TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE (Tables)

12 Months Ended

Dec. 31, 2011

TOTAL EQUITY AND EARNINGS (LOSS) PER SHARE

Rollforward of outstanding shares

		Preferred Stock
Year Ended December 31, 2011		AIG Series E			AIG Series F			AIG Series C			AIG Series G			Common Stock Issued		Treasury Stock			Outstanding Shares
Shares, beginning of year			400,000			300,000			100,000			-			147,124,067		(6,660,908	)		140,463,159
	Issuances		-			-			-			20,000			100,799,653		-			100,799,653
	Settlement of equity unit stock purchase contracts		-			-			-			-			3,606,417		-			3,606,417
	Shares exchanged		(400,000	)		(300,000	)		(100,000	)		-			1,655,037,962		(11,678	)		1,655,026,284
	Shares repurchased		-			-			-			-			-		(3,074,031	)		(3,074,031	)
	Shares cancelled		-			-			-			(20,000	)		-		-			-
Shares, end of year			-			-			-			-			1,906,568,099		(9,746,617	)		1,896,821,482

Consolidated balance sheet line items affected by the recapitalization

			Effect of Recapitalization
Increase (Decrease) (dollars in millions)			Repayment and Termination of FRBNY Credit Facility(a)			Repurchase and Exchange of SPV Preferred Interests			Exchange of Preferred Stock for Common Stock(c)			Total Effect of Recapitalization
Other assets			$	(24,297	)	$	(6,140	)(b)	$	-		$	(30,437	)
Other liabilities				(325	)		-			-			(325	)
Federal Reserve Bank of New York credit facility				(20,689	)		-			-			(20,689	)
Redeemable noncontrolling nonvoting, callable, junior preferred interests held by Department of Treasury				-			20,292			-			20,292
AIG shareholders' equity:
	Preferred stock
		Series C preferred stock		-			-			(23,000	)		(23,000	)
		Series E preferred stock		-			-			(41,605	)		(41,605	)
		Series F preferred stock		-			20,292			(7,378	)		(7,378	)
							(20,292	)
		Series G preferred stock; 20,000 shares issued; liquidation value $0(d)		-			-			-			-
	Common stock			-			-			4,138			4,138
	Additional paid-in capital			-			-			67,845			67,845
	Retained Earnings			(3,283	)		-			-			(3,283	)
Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York				-			(26,432	)		-			(26,432	)
Shares outstanding										1,655,037,962			1,655,037,962

(a)

Repayment and Termination of the FRBNY Credit Facility – Funds held in escrow and included in Other assets from the AIA IPO and the ALICO sale were used to repay the FRBNY Credit Facility. The adjustments to Other assets and Accumulated deficit reflects the write-off of the unamortized portion of the net prepaid commitment fee asset.

(b)

Repurchase and Exchange of SPV Preferred Interests – AIG used remaining net cash proceeds from the AIA IPO and the ALICO sale to pay down a portion of the liquidation preference on the SPV Preferred Interests held by the FRBNY and drew down approximately $20.3 billion under the Department of the Treasury Commitment (Series F) to repurchase the FRBNY's remaining SPV Preferred Interests, which AIG then transferred to the Department of the Treasury as part of the consideration for the exchange of the Series F Preferred Stock.

(c)

Exchange of AIG's Series C, E and F Preferred Stock for AIG Common Stock. The adjustments represent the exchange of Series C Preferred Stock, Series E Preferred Stock, and Series F Preferred Stock for AIG Common Stock. As a result of the Recapitalization, the Department of the Treasury acquired 1,655,037,962 shares of newly issued AIG Common Stock.

(d)

In connection with the May Common Stock Offering, the Series G Preferred Stock was cancelled.

Rollforward of preferred stock

(in millions)		AIG Series E			AIG Series F			AIG Series C			AIG Series D			Total Preferred Stock
Balance, January 1, 2009		$	-		$	-		$	-		$	40,000		$	40,000
	AIG Series C issuance		-			-			23,000			-			23,000
	AIG Series D exchange for AIG Series E		41,605			-			-			(40,000	)		1,605
	AIG Series F drawdown		-			5,344			-			-			5,344
	AIG Series F commitment fee		-			(165	)		-			-			(165	)
Balance, December 31, 2009		$	41,605		$	5,179		$	23,000		$	-		$	69,784
	AIG Series F drawdown		-			2,199			-			-			2,199
Balance, December 31, 2010		$	41,605		$	7,378		$	23,000		$	-		$	71,983
	Shares Exchanged		(41,605	)		(7,378	)		(23,000	)		-			(71,983	)
Balance, December 31, 2011		$	-		$	-		$	-		$	-		$	-

Accumulated Other Comprehensive Income (Loss)

(in millions)		Unrealized Appreciation (Depreciation) of Fixed Maturity Investments on Which Other-Than- Temporary Credit Impairments Were Taken			Unrealized Appreciation (Depreciation) of All Other Investments			Foreign Currency Translation Adjustments			Net Derivative Gains (Losses) Arising from Cash Flow Hedging Activities			Change in Retirement Plan Liabilities Adjustment			Total
Balance, January 1, 2009, net of tax		$	-		$	(4,452	)	$	(187	)	$	(191	)	$	(1,498	)	$	(6,328	)
Adjustment on April 1, 2009(a)			(599	)		599			-			-			-			-
	Change in unrealized appreciation of investments		2,392			30,829			-			-			-			33,221
	Change in deferred acquisition costs adjustment and other		(345	)		(3,545	)		-			-			-			(3,890	)
	Change in foreign currency translation adjustments		-			-			2,933			-			-			2,933
	Change in net derivative losses arising from cash flow hedging activities		-			-			-			95			-			95
	Net actuarial gain		-			-			-			-			197			197
	Prior service credit		-			-			-			-			(29	)		(29	)
	Change attributable to divestitures and deconsolidations		1			607			(1	)		-			202			809
	Deferred tax liability		(724	)		(9,802	)		(1,005	)		(32	)		(16	)		(11,579	)
Total other comprehensive income			1,324			18,089			1,927			63			354			21,757
	Cumulative effect of change in accounting principle, net of tax		(2,537	)		(6,811	)		-			-			-			(9,348	)
Noncontrolling interests			(2	)		280			110			-			-			388
Balance, December 31, 2009, net of tax		$	(1,810	)	$	7,145		$	1,630		$	(128	)	$	(1,144	)	$	5,693
	Change in unrealized appreciation of investments		2,645			7,265			-			-			-			9,910
	Change in deferred acquisition costs adjustment and other		(166	)		(780	)		-			-			-			(946	)
	Change in foreign currency translation adjustments		-			-			703			-			-			703
	Change in net derivative losses arising from cash flow hedging activities		-			-			-			105			-			105
	Net actuarial loss		-			-			-			-			(1	)		(1	)
	Prior service credit		-			-			-			-			10			10
	Change attributable to divestitures and deconsolidations		43			(2,845	)		(2,576	)		6			290			(5,082	)
	Deferred tax asset (liability)		(1,293	)		(1,529	)		621			(17	)		(24	)		(2,242	)
Total other comprehensive income (loss)			1,229			2,111			(1,252	)		94			275			2,457
	Cumulative effect of change in accounting principle, net of tax		(76	)		(269	)		-			-			-			(345	)
Noncontrolling interests			2			99			80			-			-			181
Balance, December 31, 2010, net of tax		$	(659	)	$	8,888		$	298		$	(34	)	$	(869	)	$	7,624
	Change in unrealized appreciation of investments		55			5,463			-			-			-			5,518
	Change in deferred acquisition costs adjustment and other(b)		11			(830	)		-			-			-			(819	)
	Change in future policy benefits(c)		-			(2,302	)		-			-			-			(2,302	)
	Change in foreign currency translation adjustments		-			-			8			-			-			8
	Change in net derivative losses arising from cash flow hedging activities		-			-			-			51			-			51
	Net actuarial loss		-			-			-			-			(752	)		(752	)
	Prior service credit		-			-			-			-			387			387
	Change attributable to divestitures and deconsolidations		23			(3,475	)		(1,906	)		-			260			(5,098	)
	Deferred tax asset (liability)		(163	)		(355	)		694			(34	)		35			177
Total other comprehensive income (loss)			(74	)		(1,499	)		(1,204	)		17			(70	)		(2,830	)
Acquisition of noncontrolling interest			-			45			66			-			(18	)		93
Noncontrolling interests			3			(160	)		36			-			-			(121	)
Balance, December 31, 2011, net of tax		$	(736	)	$	7,594		$	(876	)	$	(17	)	$	(957	)	$	5,008

(a)

Adjustment to reflect adoption of the other-than-temporary impairment accounting standard.

(b)

Includes the pre-tax adjustment to Accumulated other comprehensive income related to a $152 million reduction of deferred acquisition costs as a consequence of the recognition of additional policyholder benefit reserves disclosed below.

(c)

The adjustment to policyholder benefit reserves assumes that the unrealized appreciation on available for sale securities is actually realized and that the proceeds are reinvested at lower yields.

Rollforward of non-controlling interests

				Redeemable Noncontrolling interests
													Non-redeemable Noncontrolling interests
				Held by Department of Treasury
(in millions)							Other			Total			Held by FRBNY			Other			Total
Year Ended December 31, 2011
Balance, beginning of year				$	-		$	434		$	434		$	26,358		$	1,562		$	27,920
	Repurchase of SPV preferred interests in connection with Recapitalization				-			-			-			(26,432	)		-			(26,432	)
	Exchange of consideration for preferred stock in connection with Recapitalization				20,292			-			20,292			-			-			-
	Repayment to Department of the Treasury				(12,425	)		-			(12,425	)		-			-			-
	Net distributions				-			(21	)		(21	)		-			(8	)		(8	)
	Consolidation (deconsolidation)				-			(307	)		(307	)		-			(123	)		(123	)
	Acquisition of noncontrolling interest				-			-			-			-			(489	)		(489	)
	Comprehensive income:
		Net income (loss)			560			(8	)		552			74			82			156
		Accumulated other comprehensive loss, net of tax:
			Unrealized losses on investments		-			(2	)		(2	)		-			(155	)		(155	)
			Foreign currency translation adjustments		-			-			-			-			36			36
		Total accumulated other comprehensive loss, net of tax			-			(2	)		(2	)		-			(119	)		(119	)
	Total comprehensive income (loss)				560			(10	)		550			74			(37	)		37
Other					-			-			-			-			(50	)		(50	)
Balance, end of year				$	8,427		$	96		$	8,523		$	-		$	855		$	855
Year Ended December 31, 2010
Balance, beginning of year				$	-		$	959		$	959		$	24,540		$	3,712		$	28,252
	Net contributions				-			469			469			-			78			78
	Consolidation (deconsolidation)				-			265			265			-			(2,740	)		(2,740	)
	Comprehensive income:
		Net income			-			73			73			1,818			336			2,154
		Accumulated other comprehensive income, net of tax:
			Unrealized gains on investments		-			7			7			-			93			93
			Foreign currency translation adjustments		-			(2	)		(2	)		-			83			83
		Total accumulated other comprehensive income, net of tax			-			5			5			-			176			176
	Total comprehensive income				-			78			78			1,818			512			2,330
Deconsolidation of AIA					-			(1,337	)		(1,337	)		-			-			-
Other
Balance, end of year				$	-		$	434		$	434		$	26,358		$	1,562		$	27,920

Computation of basic and diluted EPS

Years Ended December 31, (dollars in millions, except per share data)			2011			2010			2009
Numerator for EPS:
	Income (loss) from continuing operations		$	16,971		$	12,077		$	(12,818	)
	Net income (loss) from continuing operations attributable to noncontrolling interests:
		Nonvoting, callable, junior and senior preferred interests		634			1,818			140
		Other		55			355			(1,576	)
	Total net income (loss) from continuing operations attributable to noncontrolling interests			689			2,173			(1,436	)
	Net income (loss) attributable to AIG from continuing operations			16,282			9,904			(11,382	)
	Income (loss) from discontinued operations		$	1,535		$	(2,064	)	$	505
	Net income from discontinued operations attributable to noncontrolling interests			19			54			72
	Net income (loss) attributable to AIG from discontinued operations			1,516			(2,118	)		433
	Cumulative dividends on AIG Series D Fixed Rate Cumulative Perpetual Preferred Stock, par value $5.00 per share			-			-			(1,204	)
	Deemed dividend to AIG Series D Preferred Stock exchanged for the Series E Preferred Stock			-			-			(91	)
	Deemed dividends to AIG Series E and F Preferred Stock			(812	)		-			-
	(Income) loss allocated to the Series C Preferred Stock – continuing operations			-			(7,890	)		-
Net income (loss) attributable to AIG common shareholders from continuing operations, applicable to common stock for EPS				15,470			2,014			(12,677	)
	(Income) loss allocated to the Series C Preferred Stock – discontinued operations			-			1,687			-
Net income (loss) attributable to AIG common shareholders from discontinued operations, applicable to common stock for EPS			$	1,516		$	(431	)	$	433
Denominator for EPS:
	Weighted average shares outstanding – basic			1,799,385,757			136,585,844			135,324,896
	Dilutive shares			72,740			63,436			-
	Weighted average shares outstanding – diluted*			1,799,458,497			136,649,280			135,324,896
EPS attributable to AIG common shareholders:
Basic:
	Income (loss) from continuing operations		$	8.60		$	14.75		$	(93.69	)
	Income (loss) from discontinued operations		$	0.84		$	(3.15	)	$	3.21
Diluted:
	Income (loss) from continuing operations		$	8.60		$	14.75		$	(93.69	)
	Income (loss) from discontinued operations		$	0.84		$	(3.15	)	$	3.21

*

Dilutive shares are calculated using the treasury stock method and include dilutive shares from share-based employee compensation plans, and the warrants issued to the Department of the Treasury in 2009, and warrants issued to the shareholders in January 2011. The number of shares excluded from diluted shares outstanding were 76 million, 11 million and 12 million for the years ended December 31, 2011, 2010 and 2009, respectively, because the effect would have been anti-dilutive.