AIG Reports Third Quarter 2013 Net Income Attributable to AIG of $2.2 Billion and Diluted Earnings Per Share of $1.46

  AIG Reports Third Quarter 2013 Net Income Attributable to AIG of $2.2
  Billion and Diluted Earnings Per Share of $1.46

  *Third quarter 2013 after-tax operating income attributable to AIG of $1.4
    billion; after-tax operating income per share attributable to AIG of $0.96
  *Growth in Insurance operating income of 38 percent to $2.2 billion from
    the prior-year third quarter

       *AIG Property Casualty accident year underwriting results improved
         from the prior-year quarter
       *AIG Life and Retirement benefitted from strong sales and overall
         positive net flows
       *Mortgage Guaranty continued to benefit from United Guaranty
         Corporation’s proprietary risk selection model and an improving
         housing market

  *Increase in book value per share, excluding accumulated other
    comprehensive income (AOCI), of 8 percent from year end 2012 to $62.68,
    and $67.10 on a reported basis for a one percent increase

Business Wire

NEW YORK -- October 31, 2013

American International Group, Inc. (NYSE:AIG) today reported net income
attributable to AIG of $2.2 billion for the quarter ended September 30, 2013,
compared to $1.9 billion for the third quarter of 2012. After-tax operating
income attributable to AIG was $1.4 billion for the third quarter of 2013,
compared to $1.6 billion for the prior-year third quarter. Net income
attributable to AIG for the quarter exceeded after-tax operating income
attributable to AIG largely due to valuation allowance releases associated
with deferred tax assets from capital loss carryforwards, partially offset by
a $260 million after-tax increase to litigation reserves related to legacy
crisis matters.

Diluted earnings per share attributable to AIG were $1.46 for the third
quarter of 2013, compared to $1.13 for the third quarter of 2012. After-tax
operating income per share attributable to AIG was $0.96 for the third quarter
of 2013, compared to $0.99 in the third quarter of 2012.

“AIG’s solid performance this quarter underscores the strong fundamentals of
our businesses, and builds upon the momentum that we generated in the first
half of this year,” said Robert H. Benmosche, President and Chief Executive
Officer. “Our insurance operations reported improved pre-tax operating profits
this quarter from the third quarter of 2012, and we continue to remain
optimistic about the future.

“Every day, we reaffirm our commitment to our customers around the world by
creating and offering innovative insurance protection and retirement products
that meet their needs. As we work together and capitalize upon the diverse
areas of expertise within AIG, we’re seeing the results of our continued
investments in our business, our infrastructure, and our people.”

Mr. Benmosche concluded, “We remain committed to product innovation, strong
partnerships with sales and distribution, vigilance on our expenses, and the
ongoing diversification of risk.At the same time, we will continue to improve
our technology, systems, and processes. I am pleased with the progress we have
made as we continue to execute the vision we have iterated from the start –
creating a company and workforce that are streamlined, nimble, and
transparent.”

Capital and Liquidity

  *Shareholders’ equity totaled $98.8 billion at September 30, 2013
  *Issued $1 billion of senior debt in each of August 2013 and October 2013;
    redeemed $500 million of debt and repurchased approximately 4 million
    common shares for an aggregate purchase price of approximately $192
    million in the third quarter of 2013
  *Cash dividends to AIG Parent from AIG Property Casualty and AIG Life and
    Retirement subsidiaries totaled $1.9 billion in the third quarter of 2013
  *AIG Parent liquidity sources amounted to approximately $16.9 billion at
    September 30, 2013, including $12.7 billion of cash, short-term
    investments, and unencumbered fixed maturity securities

                                      
AFTER-TAX OPERATING INCOME               
                                         Three Months Ended
                                         September 30,
(in millions)                          2013        2012        Change
Pre-tax operating income                                      
Insurance Operations:
AIG Property Casualty                    $   1,044     $   786       33     %
AIG Life and Retirement                      1,144         826       38
Mortgage Guaranty (reported in Other     43        3       NM
Operations)
Total Insurance Operations               2,231     1,615   38
Direct Investment book                       110           428       (74)
Global Capital Markets                       29            190       (85)
Change in fair value of AIA                  -             527       (100)
(including realized gains in 2012)
Change in fair value of ML III               -             330       (100)
Interest expense                             (334)         (416)     (20)
Corporate expenses                           (282)         (166)     70
Other                                    (45)      14      NM
Pre-tax operating income                 1,709     2,522   (32)
Income tax expense                       (307)     (896)   (66)
Other noncontrolling interest            19        (5)     NM
After-tax operating income             $  1,421   $  1,621   (12)   %
attributable to AIG
                                                                            

All operating segment comparisons that follow are to the third quarter of 2012
unless otherwise noted.

                                   
AIG PROPERTY CASUALTY                  
                                       Three Months Ended
                                       September 30,
($ in millions)                      2013        2012        Change
Net premiums written                   $  8,660   $  8,712   (1)    %
Net premiums earned                        8,427         8,752     (4)
Underwriting loss                          (135)         (441)     69
Net investment income                  1,179     1,227   (4)
Pre-tax operating income             $  1,044   $  786     33     %
Underwriting ratios:
Loss ratio                                 67.3          71.4      (4.1)  pts
Acquisition ratio                          19.7          19.5      0.2
General operating expense ratio        14.6      14.1    0.5
Combined ratio                         101.6     105.0   (3.4)
Accident year loss ratio, as           63.7      66.5    (2.8)
adjusted
Accident year combined ratio, as       98.0      100.1   (2.1)  pts
adjusted
                                                                          

AIG Property Casualty’s pre-tax operating income grew 33 percent to $1.0
billion due to improved underwriting results that were partially offset by a
decline in net investment income from lower returns on alternative investments
and mutual funds. The third quarter 2013 accident year combined ratio, as
adjusted, which excludes catastrophe losses and prior-year development,
improved 2.1 points to 98.0, reflecting a continued shift to higher value
business, enhanced risk selection, and improved pricing. As part of AIG’s
continued focus on capital management, AIG Property Casualty distributed $716
million in cash dividends to AIG Parent during the third quarter of 2013.

The third quarter 2013 combined ratio was 101.6, reflecting a 3.4 point
improvement. Catastrophe losses were $222 million compared to $261 million.
Net adverse development was $72 million (net of premium adjustments),
primarily in the U.S. Commercial Insurance business, compared to $145 million
(net of premium adjustments) for the third quarter of 2012. The third quarter
2013 accident year loss ratio, as adjusted, improved to 63.7, compared to
66.5, reflecting the continued effect of the execution of AIG’s strategic
initiatives and positive pricing trends, partially offset by an increase of
$71 million in severe losses. The third quarter 2013 acquisition ratio
increased 0.2 points to 19.7, reflecting a change in business mix and higher
costs in growth-targeted lines of business. The general operating expense
ratio was 14.6, a 0.5 point increase, as a result of increased
personnel-related costs and a lower net premiums earned base, partially offset
by lower bad debt expenses and reduced costs for infrastructure projects.

Third quarter 2013 net premiums written, excluding the effects of foreign
exchange, a change in the timing of recognizing excess of loss ceded premiums
and loss sensitive premium adjustments, increased 3 percent, reflecting growth
of new business and rate increases. Net premiums written decreased 1 percent
to $8.7 billion on a reported basis. Excluding the effects of foreign
exchange, a change in the timing of recognizing excess of loss ceded premiums
and loss sensitive premium adjustments, Commercial Insurance and Consumer
Insurance third quarter 2013 net premiums written grew 2 and 4 percent,
respectively. Commercial Insurance continues to focus on growing higher value
lines of business and rate strengthening while Consumer Insurance continues to
grow across product lines, expanding direct marketing as part of its
multi-channel distribution strategy.

                                    
COMMERCIAL INSURANCE UNDERWRITING      
                                       Three Months Ended

                                       September 30,
($ in millions)                      2013        2012        Change
Net premiums written                   $  5,222   $  5,099   2      %
Net premiums earned                        5,142         5,239     (2)
Underwriting loss                    $  (8)     $  (317)   97     %
Underwriting ratios:
Loss ratio                                 71.8          78.0      (6.2)  pts
Acquisition ratio                          15.8          15.6      0.2
General operating expense ratio        12.6      12.4    0.2
Combined ratio                         100.2     106.0   (5.8)
Accident year loss ratio, as           66.2      70.8    (4.6)
adjusted
Accident year combined ratio, as       94.6      98.8    (4.2)  pts
adjusted
                                                                          

The Commercial Insurance combined ratio improved 5.8 points to 100.2. The
third quarter 2013 accident year loss ratio, as adjusted, improved 4.6 points
to 66.2, reflecting the continued execution of AIG’s multi-faceted strategy to
enhance risk selection, pricing discipline, exposure management, and claims
processing, partially offset by higher severe losses in Property and Specialty
totaling $211 million, compared to $120 million in the third quarter of 2012.
The third quarter 2013 acquisition ratio increased 0.2 points to 15.8,
primarily as a result of a change in the business mix. The general operating
expense ratio increased 0.2 points to 12.6 primarily due to increased
personnel-related costs and a lower net premiums earned base, partially offset
by decreases in bad debt expenses.

                                    
CONSUMER INSURANCE UNDERWRITING        
                                       Three Months Ended

                                       September 30,
($ in millions)                      2013        2012        Change
Net premiums written                   $  3,441   $  3,630   (5)    %
Net premiums earned                        3,270         3,473     (6)
Underwriting income                  $  4       $  43      (91)   %
Underwriting ratios:
Loss ratio                                 58.8          58.3      0.5    pts
Acquisition ratio                          26.1          25.7      0.4
General operating expense ratio        15.0      14.8    0.2
Combined ratio                         99.9      98.8    1.1
Accident year loss ratio, as           58.5      57.7    0.8
adjusted
Accident year combined ratio, as       99.6      98.2    1.4    pts
adjusted
                                                                          

The Consumer Insurance combined ratio increased 1.1 points to 99.9, and the
accident year loss ratio, as adjusted, increased 0.8 points to 58.5, primarily
due to higher retail warranty losses, partially offset by improvements in
automobile and personal property as a result of rate and underwriting actions.
The third quarter 2013 acquisition ratio increased 0.4 points to 26.1 due to a
change in business mix and higher costs in growth-targeted lines of business.
The general operating expense ratio increased 0.2 points primarily due to
increased personnel-related costs.

                                
AIG LIFE AND RETIREMENT            
                                   Three Months Ended

                                   September 30,
($ in millions)                  2013          2012          Change
Premiums and deposits            $  8,422     $  4,785     76     %
Net investment income              2,467       2,597     (5)
Pre-tax operating income:                                   
Retail                                 846             548         54
Institutional                      298         278       7
Total pre-tax operating income     1,144       826       38
Assets Under Management          $  304,399   $  275,479   10     %
                                                                          

AIG Life and Retirement pre-tax operating income increased 38 percent to $1.1
billion. The business generated strong sales of variable annuities and retail
mutual funds, and also experienced a significant increase in fixed annuity
deposits in the quarter. Net flows showed continued positive momentum,
increasing nearly $3.0 billion from the prior-year period. Increased flows and
higher account balances resulted in higher fee income in the quarter. Results
also benefitted from AIG Life and Retirement’s ongoing strategy of active
spread management. Offsetting these improvements, net investment income
declined modestly, principally due to lower returns on alternative investments
and the impact of historically low market interest rates. Pre-tax operating
income also reflected positive adjustments netting to $118 million related to
a review of estimated gross profit assumptions, while the prior-year period
reflected $196 million in charges for reserve-related and other items.

Net investment income declined 5 percent to $2.5 billion, primarily due to
lower returns on alternative investments and declines in base yields and yield
enhancements, including call and tender income. The base investment yield was
5.26 percent compared to 5.38 percent in the third quarter of 2012. This
decline reflected the current interest rate environment and reinvestment of
assets over the last 12 months at rates that were lower than the weighted
average yield of the overall portfolio. AIG Life and Retirement continued to
manage profitability actively through crediting rate actions on existing
spread business and disciplined pricing on new business. Consistent with prior
quarters, AIG Life and Retirement realized significant capital gains in its
fixed maturity investment portfolio in connection with utilizing capital loss
carryforwards. Reinvestment of proceeds from such sales has also reduced the
base investment yield.

Assets under management rose 10 percent to $304 billion. Net flows and account
values increased substantially compared to the prior-year period. These
increases were driven by strong demand for Retail products due to innovative
and competitive product design, favorable market conditions, and increased
penetration within several of AIG Life and Retirement’s strategic distribution
firms. Strong equity market performance further drove the increase in account
values. The development of the stable value wrap business also accounted for a
substantial amount of the growth in assets under management. The decline in
AIG Life and Retirement’s unrealized gain position on available for sale
securities due to rising interest rates partially offset the increase in
assets under management.

Premiums and deposits totaled $8.4 billion, up 76 percent, driven by growth in
sales of investment-oriented products, including individual variable
annuities, retail mutual funds and fixed annuities. Premiums and deposits for
Retirement Income Solutions and Retail Mutual Fund product lines increased 133
percent and 121 percent, respectively. Fixed Annuities product line sales
totaled nearly $1.2 billion for the quarter, up from $173 million.

The Retail operating segment reported quarterly pre-tax operating income of
$846 million, an increase of 54 percent, driven by higher fee income on
variable annuity separate account assets, active spread management on interest
rate sensitive products and the net positive impact of adjustments to reflect
updated estimated gross profit assumptions.

The Institutional operating segment reported quarterly pre-tax operating
income of $298 million, an increase of 7 percent. Results were driven by
higher fee income and lower interest crediting rates due to active spread
management, which were offset by lower net investment income and the negative
impact of adjustments to reflect updated estimated gross profit assumptions.
The favorable comparison to the prior-year quarter is partially attributable
to a charge related to guaranteed investment contracts.

In the third quarter of 2013, AIG Life and Retirement distributed $1.2 billion
in cash dividends to AIG Parent.

                            
MORTGAGE GUARANTY              
                               Three Months Ended

                               September 30,
(in millions)                  2013       2012     Change
New insurance written          $  14,437   $  10,741   34     %
Net premiums written               272            219        24
Net premiums earned                204            177        15
Underwriting income (loss)         11             (35)       NM
Net investment income          32         38       (16)
Pre-tax operating income     $  43       $  3        NM     %
                                                                    

United Guaranty Corporation (UGC) reported pre-tax operating income of $43
million for the third quarter of 2013, compared to pre-tax operating income of
$3 million in the third quarter of 2012. Current quarter results reflected
increased net premiums earned from business written after 2008 using UGC’s
risk-based pricing underwriting approach along with minimal reserve
development in its first-lien book of business.

Net premiums written increased 24 percent to $272 million. First-lien new
insurance written increased 34 percent to $14.4 billion in principal of loans
insured, driven by market acceptance of UGC’s risk-based pricing model by an
increasing number of lenders, as well as the addition and expansion of
distribution channels. Quality remained high, with an average FICO score of
752, and an average loan-to-value of 92 percent on new business.

OTHER OPERATIONS

AIG’s Other Operations (excluding Mortgage Guaranty) reported a third quarter
2013 pre-tax operating loss of $583 million, compared to pre-tax operating
income of $851 million for the third quarter of 2012. The pre-tax operating
loss for the third quarter of 2013 included a decline in Global Capital
Markets earnings resulting primarily from a decline in unrealized market
valuation gains related to the super senior credit default swap portfolio.
Direct Investment book also contributed to the decline in pre-tax operating
income primarily because of a decline in net credit valuation adjustments on
assets and liabilities for which the fair value option was elected.

Third quarter 2012 results included $857 million of pre-tax net fair value
gains related to AIG’s interest in Maiden Lane III LLC and AIA Group Limited.

Conference Call

AIG will host a conference call tomorrow, Friday, November 1, 2013, at 8:00
a.m. EDT 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 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, as a systemically important financial
institution and as a global systemically important insurer; 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 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 quarterly period ended September 30, 2013, Part II, Item
1A. Risk Factors in AIG's Quarterly Report on Form 10-Q for the quarterly
period ended June 30, 2013, and Part I, Item 1A. Risk Factors and 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 Third 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 securities 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
and properties, income from divested businesses, legacy tax adjustments
primarily related to certain changes in uncertain tax positions and other tax
adjustments, legal reserves (settlements) related to “legacy crisis matters,”
deferred income tax valuation allowance (releases) charges, changes in fair
values of AIG Life and Retirement fixed maturity securities designated to
hedge living benefit liabilities (net of interest expense), changes 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 12 for the reconciliation of Net income attributable
to AIG to After-tax operating income attributable to AIG.

AIG Property Casualty pre-tax 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 expenses incurred, acquisition expenses and
general operating expenses.

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.

Both the AIG Property Casualty Accident year loss ratio, as adjusted, and AIG
Property Casualty Accident year combined ratio, as adjusted, exclude
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 Life and Retirement pre-tax operating income (loss) is derived by
excluding the following items from pre-tax 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
of interest expense), net realized capital (gains) losses, and changes in
benefit reserves and DAC, VOBA, and SIA related to net realized capital
(gains) losses.

AIG Life and Retirement premiums and deposits include amounts received on
traditional life insurance policies, group benefit policies and deposits on
life-contingent payout annuities, as well as deposits received on universal
life, investment-type annuity contracts, guaranteed investment contracts and
mutual funds.

Other Operations pre-tax operating income (loss) is pre-tax 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 loss (gain) 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 countries, 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                     Nine Months Ended
                                                    
                 September 30,                          September 30,
                                        % Inc.                                % Inc.
                  2013      2012    (Dec.)       2013      2012     (Dec.)
AIG Property
Casualty
Operations:
Net premiums     $ 8,660     $ 8,712    (0.6  ) %     $ 26,360    $ 26,627    (1.0  ) %
written
Net premiums       8,427        8,752     (3.7  )         25,332       26,260     (3.5  )
earned
Claims and
claims
adjustment         5,669        6,252     (9.3  )         16,761       18,240     (8.1  )
expenses
incurred
Acquisition        1,664        1,709     (2.6  )         5,023        5,199      (3.4  )
expenses
General
operating          1,229       1,232    (0.2  )         3,677       3,659     0.5
expenses
Underwriting       (135   )     (441  )   69.4            (129   )     (838   )   84.6
loss
Net investment   1,179     1,227   (3.9  )     3,847     3,603    6.8    
income
Pre-tax
operating        1,044     786     32.8       3,718     2,765    34.5   
income
Net realized
capital gains      (12    )     161       NM              73           49         49.0
(losses) (a)
Other income
(expense) -        (3     )     2        NM              10          6         66.7
net
Pre-tax Income   $ 1,029     $ 949      8.4           $ 3,801     $ 2,820     34.8
                                                                       
Loss ratio         67.3         71.4                      66.2         69.5
Acquisition        19.7         19.5                      19.8         19.8
ratio
General
operating          14.6        14.1                     14.5        13.9   
expense ratio
Combined ratio   101.6     105.0              100.5     103.2           
                                                                                          
AIG Life and
Retirement
Operations:
Premiums         $ 721        $ 584       23.5          $ 1,990      $ 1,830      8.7
Policy fees        645          580       11.2            1,883        1,731      8.8
Net investment     2,467        2,597     (5.0  )         7,981        8,003      (0.3  )
income
Other income       443         319      38.9            1,255       935       34.2
Total revenues     4,276        4,080     4.8             13,109       12,499     4.9
Benefits and     3,132     3,254   (3.7  )     9,420     9,429    (0.1  ) 
expenses
Pre-tax
operating        1,144     826     38.5       3,689     3,070    20.2   
income
Legal              -            -         NM              467          -          NM
settlements
Changes in
fair value of
fixed maturity
securities
designated to
hedge living       (30    )     (3    )   NM              (128   )     48         NM
benefit
liabilities,
net of
interest
expense
Change in
benefit
reserves and
DAC, VOBA and      (271   )     (604  )   55.1            (1,482 )     (1,120 )   (32.3 )
SIA related to
net realized
capital gains
(losses)
Net realized
capital gains      398         670      (40.6 )         1,984       530       274.3
(a)
Pre-tax Income   $ 1,241     $ 889      39.6          $ 4,530     $ 2,528     79.2
                                                                       
Other
operations,
pre-tax          (540   )   854     NM         (493   )   3,864    NM     
operating
income (loss)
Other
operations,
pre-tax income
(loss) before      (1,021 )     844       NM              (1,376 )     3,108      NM
net realized
capital gains
(losses)
Other
operations,
net realized       (104   )     47        NM              107          403        (73.4 )
capital gains
(losses) (a)
Consolidation
and
elimination
adjustments        62           52        19.2            115          (9     )   NM
related to
pre-tax
operating
income (loss)
Consolidation
and
elimination
adjustments
related to
non-operating      (28    )     (223  )   87.4            (19    )     (157   )   87.9
income (loss),
including net
realized
capital gains
(losses) (a)
Income from
continuing
operations         1,179        2,558     (53.9 )         7,158        8,693      (17.7 )
before income
tax expense
Income tax
expense            (993   )     734      NM              123         1,324     (90.7 )
(benefit)
Income from
continuing         2,172        1,824     19.1            7,035        7,369      (4.5  )
operations
Income (loss)
from
discontinued       (42    )     37       NM              84          280       (70.0 )
operations,
net of income
tax expense
Net income         2,130       1,861    14.5            7,119       7,649     (6.9  )
Less: Net
income from
continuing
operations
attributable
to
noncontrolling
interests:
Nonvoting,
callable,
junior and         -            -         NM              -            208        NM
senior
preferred
interests
Other              (40    )     5        NM              12          45        (73.3 )
Total net
income (loss)
from
continuing
operations         (40    )     5        NM              12          253       (95.3 )
attributable
to
noncontrolling
interests
Net income
attributable     $ 2,170     $ 1,856    16.9    %     $ 7,107     $ 7,396     (3.9  ) %
to AIG
                                                                                          

Financial
Highlights                                                                      
-continued
                                                                                                 
                 Three Months Ended September 30,           Nine Months Ended September 30,
                                             % Inc.                                     % Inc.
                  2013       2012      (Dec.)        2013       2012      (Dec.)
                                                                                                 
Net income
attributable     $ 2,170       $ 1,856       16.9     %     $ 7,107       $ 7,396       (3.9   ) %
to AIG
Adjustments to
arrive at
after-tax
operating
income
attributable
to AIG
(amounts are
net of tax):
Income (loss)
from
discontinued       42            (37     )   NM               (84     )     (280    )   70.0
operations,
net of income
tax expense
Net loss on
sale of            -             -           NM               31            2           NM
divested
businesses
Uncertain tax
positions and      36            12          200.0            726           343         111.7
other tax
adjustments
Legal reserves
(settlements)
related to         260           5           NM               (61     )     482         NM
legacy crisis
matters
Deferred
income tax
valuation          (1,159  )     (219    )   (429.2 )         (2,697  )     (1,795  )   (50.3  )
allowance
releases
Changes in
fair value of
AIG Life and
Retirement
fixed maturity
securities
designated to      19            2           NM               83            (31     )   NM
hedge living
benefit
liabilities,
net of
interest
expense
Changes in
benefit
reserves and
DAC, VOBA and      176           393         (55.2  )         1,065         729         46.1
SIA related to
net realized
capital gains
Loss on
extinguishment     52            -           NM               298           6           NM
of debt
Net realized       (175    )     (386    )   54.7             (1,410  )     (489    )   (188.3 )
capital gains
Non-qualifying
derivative
hedging gains,     -            (5      )   NM               -            (18     )   NM
excluding net
realized
capital gains
After-tax
operating
income           $ 1,421      $ 1,621      (12.3  )       $ 5,058      $ 6,345      (20.3  )
attributable
to AIG
                                                                                                 
Income (loss)
per common
share:
                                                                                                 
Basic
Income from
continuing       $ 1.50        $ 1.11        35.1           $ 4.76        $ 4.05        17.5
operations
Income (loss)
from               (0.03   )     0.02       NM               0.06         0.16       (62.5  )
discontinued
operations
Net income
attributable     $ 1.47       $ 1.13       30.1           $ 4.82       $ 4.21       14.5
to AIG
                                                                                                 
Diluted
Income from
continuing       $ 1.49        $ 1.11        34.2           $ 4.74        $ 4.05        17.0
operations
Income (loss)
from               (0.03   )     0.02       NM               0.06         0.16       (62.5  )
discontinued
operations
Net income
attributable     $ 1.46       $ 1.13       29.2           $ 4.80       $ 4.21       14.0
to AIG
After-tax
operating
income           $ 0.96        $ 0.99        (3.0   ) %     $ 3.41        $ 3.61        (5.5   )
attributable
to AIG per
diluted share
                                                                                                 
                                                                                                 
Weighted
average shares
outstanding:
Basic              1,475.1       1,642.5                      1,476.0       1,758.0
Diluted            1,485.3       1,642.5                      1,481.4       1,758.0
                                                                                                 
Book value per
common share                                                $ 67.10       $ 68.87       (2.6   )
(b)
Book value per
common share
excluding
accumulated                                                 $ 62.68       $ 60.59       3.4      %
other
comprehensive
income (c)
                                                                                                 
                                                                                                 
Return on          8.8         % 7.2         %                9.6         % 9.6         %
equity (d)
Return on
equity,            9.5         % 8.0         %                10.7        % 10.5        %
excluding AOCI
(e)
Return on
equity -
after-tax          6.2         % 7.0         %                7.6         % 9.0         %
operating
income (f)


Financial highlights - notes
*     Including reconciliation in accordance with Regulation G.
        Includes gains (losses) from hedging activities that did not qualify
(a)     for hedge accounting treatment, including the related foreign exchange
        gains and losses.
(b)     Represents total AIG shareholders' equity divided by common shares
        outstanding.
(c)     Represents total AIG shareholders' equity, excluding 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:

AIG
Investors:
Liz Werner, 212-770-7074
elizabeth.werner@aig.com
or
Media:
Jon Diat, 212-770-3505
jon.diat@aig.com
 
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