American International (AIG) 10-K 26 Feb 10 2009 FY Annual report Financial data

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2009 - $364,358; 2008 - $373,600)	$365,462	$363,042
Bond trading securities, at fair value	31,243	37,248
Securities lending invested collateral, at fair value (cost: 2009 - $320; 2008 - $3,905)	277	3,844
Equity securities:
Common and preferred stock available for sale, at fair value (cost: 2009 - $6,464; 2008 - $8,381)	9,522	8,808
Common and preferred stock trading, at fair value	8,318	6,674
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2009 - $119; 2008 - $131)	27,461	34,687
Finance receivables, net of allowance	20,327	30,949
Flight equipment primarily under operating leases, net of accumulated depreciation	44,091	43,395
Other invested assets (portion measured at fair value: 2009 - $18,888; 2008 - $24,857)	45,235	57,639
Securities purchased under agreements to resell, at fair value	2,154	3,960
Short-term investments (portion measured at fair value: 2009 - $23,975; 2008 - $19,316)	47,075	46,666
Total investments	601,165	636,912
Cash	4,400	8,642
Accrued investment income	5,152	5,999
Premiums and other receivables, net of allowance	16,549	21,088
Reinsurance assets, net of allowance	22,425	23,495
Current and deferred income taxes	4,108	11,734
Deferred policy acquisition costs	40,814	45,782
Real estate and other fixed assets, net of accumulated depreciation	4,142	5,566
Unrealized gain on swaps, options and forward transactions, at fair value	9,130	13,773
Goodwill	6,195	6,952
Other assets, including prepaid commitment asset of $7,099 in 2009 and $15,458 in 2008 (portion measured at fair value: 2009 - $288; 2008 - $369)	18,976	29,333
Separate account assets, at fair value	58,150	51,142
Assets of businesses held for sale	56,379
Total assets	847,585	860,418
Liabilities:
Liability for unpaid claims and claims adjustment expense	85,386	89,258
Unearned premiums	21,363	25,735
Future policy benefits for life and accident and health insurance contracts	116,001	142,334
Policyholder contract deposits (portion measured at fair value: 2009 - $5,214; 2008 - $5,458)	220,128	226,700
Other policyholder funds	13,252	13,240
Commissions, expenses and taxes payable	4,950	5,436
Insurance balances payable	4,393	3,668
Funds held by companies under reinsurance treaties	774	2,133
Securities sold under agreements to repurchase (portion measured at fair value: 2009 - $3,221; 2008 - $4,508)	3,505	5,262
Securities and spot commodities sold but not yet purchased, at fair value	1,030	2,693
Unrealized loss on swaps, options and forward transactions, at fair value	5,403	6,238
Trust deposits and deposits due to banks and other depositors (portion measured at fair value: 2009 - $15; 2008 - $30)	1,385	4,498
Other liabilities (portion measured at fair value: 2009 - $0; 2008 - $1,355)	22,503	23,273
Commercial paper and other short-term debt		613
Federal Reserve Bank of New York Commercial Paper Funding Facility (portion measured at fair value: 2009 - $2,742; 2008 - $6,802)	4,739	15,105
Federal Reserve Bank of New York credit facility	23,435	40,431
Other long-term debt (portion measured at fair value: 2009 - $13,195; 2008 - $16,595)	113,298	137,054
Securities lending payable	256	2,879
Separate account liabilities	58,150	51,142
Liabilites of businesses held for sale	48,599
Total liabilities	748,550	797,692
Commitments, contingencies and guarantees (see Note 15)
Redeemable noncontrolling interest in partially owned consolidated subsidiaries (including $211 associated with businesses held for sale in 2009)	959	1,921
AIG shareholders' equity:
Preferred stock (See Note 16 for ownership details):	69,784	40,000
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2009 - 141,732,263; 2008 - 147,401,900	354	368
Treasury stock, at cost; 2009 - 6,661,356; 2008 - 12,918,446 shares of common stock	(874)	(8,450)
Additional paid-in capital	6,358	39,488
Accumulated deficit	(11,491)	(12,368)
Accumulated other comprehensive income (loss)	5,693	(6,328)
Total AIG shareholders' equity	69,824	52,710
Noncontrolling interests:
Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York	24,540
Other (including $2,234 associated with businesses held for sale in 2009)	3,712	8,095
Total noncontrolling interests	28,252	8,095
Total equity	98,076	60,805
Total liabilities and equity	847,585	860,418
Series E
AIG shareholders' equity:
Preferred stock (See Note 16 for ownership details):	41,605	0
Series E | Preferred stock
Noncontrolling interests:
Total equity	41,605	0
Series F
AIG shareholders' equity:
Preferred stock (See Note 16 for ownership details):	5,179	0
Series F | Preferred stock
Noncontrolling interests:
Total equity	5,179	0
Series C
AIG shareholders' equity:
Preferred stock (See Note 16 for ownership details):	23,000	0
Series C | Preferred stock
Noncontrolling interests:
Total equity	23,000	0
Series D
AIG shareholders' equity:
Preferred stock (See Note 16 for ownership details):		40,000
Series D | Preferred stock
Noncontrolling interests:
Total equity	$0	$40,000

Consolidated Balance Sheet (par

Consolidated Balance Sheet (parenthetical - assets and liabilities) (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Assets:
Bonds available for sale, amortized cost	$364,358	$373,600
Securities lending invested collateral, cost	320	3,905
Common and preferred stock available for sale, cost	6,464	8,381
Mortgage and other loans receivable, net of allowance, portion measured at fair value	119	131
Other invested assets, portion measured at fair value	18,888	24,857
Short-term investments, portion measured at fair value	23,975	19,316
Other assets: Prepaid commitment asset	7,099	15,458
Other assets, including prepaid commitment asset, portion measured at fair value	288	369
Liabilities:
Policyholder contract deposits, portion measured at fair value	5,214	5,458
Securities sold under agreements to repurchase, portion measured at fair value	3,221	4,508
Trust deposits and deposits due to banks and other depositors, portion measured at fair value	15	30
Other liabilities, portion measured at fair value	0	1,355
Federal Reserve Bank of New York Commercial Paper Funding Facility, portion measured at fair value	2,742	6,802
Other long-term debt, portion measured at fair value	13,195	16,595
Redeemable noncontrolling interests in partially owned consolidated subsidiaries, portion associated with businesses held for sale in 2009	$211

1_Consolidated Balance Sheet (p

Consolidated Balance Sheet (parenthetical - equity) (USD $)
	Dec. 31, 2009	Dec. 31, 2008
AIG shareholders' equity:
Common stock, par value (in dollars per share)	2.5	2.5
Common stock, authorized (in shares)	5,000,000,000	5,000,000,000
Common stock, issued (in shares)	141,732,263	147,401,900
Treasury stock, shares of common stock (in shares)	6,661,356	12,918,446
Noncontrolling interests, Other, portion associated with businesses held for sale in 2009	$2,234,000,000
Series E
AIG shareholders' equity:
Preferred stock, par value (in dollars per share)	$5
Preferred stock, issued (in shares)	400,000
Series F
AIG shareholders' equity:
Preferred stock, par value (in dollars per share)	$5
Preferred stock, issued (in shares)	300,000
Preferred stock, aggregate liquidation value (in dollars)	5,344,416,000
Series C
AIG shareholders' equity:
Preferred stock, par value (in dollars per share)	$5
Preferred stock, issued (in shares)	100,000
Preferred stock, aggregate liquidation value (in dollars)	$500,000
Series D
AIG shareholders' equity:
Preferred stock, par value (in dollars per share)		$5
Preferred stock, issued (in shares)		4,000,000

Consolidated Statement of Incom

Consolidated Statement of Income (Loss) (USD $)
In Millions, except Share data	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues:
Premiums and other considerations	$64,702	$78,564	$74,753
Net investment income	25,239	11,433	30,051
Net realized capital losses:
Total other-than-temporary impairments on available for sale securities	(7,008)	(48,146)	(3,692)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Accumulated other comprehensive loss	242
Net other-than-temporary impairments on available for sale securities recognized in net income (loss)	(6,766)	(48,146)	(3,692)
Other realized capital gains (losses)	(88)	(4,559)	191
Total net realized capital losses	(6,854)	(52,705)	(3,501)
Unrealized market valuation gains (losses) on AIGFP super senior credit default swap portfolio	1,418	(28,602)	(11,472)
Other income	11,499	(1,794)	13,801
Total revenues	96,004	6,896	103,632
Benefits, claims and expenses:
Policyholder benefits and claims incurred	61,436	58,839	62,452
Policy acquisition and other insurance expenses	20,674	26,284	19,819
Interest expense	15,369	17,007	4,751
Restructuring expenses and related asset impairment and other expenses	1,386	804
Net (gains) losses on sale of divested businesses	1,271
Other expenses	9,516	10,490	8,476
Total benefits, claims and expenses	109,652	113,424	95,498
Income (loss) from continuing operations before income tax expense (benefit)	(13,648)	(106,528)	8,134
Income tax expense (benefit):
Current	1,781	1,703	3,180
Deferred	(3,659)	(10,597)	(1,913)
Total income tax expense (benefit)	(1,878)	(8,894)	1,267
Income (loss) from continuing operations	(11,770)	(97,634)	6,867
Income (loss) from discontinued operations, net of income tax expense (benefit) (See Note 2)	(543)	(2,753)	621
Net income (loss)	(12,313)	(100,387)	7,488
Less: Net income (loss) from continuing operations attributable to noncontrolling interests:
Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York	140
Other	(1,527)	(944)	1,259
Total income (loss) from continuing operations attributable to noncontrolling interests	(1,387)	(944)	1,259
Income (loss) from discontinued operations attributable to noncontrolling interest	23	(154)	29
Total net income (loss) attributable to noncontrolling interests	(1,364)	(1,098)	1,288
Net income (loss) attributable to AIG	(10,949)	(99,289)	6,200
Net income (loss) attributable to AIG common shareholders	($12,244)	($99,689)	$6,200
Basic:
Income (loss) from continuing operations (in dollars per share)	-86.3	-737.12	43.4
Income (loss) from discontinued operations (in dollars per share)	-4.18	-19.73	4.58
Diluted:
Income (loss) from continuing operations (in dollars per share)	-86.3	-737.12	43.17
Income (loss) from discontinued operations (in dollars per share)	-4.18	-19.73	4.56
Dividends declared per common share (in dollars per share)		8.4	15.4
Weighted average shares outstanding:
Basic (in shares)	135,324,896	131,714,245	129,226,796
Diluted (in shares)	135,324,896	131,714,245	129,901,035

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (Loss) (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Net income (loss)	($12,313)	($100,387)	$7,488
Other comprehensive income (loss):
Cumulative effect of change in accounting principle		(162)
Income tax benefit on above change in accounting principle		57
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken	2,048
Income tax benefit (expense) on above changes	(724)
Unrealized appreciation (depreciation) of all other investments - net of reclassification adjustments	27,891	(13,966)	(8,115)
Income tax benefit (expense) on above changes	(9,802)	4,948	2,338
Foreign currency translation adjustments	2,932	(1,398)	1,420
Income tax benefit (expense) on above changes	(1,005)	356	(140)
Net derivative gains (losses) arising from cash flow hedging activities-net of reclassification adjustments	95	(156)	(133)
Income tax benefit (expense) on above changes	(32)	52	73
Change in retirement plan liabilities adjustment	370	(1,325)	173
Income tax benefit (expense) on above changes	(16)	352	(57)
Other comprehensive income (loss)	21,757	(11,242)	(4,441)
Comprehensive income (loss)	9,444	(111,629)	3,047
Comprehensive income (loss) attributable to noncontrolling interests	(1,116)	(1,369)	1,314
Comprehensive income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York	140
Comprehensive income (loss) attributable to AIG	$10,420	($110,260)	$1,733

Consolidated Statement of Share

Consolidated Statement of Shareholders' Equity (USD $)
In Millions	Series E Preferred stock	Series F Preferred stock	Series C Preferred stock	Series D Preferred stock	Total AIG Shareholders' Equity	Preferred stock	Common Stock	Treasury Stock	Additional Paid-in Capital	Payments Advanced to Purchase Stock	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests		Total
Balance at Dec. 31, 2006	$0	$0	$0	$0	$101,677	$0	$344	($1,897)	$9,124	$0	$84,996	$9,110	$5,360		$107,037
Increase (decrease) in equity
Common stock issued under stock plans					207			305	(98)						207
Shares purchased					(16)			(5,104)		5,088					(16)
Payments advanced					(6,000)					(6,000)					(6,000)
Cumulative effect of change in accounting principle, net of tax					(203)						(203)				(203)
Net (loss) income					6,200						6,200		1,237	[1]	7,437	[1]
Dividends					(1,964)						(1,964)				(1,964)
Other comprehensive income (loss)					(4,467)							(4,467)	26		(4,441)
Net (decrease) increase due to deconsolidation													39		39
Contributions from noncontrolling interests													2,559		2,559
Distributions to noncontrolling interests													(675)		(675)
Other					367			11	356				(74)		293
Balance at Dec. 31, 2007	0	0	0	0	95,801	0	344	(6,685)	9,382	(912)	89,029	4,643	8,472		104,273
Increase (decrease) in equity
Consideration received for Series C preferred stock not yet issued					23,000				23,000						23,000
Series C issuance in 2009, Series D issuance in 2008				40,000	40,000										40,000
Common stock issued					7,343		24		7,319						7,343
Common stock issued under stock plans					26			146	(120)						26
Shares purchased								(1,912)		1,912
Present value of future contract adjustment payments related to issuance of equity units					(431)				(431)						(431)
Payments advanced					(1,000)					(1,000)					(1,000)
Cumulative effect of change in accounting principle, net of tax					(1,003)						(1,003)				(1,003)
Net (loss) income					(99,289)						(99,289)		(574)	[1]	(99,863)	[1]
Dividends					(1,105)						(1,105)				(1,105)
Other comprehensive income (loss)					(10,971)							(10,971)	(271)		(11,242)
Net (decrease) increase due to deconsolidation													(648)		(648)
Contributions from noncontrolling interests													1,651		1,651
Distributions to noncontrolling interests													(738)		(738)
Other					339			1	338				203		542
Balance at Dec. 31, 2008	0	0	0	40,000	52,710	40,000	368	(8,450)	39,488	0	(12,368)	(6,328)	8,095		60,805
Increase (decrease) in equity
Series C issuance in 2009, Series D issuance in 2008			23,000						(23,000)
Series D exchange for Series E				1,605					(1,605)
Series F drawdown		5,344			5,344										5,344
Series F commitment fee		(165)			(165)										(165)
Common stock issued under stock plans							1	176	(177)
Retirement of treasury stock							(15)	7,400	(7,385)
Cumulative effect of change in accounting principle, net of tax					2,478						11,826	(9,348)			2,478
Net (loss) income					(10,949)						(10,949)		(1,784)	[1]	(12,733)	[1]
Other comprehensive income (loss)					21,369							21,369	388		21,757
Net (decrease) increase due to deconsolidation					(97)				(97)				(3,405)		(3,502)
Contributions from noncontrolling interests													677		677
Distributions to noncontrolling interests													(368)		(368)
Issuance of noncontrolling, nonvoting, callable, junior and senior preferred interests to the Federal Reserve Bank of New York													24,400		24,400
Net income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests held by the Federal Reserve Bank of New York													140		140
Deferred tax on issuance of preferred interests					(818)				(818)						(818)
Other					(48)				(48)				109		61
Balance at Dec. 31, 2009	$41,605	$5,179	$23,000	$0	$69,824	$69,784	$354	($874)	$6,358	$0	($11,491)	$5,693	$28,252		$98,076
[1]Net loss presented excludes gains (losses) of redeemable noncontrolling interests of $280 million, $(524) million, and $51 million in 2009, 2008, and 2007, respectively, and Net income attributable to noncontrolling nonvoting callable, junior and senior preferred interests held by the Federal Reserve Bank of New York of $140 million in 2009.

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Summary:
Net cash provided by (used in) operating activities	$18,584	($122)	$32,792
Net cash provided by (used in) investing activities	5,778	47,176	(67,241)
Net cash provided by (used in) financing activities	(28,997)	(40,734)	35,093
Effect of exchange rate changes on cash	533	38	50
Change in cash	(4,102)	6,358	694
Cash at beginning of period	8,642	2,284	1,590
Reclassification to assets held for sale	(140)
Cash at end of period	4,400	8,642	2,284
Cash flows from operating activities:
Net income (loss)	(12,313)	(100,387)	7,488
(Income) loss from discontinued operations	543	2,753	(621)
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gains) losses on sales of securities available for sale and other assets	(1,489)	5,230	(1,217)
Net (gains) losses on sale of divested businesses	1,271
Unrealized (gains) losses in earnings - net	(4,823)	8,634	12,758
Equity in (income) loss from equity method investments, net of dividends or distributions	1,172	7,683	(4,745)
Depreciation and other amortization	14,631	15,445	15,245
Provision for mortgage, other loans and finance receivables	2,387	1,442	643
Impairments of assets	10,471	53,340	4,596
Amortization of costs and accrued interest and fees related to FRBNY Credit Facility	10,264	11,218
Changes in operating assets and liabilities:
General and life insurance reserves	6,329	9,113	13,015
Premiums and other receivables and payables - net	2,460	(6,491)	2,620
Reinsurance assets and funds held under reinsurance treaties	(280)	(741)	783
Capitalization of deferred policy acquisition costs	(12,149)	(14,201)	(15,127)
Other policyholder funds	734	717	1,353
Current and deferred income taxes - net	(2,119)	(9,613)	(3,814)
Other assets and liabilities - net	(1,460)	(2,714)	(61)
Trading securities	993	2,816	(2,554)
Securities sold under agreements to repurchase, net of securities purchased under agreements to resell	(18)	13,951	(2,050)
Securities and spot commodities sold but not yet purchased	(1,663)	(2,027)	633
Finance receivables and other loans held for sale - originations and purchases	(70)	(349)	(5,145)
Sales of finance receivables and other loans - held for sale	291	558	5,671
Other, net	149	583	(214)
Total adjustments	27,081	94,594	22,390
Net cash provided by (used in) operating activities - continuing operations	15,311	(3,040)	29,257
Net cash provided by (used in) operating activities - discontinued operations	3,273	2,918	3,535
Net cash provided by (used in) operating activities	18,584	(122)	32,792
Cash flows from investing activities:
Sales of available for sale investments	48,968	110,427	92,420
Maturities of fixed maturity securities available for sale and hybrid investments	20,934	18,502	44,491
Sales of trading securities	15,697	28,786
Sales or distributions of other invested assets (including flight equipment)	12,459	18,250	14,412
Sales of divested businesses, net	5,278
Principal payments received on mortgage and other loans receivable	5,691	6,014	8,211
Principal payments received on and sales of finance receivables held for investment	11,916	12,282	12,553
Funding to establish Maiden Lane III LLC		(5,000)
Purchases of available for sale investments	(81,616)	(118,813)	(142,197)
Purchases of trading securities	(7,298)	(25,498)
Purchases of other invested assets (including flight equipment)	(11,597)	(22,791)	(30,294)
Mortgage and other loans receivable issued	(3,750)	(5,154)	(11,348)
Finance receivables held for investment - originations and purchases	(5,571)	(13,523)	(15,266)
Change in securities lending invested collateral	3,838	51,565	(12,303)
Net additions to real estate, fixed assets, and other assets	(504)	(1,258)	(850)
Net change in short-term investments	(6,167)	(407)	(23,112)
Net change in non-AIGFP derivative assets and liabilities	(150)	(1,438)	217
Other, net	212	(270)	280
Net cash provided by (used in) investing activities - continuing operations	8,340	51,674	(62,786)
Net cash provided by (used in) investing activities - discontinued operations	(2,562)	(4,498)	(4,455)
Net cash provided by (used in) investing activities	5,778	47,176	(67,241)
Cash flows from financing activities:
Policyholder contract deposits	34,324	47,004	63,848
Policyholder contract withdrawals	(42,464)	(69,265)	(58,612)
Change in other deposits	652	(557)	(355)
Change in commercial paper and other short-term debt	(613)	(12,525)	(338)
Change in Federal Reserve Bank of New York Commercial Paper Funding Facility borrowings	(10,647)	15,061
Federal Reserve Bank of New York credit facility borrowings	32,526	96,650
Federal Reserve Bank of New York credit facility repayments	(26,426)	(59,850)
Issuance of other long-term debt	4,544	113,501	103,210
Repayments on other long-term debt	(23,912)	(138,951)	(79,738)
Change in securities lending payable	(2,670)	(76,916)	11,757
Proceeds from issuance of series D preferred stock		40,000
Drawdown on the Department of the Treasury Commitment	5,344
Issuance of common stock		7,343
Payments advanced to purchase shares		(1,000)	(6,000)
Cash dividends paid to shareholders		(1,628)	(1,881)
Other, net	175	557	2,261
Net cash provided by (used in) financing activities - continuing operations	(29,167)	(40,576)	34,152
Net cash provided by (used in) financing activities - discontinued operations	170	(158)	941
Net cash provided by (used in) financing activities	(28,997)	(40,734)	35,093
Cash (paid) received during the period for:
Interest	(5,777)	(7,437)	(8,818)
Taxes	(226)	(617)	(5,163)
Non-cash financing/investing activities:
Settlement of FRBNY Credit Facility in exchange for issuing Noncontrolling nonvoting callable, junior and senior preferred interests held by Federal Reserve Bank of New York	25,000
Consideration received for preferred stock not yet issued		23,000
Interest credited to policyholder accounts included in financing activities	12,615	2,566	11,628
Treasury stock acquired using payments advanced to purchase shares		1,912	5,088
Present value of future contract adjustment payments related to issuance of equity units		431
Long-term debt reduction due to deconsolidations	1,648
Debt assumed on acquisitions and warehoused investments		$153	$791

Summary of Significant Accounti

Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of American International Group,Inc. (AIG), its controlled subsidiaries, and variable interest entities in which AIG is the primary beneficiary. Entities that AIG does not consolidate but in which it holds 20percent to 50percent of the voting rights and/or has the ability to exercise significant influence are accounted for under the equity method. Certain of AIG's foreign subsidiaries included in the consolidated financial statements report on a fiscal year ended November30. The effect on AIG's consolidated financial condition and results of operations of all material events occurring between November30 and December31 for all periods presented has been recorded. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). AIG evaluated the need to disclose events that occurred subsequent to the balance sheet date through February26, 2010, the date the financial statements were issued. All material intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with GAAP requires the application of accounting policies that often involve a significant degree of judgment. AIG considers that its accounting policies that are most dependent on the application of estimates and assumptions, and therefore viewed as critical accounting estimates, are those relating to items considered by management in the determination of AIG's ability to continue as a going concern; liability for general insurance unpaid claims and claims adjustment expenses; future policy benefits for life and accident and health contracts; recoverability of deferred policy acquisition costs (DAC); estimated gross profits for investment-oriented products; the allowance for finance receivable losses; flight equipment recoverability; other-than-temporary impairments; goodwill impairment; liabilities for legal contingencies; estimates with respect to income taxes, including recoverability of deferred tax assets; and fair value measurements of certain financial assets and liabilities, including credit default swaps and AIG's economic interest in Maiden Lane IILLC (MLII)and equity interest in Maiden Lane IIILLC (MLIII)(together, the Maiden Lane Interests). See Note5 herein. These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, AIG's consolidated financial condition, results of operations and cash flows would be materially affected. Revisions and Reclassifications In 2009, AIG reclassified the paid-in capital in excess of par value, net of issuance costs, related to its SeriesC Perpetual, Convertible, Participating Preferred Stock, par value $5.00 per share (AIG SeriesC Preferred Stock), SeriesD Fixed Rate Cumulative Perpetual Preferred Stock, par value $5.00 per share, (AIG SeriesD Preferred Stock) Series

Discontinued Operations and Hel

Discontinued Operations and Held for Sale Classification
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Discontinued Operations and Held for Sale Classification	2. Discontinued Operations and Held-For-Sale Classification Discontinued Operations On October12, 2009, AIG entered into an agreement to sell its 97.57percent share of Nan Shan Life Insurance Company,Ltd. (Nan Shan) for approximately $2.15billion to a consortium. This transaction met the criteria for held-for-sale and discontinued operations accounting. As a result, Nan Shan's results of operations are included in discontinued operations in AIG's Consolidated Statement of Income (Loss) for all periods shown and its assets and liabilities are presented separately as single line items in the asset and liability sections of the Consolidated Balance Sheet at December31, 2009. Nan Shan previously had been a component of the Foreign Life Insurance Retirement Services reportable segment. AIG expects the sale to close in 2010. A summary of income (loss) from Nan Shan's discontinued operations is as follows: Years Ended December31,(in millions) 2009 2008 2007 Premiums and other considerations $ 4,862 $ 5,209 $ 4,865 Net investment income 1,599 1,778 1,658 Net realized capital gains (losses) 724 (2,779 ) (91 ) Benefits, claims and expenses 6,202 6,441 5,623 Income (loss) from discontinued operations 983 (2,233 ) 809 Loss on sale (2,758 ) - - Income (loss) from discontinued operations, before income tax expense (benefit) (1,775 ) (2,233 ) 809 Income tax expense (benefit) (1,232 ) 520 188 Income (loss) from discontinued operations, net of tax $ (543 ) $ (2,753 ) $ 621 Held-for-Sale Transactions On July28, 2009, AIG entered into an agreement to combine its consumer finance business in Poland, conducted through AIG Bank PolskaS.A., into the Polish consumer finance business of Santander Consumer FinanceS.A. (SCB). In exchange, AIG will receive equity interest in SCB. The closing is expected to occur in the first quarter of 2010. This transaction met the criteria for held-for-sale accounting and, as a result, its assets and liabilities are included as single line items in the asset and liability sections of the Consolidated Balance Sheet at December31, 2009. AIG Bank Polska is a component of the Financial Services reportable segment. On September5, 2009, AIG entered into an agreement to sell its investment advisory and third party asset management businesses for total consideration consisting of a cash payment determined at closing based on the net assets of the business being sold plus contingent consideration. This transaction met the criteria for held-for-sale accounting. As a result, its assets and liabilities are included as single line items in the asset and liability sections of the Consolidated Balance Sheet at December31, 2009. These businesses are a component of the Noncore Asset Management business. A summary of assets and liabilities held for sale at December31, 2009 is as follows: (in millions) 2009 Assets: Fixed maturity securities $ 34,495 Equity securities 2,947 Mortgage and other loans receivable, net 3,997 Other inve

Restructuring

Restructuring
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Restructuring	3. Restructuring Since September 2008, AIG has been working to execute an orderly disposition plan of non-core businesses and assets, protect and enhance the value of its key businesses, and position itself for the future. AIG continually reassesses this plan to maximize value while maintaining flexibility in its liquidity and capital, and expects to accomplish this over a longer time frame than originally contemplated. Successful execution of the restructuring plan involves significant separation activities. Accordingly, in 2008 AIG established retention programs for its key employees to maintain ongoing business operations and to facilitate the successful execution of the restructuring plan. Additionally, given the market disruption in the first quarter of 2008, AIGFP established a retention plan for its employees to manage and unwind its complex businesses. Other major activities include the separation of shared services, corporate functions, infrastructure and assets among business units. In connection with its restructuring and separation activities, AIG expects to incur significant expenses, including legal, banking, accounting, consulting and other professional fees. In addition, AIG is contractually obligated to reimburse or advance certain professional fees and other expenses incurred by the FRBNY and the trustees of the AIG Credit Facility Trust, a trust established for the sole benefit of the United States Treasury (Trust). Based on AIG's announced plans, AIG has made estimates of these expenses, although for some restructuring and separation activities estimates cannot be reasonably made due to the evolving nature of the plans and the uncertain timing of the transactions involved. Future reimbursement or advancement payments to the FRBNY and the trustees cannot reasonably be estimated by AIG. Even for those expenses that have been estimated, actual expenses will vary depending on the identity of the ultimate purchasers of the divested entities or counterparties to transactions, the transactions and activities that ultimately are consummated or undertaken, and the ultimate time period over which these activities occur. For those restructuring and separation expenses that have been incurred or can be reasonably estimated, the total expenses incurred and expected to be incurred are approximately $2.6billion at December31, 2009, as set forth in the table below. This amount excludes expenses that could not be reasonably estimated at December31, 2009, as well as any expenses (principally professional fees) that are expected to be capitalized. With respect to the FRBNY and the trustees of the Trust, this amount includes only actual reimbursement and advancement payments made through December31, 2009. Restructuring expenses and related asset impairment and other expenses by reportable segment consisted of the following: (in millions) General Insurance Domestic Life Insurance Retirement Services Foreign Life Insurance Retirement Services Financial Services Other(a) Total Year Ended December31, 2009 Restructuring expenses $ 2 $ 33

Segment Information

Segment Information
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Segment Information	4. Segment Information AIG reports the results of its operations through four reportable segments: General Insurance, Domestic Life Insurance Retirement Services, Foreign Life Insurance Retirement Services, and Financial Services. AIG evaluates performance based on pre-tax income (loss), excluding results from discontinued operations and net gains (losses) on sales of divested businesses because AIG believes that this provides more meaningful information on how its operations are performing. During 2009, AIG realigned its financial reporting structure to reflect the effects of its restructuring activities on how management views and manages its businesses. Consequently, beginning in 2009, the results for Transatlantic, 21stCentury Insurance Group and Agency Auto Division (excluding the results of the Private Client Group) (21stCentury), and Mortgage Guaranty, previously reported as part of the General Insurance reportable segment, are now included in AIG's Other operations category. In addition, the historical results for HSB Group,Inc. (HSB) (which was sold on March31, 2009), previously included within Commercial Insurance, are now classified as Non-core insurance operations and included in AIG's Other operations category. Prior period amounts have been revised to conform to the current presentation. As a result of dispositions, only Mortgage Guaranty is still reporting ongoing results of operations within Non-core insurance operations. Additionally, beginning in 2009 gains and losses on sales of divested businesses are recorded within AIG's other operations category. In order to better align financial reporting with the manner in which AIG's chief operating decision makers review the businesses to make decision about resources to be allocated and to assess performance, during 2009, the following changes were made to the Domestic Life Insurance Retirement Services reportable segment and AIG's Other operations category. On September5, 2009, AIG entered into an agreement to sell its investment advisory and third party Institutional Asset Management businesses. This sale will exclude those asset management businesses providing traditional fixed income asset and liability management for AIG's insurance company subsidiaries and the AIG Global Real Estate investment management business as well as proprietary real estate and private equity investments. AIG expects to continue relationships with the divested businesses for other investment management services used by its insurance company subsidiaries. As a result of the sale, results for these businesses are now included in AIG's Other operations category. Additionally, brokerage service commissions, other asset management fees, and investment income from GICs previously reported in the Asset Management segment are now included in Domestic Life Insurance Retirement Services. Additionally, beginning in 2009 Foreign General Insurance and Foreign Life Insurance Retirement Services results include the equity income (loss) from certain equity method investments, which were previously included as part of AIG's Other operations category. Prior periods have been revised for the above chan

Fair Value Measurements

Fair Value Measurements
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Fair Value Measurements	5. Fair Value Measurements Fair Value Measurements on a Recurring Basis AIG measures at fair value on a recurring basis financial instruments in its trading and available for sale securities portfolios, certain mortgage and other loans receivable, derivative assets and liabilities, securities purchased/sold under agreements to resell/repurchase, securities lending invested collateral, non-traded equity investments and certain private limited partnerships and certain hedge funds included in other invested assets, certain short-term investments, separate and variable account assets, certain policyholder contract deposits, securities and spot commodities sold but not yet purchased, certain trust deposits and deposits due to banks and other depositors, certain CPFF, certain long-term debt, and certain hybrid financial instruments included in Other liabilities. The fair value of a financial instrument is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing, able and knowledgeable market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. 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 traded in other-than-active markets or that do not have quoted prices have less observability and are measured at fair value using valuation models or other pricing techniques that require more judgment. An active market is one in which transactions for the asset or liability being valued occur with sufficient frequency and volume to provide pricing information on an ongoing basis. An other-than-active market is one in which there are few transactions, the prices are not current, price quotations vary substantially either over time or among market makers, or in which little information is released publicly for the asset or liability being valued. 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 and general market conditions. Fair Value Hierarchy Beginning January1, 2008, assets and liabilities recorded at fair value in the Consolidated Balance Sheet are measured and classified in a hierarchy for disclosure purposes consisting of three "levels" based on the observability of inputs available in the marketplace used to measure the fair values as discussed below: Level1:Fair value measurements that are quoted prices (unadjusted) in active markets that AIG has the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. AIG does not adjust the quoted price for such instruments. Assets and liabilities measured at fair value on a recurring basis and classified as Level1 include certain government and agency securities, actively traded listed common stocks and derivative c

Investments

Investments
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Investments	6. Investments (a) Securities Available for Sale The following table presents the amortized cost or cost and fair value of AIG's available for sale securities: (in millions) Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-Than- Temporary Impairments in AOCI(a) December31, 2009 Bonds available for sale: U.S. government and government sponsored entities $ 5,098 $ 174 $ (49 ) $ 5,223 $ - Obligations of states, municipalities and political subdivisions 52,324 2,163 (385 ) 54,102 - Non-U.S. governments 63,080 3,153 (649 ) 65,584 (1 ) Corporate debt 185,188 10,826 (3,876 )(c) 192,138 119 Mortgage-backed, asset-backed and collateralized: RMBS 32,173 991 (4,840 ) 28,324 (2,121 ) CMBS 18,717 195 (5,623 ) 13,289 (739 ) CDO/ABS 7,911 284 (1,304 ) 6,891 (63 ) Total bonds available for sale(d) 364,491 17,786 (16,726 ) 365,551 (2,805 ) Equity securities available for sale: Common stocks 4,460 2,913 (75 ) 7,298 - Preferred stocks 740 94 (20 ) 814 - Mutual funds 1,264 182 (36 ) 1,410 - Total equity securities available for sale 6,464 3,189 (131 ) 9,522 - Total $ 370,955 $ 20,975 $ (16,857 ) $ 375,073 $ (2,805 ) December31, 2008 Bonds available for sale: U.S. government and government sponsored entities $ 4,433 $ 331 $ (59 ) $ 4,705 Obligations of states, municipalities and political subdivisions 62,718 1,150 (2,611 ) 61,257 Non-U.S. governments 62,176 6,560 (1,199 ) 67,537 Corporate debt 194,481 4,661 (13,523) (c) 185,619 Mortgage-backed, asset-backed and collateralized: RMBS 32,092 645 (2,985 ) 29,752 CMBS 14,205 126 (3,105 ) 11,226 CDO/ABS 6,741 233 (843 ) 6,131 AIGFP(b) 217 - - 217 Total bonds available for sale(d) 377,063 13,706 (24,325 ) 366,444 Equity securities available for sale: Common stocks 5,545 1,035 (512 ) 6,068 Preferred stocks 1,349 33 (138 ) 1,244 Mutual funds 1,487 78 (69 ) 1,496 Total equity securities available for sale 8,381 1,146 (719 ) 8,808 Total $ 385,444 $ 14,852 $ (25,044 ) $ 375,252 (a) Represents the amount of other-than-temporary impairment losses recognized in Accumulated other comprehensive loss, which, starting on April1, 2009, were not included in earnings. Amount includes unrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measureme

Lending Activities

Lending Activities
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Lending Activities	7. Lending Activities The following table presents mortgages and other loans receivable: Years Ended December31,(in millions) 2009 2008 Mortgages commercial $ 16,005 $ 17,161 Mortgages residential* 623 2,271 Life insurance policy loans 6,788 9,589 Collateral, guaranteed, and other commercial loans 4,883 5,874 Total mortgage and other loans receivable 28,299 34,895 Allowance for losses (838 ) (208 ) Mortgage and other loans receivable, net $ 27,461 $ 34,687 * Primarily consists of foreign mortgage loans. Mortgage loans and other receivables held for sale were $62million and $33million at December31, 2009 and 2008, respectively. The following table summarizes finance receivables, net of unearned finance charges: Years Ended December31,(in millions) 2009 2008 Real estate loans $ 15,473 $ 20,650 Non-real estate loans 3,449 5,763 Retail sales finance 1,132 3,417 Credit card loans 14 1,422 Other loans 1,865 1,169 Total finance receivables 21,933 32,421 Allowance for losses (1,606 ) (1,472 ) Finance receivables, net $ 20,327 $ 30,949 Finance receivables held for sale were $694million and $960million at December31, 2009 and 2008, respectively. The following table presents a rollforward of the changes in the allowance for Mortgage and other loans receivable and allowance for Finance receivables: Mortgage and Other Loans Receivable Years Ended December31, (in millions) Finance Receivables 2009 2008 2007 2009 2008 2007 Allowance, beginning of year $ 208 $ 77 $ 64 $ 1,472 $ 878 $ 737 Loans charged off (196 ) - (3 ) (1,280 ) (931 ) (632 ) Recoveries of loans previously charged off - 30 - 106 129 106 Net charge-offs (196 ) 30 (3 ) (1,174 ) (802 ) (526 ) Provision for loan losses 737 70 20 1,649 1,427 646 Other 123 34 2 (167 ) (31 ) 21 Activity of discontinued operations (4 ) (3 ) (6 ) - - - Reclassified to Assets of businesses held for sale (30 ) - - (174 ) - - Allowance, end of year $ 838 $ 208 $ 77 $ 1,606 $ 1,472 $ 878

Reinsurance

Reinsurance
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Reinsurance	8. Reinsurance In the ordinary course of business, AIG's General Insurance and life insurance companies place reinsurance with other insurance companies in order to provide greater diversification of AIG's business and limit the potential for losses arising from large risks. In addition, AIG's General Insurance subsidiaries assume reinsurance from other insurance companies. The following table provides supplemental information for gross loss and benefit reserves net of ceded reinsurance: December31, 2009 December31, 2008 (in millions) As Reported Net of Reinsurance As Reported Net of Reinsurance Liability for unpaid claims and claims adjustment expense $ (85,386 ) $ (67,899 ) $ (89,258 ) $ (72,455 ) Future policy benefits for life and accident and health insurance contracts (116,001 ) (114,777 ) (142,334 ) (140,750 ) Reserve for unearned premiums (21,363 ) (18,146 ) (25,735 ) (21,540 ) Reinsurance assets* 21,928 - 22,582 - * Represents gross reinsurance assets, excluding allowances and reinsurance recoverable on paid losses. General Reinsurance General reinsurance is effected under reinsurance treaties and by negotiation on individual risks. Certain of these reinsurance arrangements consist of excess of loss contracts which protect AIG against losses over 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 general reinsurers 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. For both ceded and assumed reinsurance, risk transfer requirements must be met in order 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. American International Reinsurance Company Limited (AIRCO) acts primarily as an internal reinsurance company for AIG's General Insurance operations. This facilitates insurance risk management (retention, volatility, concentrations) and capital planning locally (branch and subsidiary). It also allows AIG to pool its insurance risks and purchase reinsurance more efficiently at a consolidated level, manage global counterparty risk and relationships and manage global life catastrophe risks. The following table presents General Insurance premiums written and earned:

Deferred Policy Acquisition Cos

Deferred Policy Acquisition Costs
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Deferred Policy Acquisition Costs	9. Deferred Policy Acquisition Costs The following table presents a rollforward of deferred policy acquisition costs: Years Ended December31, (inmillions) 2009 2008 2007 General Insurance operations: Balance, beginning of year $ 5,114 $ 5,407 $ 4,977 Dispositions(a) (418 ) - - Acquisition costs deferred 6,522 7,370 8,661 Amortization expense (6,741 ) (7,428 ) (8,235 ) Increase (decrease) due to foreign exchange and other 398 (235 ) 4 Balance, end of year $ 4,875 $ 5,114 $ 5,407 Domestic Life Insurance Retirement Services operations: Balance, beginning of year $ 14,447 $ 12,270 $ 11,657 Dispositions(b) (479 ) - - Acquisition costs deferred 1,014 1,655 1,636 Amortization (charged) or credited to pre-tax income(c) (1,553 ) (522 ) (1,488 ) Change in unrealized gains (losses) on securities(d) (960 ) 1,158 444 Increase (decrease) due to foreign exchange (10 ) (114 ) 85 Other(e) (1,361 ) - (64 ) Subtotal $ 11,098 $ 14,447 $ 12,270 Consolidation and eliminations 49 55 62 Balance, end of year(f) $ 11,147 $ 14,502 $ 12,332 Foreign Life Insurance Retirement Services operations: Balance, beginning of year $ 26,166 $ 26,175 $ 21,153 Dispositions(b) - (16 ) - Acquisition costs deferred 4,713 5,212 5,146 Amortization (charged) or credited to pre-tax income(c) (3,790 ) (4,071 ) (2,062 ) Change in unrealized gains (losses) on securities(d) (731 ) 252 285 Increase (decrease) due to foreign exchange 2,043 (234 ) 818 Other(e) (248 ) (1,075 ) 136 Activity of discontinued operations (39 ) (77 ) 699 Reclassified to Assets of businesses held for sale (3,322 ) - - Balance, end of year(f) $ 24,792 $ 26,166 $ 26,175 Total deferred policy acquisition costs $ 40,814 $ 45,782 $ 43,914 (a) Transatlantic was deconsolidated during the second quarter of 2009, 21stCentury was sold in the third quarter of 2009 and HSB was sold during the first quarter of 2009. (b) AIG Life Canada was sold in the second quarter of 2009 and Brazil operations were sold in the fourth quarter of 2008. (c) In 2007, amortization expense increased $101million for Domestic Life Insurance Retirement Services and decreased by $469million for Foreign Life Insurance Retirement Services related to changes in actuarial estimates, which was mostly offset in Policyholder benefits and claims incurred. (d) In 2009, includes increase of $1.3billion and $187million related to the cumulative effect of adopting a new other-than-temporary impairments accounting standard for Domestic Life Insurance Retirement Services and Foreign Life Insurance Retirement Services, respectively. (e) In 2009, includes decrease of $1.3billion and $187million related to the cumulative effect of adopting a new other-than-temporary impairments accounting standard for

Variable Interest Entities

Variable Interest Entities
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Variable Interest Entities	10. Variable Interest Entities The accounting standard related to the consolidation of variable interest entities (VIEs) provides guidance for determining when to consolidate certain entities in which equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity that is at risk to allow the entity to finance its activities without additional subordinated financial support. This standard recognizes that consolidation based on majority voting interest should not apply to these variable interest entities. A VIE is consolidated by its primary beneficiary, which 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. AIG enters into various arrangements with VIEs in the normal course of business. AIG's insurance companies are involved with VIEs primarily as passive investors in debt securities (rated and unrated) and equity interests issued by VIEs. Through its Financial Services segment and asset management businesses, AIG has participated in arrangements with VIEs that includes designing and structuring entities, warehousing and managing the collateral of the entities, and entering into insurance, credit and derivative transactions with the entities. AIG has also established trusts for the sole purpose of issuing mandatorily redeemable preferred stock totaling $1.3billion to investors. AIG has determined that the trusts are VIEs, but has not consolidated these VIEs because AIG is not the primary beneficiary and does not hold a variable interest in these VIEs. AIG generally determines whether it is the primary beneficiary or a significant interest holder based on a qualitative assessment of the VIE. This 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 AIG's interests in the entity that either create or absorb variability. AIG evaluates the design of the VIE and the related risks the entity was designed to expose the variable interest holders to in evaluating consolidation. In limited cases, when it was unclear from a qualitative standpoint if AIG was the primary beneficiary, AIG used a quantitative analysis to calculate the probability weighted expected losses and probability weighted expected residual returns by using cash flow modeling. AIG's total off-balance sheet exposure associated with VIEs, primarily consisting of financial guarantees and commitments to real estate and investment funds was $2.5billion and $3.3billion at December31, 2009 and 2008, respectively. The following table presents AIG's total assets, total liabilities and off-balance sheet exposure associated with its significant variable interests in consolidated VIEs: Off-Balance Sheet Exposure AtDecember31, (in billions) VIEAssets* VIELiabilities 2009 2008 2009 2008 2009 2008 Real estate and investment funds $ 4.6 $ 5.6 $ 2.9 $ 3.1 $ 0.6 $ 0.9 Commercial paper conduit 3.6

Derivatives and Hedge Accountin

Derivatives and Hedge Accounting
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Derivatives and Hedge Accounting	11. Derivatives and Hedge Accounting AIG uses derivatives and other financial instruments as part of its financial risk management programs and as part of its investment operations. AIGFP has also transacted in derivatives as a dealer. Derivatives are financial arrangements among two or more parties with returns linked to or "derived" from some underlying equity, debt, commodity or other asset, liability, or foreign exchange rate or other index or the occurrence of a specified payment event. Derivative payments may be based on interest rates, exchange rates, prices of certain securities, commodities, or financial or commodity indices or other variables. Derivatives, with the exception of bifurcated embedded derivatives, are reflected at fair value on the Consolidated Balance Sheet in Unrealized gain on swaps, options and forward transactions, at fair value and Unrealized loss on swaps, options and forward contracts, at fair value. Bifurcated embedded derivatives are recorded with the host contract on the Consolidated Balance Sheet. The following table presents the notional amounts and fair values of AIG's derivative instruments: DerivativeAssets DerivativeLiabilities AtDecember31,2009 (in millions) Notional Amount(a) Fair Value(b) Notional Amount(a) Fair Value(b) Derivatives designated as hedging instruments: Interest rate contracts(c) $ 10,612 $ 2,129 $ 3,884 $ 375 Total derivatives designated as hedging instruments 10,612 2,129 3,884 375 Derivatives not designated as hedging instruments: Interest rate contracts(c) 345,614 27,451 300,847 23,718 Foreign exchange contracts 16,662 720 9,719 939 Equity contracts 8,175 1,184 7,713 1,064 Commodity contracts 759 883 381 373 Credit contracts 3,706 1,210 190,275 5,815 Other contracts 34,605 928 23,310 1,101 Total derivatives not designated as hedging instruments 409,521 32,376 532,245 33,010 Total derivatives $ 420,133 $ 34,505 $ 536,129 $ 33,385 (a) Notional amount represents a standard of measurement of the volume of derivatives business of AIG. Notional amount is generally not a quantification of market risk or credit risk and is not recorded on the Consolidated Balance Sheet. Notional amounts generally represent those amounts used to calculate contractual cash flows to be exchanged and are not paid or received, except for certain contracts such as currency swaps and certain credit contracts. (b) Fair value amounts are shown before the effects of counterparty netting adjustments and offsetting cash collateral. (c) Includes cross currency swaps. The following table presents the fair values of derivative assets and liabilities on the Consolidated Balance Sheet: At December31, 2009(in millions) Derivative Assets(a) Derivative Liabilities(b) AIGFP derivatives $ 31,951 $ 30,930 Non-AIGFP derivatives 2,554 2,455 Total derivatives, gross 34,505 33,385 C

Liability for Unpaid Claims and

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, 2009 USD / shares
Notes to Consolidated Financial Statements
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.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 following table presents the reconciliation of activity in the Liability for unpaid claims and claims adjustment expense: Years Ended December31, (in millions) 2009 2008 2007 Balance, beginning of year: Liability for unpaid claims and claims adjustment expense $ 89,258 $ 85,500 $ 79,999 Reinsurance recoverable (16,803 ) (16,212 ) (17,369 ) Total 72,455 69,288 62,630 Foreign exchange effect 1,416 (2,113 ) 955 Acquisitions(a) - - 317 Dispositions(b) (9,657 ) (269 ) - Losses and loss expenses incurred(c): Current year 27,359 35,085 30,261 Prior years, other than accretion of discount(d) 2,771 118 (656 ) Prior years, accretion of discount 313 317 327 Total 30,443 35,520 29,932 Losses and loss expenses paid(c): Current year 11,082 13,440 9,684 Prior years 15,676 16,531 14,862 Total 26,758 29,971 24,546 Balance, end of year: Net liability for unpaid claims and claims adjustment expense 67,899 72,455 69,288 Reinsurance recoverable 17,487 16,803 16,212 Total $ 85,386 $ 89,258 $ 85,500 (a) Represents the opening balance with respect to the acquisition of WBa in 2007. (b) Transatlantic was deconsolidated during the second quarter of 2009, 21stCentury was sold in the third quarter of 2009; HSB was sold during the first quarter of 2009, and Unibanco was sold in the fourth quarter of 2008. (c) Includes amounts related to dispositions through the date of disposition. (d) In 2009, includes $1.51billion, $956million and $151million related to excess casualty, excess workers' compensation and asbestos, respectively. Discounting of Reserves At December31, 2009, net loss reserves reflect a loss reserve discount of $2.66billion, including tabular and non-tabular calculations. The tabular workers' compensation discount is calculated using a 3.5percent interest rate and the 1979-81Decennial 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 other liability occurrence and products liability occurrence business in AIRCO that was written by Commercial Insurance is discounted based on the yield of Department of the Treasury securities ranging from one to twenty years and th

Variable Life and Annuity Contr

Variable Life and Annuity Contracts
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Variable Life and Annuity Contracts	13. Variable Life and Annuity Contracts AIG reports variable contracts through 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 qualifies for separate account treatment. In some foreign jurisdictions, separate accounts are not legally insulated from general account creditors and therefore do not qualify for separate account treatment. In such cases, the variable contracts are reported as general account contracts even though the policyholder bears the risks associated with the performance of the assets. AIG also reports variable annuity and life contracts through separate accounts, or general accounts when not qualified for separate account reporting, when AIG contractually guarantees 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) (Net Deposits Plus a Minimum Return) or (b)the highest contract value attained, typically on any anniversary date minus any subsequent withdrawals following the contract anniversary (Highest Contract Value Attained). 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). For AIG, GMDB is by far the most widely offered benefit. The assets supporting the variable portion 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. 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 Income. 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 Income 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 vast majority of AIG's exposure on guarantees made to variable contract holders arises from GMDB. The following table presents details concerning AIG

Debt Outstanding

Debt Outstanding
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Debt Outstanding	14. Debt Outstanding The following table summarizes AIG's total debt outstanding: At December31,(in millions) 2009 2008 FRBNY Credit Facility (secured) $ 23,435 $ 40,431 Other long-term debt 113,298 137,054 Commercial paper and other short-term debt - 613 Federal Reserve Bank of New York commercial paper funding facility 4,739 15,105 Total debt $ 141,472 $ 193,203 Historically, AIG has issued long-term debt denominated in various currencies, although predominantly U.S. dollars, with both fixed and variable interest rates. The following table is a summary of long-term debt carrying values (including unamortized original issue discount, hedge accounting valuation adjustments and fair value adjustments, where applicable) by contractual maturity as of December31, 2009. The following table presents maturities of long-term debt, excluding borrowings of consolidated investments: At December31, 2009 (in millions) Year Ending Total 2010 2011 2012 2013 2014 Thereafter AIG: FRBNY Credit Facility $ 23,435 $ - $ - $ - $ 23,435 $ - $ - Notes and bonds payable 10,419 1,350 547 27 998 - 7,497 Junior subordinated debt 12,001 - - - - - 12,001 Junior subordinated debt attributable to equity units 5,880 - - - - - 5,880 Loans and mortgages payable 438 - - 368 - - 70 MIP matched notes and bonds payable 13,371 2,231 3,194 2,151 901 417 4,477 Series AIGFP matched notes and bonds payable 3,913 39 27 56 3 - 3,788 Total AIG 69,457 3,620 3,768 2,602 25,337 417 33,713 AIGFP, at fair value: GIAs 8,257 842 268 262 297 664 5,924 Notes and bonds payable 2,029 493 160 670 4 58 644 Loans and mortgages payable 1,022 295 228 203 77 150 69 Hybrid financial instrument liabilities 1,887 273 351 97 276 136 754 Total AIGFP 13,195 1,903 1,007 1,232 654 1,008 7,391 AIGLH notes and bonds payable 798 500 - - - - 298 Liabilities connected to trust preferred stock 1,339 - - - - - 1,339 ILFC(a): Notes and bonds payable 16,929 4,129 4,643 3,572 3,542 1,043 - Junior subordinated debt 999 - - - - - 999 ECA Facilities(b) 3,004 513 425 396 396 391 883 Bank financings and other secured financings(c) 5,241 2,116 2,849 165 16 37 58 Total ILFC 26,173 6,758 7,917 4,133 3,954 1,471 1,940 AGF(a): Notes and bonds payable(d) 19,770 6,550 3,581 2,277 2,320 459 4,583 Junior subor

Commitments, Contingencies and

Commitments, Contingencies and Guarantees
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Commitments, Contingencies and Guarantees	15. Commitments, Contingencies and Guarantees In the normal course of business, various commitments and contingent liabilities are entered into by AIG and certain of its subsidiaries. In addition, AIG guarantees various obligations of certain subsidiaries. Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters including those referred to below, it is possible that such liability could have a material adverse effect on AIG's consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period. (a) Litigation and Investigations Litigation Arising from Operations.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. Various federal, state and foreign regulatory and governmental agencies are reviewing certain public disclosures, transactions and practices of AIG and its subsidiaries in connection with, among other matters, AIG's liquidity problems, payments by AIG subsidiaries to non-U.S. persons and industry-wide and other inquiries including matters relating to compensation paid to AIGFP employees and payments made to AIGFP counterparties. These reviews include ongoing investigations by the U.S. Securities and Exchange Commission (SEC) and U.S. Department of Justice (DOJ) with respect to the valuation of AIGFP's multi-sector CDO super senior credit default swap portfolio under fair value accounting rules, and the adequacy of AIG's enterprise risk management processes with respect to AIG's exposure to the U.S. residential mortgage market, and disclosures relating thereto. There is also an investigation by the U.K. Serious Fraud Office and inquiries by the U.K. Financial Services Authority with respect to the U.K. operations of AIGFP. AIG has cooperated, and will continue to cooperate, in producing documents and other information in response to subpoenas and other requests. In connection with certain SEC investigations, AIG understands that some of its employees have received Wells notices and it is possible that additional current and former employees could receive similar notices in the future. Under SEC procedures, a Wells notice is an indication that the SEC staff has made a preliminary decision to recommend enforcement action that provides recipients with an opportunity to respond to the SEC staff before a formal recommendation is finalized. Litigation Relating to AIG's Subprime Exposure and AIGFP's Employee Retention Plan Securities Actions Southern District of New York.Between May21, 2008 and January15, 2009, eight purported securities class action complaints were filed against AIG and certain of

Total Equity and Earnings

Total Equity and Earnings (Loss) Per Share
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Total Equity and Earnings (Loss) Per Share	16. Total Equity and Earnings (Loss) Per Share Shares Outstanding The following table presents a rollforward of outstanding shares: Preferred Stock Common Stock Treasury Stock Year Ended December31, 2009 AIG SeriesE AIG SeriesF AIG SeriesC AIG SeriesD Shares issued, beginning of year - - - 4,000,000 147,401,900 12,918,446 Issuances - 300,000 100,000 - 466,401 (145,932 ) Shares exchanged 400,000 - - (4,000,000 ) - - Retirement of treasury stock - - - - (6,111,158 ) (6,111,158 ) Fractional shares, paid in cash in connection with the reverse stock split - - - - (24,880 ) - Shares issued, end of year 400,000 300,000 100,000 - 141,732,263 6,661,356 Preferred Stock A rollforward of preferred stock was as follows: (in millions) AIG SeriesE AIG SeriesF AIG SeriesC AIG SeriesD Total Preferred Stock Balance, January1, 2008 $ - $ - $ - $ - $ - AIG SeriesD issuance - - - 40,000 40,000 Balance, December31, 2008 $ - $ - $ - $ 40,000 $ 40,000 AIG SeriesC issuance - - 23,000 - 23,000 AIG SeriesD exchange for AIG SeriesE 41,605 - - (40,000 ) 1,605 AIG SeriesF drawdown - 5,344 - - 5,344 AIG SeriesF commitment fee - (165 ) - - (165 ) Balance, December31, 2009 $ 41,605 $ 5,179 $ 23,000 $ - $ 69,784 Exchange of AIG SeriesD Preferred Stock for AIG SeriesE Preferred Stock On April17, 2009, AIG entered into a Securities Exchange Agreement (the AIG SeriesE Exchange Agreement) with the Department of the Treasury pursuant to which, among other things, the Department of the Treasury exchanged 4,000,000 shares of AIG SeriesD Preferred Stock for 400,000 shares of AIG SeriesE Preferred Stock with an aggregate liquidation preference of $41,604,576,000, which represented the issuance-date aggregate liquidation preference of the AIG SeriesD Preferred Stock surrendered plus accumulated but unpaid dividends thereon of $1,604,576,000 ($401.14 per share). The terms of the AIG SeriesE Preferred Stock are substantially the same as those of the AIG SeriesD Preferred Stock, except that the dividends are not cumulative and the AIG SeriesE Preferred Stock is subject to a replacement capital covenant. Concurrently with the exchange of the shares of AIG SeriesD Preferred Stock for shares of the AIG SeriesE Preferred Stock, AIG entered into a replacement capital covenant in favor of the holders of a series of AIG debt, pursuant to which AIG agreed that prior to the third anniversary of the issuance of the AIG SeriesE Preferred Stock, AIG will not redeem or purchase, and no subsidiary of AIG will purchase, all or any part of the AIG SeriesE Preferred Stock except with the proceeds obtained from the issuance by AIG or any subsidiary of AIG of certain capital securities. The AIG SeriesE Exchange Agreement also permits the Department of the T

Statutory Financial Data

Statutory Financial Data
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Statutory Financial Data	17. Statutory Financial Data The following table presents statutory surplus and net income (loss) for General Insurance, including non-core insurance companies, and Life Insurance Retirement Services operations in accordance with statutory accounting practices: Years Ended December31,(in millions) 2009(e) 2008 2007 Statutory surplus(a): General Insurance(b) $ 37,946 $ 35,847 $ 37,705 Domestic Life Insurance Retirement Services 13,016 11,312 14,014 Foreign Life Insurance Retirement Services 17,873 13,199 19,198 Statutory net income (loss)(a)(c): General Insurance(d) 2,402 216 8,018 Domestic Life Insurance Retirement Services 702 (22,257 ) 1,107 Foreign Life Insurance Retirement Services(a) 1,368 (1,301 ) 3,358 (a) Statutory surplus and net income (loss) with respect to foreign operations are estimated at November30. The basis of presentation for branches of AIA is the Hong Kong statutory filing basis. The basis of presentation for branches of ALICO is the U.S. statutory filing basis. AIG Star Life, AIG Edison Life, Philamlife and Nan Shan, which is reported as a discontinued operation, are estimated based on their respective local country filing basis. (b) 2008 amount was increased by $1.2billion from that previously reported. (c) Includes Net realized capital gains and losses and taxes. (d) Includes catastrophe losses, net of tax, of $34million, $1.15billion, and $177million in 2009, 2008 and 2007, respectively. (e) Amount subject to change based on final statutory filings. AIG's 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 December31, 2009, 2008 and 2007, statutory capital of AIG's insurance subsidiaries exceeded minimum company action level requirements. Dividend Restrictions Payments of dividends to AIG by its insurance subsidiaries are subject to certain restrictions imposed by regulatory authorities. With respect to AIG's 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, general insurance companies domiciled in New York may not pay dividends to shareholders that, in any twelve-month period, exceed the lesser of ten percent of such company's statutory policyholders' surplus or 100percent of its "adjuste

Share-based Employee Compensati

Share-based Employee Compensation Plans
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Share-based Employee Compensation Plans	18. Share-based Employee Compensation Plans Included in AIG's Consolidated Statement of Income for the years ended December31, 2009, 2008 and 2007 was pre-tax share-based compensation expense of $209million ($151million after tax), $389million ($284million after tax), and $275million ($216million after tax), respectively. Employee Plans As of December31, 2009, AIG employees had been granted awards under seven different share-based employee compensation plans: AIG 1999 Stock Option Plan, as amended (1999 Plan); AIG 1996 Employee Stock Purchase Plan, as amended (1996 Plan); AIG 2002 Stock Incentive Plan, as amended (2002 Plan) under which AIG has issued time-vested restricted stock units (RSUs) and performance restricted stock units (performance RSUs); AIG 2007 Stock Incentive Plan, as amended (2007 Plan) under which AIG has issued RSUs, performance RSUs and restricted stock; SICO's Deferred Compensation Profit Participation Plans (SICO Plans); AIG's 2005-2006 Deferred Compensation Profit Participation Plan (AIG DCPPP) the AIG DCPPP was adopted as a replacement for the SICO Plans for the 2005-2006 period. Share-based employee compensation earned under the AIG DCPPP was granted as time-vested RSUs under the 2002 Plan; and The AIG Partners Plan replaced the AIG DCPPP. Share-based employee compensation awarded under the AIG Partners Plan was granted as performance-based RSUs under the 2002 Plan, except for the December 2007 grant which was made under the 2007 Plan. Although awards granted under all the plans described above, other than the 1996 Plan, remained outstanding at December31, 2009, future grants of options, RSUs and performance RSUs can be made only under the 2007 Plan. Share option exercises and other share awards to participants were settled by issuing previously acquired shares held in AIG's treasury account through November30, 2009. Effective December1, 2009, AIG is settling its share-based awards by issuing AIG Common Stock. However, share awards made by SICO are settled by SICO. Non-Employee Plans In 2006 and for prior years, AIG's non-employee directors received share-based compensation in the form of options granted pursuant to the 1999 Plan and grants of AIG Common Stock with delivery deferred until retirement from the Board pursuant to the AIG Director Stock Plan, which was approved by the shareholders at the 2004 Annual Meeting of Shareholders and which is now a subplan under the 2007 Plan. From and after May16, 2007, non-employee directors receive deferred stock units (DSUs) under the 2007 Plan with delivery deferred until retirement from the Board. The methodology used for valuing employee stock options is also used to value director stock options. Director stock options vest one year after the grant date, but are otherwise the same as employee stock options. Commencing in 2007, directors no longer receive awards of options. In 2009 and 2008, AIG granted to directors 9,106 and 6,354 DSUs, respectively, including DSUs representing dividend-equivalent amounts. AIG also granted to directors 319 shares, with delivery deferred, during 2007, under the Director Stock Plan. There we

Employee Benefits

Employee Benefits
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Employee Benefits	19. Employee Benefits Pension Plans AIG, its subsidiaries and certain affiliated companies offer various defined benefit plans to eligible employees based on either completion of a specified period of continuous service or date of hire, subject to age limitations. AIG's U.S. qualified retirement plans are noncontributory defined benefit plans which are subject to the provisions of ERISA. U.S. salaried employees who are employed by a participating company, have attained age 21 and completed twelve months of continuous service are eligible to participate in the plans. Employees generally vest after 5years of service. Unreduced benefits are paid to retirees at normal retirement (age 65)and are based upon a percentage of final average compensation multiplied by years of credited service, up to 44years. 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. AIG also sponsors several unfunded defined benefit plans for certain employees, including key executives, designed to supplement pension benefits provided by AIG's other retirement plans. These include the AIG Excess Retirement Income Plan, which provides a benefit equal to the reduction in benefits payable to certain employees under the AIG U.S. qualified retirement plan as a result of federal tax limitations on compensation and benefits payable and the Supplemental Executive Retirement Plan, 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 60percent of final average pay, reduced by any benefits from the current and any predecessor retirement plans (including the AIG Excess Retirement Income Plan and any comparable plans), Social Security, if any, and from any qualified pension plan of prior employers. AIG has complied with the Special Master's mandate to freeze future benefits in the non-qualified retirement plans for the Top 100 employees of AIG. The impact to AIG's financial statements was not significant. Postretirement Plans AIG and its subsidiaries 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 electing immediate retirement and having a minimum of ten years of service. Medical benefits are contributory, while the life insurance benefits are non-contributory. Retiree medical contributions vary from requiring no cost for pre-1989 retirees to requiring actual premium payments reduced by certain credits for post-1993 retirees. These contributions are subject to adjustment annually. Other cost sharing features of the medical plan include deductibles, coinsura

Ownership and Transactions With

Ownership and Transactions With Related Parties
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Ownership and Transactions With Related Parties	20. Ownership and Transactions With Related Parties (a)Ownership:According to the Schedule13D filed on June5, 2009 by Maurice R. Greenberg, Edward E. Matthews, Starr International Company,Inc. (Starr International), C.V. StarrCo. (CV Starr),Inc., Universal Foundation,Inc. (Universal Foundation), The Maurice R. and Corinne P. Greenberg Family Foundation,Inc., Maurice R. and Corinne P. Greenberg Joint Tenancy Company,LLC and C.V. StarrCo.,Inc. Trust, Mr.Greenberg, Mr.Matthews, Starr International, CV Starr and Universal Foundation could be deemed to beneficially own 14,146,455 shares of AIG Common Stock at that date. Based on the shares of AIG Common Stock outstanding at January29, 2010, this ownership would represent approximately 10.5percent of the common stock of AIG. Although these reporting persons may have made filings under Section16 of the Securities Exchange Act of 1934 (the Exchange Act), reporting sales of shares of common stock, no amendment to the Schedule13D has been filed to report a change in ownership subsequent to June5, 2009. (b)Reinsurance:Following its deconsolidation, after confirmation from the New York Insurance Department that AIG is not considered to control Transatlantic notwithstanding AIG's ownership of 13.9percent of Transatlantic's common stock outstanding, AIG no longer considers Transatlantic to be a related party. At December31, 2009, AIG's credit exposure to Transatlantic in the form of uncollateralized reinsurance assets totaled approximately $1.6billion and Transatlantic represented AIG's largest third-party reinsurer. Transatlantic's core operating subsidiaries have financial strength ratings of A byA.M. Best and A+ by SP. (c)For discussion of the AIG SeriesC Preferred Stock and the ownership by the Trust, see Note16 herein.

Federal Income Taxes

Federal Income Taxes
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Federal Income Taxes	21. Federal 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 pretax income (loss) was generated. Years ended December31,(in millions) 2009 2008 2007 U.S. $ (16,993 ) $ (105,179 ) $ (3,957 ) Foreign 3,345 (1,349 ) 12,091 Total $ (13,648 ) $ (106,528 ) $ 8,134 The following table presents the provision for income taxes: Years Ended December31,(in millions) 2009 2008 2007 Foreign and U.S. components of actual income tax expense: Foreign: Current $ 1,723 $ 1,534 $ 3,119 Deferred 481 (2,329 ) 311 U.S.: Current 58 169 61 Deferred (4,140 ) (8,268 ) (2,224 ) Total $ (1,878 ) $ (8,894 ) $ 1,267 AIG's actual income tax (benefit) expense from continuing operations differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following: Years Ended December31, 2009 2008 2007 (dollars in millions) Amount Percent of Pre-tax Income (loss) Amount Percent of Pre-tax Income (loss) Amount Percent of Pre-tax Income (loss) U.S. federal income tax at statutory rate $ (4,776 ) 35.0 % $ (37,284 ) 35.0 % $ 2,847 35.0 % Adjustments: Valuation allowance 2,916 (21.4 ) 20,673 (19.4 ) - - Uncertain tax positions 893 (6.5 ) 1,113 (1.0 ) 621 7.6 Tax exempt interest (680 ) 5.0 (843 ) 0.8 (823 ) (10.1 ) Variable interest entity (income) loss 435 (3.2 ) 279 (0.3 ) (312 ) (3.8 ) State income taxes 189 (1.4 ) (63 ) 0.1 45 0.6 Investment in subsidiaries (845 ) 6.2 4,341 (4.1 ) (37 ) (0.5 ) Effect of foreign operations (146 ) 1.1 (454 ) 0.4 (432 ) (5.3 ) Dividends received deduction (147 ) 1.1 (144 ) 0.1 (129 ) (1.6 ) Other 283 (2.1 ) 3,488 (3.3 ) (513 ) (6.3 ) Actual income tax expense (benefit) $ (1,878 ) 13.8 % $ (8,894 ) 8.3 % $ 1,267 15.6 % The effective tax rate on the pre-tax loss from continuing operations for the year ended December31, 2009 was lower than the statutory rate of 35percent due primarily to increases in the valuation allowance and reserve for uncertain tax positions, partially offset by tax exempt interest and the change in investment in subsidiaries which was principally related to changes in the estimated U.S. tax liability with respect to the potential sale of subsidiaries. The effective tax rate on the pre-tax loss from continuing operations for the year ended December31, 2008 was lower than the statutory rate of 35percent due primarily to the change in investment in subsidiaries and a valuation allowance to reduce deferred tax assets to the amount that AIG believes

Quarterly Financial Information

Quarterly Financial Information (Unaudited)
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Quarterly Financial Information (Unaudited)	22. Quarterly Financial Information (Unaudited) Consolidated Statements of Income (Loss) Three Months Ended March31, June30, September30, December31, (dollars in millions, except per share data) 2009 2008 2009 2008 2009 2008 2009 2008 Total revenues $ 18,570 $ 12,255 $ 27,743 $ 18,325 $ 25,329 $ 34 $ 24,362 $ (23,718 ) Income (loss) from continuing operations before income taxes (6,210 ) (11,207 ) 520 (8,687 ) (356 ) (27,509 ) (7,602 ) (59,125 ) Income (loss) from discontinued operations, net of tax (77 ) (40 ) 594 (54 ) (66 ) (1,870 ) (994 ) (789 ) Net income (loss) (5,133 ) (7,727 ) 1,845 (5,399 ) (15 ) (24,705 ) (9,010 ) (62,556 ) Net income (loss) from continuing operations attributable to noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York - - - - - - 140 - Other (772 ) 75 10 (30 ) (471 ) (208 ) (294 ) (781 ) Total income (loss) from continuing operations attributable to noncontrolling interests (772 ) 75 10 (30 ) (471 ) (208 ) (154 ) (781 ) Net income (loss) attributable to AIG $ (4,353 ) $ (7,805 ) $ 1,822 $ (5,357 ) $ 455 $ (24,468 ) $ (8,873 ) $ (61,659 ) Earnings (loss) per common share: Basic Income (loss) from continuing operations $ (39.16 ) $ (61.41 ) $ 1.44 $ (40.81 ) $ 0.78 $ (167.40 ) $ (58.05 ) $ (454.01 ) Income (loss) from discontinued operations $ (0.51 ) $ (0.34 ) $ 0.86 $ (0.32 ) $ (0.10 ) $ (13.62 ) $ (7.46 ) $ (4.98 ) Diluted Income (loss) from continuing operations $ (39.16 ) $ (61.41 ) $ 1.44 $ (40.81 ) $ 0.77 $ (167.40 ) $ (58.05 ) $ (454.01 ) Income (loss) from discontinued operations $ (0.51 ) $ (0.34 ) $ 0.86 $ (0.32 ) $ (0.09 ) $ (13.62 ) $ (7.46 ) $ (4.98 ) Weighted average shares outstanding: Basic 135,252,869 126,400,579 135,281,740 130,248,736 135,293,841 135,169,101 135,446,727 135,207,631 Diluted 135,252,869 126,400,579 135,336,440 130,248,736 135,456,372 135,169,101 135,446,727 135,207,631 Noteworthy quarterly items income (expense): Credit valuation adjustment $ 1,787 $ 28 $ (37 ) $ (474 ) $ (645 ) $ (987 ) $ 393 $ (7,829 ) Other-than-temporary impairments (3,929 ) (5,317 ) (974 ) (6,508 ) (1,746 ) (19,226 ) (1,130 ) (17,598 ) Net gain (loss) on sale of divested businesses 250 - (566 ) - (885 ) - (70 ) - Adjustment to deferred tax valuation allowance (1,633 ) -

Information Provided in Connect

Information Provided in Connection With Outstanding Debt
	12 Months Ended Dec. 31, 2009 USD / shares
Notes to Consolidated Financial Statements
Information Provided in Connection With Outstanding Debt	23. Information Provided in Connection With Outstanding Debt The following condensed consolidating financial statements reflect the results of AIG Life Holdings (US),Inc. (AIGLH), formerly known as American General Corporation, a holding company and a wholly owned subsidiary of AIG. AIG provides a full and unconditional guarantee of all outstanding debt of AIGLH. Condensed Consolidating Balance Sheet (in millions) American International Group,Inc. (As Guarantor) AIGLH(a) Other Subsidiaries Eliminations Consolidated AIG December31, 2009 Assets: Investments(a) $ 10,702 $ - $ 736,977 $ (146,514 ) $ 601,165 Cash 57 2 4,341 - 4,400 Loans to subsidiaries(b) 72,926 - (72,926 ) - - Debt issuance costs, including prepaid commitment asset of $7,099 7,383 - 159 - 7,542 Investment in consolidated subsidiaries(b) 71,419 28,580 (980 ) (99,019 ) - Other assets, including current and deferred income taxes 10,986 2,618 164,670 (175 ) 178,099 Assets of businesses held for sale - - 56,379 - 56,379 Total assets $ 173,473 $ 31,200 $ 888,620 $ (245,708 ) $ 847,585 Liabilities: Insurance liabilities $ - $ - $ 461,706 $ (409 ) $ 461,297 Federal Reserve Bank of New York Commercial Paper Funding Facility - - 4,739 - 4,739 Federal Reserve Bank of New York credit facility 23,435 - - - 23,435 Other debt 45,435 2,097 210,513 (144,747 ) 113,298 Other liabilities, including intercompany balances(a)(d) 34,779 4,209 60,134 (1,940 ) 97,182 Liabilities of businesses held for sale - - 48,599 - 48,599 Total liabilities 103,649 6,306 785,691 (147,096 ) 748,550 Redeemable noncontrolling interests in partially owned consolidated subsidiaries - - 177 782 959 Total AIG shareholders' equity 69,824 24,894 83,303 (108,197 ) 69,824 Noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interest held by Federal Reserve Bank of New York - - 15,596 8,944 24,540 Other (including $2.2billion associated with businesses held for sale in 2009) - - 3,853 (141 ) 3,712 Total noncontrolling interests - - 19,449 8,803 28,252 Total equity 69,824 24,894 102,752 (99,394 ) 98,076 Total liabilities and equity $ 173,473 $ 31,200 $ 888,620 $ (245,708 ) $ 847,585 December31, 2008 Assets: Investments(a) $ 16,110 $ - $ 753,181 $ (132,379 ) $ 636,912 Cash 103 - 8,539 - 8,642 Loans to subsidiaries(b) 64,283 - (64,283 ) - - Debt issuance costs, including prepaid commitment asset of $15,458 15,743 - 172 - 15,915

Summary of Investments -- Other

Summary of Investments -- Other than Investments in Related Parties
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedules
Summary of Investments -- Other than Investments in Related Parties	ScheduleI Summary of Investments Other than Investments in Related Parties At December31, 2009 (in millions) Cost* Fair Value Amount at which shown in the Balance Sheet Fixed maturities: U.S. government and government-sponsored entities $ 11,833 $ 11,950 $ 11,950 Obligations of states, municipalities and political subdivisions 52,695 54,473 54,473 Non U.S. governments 64,469 67,005 67,005 Public utilities 10,319 10,862 10,862 All other corporate and structured securities 256,233 252,415 252,415 Securities lending invested collateral, at fair value 320 277 277 Total fixed maturities 395,869 396,982 396,982 Equity securities and mutual funds: Common stocks: Public utilities 390 498 498 Banks, trust and insurance companies 1,090 2,155 2,155 Industrial, miscellaneous and all other 4,183 6,004 6,004 Total common stocks 5,663 8,657 8,657 Preferred stocks 740 814 814 Mutual funds 8,721 8,369 8,369 Total equity securities and mutual funds 15,124 17,840 17,840 Mortgage and other loans receivable 27,461 25,957 27,461 Finance receivables, net of allowance 20,327 18,974 20,327 Other invested assets 45,042 43,972 45,235 Securities purchased under agreements to resell, at contract value 2,154 2,154 2,154 Short-term investments, at cost (approximates fair value) 47,075 47,075 47,075 Unrealized gain on swaps, options and forward transactions - 9,130 9,130 Total investments $ 566,204 * Original cost of equity securities and fixed maturities are reduced by other-than-temporary impairment charges, and, as to fixed maturities, reduced by repayments and adjusted for amortization of premiums or accrual of discounts.

Condensed Financial Information

Condensed Financial Information of Registrant
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedules
Condensed Financial Information of Registrant	ScheduleII Condensed Financial Information of Registrant Balance Sheet Parent Company Only December31, (in millions) 2009 2008 Assets: Investments $ 10,702 $ 16,110 Cash 57 103 Loans to subsidiaries* 72,926 64,283 Due from affiliates net* 382 222 Current and deferred income taxes 7,470 7,179 Debt issuance costs including prepaid commitment asset of $7,099 in 2009 and $15,458 in 2008 7,383 15,743 Investments in consolidated subsidiaries* 71,419 65,724 Other assets 3,134 4,306 Total assets $ 173,473 $ 173,670 Liabilities: Intercompany tax payable* $ 28,729 $ 26,435 Federal Reserve Bank of New York credit facility 23,435 40,431 Parent company long-term debt 28,299 29,321 AIG MIP matched notes and bonds payable 13,376 14,464 Series AIGFP matched notes and bonds payable 3,760 4,143 Intercompany loans payable* 1,778 158 Other liabilities (includes intercompany derivative liabilities of $1,278 in 2009 and $3,593 in 2008) 4,272 6,008 Total liabilities 103,649 120,960 AIG Shareholders' equity: Preferred stock 69,784 40,000 Common stock 354 368 Treasury stock (874 ) (8,450 ) Additional paid-in capital 6,358 39,488 Accumulated deficit (11,491 ) (12,368 ) Accumulated other comprehensive income (loss) 5,693 (6,328 ) Total AIG shareholders' equity 69,824 52,710 Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York - - Total equity 69,824 52,710 Total liabilities and equity $ 173,473 $ 173,670 * Eliminated in consolidation. See Accompanying Notes to Financial Statements Parent Company Only. ScheduleII Condensed Financial Information of Registrant (Continued)Statement of Income (Loss) Parent Company Only Years Ended December31, (in millions) 2009 2008 2007 Income Equity in undistributed net income (loss) of consolidated subsidiaries* $ (3,479 ) $ (61,542 ) $ 3,121 Interest income 4,126 2,741 714 Change in fair value of ML III (1,401 ) (900 ) - Dividend income from consolidated subsidiaries 2,002 2,401 4,694 Net realized capital losses (54 ) (5,745 ) (1,008 ) Other revenues 94 73 17 Expenses Accrued and compounding interest (2,022 ) (2,116 ) - Amortization of prepaid commitment asset (8,359 ) (9,279 ) - Total Interest expense on FRBNY Credit Facility (10,381 ) (11,395 ) - Other interest expense (2,496 ) (2,393 ) (1,341 ) Restructuring expense and related asset impairment and other expenses (407 ) (189 ) - Other expenses, net (1,230 ) (2,706 ) (770 ) Income (loss) from continuing operations before income tax expense (benefit) (13,226 ) (79,655 ) 5,427 Income tax expense (benef

Supplementary Insurance Informa

Supplementary Insurance Information
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedules
Supplementary Insurance Information	ScheduleIII Supplementary Insurance Information At December31, 2009, 2008 and 2007 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 Other Considerations Revenue Net Investment Income Losses and Loss Expenses Incurred, Benefits Amortization of Deferred Policy Acquisition Costs Other Operating Expenses Net Premiums Written 2009 General Insurance(c) $ 4,875 $ 85,386 $ 20,699 $ - $ 32,274 $ 3,295 $ 25,367 $ 6,627 $ 2,875 $ 30,664 Domestic Life Insurance Retirement Services 11,098 27,350 - 1,217 5,327 9,553 9,097 1,553 1,895 - Foreign Life Insurance Retirement Services 24,792 88,678 7 2,074 22,774 11,502 21,925 3,790 4,001 - Other 49 (27 ) 657 - 4,327 889 5,047 114 886 4,192 $ 40,814 $ 201,387 $ 21,363 $ 3,291 $ 64,702 $ 25,239 $ 61,436 $ 12,084 $ 9,657 $ 34,856 2008 General Insurance $ 5,114 $ 89,258 $ 25,735 $ - $ 36,499 $ 2,606 $ 26,093 $ 7,124 $ 3,965 $ 35,633 Domestic Life Insurance Retirement Services 14,447 29,479 - 1,265 7,644 9,134 11,535 522 3,257 - Foreign Life Insurance Retirement Services 26,166 112,882 - 1,853 24,710 157 11,599 4,071 4,321 - Other 55 (27 ) - - 9,711 (464 ) 9,612 304 3,472 9,601 $ 45,782 $ 231,592 $ 25,735 $ 3,118 $ 78,564 $ 11,433 $ 58,839 $ 12,021 $ 15,015 $ 45,234 2007 General Insurance $ 5,407 $ 85,500 $ 27,703 $ - $ 36,056 $ 5,348 $ 22,391 $ 6,679 $ 1,917 $ 37,107 Domestic Life Insurance Retirement Services 12,270 27,744 - 1,255 7,342 13,582 11,572 1,488 2,059 - Foreign Life Insurance Retirement Services 26,175 108,671 - 1,868 21,737 10,184 20,953 1,695 3,795 - Other 62 (28 ) - - 9,618 937 7,536 1,556 1,048 9,960 $ 43,914 $ 221,887 $ 27,703 $ 3,123 $ 74,753 $ 30,051 $ 62,452 $ 11,418 $ 8,819 $ 47,067 (a) Liability for unpaid claims and claims adjustment expense with respect to the General Insurance operations are net of discounts of $2.66billion, $2.57billion and $2.43billion at December31, 2009, 2008 and 2007, respectively. (b) Reflected in insurance balances payable on the accompanying Consolidated Balance Sheet. (c) Excludes amounts related to divested operations from the date of divestment.

2_Reinsurance

Reinsurance
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedules
Reinsurance	ScheduleIV Reinsurance At December31, 2009, 2008 and 2007 and for the years then ended (in millions) Gross Amount Ceded to Other Companies Assumed from Other Companies Net Amount Percent of Amount Assumed to Net 2009 Life insurance in-force(1) $ 2,340,019 $ 339,183 $ 1,023 $ 2,001,859 0.1 % Premiums: General Insurance $ 38,550 $ 9,897 $ 2,011 $ 30,664 6.6 % Domestic life Insurance Retirement Services 5,815 1,056 1 4,760 - Foreign life Insurance Retirement Services 23,248 823 133 22,558 (2) 0.6 Noncore insurance 2,195 631 2,628 4,192 62.7 Eliminations - (910 ) (910 ) - - Total premiums $ 69,808 $ 11,497 $ 3,863 $ 62,174 6.2 % 2008 Life insurance in-force $ 2,377,314 $ 384,538 $ 1,000 $ 1,993,776 0.1 % Premiums: General Insurance $ 45,425 $ 12,655 $ 2,863 $ 35,633 8.0 % Domestic life Insurance Retirement Services 7,921 1,078 30 6,873 0.4 Foreign life Insurance Retirement Services 25,142 756 29 24,415 (2) 0.1 Noncore insurance 3,997 697 6,301 9,601 65.6 Eliminations - (1,925 ) (1,925 ) - - Total premiums $ 82,485 $ 13,261 $ 7,298 $ 76,522 9.5 % 2007 Life insurance in-force $ 2,311,022 $ 402,654 $ 1,023 $ 1,909,391 0.1 % Premiums: General Insurance $ 48,030 $ 13,425 $ 2,502 $ 37,107 6.7 % Domestic life Insurance Retirement Services 7,515 1,044 19 6,490 0.3 Foreign life Insurance Retirement Services 22,163 719 8 21,452 (2) - Noncore insurance 4,025 722 6,657 9,960 66.8 Eliminations - (2,416 ) (2,416 ) - - Total premiums $ 81,733 $ 13,494 $ 6,770 $ 75,009 9.0 % (1) Excludes life insurance in-force of $157.8billion related to discontinued operations. (2) Includes accident and health premiums of $7.35 billion, $7.43billion and $6.21billion in 2009, 2008 and 2007, respectively.

Valuation and Qualifying Accoun

Valuation and Qualifying Accounts
	12 Months Ended Dec. 31, 2009 USD / shares
Financial Statement Schedules
Valuation and Qualifying Accounts	ScheduleV Valuation and Qualifying Accounts For the years ended December31, 2009, 2008 and 2007 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 Other Changes(a) Balance, End of Year 2009 Allowance for mortgage and other loans receivable $ 208 $ 737 $ (196 ) $ (4 ) $ (30 ) $ 123 $ 838 Allowance for finance receivables 1,472 1,649 (1,280 ) - (174 ) (61 ) 1,606 Allowance for premiums and insurances balances receivable 578 111 (73 ) - - (79 ) 537 Allowance for reinsurance assets 425 (35 ) 102 - - (52 ) 440 Valuation allowance for deferred tax assets 20,896 2,916 - - - (107 ) 23,705 Overhaul reserve(b) 419 347 - - - (376 ) 390 2008 Allowance for mortgage and other loans receivable $ 77 $ 70 $ - $ (3 ) $ - $ 64 $ 208 Allowance for finance receivables 878 1,427 (931 ) - - 98 1,472 Allowance for premiums and insurances balances receivable 662 205 (283 ) - - (6 ) 578 Allowance for reinsurance assets 520 4 (7 ) - - (92 ) 425 Valuation allowance for deferred tax assets 223 20,673 - - - - 20,896 Overhaul reserve(b) 372 265 - - - (218 ) 419 2007 Allowance for mortgage and other loans receivable $ 64 $ 20 $ (3 ) $ (6 ) $ - $ 2 $ 77 Allowance for finance receivables 737 646 (632 ) - - 127 878 Allowance for premiums and insurances balances receivable 756 114 (216 ) - - 8 662 Allowance for reinsurance assets 536 131 (62 ) - - (85 ) 520 Valuation allowance for deferred tax assets 11 212 - - - - 223 Overhaul reserve(b) 245 290 - - - (163 ) 372 (a) Includes recoveries of amounts previously charged off and reclassifications to/from other accounts. (b) Amounts for Overhaul reserve represent reimbursements to lessees for overhauls performed and amounts transferred to buyers for aircraft sold and is included in Other liabilities in the Consolidated Balance Sheet.

Document and Entity Information

Document and Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 29, 2010	Jun. 30, 2009
Document and Entity Information
Entity Registrant Name	AMERICAN INTERNATIONAL GROUP INC
Entity Central Index Key	0000005272
Document Type	10-K
Document Period End Date	2009-12-31
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			$2,794,000,000
Entity Common Stock, Shares Outstanding		134,926,293