Schedule II Condensed Financial Information of Registrant - Parent Company Only

12 Months Ended

Dec. 31, 2017

Schedule II Condensed Financial Information of Registrant - Parent Company Only

Schedule II Condensed Financial Information of Registrant - Parent Company Only

Condensed Financial Information of Registrant

Balance Sheets — Parent Company Only

		Schedule II
December 31,
(in millions)		2017		2016
Assets:
Short-term investments	$	2,541	$	4,424
Other investments		6,004		7,154
Total investments		8,545		11,578
Cash		3		2
Loans to subsidiaries*		35,004		34,692
Due from affiliates - net*		1,585		3,460
Intercompany tax receivable*		3,058		5,129
Deferred income taxes		11,030		15,169
Investments in consolidated subsidiaries*		40,135		42,582
Other assets		343		341
Total assets	$	99,703	$	112,953
Liabilities:
Due to affiliate*	$	4,340	$	6,083
Intercompany tax payable*		4,577		4,152
Deferred tax liabilities		-		-
Notes and bonds payable		20,339		19,432
Junior subordinated debt		841		843
MIP notes payable		356		1,099
Series AIGFP matched notes and bonds payable		21		31
Loans from subsidiaries*		517		577
Other liabilities (includes intercompany derivative liabilities of $63 in 2017 and $419 in 2016)		3,541		4,436
Total liabilities		34,532		36,653
AIG Shareholders’ equity:
Common stock		4,766		4,766
Treasury stock		(47,595)		(41,471)
Additional paid-in capital		81,078		81,064
Retained earnings		21,457		28,711
Accumulated other comprehensive income		5,465		3,230
Total AIG shareholders’ equity		65,171		76,300
Total liabilities and equity	$	99,703	$	112,953

* Eliminated in consolidation.

See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Income — Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2017		2016		2015
Revenues:
Equity in undistributed net income (loss) of consolidated subsidiaries(a)	$	(2,375)	$	(8,633)	$	(2,929)
Dividend income from consolidated subsidiaries(a)		2,226		7,364		6,883
Interest income(b)		656		411		342
Net realized capital gains (losses)		46		2		(587)
Other income		189		103		333
Expenses:
Interest expense		949		988		1,049
Net loss on extinguishment of debt		2		77		703
Net (gain) loss on sale of divested businesses(c)		30		(690)		11
Other expenses		922		985		1,167
Income (loss) from continuing operations before income tax expense (benefit)		(1,161)		(2,113)		1,112
Income tax expense (benefit)		4,922		(1,301)		(1,086)
Net income (loss)		(6,083)		(812)		2,198
Loss from discontinued operations		(1)		(37)		(2)
Net income (loss) attributable to AIG Parent Company	$	(6,084)	$	(849)	$	2,196
(a) Eliminated in consolidation.
(b) Includes interest income on intercompany borrowings of $512 million, $294 million and $163 million on December 31, 2017, 2016 and 2015, respectively,
eliminated in consolidation.
(c) Primarily includes pre-tax gain of $697 million on the sale of United Guaranty on December 31, 2016.
See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Comprehensive Income — Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2017		2016		2015
Net income	$	(6,084)	$	(849)	$	2,196
Other comprehensive income		2,235		693		(8,080)
Total comprehensive loss attributable to AIG	$	(3,849)	$	(156)	$	(5,884)
See accompanying Notes to Condensed Financial Information of Registrant.

Condensed Financial Information of Registrant (Continued)
Statements of Cash Flows — Parent Company Only
				Schedule II
Years Ended December 31,
(in millions)		2017		2016		2015
Net cash provided by operating activities	$	36	$	2,112	$	4,443
Cash flows from investing activities:
Sales and maturities of investments		5,714		5,598		7,609
Sales of divested businesses		40		2,160		-
Purchase of investments		(2,465)		(1,002)		(1,881)
Net change in short-term investments		1,990		(789)		2,300
Contributions to subsidiaries - net		2,446		1,637		565
Mortgage and other loan receivables - originations and purchases		-		(85)		-
Payments received on mortgages and other loan receivables		107		171		158
Loans to subsidiaries - net		199		1,525		(83)
Other, net		(183)		(56)		(175)
Net cash provided by investing activities		7,848		9,159		8,493
Cash flows from financing activities:
Issuance of long-term debt		1,505		3,831		5,540
Repayment of long-term debt		(1,724)		(1,996)		(6,504)
Cash dividends paid		(1,172)		(1,372)		(1,028)
Loans from subsidiaries - net		(63)		3		(201)
Purchase of Common Stock		(6,275)		(11,460)		(10,691)
Other, net		(154)		(309)		(44)
Net cash used in financing activities		(7,883)		(11,303)		(12,928)
Change in cash		1		(32)		8
Cash at beginning of year		2		34		26
Cash at end of year	$	3	$	2	$	34
Supplementary disclosure of cash flow information:
	Years Ended December 31,
(in millions)		2017		2016		2015
Cash (paid) received during the period for:
Interest:
Third party	$	(948)	$	(975)	$	(1,030)
Intercompany		-		2		-
Taxes:
Income tax authorities		(329)		(15)		(11)
Intercompany		614		479		829
Intercompany non-cash financing and investing activities:
Capital contributions		259		3,245		494
Return of capital		26		-		-
Dividends received in the form of securities		735		5,234		2,326
Fixed maturity securities received in exchange for equity securities		-		440		-
Non-cash financing/investing activities
Non-cash consideration received from sale of shares of AerCap		-		-		500
Non-cash consideration received from sale of United Guaranty		-		1,101		-
See accompanying Notes to Condensed Financial Information of Registrant.

Notes to Condensed Financial Information of Registrant

American International Group, Inc.’s (the Registrant) investments in consolidated subsidiaries are stated at cost plus equity in undistributed income of consolidated subsidiaries. The accompanying condensed financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto of American International Group, Inc. and subsidiaries included in the Registrant’s 2017 Annual Report on Form 10-K for the year ended December 31, 2017(Annual Report on Form 10-K) filed with the Securities and Exchange Commission on February 16, 2018.

The Registrant includes in its Statement of Income dividends from its subsidiaries and equity in undistributed income (loss) of consolidated subsidiaries, which represents the net income (loss) of each of its wholly-owned subsidiaries.

Certain prior period amounts have been reclassified to conform to the current period presentation.

The five-year debt maturity schedule is incorporated by reference from Note 15 to Consolidated Financial Statements.

The Registrant files a consolidated federal income tax return with certain subsidiaries and acts as an agent for the consolidated tax group when making payments to the Internal Revenue Service. The Registrant and its subsidiaries have adopted, pursuant to a written agreement, a method of allocating consolidated Federal income taxes. Amounts allocated to the subsidiaries under the written agreement are included in Due from affiliates in the accompanying Condensed Balance Sheets.

Income taxes in the accompanying Condensed Balance Sheets are composed of the Registrant’s current and deferred tax assets, the consolidated group’s current income tax receivable and deferred taxes related to tax attribute carryforwards of AIG’s U.S. consolidated income tax group.

For additional information see Note 23 to the Consolidated Financial Statements.

The consolidated U.S. deferred tax asset for net operating loss, capital loss and tax credit carryforwards are recorded by the Parent Company, which files the consolidated U.S. Federal income tax return, and are not allocated to its subsidiaries. Generally, as, and if, the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries.