SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of amounts previously reported, effect of change due to retrospective adoption of standard and the adjusted amounts reflected in consolidated financial statements

December 31, 2011 (in millions)	As Previously Reported		Effect of Change			As Currently Reported
Balance Sheet:
Current and deferred income taxes	$	16,084	$	1,718		$	17,802
Deferred policy acquisition costs		14,026		(5,089	)		8,937
Other assets		12,824		(42	)		12,782
Total assets		555,773		(3,413	)		552,360
Retained earnings		14,332		(3,558	)		10,774
Accumulated other comprehensive income		5,008		145			5,153
Total AIG shareholders' equity		104,951		(3,413	)		101,538

Three Months Ended March 31, 2011 (dollars in millions, except per share data)	As Previously Reported			Effect of Change			As Currently Reported
Statement of Operations:
Total net realized capital losses	$	(651	)	$	3		$	(648	)
Total revenues		17,436			3			17,439
Interest credited to policyholder account balances		1,105			1			1,106
Amortization of deferred acquisition costs		1,716			(485	)		1,231
Other acquisition and other insurance expenses		1,551			417			1,968
Total benefits, claims and expenses		18,816			(67	)		18,749
Income (loss) from continuing operations before income tax benefit		(1,380	)		70			(1,310	)
Income tax benefit(a)		(200	)		(26	)		(226	)
Income (loss) from continuing operations		(1,180	)		96			(1,084	)
Income (loss) from discontinued operations, net of income tax expense(b)		1,653			932			2,585
Net income		473			1,028			1,501
Net income attributable to AIG		269			1,028			1,297
Net income (loss) attributable to AIG common shareholders		(543	)		1,028			485
Income (loss) per share attributable to AIG common shareholders:
Basic:
Income (loss) from continuing operations	$	(1.41	)	$	0.07		$	(1.34	)
Income from discontinued operations	$	1.06		$	0.59		$	1.65
Diluted
Income (loss) from continuing operations	$	(1.41	)	$	0.07		$	(1.34	)
Income from discontinued operations	$	1.06		$	0.59		$	1.65

(a)

Includes a change in the deferred tax asset valuation allowance for the period.

(b)

Represents the effect on the gain on sale of AIG Star Life Insurance Co. Ltd. (AIG Star) and AIG Edison Life Insurance Company (AIG Edison), which were sold in the first quarter of 2011.

    Adoption of the standard did not affect the previously reported totals for net cash flows provided by (used in) operating, investing, or financing activities, but did affect the following components of net cash flows provided by (used in) operating activities.

Three Months Ended March 31, 2011 (in millions)	As Previously Reported			Effect of Change			As Currently Reported
Cash flows from operating activities:
Net income	$	473		$	1,028		$	1,501
Income from discontinued operations		(1,653	)		(932	)		(2,585	)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Noncash revenues, expenses, gains and losses included in income (loss):
Unrealized gains in earnings – net		(2,136	)		(3	)		(2,139	)
Depreciation and other amortization		2,336			(484	)		1,852
Changes in operating assets and liabilities:
Capitalization of deferred policy acquisition costs		(1,754	)		417			(1,337	)
Current and deferred income taxes – net		(585	)		(26	)		(611	)
Total adjustments		(5,362	)		(96	)		(5,458	)