DEFERRED POLICY ACQUISITION COSTS (Tables)

12 Months Ended

Dec. 31, 2011

DEFERRED POLICY ACQUISITION COSTS

Rollforward of deferred policy acquisition costs

Years Ended December 31, (in millions)		2011			2010			2009
Chartis:
	Balance, beginning of year	$	4,973		$	4,759		$	4,959
	Dispositions(a)		-			-			(418	)
	Acquisition costs deferred		6,575			6,849			6,490
	Amortization expense		(6,455	)		(6,728	)		(6,663	)
	Increase due to foreign exchange and other		261			93			391
	Balance, end of year	$	5,354		$	4,973		$	4,759
SunAmerica:
	Balance, beginning of year	$	9,606		$	11,098		$	14,447
	Dispositions(b)		-			-			(479	)
	Acquisition costs deferred		1,194			990			1,014
	Amortization expense		(1,535	)		(1,368	)		(1,553	)
	Change in net unrealized losses on securities(c)		(674	)		(1,111	)		(960	)
	Increase (decrease) due to foreign exchange		2			1			(10	)
	Other(d)		-			(4	)		(1,361	)
Balance, end of year(e)		$	8,593		$	9,606		$	11,098
Other operations:
	Balance, beginning of year	$	47		$	24,908		$	26,321
	Dispositions(b)		-			(22,244	)		-
	Acquisition costs deferred		27			1,496			1,545
	Amortization expense		(29	)		(1,038	)		(1,226	)
	Change in net unrealized gains (losses) on securities(c)		-			34			(44	)
	Increase due to foreign exchange		1			377			826
	Activity of discontinued operations		-			220			868
	Reclassified to Assets held for sale		-			(3,521	)		(3,322	)
	Other(d)		(2	)		(185	)		(60	)
Subtotal		$	44		$	47		$	24,908
Consolidation and eliminations			35			42			49
Balance, end of year(e)		$	79		$	89		$	24,957
Total deferred policy acquisition costs		$	14,026		$	14,668		$	40,814

(a)

In 2009, Transatlantic was deconsolidated and 21st Century and HSB were sold.

(b)

For 2010, includes AIG Star and AIG Edison, which were sold in February 2011, AIA which was deconsolidated and ALICO which was sold in 2010 and AIG Life Canada, which was sold in 2009.

(c)

In 2009, includes an increase of $1.3 billion and $2 million related to the cumulative effect of adopting a new other-than-temporary impairments accounting standard for SunAmerica and Divested businesses, respectively.

(d)

In 2009, includes a decrease of $1.3 billion and $2 million related to the cumulative effect of adopting a new other-than-temporary impairments accounting standard for SunAmerica and Divested businesses, respectively.

(e)

Includes $(646) million, $(1.0) billion, and $86 million for SunAmerica at December 31, 2011, 2010 and 2009, respectively, and $(34) million for Divested businesses at 2010 related to the effect of net unrealized gains and losses on available for sale securities. For the year ended December 31, 2010, there were no net unrealized gains and losses on available for sale securities associated with divested businesses.