Notes and bonds payable	Dec. 31, 2011 general borrowings Notes and bonds payable	Dec. 31, 2012 general borrowings Notes and bonds payable SunAmerica Financial Group, Inc.	Dec. 31, 2011 general borrowings Notes and bonds payable SunAmerica Financial Group, Inc.	Dec. 31, 2012 general borrowings Subordinated debt	Dec. 31, 2012 general borrowings Junior subordinated debt	Dec. 31, 2011 general borrowings Junior subordinated debt	Dec. 31, 2012 general borrowings Series A-4 Junior Subordinated Debentures	Dec. 31, 2012 general borrowings Series A-5 Junior Subordinated Debentures	Dec. 31, 2012 general borrowings Loans and mortgages payable	Dec. 31, 2011 general borrowings Loans and mortgages payable	Dec. 31, 2012 general borrowings Liabilities connected to trust preferred stock	Dec. 31, 2011 general borrowings Liabilities connected to trust preferred stock	Dec. 31, 2012 borrowings supported by assets	Dec. 31, 2011 borrowings supported by assets	Dec. 31, 2012 borrowings supported by assets Notes and bonds payable item	Dec. 31, 2011 borrowings supported by assets Notes and bonds payable	Dec. 31, 2012 borrowings supported by assets Notes and bonds payable Series AIGFP	Dec. 31, 2011 borrowings supported by assets Notes and bonds payable Series AIGFP	Dec. 31, 2011 borrowings supported by assets Loans and mortgages payable	Dec. 31, 2012 borrowings supported by assets MIP notes payable	Dec. 31, 2011 borrowings supported by assets MIP notes payable	Dec. 31, 2012 borrowings supported by assets GIAs	Dec. 31, 2011 borrowings supported by assets GIAs	Dec. 31, 2012 Debt not guaranteed	Dec. 31, 2011 Debt not guaranteed	Dec. 31, 2012 Debt not guaranteed International Lease Finance Corporation (ILFC)	Dec. 31, 2011 Debt not guaranteed International Lease Finance Corporation (ILFC)	Dec. 31, 2011 Debt not guaranteed Junior subordinated debt International Lease Finance Corporation (ILFC)	Dec. 31, 2011 Debt not guaranteed Notes and bonds payable, ECA Facility, bank financings and other secured financings International Lease Finance Corporation (ILFC)	Dec. 31, 2012 Debt not guaranteed Other subsidiaries notes, bonds, loans and mortgages payable	Dec. 31, 2011 Debt not guaranteed Other subsidiaries notes, bonds, loans and mortgages payable	Dec. 31, 2012 Debt not guaranteed Debt of consolidated investments	Dec. 31, 2011 Debt not guaranteed Debt of consolidated investments	Dec. 31, 2012 Debt not guaranteed Debt of consolidated investments AIG Global Real Estate Investment Corp.	Dec. 31, 2011 Debt not guaranteed Debt of consolidated investments AIG Global Real Estate Investment Corp.	Dec. 31, 2012 Debt not guaranteed Debt of consolidated investments AIG Credit Corp.	Dec. 31, 2011 Debt not guaranteed Debt of consolidated investments AIG Credit Corp.	Dec. 31, 2012 Debt not guaranteed Debt of consolidated investments SunAmerica	Dec. 31, 2011 Debt not guaranteed Debt of consolidated investments SunAmerica
Senior Notes Offering
Interest rates, low end of range (as a percent)																									2.50%		6.63%			4.88%				1.09%		7.57%				0.18%		0.06%			0.38%		3.50%						4.54%	0.50%	0.24%		0.03%
Interest rates, high end of range (as a percent)																									8.13%		7.50%			8.63%				9.00%		8.50%				10.37%		8.25%			8.59%		9.80%						6.25%	8.88%	8.29%		7.15%
Interest rate (as a percent)													6.45%	7.70%															2.38%			6.45%	7.70%
Balance at the end of the period	$ 48,500,000,000	$ 75,253,000,000	$ 183,000,000	$ 221,000,000	$ 3,329,000,000	$ 3,560,000,000	$ 9,287,000,000	$ 10,138,000,000	$ 14,334,000,000	$ 12,725,000,000	$ 9,416,000,000	$ 9,327,000,000			$ 325,000,000	$ 325,000,000	$ 104,000,000	$ 221,000,000	$ 46,361,000,000	$ 48,643,000,000	$ 25,466,000,000	$ 23,923,000,000	$ 79,000,000	$ 79,000,000	$ 14,084,000,000	$ 12,725,000,000	$ 298,000,000	$ 298,000,000	$ 250,000,000	$ 9,416,000,000	$ 9,327,000,000			$ 79,000,000	$ 234,000,000	$ 1,339,000,000	$ 1,339,000,000	$ 20,895,000,000	$ 24,720,000,000	$ 1,554,000,000	$ 2,316,000,000	$ 3,544,000,000	$ 3,807,000,000	$ 486,000,000	$ 9,296,000,000	$ 10,147,000,000	$ 6,501,000,000	$ 7,964,000,000	$ 2,139,000,000	$ 26,610,000,000		$ 24,364,000,000	$ 999,000,000	$ 23,365,000,000	$ 325,000,000	$ 393,000,000	$ 1,814,000,000	$ 1,853,000,000	$ 1,500,000,000	$ 1,500,000,000	$ 176,000,000	$ 233,000,000	$ 133,000,000	$ 91,000,000
Debt reclassified to liabilities of businesses held for sale																																																			24,300,000,000
Maturities of long-term debt, excluding borrowings of consolidated investments
Total	48,500,000,000	75,253,000,000	183,000,000	221,000,000	3,329,000,000	3,560,000,000	9,287,000,000	10,138,000,000	14,334,000,000	12,725,000,000	9,416,000,000	9,327,000,000			325,000,000	325,000,000	104,000,000	221,000,000	46,361,000,000	48,643,000,000	25,466,000,000	23,923,000,000	79,000,000	79,000,000	14,084,000,000	12,725,000,000	298,000,000	298,000,000	250,000,000	9,416,000,000	9,327,000,000			79,000,000	234,000,000	1,339,000,000	1,339,000,000	20,895,000,000	24,720,000,000	1,554,000,000	2,316,000,000	3,544,000,000	3,807,000,000	486,000,000	9,296,000,000	10,147,000,000	6,501,000,000	7,964,000,000	2,139,000,000	26,610,000,000		24,364,000,000	999,000,000	23,365,000,000	325,000,000	393,000,000	1,814,000,000	1,853,000,000	1,500,000,000	1,500,000,000	176,000,000	233,000,000	133,000,000	91,000,000
2013	3,189,000,000														43,000,000						1,546,000,000				1,469,000,000									77,000,000				1,600,000,000		366,000,000		3,000,000			851,000,000		380,000,000
2014	2,740,000,000														11,000,000						500,000,000				500,000,000													2,229,000,000		31,000,000					1,613,000,000		585,000,000
2015	3,088,000,000														22,000,000						1,251,000,000				999,000,000				250,000,000					2,000,000				1,815,000,000		193,000,000					1,021,000,000		601,000,000
2016	3,720,000,000														3,000,000						1,738,000,000				1,738,000,000													1,979,000,000		329,000,000					1,329,000,000		321,000,000
2017	5,795,000,000														5,000,000						1,455,000,000				1,455,000,000													4,335,000,000		104,000,000					3,971,000,000		260,000,000
Thereafter	28,154,000,000														241,000,000						18,976,000,000				7,923,000,000		298,000,000			9,416,000,000						1,339,000,000		8,937,000,000		531,000,000		3,541,000,000			511,000,000		4,354,000,000
Borrowings of consolidated investments	1,800,000,000
Long-term debt excluding borrowings of consolidated investments	46,686,000,000
Uncollateralized and collateralized notes, bonds, loans and mortgages payable	$ 404,000,000															$ 325,000,000							$ 79,000,000
Minimum number of financial or other indices that are linked to payment terms of structured debt instruments																																								1

DEBT OUTSTANDING (Details 2) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended						12 Months Ended			24 Months Ended					1 Months Ended	12 Months Ended	3 Months Ended		12 Months Ended	3 Months Ended	12 Months Ended	3 Months Ended		12 Months Ended	3 Months Ended	12 Months Ended
	Nov. 30, 2011 USD ($)	Dec. 31, 2012 USD ($)	Jun. 30, 2012 USD ($)	Mar. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Jun. 30, 2011 USD ($)	Mar. 31, 2011 USD ($)	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2008 Junior subordinated debt USD ($) item	Dec. 31, 2012 Series A-3 Junior Subordinated Debentures	Dec. 31, 2012 Series A-2 Junior Subordinated Debentures	Dec. 31, 2012 Series A-4 Junior Subordinated Debentures	Dec. 31, 2012 Series A-5 Junior Subordinated Debentures	Aug. 31, 2012 Subordinated Notes USD ($)	Dec. 31, 2012 Subordinated Notes	Dec. 31, 2011 Exchange of notes Series A-1 Junior Subordinated Debentures USD ($)	Dec. 31, 2011 Exchange of notes Series A-2 and Series A-8 Junior Subordinated Debentures GBP (£)	Dec. 31, 2011 Exchange of notes Series A-2 and Series A-8 Junior Subordinated Debentures USD ($)	Dec. 31, 2011 Exchange of notes Series A-3 Junior Subordinated Debentures EUR (€)	Dec. 31, 2011 Exchange of notes Series A-3 Junior Subordinated Debentures USD ($)	Dec. 31, 2011 Exchange of notes 6.820 percent new Dollar notes due November 15, 2037 USD ($)	Dec. 31, 2011 Exchange of notes 6.765 percent new Sterling notes due November 15, 2017 GBP (£)	Dec. 31, 2011 Exchange of notes 6.765 percent new Sterling notes due November 15, 2017 USD ($)	Dec. 31, 2011 Exchange of notes 6.797 percent Euro notes due November 15, 2017 EUR (€)	Dec. 31, 2011 Exchange of notes 6.797 percent Euro notes due November 15, 2017 USD ($)
Senior Notes Offering
Amount of debt issued											$ 12,500					$ 250
Number of series of securities in which debt is issued											8
Original amount of debt converted									2,392									312	812	1,260	591	766
Converted amount debt instrument									1,843														256	662	1,030	421	545
Interest rate (as a percent)												4.875%	5.75%	6.45%	7.70%	2.375%							6.82%	6.765%	6.765%	6.797%	6.797%
Deferred gain on conversion of debt	65
Net gain (loss) on extinguishment of debt	$ 484	$ 41	$ (11)	$ (21)	$ 484	$ (79)	$ (3,313)	$ (9)	$ (2,847)	$ (104)
Period prior to the date of repayment, redemption or purchase within which a specified amount of net cash proceeds is to be received																	360 days

- Definition

Difference between the fair value of payments made and the carrying amount of debt which is extinguished prior to maturity.

+ References+ Details

DEBT OUTSTANDING (Details 4) (USD $)	0 Months Ended	12 Months Ended
DEBT OUTSTANDING (Details 4) (USD $)	Oct. 05, 2012 364-day syndicated credit facility	Dec. 31, 2012 4-Year Syndicated Facility	Dec. 31, 2012 Previous four-year syndicated credit facility	Oct. 05, 2012 Previous four-year syndicated credit facility
Credit Facilities
Line of credit facilities, term of credit agreements	364 days	4 years	4 years
Maximum borrowing capacity	$ 1,500,000,000	$ 4,000,000,000		$ 3,000,000,000
Remaining borrowing capacity		3,037,000,000
Letter of credit sublimit		2,000,000,000		1,500,000,000
Letter of credit outstanding		$ 1,000,000,000		$ 1,000,000,000

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details) (USD $)	12 Months Ended	0 Months Ended				12 Months Ended				0 Months Ended	12 Months Ended				1 Months Ended					1 Months Ended		12 Months Ended			1 Months Ended			12 Months Ended					12 Months Ended
	Dec. 31, 2012	Nov. 29, 2012 Chartis U.S. item	Sep. 30, 2012 Consolidated 2008 Securities Litigation complaint	Mar. 20, 2009 Consolidated 2008 Securities Litigation complaint	Mar. 19, 2009 ERISA Litigation II complaint	Dec. 31, 2012 Canadian Securities Class Action claim	Dec. 31, 2012 Starr International Litigation	Dec. 31, 2012 Brookfield litigation related to AIGFP	Dec. 31, 2012 Fitzpatrick matter	Dec. 15, 2012 Behm matter	Dec. 31, 2012 Behm matter	Oct. 02, 2010 Behm matter action	Dec. 31, 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	Dec. 31, 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	Dec. 31, 2012 Consolidated 2004 Securities Litigation individual shareholder Objector	Dec. 31, 2011 Consolidated 2004 Securities Litigation fund	Dec. 31, 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	Dec. 31, 2012 Workers' compensation Premium Reporting	Dec. 31, 2012 Caremark complaint	Dec. 31, 2012 Use of SSDMF	Dec. 31, 2012 The Multi-District Litigation case conspiracy complaint state class action defendant	May 20, 2011 The Multi-District Litigation	Dec. 31, 2012 The Heritage Corp. of South Florida v. National Union Fire Ins. Co. item
LITIGATION, INVESTIGATIONS AND REGULATORY MATTERS
Increase (decrease) in estimated litigation liability	$ 783,000,000
Number of purported class action complaints consolidated			4	8	8																								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%
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
Range of loss, maximum									274,000,000
Number of actions brought against AIG												2
Counterclaim sought by AIG											3,600,000
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										10,500,000											725,000,000										37,000,000
Number of objectors to class action suit settlement																						2
Number of shareholders who have submitted timely and valid requests to opt out of the class																						25
Shareholders maximum ownership percentage who have requested to opt out of the class																						1.50%
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
Amount paid under the terms of the separate settlement agreement with Florida																				4,000,000
Number of objectors appealing the final approval of the settlement																						2
Minimum number of conspiracies alleged																															1
Number of separate derivative actions filed																															24
Number of parallel actions																															2
Number of defendants who have settled																															3
Number of states asserted antitrust law violations																															48
Employee Benefits Complaint, number of purported classes																															2
Accrued loss contingency																																7,000,000
Number of consolidated actions																																	2
Damages sought, in excess																										3,000,000,000	1,000,000,000						75,000
Number of cases that have proceeded																															4
Number of intervening plaintiffs																									7
Settlement agreement, escrow																												450,000,000
Settlement agreement, amount which can be paid out of the remaining balance in Workers Compensation Fund																												191,000,000
Increase in the estimated reserves for incurred but not reported death claims																														55,000,000
Payments for regulatory assessment																														11,000,000
Settlement agreement, number of jurisdictions		50
Civil penalty paid		$ 50,000,000

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details 2) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Future minimum lease payments under operating leases
2013	$ 390,000,000
2014	282,000,000
2015	207,000,000
2016	171,000,000
2017	138,000,000
Remaining years after 2017	310,000,000
Total	1,498,000,000
Rent expense	445,000,000	482,000,000	587,000,000
Other Commitments
Other Commitments	2,300,000,000
Flight Equipment
HELD-FOR-SALE CLASSIFICATION
Number of used aircraft	5
Number of new spare engines deliverable	9
Minimum future rental income
2013	3,854,000,000
2014	3,344,000,000
2015	2,631,000,000
2016	2,001,000,000
2017	1,347,000,000
Remaining years after 2017	1,628,000,000
Total	14,805,000,000
Flight Equipment \| Minimum
Minimum future rental income
Remaining terms of operating leases	1 year
Flight Equipment \| Maximum
Minimum future rental income
Remaining terms of operating leases	14 years
International Lease Finance Corporation (ILFC) \| Flight Equipment
HELD-FOR-SALE CLASSIFICATION
Aggregate estimated total remaining payments	17,500,000,000
International Lease Finance Corporation (ILFC) \| New Aircraft
HELD-FOR-SALE CLASSIFICATION
Purchase commitment, number of aircraft purchased	229
International Lease Finance Corporation (ILFC) \| Additional Aircraft
HELD-FOR-SALE CLASSIFICATION
Purchase commitment, number of aircraft purchased	4
International Lease Finance Corporation (ILFC) \| A320 New Engine Option (neo)
HELD-FOR-SALE CLASSIFICATION
Number of additional aircraft the entity has the right to purchase	50
Segment Discontinued Operations
Future minimum lease payments under operating leases
Rent expense	$ 16,000,000	$ 37,000,000	$ 129,000,000

CONTINGENCIES, COMMITMENTS AND GUARANTEES (Details 3) (USD $)	0 Months Ended		12 Months Ended
	Nov. 08, 2012	Apr. 30, 2012	Dec. 31, 2012
MetLife Inc. (MetLife)
Guarantees
Payments made or placed in escrow accounts at end of period			$ 567,000,000
Amount released in accordance with the MetLife escrow agreement from the sale of ALICO	33,000,000	44,000,000	950,000,000
Amount required to be held in escrow			0
Standby letters of credit
Guarantees
Amount outstanding under standby letters of credit at end of period			306,000,000
Tax indemnification \| MetLife Inc. (MetLife)
Guarantees
Maximum amount exposed under guarantee			200,000,000
Aggregate deductible amount under guarantee			$ 50,000,000

TOTAL EQUITY (Details) (USD $) In Billions, except Share data, unless otherwise specified	12 Months Ended						1 Months Ended				12 Months Ended				12 Months Ended		12 Months Ended			12 Months Ended		1 Months Ended	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 Common Stock Issued	Dec. 31, 2011 Common Stock Issued	Dec. 31, 2010 Common Stock Issued	Sep. 30, 2012 Treasury Stock	Aug. 31, 2012 Treasury Stock	May 31, 2012 Treasury Stock	Mar. 31, 2012 Treasury Stock	Dec. 31, 2012 Treasury Stock	Dec. 31, 2011 Treasury Stock	Dec. 31, 2010 Treasury Stock	Dec. 31, 2011 Equity Units	Dec. 31, 2011 Series E Preferred Stock	Dec. 31, 2009 Series E Preferred Stock	Dec. 31, 2011 Series F Preferred Stock	Dec. 31, 2010 Series F Preferred Stock	Dec. 31, 2009 Series F Preferred Stock	Dec. 31, 2011 Series C Preferred Stock	Dec. 31, 2009 Series C Preferred Stock	Jan. 31, 2011 Series G	Dec. 31, 2011 Series G Preferred Stock
The following table presents a roll forward of outstanding shares:
Shares, beginning of year	(9,746,617)										(9,746,617)	(6,660,908)	(6,661,356)
Shares, beginning of year	1,906,568,099			1,906,568,099	147,124,067	141,732,263								1,800,000,000
Shares, beginning of year															400,000	400,000	300,000		300,000	100,000	100,000
Shares, beginning of year	1,896,821,482	140,463,159	135,070,907
Issuances (in shares)	729,308	100,799,653	5,391,804	43,581	100,799,653	5,391,804																20,000	20,000
Issuances (in shares)											685,727
Settlement of equity unit stock purchase contracts (in shares)		3,606,417			3,606,417
Shares exchanged		1,655,026,284	448		1,655,037,962										(400,000)		(300,000)			(100,000)
Shares exchanged												(11,678)	448
Shares purchased	(421,228,855)	(3,074,031)					(153,846,153)	(98,360,656)	(65,573,770)	(103,448,276)	(421,228,855)	(3,074,031)
Shares cancelled																							(20,000)
Shares, end of period	(430,289,745)	(9,746,617)									(430,289,745)	(9,746,617)	(6,660,908)
Shares, end of period	1,906,611,680	1,906,568,099		1,906,611,680	1,906,568,099	147,124,067								1,800,000,000
Shares, end of period																400,000			300,000		100,000
Shares, end of period	1,476,321,935	1,896,821,482	140,463,159
Amount outstanding under the Department of the Treasury Commitment																		$ 7.5

TOTAL EQUITY (Details 2) (USD $)

12 Months Ended

0 Months Ended

Dec. 31, 2011

Jan. 14, 2011

Dec. 31, 2011

Common Stock Issued

Dec. 31, 2011

Preferred Stock

Dec. 31, 2011

Additional Paid-in Capital

Dec. 31, 2011

Series E

Preferred Stock

Dec. 31, 2010

Series E

Preferred Stock

Dec. 31, 2009

Series E

Preferred Stock

Dec. 31, 2011

Series F

Preferred Stock

Dec. 31, 2010

Series F

Preferred Stock

Dec. 31, 2009

Series F

Preferred Stock

Dec. 31, 2011

Series C

Preferred Stock

Dec. 31, 2010

Series C

Preferred Stock

Dec. 31, 2009

Series C

Preferred Stock

Jan. 14, 2011

Recapitalization

Jan. 14, 2011

Recapitalization

Common Stock Issued

Jan. 14, 2011

Recapitalization

Additional Paid-in Capital

Jan. 14, 2011

Recapitalization

Retained Earnings (Accumulated Deficit)

Jan. 14, 2011

Recapitalization

Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York

Dec. 31, 2012

Recapitalization

Series E

Preferred Stock

Jan. 14, 2011

Recapitalization

Series E

Preferred Stock

Dec. 31, 2012

Recapitalization

Series F

Preferred Stock

Jan. 14, 2011

Recapitalization

Series F

Preferred Stock

Dec. 31, 2012

Recapitalization

Series C

Preferred Stock

Jan. 14, 2011

Recapitalization

Series C

Preferred Stock

Dec. 31, 2012

Recapitalization

Series G

Preferred Stock

Jan. 31, 2011

Recapitalization

Series G

Preferred Stock

Jan. 14, 2011

Recapitalization

Other assets

Jan. 14, 2011

Recapitalization

Other liabilities

Jan. 14, 2011

Recapitalization

Federal Reserve Bank of New York credit facility

Jan. 14, 2011

Recapitalization

Redeemable noncontrolling nonvoting, callable, junior preferred interests held by Department of Treasury

Effect of Recapitalization

Preferred stock, par value (in dollars per share)

$ 5.00

Repayment and Termination of FRBNY Credit Facility

$ (21,000,000,000)

$ (20,689,000,000)

Repayment and Termination of FRBNY Credit Facility, including recognition of deferred gain

(325,000,000)

Repayment and Termination of FRBNY Credit Facility, including write-off of prepaid commitment fee

(24,297,000,000)

Repayment and Termination of FRBNY Credit Facility, amortization of prepaid commitment fees

(3,300,000,000)

(3,283,000,000)

Repurchase and Exchange of SPV Preferred interests

(6,140,000,000)

Repurchase and Exchange of SPV Preferred interests

20,677,000,000

^[1]

(4,138,000,000)

^[1]

(67,460,000,000)

^[1]

20,292,000,000

Repayment of FRBNY SPV Preferred Interests

(26,432,000,000)

^[1]

(26,432,000,000)

Exchange of Preferred Stock for Common Stock Value

(71,983,000,000)

(41,605,000,000)

(7,378,000,000)

(23,000,000,000)

4,138,000,000

67,845,000,000

Total Effect of Recapitalization

4,138,000,000

67,845,000,000

(3,283,000,000)

(26,432,000,000)

(41,605,000,000)

(7,378,000,000)

(23,000,000,000)

(30,437,000,000)

(325,000,000)

(20,689,000,000)

20,292,000,000

Exchange of Preferred Stock for Common Stock shares

1,655,037,962

Preferred stock, shares issued

400,000

300,000

100,000

20,000

Preferred stock, aggregate liquidation value

$ 0

[1]	See Notes 18 and 25 to Consolidated Financial Statements.

TOTAL EQUITY (Details 3) (USD $)	1 Months Ended	3 Months Ended						12 Months Ended				1 Months Ended							12 Months Ended	20 Months Ended			1 Months Ended				12 Months Ended		0 Months Ended		1 Months Ended	12 Months Ended		1 Months Ended			12 Months Ended					12 Months Ended
TOTAL EQUITY (Details 3) (USD $)	Nov. 30, 2011	Dec. 31, 2012	Jun. 30, 2012	Mar. 31, 2012	Dec. 31, 2011	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	May 31, 2011	Dec. 31, 2012 Common Stock	Sep. 30, 2012 Common Stock	Aug. 31, 2012 Common Stock	May 31, 2012 Common Stock	Mar. 31, 2012 Common Stock	Nov. 30, 2011 Common Stock	May 31, 2011 Common Stock	Dec. 31, 2010 Common Stock	Dec. 31, 2012 Common Stock	Dec. 31, 2011 Common Stock	Dec. 31, 2009 Common Stock	Sep. 30, 2012 Treasury Stock	Aug. 31, 2012 Treasury Stock	May 31, 2012 Treasury Stock	Mar. 31, 2012 Treasury Stock	Dec. 31, 2012 Treasury Stock	Dec. 31, 2011 Treasury Stock	Nov. 29, 2010 Equity Units	Nov. 23, 2010 Equity Units item	May 31, 2008 Equity Units	Dec. 31, 2012 Equity Units	Dec. 31, 2011 Equity Units item	May 31, 2008 Series B-1 Debentures	May 31, 2008 Series B-2 Debentures	May 31, 2008 Series B-3 Debentures	Dec. 31, 2010 Additional Paid-in Capital	Dec. 31, 2011 Preferred Stock	Dec. 31, 2010 Preferred Stock	Dec. 31, 2011 Series E Preferred Stock	Dec. 31, 2009 Series E Preferred Stock	Dec. 31, 2011 Series F Preferred Stock	Dec. 31, 2010 Series F Preferred Stock	Dec. 31, 2011 Series C Preferred Stock	Dec. 31, 2009 Series C Preferred Stock
Rollforward of preferred stock
Balance																																						$ 71,983,000,000	$ 69,784,000,000	$ 41,605,000,000	$ 41,605,000,000	$ 7,378,000,000	$ 5,179,000,000	$ 23,000,000,000	$ 23,000,000,000
AIG Series F drawdown									20,292,000,000	2,199,000,000																													2,199,000,000				2,199,000,000
Shares Exchanged																																						(71,983,000,000)		(41,605,000,000)		(7,378,000,000)		(23,000,000,000)
Balance																																							71,983,000,000		41,605,000,000		7,378,000,000		23,000,000,000
Share Issuances and Repurchases
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 Treasury before public offering (in shares)											1,700,000,000
Initial public offering price (in dollars per share)												$ 32.50	$ 32.50	$ 30.50	$ 30.50	$ 29.00		$ 29.00		$ 32.50
Common stock sold by the Department of the Treasury (in shares)												234,169,156	636,923,075	188,524,590	188,524,589	206,896,552		200,000,000		1,655,037,962
Proceeds from sale of common stock by the Department of the Treasury												7,610,000,000	20,700,000,000	5,750,000,000	5,750,000,000	6,000,000,000		5,800,000,000		51,610,000,000
Shares repurchased (in shares)								421,228,855	3,074,031														153,846,153	98,360,656	65,573,770	103,448,276	421,228,855	3,074,031
Shares repurchased								13,000,000,000	70,000,000														5,000,000,000	3,000,000,000	2,000,000,000	3,000,000,000	13,000,000,000	70,000,000
Aggregate purchase amount																	1,000,000,000
Equity Units
Sale of equity units (in shares)																															78,400,000
Proceeds from the sale of equity units, per share																															$ 75
Proceeds from sale of equity units																															5,880,000,000
Cash per equity unit exchange under stock purchase contract (in dollars per share)																																$ 25
Present value of future contract adjustment payments related to issuance of equity units																																431,000,000
Future contract adjustment payments expressed as a percentage of the stated amount																																2.71%
Amount of debt issued																																		1,960,000,000	1,960,000,000	1,960,000,000
Interest rate (as a percent)																																		5.67%	5.82%	5.89%
Maximum number of equity units that the entity has commenced an offer to exchange under stock purchase contract (in shares)																														74,480,000
Common stock per equity unit exchange (in shares)																														0.09867
Cash per equity unit exchange (in dollars per share)																														$ 3.2702
Number of transactions in relation to equity units exchange offer																														2
Number of equity units exchanged																													49,474,600
Equity units exchange, common stock portion (in shares)																													4,881,667
Equity units exchange, cash portion																													162,000,000
Number of equity units outstanding (in shares)																																28,925,400
Net loss on extinguishment of debt	(484,000,000)	(41,000,000)	11,000,000	21,000,000	(484,000,000)	79,000,000	3,313,000,000	9,000,000	2,847,000,000	104,000,000																			104,000,000
Increase (Decrease) to equity on execution of the Exchange Offer										3,657,000,000									12,000,000										3,700,000,000								3,645,000,000
Number of series of debentures remarketed																																	3
Retirement of debentures																																	$ 2,200,000,000
Common stock issued in connection with settlement of the stock purchase contract portion of the Equity Units (in shares)		1,906,611,680			1,906,568,099			1,906,611,680	1,906,568,099			1,906,611,680							147,124,067	1,906,611,680	1,906,568,099	141,732,263											1,800,000,000

TOTAL EQUITY (Details 4) (USD $)	12 Months Ended										12 Months Ended				12 Months Ended				12 Months Ended
TOTAL EQUITY (Details 4) (USD $)	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2012 Accumulated Other Comprehensive Income (Loss)	Dec. 31, 2011 Accumulated Other Comprehensive Income (Loss)	Dec. 31, 2010 Accumulated Other Comprehensive Income (Loss)	Dec. 31, 2012 Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized	Dec. 31, 2011 Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized	Dec. 31, 2010 Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized	Dec. 31, 2009 Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Recognized Increases (decreases) from previously reported amounts New Accounting Pronouncement - Other-than-temporary Impairments	Dec. 31, 2012 Unrealized Appreciation (Depreciation) of All Other Investments	Dec. 31, 2011 Unrealized Appreciation (Depreciation) of All Other Investments	Dec. 31, 2010 Unrealized Appreciation (Depreciation) of All Other Investments	Dec. 31, 2009 Unrealized Appreciation (Depreciation) of All Other Investments Increases (decreases) from previously reported amounts New Accounting Pronouncement - Other-than-temporary Impairments	Dec. 31, 2012 Foreign Currency Translation Adjustments	Dec. 31, 2011 Foreign Currency Translation Adjustments	Dec. 31, 2010 Foreign Currency Translation Adjustments	Dec. 31, 2009 Foreign Currency Translation Adjustments Increases (decreases) from previously reported amounts New Accounting Pronouncement - Other-than-temporary Impairments	Dec. 31, 2012 Net Derivative Gains (Losses) Arising From Cash Flow Hedging Activities	Dec. 31, 2011 Net Derivative Gains (Losses) Arising From Cash Flow Hedging Activities	Dec. 31, 2010 Net Derivative Gains (Losses) Arising From Cash Flow Hedging Activities	Dec. 31, 2012 Change in Retirement Plan Liabilities Adjustment	Dec. 31, 2011 Change in Retirement Plan Liabilities Adjustment	Dec. 31, 2010 Change in Retirement Plan Liabilities Adjustment
A rollforward of Accumulated Other Comprehensive Income (Loss)
Balance, beginning of period, net of tax	$ 6,481,000,000			$ 6,481,000,000	$ 8,871,000,000	$ 7,021,000,000	$ (711,000,000)	$ (634,000,000)	$ (1,785,000,000)		$ 8,575,000,000	$ 9,855,000,000	$ 7,829,000,000		$ (409,000,000)	$ 553,000,000	$ 2,249,000,000		$ (17,000,000)	$ (34,000,000)	$ (128,000,000)	$ (957,000,000)	$ (869,000,000)	$ (1,144,000,000)
Change attributable to divestitures																	1,800,000,000
Cumulative effect of change in accounting principle			(9,347,000,000)			(932,000,000)				(76,000,000)				(168,000,000)				(688,000,000)
Change in unrealized appreciation (depreciation) of investments				10,710,000,000	5,518,000,000	9,910,000,000
Change in unrealized appreciation (depreciation) of investments	7,132,000,000	(1,123,000,000)	3,920,000,000								8,404,000,000	5,463,000,000	7,265,000,000
Total, Other-Than-Temporary Impairments in AOCI	(2,172,000,000)	(89,000,000)	(2,522,000,000)				2,306,000,000	55,000,000	2,645,000,000
Change in deferred acquisition costs adjustment and other				(889,000,000)	(630,000,000)	(657,000,000)	(49,000,000)	11,000,000	(166,000,000)		(840,000,000)	(641,000,000)	(491,000,000)
Change in future policy benefits				(517,000,000)	(2,302,000,000)		(85,000,000)				(432,000,000)	(2,302,000,000)
Changes in foreign currency translation adjustments	(33,000,000)	(1,778,000,000)	(1,703,000,000)	(33,000,000)	(97,000,000)	654,000,000									(33,000,000)	(97,000,000)	654,000,000
Change in net derivative gains (losses) arising from cash flow hedging activities	33,000,000	51,000,000	111,000,000	33,000,000	51,000,000	105,000,000													33,000,000	51,000,000	105,000,000
Net actuarial gain (loss)				(273,000,000)	(752,000,000)	(1,000,000)																(273,000,000)	(752,000,000)	(1,000,000)
Prior service credit				(46,000,000)	387,000,000	10,000,000																(46,000,000)	387,000,000	10,000,000
Change attributable to divestitures and deconsolidations					(5,041,000,000)	(4,872,000,000)		23,000,000	43,000,000			(3,643,000,000)	(2,854,000,000)			(1,681,000,000)	(2,357,000,000)				6,000,000		260,000,000	290,000,000
Deferred tax asset (liability)	(2,889,000,000)	262,000,000	(2,186,000,000)	(2,889,000,000)	262,000,000	(2,186,000,000)
Deferred tax asset (liability)	(886,000,000)	(163,000,000)	(1,293,000,000)				(886,000,000)	(163,000,000)	(1,293,000,000)
Deferred tax asset (liability)	(2,252,000,000)	(362,000,000)	(1,627,000,000)								(2,252,000,000)	(362,000,000)	(1,627,000,000)
Deferred tax asset (liability)	33,000,000	786,000,000	775,000,000												33,000,000	786,000,000	775,000,000
Deferred tax asset (liability)	(16,000,000)	(34,000,000)	(17,000,000)																(16,000,000)	(34,000,000)	(17,000,000)
Deferred tax asset (liability)	232,000,000	35,000,000	(24,000,000)																			232,000,000	35,000,000	(24,000,000)
Other comprehensive income (loss)	6,096,000,000	(2,604,000,000)	2,963,000,000	6,096,000,000	(2,604,000,000)	2,963,000,000
Other comprehensive income (loss)	1,286,000,000	(74,000,000)	1,229,000,000				1,286,000,000	(74,000,000)	1,229,000,000
Other comprehensive income (loss)	4,880,000,000	(1,485,000,000)	2,293,000,000								4,880,000,000	(1,485,000,000)	2,293,000,000
Other comprehensive income (loss)		(992,000,000)	(928,000,000)													(992,000,000)	(928,000,000)
Other comprehensive income (loss)	17,000,000	17,000,000	94,000,000																17,000,000	17,000,000	94,000,000
Other comprehensive income (loss)	(87,000,000)	(70,000,000)	275,000,000																			(87,000,000)	(70,000,000)	275,000,000
Acquisition of noncontrolling interest		(560,000,000)			93,000,000							45,000,000				66,000,000							(18,000,000)
Noncontrolling interests				3,000,000	(121,000,000)	181,000,000
Noncontrolling interests								3,000,000	2,000,000
Noncontrolling interests											9,000,000	(160,000,000)	99,000,000
Noncontrolling interests															(6,000,000)	36,000,000	80,000,000
Balance, end of period, net of tax	12,574,000,000	6,481,000,000		12,574,000,000	6,481,000,000	8,871,000,000	575,000,000	(711,000,000)	(634,000,000)		13,446,000,000	8,575,000,000	9,855,000,000		(403,000,000)	(409,000,000)	553,000,000			(17,000,000)	(34,000,000)	(1,044,000,000)	(957,000,000)	(869,000,000)
Reduction of deferred acquisition costs												152,000,000
Foreign currency cumulative translation adjustment transferred to earnings as net gain on sale		1,681,000,000	2,357,000,000
Unrealized appreciation (depreciation) of investments transferred to earnings as net gain on sale			$ 6,100,000,000

TOTAL EQUITY (Details 5) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than-Temporary Credit Impairments Were Taken
Unrealized change arising during period	$ 2,236	$ 84	$ 2,469
Less: Reclassification adjustments included in net income	64	(5)	(53)
Total, Other-Than-Temporary Impairments in AOCI	2,172	89	2,522
Less: Income tax expense (benefit)	886	163	1,293
Total other comprehensive income (loss), net of income tax expense (benefit)	1,286	(74)	1,229
Unrealized Appreciation (Depreciation) of All Other Investments
Unrealized change arising during period	8,896	4,222	9,270
Less: Reclassification adjustments included in net income	1,764	5,345	5,350
Total other comprehensive income (loss), before income tax expense (benefit)	7,132	(1,123)	3,920
Less: Income tax expense (benefit)	2,252	362	1,627
Total other comprehensive income (loss), net of income tax expense (benefit)	4,880	(1,485)	2,293
Foreign Currency Translation Adjustments
Unrealized change arising during period	(33)	(97)	654
Less: Reclassification adjustments included in net income		1,681	2,357
Total other comprehensive income (loss), before income tax expense (benefit)	(33)	(1,778)	(1,703)
Less: Income tax expense (benefit)	(33)	(786)	(775)
Total other comprehensive income (loss), net of income tax expense (benefit)		(992)	(928)
Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities
Unrealized change arising during period	(2)	(5)	(25)
Less: Reclassification adjustments included in net income	(35)	(56)	(136)
Total other comprehensive income (loss), before income tax expense (benefit)	33	51	111
Less: Income tax expense (benefit)	16	34	17
Total other comprehensive income (loss), net of income tax expense (benefit)	17	17	94
Change in Retirement Plan Liabilities Adjustment
Unrealized change arising during period	(406)	(440)	(89)
Less: Reclassification adjustments included in net income	(87)	(335)	(388)
Total other comprehensive income (loss), before income tax expense (benefit)	(319)	(105)	299
Less: Income tax expense (benefit)	(232)	(35)	24
Total other comprehensive income (loss), net of income tax expense (benefit)	(87)	(70)	275
Other Comprehensive Income (Loss) Reclassification Adjustments
Unrealized change arising during period	10,691	3,764	12,279
Less: Reclassification adjustments included in net income	1,706	6,630	7,130
Total other comprehensive income (loss), before income tax expense (benefit)	8,985	(2,866)	5,149
Less: Income tax expense (benefit)	2,889	(262)	2,186
Other comprehensive income (loss)	$ 6,096	$ (2,604)	$ 2,963

NONCONTROLLING INTERESTS (Details) (USD $)

3 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

Dec. 31, 2012

Sep. 30, 2012

Jun. 30, 2012

Mar. 31, 2012

Dec. 31, 2011

Sep. 30, 2011

Jun. 30, 2011

Mar. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2010

Jan. 14, 2011

Dec. 31, 2012

International Lease Finance Corporation (ILFC)

item

Dec. 31, 2012

International Lease Finance Corporation (ILFC)

Series A

Dec. 31, 2012

International Lease Finance Corporation (ILFC)

Series B

Dec. 31, 2012