INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

3 Months Ended

Mar. 31, 2019

Information Provided in Connection with Outstanding Debt

Condensed Consolidating Balance Sheets

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and	Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
March 31, 2019
Assets:
Short-term investments(a)	$	2,051	$	2	$	-	$	11,306	$	(2,226)	$	11,133
Other investments(b)		3,750		-		-		309,980		-		313,730
Total investments		5,801		2		-		321,286		(2,226)		324,863
Cash		2		1		3		2,559		-		2,565
Loans to subsidiaries(c)		35,221		-		-		608		(35,829)		-
Investment in consolidated subsidiaries(c)		36,737		4,282		29,312		-		(70,331)		-
Other assets, including deferred income taxes(d)		15,707		1,796		126		170,000		(2,135)		185,494
Total assets	$	93,468	$	6,081	$	29,441	$	494,453	$	(110,521)	$	512,922
Liabilities:
Insurance liabilities	$	-	$	-	$	-	$	298,689	$	-	$	298,689
Long-term debt		22,993		357		643		11,783		-		35,776
Other liabilities, including intercompany balances(b)		9,080		221		133		111,293		(4,363)		116,364
Loans from subsidiaries(c)		608		-		-		35,222		(35,830)		-
Total liabilities		32,681		578		776		456,987		(40,193)		450,829
Total AIG shareholders’ equity		60,787		5,503		28,665		36,160		(70,328)		60,787
Non-redeemable noncontrolling interests		-		-		-		1,306		-		1,306
Total equity		60,787		5,503		28,665		37,466		(70,328)		62,093
Total liabilities and equity	$	93,468	$	6,081	$	29,441	$	494,453	$	(110,521)	$	512,922
December 31, 2018
Assets:
Short-term investments(a)	$	1,141	$	2	$	-	$	10,329	$	(1,798)	$	9,674
Other investments(b)		3,377		-		-		301,158		-		304,535
Total investments		4,518		2		-		311,487		(1,798)		314,209
Cash		2		9		9		2,853		-		2,873
Loans to subsidiaries(c)		34,963		-		-		615		(35,578)		-
Investment in consolidated subsidiaries(c)		33,300		4,029		26,321		-		(63,650)		-
Other assets, including deferred income taxes(d)		15,389		1,798		124		159,430		(1,839)		174,902
Total assets	$	88,172	$	5,838	$	26,454	$	474,385	$	(102,865)	$	491,984
Liabilities:
Insurance liabilities	$	-	$	-	$	-	$	293,652	$	-	$	293,652
Long-term debt		22,422		359		643		11,116		-		34,540
Other liabilities, including intercompany balances(b)		8,774		228		144		100,974		(3,637)		106,483
Loans from subsidiaries(c)		615		-		-		34,963		(35,578)		-
Total liabilities		31,811		587		787		440,705		(39,215)		434,675
Total AIG shareholders’ equity		56,361		5,251		25,667		32,732		(63,650)		56,361
Non-redeemable noncontrolling interests		-		-		-		948		-		948
Total equity		56,361		5,251		25,667		33,680		(63,650)		57,309
Total liabilities and equity	$	88,172	$	5,838	$	26,454	$	474,385	$	(102,865)	$	491,984

(a)At March 31,2019, includes restricted cash of $8 million and $243 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively. At December 31,2018, includes restricted cash of $124 million and $18 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively.

(b)Includes intercompany derivative positions, which are reported at fair value before credit valuation adjustment.

(c) Eliminated in consolidation.

(d) At March 31,2019, includes restricted cash of $1 million and $362 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively. At December 31,2018, includes restricted cash of $1 million and $342 million for American International Group, Inc. (As Guarantor) and Other Subsidiaries, respectively.

Condensed Consolidating Statements of Income (Loss)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended March 31, 2019
Revenues:
Equity in earnings of consolidated subsidiaries*	$	708	$	207	$	700	$	-	$	(1,615)	$	-
Other income		287		1		-		12,208		(40)		12,456
Total revenues		995		208		700		12,208		(1,655)		12,456
Expenses:
Interest expense		246		-		13		94		(4)		349
Loss on extinguishment of debt		-		4		-		(6)		-		(2)
Other expenses		188		1		-		10,804		(38)		10,955
Total expenses		434		5		13		10,892		(42)		11,302
Income (loss) from continuing operations before income tax
expense (benefit)		561		203		687		1,316		(1,613)		1,154
Income tax expense (benefit)		(94)		-		(1)		312		-		217
Income (loss) from continuing operations		655		203		688		1,004		(1,613)		937
Income (loss) from discontinued operations, net of income taxes		(1)		-		-		1		-		-
Net income (loss)		654		203		688		1,005		(1,613)		937
Less:
Net income (loss) from continuing operations attributable to
noncontrolling interests		-		-		-		283		-		283
Net income (loss) attributable to AIG	$	654	$	203	$	688	$	722	$	(1,613)	$	654
Three Months Ended March 31, 2018
Revenues:
Equity in earnings of consolidated subsidiaries*	$	1,033	$	-	$	722	$	-	$	(1,755)	$	-
Other income		258		-		-		11,512		(58)		11,712
Total revenues		1,291		-		722		11,512		(1,813)		11,712
Expenses:
Interest expense		220		-		12		48		(3)		277
Loss on extinguishment of debt		-		-		-		4		-		4
Other expenses		152		-		1		10,106		(55)		10,204
Total expenses		372		-		13		10,158		(58)		10,485
Income (loss) from continuing operations before income tax
expense (benefit)		919		-		709		1,354		(1,755)		1,227
Income tax expense (benefit)		(19)		-		3		293		-		277
Income (loss) from continuing operations		938		-		706		1,061		(1,755)		950
Loss from discontinued operations, net of income taxes		-		-		-		(1)		-		(1)
Net income (loss)		938		-		706		1,060		(1,755)		949
Less:
Net income (loss) from continuing operations attributable to
noncontrolling interests		-		-		-		11		-		11
Net income (loss) attributable to AIG	$	938	$	-	$	706	$	1,049	$	(1,755)	$	938

*Eliminated in consolidation.

Condensed Consolidating Statements of Comprehensive Income (Loss)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended March 31, 2019
Net income (loss)	$	654	$	203	$	688	$	1,005	$	(1,613)	$	937
Other comprehensive income (loss)		3,541		1		5,308		9,175		(14,478)		3,547
Comprehensive income (loss)		4,195		204		5,996		10,180		(16,091)		4,484
Total comprehensive income attributable to noncontrolling interests		-		-		-		289		-		289
Comprehensive income (loss) attributable to AIG	$	4,195	$	204	$	5,996	$	9,891	$	(16,091)	$	4,195
Three Months Ended March 31, 2018
Net income (loss)	$	938	$	-	$	706	$	1,060	$	(1,755)	$	949
Other comprehensive income (loss)		(2,669)		-		4,950		14,655		(19,605)		(2,669)
Comprehensive income (loss)		(1,731)		-		5,656		15,715		(21,360)		(1,720)
Total comprehensive income attributable to noncontrolling interests		-		-		-		11		-		11
Comprehensive income (loss) attributable to AIG	$	(1,731)	$	-	$	5,656	$	15,704	$	(21,360)	$	(1,731)

Condensed Consolidating Statements of Cash Flows

		American
		International		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Three Months Ended March 31, 2019
Net cash (used in) provided by operating activities	$	318	$	(8)	$	480	$	(665)	$	(1,101)	$	(976)
Cash flows from investing activities:
Sales of investments		864		-		-		13,840		(364)		14,340
Sales of divested businesses, net		-		-		-		-		-		-
Purchase of investments		(675)		-		-		(14,804)		364		(15,115)
Loans to subsidiaries - net		(10)		-		-		10		-		-
Contributions from (to) subsidiaries - net		(319)		-		-		-		319		-
Acquisition of businesses, net of cash and
restricted cash acquired		-		-		-		-		-		-
Net change in short-term investments		(1,020)		-		-		(201)		-		(1,221)
Other, net		(20)		-		-		37		-		17
Net cash (used in) provided by investing activities		(1,180)		-		-		(1,118)		319		(1,979)
Cash flows from financing activities:
Issuance of long-term debt		596		-		-		853		-		1,449
Repayments of long-term debt		-		-		-		(589)		-		(589)
Issuance of preferred stock		485		-		-		-		-		485
Purchase of common stock		-		-		-		-		-		-
Intercompany loans - net		(10)		-		-		10		-		-
Cash dividends paid		(278)		-		(486)		(615)		1,101		(278)
Other, net		(47)		-		-		2,063		(319)		1,697
Net cash (used in) provided by financing activities		746		-		(486)		1,722		782		2,764
Effect of exchange rate changes on cash and
restricted cash		-		-		-		12		-		12
Change in cash and restricted cash		(116)		(8)		(6)		(49)		-		(179)
Cash and restricted cash at beginning of year		127		9		9		3,213		-		3,358
Cash and restricted cash at end of period	$	11	$	1	$	3	$	3,164	$	-	$	3,179
Three Months Ended March 31, 2018
Net cash (used in) provided by operating activities	$	9	$	-	$	362	$	(501)	$	(808)	$	(938)
Cash flows from investing activities:
Sales of investments		1,322		-		-		15,830		(2,681)		14,471
Sales of divested businesses, net		-		-		-		6		-		6
Purchase of investments		(39)		-		-		(15,405)		2,681		(12,763)
Loans to subsidiaries - net		422		-		-		(60)		(362)		-
Contributions from (to) subsidiaries - net		153		-		-		-		(153)		-
Net change in short-term investments		(2,460)		-		-		(580)		-		(3,040)
Other, net		(79)		-		-		(567)		-		(646)
Net cash (used in) investing activities		(681)		-		-		(776)		(515)		(1,972)
Cash flows from financing activities:
Issuance of long-term debt		2,472		-		-		567		-		3,039
Repayments of long-term debt		(1,107)		-		-		(220)		-		(1,327)
Purchase of common stock		(298)		-		-		-		-		(298)
Intercompany loans - net		60		-		-		(422)		362		-
Cash dividends paid		(289)		-		(377)		(431)		808		(289)
Other, net		(154)		-		-		1,362		153		1,361
Net cash (used in) provided by financing activities		684		-		(377)		856		1,323		2,486
Effect of exchange rate changes on cash and
restricted cash		-		-		-		58		-		58
Change in cash and restricted cash		12		-		(15)		(363)		-		(366)
Cash and restricted cash at beginning of year		8		-		20		2,709		-		2,737
Cash and restricted cash at end of period	$	20	$	-	$	5	$	2,346	$	-	$	2,371

Supplementary Disclosure of Condensed Consolidating Cash Flow Information

		American
		International		Validus					Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
March 31, 2019
Cash	$	2	$	1	$	3	$	2,559	$	-	$	2,565
Restricted cash included in Short-term investments		8		-		-		243		-		251
Restricted cash included in Other assets		1		-		-		362		-		363
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	11	$	1	$	3	$	3,164	$	-	$	3,179
Cash (paid) received during the 2019 period for:
Interest:
Third party	$	(225)	$	(11)	$	(23)	$	(56)	$	-	$	(315)
Intercompany		(1)		-		-		1		-		-
Taxes:
Income tax authorities	$	(4)	$	-	$	-	$	(46)	$	-	$	(50)
Intercompany		194		-		-		(194)		-		-
March 31, 2018
Cash	$	4	$	-	$	5	$	2,094	$	-	$	2,103
Restricted cash included in Short-term investments		15		-		-		32		-		47
Restricted cash included in Other assets		1		-		-		220		-		221
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	20	$	-	$	5	$	2,346	$	-	$	2,371
Cash (paid) received during the 2018 period for:
Interest:
Third party	$	(260)	$	-	$	-	$	(97)	$	-	$	(357)
Intercompany		-		-		-		-		-		-
Taxes:
Income tax authorities	$	(9)	$	-	$	-	$	(19)	$	-	$	(28)
Intercompany		403		-		-		(403)		-		-

Supplementary disclosure of non-cash activities

Three Months Ended March 31,
(in millions)		2019		2018
Intercompany non-cash financing and investing activities:
Capital contributions	$	-	$	2,339
Dividends received in the form of securities		486		60
Return of capital		-		2,706