EQUITY

12 Months Ended

Dec. 31, 2017

17. Equity

Shares Outstanding

The following table presents a rollforward of outstanding shares:

	Common	Treasury	Common Stock
	Stock Issued	Stock	Outstanding
Year Ended December 31, 2015
Shares, beginning of year	1,906,671,492	(530,744,521)	1,375,926,971
Shares issued	-	371,806	371,806
Shares repurchased	-	(182,382,160)	(182,382,160)
Shares, end of year	1,906,671,492	(712,754,875)	1,193,916,617
Year Ended December 31, 2016
Shares, beginning of year	1,906,671,492	(712,754,875)	1,193,916,617
Shares issued	-	2,069,110	2,069,110
Shares repurchased	-	(200,649,886)	(200,649,886)
Shares, end of year	1,906,671,492	(911,335,651)	995,335,841
Year Ended December 31, 2017
Shares, beginning of year	1,906,671,492	(911,335,651)	995,335,841
Shares issued	-	3,386,462	3,386,462
Shares repurchased	-	(99,677,646)	(99,677,646)
Shares, end of year	1,906,671,492	(1,007,626,835)	899,044,657

Dividends

Dividends are payable on AIG Common Stock only when, as and if declared by our Board of Directors in its discretion, from funds legally available for this purpose. In considering whether to pay a dividend on or purchase shares of AIG Common Stock, our Board of Directors considers a number of factors, including, but not limited to: the capital resources available to support our insurance operations and business strategies, AIG’s funding capacity and capital resources in comparison to internal benchmarks, expectations for capital generation, rating agency expectations for capital, regulatory standards for capital and capital distributions, and such other factors as our Board of Directors may deem relevant.

The following table presents record date, payment date and dividends paid per share on AIG Common Stock:

			Dividends Paid
Record Date	Payment Date		Per Share
December 8, 2017	December 22, 2017	$	0.32
September 15, 2017	September 29, 2017		0.32
June 14, 2017	June 28, 2017		0.32
March 15, 2017	March 29, 2017		0.32

December 8, 2016	December 22, 2016		0.32
September 15, 2016	September 29, 2016		0.32
June 13, 2016	June 27, 2016		0.32
March 14, 2016	March 28, 2016		0.32

December 7, 2015	December 21, 2015		0.28
September 14, 2015	September 28, 2015		0.28
June 11, 2015	June 25, 2015		0.125
March 12, 2015	March 26, 2015		0.125

Repurchase of AIG Common Stock

The following table presents repurchases of AIG Common Stock and warrants to purchase shares of AIG Common Stock:

Years Ended December 31,
(in millions)		2017		2016		2015	^(a)
Aggregate repurchases of common stock	$	6,275	$	11,460	$	10,691
Total number of common shares repurchased		100		201		182
Aggregate repurchases of warrants	$	3	$	309	$	-
Total number of warrants repurchased^(b)		-		17		-

(a) The total number of shares of AIG Common Stock repurchased in 2015 includes (but the aggregate purchase price does not include) approximately 3.5 million shares of AIG Common Stock received in January 2015 upon the settlement of an accelerated stock repurchase (ASR) agreement executed in the fourth quarter of 2014.

(b) In 2017, we repurchased 185,000 warrants to purchase shares of AIG Common Stock.

Our Board of Directors has authorized the repurchase of shares of AIG Common Stock and warrants to purchase shares of AIG Common Stock through a series of actions. On May 3, 2017, our Board of Directors authorized an additional increase of $2.5 billion to its previous share repurchase authorization. As of December 31, 2017, approximately $2.3 billion remained under our share repurchase authorization. Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise (including through the purchase of warrants). Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans.

The timing of any future repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors.

Accumulated Other Comprehensive Income

The following table presents a rollforward of Accumulated other comprehensive income:

	Unrealized Appreciation
	(Depreciation) of Fixed			Unrealized
	Maturity Securities			Appreciation		Foreign		Retirement
	on Which Other-Than-			(Depreciation)		Currency		Plan
	Temporary Credit			of All Other		Translation		Liabilities
(in millions)	Impairments Were Taken			Investments		Adjustments		Adjustment		Total
Balance, January 1, 2015, net of tax	$	1,043	$	12,327	$	(1,784)	$	(969)	$	10,617
Change in unrealized
depreciation of investments		(488)		(10,519)		-		-		(11,007)
Change in deferred policy
acquisition costs adjustment and other		(146)		1,265		-		-		1,119
Change in future policy benefits		92		1,112		-		-		1,204
Change in foreign currency
translation adjustments		-		-		(1,129)		-		(1,129)
Change in net actuarial gain		-		-		-		413		413
Change in prior service credit		-		-		-		(239)		(239)
Change in deferred tax asset (liability)		195		1,380		29		(51)		1,553
Total other comprehensive income (loss)		(347)		(6,762)		(1,100)		123		(8,086)
Noncontrolling interests		-		(1)		(5)		-		(6)
Balance, December 31, 2015, net of tax	$	696	$	5,566	$	(2,879)	$	(846)	$	2,537
Change in unrealized
appreciation (depreciation) of investments		(326)		931		-		-		605
Change in deferred policy
acquisition costs adjustment and other		(19)		286		-		-		267
Change in future policy benefits		-		(676)		-		-		(676)
Change in foreign currency
translation adjustments		-		-		93		-		93
Change in net actuarial loss		-		-		-		(151)		(151)
Change in prior service credit		-		-		-		(22)		(22)
Change in deferred tax asset		75		298		157		47		577
Total other comprehensive income (loss)		(270)		839		250		(126)		693
Noncontrolling interests		-		-		-		-		-
Balance, December 31, 2016, net of tax	$	426	$	6,405	$	(2,629)	$	(972)	$	3,230
Change in unrealized
appreciation of investments		394		3,668		-		-		4,062
Change in deferred policy
acquisition costs adjustment and other		23		(1,282)		-		-		(1,259)
Change in future policy benefits		-		(1,102)		-		-		(1,102)
Change in foreign currency
translation adjustments		-		-		547		-		547
Change in net actuarial gain		-		-		-		110		110
Change in prior service cost		-		-		-		9		9
Change in deferred tax asset (liability)		(50)		4		(8)		(78)		(132)
Total other comprehensive income		367		1,288		539		41		2,235
Noncontrolling interests		-		-		-		-		-
Balance, December 31, 2017, net of tax	$	793	$	7,693	$	(2,090)	$	(931)	$	5,465

The following table presents the other comprehensive income (loss) reclassification adjustments for the years ended December 31, 2017, 2016 and 2015:

		Unrealized Appreciation
		(Depreciation) of Fixed		Unrealized
		Maturity Securities		Appreciation		Foreign		Retirement
		on Which Other-		(Depreciation)		Currency		Plan
		Than-Temporary Credit		of All Other		Translation		Liabilities
(in millions)		Impairments Were Taken		Investments		Adjustments		Adjustment		Total
December 31, 2015
Unrealized change arising during period	$	(471)	$	(7,068)	$	(1,129)	$	285	$	(8,383)
Less: Reclassification adjustments
included in net income		71		1,074		-		111		1,256
Total other comprehensive income (loss),
before income tax expense (benefit)		(542)		(8,142)		(1,129)		174		(9,639)
Less: Income tax expense (benefit)		(195)		(1,380)		(29)		51		(1,553)
Total other comprehensive income (loss),
net of income tax expense (benefit)	$	(347)	$	(6,762)	$	(1,100)	$	123	$	(8,086)

December 31, 2016
Unrealized change arising during period	$	(222)	$	1,769	$	93	$	(344)	$	1,296
Less: Reclassification adjustments
included in net income		123		1,228		-		(171)		1,180
Total other comprehensive income (loss),
before income tax expense (benefit)		(345)		541		93		(173)		116
Less: Income tax benefit		(75)		(298)		(157)		(47)		(577)
Total other comprehensive income (loss),
net of income tax benefit	$	(270)	$	839	$	250	$	(126)	$	693

December 31, 2017
Unrealized change arising during period	$	467	$	2,052	$	547	$	24	$	3,090
Less: Reclassification adjustments
included in net income		50		768		-		(95)		723
Total other comprehensive income,
before income tax expense		417		1,284		547		119		2,367
Less: Income tax expense (benefit)		50		(4)		8		78		132
Total other comprehensive income,
net of income tax expense (benefit)	$	367	$	1,288	$	539	$	41	$	2,235

The following table presents the effect of the reclassification of significant items out of Accumulated other comprehensive income on the respective line items in the Consolidated Statements of Income:

	Amount Reclassified
	from Accumulated Other
Years Ended December 31,	Comprehensive Income						Affected Line Item in the
(in millions)	2017			2016		2015	Consolidated Statements of Income
Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken

Investments	$	50	$	123	$	71	Other realized capital gains
Total		50		123		71
Unrealized appreciation (depreciation) of all other investments
Investments		463		935		1,054	Other realized capital gains
Deferred acquisition costs adjustment		305		293		3	Amortization of deferred policy acquisition costs
Future policy benefits		-		-		17	Policyholder benefits and losses incurred
Total		768		1,228		1,074
Change in retirement plan liabilities adjustment
Prior-service credit		5		15		214	*
Actuarial losses		(100)		(186)		(103)	*
Total		(95)		(171)		111
Total reclassifications for the period	$	723	$	1,180	$	1,256

* These Accumulated other comprehensive income components are included in the computation of net periodic pension cost. See Note 21 to the Consolidated Financial Statements.