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AIG Reports First Quarter 2012 Net Income of $3.2 Billion

  AIG Reports First Quarter 2012 Net Income of $3.2 Billion

        First Quarter 2012 After-Tax Operating Income of $3.1 Billion

   Core Insurance Operating Income of $2.4 Billion in First Quarter of 2012

Business Wire

NEW YORK -- May 03, 2012

American International Group, Inc. (NYSE: AIG) today reported net income
attributable to AIG of $3.2 billion and after-tax operating income of $3.1
billion for the quarter ended March 31, 2012, compared to net income
attributable to AIG of $1.3 billion and after-tax operating income of $2.1
billion for the first quarter of 2011. Diluted earnings per share and
after-tax operating income per share were $1.71 and $1.65, respectively, for
the first quarter of 2012, compared with diluted earnings per share and
after-tax operating income per share of $0.31 and $1.34, respectively, for the
first quarter of 2011.

“AIG has again delivered another strong quarter with our core insurance
businesses all posting profits,” said Robert H. Benmosche, AIG President and
Chief Executive Officer. “We also continue to make good on our promise to help
the U.S. Government profit from its investment in AIG. During the quarter, we
retired the preferred interests of AIA Aurora LLC (AIA SPV) one year ahead of
schedule and achieved the milestone of reducing total outstanding or
authorized U.S. Government assistance by 75 percent.

“In every corner of our operations, we are keenly focused on building on our
successes and studying and sharing our experiences and knowledge across the
organization. At Chartis, where we had very low natural catastrophe claims,
we’re already seeing the benefits of the realigned consumer and commercial
geographic structure and our emphasis on growth economies. Chartis’ results
also demonstrated progress in strategic initiatives to improve its mix of
business, loss ratio and risk selection ultimately increasing the intrinsic
value of the franchise. SunAmerica is benefitting from its broad portfolio of
competitive products, diverse and strong distribution relationships, and
continued discipline in product pricing. United Guaranty made a profit and was
successful in the market with its risk evaluation and pricing, while
proactively managing its legacy business to reduce delinquency.”

Mr. Benmosche concluded, “The people of AIG feel empowered and are accountable
for the decisions they make that directly benefit our customers and the
communities they serve. We are rebuilding AIG’s legacy of excellence. Across
the organization we are transforming the way we do business and our profits
this quarter illustrate, ultimately, the health of our businesses.”

Liquidity, Capital Management and Other Significant Developments

  *AIG shareholders’ equity totaled $103.5 billion at March 31, 2012. Book
    value per common share grew approximately 8 percent during the first
    quarter to $57.68 per share, including accumulated other comprehensive
    income.
  *On March 7, 2012, AIG sold 1.72 billion ordinary shares of AIA Group
    Limited (AIA) and applied approximately $5.6 billion of the proceeds to
    pay down a portion of the United States Department of the Treasury’s (U.S.
    Treasury) preferred interests in the AIA SPV, the special purpose entity
    that holds AIG’s remaining interest in AIA.
  *In March 2012, AIG’s $1.6 billion of proceeds from the sale of the
    securities held by Maiden Lane II LLC (ML II) by the Federal Reserve Bank
    of New York (FRBNY) were applied to pay down another portion of the U.S.
    Treasury’s preferred interests in the AIA SPV. On March 22, 2012, AIG made
    a final $1.5 billion payment to pay down the U.S. Treasury’s preferred
    interests in the AIA SPV in full. The security interests in the AIG assets
    that previously supported the pay down of the U.S. Treasury’s AIA SPV
    preferred interests, including the remaining interest in AIA, the equity
    interests in International Lease Finance Corporation (ILFC), AIG’s
    interests in Maiden Lane III LLC (ML III), and the escrow holding the
    remaining proceeds from AIG’s sale of ALICO to MetLife, Inc., have been
    released.
  *In March 2012, the U.S. Treasury completed a registered public offering of
    AIG common stock in which it sold approximately 207 million shares for
    aggregate proceeds of approximately $6.0 billion. AIG purchased
    approximately 103 million of these shares in this offering for an
    aggregate amount of approximately $3 billion. As a result of the offering
    by the U.S. Treasury and purchase by AIG, the U.S. Government’s ownership
    in AIG was reduced to approximately 70 percent.
  *During the first quarter of 2012, AIG issued $2.0 billion of long term
    notes for the Matched Investment Program and ILFC issued $2.4 billion of
    debt.
  *Dividends and note repayments from operating companies totaled $2.6
    billion in the first quarter of 2012.
  *AIG Parent liquidity sources amounted to approximately $12.4 billion at
    March 31, 2012.


COMPONENTS OF AFTER-TAX OPERATING INCOME (LOSS)
                                                          
                                                           First Quarter
($ in millions)                                           2012      2011
Insurance Operations                                                
Chartis                                                    $1,043     $(424  )
SunAmerica                                                 1,311      1,171
Mortgage Guaranty (reported in Other)                     8        14     
Total Insurance Operations                                2,362    761    
Aircraft Leasing                                           119        117
Direct Investment book                                     (156   )   451
Global Capital Markets                                     92         277
Change in fair value of AIA (including realized gains in   1,795      1,062
2012)
Increase in fair value of ML III                           1,252      744
Interest expense                                           (470   )   (558   )
Corporate expenses and eliminations^(1)                   (171   )  267    
Pre-tax operating income                                  4,823    3,121  
Income tax (expense) / benefit                             (1,485 )   (835   )
Noncontrolling interest – Treasury/Fed                     (208   )   (252   )
Other noncontrolling interest                             (33    )  55     
After-tax operating income attributable to AIG            $3,097   $2,089 

(1) Includes $296 million of deferred gain associated with termination of
FRBNY credit facility in the first quarter of 2011.


CHARTIS

Chartis reported operating income of $1.0 billion in the first quarter of
2012, compared to a $424 million operating loss in the first quarter of 2011.
First quarter results demonstrated progress toward improving risk-adjusted
profitability, the quality of its business portfolio, and the strength of its
capital position. Chartis continued to benefit from growth in higher value
lines of business and geographies and improving pricing trends. First quarter
2012 results included catastrophe losses of $80 million and modest net prior
year reserve development. As part of AIG’s ongoing focus on capital
management, Chartis paid $1.0 billion in non-cash dividends to AIG Parent
during the current quarter.

The first quarter 2012 combined ratio was 102.1, compared to 118.6 in the
first quarter of 2011. The first quarter 2012 accident year combined ratio,
excluding catastrophes, was 100.4, compared to 98.3 in the first quarter of
2011. Improvement in the loss ratio due to a shift to higher value businesses,
pricing improvements, and risk selection was offset by higher expenses. First
quarter 2012 results reflect an expense ratio of 34.1, which increased 5.2
points over the first quarter of 2011. The first quarter of 2011 expense ratio
reflected a reduction of bad debt allowance, compared to additional bad debt
allowance recorded in the first quarter of 2012. In addition, the benefit from
the amortization of value of business acquired liabilities decreased in the
first quarter of 2012. These two items contributed approximately 1.9 points to
the expense ratio increase. The increase in 2012 expenses also reflected
higher acquisition costs related to changes in business mix toward more
profitable lines and higher commission rates, as well as an increase in
infrastructure investments.

First quarter 2012 net premiums written of $8.8 billion decreased 3.7 percent
compared to the first quarter of 2011, or 4.5 percent excluding the effect of
foreign currency exchange rates. Commercial Insurance premiums in original
currencies decreased 8.5 percent compared to the first quarter of 2011. The
continued restructuring of loss sensitive businesses to improve capital
efficiency contributed to 2.6 percent of the decline, and the impact of a
multi-year financial lines policy that produced net premiums written of $148
million in the prior year period accounted for an additional 2.6 percent of
the decline. The remainder of the decrease was primarily driven by initiatives
to improve risk selection, particularly in the casualty line of business. In
line with Chartis’ shift in mix of business to higher value products,
specialty premiums increased in the quarter. Chartis also continued to expand
its commercial business in growth economy nations, consistent with its
strategic objectives. Consumer Insurance premiums in original currencies
increased 2.9 percent, primarily driven by growth in key international
markets, higher margin lines of business and the implementation of the group
benefits strategy with American General Life Companies. Consumer Insurance
also realized profitable growth by investing in direct marketing distribution
channels outside the United States and Canada.

Commercial Insurance reported first quarter 2012 operating income of $565
million and a combined ratio of 103.4, compared to a $384 million operating
loss and a combined ratio of 122.2 in the first quarter of 2011. The accident
year combined ratio, excluding catastrophes, was 101.1, compared to 99.1 in
the first quarter of 2011. Improvement in the loss ratio from the shift to
higher value business, price improvements, and risk selection was offset by
higher expenses. First quarter 2012 results reflect an expense ratio of 29.3,
which increased 5.7 points over the first quarter of 2011. Increases in bad
debt allowance and acquisition costs due primarily to change in mix of
business affected the expense ratio by approximately 1.8 points and
approximately 3.0 points, respectively. The remaining increase was largely
related to strategic investments in systems, processes, and talent, which
should yield greater savings and a stronger franchise in the future.

Consumer Insurance reported first quarter 2012 operating income of $234
million and a combined ratio of 96.7, compared to a $255 million operating
loss and a combined ratio of 110.2 in the first quarter of 2011. The accident
year combined ratio, excluding catastrophes, was 97.0, compared to 95.6 in the
first quarter of 2011. Improvement in the loss ratio from the shift to higher
value business, price improvements, and risk selection was offset by higher
expenses. First quarter 2012 results reflect an expense ratio of 38.6, which
increased 3.0 points over the first quarter of 2011, primarily due to a
decrease in the benefit from the amortization of value of business acquired
liabilities compared to 2011, coupled with increased acquisition and operating
expenses related to growth in selected markets in 2012.

SUNAMERICA FINANCIAL GROUP

SunAmerica reported operating income of $1.3 billion in the first quarter of
2012, compared to operating income of $1.2 billion in the first quarter of
2011. First quarter 2012 results benefited from the reinvestment of cash
during 2011 and positive equity market performance in the first quarter of
2012. Partially offsetting these improvements were lower returns from hedge
fund and private equity investments in the first quarter of 2012, versus a
strong 2011 first quarter. Returns for hedge fund and private equity
investments are reported on a one month and one quarter lag, respectively.

Net investment income in the first quarter of 2012 was $131 million higher
than the prior year period due primarily to higher base yields. The first
quarter 2012 base investment yield was 5.50 percent, compared to 5.04 percent
in the first quarter of 2011, reflecting the redeployment of excess cash
during 2011. This yield improvement, combined with SunAmerica’s disciplined
management of interest crediting rates, resulted in improved net investment
spreads for group retirement products and individual fixed annuities.

Premiums, deposits, and other considerations totaled $5.6 billion in the first
quarter of 2012, compared to $6.4 billion in the first quarter of 2011, as
fixed annuity deposits declined due to the current low interest rate
environment. However, group retirement products, individual variable annuities
and retail mutual funds all showed significant improvements. Group retirement
products increased 8 percent in the first quarter of 2012 over the
corresponding 2011 period, primarily due to an increase in individual rollover
deposits. SunAmerica expects the rate of growth of individual rollover
deposits to decrease in the near term due to the low interest rate
environment. Individual variable annuity deposits totaled $1.0 billion in the
2012 first quarter, a 38 percent increase over the first quarter of 2011, due
to competitive product enhancements and reinstatements during the last year at
a number of key broker dealers. Net flows were positive for the fifth
consecutive quarter. Retail life insurance sales grew 7 percent during the
first quarter of 2012 over the first quarter of 2011 as product enhancements
and efforts to re-engage independent distribution channels continued to
produce positive sales results.

During the first quarter of 2012, SunAmerica provided $1.6 billion of
liquidity to AIG Parent from its insurance subsidiaries funded by payments
representing proceeds from the FRBNY’s sale of ML II assets.

Assets under management were $265.0 billion at the end of the first quarter of
2012 compared to $253.9 billion at the end of the first quarter of 2011.

AIRCRAFT LEASING

ILFC reported first quarter 2012 operating income of $119 million, compared to
operating income of $117 million in the first quarter of 2011. During the
first quarter of 2012, ILFC recorded rental revenues of $1.1 billion, similar
to the first quarter of 2011, reflecting the re-lease of older aircraft at
lower rates and the limited delivery schedule of new aircraft over the past
year, offset by revenue from AeroTurbine, acquired by ILFC in the fourth
quarter of 2011.

ILFC raised approximately $2.4 billion in both secured and unsecured debt
during the first quarter of 2012. The proceeds from these issuances were used
to retire the only remaining credit facility with a change of control
provision, prepay an existing secured term loan using proceeds from lower cost
unsecured debt, and increase liquidity. ILFC recognized a $21 million charge
in connection with the early repayment of certain facilities.

MORTGAGE GUARANTY

United Guaranty Corporation (UGC), AIG’s residential mortgage guaranty
operations, reported operating income of $8 million for the first quarter of
2012, compared to operating income of $14 million in the first quarter of
2011.

First quarter 2012 results reflect favorable prior year development in the
first-lien segment as a result of UGC’s efforts to work with lenders on aged
delinquent accounts. UGC has contacted mortgage lenders regarding over 20,000
aged delinquent accounts and received responses for over 14,000. The responses
have resulted in additional rescinded coverage, or denied or paid claims as
well as some delinquency cures. Delinquency rates were down. The 2012 first
quarter results continued to be affected by general weakness in the housing
market.

Net premiums written were $191 million for the first quarter of 2012, compared
to $204 million in the first quarter of 2011, as coverage rescissions resulted
in $19 million in premium refunds. Domestic first-lien new insurance written
totaled $6.5 billion for the quarter compared to $2.5 billion for the same
period in 2011, driven primarily by UGC’s risk-based pricing strategy and the
withdrawal of certain competitors from the market. Quality remained high, with
an average FICO score of 760 and an average loan to value of 91 percent on new
business.

OTHER OPERATIONS

AIG’s Other Operations reported first quarter 2012 operating income of $2.3
billion, compared to operating income of $2.1 billion in the first quarter of
2011.

The fair value of AIG’s AIA ordinary shares increased $1.8 billion for the
first quarter of 2012, based on the March 30, 2012 closing price on the Hong
Kong Stock Exchange. Included in the fair value increase is the $0.6 billion
gain realized on the sale of 1.72 billion AIA ordinary shares in the first
quarter of 2012.

The fair value of AIG’s interest in ML III increased $1.3 billion during the
first quarter of 2012 due to tightening credit spreads, compared with an
increase of $744 million in the first quarter of 2011.

Other corporate expenses totaled $202 million in the first quarter of 2012,
compared to $142 million in the first quarter of 2011.

Conference Call

AIG will host a conference call tomorrow, May 4, 2012, at 8:00 a.m. ET to
review these results. The call is open to the public and can be accessed via a
live listen-only webcast at http://www.aig.com. A replay will be available
after the call at the same location.

Additional supplementary financial data is available in the Investor
Information section at www.aig.com.

It should be noted that the conference call (including the conference call
presentation material), the earnings release and the financial supplement may
include projections, goals, assumptions, and statements that may constitute
“forward-looking statements” within the meaning of the Private Securities
Litigation Reform Act of 1995. These projections, goals, assumptions, and
statements are not historical facts but instead represent only AIG’s belief
regarding future events, many of which, by their nature, are inherently
uncertain and outside AIG’s control. These projections, goals, assumptions,
and statements include statements preceded by, followed by or including words
such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “view,” “target,”
or “estimate.” These projections, goals, assumptions, and statements may
address, among other things: the timing of the disposition of the ownership
position of the U.S. Treasury in AIG; the cash flow projections and fair value
for AIG’s interest in ML III; the monetization of AIG’s interests in ILFC;
AIG’s exposures to subprime mortgages, monoline insurers, the residential and
commercial real estate markets, state and municipal bond issuers, and
sovereign bond issuers; AIG’s exposure to European governments and European
financial institutions; AIG’s strategy for risk management; AIG’s ability to
retain and motivate its employees; AIG’s generation of deployable capital;
AIG’s return on equity and earnings per share long-term aspirational goals;
AIG’s strategies to grow net investment income, efficiently manage capital and
reduce expenses; AIG’s strategies for customer retention, growth, product
development, market position, financial results and reserves; and the revenues
and combined ratios of AIG’s subsidiaries. It is possible that AIG’s actual
results and financial condition will differ, possibly materially, from the
results and financial condition indicated in these projections, goals,
assumptions, and statements. Factors that could cause AIG’s actual results to
differ, possibly materially, from those in the specific projections, goals,
assumptions, and statements include: actions by credit rating agencies;
changes in market conditions; the occurrence of catastrophic events;
significant legal proceedings; concentrations in AIG’s investment portfolios,
including its municipal bond portfolio; judgments concerning casualty
insurance underwriting and reserves; judgments concerning the recognition of
deferred tax assets; judgments concerning deferred policy acquisition costs
(DAC) recoverability; judgments concerning the recoverability of aircraft
values in ILFC’s fleet; and such other factors as are discussed throughout
Part I Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations in AIG's Quarterly Report on Form 10-Q for the quarter
ended March 31, 2012, and in Part I Item 1A. Risk Factors and discussed
throughout Part II Item 7. Management’s Discussion and Analysis of Financial
Condition and Results of Operations in AIG’s Annual Report on Form 10-K for
the year ended December 31, 2011, as amended by Amendment No. 1 and Amendment
No. 2 on Form 10-K/A filed on February 27, 2012 and March 30, 2012,
respectively. AIG is not under any obligation (and expressly disclaims any
obligation) to update or alter any projections, goals, assumptions, or other
statements, whether written or oral, that may be made from time to time,
whether as a result of new information, future events or otherwise.

American International Group, Inc. (AIG) is a leading international insurance
organization serving customers in more than 130 countries. AIG companies serve
commercial, institutional, and individual customers through one of the most
extensive worldwide property-casualty networks of any insurer. In addition,
AIG companies are leading providers of life insurance and retirement services
in the United States. AIG Common Stock is listed on the New York Stock
Exchange and the Tokyo Stock Exchange.

Comment on Regulation G

Throughout this press release, including the financial highlights, AIG
presents its operations in the way it believes will be most meaningful and
representative of ongoing operations, as well as most transparent. That
presentation includes the use of certain non-GAAP financial measures. The
reconciliations of such measures to the most comparable GAAP measures in
accordance with Regulation G are included within the relevant tables or in the
First Quarter 2012 Financial Supplement available in the Investor Information
section of AIG’s website, www.aig.com.

AIG believes that After-tax operating income (loss) permits a better
assessment and enhanced understanding of the operating performance of its
businesses by highlighting the results from ongoing operations and the
underlying profitability of its businesses. After-tax operating income (loss)
excludes net income (loss) from discontinued operations, net loss on sale of
divested businesses, net income from divested businesses, deferred income tax
valuation allowance charges and releases, amortization of the FRBNY prepaid
commitment fee asset, changes in fair value of SunAmerica’s fixed income
securities designated to hedge living benefit liabilities, SunAmerica’s
increased benefit reserves and benefit (amortization) of DAC, value of
business acquired (VOBA) and sales inducement assets (SIA) related to net
realized capital gains (losses), net realized capital gains (losses), and
non-qualifying derivative hedging gains (losses), excluding net realized
capital gains (losses). See page 9 for the reconciliation of Net income
attributable to AIG to After-tax operating income.

Additionally, in some cases, revenues, net income, operating income and
related rates of performance are shown exclusive of the effect of tax benefits
not obtained for losses incurred, the recognition of other-than-temporary
impairments, partnership income, other enhancements to income, credit
valuation adjustments, unrealized market valuation gains (losses), the effect
of catastrophe-related losses and prior year loss development, asbestos
losses, returned or additional premiums related to prior year development,
foreign exchange rates, and aircraft impairments.

In all such instances, AIG believes that excluding these items permits
investors to better assess the operating performance of each of AIG’s
underlying businesses by highlighting the results from ongoing operations and
the underlying profitability of its businesses. AIG believes that providing
information in a non-GAAP manner is more useful to investors and analysts and
more meaningful than the GAAP presentation. When such measures are disclosed,
reconciliations to GAAP pre-tax income are provided.

Although the investment of premiums to generate investment income (or loss)
and realized capital gains or losses is an integral part of both life and
general insurance operations, the determination to realize capital gains or
losses is independent of the insurance underwriting process. Moreover, under
applicable GAAP accounting requirements, losses can be recorded as the result
of other-than-temporary declines in value without actual realization. In sum,
investment income and realized capital gains or losses for any particular
period are not indicative of underlying business performance for such period.

Life and retirement services production (premiums, deposits and other
considerations and life insurance CPPE sales) is a non-GAAP measure which
includes life insurance premiums, deposits on annuity contracts and mutual
funds. AIG uses this measure because it is a standard measure of performance
used in the insurance industry and thus allows for more meaningful comparisons
with AIG’s insurance competitors.

During the first quarter of 2012, AIG revised its definition of After-tax
operating income (loss) to exclude changes in the fair value of SunAmerica’s
fixed income securities designated to hedge living benefit liabilities and
increased benefit reserves related to net realized capital gains (losses). AIG
believes that this revised measure of After-tax operating income (loss)
permits a better assessment and enhanced understanding of the operating
performance of its SunAmerica business by excluding from operating results the
volatility associated with these hedging and capital gains taking activities.
AIG believes this revised definition of After-tax operating income (loss) is a
better measure of how AIG assesses the operating performance of SunAmerica’s
operations.


American International Group, Inc.
Financial Highlights*
(in millions, except share data)
                                          Three Months Ended March 31,
                                                                 % Inc.
                                           2012      2011       (Dec.)
Chartis Insurance Operations:
Net Premiums Written                     $ 8,820    $ 9,166       (3.7   ) %
Net Premiums Earned                        8,688       8,651        0.4
Claims and claims adjustment expenses      5,909       7,756        (23.8  )
incurred
Underwriting expenses                      2,959      2,498       18.5
Underwriting loss                          (180  )     (1,603 )     88.8
Net Investment Income                    1,223    1,179     3.7     
Operating Income (Loss)                  1,043    (424   )   -       
Net Realized Capital Gains (Losses)        (135  )     50           -
(a)
Other income                               2          -           -
Pre-tax Income (Loss)                    $ 910       $ (374   )     -
                                                                   
Loss Ratio                                 68.0        89.7
Expense Ratio                              34.1       28.9   
Combined Ratio                           102.1    118.6             
                                                                             
SunAmerica Financial Group Operations:
Premiums                                 $ 605       $ 621          (2.6   )
Policy fees                                691         684          1.0
Net Investment Income                      2,885      2,754       4.8
Total revenues                             4,181       4,059        3.0
Benefits and expenses                    2,870    2,888     (0.6   ) 
Operating Income                         1,311    1,171     12.0    
Changes in fair value of fixed income
securities designated to hedge living      (19   )     -            -
benefit liabilities, net of interest
expense
Increased benefit reserves and
benefits (amortization) of DAC, VOBA,      36          16           125.0
and SIA related to net realized
capital gains (losses)
Net Realized Capital Losses (a)            (466  )     (220   )     (111.8 )
Pre-tax Income                             862         967          (10.9  )
                                                                             
Aircraft Leasing Operations:
Revenues                                   1,153       1,156        (0.3   )
Expenses                                 1,034    1,039     (0.5   ) 
Operating Income                         119      117       1.7     
Net Realized Capital Gains (a)             1          3           (66.7  )
Pre-tax Income                             120        120         -
                                                                   
Other Operations, Operating Income       2,322    2,137     8.7     
Other Operations, Pre-tax Income
(Loss) before Net Realized Capital         2,319       (1,562 )     -
Gains
Other Operations, Net Realized Capital     417         (435   )     -
Gains (Losses) (a)
Consolidation and Elimination              (44   )     (26    )     (69.2  )
Adjustments (a)
Income (Loss) from Continuing
Operations before Income Tax Expense       4,584       (1,310 )     -
(Benefit)
Income Tax Expense (Benefit)               1,148      (226   )     -
Income (Loss) from Continuing              3,436       (1,084 )     -
Operations
Income from Discontinued Operations,       13         2,585       (99.5  )
net of tax
Net Income                                 3,449       1,501        129.8
Less:
Net Income from Continuing Operations
Attributable to Noncontrolling
Interests:
Noncontrolling Nonvoting, Callable,        208         252          (17.5  )
Junior and Senior Preferred Interests
Other                                      33         (55    )     -
Total Net Income from Continuing
Operations Attributable to                 241         197          22.3
Noncontrolling interests
Net Income from Discontinued
Operations Attributable to                 -          7           -
Noncontrolling interests
Total net income attributable to           241        204         18.1
noncontrolling interests
Net Income Attributable to AIG             3,208      1,297       147.3
Net Income Attributable to AIG Common    $ 3,208    $ 485         N/M      %
Shareholders
                                                                             


Financial Highlights -continued

                                           Three Months Ended March 31,
                                                                   % Inc.
                                            2012       2011        (Dec.)
                                                                             
Net Income Attributable to AIG              $ 3,208     $ 1,297      147.3   %
Adjustments to arrive at After-tax
operating income (loss) attributable to
AIG (amounts net of tax):
Net Income from Discontinued Operations       13          2,578      (99.5 )
Net Loss on Sale of Divested Businesses       (2    )     (47    )   95.7
Net Income from Divested Businesses           -           6          -
Deferred Income Tax Valuation allowance       289         (529   )   -
(charge) / release
Amortization of FRBNY prepaid commitment      -           (2,358 )   -
fee asset
Changes in Fair Value of SunAmerica's
Fixed Income Securities designated to         (19   )     -          -
hedge living benefit liabilities
SunAmerica Increased Benefit Reserves and
Benefit (amortization) of DAC, VOBA and       36          11         227.3
SIA related to net realized capital gains
(losses)
Net Realized Capital Gains (Losses)           (239  )     (384   )   37.8
Non-qualifying Derivative Hedging Gains
(Losses), excluding net realized capital      33         (69    )   -
gains (losses)
After-Tax Operating Income Attributable     $ 3,097    $ 2,089     48.3
to AIG
                                                                             
Income (Loss) Per Common Share - Diluted:
Net Income Attributable to AIG Common       $ 1.71     $ 0.31      N/M
Shareholders
After-Tax Operating Income Attributable     $ 1.65     $ 1.34      23.0
to AIG Common Shareholders
                                                                             
Book Value Per Common Share on AIG          $ 57.68     $ 44.33      30.1    %
Shareholders' Equity (b)
                                                                             
Return on equity - After-tax operating        12.8  %     11.6   %
income (c)



Financial Highlights - Notes
    
*     Including reconciliation in accordance with Regulation G.
      Includes gains (losses) from hedging activities that did not qualify for
(a)   hedge accounting treatment, including the related foreign exchange gains
      and losses.
(b)   Represents total AIG shareholders' equity divided by common shares
      issued and outstanding.
(c)   Computed using adjusted shareholders' equity, which excludes Accumulated
      other comprehensive income.

Contact:

American International Group, Inc.
Investment Community
Liz Werner, 212-770-7074
or
News Media
Mark Herr, 212-770-3505
Cell:718-685-9348