AIG Reports Fourth Quarter 2013 Net Income Attributable to AIG of $2.0 Billion and Diluted Earnings Per Share of $1.34

  AIG Reports Fourth Quarter 2013 Net Income Attributable to AIG of $2.0
  Billion and Diluted Earnings Per Share of $1.34

  *Fourth quarter 2013 after-tax operating income attributable to AIG of $1.7
    billion; after-tax operating income per diluted share attributable to AIG
    of $1.15
  *Full year 2013 pre-tax insurance operating earnings exceed $10 billion;
    growth in all core insurance operations
  *On February 13, 2014, AIG’s Board of Directors announced a 25 percent
    increase in AIG’s quarterly dividend to $0.125 per share; and authorized
    the repurchase of additional shares of AIG Common Stock, with an aggregate
    purchase price of up to $1.0 billion, resulting in an aggregate remaining
    repurchase authorization of approximately $1.4 billion
  *Announced an agreement to sell International Lease Finance Corporation
    (ILFC) to AerCap Holdings N.V. in the fourth quarter of 2013 for total
    consideration of approximately $5.4 billion
  *Book value per share grew 3 percent from year end 2012 to $68.62; book
    value per share excluding accumulated other comprehensive income (AOCI)
    grew 11 percent from year end 2012 to $64.28
  *Cash dividends and loan repayments to AIG Parent from insurance
    subsidiaries totaled $4.1 billion in the fourth quarter of 2013; $8.7
    billion for the full year of 2013

Business Wire

NEW YORK -- February 13, 2014

American International Group, Inc. (NYSE: AIG) today reported net income
attributable to AIG of $2.0 billion or $1.34 per diluted share for the quarter
ended December 31, 2013, compared to a net loss of $4.0 billion or $2.68 per
diluted share for the fourth quarter of 2012. The year ago quarter included a
$4.4 billion net loss associated with the sale of ILFC and pre-tax catastrophe
losses of $2.0 billion from Storm Sandy ($1.3 billion after tax). Full year
2013 net income attributable to AIG was $9.1 billion, or $6.13 per diluted
share, compared with $3.4 billion, or $2.04 per diluted share, for the full
year of 2012.

After-tax operating income attributable to AIG grew to $1.7 billion, or $1.15
per diluted share, for the fourth quarter of 2013, compared to $290 million,
or $0.20 per diluted share, in the prior-year quarter, reflecting growth in
each of AIG’s core insurance operations. After-tax operating income for the
full year of 2013 was $6.8 billion, or $4.56 per diluted share, up from $6.6
billion, or $3.93 per diluted share, in 2012.

AIG continues to pursue initiatives to reduce expenses and improve
efficiencies to best meet the needs of its customers. These initiatives
include centralizing work streams into lower cost locations and creating a
more streamlined organization. In the fourth quarter of 2013, AIG incurred a
pre-tax severance charge of $265 million associated with these initiatives
primarily related to AIG Property Casualty.

“AIG’s strong performance in both the fourth quarter and the full year of 2013
represents another successful milestone in our journey to further build on
AIG’s core insurance operations,” said Robert H. Benmosche, AIG President and
Chief Executive Officer. “Global demand for our products and services,
combined with our reputation for innovation, has helped to reestablish AIG as
one of the world’s preeminent insurance companies.

“I am also pleased to announce the Board’s capital management decisions to
increase AIG’s quarterly dividend by 25 percent and authorize the repurchase
of up to an additional $1.0 billion worth of AIG Common Stock, both of which
reaffirm the Board’s confidence in our strategy and allow us to return a
portion of our success directly to our shareholders,” added Mr. Benmosche.

“Our profits illustrate the individual and combined earnings power of all
three of our core insurance operations, as well as our ongoing commitment to
capital management,” continued Mr. Benmosche. “With another year of solid
performance under our belts, I am confident that we have positioned ourselves
for strong growth and profitability in all of our operating businesses. Most
importantly, this foundation will enable us to focus our energy on our
customers.

“In addition, our fourth quarter severance charge represents another step in
AIG’s continued transformation. We are increasingly a more agile, focused, and
sustainable company. As we think about the long-term future of our company, we
must be able to more efficiently meet and exceed the evolving expectations of
our global customer base,” Mr. Benmosche concluded.

Capital and Liquidity

  *AIG shareholders’ equity totaled $100.5 billion at December 31, 2013
  *In the fourth quarter of 2013, issued $1.0 billion of 4.125% senior notes
    due 2024 and repurchased $1.1 billion of debt having an average coupon
    over 7.5%
  *In January 2014, AIG reduced DIB debt by $2.2 billion through a redemption
    of $1.2 billion aggregate principal amount of its 4.250% Notes due 2014
    and a repurchase of $1.0 billion of its 8.25% Notes due 2018 using cash
    and short term investments allocated to the DIB
  *Repurchased 8.3 million shares of AIG Common Stock for an aggregate
    purchase price of approximately $405 million in the fourth quarter of 2013
    (approximately $600 million for the full year 2013)
  *AIG Parent liquidity sources increased to $17.6 billion at year-end 2013,
    including $13.1 billion of cash, short-term investments, and unencumbered
    fixed maturity securities, from $16.1 billion at year-end 2012

AFTER-TAX OPERATING INCOME                           
                                                      
                                   Three Months Ended   Full-Year Ended
                                   December 31,         December 31,
($ in millions)                   2013      2012     2013       2012
Pre-tax operating income (loss)                                  
Insurance Operations
AIG Property Casualty              $  1,090   $ (944)   $ 4,812     $ 1,793
AIG Life and Retirement               1,406     1,090     5,095       4,160
Mortgage Guaranty                   48      (45)    205       9
Total Insurance Operations          2,544   101     10,112    5,962
Other Operations (excluding
Mortgage Guaranty)
Direct Investment book                418       509       1,448       1,215
Global Capital Markets                194       300       625         557
Interest expense                      (328)     (408)     (1,412)     (1,597)
Corporate expenses                    (213)     (337)     (1,009)     (900)
Severance expense                     (265)     -         (265)       -
Change in fair value of AIA
(including realized gains in          -         240       -           2,069
2012)
Change in fair value of ML III        -         -         -           2,888
Other, Net                          132     (4)     (103)     (94)
Total Other Operations                (62)      300       (716)       4,138
(excluding Mortgage Guaranty)
Consolidations, eliminations and    41      (16)    165       (18)
other adjustments
Pre-tax operating income            2,523   385     9,561     10,082
Income tax expense                    (815)     (87)      (2,762)     (3,187)
Noncontrolling interest –             -         -         -           (208)
Treasury
Other noncontrolling interest       (4)     (8)     (37)      (52)
After-tax operating income         $  1,704   $ 290     $ 6,762     $ 6,635
attributable to AIG
After-tax operating income per      1.15    0.20    4.56      3.93
diluted common share

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

AIG PROPERTY CASUALTY                    
                                           
                                           Three Months Ended

                                           December 31,
($ in millions)                           2013      2012     Change 
Net premiums written                       $ 8,028  $ 7,809    3        %
Net premiums earned                          8,621     8,613     -
Underwriting loss                            (330)     (2,161)   85
Net investment income                      1,420   1,217    17
Pre-tax operating income (loss)           $ 1,090  $ (944)    NM       %
Underwriting ratios:
Loss ratio                                   68.2      87.6      (19.4)   pts
Acquisition ratio                            19.5      20.2      (0.7)
General operating expense ratio            16.1    17.3     (1.2)
Combined ratio                             103.8   125.1    (21.3)
Accident year loss ratio, as adjusted        66.4      63.3      3.1
Accident year combined ratio, as             102.0     100.8     1.2
adjusted
Severe losses                              3.2     0.7      2.5      pts

AIG Property Casualty’s growth in pre-tax operating income is attributable to
an improvement in underwriting results and an increase in net investment
income, partially offset by the impact of higher severe losses. As a result of
AIG’s continued focus on capital management and legal entity simplification,
AIG Property Casualty distributed $2.6 billion in cash dividends to AIG Parent
during the fourth quarter of 2013, and a total of $4.1 billion for the full
year of 2013.

Pre-tax catastrophe losses were $208 million in the fourth quarter of 2013,
compared to $2.0 billion in the fourth quarter of 2012, which largely
consisted of Storm Sandy losses. Net prior-year adverse development was $266
million, primarily attributable to runoff pollution remediation coverages and
pre-2004 environmental business compared to $116 million for the fourth
quarter of 2012. This adverse development was more than offset by an increased
reserve discount benefit of $325 million arising from a charge of $322 million
in Commercial Insurance from a lower discount rate on primary workers’
compensation reserves, as well as a benefit of $647 million in AIG Property
Casualty’s Other category, primarily from the use of payout patterns specific
to excess workers’ compensation reserves. The fourth quarter 2013 accident
year loss ratio, as adjusted, increased to 66.4, compared to 63.3, primarily
reflecting the impact of severe losses of $277 million, which added 2.5 points
to the loss ratio compared to the prior year quarter, largely offset by an
improvement in underlying Commercial Insurance results. AIG considers
first-party losses and surety losses greater than $10 million net of
reinsurance to be severe losses. The fourth quarter 2013 acquisition ratio
declined 0.7 points to 19.5, reflecting the timing of guaranty fund and other
assessments and changes in the mix of business. The general operating expense
ratio was 16.1, a 1.2 point decline as a result of lower bad debt charges,
which were partially offset by an increase in employee incentive plan
expenses.

Fourth quarter 2013 net premiums written increased 6 percent, excluding the
effects of foreign exchange, a change in the timing of recognizing excess of
loss-ceded premiums and loss-sensitive premium adjustments, reflecting growth
of new business in both the Commercial and Consumer operating segments, rate
increases and changes in the reinsurance structure. Excluding the items noted
above, Commercial Insurance and Consumer Insurance fourth quarter 2013 net
premiums written grew 7 percent and 4 percent, respectively. Commercial
Insurance continues to focus on growing higher value lines of business and
rate strengthening, while Consumer Insurance continues to target growth in
selected markets.

COMMERCIAL INSURANCE UNDERWRITING
                                           
                                            Three Months Ended

                                            December 31,
($ in millions)                            2013     2012       Change 
Net premiums written                        $ 4,841  $ 4,410    10       %
Net premiums earned                           5,294     5,059     5
Underwriting loss                          $ (402)  $ (1,535)  74       %
Underwriting ratios:
Loss ratio                                    77.9      100.9     (23.0)   pts
Acquisition ratio                             16.1      15.5      0.6
General operating expense ratio             13.7    13.9     (0.2)
Combined ratio                              107.7   130.3    (22.6)
Accident year loss ratio, as adjusted         67.3      66.4      0.9
Accident year combined ratio, as adjusted   97.1    95.8     1.3      pts

The Commercial Insurance combined ratio improved 22.6 points to 107.7, largely
from lower catastrophe losses. The combined ratio was negatively impacted by
6.1 points due to the change in the discounting of primary workers’
compensation reserves. The fourth quarter 2013 accident year loss ratio, as
adjusted, increased 0.9 points to 67.3 as a result of $197 million in higher
severe losses, primarily in Property, which offset improvements in Casualty.
The fourth quarter 2013 acquisition ratio increased 0.6 points to 16.1,
primarily as a result of the timing of guaranty fund and other assessments as
well as a change in business mix. The general operating expense ratio
decreased 0.2 points to 13.7, primarily due to lower bad debt charges, which
were partially offset by higher employee incentive plan expenses.

CONSUMER INSURANCE UNDERWRITING           
                                            
                                            Three Months Ended

                                            December 31,
($ in millions)                             2013    2012   Change 
Net premiums written                        $ 3,189  $ 3,395  (6)      %
Net premiums earned                           3,296     3,534   (7)
Underwriting loss                          $ (113)  $ (397)  72       %
Underwriting ratios:
Loss ratio                                    60.4      67.9    (7.5)    pts
Acquisition ratio                             25.2      26.9    (1.7)
General operating expense ratio             17.7    16.4   1.3
Combined ratio                              103.3   111.2  (7.9)
Accident year loss ratio, as adjusted         60.7      58.0    2.7
Accident year combined ratio, as adjusted   103.6   101.3  2.3      pts

The Consumer Insurance combined ratio decreased 7.9 points to 103.3 largely as
a result of lower catastrophe losses. The Consumer Insurance accident year
loss ratio, as adjusted, increased 2.7 points to 60.7 primarily due to higher
Accident & Health losses, as well as severe loss activity in Private Client
Group. The fourth quarter 2013 acquisition ratio decreased 1.7 points to 25.2
due to lower direct marketing expenditures. The general operating expense
ratio increased 1.3 points primarily due to higher employee incentive plan
costs.

AIG LIFE AND RETIREMENT        
                                 
                                 Three Months Ended

                                 December 31,
($ in millions)                 2013       2012       Change 
Premiums and deposits            $ 8,042    $ 5,215    54       %
Net investment income            2,873     2,715    6
Pre-tax operating income:
Retail                             820         598       37
Institutional                    586       492      19
Total pre-tax operating income   1,406     1,090    29
Assets under management         $ 317,977  $ 290,387  10       %

AIG Life and Retirement’s pre-tax operating income in the fourth quarter of
2013 increased 29 percent to $1.4 billion. The business achieved strong sales,
generated significant positive net flows and executed continued initiatives to
enhance profitability. AIG Life and Retirement’s diversified distribution
platform delivered near-record sales of variable annuities, fixed annuities
and retail mutual funds. Net flows continued to reflect strong positive
momentum, increasing by more than $2.9 billion from the prior-year period.
Increased flows and higher account balances resulted in higher fee income in
the quarter, continuing the trend from prior quarters. Higher net investment
income and ongoing active spread management also benefited results.

Net investment income increased 6 percent to $2.9 billion, driven by higher
returns on alternative investments, increased gains on calls and tenders, and
appreciation of hybrid securities. The portfolio base investment yield was
5.29 percent compared to 5.33 percent in the fourth quarter of 2012.
Consistent with recent quarters, 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. In
an ongoing effort to mitigate the impact of low interest rates, AIG Life and
Retirement has pursued a strategy of actively managing spreads through
crediting rate actions on existing business, duration matching of assets and
liabilities, and disciplined pricing on new business. In the fourth quarter,
AIG Life and Retirement continued to realize capital gains in its fixed
maturity investment portfolio in connection with utilizing capital loss
carryforwards. Consistent with prior quarters, reinvestment of proceeds from
such sales negatively impacted the base investment yield.

Assets under management rose 10 percent to $318.0 billion from the prior-year
quarter. Net flows and separate account values increased substantially
compared to the prior-year period. AIG Life and Retirement’s retail investment
products continued to be well received in the marketplace and were a key
driver of the increase in assets under management. Strong equity market
performance further drove the increase in investment product account values.
Additionally, the development of the stable value wrap business accounted for
a $14.2 billion increase in assets under management from the prior-year
period.

Premiums and deposits totaled $8.0 billion, up 54 percent, consistent with the
continued strong pace of growth seen in recent quarters. Increased sales of
investment-oriented products, including individual variable annuities, retail
mutual funds, and fixed annuities, primarily drove the increase to which Group
Retirement and Institutional Markets also contributed. Premiums and deposits
for Retirement Income Solutions and Retail Mutual Fund product lines increased
99 percent and 107 percent, respectively. Fixed Annuities product line
premiums and deposits totaled $995 million for the quarter, up from $247
million in the fourth quarter of 2012.

The Retail operating segment reported quarterly pre-tax operating income of
$820 million, an increase of 37 percent, driven by higher net investment
income on alternative investments, active spread management on interest rate
sensitive products, and higher fee income on variable annuity separate account
assets. In an effort to better serve its retail client base, in the fourth
quarter, AIG Life and Retirement formed AIG Financial Network to focus on
providing middle and upper-middle income families and small businesses with a
broad range of best-in-class products and services that address a multitude of
consumer needs for financial protection, asset accumulation, and lifetime
retirement income.

The Institutional operating segment reported quarterly pre-tax operating
income of $586 million, an increase of 19 percent. Results were driven by
higher net investment income on alternative investments, higher policy fee
income and lower interest crediting rates due to active spread management.

In the fourth quarter of 2013, AIG Life and Retirement distributed $1.3
billion in cash dividends and loan repayments to AIG Parent for a total of
$4.4 billion for the full year of 2013.

MORTGAGE GUARANTY               
                                  
                                  Three Months Ended

                                  December 31,
(in millions)                    2013      2012      Change 
New insurance written             $ 10,859  $ 11,629  (7)      %
Net premiums written                255        236      8
Net premiums earned                 203        190      7
Underwriting income (loss)          15         (82)     NM
Net investment income             33       37      (11)
Pre-tax operating income (loss)  $ 48      $ (45)    NM       %

United Guaranty Corporation (UGC), AIG’s residential mortgage guaranty
operations, reported pre-tax operating income of $48 million compared to an
operating loss of $45 million in the fourth quarter of 2012. Results reflected
increased earned premiums from business written after 2008 using UGC’s
risk-based pricing strategy along with lower incurred losses in its first-lien
book of business due to declining newly reported delinquencies and increasing
cure rates in its delinquent inventory. In the fourth quarter of 2013, 59
percent of net premiums earned were from business written after 2008.

First-lien new insurance written totaled $10.9 billion in principal of loans
insured for the quarter, down from $11.6 billion for the same period in 2012,
driven by decreased origination activity, due primarily to a 71 percent
decline in mortgage refinancing activity which was partially offset by a 43
percent increase in originations for home purchases. Quality remained high,
with an average FICO score of 753 and an average loan-to-value of 91 percent
on new business. Net premiums written grew 8 percent to $255 million in the
fourth quarter of 2013 due to growth of the first-lien inforce book.

UGC paid a $90 million cash dividend to AIG in 2013, its first dividend since
2010.

OTHER OPERATIONS

AIG’s Other Operations (excluding Mortgage Guaranty) reported a fourth quarter
2013 pre-tax operating loss of $62 million, compared to pre-tax operating
income of $300 million for the fourth quarter of 2012. The pre-tax operating
loss for the fourth quarter of 2013 included the severance charge of $265
million disclosed above. The year-ago quarter included a $240 million pre-tax
gain related to AIG’s interest in AIA Group Limited.

Conference Call

AIG will host a conference call tomorrow, Friday, February 14, 2014, 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),
this press release, and AIG’s Fourth Quarter 2013 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 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; 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,
Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A in AIG’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2012 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 fiscal year ended December 31, 2013 (which will be filed with the
Securities and Exchange Commission). 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 Fourth 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
value 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, AIG Property Casualty other (income) expense-net,
(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 - net, 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 direct and assumed
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, changes in benefit reserves and DAC, VOBA, and SIA related to net
realized capital (gains) losses and income from divested businesses, including
Aircraft Leasing.

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: @AIGInsurance | 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 December 31,       Twelve Months Ended December 31,
                                         % Inc.                               % Inc.
                 2013        2012        (Dec.)     2013        2012        (Dec.)  
AIG Property
Casualty
Operations:
Net premiums     $ 8,028     $ 7,809     2.8      %   $ 34,388    $ 34,436    (0.1  ) %
written
Net premiums       8,621        8,613      0.1            33,953       34,873     (2.6  )
earned
Claims and
claims
adjustment         5,878        7,545      (22.1  )       22,639       25,785     (12.2 )
expenses
incurred
Acquisition        1,682        1,737      (3.2   )       6,705        6,936      (3.3  )
expenses
General
operating         1,391      1,492     (6.8   )      5,064      5,139     (1.5  )
expenses
Underwriting       (330   )     (2,161 )   84.7           (455   )     (2,987 )   84.8
loss
Net investment   1,420     1,217    16.7       5,267     4,780    10.2   
income
Pre-tax
operating        1,090     (944   )  NM         4,812     1,793    168.4  
income (loss)
Net realized
capital gains      167          8          NM             380          211        80.1
(a)
Legal              10           17         (41.2  )       13           17         (23.5 )
settlements
Other income
(expense) -       (79    )    (4     )   NM            (72    )    2         NM
net
Pre-tax income   $ 1,188     $ (923   )   NM           $ 5,133     $ 2,023     153.7
(loss)
                                                                            
Loss ratio         68.2         87.6                      66.7         73.9
Acquisition        19.5         20.2                      19.7         19.9
ratio
General
operating         16.1       17.3                    14.9       14.7   
expense ratio
Combined ratio   103.8     125.1               101.3     108.5           
                                                                                            
AIG Life and
Retirement
Operations:
Premiums         $ 606        $ 634        (4.4   )     $ 2,596      $ 2,464      5.4
Policy fees        652          618        5.5            2,535        2,349      7.9
Net investment     2,873        2,715      5.8            10,854       10,718     1.3
income
Other income      454        358       26.8          1,709      1,293     32.2
Total revenues     4,585        4,325      6.0            17,694       16,824     5.2
Benefits and     3,179     3,235    (1.7   )    12,599    12,664   (0.5  ) 
expenses
Pre-tax
operating        1,406     1,090    29.0       5,095     4,160    22.5   
income
Legal              553          154        259.1          1,020        154        NM
settlements
Changes in
fair value of
fixed maturity
securities
designated to
hedge
living benefit
liabilities,
net of             (33    )     (11    )   (200.0 )       (161   )     37         NM
interest
expense
Changes in
benefit
reserves and
DAC, VOBA and
SIA related
to net
realized           (4     )     (81    )   95.1           (1,486 )     (1,201 )   (23.7 )
capital losses
Net realized
capital gains     53         100       (47.0  )      2,037      630       223.3
(a)
Pre-tax income   $ 1,975     $ 1,252     57.7         $ 6,505     $ 3,780     72.1
                                                                            
Other
operations,
pre-tax          (14    )   255      NM         (511   )   4,147    NM     
operating
income (loss)
Legal reserves     (21    )     (10    )   (110.0 )       (446   )     (754   )   40.8
Legal              71           39         82.1           119          39         205.1
settlements
Loss on
extinguishment     (192   )     -          NM             (651   )     (32    )   NM
of debt
Changes in
benefit
reserves and
DAC, VOBA and
SIA related
to net
realized           (98    )     -          NM             (98    )     -          NM
capital losses
Aircraft           (189   )     69         NM             (129   )     338        NM
Leasing
Net loss on
sale of            (1     )     (6,714 )   100.0          (48    )     (6,717 )   99.3
divested
businesses
Net realized
capital gains     (652   )    40        NM            (685   )    289       NM
(losses)
Pre-tax loss       (1,096 )     (6,321 )   82.7           (2,449 )     (2,690 )   9.0
                                                                                            
Consolidation
and
elimination
adjustments        52           (11    )   NM             167          (20    )   NM
related to
pre-tax
operating
income (loss)
Consolidation
and
elimination
adjustments
related to
non-operating
income (loss),
including net
realized          31         (36    )   NM            12         (202   )   NM
capital gains
(losses) (a)
Income (loss)
from
continuing         2,150        (6,039 )   NM             9,368        2,891      224.0
operations
before income
tax expense
Income tax
expense           188        (2,098 )   NM            360        (808   )   NM
(benefit)
Income (loss)
from               1,962        (3,941 )   NM             9,008        3,699      143.5
continuing
operations
Income (loss)
from
discontinued      11         (8     )   NM            84         1         NM
operations,
net of income
tax expense
Net income        1,973      (3,949 )   NM            9,092      3,700     145.7
(loss)
Less: Net
income (loss)
from
continuing
operations
attributable
to
noncontrolling
interests:
Nonvoting,
callable,
junior and         -            -          NM             -            208        NM
senior
preferred
interests
Other             (5     )    9         NM            7          54        (87.0 )
Total net
income (loss)
from
continuing
operations
attributable
to                (5     )    9         NM            7          262       (97.3 )
noncontrolling
interests
Net income
(loss)           $ 1,978     $ (3,958 )   NM       %   $ 9,085     $ 3,438     164.3   %
attributable
to AIG
                                                                                            
See accompanying notes on the following page.

Financial Highlights -continued
                                                                                                
                Three Months Ended December 31,         Twelve Months Ended December 31,
                                           % Inc.                                 % Inc.
                 2013          2012          (Dec.)       2013          2012          (Dec.)
                                                                                                
Net income
(loss)           $ 1,978       $ (3,958  )   NM       %   $ 9,085       $ 3,438       164.3   %
attributable
to AIG
Adjustments to
arrive at
after-tax
operating
income
attributable
to AIG
(amounts are
net of tax):
Income (loss)
from
discontinued       (11     )     8           NM             (84     )     (1      )   NM
operations,
net of income
tax expense
Loss from
divested           97            4,323       (97.8  )       117           4,039       (97.1 )
businesses
Uncertain tax
positions and      65            200         (67.5  )       791           543         45.7
other tax
adjustments
Legal reserves
(settlements)
related to         (399    )     (129    )   (209.3 )       (460    )     353         NM
legacy crisis
matters
Deferred
income tax
valuation          (540    )     (116    )   (365.5 )       (3,237  )     (1,911  )   (69.4 )
allowance
releases
Changes in
fair value of
AIG Life and
Retirement
fixed maturity
securities
designated to
hedge living
benefit
liabilities,       22            7           214.3          105           (24     )   NM
net of
interest
expense
Changes in
benefit
reserves and
DAC, VOBA and
SIA
related to net
realized           67            52          28.8           1,132         781         44.9
capital gains
AIG Property
Casualty other     47            -           NM             47            -           NM
(income)
expense - net
Loss on
extinguishment     125           -           NM             423           21          NM
of debt
Net realized
capital            253           (97     )   NM             (1,157  )     (586    )   (97.4 )
(gains) losses
Non-qualifying
derivative
hedging gains,
excluding
net realized
capital           -           -          NM            -           (18     )   NM
(gains) losses
After-tax
operating
income           $ 1,704      $ 290        487.6        $ 6,762      $ 6,635      1.9
attributable
to AIG
                                                                                                
Income (loss)
per common
share:
                                                                                                
Basic
Income (loss)
from             $ 1.34        $ (2.68   )   NM           $ 6.11        $ 2.04        199.5
continuing
operations
Income from
discontinued      0.01        -          NM            0.05        -          NM
operations
Net income
(loss)           $ 1.35       $ (2.68   )   NM           $ 6.16       $ 2.04       202.0
attributable
to AIG
                                                                                                
Diluted
Income (loss)
from             $ 1.33        $ (2.68   )   NM           $ 6.08        $ 2.04        198.0
continuing
operations
Income from
discontinued      0.01        -          NM            0.05        -          NM
operations
Net income
(loss)           $ 1.34       $ (2.68   )   NM           $ 6.13       $ 2.04       200.5
attributable
to AIG
After-tax
operating
income           $ 1.15        $ 0.20        475.0    %   $ 4.56        $ 3.93        16.0
attributable
to AIG per
diluted share
                                                                                                
                                                                                                
Weighted
average shares
outstanding:
Basic              1,468.7       1,476.5                    1,474.2       1,687.2
Diluted            1,480.7       1,476.5                    1,481.2       1,687.2
                                                                                                
Book value per
common share                                              $ 68.62       $ 66.38       3.4
(b)
Book value per
common share
excluding
accumulated
other
comprehensive                                             $ 64.28       $ 57.87       11.1    %
income (c)
                                                                                                
                                                                                                
Return on          7.9     %   NM%                         9.2     %     3.4     %   
equity (d)
Return on
equity,            8.5     %   NM%                         10.1    %     3.7     %   
excluding AOCI
(e)
Return on
equity -
after-tax
operating          7.3     %     1.3     %                 7.5     %     7.2     %   
income,
excluding AOCI
(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 common shares
      outstanding.
(c)   Represents total AIG shareholders' equity, excluding AOCI divided by
      common 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
Liz Werner (Investors)
212-770-7074
elizabeth.werner@aig.com
Jon Diat (Media)
212-770-3505
jon.diat@aig.com
 
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