INFORMATION PROVIDED IN CONNECTION WITH OUTSTANDING DEBT (Tables)

9 Months Ended

Sep. 30, 2019

INFORMATION PROVIDED IN CONNECTION WITH OUTSTADING DEBT

Condensed Consolidating Balance Sheets

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and	Consolidated
(in millions)	(As Guarantor)			Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
September 30, 2019
Assets:
Short-term investments(a)	$	3,229	$	2	$	-	$	13,374	$	(2,492)	$	14,113
Other investments(b)		4,505		-		-		322,375		-		326,880
Total investments		7,734		2		-		335,749		(2,492)		340,993
Cash		3		20		1		3,337		-		3,361
Loans to subsidiaries(c)		35,142		-		-		752		(35,894)		-
Investment in consolidated subsidiaries(c)		40,115		3,814		33,315		-		(77,244)		-
Other assets, including deferred income taxes(d)		15,583		1,792		18		165,222		(1,847)		180,768
Total assets	$	98,577	$	5,628	$	33,334	$	505,060	$	(117,477)	$	525,122
Liabilities:
Insurance liabilities	$	-	$	-	$	-	$	305,993	$	-	$	305,993
Long-term debt		21,905		355		643		12,359		-		35,262
Other liabilities, including intercompany balances(b)		10,321		8		23		110,413		(4,343)		116,422
Loans from subsidiaries(c)		748		-		-		35,142		(35,890)		-
Total liabilities		32,974		363		666		463,907		(40,233)		457,677
Total AIG shareholders’ equity		65,603		5,265		32,668		39,311		(77,244)		65,603
Non-redeemable noncontrolling interests		-		-		-		1,842		-		1,842
Total equity		65,603		5,265		32,668		41,153		(77,244)		67,445
Total liabilities and equity	$	98,577	$	5,628	$	33,334	$	505,060	$	(117,477)	$	525,122
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 September 30, 2019, includes restricted cash of $1 million and $63 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 September 30, 2019, includes restricted cash of $1 million and $344 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 September 30, 2019
Revenues:
Equity in earnings of consolidated subsidiaries*	$	998	$	28	$	1,011	$	-	$	(2,037)	$	-
Other income		279		4		-		12,710		(79)		12,914
Total revenues		1,277		32		1,011		12,710		(2,116)		12,914
Expenses:
Interest expense		245		13		12		81		(3)		348
(Gain) loss on extinguishment of debt		-		(9)		-		9		-		-
Other expenses		188		7		1		11,185		(75)		11,306
Total expenses		433		11		13		11,275		(78)		11,654
Income (loss) from continuing operations before income
tax expense (benefit)		844		21		998		1,435		(2,038)		1,260
Income tax expense (benefit)		187		-		(2)		102		-		287
Income (loss) from continuing operations		657		21		1,000		1,333		(2,038)		973
Income (loss) from discontinued operations,
net of income taxes		(1)		-		-		1		-		-
Net income (loss)		656		21		1,000		1,334		(2,038)		973
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		317		-		317
Net income (loss) attributable to AIG	$	656	$	21	$	1,000	$	1,017	$	(2,038)	$	656
Three Months Ended September 30, 2018
Revenues:
Equity in earnings of consolidated subsidiaries*	$	(989)	$	(93)	$	1,316	$	-	$	(234)	$	-
Other income		183		23		1		11,412		(133)		11,486
Total revenues		(806)		(70)		1,317		11,412		(367)		11,486
Expenses:
Interest expense		244		10		12		63		(3)		326
Loss on extinguishment of debt		-		-		-		1		-		1
Other expenses		132		2		1		12,513		38		12,686
Total expenses		376		12		13		12,577		35		13,013
Income (loss) from continuing operations before income
tax expense (benefit)		(1,182)		(82)		1,304		(1,165)		(402)		(1,527)
Income tax expense (benefit)		38		-		(2)		(343)		-		(307)
Income (loss) from continuing operations		(1,220)		(82)		1,306		(822)		(402)		(1,220)
Loss from discontinued operations,
net of income taxes		(39)		-		-		-		-		(39)
Net income (loss)		(1,259)		(82)		1,306		(822)		(402)		(1,259)
Less:
Net income (loss) from continuing operations
attributable to noncontrolling interests		-		-		-		-		-		-
Net income (loss) attributable to AIG	$	(1,259)	$	(82)	$	1,306	$	(822)	$	(402)	$	(1,259)

		American
		International		Validus						Reclassifications
		Group, Inc.		Holdings,				Other		and		Consolidated
(in millions)		(As Guarantor)		Ltd.		AIGLH		Subsidiaries		Eliminations		AIG
Nine Months Ended September 30, 2019
Revenues:
Equity in earnings of consolidated subsidiaries*	$	2,873	$	344	$	2,989	$	-	$	(6,206)	$	-
Other income		843		9		-		37,234		(155)		37,931
Total revenues		3,716		353		2,989		37,234		(6,361)		37,931
Expenses:
Interest expense		741		13		37		277		(11)		1,057
Loss on extinguishment of debt		-		-		-		13		-		13
Other expenses		556		12		2		32,183		(143)		32,610
Total expenses		1,297		25		39		32,473		(154)		33,680
Income (loss) from continuing operations before income
tax expense (benefit)		2,419		328		2,950		4,761		(6,207)		4,251
Income tax expense (benefit)		(2)		-		(4)		956		-		950
Income (loss) from continuing operations		2,421		328		2,954		3,805		(6,207)		3,301
Income (loss) from discontinued operations,
net of income taxes		(2)		-		-		1		-		(1)
Net income (loss)		2,419		328		2,954		3,806		(6,207)		3,300
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		881		-		881
Net income (loss) attributable to AIG	$	2,419	$	328	$	2,954	$	2,925	$	(6,207)	$	2,419
Nine Months Ended September 30, 2018
Revenues:
Equity in earnings of consolidated subsidiaries*	$	889	$	(93)	$	2,497	$	-	$	(3,293)	$	-
Other income		750		23		1		34,103		(48)		34,829
Total revenues		1,639		(70)		2,498		34,103		(3,341)		34,829
Expenses:
Interest expense		710		10		37		154		(9)		902
Loss on extinguishment of debt		-		-		-		10		-		10
Other expenses		643		2		2		32,357		(39)		32,965
Total expenses		1,353		12		39		32,521		(48)		33,877
Income (loss) from continuing operations before income
tax expense (benefit)		286		(82)		2,459		1,582		(3,293)		952
Income tax expense (benefit)		(370)		-		-		661		-		291
Income (loss) from continuing operations		656		(82)		2,459		921		(3,293)		661
Loss from discontinued operations,
net of income taxes		(40)		-		-		-		-		(40)
Net income (loss)		616		(82)		2,459		921		(3,293)		621
Less:
Net income from continuing operations
attributable to noncontrolling interests		-		-		-		5		-		5
Net income (loss) attributable to AIG	$	616	$	(82)	$	2,459	$	916	$	(3,293)	$	616

*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 September 30, 2019
Net income (loss)	$	656	$	21	$	1,000		$	1,334		$	(2,038)	$	973
Other comprehensive income (loss)		624		-		303			(1,436)			1,137		628
Comprehensive income (loss)		1,280		21		1,303			(102)			(901)		1,601
Total comprehensive income attributable to
noncontrolling interests		-		-		-			321			-		321
Comprehensive income (loss) attributable to AIG	$	1,280	$	21	$	1,303		$	(423)		$	(901)	$	1,280
Three Months Ended September 30, 2018
Net income (loss)	$	(1,259)	$	(82)	$	1,306		$	(822)		$	(402)	$	(1,259)
Other comprehensive income (loss)		(766)		-		(301)			(2,229)	(a)		2,530	(a)	(766)
Comprehensive income (loss)		(2,025)		(82)		1,005			(3,051)			2,128		(2,025)
Total comprehensive income attributable to
noncontrolling interests		-		-		-			-			-		-
Comprehensive income (loss) attributable to AIG	$	(2,025)	$	(82)	$	1,005		$	(3,051)		$	2,128	$	(2,025)
Nine Months Ended September 30, 2019
Net income (loss)	$	2,419	$	328	$	2,954		$	3,806		$	(6,207)	$	3,300
Other comprehensive income (loss)		7,028		1		5,521			3,593			(9,095)		7,048
Comprehensive income (loss)		9,447		329		8,475			7,399			(15,302)		10,348
Total comprehensive income attributable to
noncontrolling interests		-		-		-			901			-		901
Comprehensive income (loss) attributable to AIG	$	9,447	$	329	$	8,475		$	6,498		$	(15,302)	$	9,447
Nine Months Ended September 30, 2018
Net income (loss)	$	616	$	(82)	$	2,459		$	921		$	(3,293)	$	621
Other comprehensive income (loss)		(5,425)		-		(3,766)	(a)		(6,650)	(a)		10,416	(a)	(5,425)
Comprehensive income (loss)		(4,809)		(82)		(1,307)			(5,729)			7,123		(4,804)
Total comprehensive income attributable to
noncontrolling interests		-		-		-			5			-		5
Comprehensive income (loss) attributable to AIG	$	(4,809)	$	(82)	$	(1,307)		$	(5,734)		$	7,123	$	(4,809)

(a)The Other comprehensive income (loss) amounts for Other Subsidiaries and Reclassifications and Eliminations in the three months ended September 30, 2018, have been revised from $(1.4) billion to $(2.2) billion and from $1.7 billion to $2.5 billion, respectively, to correct Comprehensive income (loss) in the three months ended September 30, 2018. The Other comprehensive income (loss) amounts for AIGLH, Other Subsidiaries and Reclassifications and Eliminations in the nine months ended September 30, 2018, have been revised from $3.1 billion to $(3.8) billion, from $12.6 billion to $(6.7) billion and from $(15.7) billion to $10.4 billion, respectively, to correct Comprehensive income (loss) in the nine months ended September 30, 2018. These corrections in the three-and nine-month periods ended September 30, 2018 have no impact on AIG’s consolidated financial statements and is not considered material to previously issued financial statements.

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
Nine Months Ended September 30, 2019
Net cash (used in) provided by operating activities	$	2,755	$	101	$	1,462	$	(1,068)	$	(4,039)	$	(789)
Cash flows from investing activities:
Sales of investments		2,090		-		-		46,921		(540)		48,471
Sales of divested businesses, net		-		-		-		2		-		2
Purchase of investments		(2,395)		-		-		(49,654)		540		(51,509)
Loans to subsidiaries - net		534		-		-		(127)		(407)		-
Contributions from (to) subsidiaries - net		(239)		-		-		-		239		-
Net change in short-term investments		(2,242)		-		-		(2,344)		-		(4,586)
Other, net		87		-		-		2,742		-		2,829
Net cash (used in) investing activities		(2,165)		-		-		(2,460)		(168)		(4,793)
Cash flows from financing activities:
Issuance of long-term debt		595		-		-		1,969		-		2,564
Repayments of long-term debt		(1,006)		-		-		(1,415)		-		(2,421)
Issuance of preferred stock		485		-		-		-		-		485
Purchase of common stock		-		-		-		-		-		-
Intercompany loans - net		127		-		-		(534)		407		-
Cash dividends paid on preferred stock		(15)		-		-		-		-		(15)
Cash dividends paid on common stock		(835)		(90)		(1,470)		(2,479)		4,039		(835)
Other, net		(63)		-		-		6,479		(239)		6,177
Net cash (used in) provided by financing activities		(712)		(90)		(1,470)		4,020		4,207		5,955
Effect of exchange rate changes on cash and
restricted cash		-		-		-		39		-		39
Change in cash and restricted cash		(122)		11		(8)		531		-		412
Cash and restricted cash at beginning of year		127		9		9		3,213		-		3,358
Cash and restricted cash at end of period	$	5	$	20	$	1	$	3,744	$	-	$	3,770
Nine Months Ended September 30, 2018
Net cash (used in) provided by operating activities	$	1,389	$	(40)	$	2,003	$	(433)	$	(2,957)	$	(38)
Cash flows from investing activities:
Sales of investments		4,641		-		-		45,218		(3,326)		46,533
Sales of divested businesses, net		-		-		-		10		-		10
Purchase of investments		(1,680)		-		-		(45,574)		3,326		(43,928)
Loans to subsidiaries - net		878		-		-		(50)		(828)		-
Contributions from (to) subsidiaries - net		22		-		-		-		(22)		-
Acquisition of businesses, net of cash and
restricted cash acquired		(5,475)		112		-		311		-		(5,052)
Net change in short-term investments		1,267		-		-		1,144		-		2,411
Other, net		(55)		-		-		(836)		-		(891)
Net cash (used in) provided by investing activities		(402)		112		-		223		(850)		(917)
Cash flows from financing activities:
Issuance of long-term debt		2,470		-		-		1,589		-		4,059
Repayments of long-term debt		(1,493)		-		-		(1,295)		-		(2,788)
Purchase of common stock		(994)		-		-		-		-		(994)
Intercompany loans - net		50		-		-		(878)		828		-
Cash dividends paid on common stock		(858)		(6)		(2,020)		(931)		2,957		(858)
Other, net		(165)		-		-		2,057		22		1,914
Net cash (used in) provided by financing activities		(990)		(6)		(2,020)		542		3,807		1,333
Effect of exchange rate changes on cash and
restricted cash		-		-		-		8		-		8
Change in cash and restricted cash		(3)		66		(17)		340		-		386
Cash and restricted cash at beginning of year		8		-		20		2,709		-		2,737
Cash and restricted cash at end of period	$	5	$	66	$	3	$	3,049	$	-	$	3,123

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
September 30, 2019
Cash	$	3	$	20	$	1	$	3,337	$	-	$	3,361
Restricted cash included in Short-term investments		1		-		-		63		-		64
Restricted cash included in Other assets		1		-		-		344		-		345
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	5	$	20	$	1	$	3,744	$	-	$	3,770
Cash (paid) received during the 2019 period for:
Interest:
Third party	$	(735)	$	(22)	$	(48)	$	(207)	$	-	$	(1,012)
Intercompany		(2)		31		-		(29)		-		-
Taxes:
Income tax authorities	$	(12)	$	-	$	-	$	(181)	$	-	$	(193)
Intercompany		1,035		2		-		(1,037)		-		-
September 30, 2018
Cash	$	3	$	66	$	3	$	2,669	$	-	$	2,741
Restricted cash included in Short-term investments		1		-		-		27		-		28
Restricted cash included in Other assets		1		-		-		353		-		354
Total cash and restricted cash shown in the Condensed
Consolidating Statements of Cash Flows	$	5	$	66	$	3	$	3,049	$	-	$	3,123
Cash (paid) received during the 2018 period for:
Interest:
Third party	$	(706)	$	14	$	(47)	$	(279)	$	-	$	(1,018)
Intercompany		(1)		-		(1)		2		-		-
Taxes:
Income tax authorities	$	(23)	$	-	$	-	$	(44)	$	-	$	(67)
Intercompany		1,084		-		-		(1,084)		-		-

Supplementary disclosure of non-cash activities

Nine Months Ended September 30,
(in millions)		2019		2018
Intercompany non-cash financing and investing activities:
Capital contributions	$	15	$	2,339
Dividends received in the form of securities		659		745
Return of capital		15		2,706