


Years Ended December 31, (in millions, except ratios)	2012		2011		2010		2009			2008

Earnings:
Pre-tax income^(a):	$	7,151	$	78	$	20,246	$	(15,709	)	$	(104,323	)
Add – Fixed charges		3,166		3,217		7,535		14,403			17,688

Adjusted Pre-tax income		10,317		3,295		27,781		(1,306	)		(86,635	)

Fixed charges:
Interest expense	$	2,054	$	2,149	$	6,333	$	12,943		$	15,113
Portion of rent expense representing interest		148		161		196		244			299
Interest credited to policy and contract holders		964		907		1,006		1,216			2,276

Total fixed charges	$	3,166	$	3,217	$	7,535	$	14,403		$	17,688

Preferred stock dividend requirements	$	–	$	–	$	–	$	1,204		$	400
Total fixed charges and preferred stock dividend requirements	$	3,166	$	3,217	$	7,535	$	15,607		$	18,088
Total fixed charges, excluding interest credited to policy and contract holders	$	2,202	$	2,310	$	6,529	$	13,187		$	15,412

Ratio of earnings to fixed charges:
Ratio		3.26		1.02		3.69		n/a			n/a
Coverage deficiency		n/a		n/a		n/a	$	(15,709	)	$	(104,323	)

Ratio of earnings to fixed charges and preferred stock dividends:
Ratio		3.26		1.02		3.69		n/a			n/a
Coverage deficiency		n/a		n/a		n/a		(16,913	)		(104,723	)

Ratio of earnings to fixed charges, excluding interest credited to policy and contract holders^(b):
Ratio		4.69		1.43		4.26		n/a			n/a
Coverage deficiency		n/a		n/a		n/a	$	(14,493	)	$	(102,047	)

(a) From continuing operations, excluding undistributed earnings (loss) from equity method investments and capitalized interest.

(b) The Ratio of earnings to fixed charges excluding interest credited to policy and contract holders removes interest credited to guaranteed investment contract (GIC) policyholders and guaranteed investment agreement (GIA) contract holders. Such interest expenses are also removed from earnings used in this calculation. GICs and GIAs are entered into by AIG's subsidiaries. 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.