American International (AIG) 10-Q 7 May 10 2010 Q1 Quarterly report Financial data

Consolidated Balance Sheet

Consolidated Balance Sheet (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Fixed maturity securities:
Bonds available for sale, at fair value (amortized cost: 2010 - $254,416; 2009 - $364,491)	$256,870	$365,551
Bond trading securities, at fair value	26,365	31,243
Equity securities:
Common and preferred stock available for sale, at fair value (cost: 2010 - $4,882; 2009 - $6,464)	6,831	9,522
Common and preferred stock trading, at fair value	613	8,318
Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2010 - $157; 2009 - $119)	22,533	27,461
Finance receivables, net of allowance	18,912	20,327
Flight equipment primarily under operating leases, net of accumulated depreciation	43,258	44,091
Other invested assets (portion measured at fair value: 2010 - $10,154; 2009 - $18,888)	33,250	45,235
Securities purchased under agreements to resell, at fair value	1,615	2,154
Short-term investments (portion measured at fair value: 2010 - $22,184; 2009 - $23,975)	38,800	47,263
Total investments	449,047	601,165
Cash	2,133	4,400
Accrued investment income	3,467	5,152
Premiums and other receivables, net of allowance	18,718	16,549
Reinsurance assets, net of allowance	25,791	22,425
Current and deferred income taxes	6,805	4,108
Deferred policy acquisition costs	19,064	40,814
Real estate and other fixed assets, net of accumulated depreciation	3,259	4,142
Unrealized gain on swaps, options and forward transactions, at fair value	7,383	9,130
Goodwill	2,565	6,195
Other assets, including prepaid commitment asset of $6,460 in 2010 and $7,099 in 2009 (portion measured at fair value: 2010 - $13; 2009 - $288)	17,072	18,976
Separate account assets, at fair value	51,953	58,150
Assets of businesses held for sale	256,440	56,379
Total assets	863,697	847,585
Liabilities:
Liability for unpaid claims and claims adjustment expense	86,489	85,386
Unearned premiums	26,350	21,363
Future policy benefits for life and accident and health insurance contracts	47,752	116,001
Policyholder contract deposits (portion measured at fair value: 2010 - $641; 2009 - $5,214)	142,932	220,128
Other policyholder funds	7,493	13,252
Commissions, expenses and taxes payable	2,874	4,950
Insurance balances payable	4,004	4,393
Funds held by companies under reinsurance treaties	708	774
Securities sold under agreements to repurchase (portion measured at fair value: 2010 - $3,418; 2009 - $3,221)	3,418	3,505
Securities and spot commodities sold but not yet purchased, at fair value	458	1,030
Unrealized loss on swaps, options and forward transactions, at fair value	6,296	5,403
Trust deposits and deposits due to banks and other depositors (portion measured at fair value: 2010 - $16; 2009 - $15)	1,030	1,641
Other liabilities	21,015	22,503
Federal Reserve Bank of New York Commercial Paper Funding Facility (portion measured at fair value: 2010 - $2,285; 2009 - $2,742)	2,285	4,739
Federal Reserve Bank of New York credit facility	27,400	23,435
Other long-term debt (portion measured at fair value: 2010 - $12,800; 2009 - $13,195)	109,744	113,298
Separate account liabilities	51,953	58,150
Liabilities of businesses held for sale	217,837	48,599
Total liabilities	760,038	748,550
Commitments, contingencies and guarantees (see Note 9)
Redeemable noncontrolling interests in partially owned consolidated subsidiaries (including $1,270 and $211 associated with businesses held for sale in 2010 and 2009, respectively)	1,940	959
AIG shareholders' equity:
Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2010 - 141,605,834; 2009- 141,732,263	354	354
Treasury stock, at cost; 2010 - 6,661,350; 2009 - 6,661,356 shares of common stock	(874)	(874)
Additional paid-in capital	6,356	6,358
Accumulated deficit	(9,871)	(11,491)
Accumulated other comprehensive income	7,053	5,693
Total AIG shareholders' equity	75,001	69,824
Noncontrolling interests:
Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York	25,059	24,540
Other (including $374 and $2,234 associated with businesses held for sale in 2010 and 2009, respectively)	1,659	3,712
Total noncontrolling interests	26,718	28,252
Total equity	101,719	98,076
Total liabilities and equity	863,697	847,585
Series E
AIG shareholders' equity:
Preferred stock	41,605	41,605
Series F
AIG shareholders' equity:
Preferred stock	7,378	5,179
Series C
AIG shareholders' equity:
Preferred stock	$23,000	$23,000

Consolidated Balance Sheet (Par

Consolidated Balance Sheet (Parenthetical - Assets and Liabilities) (USD $)
In Millions	Mar. 31, 2010	Dec. 31, 2009
Assets:
Bonds available for sale, amortized cost	$254,416	$364,491
Common and preferred stock available for sale, cost	4,882	6,464
Mortgage and other loans receivable, net of allowance, portion measured at fair value	157	119
Other invested assets, portion measured at fair value	10,154	18,888
Short-term investments, portion measured at fair value	22,184	23,975
Other assets: prepaid commitment asset	6,460	7,099
Other assets, including prepaid commitment asset: portion measured at fair value	13	288
Liabilities:
Policyholder contract deposits, portion measured at fair value	641	5,214
Securities sold under agreements to repurchase, portion measured at fair value	3,418	3,221
Trust deposits and deposits due to banks and other depositors, portion measured at fair value	16	15
Federal Reserve Bank of New York Commercial Paper Funding Facility, portion measured at fair value	2,285	2,742
Other long-term debt, portion measured at fair value	12,800	13,195
Redeemable noncontrolling interests in partially owned consolidated subsidiaries, portion associated with businesses held for sale	$1,270	$211

1_Consolidated Balance Sheet (P

Consolidated Balance Sheet (Parenthetical - Equity) (USD $)
In Millions, except Share data	Mar. 31, 2010	Dec. 31, 2009
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)	141,605,834	141,732,263
Treasury stock, shares of common stock (in shares)	6,661,350	6,661,356
Noncontrolling interests, other: portion associated with businesses held for sale	$374	$2,234
Series E
AIG shareholders' equity:
Preferred stock, par value (in dollars per share)	$5	$5
Preferred stock, issued (in shares)	400,000	400,000
Series F
AIG shareholders' equity:
Preferred stock, par value (in dollars per share)	$5	$5
Preferred stock, issued (in shares)	300,000	300,000
Preferred stock, aggregate liquidation value (in dollars)	7,543	5,344
Series C
AIG shareholders' equity:
Preferred stock, par value (in dollars per share)	$5	$5
Preferred stock, issued (in shares)	100,000	100,000
Preferred stock, aggregate liquidation value (in dollars)	0.5	0.5

Consolidated Statement of Incom

Consolidated Statement of Income (Loss) (USD $)
In Millions, except Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Revenues:
Premiums and other considerations	$10,067	$12,841
Net investment income	4,836	915
Net realized capital losses:
Total other-than-temporary impairments on available for sale securities	(309)	(3,672)
Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Accumulated other comprehensive loss	(521)
Net other-than-temporary impairments on available for sale securities recognized in net income (loss)	(830)	(3,672)
Other realized capital gains	282	898
Total net realized capital losses	(548)	(2,774)
Unrealized market valuation gains (losses) on AIGFP super senior credit default swap portfolio	119	(452)
Other income	1,856	2,785
Total revenues	16,330	13,315
Benefits, claims and expenses:
Policyholder benefits and claims incurred	8,519	11,353
Policy acquisition and other insurance expenses	3,262	3,576
Interest expense	1,734	2,587
Restructuring expenses and related asset impairment and other expenses	110	338
Net (gains) losses on sales of divested businesses	77	(262)
Other expenses	1,793	2,239
Total benefits, claims and expenses	15,495	19,831
Income (loss) from continuing operations before income tax benefit	835	(6,516)
Income tax benefit	(91)	(1,303)
Income (loss) from continuing operations	926	(5,213)
Income (loss) from discontinued operations, net of income tax expense (benefit) (See Note 3)	1,173	80
Net income (loss)	2,099	(5,133)
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	519
Other	129	(774)
Total net income (loss) from continuing operations attributable to noncontrolling interests	648	(774)
Net loss from discontinued operations attributable to noncontrolling interests		(6)
Total net income (loss) attributable to noncontrolling interests	648	(780)
Net income (loss) attributable to AIG	1,451	(4,353)
Net income (loss) attributable to AIG common shareholders	$294	($5,365)
Basic:
Income (loss) from continuing operations (in dollars per share)	0.41	-40.29
Income (loss) from discontinued operations (in dollars per share)	1.75	0.62
Diluted:
Income (loss) from continuing operations (in dollars per share)	0.41	-40.29
Income (loss) from discontinued operations (in dollars per share)	1.75	0.62
Weighted average shares outstanding:
Basic (in shares)	135,658,680	135,252,869
Diluted (in shares)	135,724,939	135,252,869

Consolidated Statement of Compr

Consolidated Statement of Comprehensive Income (Loss) (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Net income (loss)	$2,099	($5,133)
Other comprehensive income (loss):
Unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken	993
Income tax benefit (expense) on above changes	(220)
Unrealized appreciation (depreciation) of all other investments - net of reclassification adjustments	2,531	(3,372)
Income tax benefit (expense) on above changes	(1,374)	1,392
Foreign currency translation adjustments	(958)	(941)
Income tax benefit (expense) on above changes	429	209
Net derivative gains (losses) arising from cash flow hedging activities-net of reclassification adjustments	24	26
Income tax benefit (expense) on above changes	(2)	27
Change in retirement plan liabilities adjustment	77	58
Income tax benefit (expense) on above changes	(24)	(18)
Other comprehensive income (loss)	1,476	(2,619)
Comprehensive income (loss)	3,575	(7,752)
Comprehensive income (loss) attributable to noncontrolling interests	(31)	(867)
Comprehensive income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York	519
Comprehensive income (loss) attributable to AIG	$3,087	($6,885)

Consolidated Statement of Cash

Consolidated Statement of Cash Flows (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Summary:
Net cash provided by (used in) operating activities	$3,195	$3,770
Net cash provided by (used in) investing activities	(4,516)	1,432
Net cash provided by (used in) financing activities	(266)	(9,644)
Effect of exchange rate changes on cash	(42)	(171)
Change in cash	(1,629)	(4,613)
Cash at beginning of period	4,400	8,642
Reclassification of assets held for sale	(638)
Cash at end of period	2,133	4,029
Cash flows from operating activities:
Net income (loss)	2,099	(5,133)
(Income) loss from discontinued operations	(1,173)	(80)
Noncash revenues, expenses, gains and losses included in income (loss):
Net (gains) losses on sales of securities available for sale and other assets	(422)	57
Net (gains) losses on sales of divested businesses	77	(262)
Unrealized (gains) losses in earnings - net	591	(373)
Equity in (income) loss from equity method investments, net of dividends or distributions	(336)	2,084
Depreciation and other amortization	2,529	3,050
Provision for mortgage, other loans and finance receivables	344	1,019
Impairments of assets	1,753	4,193
Amortization of costs and accrued interest and fees related to FRBNY Credit Facility	856	1,495
Changes in operating assets and liabilities:
General and life insurance reserves	2,323	(1,988)
Premiums and other receivables and payables - net	(1,002)	(482)
Reinsurance assets and funds held under reinsurance treaties	(3,637)	1,772
Capitalization of deferred policy acquisition costs	(1,914)	(2,313)
Other policyholder funds	(63)	(1)
Current and deferred income taxes - net	(954)	(1,761)
Other assets and liabilities - net	(791)	49
Trading securities	21	1,027
Securities sold under agreements to repurchase, net of securities purchased under agreements to resell	306	390
Securities and spot commodities sold but not yet purchased	(572)	(1,528)
Finance receivables and other loans held for sale - originations and purchases	(5)	(22)
Sales of finance receivables and other loans - held for sale	48	32
Other, net	267	371
Total adjustments	(581)	6,809
Net cash provided by (used in) operating activities - continuing operations	345	1,596
Net cash provided by (used in) operating activities - discontinued operations	2,850	2,174
Net cash provided by (used in) operating activities	3,195	3,770
Cash flows from investing activities:
Sales of available for sale investments	7,893	12,263
Maturities of fixed maturity securities available for sale and hybrid investments	3,340	3,592
Sales of trading securities	1,746	3,635
Sales or distributions of other invested assets (including flight equipment)	2,157	2,711
Sales of divested businesses, net	1,471	704
Principal payments received on mortgage and other loans receivable	938	1,010
Principal payments received on and sales of finance receivables held for investment	1,590	4,006
Purchases of available for sale investments	(15,847)	(9,974)
Purchases of trading securities	(356)	(2,829)
Purchases of other invested assets (including flight equipment)	(1,915)	(2,228)
Acquisition, net of cash acquired	(139)
Mortgage and other loans receivable issued	(303)	(778)
Finance receivables held for investment - originations and purchases	(746)	(1,855)
Change in securities lending invested collateral		969
Net additions to real estate, fixed assets, and other assets	(64)	(101)
Net change in short-term investments	(1,043)	(7,778)
Net change in non-AIGFP derivative assets and liabilities	(129)	(48)
Other, net	(49)	(63)
Net cash provided by (used in) investing activities - continuing operations	(1,456)	3,236
Net cash provided by (used in) investing activities - discontinued operations	(3,060)	(1,804)
Net cash provided by (used in) investing activities	(4,516)	1,432
Cash flows from financing activities:
Policyholder contract deposits	4,394	4,738
Policyholder contract withdrawals	(3,639)	(8,316)
Change in other deposits	(122)	49
Change in commercial paper and other short-term debt		(421)
Change in Federal Reserve Bank of New York Commercial Paper Funding Facility borrowings	(3,565)	(2,945)
Federal Reserve Bank of New York credit facility borrowings	8,300	10,900
Federal Reserve Bank of New York credit facility repayments	(4,551)	(4,600)
Issuance of other long-term debt	4,170	1,209
Repayments on other long-term debt	(7,143)	(5,953)
Change in securities lending payable		(490)
Drawdown on the Department of the Treasury Commitment	2,199
Other, net	(462)	(653)
Net cash provided by (used in) financing activities - continuing operations	(419)	(6,482)
Net cash provided by (used in) financing activities - discontinued operations	153	(3,162)
Net cash provided by (used in) financing activities	(266)	(9,644)
Cash (paid) received during the period for:
Interest	(1,047)	(1,466)
Taxes	(604)	(179)
Non-cash financing/investing activities:
Interest credited to policyholder contract deposits included in financing activities	2,086	1,598
Long-term debt reduction due to deconsolidations	829
Debt assumed on consolidation of variable interest entities	2,591
Debt assumed on acquisition	$164

Consolidated Statement of Equit

Consolidated Statement of Equity (USD $)
In Millions	Series E Preferred stock	Series F Preferred stock	Series C Preferred stock	Total AIG Shareholders' Equity	Preferred stock	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Income (Loss)	Noncontrolling Interests		Total
Balance at Dec. 31, 2009	$41,605	$5,179	$23,000	$69,824	$69,784	$354	($874)	$6,358	($11,491)	$5,693	$28,252		$98,076
Increase (decrease) in equity
Series F drawdowns		2,199		2,199	2,199								2,199
Common stock issued under stock plans				(5)				(5)					(5)
Cumulative effect of change in accounting principle, net of tax				(107)					169	(276)			(107)
Net income				1,451					1,451		133	[1]	1,584	[1]
Other comprehensive income (loss)				1,636						1,636	(165)	[2]	1,471	[2]
Net decrease due to deconsolidation											(2,161)		(2,161)
Contributions from noncontrolling interest											210		210
Distributions to noncontrolling interests											(87)		(87)
Net income attributable to noncontrolling nonvoting, callable, junior and senior preferred interests held by the Federal Reserve Bank of New York											519		519
Other				3				3			17		20
Balance at Mar. 31, 2010	$41,605	$7,378	$23,000	$75,001	$71,983	$354	($874)	$6,356	($9,871)	$7,053	$26,718		$101,719
[1]Excludes $(4) million attributable to redeemable noncontrolling interests and Net income attributable to noncontrolling nonvoting, callable, junior and senior preferred interests held by the Federal Reserve Bank of New York of $519 million.
[2]Excludes $5 million attributable to redeemable noncontrolling interests.

2_Consolidated Statement of Equ

Consolidated Statement of Equity (Parenthetical) (USD $)
In Millions	3 Months Ended Mar. 31, 2010
Consolidated Statement of Equity
Net loss attributable to redeemable noncontrolling interests	($4)
Net income attributable to noncontrolling nonvoting, callable, junior and senior preferred interests held by the Federal Reserve Bank of New York	519
Other comprehensive income attributable to redeemable noncontrolling interests	$5

Summary of Significant Accounti

Summary of Significant Accounting Policies
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Basis of Presentation These unaudited condensed consolidated financial statements do not include all disclosures required by accounting principles generally accepted in the United States (GAAP) for complete consolidated financial statements and should be read in conjunction with the audited consolidated financial statements and the related notes included in the Annual Report on Form10-K of American International Group,Inc. (AIG) for the year ended December31, 2009 (2009 Annual Report on Form10-K). In the opinion of management, these consolidated financial statements contain the normal recurring adjustments necessary for a fair statement of the results presented herein. AIG evaluated the need to disclose events that occurred subsequent to the balance sheet date. 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 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; fair value measurements of certain financial assets and liabilities, including credit default swaps (CDS) and AIG's economic interest in Maiden Lane IILLC (ML II)and equity interest in Maiden Lane IIILLC (ML III)(together, the Maiden Lane Interests); classification of entities as held-for-sale or as discontinued operations; and fair value of the assets and liabilities, including non-controlling interests, related to acquisitions. 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. Out of Period Adjustments For the three months ended March31, 2010, AIG recorded out of period adjustments relating to prior years that decreased Net income attributable to AIG by $158million, primarily related to the effect of recording impairments on certain consolidated investments held in the Institutional Asset Management operations, which affected the calculation of income taxes. While these adjustments were noteworthy for the quarter, after evaluating the quantitative and qualitative aspects

Segment Information

Segment Information
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Segment Information	2. 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. The following table presents AIG's operations by reportable segment: Three Months Ended March31,(in millions) 2010 2009 Total revenues: General Insurance $ 8,849 $ 8,099 Domestic Life Insurance Retirement Services 3,226 1,703 Foreign Life Insurance Retirement Services* 1,075 763 Financial Services 1,508 1,265 Other 2,062 2,180 Consolidation and eliminations (390 ) (695 ) Total revenues 16,330 13,315 Pre-tax income (loss) from continuing operations: General Insurance 1,016 102 Domestic Life Insurance Retirement Services 327 (1,827 ) Foreign Life Insurance Retirement Services* 85 (128 ) Financial Services (439 ) (1,130 ) Other (294 ) (3,444 ) Consolidation and eliminations 140 (89 ) Total pre-tax income (loss) from continuing operations $ 835 $ (6,516 ) * As a result of the announced AIA and ALICO transactions, and their treatment as discontinued operations, Foreign Life Insurance Retirement Services operations consist of a single operating segment. See Note3 herein for information on these transactions. The following table presents AIG's operations by operating segment: Three Months Ended March31,(in millions) 2010 2009 General Insurance Total revenues: Commercial Insurance $ 5,403 $ 5,024 Foreign General Insurance 3,446 3,075 Total revenues $ 8,849 $ 8,099 Pre-tax income (loss): Commercial Insurance $ 730 $ (224 ) Foreign General Insurance 286 326 Total pre-tax income (loss) $ 1,016 $ 102 Domestic Life Insurance Retirement Services Total revenues: Domestic Life Insurance $ 1,934 $ 1,526 Domestic Retirement Services 1,292 177 Total revenues $ 3,226 $ 1,703 Pre-tax income (loss): Domestic Life Insurance $ 227 $ (298 ) Domestic Retirement Services 100 (1,529 ) Total pre-tax income (loss) $ 327 $ (1,827 ) Financial Services Total revenues: Aircraft Leasing $ 882 $ 1,281 Capital Markets (234 ) (969 ) Consumer Finance 779 813 Other, including intercompany adjustments 81 140 Total revenues $ 1,508 $ 1,265 Pre-tax income (loss): Aircraft Leasing $ (81 ) $ 316 Capital Markets (298 ) (1,121 ) Consumer Finance (25 ) (306 ) Other, including intercompany adjustments (35 ) (19 ) Total pre-tax income

Discontinued Operations and Hel

Discontinued Operations and Held-for-Sale Classification
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Discontinued Operations and Held-for-Sale Classification	3. Discontinued Operations and Held-for-Sale Classification Discontinued Operations As discussed in Note1 herein, during the first quarter of 2010, AIG entered into agreements to sell AIA and ALICO. Also, 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. AIG expects each of these sales to close in 2010. These transactions met the criteria for held-for-sale and discontinued operations accounting. Accordingly, results of operations for these companies are included as discontinued operations in AIG's Consolidated Statement of Income (Loss) for all periods shown and their aggregated assets and liabilities are presented separately as single line items in the asset and liability sections of the Consolidated Balance Sheet at March31, 2010 for AIA and ALICO and at March31, 2010 and December31, 2009 for Nan Shan. Each of these companies previously had been a component of the Foreign Life Insurance Retirement Services reportable segment. Income (loss) from discontinued operations includes interest expense, including periodic amortization of the prepaid commitment fee asset, on debt to be assumed by the buyers of AIA and ALICO and on debt required to be repaid as a result of the disposition transactions associated with the FRBNY Credit Facility totaling $183million and $258million in the three months ended March31, 2010 and 2009, respectively. The interest expense allocated to discontinued operations for the three-month periods ended March31, 2010 and 2009 was based on the estimated funds of $8.6billion committed to repay the FRBNY Credit Facility multiplied by the daily interest rate. The periodic amortization of the prepaid commitment fee allocated to discontinued operations was determined based on the ratio of funds committed to repay the FRBNY Credit Facility to the total outstanding available amount under the FRBNY Credit Facility. A summary of income (loss) from discontinued operations is as follows: Three Months Ended March31,(in millions) 2010 2009 Premiums and other considerations $ 6,525 $ 6,024 Net investment income 2,252 1,449 Net realized capital gains (losses) 63 (587 ) Total revenues 8,840 6,886 Income (loss) from discontinued operations 1,142 152 Loss on sale (106 ) (3 ) Income (loss) from discontinued operations, before income tax expense (benefit) 1,036 149 Income tax expense (benefit) (137 ) 69 Income (loss) from discontinued operations, net of tax $ 1,173 $ 80 Certain other sales completed during 2010 and 2009 were not classified as discontinued operations due to AIG's continued involvement or because associated assets, liabilities and results of operations were not material to AIG's consolidated financial position or results of operations. Held-for-Sale Classification On September5, 2009, AIG entered into an agreement to sell its investment advisory and third party asset management business for a $277million cash payment at closing plus contingent consideration to be receiv

Business Combination

Business Combination
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Business Combination	4. Business Combination On March31, 2010, AIG, through a Chartis International subsidiary, purchased additional voting shares in Fuji Fire Marine Insurance Company Limited (Fuji), a publicly traded Japanese insurance company with general insurance and some life insurance operations. The acquisition of the additional voting shares for $145million increased Chartis' total voting ownership interest in Fuji from 41.7percent to 54.8percent, which resulted in Chartis International obtaining control of Fuji. This acquisition was made to maintain Chartis International's share in the substantial Japanese market, which is undergoing significant consolidation. The purchase was accounted for under the acquisition method. Chartis identified and estimated certain of the fair values of assets acquired, liabilities assumed, and noncontrolling interests of Fuji as of the acquisition date. Because the acquisition was completed on the last day of the quarter, Chartis has not obtained final appraisals of Fuji's insurance contracts, loans, certain real estate or intangible assets. Based on the estimated fair values assigned to the assets acquired, liabilities assumed and noncontrolling interests, Chartis recorded an unallocated purchase price of $581million in Other liabilities in the Consolidated Balance Sheet. Chartis is in the process of reassessing the recognition and measurement of identifiable assets acquired, including the value of the business acquired and other intangibles, and liabilities assumed. Upon completion of the reassessment process, Chartis will adjust the fair value of the assets acquired and liabilities assumed for any significant differences to the provisional fair values. An adjustment to the purchase price allocation may also occur if new information on Fuji becomes known or discovered within one year from the acquisition date. To the extent an unallocated purchase price credit remains, AIG will record a bargain purchase gain. It is anticipated that any gain recognized will not be subject to U.S. or foreign income tax, because such gain would only be recognized for tax purposes upon sale of the Fuji shares. The following table summarizes the estimated preliminary fair values of major classes of assets acquired and liabilities assumed and the unallocated purchase price at the date of acquisition: (in millions) At March31,2010 Identifiable net assets: Investments $ 10,121 Cash 6 Premiums and other receivables 889 Reinsurance assets 517 Real estate and other fixed assets 428 Other assets 108 Liability for unpaid claims and claims adjustment expense (1,561 ) Unearned premiums (3,139 ) Future policy benefits for life and accident and health insurance contracts (1,934 ) Other policyholder funds (3,536 ) Other liabilities (460 ) Total preliminary identifiable net assets acquired 1,439 Less: Cash consideration transferred 145 Fair value of the noncontrolling interest 421 Fair value of AIG's previous equity interest in Fuji 292 Unallocated purchase price $ 581

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Fair Value Measurements	5. Fair Value Measurements Fair Value Measurements on a Recurring Basis AIG measures the following financial instruments at fair value on a recurring basis: 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; 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 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 contracts, most s

Investments

Investments
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Investments	6. Investments Securities Available for Sale The following table presents the amortized cost or cost and fair value of AIG's available for sale securities: (in millions) Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other-Than- Temporary Impairments in AOCI(a) March31, 2010 Bonds available for sale: U.S. government and government sponsored entities $ 4,777 $ 106 $ (27 ) $ 4,856 $ - Obligations of states, municipalities and political subdivisions 50,427 2,018 (292 ) 52,153 - Non-U.S. governments 23,305 725 (213 ) 23,817 (1 ) Corporate debt 127,707 8,507 (1,862 ) 134,352 14 Mortgage-backed, asset-backed and collateralized: RMBS 30,089 1,027 (3,897 ) 27,219 (1,595 ) CMBS 10,869 256 (3,180 ) 7,945 (451 ) CDO/ABS 7,242 324 (1,038 ) 6,528 64 Total mortgage-backed, asset-backed and collateralized 48,200 1,607 (8,115 ) 41,692 (1,982 ) Total bonds available for sale(b) 254,416 12,963 (10,509 ) 256,870 (1,969 ) Equity securities available for sale: Common stock 2,511 1,770 (19 ) 4,262 - Preferred stock 635 103 (1 ) 737 - Mutual funds 1,736 102 (6 ) 1,832 - Total equity securities available for sale 4,882 1,975 (26 ) 6,831 - Total(c) $ 259,298 $ 14,938 $ (10,535 ) $ 263,701 $ (1,969 ) 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 ) 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 mortgage-backed, asset-backed and collateralized 58,801 1,470 (11,767 ) 48,504 (2,923 ) Total bonds available for sale(b) 364,491 17,786 (16,726 ) 365,551 (2,805 ) Equity securities available for sale: Common stock 4,460 2,913 (75 ) 7,298 - Preferred stock 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(c) $ 370,955 $ 20,975 $ (16,857 ) $ 375,073 $ (2,805 ) (a) Represents the amount of other-than-temporary impairment losses recognized in Accumulated other comprehensive income,

Variable Interest Entities

Variable Interest Entities
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Variable Interest Entities	7. Variable Interest Entities The accounting standards related to the consolidation of variable interest entities (VIEs) provide 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. Consolidation of a VIE by its primary beneficiary is not based on majority voting interest, but rather is based on other criteria. While AIG enters into various arrangements with VIEs in the normal course of business, AIG's involvement with VIEs is primarily as a passive investor in debt securities (rated and unrated) and equity interests issued by VIEs via its insurance companies. In all instances, AIG determines whether it is the primary beneficiary or a variable 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 involvements with the entity. AIG also evaluates the design of the VIE and the related risks the entity was designed to expose the variable interest holders to in evaluating consolidation. For VIEs with attributes consistent with that of an investment company or a money market fund, the primary beneficiary is the party or group of related parties that absorbs a majority of the expected losses of the VIE, receives the majority of the expected residual returns of the VIE, or both. For all other variable interest entities, the primary beneficiary is the entity that has both (1)the power to direct the activities of the VIE that most significantly affect the entity's economic performance and (2)the obligation to absorb losses or the right to receive benefits that could be potentially significant to the VIE. While also considering these factors, the consolidation conclusion depends on the breadth of AIG's decision-making ability and its ability to influence activities that significantly affect the economic performance of the VIE. Exposure to Loss AIG's total off-balance sheet exposure associated with VIEs, primarily consisting of financial guarantees and commitments to real estate and investment funds, was $1.0billion and $2.2billion at March31, 2010 and December31, 2009, respectively. The following table presents AIG's total assets, total liabilities and off-balance sheet exposure associated with its variable interests in consolidated VIEs: VIE Assets* VIE Liabilities Off-Balance Sheet Exposure (in billions) March31, 2010 December31, 2009 March31, 2010 December31, 2009 March31, 2010 December31, 2009 Realestateandinvestmentfunds $ 7.5 $ 4.6 $ 3.4 $ 2.9 $ 0.2 $ 0.6 Commercial paper conduit 2.3 3.6 1.4 3.0 - - CDOs - 0.2 - 0.1 - - Affordable housing partnerships 2.7 2.5 0.3 - - - Other 7.6 3.4 4.7 2.1 - - VIEs of

Derivatives and Hedge Accountin

Derivatives and Hedge Accounting
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Derivatives and Hedge Accounting	8. Derivatives and Hedge Accounting AIG uses derivatives and other financial instruments as part of its financial risk management programs and as part of its investment operations. AIGFP 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: March31, 2010 December31, 2009 Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities (in millions) Notional Amount(a) Fair Value(b) Notional Amount(a) Fair Value(b) Notional Amount(a) Fair Value(b) Notional Amount(a) Fair Value(b) Derivatives designated as hedging instruments: Interest rate contracts(c) $ 5,743 $ 752 $ 1,578 $ 125 $ 10,612 $ 2,129 $ 3,884 $ 375 Derivatives not designated as hedging instruments: Interest rate contracts(c) 291,191 25,763 266,816 21,582 345,614 27,451 300,847 23,718 Foreignexchangecontracts 6,492 425 10,607 705 16,662 720 9,719 939 Equity contracts 7,577 828 5,851 781 8,175 1,184 7,713 1,064 Commodity contracts 292 66 110 53 759 883 381 373 Credit contracts 2,277 559 142,890 5,507 3,706 1,210 190,275 5,815 Other contracts 28,633 638 15,355 1,062 34,605 928 23,310 1,101 Total derivatives not designated as hedging instruments 336,462 28,279 441,629 29,690 409,521 32,376 532,245 33,010 Total derivatives $ 342,205 $ 29,031 $ 443,207 $ 29,815 $ 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 counterpa

Commitments, Contingencies and

Commitments, Contingencies and Guarantees
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Commitments, Contingencies and Guarantees	9. Commitments, Contingencies and Guarantees In the normal course of business, various commitments and contingent liabilities are entered into by AIG and certain of its subsidiaries. In addition, AIG guarantees various obligations of certain subsidiaries. Although AIG cannot currently quantify its ultimate liability for unresolved litigation and investigation matters including those referred to below, it is possible that such liability could have a material adverse effect on AIG's consolidated financial condition or its consolidated results of operations or consolidated cash flows for an individual reporting period. (a) Litigation and Investigations 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 United Guaranty Corporation (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 fi

Total Equity and Earnings

Total Equity and Earnings (Loss) Per Share
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Total Equity and Earnings (Loss) Per Share	10. Total Equity and Earnings (Loss) Per Share The following table provides a reconciliation of the beginning and ending balances of the components of total equity (excluding the effects of redeemable noncontrolling interests): 2010 2009 Three Months Ended March31, (In millions) Total AIG Shareholders' Equity Non- Controlling Interest Total Equity Total AIG Shareholders' Equity Non- Controlling Interest Total Equity Balance,beginningofyear $ 69,824 $ 28,252 $ 98,076 $ 52,710 $ 8,095 $ 60,805 SeriesC issuance - - - 1 - 1 SeriesF drawdowns 2,199 - 2,199 - - - Common stock issued under stock plans (5 ) - (5 ) (1 ) - (1 ) Cumulative effect of change in accounting principle, net of tax (107 ) - (107 ) 15 - 15 Net income (loss) 1,451 133 1,584 (4,353 ) (792 ) (5,145 ) Other comprehensive income (loss) 1,636 (165 ) 1,471 (2,532 ) (87 ) (2,619 ) Net decrease due to deconsolidation - (2,161 ) (2,161 ) - 476 476 Contributions from noncontrolling interest - 210 210 - 391 391 Distributions to noncontrolling interests - (87 ) (87 ) - (589 ) (589 ) Net income (loss) attributable to noncontrolling nonvoting, callable, junior and senior preferred interests held by the Federal Reserve Bank of New York - 519 519 - - - Other 3 17 20 (81 ) (44 ) (125 ) Balance, end of period $ 75,001 $ 26,718 $ 101,719 $ 45,759 $ 7,450 $ 53,209 Preferred Stock During the first quarter of 2010, AIG drew approximately $2.2billion under the Department of the Treasury Commitment and, as a result, the liquidation preference of the AIG SeriesF Preferred Stock increased to $7.543billion in the aggregate. As a result of AIG's failure to declare and pay dividends on SeriesE Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share (AIG SeriesE Preferred Stock), and AIG SeriesF Preferred Stock for four quarterly dividend payment periods, the United States Department of the Treasury, as the sole holder of the AIG SeriesE Preferred Stock and AIG SeriesF Preferred Stock, exercised its right and elected Ronald A. Rittenmeyer and Donald H. Layton (the Preferred Directors) to the Board of Directors of AIG (the Board) by written consent effective April1, 2010. The Preferred Directors are to hold office until the next annual meeting (or special meeting called for the purpose of electing directors) or until all the dividends payable on all outstanding shares of the AIG SeriesE Preferred Stock and the AIG SeriesF Preferred Stock have been declared and paid in full for four consecutive quarters. See Note16 of Notes to Consolidated Financial Statements of AIG's 2009 Annual Report on Form10-K for a discussion of the terms of AIG's outstanding Preferred Stock. Accumulated Other Comprehensive Income (Loss) A rollforward of Accumulated other comprehensive income (loss) is as follow

Restructuring

Restructuring
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Restructuring	11. 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 (together with its trustees, the 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 cumulatively incurred or can be reasonably expected to be incurred, the total expenses are approximately $2.1billion and $2.3billion, respectively, at March31, 2010, as set forth in the table below. These amounts exclude expenses that could not be reasonably estimated at March31, 2010, as well as expenses (principally professional fees) that are expected to be capitalized. With respect to the FRBNY and the trustees of the Trust, these amounts include only actual reimbursement and advancement payments made through March31, 2010. 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(a) Other(b) Total ThreeMonthsEndedMarch31,2010

Ownership

Ownership
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Ownership	12. Ownership (a)According to the Schedule13D as amended through March17, 2010, filed by Maurice R. Greenberg, Edward E. Matthews, Starr International Company,Inc. (Starr International), C.V. StarrCo. (CV Starr),Inc. and Universal Foundation,Inc. (Universal Foundation) (collectively, the Starr Group), the Starr Group could be deemed to beneficially own 14,105,606 shares of AIG Common Stock at that date. Each of the Maurice R. and Corinne P. Greenberg Family Foundation,Inc., the Maurice R. and Corinne P. Greenberg Joint Tenancy,LLC and C.V. StarrCo.,Inc. Trust no longer has the power to vote or direct the disposition of any shares of AIG Common Stock. Based on the shares of AIG Common Stock outstanding at April30, 2010, this ownership would represent approximately 10.4percent 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 March17, 2010. (b)For discussion of the AIG SeriesC Preferred Stock and the ownership by the Trust, see Note16 of Notes to Consolidated Financial Statements of AIG's 2009 Annual Report on Form10-K .

Employee Benefits

Employee Benefits
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Employee Benefits	13. Employee Benefits The following table presents the components of net periodic benefit cost with respect to pensions and other postretirement benefits: Pensions Postretirement (in millions) NonU.S. Plans* U.S. Plans Total NonU.S. Plans* U.S. Plans Total Three Months Ended March31, 2010 Components of net periodic benefit cost: Service cost $ 32 $ 36 $ 68 $ 2 $ 2 $ 4 Interest cost 15 54 69 1 4 5 Expected return on assets (7 ) (64 ) (71 ) - - - Amortization of prior service credit (2 ) - (2 ) - - - Amortization of net loss 11 12 23 - - - Other (1 ) - (1 ) - - - Net periodic benefit cost $ 48 $ 38 $ 86 $ 3 $ 6 $ 9 Three Months Ended March31, 2009 Components of net periodic benefit cost: Service cost $ 31 $ 41 $ 72 $ 3 $ 3 $ 6 Interest cost 16 55 71 1 4 5 Expected return on assets (9 ) (55 ) (64 ) - - - Amortization of prior service credit (3 ) - (3 ) - - - Amortization of net loss 11 24 35 - - - Other 3 - 3 - (3 ) (3 ) Net periodic benefit cost $ 49 $ 65 $ 114 $ 4 $ 4 $ 8 * Non U.S. pension and post-retirement costs shown above include $21million and $2million, respectively, for the three months ended March31, 2010 and $19million and $2million respectively, for the three months ended March31, 2009 associated with discontinued operations. At December31, 2009, AIG's non-U.S. pension and post retirement plans were underfunded by $1.6billion and $106million, respectively. Those amounts included $548million and $61million, respectively, for pension and postretirement plans that are now classified as liabilities held for sale. As a result of the Fuji acquisition, AIG assumed the obligations related to the Fuji plans. As of December31, 2009, Fuji's aggregate projected benefit obligation and plan assets were $252million and $292million, respectively. See Note4 herein for more information on the Fuji acquisition. For the three-month period ended March31, 2010, AIG contributed $37million to its U.S. and non-U.S. pension plans and expects to contribute an additional $97million for the remainder of 2010. These estimates are subject to change since contribution decisions are affected by various factors, including AIG's liquidity, asset dispositions, market performance and management discretion.

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Income Taxes	14. Income Taxes Interim Period Tax Assumptions and Effective Tax Rates AIG's actual income tax (benefit) expense differs from the statutory U.S. federal amount computed by applying the federal income tax rate due to the following: 2010 Three Months Ended March31, (dollars in millions) Pre-Tax Income Amount Percent of Pre-tax Income U.S. federal income tax at statutory rate $ 1,871 $ 655 35.0 % Adjustments: Tax exempt interest (155 ) (8.3 ) Variable interest entity (income) loss 30 1.6 State income taxes (86 ) (4.6 ) Other (21 ) (1.1 ) Effect of discontinued operations 166 8.9 State tax valuation allowance continuing operations 65 3.5 Reduction of valuation allowancecontinuing operations (216 ) (11.6 ) Reduction of valuation allowancediscontinued operations (665 ) (35.5 ) Total income tax benefit (227 ) (12.1 ) Amount included in discontinued operations (1,036 ) (137 ) (13.2 ) Tax benefit from continuing operations $ 835 $ (91 ) (10.9 )% AIG's income tax benefit from continuing operations for the three months ended March31, 2010 and 2009 is comprised of the following: (in millions) 2010 2009 Current tax provision (benefit) $ 849 $ 301 Deferred tax provision (benefit) (940 ) (1,604 ) Total tax provision (benefit) attributable to continuing operations $ (91 ) $ (1,303 ) AIG is unable to estimate the annual effective tax rate for 2010 due to the significant variations in the customary relationship between income tax expense and pre-tax accounting income or loss; consequently, the actual effective tax rate for the interim period is being utilized. For the three-month period ended March31, 2010, the effective tax rate on the pre-tax income from continuing operations was (10.9) percent and the effective tax rate on the pre-tax income included in discontinued operations was (13.2) percent. The effective tax rate was negative because AIG recorded a tax benefit on pre-tax income. The tax benefit was primarily due to decreases in the deferred tax asset valuation allowance of $82million related to certain subsidiaries that file separate income tax returns, $140million which principally offsets the tax expense related to the pre-tax income from continuing operations earned during the quarter, and $665million related to changes in value of subsidiaries to be sold and included in discontinued operations. In making its determination of the fair values of the subsidiaries to be sold, AIG considered, among other information, valuations prepared for various purposes by third parties. The effective tax rate on the pre-tax loss from continuing operations for the three-month period ended March31, 2009 was 20.0percent. The effective tax rate was lower than the statutory rate due primarily to a $1.6billion increase in the deferred tax asset valuation allowance against a portion of AIG's net deferred tax asset, partially offset by $63

Information Provided in Connect

Information Provided in Connection With Outstanding Debt
	3 Months Ended Mar. 31, 2010
Notes to Consolidated Financial Statements
Information Provided in Connection With Outstanding Debt	15. 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 Reclassifications and Eliminations Consolidated AIG March31, 2010 Assets: Investments(a) $ 9,271 $ - $ 584,700 $ (144,924 ) $ 449,047 Cash 360 - 1,773 - 2,133 Loans to subsidiaries(b) 74,191 - (74,191 ) - - Debt issuance costs, including prepaid commitment asset of $6,460 6,739 - 212 - 6,951 Investment in consolidated subsidiaries(b) 76,020 29,941 (1,950 ) (104,011 ) - Other assets, including current and deferred income taxes 11,035 2,650 138,630 (3,189 ) 149,126 Assets of businesses held for sale - - 253,301 3,139 256,440 Total assets $ 177,616 $ 32,591 $ 902,475 $ (248,985 ) $ 863,697 Liabilities: Insurance liabilities $ - $ - $ 316,096 $ (368 ) $ 315,728 Federal Reserve Bank of New York Commercial Paper Funding Facility - - 2,285 - 2,285 Federal Reserve Bank of New York credit facility 27,400 - - - 27,400 Other debt 43,378 2,137 208,608 (144,379 ) 109,744 Other liabilities, including intercompany balances(a)(c) 31,837 4,227 51,843 (863 ) 87,044 Liabilities of businesses held for sale - - 217,801 36 217,837 Total liabilities 102,615 6,364 796,633 (145,574 ) 760,038 Redeemable noncontrolling interests in partially owned consolidated subsidiaries (including $1,270 associated with businesses held for sale in 2010) - - 1,282 658 1,940 Total AIG shareholders' equity 75,001 26,227 103,036 (129,263 ) 75,001 Noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interest held by Federal Reserve Bank of New York - - - 25,059 25,059 Other (including $374million associated with businesses held for sale in 2010) - - 1,524 135 1,659 Total noncontrolling interests - - 1,524 25,194 26,718 Total equity 75,001 26,227 104,560 (104,069 ) 101,719 Total liabilities and equity $ 177,616 $ 32,591 $ 902,475 $ (248,985 ) $ 863,697 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 issuan

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	Apr. 30, 2010
Document and Entity Information
Entity Registrant Name	AMERICAN INTERNATIONAL GROUP INC
Entity Central Index Key	0000005272
Document Type	10-Q
Document Period End Date	2010-03-31
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		135,070,621
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1