Exhibit 12

COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES

Years Ended December 31,		2004			2003			2002			2001			2000
(in millions, except ratios)					(Restated)			(Restated)			(Restated)			(Restated)
Income before income taxes, minority interest and cumulative effect of accounting changes		$	14,950		$	11,655		$	7,982		$	5,914		$	9,175
Less – Equity income of less than 50% owned persons			159			146			131			14			8
Add – Dividends from less than 50% owned persons			21			12			12			2			2
			14,812			11,521			7,863			5,902			9,169
Add – Fixed charges			6,475			5,938			5,410			5,819			5,292
Less – Capitalized interest			59			52			61			71			69
Income before income taxes, minority interest, cumulative effect of accounting changes and fixed charges		$	21,228		$	17,407		$	13,212		$	11,650		$	14,392
Fixed charges:
	Interest costs	$	6,286		$	5,764		$	5,242		$	5,662		$	5,155
	Rental expense*		189			174			168			157			137
Total fixed charges		$	6,475		$	5,938		$	5,410		$	5,819		$	5,292
Ratio of earnings to fixed charges			3.28			2.93			2.44			2.00			2.72
Secondary Ratio
Interest credited to GIC and GIA policy and contract holders		$	(4,100	)	$	(3,754	)	$	(3,219	)	$	(3,320	)	$	(2,782	)
Total fixed charges excluding interest credited to GIC and GIA policy and contract holders		$	2,375		$	2,184		$	2,191		$	2,499		$	2,510
Secondary ratio of earnings to fixed charges			7.21			6.25			4.56			3.33			4.62

* The proportion deemed representative of the interest factor.

The secondary ratio is disclosed for the convenience of fixed income investors and the rating agencies that serve them and is more comparable to the ratios disclosed by all issuers of fixed income securities. The secondary ratio removes interest credited to guaranteed investment contract (GIC) policyholders and guaranteed investment agreement (GIA) contractholders. Such expenses are also removed from earnings used in this calculation. GICs and GIAs are entered into by AIG’s insurance subsidiaries, principally Sun America Life Insurance Company and AIG Financial Products Corp. and its subsidiaries, respectively. The proceeds from GICs and GIAs are invested in a diversified portfolio of securities, primarily investment grade bonds. The assets acquired yield rates greater than the rates on the related policyholders obligation or contract, with the intent of earning a profit from the spread.

FORM 10-K :  219