AIG Reports First Quarter 2013 Net Income of $2.2 Billion

  AIG Reports First Quarter 2013 Net Income of $2.2 Billion

  *First Quarter 2013 After-Tax Operating Income of $2.0 billion
  *Book value per share, excluding Accumulated other comprehensive income
    (AOCI), of $59.39, up 12 percent from the prior-year first quarter
  *Insurance operating income of $3.0 billion, up 28 percent, from the
    prior-year first quarter

Business Wire

NEW YORK -- May 02, 2013

American International Group, Inc. (NYSE: AIG) today reported net income
attributable to AIG of $2.2 billion and after-tax operating income of $2.0
billion for the quarter ended March 31, 2013, compared to net income
attributable to AIG of $3.2 billion and after-tax operating income of $3.0
billion for the first quarter of 2012. The prior-year first quarter included
$3.3 billion of pre-tax income from investments in AIA Group Limited (AIA),
Maiden Lane II LLC (ML II), and Maiden Lane III LLC (ML III) that were sold or
liquidated in 2012.

Diluted earnings per share attributable to AIG and after-tax operating income
per share attributable to AIG were $1.49 and $1.34, respectively, for the
first quarter of 2013, compared with diluted earnings per share attributable
to AIG and after-tax operating income per share attributable to AIG of $1.71
and $1.62, respectively, for the first quarter of 2012.

“AIG’s results this quarter reflect the depth of our global operations, the
market’s demand for the products and services we offer, and the strong
performance of our investment portfolio,” said Robert H. Benmosche, AIG
President and Chief Executive Officer. “We are pleased with these results and
look to continue to build on our successes, especially as we continue to make
progress towards achieving our 2015 aspirational goals.

“Our priority this year is to improve operating fundamentals and reduce costs.
Whether this means lowering the cost of capital, re-engineering our systems,
or focusing on business lines and geographical locations that make strategic
sense for our company – reducing expenses and improving operating efficiencies
are leading goals of every AIG employee. We have already narrowed our core
businesses to insurance and retirement services, and see the potential for
further cost savings as we work to transform the corporate structure to
support this leaner business. And, as a global company with half of our people
outside the United States, we are exploring the capabilities, expertise, and
opportunities where we have operations.”

Mr. Benmosche concluded, “Over the course of 2013, we intend to continue to
show how these investments and hard work will come to fruition.”

Liquidity, Capital Management, and Other Significant Developments

  *AIG shareholders’ equity totaled $99.5 billion at March 31, 2013.
  *AIG called $1.1 billion of junior subordinated debentures and purchased,
    for approximately $1.3 billion, approximately $1.0 billion principal
    amount of debt in cash tender offers in the first quarter of 2013, which
    will result in lower annual interest charges of $165 million.
  *Cash dividends and loan repayments to AIG Parent received from AIG Life
    and Retirement subsidiaries totaled $1.3 billion in the first quarter of
    2013.
  *AIG Parent liquidity sources amounted to approximately $15.0 billion at
    March 31, 2013, including $5.5 billion allocated toward future maturities
    of liabilities and contingent liquidity stress needs of the Direct
    Investment book and Global Capital Markets.
  *During the first quarter of 2013, AIG completed the purchase of warrants
    issued to the United States Department of the Treasury (U.S. Treasury) in
    2008 and 2009.

AFTER-TAX OPERATING INCOME (LOSS)
                                                       
                                                        First Quarter
($ in millions)                                        2013       2012
Insurance Operations                                              
AIG Property Casualty                                   $ 1,589     $ 1,043
AIG Life and Retirement                                   1,394       1,311
Mortgage Guaranty (reported in Other operations)        41       8      
Total Insurance Operations                              3,024    2,362  
Direct Investment book                                    329         (156   )
Global Capital Markets                                    227         92
Change in fair value of AIA (including realized           -           1,795
gains)
Change in fair value of ML III                            -           1,252
Interest expense                                          (397  )     (381   )
Corporate expenses and other                            (322  )   (252   )
Pre-tax operating income                                2,861    4,712  
Income tax expense                                        (854  )     (1,425 )
Noncontrolling interest – Treasury                        -           (208   )
Other noncontrolling interest                           (25   )   (33    )
After-tax operating income attributable to AIG         $ 1,982   $ 3,046  


AIG PROPERTY CASUALTY

AIG Property Casualty reported operating income of $1.6 billion in the first
quarter of 2013, compared to operating income of $1.0 billion in the first
quarter of 2012, reflecting increases in both underwriting income and net
investment income. AIG Property Casualty’s improved underwriting margins were
driven by a shift in the portfolio mix, the benefits of underwriting
improvement initiatives, which are enhancing our risk selection, and increases
in pricing.

The first quarter 2013 combined ratio was 97.3, compared to 102.1 in the first
quarter of 2012. First quarter 2013 results included moderate catastrophe
losses of $41 million and favorable net prior year development of $52 million.
The first quarter 2013 accident year loss ratio, as adjusted, improved to 63.2
from 66.3 in the first quarter of 2012 driven by a shift to higher value
business, enhanced risk selection, and price increases. The first quarter 2013
acquisition ratio was 19.7, a 0.5 point decrease compared to the first quarter
of 2012. The general operating expense ratio was 14.3, a 0.4 point increase
compared to the first quarter of 2012. During the first quarter of 2013, AIG
Property Casualty continued to invest in strategic initiatives and incurred
higher severance and other personnel-related costs, partially offset by lower
bad debt expense compared to the first quarter of 2012.

First quarter 2013 net premiums written of $8.4 billion decreased 4.3 percent
compared to the first quarter of 2012, reflecting the effects of recognizing
ceded premiums written for excess of loss reinsurance agreements at contract
inception rather than ratably over the contract period, foreign currency
exchange rates, which were primarily driven by strengthening of the U.S.
dollar against the Japanese yen, and the timing of a catastrophe bond issuance
in the first quarter of 2013. Excluding these items, first quarter 2013 net
premiums written increased 4.0 percent compared to the first quarter of 2012.
Commercial Insurance net premiums written excluding the impact of the items
noted above increased 3.8 percent compared to the first quarter of 2012.
Growth in higher value products and geographies was partially offset by
continuing efforts to improve risk selection, particularly in U.S. casualty.
Consumer Insurance net premiums written excluding the impact of the items
noted above increased 4.2 percent compared to the first quarter of 2012.
Consumer Insurance continued to focus on growing higher value lines of
business, while expanding direct marketing as part of its multi-distribution
channel strategy.

Commercial Insurance reported first quarter 2013 operating income of $1.0
billion and a combined ratio of 92.2, compared to operating income of $645
million and a combined ratio of 101.7 in the first quarter of 2012. The first
quarter 2013 accident year loss ratio, as adjusted, improved to 65.4 from 70.3
in the first quarter of 2012 due primarily to the shift to higher value
business, enhanced risk selection, and price increases. The first quarter 2013
acquisition ratio was 16.3, a 1.7 point decrease compared to the first quarter
of 2012. The first quarter 2013 general operating expense ratio was 11.0, a
0.4 point decrease compared to the first quarter of 2012.

Consumer Insurance reported first quarter 2013 operating income of $153
million and a combined ratio of 98.4, compared to operating income of $234
million and a combined ratio of 96.7 in the first quarter of 2012. The first
quarter 2013 accident year loss ratio, as adjusted, was 58.8 compared to 58.4
in the first quarter of 2012. The first quarter 2013 acquisition ratio was
24.9, a 1.2 point increase over the first quarter of 2012 due to changes in
Consumer Insurance’s business mix and increased investments in direct
marketing. The first quarter 2013 general operating expense ratio was 15.7, a
0.8 point increase over the first quarter of 2012, which was primarily
attributable to personnel-related costs and strategic expansion in growth
economy nations.

AIG LIFE AND RETIREMENT

AIG Life and Retirement reported operating income of $1.4 billion in the first
quarter of 2013, compared to $1.3 billion in the first quarter of 2012. First
quarter 2013 results reflected the impact of robust equity markets, which
drove increased investment returns, strong growth in assets under management,
and increased earnings in fee based businesses. The quarter also benefited
from continued active management of spreads and lower mortality costs. During
the first quarter of 2013, AIG Life and Retirement implemented reporting
changes to reflect its new Retail and Institutional operating segments.

Net investment income in the first quarter of 2013 was $2.9 billion,
essentially unchanged from the first quarter of 2012, which included $246
million of ML II fair value gains. Net investment income in the current
quarter benefited from higher returns on alternative investments and increases
in the fair value of securities, including a $31 million increase in the fair
value of AIG Life and Retirement’s investment in The People’s Insurance
Company (Group) of China Limited. The first quarter 2013 base investment yield
was 5.3 percent, compared to 5.5 percent in the first quarter of 2012 and 5.3
percent in the fourth quarter of 2012, reflecting the low interest rate
environment and continuing opportunistic sales of higher yielding securities
to monetize the value of capital loss carryforwards. Active spread management,
including new business pricing initiatives and the reduction of renewal
crediting rates, served to offset the impact of lower base investment yields.

Assets under management increased 12 percent to $297 billion at the end of the
first quarter of 2013, compared to $265 billion at the end of the first
quarter of 2012. The increase is attributable to positive separate account
performance, driven by higher equity markets as well as $12.4 billion notional
amount of stable value wrap contracts primarily transferred from Global
Capital Markets to AIG Life and Retirement beginning in the fourth quarter of
2012.

Premiums and deposits totaled $5.6 billion in both the first quarters of 2013
and 2012. Variable annuity deposits increased 31 percent to $1.4 billion from
$1.1 billion in the first quarter of 2012, and fixed annuity deposits
decreased to $376 million in the quarter, a 36 percent decrease compared to
the first quarter of 2012, reflecting the disciplined approach to pricing new
business related to interest sensitive products.

The Retail segment reported quarterly operating income of $821 million, an
increase of 8 percent compared to the first quarter of 2012, driven by
improved spreads, higher policy fee income and investment returns and lower
mortality costs.

The Institutional segment reported quarterly operating income of $573 million,
an increase of 4 percent compared to the first quarter of 2012, principally
due to strong investment returns and active spread management.

In the first quarter of 2013, AIG Life and Retirement subsidiaries provided
$1.3 billion in cash dividends and loan repayments to AIG Parent.

MORTGAGE GUARANTY

United Guaranty Corporation (UGC), AIG’s residential mortgage guaranty
operations, reported operating income of $41 million for the first quarter of
2013 compared to operating income of $8 million in the first quarter of 2012.
First quarter 2013 results included an increase in net premiums earned and
benign overall development.

Net premiums written were $246 million for the first quarter of 2013, compared
to $191 million in the first quarter of 2012. Domestic first-lien new
insurance written (measured as the principal amount of loans insured) totaled
$10.6 billion for the quarter compared to $6.5 billion for the same period in
2012, driven primarily by increased mortgage originations as well as new and
expanded distribution channels. Quality remained high, with an average FICO
score of 757 and an average loan-to-value ratio of 90 percent on new business.
The overall delinquency rate on domestic first-lien loans fell to 7.9 percent
in the first quarter of 2013 compared to 11.4 percent in the first quarter of
2012.

OTHER OPERATIONS

AIG’s Other Operations (including Mortgage Guaranty) reported first quarter
2013 operating losses of $152 million, compared to operating income of $2.3
billion in the first quarter of 2012, which included gains of $3.0 billion
from our previously held investments in AIA and ML III.

Conference Call

AIG will host a conference call tomorrow, May 3, 2013, 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 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.

The conference call (including the conference call presentation material), the
earnings release and the financial supplement may include, and officers and
representatives of AIG may from time to time make, 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
monetization of AIG’s interests in International Lease Finance Corporation
(ILFC), including whether AIG’s proposed sale of up to 90 percent of ILFC will
be completed and, if completed, the timing and final terms of such sale; 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 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: changes in
market conditions; the occurrence of catastrophic events, both natural and
man-made; significant legal proceedings; the timing and applicable
requirements of any new regulatory framework to which AIG is subject as a
savings and loan holding company, and if such a determination is made, as a
non-bank systemically important financial institution; concentrations in AIG’s
investment portfolios; actions by credit rating agencies; judgments concerning
casualty insurance underwriting and insurance liabilities; judgments
concerning the recognition of deferred tax assets; and such other factors as
are discussed in Part I, Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations (MD&A) in AIG's Quarterly Report
on Form 10-Q for the quarter ended March 31, 2013, and in Part I, Item 1A.
Risk Factors and in Part II, Item 7. MD&A in AIG’s Annual Report on Form 10-K
for the year ended December 31, 2012. 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.

# # #

Comment on Regulation G

Throughout this press release, including the financial highlights, AIG
presents its financial condition and results of operations in the way it
believes will be most meaningful, representative and most transparent. Some of
the measurements AIG uses are “non-GAAP financial measures” under Securities
and Exchange Commission rules and regulations. GAAP is the acronym for
“accounting principles generally accepted in the United States.” The non-GAAP
financial measures AIG presents may not be comparable to similarly named
measures reported by other companies. 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 2013 Financial Supplement
available in the Investor Information section of AIG’s website, www.aig.com.

Book Value Per Common Share Excluding Accumulated Other Comprehensive Income
(Loss) (AOCI) is used to show the amount of AIG’s net worth on a per-share
basis. AIG believes Book Value Per Common Share Excluding AOCI is useful to
investors because it eliminates the effect of non-cash items that can
fluctuate significantly from period to period, including changes in fair value
of AIG’s available for sale portfolio and foreign currency translation
adjustments. Book Value Per Common Share Excluding AOCI is derived by dividing
Total AIG shareholders’ equity, excluding AOCI, by Total common shares
outstanding.

AIG uses the following operating performance measures because it believes they
enhance understanding of the underlying profitability of continuing operations
and trends of AIG and its business segments. AIG believes they also allow for
more meaningful comparisons with AIG’s insurance competitors.

After-tax operating income (loss) attributable to AIG is derived by excluding
the following items from net income (loss) attributable to AIG: income (loss)
from discontinued operations, net loss (gain) on sale of divested businesses,
income from divested businesses, legacy tax adjustments primarily related to
certain changes in uncertain tax positions (FIN 48) and other tax adjustments,
legal reserves (settlements) related to “legacy crisis matters,” deferred
income tax valuation allowance (releases) charges, changes in fair value of
AIG Life and Retirement securities designated to hedge living benefit
liabilities, change in benefit reserves and deferred policy acquisition costs
(DAC), value of business acquired (VOBA), and sales inducement assets (SIA)
related to net realized capital (gains) losses, (gain) loss on extinguishment
of debt, net realized capital (gains) losses, non-qualifying derivative
hedging activities, excluding net realized capital (gains) losses, and bargain
purchase gain. “Legacy crisis matters” include favorable and unfavorable
settlements related to events leading up to and resulting from AIG’s September
2008 liquidity crisis and legal fees incurred by AIG as the plaintiff in
connection with such legal matters. See page 11 for the reconciliation of Net
income attributable to AIG to After-tax operating income attributable to AIG.

AIG Property Casualty Operating income (loss) includes both underwriting
income (loss) and net investment income, but excludes net realized capital
(gains) losses, other (income) expense, legal settlements related to legacy
crisis matters described above and bargain purchase gain. Underwriting income
(loss) is derived by reducing net premiums earned by claims and claims
adjustment expense, acquisition expense and general operating expense.

AIG Property Casualty, along with most property and casualty insurance
companies, uses the loss ratio, the expense ratio and the combined ratio as
measures of underwriting performance. These ratios are relative measurements
that describe, for every $100 of net premiums earned, the amount of claims and
claims adjustment expense, and the amount of other underwriting expenses that
would be incurred. A combined ratio of less than 100 indicates underwriting
income and a combined ratio of over 100 indicates an underwriting loss. The
underwriting environment varies across countries and products, as does the
degree of litigation activity, all of which affect such ratios. In addition,
investment returns, local taxes, cost of capital, regulation, product type and
competition can have an effect on pricing and consequently on profitability as
reflected in underwriting income and associated ratios.

AIG Property Casualty Accident year loss ratio, as adjusted is the loss ratio
excluding catastrophe losses and related reinstatement premiums, prior year
development, net of premium adjustments, and the impact of reserve
discounting. Catastrophe losses are generally weather or seismic events having
a net impact on AIG Property Casualty in excess of $10 million each.

AIG Property Casualty Accident year combined ratio, as adjusted is the
combined ratio excluding catastrophe losses and related reinstatement
premiums, prior year development, net of premium adjustments, and the impact
of reserve discounting.

AIG Life and Retirement Operating income (loss) is derived by excluding the
following items from net income (loss): legal settlements related to legacy
crisis matters described above, changes in fair values of fixed maturity
securities designated to hedge living benefit liabilities, net realized
capital (gains) losses, and changes in benefit reserves and DAC, VOBA, and SIA
related to net realized capital (gains) losses. AIG believes that Operating
income (loss) is useful because excluding these volatile items permits
investors to better assess the operating performance of the underlying
business by highlighting the results from ongoing operations.

AIG Life and Retirement Premiums and deposits includes life insurance premiums
and deposits on annuity contracts, guaranteed investment contracts (GICs) and
mutual funds.

Other Operations Operating income (loss) is income (loss) excluding certain
legal reserves (settlements) related to legacy crisis matters described above,
(gain) loss on extinguishment of debt, Net realized capital (gains) losses,
net (gains) losses on sale of divested businesses and properties, and income
from divested businesses.

Results from discontinued operations are excluded from all of these measures.

# # #

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.

Additional information about AIG can be found at www.aig.com | YouTube:
www.youtube.com/aig |Twitter: @AIG_LatestNews | LinkedIn:
http://www.linkedin.com/company/aig |

AIG is the marketing name for the worldwide property-casualty, life and
retirement, and general insurance operations of American International Group,
Inc. For additional information, please visit our website at www.aig.com. All
products and services are written or provided by subsidiaries or affiliates of
American International Group, Inc. Products or services may not be available
in all jurisdictions, and coverage is subject to actual policy language.
Non-insurance products and services may be provided by independent third
parties. Certain property-casualty coverages may be provided by a surplus
lines insurer. Surplus lines insurers do not generally participate in state
guaranty funds, and insureds are therefore not protected by such funds.

American International Group, Inc.
Financial Highlights*
(in millions, except share data)
                                      Three Months Ended March 31,
                                                                   % Inc.
                                       2013          2012         (Dec.)
AIG Property Casualty Operations:                     
Net premiums written                 $   8,437    $   8,820    (4.3  ) %
Net premiums earned                        8,558           8,688     (1.5  )
Claims and claims adjustment               5,413           5,909     (8.4  )
expenses incurred
Acquisition expense                        1,688           1,757     (3.9  )
General operating expense                1,226        1,202    2.0
Underwriting income (loss)                 231             (180  )   -
Net investment income                  1,358      1,223   11.0   
Operating income                       1,589      1,043   52.3   
Net realized capital gains                 12              (135  )   -
(losses) (a)
Other income                             3            2        50.0
Pre-tax Income                       $   1,604    $   910      76.3
                                                                
Loss ratio                                 63.3            68.0
Acquisition ratio                          19.7            20.2
General operating expense ratio          14.3         13.9  
Combined ratio                         97.3       102.1          
                                                                             
AIG Life and Retirement
Operations:
Premiums                             $     620       $     614       0.9
Policy fees                                615             584       5.3
Net investment income                      2,877           2,885     (0.3  )
Other income                             393          304      29.3
Total revenues                             4,505           4,387     2.7
Benefits and expenses                  3,111      3,076   1.1    
Operating income                       1,394      1,311   6.4    
Legal settlements                          108             -         -
Changes in fair value of fixed
income securities designated to            (29   )         (19   )   (54.7 )
hedge living benefit liabilities,
net of interest expense
Change in benefit reserves and
DAC, VOBA and SIA related to net           (59   )         36        -
realized capital gains (losses)
Net realized capital gains               156          (466  )   -
(losses)
Pre-tax income                      $   1,570   $   862     82.1   
Other operations, operating income     (152  )     2,328   -      
(loss)
Other operations, pre-tax income
(loss) before net realized capital         (501  )         2,319     -
gains (losses)
Other operations, net realized             87              417       (79.1 )
capital gains (a)
Consolidation and elimination            72           (42   )   -
adjustments (a)
Income from continuing operations          2,832           4,466     (36.6 )
before income taxes
Income tax expense                       694          1,081    (35.8 )
Income from continuing operations          2,138           3,385     (36.8 )
Income from discontinued                 93           64       45.3
operations, net of tax
Net income                               2,231        3,449    (35.3 )
Less: Net income from continuing
operations attributable to
noncontrolling interests:
Noncontrolling nonvoting,
callable, junior and senior                -               208       -
preferred interests
Other                                    25           33       (24.2 )
Total net income from continuing
operations attributable to               25           241      (89.6 )
noncontrolling interests
Net income attributable to AIG           2,206        3,208    (31.2 )


Financial Highlights -continued

                                   Three Months Ended March 31,
                                                                   % Inc.
                                    2013              2012     (Dec.)   
                                                    
Net income attributable to AIG      $     2,206     $     3,208     (31.2  ) %
Adjustments to arrive at
after-tax operating income
attributable to AIG (amounts net
of tax):
Income from discontinued                  (93   )         (64   )   (45.3  )
operations
Net loss on sale of divested              -               2         -
businesses
Legacy FIN 48 and other tax               626             -         -
adjustments
Legal reserves (settlement)               (64   )         4         -
related to legacy crisis matters
Deferred income tax valuation             (786  )         (293  )   (168.3 )
allowance release
Changes in fair value of AIG Life
and Retirement securities                 19              12        58.3
designated to hedge living
benefit liabilities
Change in benefit reserves and
DAC, VOBA and SIA related to net          54              (23   )   -
realized capital (gains) losses
Loss on extinguishment of debt            221             -         -
Net realized capital (gains)              (201  )         199       -
losses
Non-qualifying derivative hedging
activities, excluding net               -            1        -
realized capital losses
After-tax operating income          $   1,982    $   3,046    (34.9  )
attributable to AIG
                                                                             
Income per common share -
diluted:
Net income attributable to AIG      $   1.49     $   1.71     (12.87 )
After - tax operating income        $   1.34     $   1.62     (17.14 )
attributable to AIG
                                                                             
Book value per share (b)            $     67.41     $     57.68     16.87
Book value per share, excluding
accumulated other comprehensive     $     59.39     $     53.11     11.83    %
income (c)
                                                                             
Return on equity (d)                      8.9   %         12.5  %
Return on equity, excluding
accumulated other comprehensive           10.2  %         13.5  %
income (e)
Return on equity - after-tax              9.2   %         12.8  %
operating income (f)

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 shares outstanding.
      
(c)   Represents total AIG shareholder’s equity, excluding accumulated other
      comprehensive income (AOCI) divided by shares outstanding.
      
      Computed as Actual or Annualized net income (loss) attributable to AIG
(d)   divided by average AIG shareholders’ equity. Equity includes deferred
      tax assets.
      
      Computed as Actual or Annualized net income (loss) attributable to AIG
(e)   divided by average AIG shareholders’ equity, excluding AOCI. Equity
      includes deferred tax assets.

      Computed as Actual or Annualized after-tax operating income divided by
(f)   average AIG shareholders' equity, excluding AOCI. Equity includes
      deferred tax assets.

Contact:

American International Group, Inc. (AIG)
Investors
Liz Werner, 212-770-7074
elizabeth.werner@aig.com
or
Media
Jon Diat, 917-239-9241
jon.diat@aig.com
or
Jim Ankner, 917-882-7677
james.ankner@aig.com
 
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