8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 8, 2014

AMERICAN INTERNATIONAL GROUP, INC.

(Exact name of registrant as specified in its charter)

Delaware	1-8787	13-2592361
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

175 Water Street

New York, New York 10038

(Address of principal executive offices)

Registrant’s telephone number, including area code: (212) 770-7000

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 7 — Regulation FD

Item 7.01. Regulation FD Disclosure.

American International Group, Inc. (the “Company”) is furnishing the Investor Presentation, dated August 8, 2014, attached as Exhibit 99.1 to this Current Report on Form 8-K (the “Investor Presentation”), which the Company may use from time to time in presentations to investors and other stakeholders. The Investor Presentation will also be available on the Company’s website at www.aig.com.

Section 9 — Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1 Investor Presentation dated August 8, 2014 (furnished and not filed for purposes of Item 7.01).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AMERICAN INTERNATIONAL GROUP, INC.

(Registrant)

Date: August 8, 2014	By:	/s/ James J. Killerlane III
		Name:	James J. Killerlane III
		Title:	Associate General Counsel and Assistant Secretary

EXHIBIT INDEX

Exhibit No.	Description
99.1	Investor Presentation dated August 8, 2014 (furnished and not filed for purposes of Item 7.01).

EX-99.1

American International Group, Inc.

Investor Presentation

Second Quarter 2014

August 8, 2014

Exhibit 99.1

2

Cautionary Statement Regarding Forward-Looking Information

This document and the remarks made within this presentation may include, and officers and representatives of American International

Group, Inc. (AIG) may from time to time make, projections, goals, assumptions and statements that may constitute “forward-looking

statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These projections, goals, assumptions and

statements are not historical facts but instead represent only AIG’s belief regarding future events, many of which, by their nature, are

inherently uncertain and outside AIG’s control.  These projections, goals, assumptions and statements include statements preceded by,

followed by or including words such as “believe,” “anticipate,” “expect,” “intend,” “plan,” “view,” “target” or “estimate”. It is possible that AIG’s

actual results and financial condition will differ, possibly materially, from the results and financial condition indicated in these projections,

goals, assumptions and statements. Factors that could cause AIG’s actual results to differ, possibly materially, from those in the specific

projections, goals, assumptions and statements include: changes in market conditions; the occurrence of catastrophic events, both natural

and man-made; significant legal proceedings; the timing and applicable requirements of any new regulatory framework to which AIG is

subject as a nonbank systemically important financial institution and as a global systemically important insurer; concentrations in AIG’s

investment portfolios; actions by credit rating agencies; judgments concerning casualty insurance underwriting and insurance liabilities;

judgments concerning the recognition of deferred tax assets; and such other factors discussed in Part I, Item 2. Management’s Discussion

and Analysis of Financial Condition and Results of Operations (MD&A) in AIG’s Quarterly Report on Form 10-Q for the quarterly period

ended June 30, 2014, in Part I, Item 2. MD&A in AIG’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014 and

in Part I, Item 1A. Risk Factors and Part II, Item 7. MD&A in AIG’s Annual Report on Form 10-K for the fiscal year ended December 31, 

2013.

AIG is not under any obligation (and expressly disclaims any obligation) to update or alter any projections, goals, assumptions or other

statements, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise.

This document and the remarks made orally may also contain certain non-GAAP financial measures. The reconciliation of such measures

to the most comparable GAAP measures in accordance with Regulation G is included in the Second Quarter 2014 Financial Supplement 

available in the Investor Information section of AIG's corporate website, www.aig.com, as well as in this presentation. 

IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that (i) any U.S. tax advice

contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of

avoiding penalties under the Internal Revenue Code; (ii) any such tax advice is written in connection with the promotion or marketing of the

matters addressed; and (iii) if you are not the original addressee of this communication, you should seek advice based on your particular 

circumstances from an independent advisor.

Note: Information included in the presentation is as of August 8, 2014, unless otherwise indicated. 

3

AIG Consolidated Financial Highlights

Full Year

Six

Months

($ in millions, except per share amounts)

2011

2012

2013

2014

Revenues

$65,105

$71,021

$68,678

$32,217

Net income attributable to AIG

20,622

3,438

9,085

4,682

Diluted earnings per common share

$11.01

$2.04

$6.13

$3.19

ROE, Ex. AOCI

(2)

26.6%

3.7%

10.1%

9.8%

After-tax operating income attributable to AIG

$2,086

$6,635

$6,762

$3,614

After-tax operating income attributable to AIG per common share

$1.16

$3.93

$4.56

$2.46

ROE –

After-tax operating income, excluding AOCI & DTA

(3)

2.8%

9.1%

9.4%

9.3%

ROE –

After-tax operating income, excluding AOCI

(4)

2.7%

7.2%

7.5%

7.6%

Period-end:

Book value per common share

$53.53

$66.38

$68.62

$75.71

Book

value

per

common

share

-

excluding

AOCI

$50.11

$57.87

$64.28

$67.65

1)

Includes

deferred

tax

asset

valuation

allowance

release

of

$18.3

billion

in

2011.

2)

Computed as Actual or Annualized Net income (loss) attributable to AIG divided by Average AIG Shareholders' equity, excluding AOCI.

3)

Computed as Actual or Annualized After-tax operating income divided by Average AIG Shareholders' equity, excluding AOCI and tax attribute DTA.

4)

Computed as Actual or Annualized After-tax operating income divided by Average AIG Shareholders' equity, excluding AOCI.

(1)

4

Core

Insurance

Businesses

Strategies

Key Accomplishments

AIG Property

Casualty

Grow high value lines and optimize business mix

Year-to-date NPW growth across all Commercial

lines, ex. Casualty. YTD Consumer NPW growth

of 3%, excluding FX.

Execute on technical

underwriting, improved claims

management, and analytics

Year-to-date accident year loss ratio, as

adjusted, improvement since the beg. of 2011;

Capitalize on global footprint; Focus on targeted growth in

key markets

13% of year-to-date NPW from growth

economies

(1)

AIG Life and

Retirement

Maintain balanced portfolio of products and leverage scale

advantage

Diversified sources of net flows and earnings

Optimize spread management through new business pricing

and active crediting rate management

Profitability enhanced through ongoing spread

management actions

Expand distribution network and increase penetration of

multiple products through each distribution partner

Mortgage

Guaranty

Underwrite based on multivariate model to achieve higher

risk adjusted returns

Earnings reflect new business; 67% of net

premiums earned in 2Q14 were from business

written after 2008

Actively manage legacy book

Delinquency ratio declined 50 bps from 1Q14 to

4.8% at 2Q14

AIG –

An Established Global Insurance Franchise

A platform for delivering sustainable profitable growth.

1)

Growth economies are those within Central Europe, Middle East, Africa, Latin America and Asia Pacific, excluding Japan.

–

Commercial improved 8.4 pts

–

Consumer improved 2.3 pts

Approximately $0.8 bn –

$1.4 bn in quarterly pre-

tax operating income since 4Q11

5

AIG –

Building on Capital Strength

AIG

Property

Casualty

$48.8 bn

AIG Life and

Retirement

$41.0 bn

Other

$15.9 bn

(2)

Mortgage

Guaranty

$2.5 bn

AIG Shareholders’

Equity -

$108.2 bn at June 30, 2014

Active Capital Management

Approximately $1.9 billion of shares repurchased

YTD; remaining share repurchase authorization of

$1.5 billion

In July 2014 repurchased in tender offers, for an

aggregate purchase price of $2.5 billion, certain

high coupon hybrid and senior notes issued or

guaranteed by AIG Parent

In July 2014 issued $1 billion of 2.300% Notes due

2019 and $1.5 billion of 4.500% Notes due 2044

Deployed over $24 billion through share

repurchases, dividends and liability management

(non-DIB) between May 2011 and July 2014

Reduced DIB debt by approx. $5 billion YTD

through July 2014 using cash allocated to the DIB

Robust Statutory Capital

2013 RBC ratios

(1)

:

AIG PC U.S.: 416% (ACL)

AIG L&R: 568% (CAL)

2013 total adjusted statutory capital

(1)

:

AIG PC U.S.: $22.0 billion

AIG L&R: $22.6 billion

Growth in BVPS

June 30, 2014 BVPS (ex. AOCI) of

$67.65 –

up

10% from 6/30/2013

Strong Liquidity

& Cash Flows

YTD insurance company cash distributions and

loan repayments of $3.2 billion –

Expected $5 -

6

billion for 2014

YTD tax sharing payments from insurance

businesses of $781 million

$14.1 billion of total AIG Parent liquidity

Monetization of

Deferred Tax Assets

U.S. tax attribute DTA of $17.8 billion at 12/31/13

Net DTA of $21.2 billion at 12/31/13

Note: Data as of June 30, 2014 unless otherwise noted.

1)

2)

The inclusion of RBC measures and total adjusted statutory capital is intended solely for the information of investors and is not intended for the purpose of ranking any

insurance company or for use in connection with any marketing, advertising or promotional activities. ACL is defined as Authorized Control Level and CAL is defined as

Company Action Level. Total adjusted statutory capital and RBC ratio for AIG Life and Retirement excludes holding company, AGC Life Insurance Company.

Other includes AIG Parent (including deferred tax assets and investment in AerCap), Global Capital Markets, Direct Investment book, AIG Life

Holdings, Inc. (a non-operating holding company), net of consolidation and eliminations.

AIG Property Casualty

7

42,000 employees who serve clients worldwide

51% of premiums written outside of U.S. and Canada in 2013

Average claims paid each business day of over $100 million in 2013

Asia Pacific

2013 NPW: $9.7 bn

28% of total NPW

AIG

Property

Casualty

–

A

Truly

Global

Franchise

AIG Property Casualty is a diversified global P&C market leader with 2013 NPW of over $34 billion.

Americas

2013 NPW: $17.9 bn

52% of total NPW

EMEA

(1)

2013 NPW: $6.8 bn

20% of total NPW

#1 commercial insurance

organization in

U.S./Canada, with

established and growing

position in Latin America

(2)

#1 U.S.-based non-life insurer in

Europe, with established and growing

positions in the Middle East and

Africa

(3)

#1 foreign property

casualty insurer in

Japan

(3)

and the largest

wholly-owned foreign

non-life insurer in

China

(2)

1)

EMEA region consists of Europe, Middle East and Africa.

2)

As measured by full year 2013 direct premiums written.

3)

As measured by full year 2012 total written premiums.

8

AIG

Property

Casualty

–

Strong

Brands

and

Customer

Loyalty

AIG Property Casualty continues to be recognized for excellence.

Confirmit

2013 Achievement in Customer

Excellence

Reader’s Digest

2014 Trusted Brand Award for

Auto Insurance (2

Consecutive Year)

World Travel Fair

2014 Best Quality Service, Travel Insurance

Company (4    Consecutive Year)

Business Insurance

2014

Innovation

Award

-

AIG

Multinational Program Design Tool

Motordata Research Consortium

2014 Insurer of the Year (3 

Consecutive

Year)

Nanfang Daily

2013 Most Trustworthy Financial Brand

(2    Consecutive Year)

Global Finance

2013 Best in Insurance Awards

British Insurance Award

2013 Underwriter of the Year

MENA Insurance Review

2014 Financial Insurer of the Year

UK CIR Magazine

2014 Commercial Insurer and

Specialist Provider of the Year

Awards

PropertyCasualty360

2013 Best Overall Commercial

Insurance Provider

Risk & Försäkring

2013 Insurance Company of the Year

Australian Business Award

2013 Service Excellence

UK Insurance Claims Award

2013 Innovation of the Year

Reaction Magazine

2013 Best Global Insurance

Company Overall

Celent Model Insurer Award

2011

-

2013

Australia and New Zealand Institute

of Insurance & Finance (ANZIIF)

UK Captive Review

2014 Innovation in Fronting Award

The Tempkin Group

2013 Customer Experience Excellence

Award

Insurance

Times

-

UK

2014 Insurer Claims Initiative of the

Year -

Commercial Lines `

98+%

As of

6/1/14

89+%

As of

6/1/14

40%

As of

1/1/14

nd

nd

rd

th

2013 Innovation of the Year – CyberEdge

AIG Clients as a Percentage of Each Category

9

AIG

Property

Casualty

–

Financial

Highlights

Full Year

Six

Months

($ in billions)

2011

2012

2013

2014

Net premiums written

$34.8

$34.4

$34.4

$17.5

Net investment income

4.3

4.8

5.3

2.5

Pre-tax operating income

$1.1

$1.8

$4.8

$2.5

Accident year loss ratio, as adjusted

68.7

65.2

63.8

62.9

Expense ratio

30.4

34.6

34.6

34.1

Accident year combined ratio, as adjusted

99.1

99.8

98.4

97.0

Period-end:

Cash & invested assets

(1)

$126.3

$130.8

$123.1

$123.9

Shareholders’

equity

47.3

48.9

46.3

48.8

Shareholders’

equity, excluding AOCI

$44.3

$43.7

$43.1

$44.6

1)

Includes intercompany invested assets that are eliminated in consolidation.

10

AIG

Property

Casualty

–

Business

Overview

A broad product platform.

Commercial Insurance

Six

Months

2014

NPW

–

$10.8

billion

Consumer Insurance

Six

Months

2014

NPW

–

$6.7

billion

1)

The inclusion of total adjusted statutory capital is intended solely for the information of investors and is not intended for the purpose of ranking any

insurance company or for use in connection with any marketing, advertising or promotional activities.

Casualty

37%

Property

25%

Specialty

17%

Financial

Lines

21%

Accident

& Health

49%

Personal

Lines

51%

Global

–

Unique

ability

to

serve

multinational

clients

Innovative

–

Often

first

to

market

in

new

products

and

services,

such

as

CyberEdge

Capital

Strength

–

U.S.

total

adjusted

statutory

capital

(1)

of

$22.0

billion

at

year-end

2013

11

AIG

Property

Casualty

–

Strategic

Focus

Business

Mix

Underwriting

Excellence

Claims

Service

Operational

Effectiveness

Capital

Management

Balance growth with

profitability and risk

Growth in Risk

Adjusted Profitability

(RAP), accretive

products and

geographies

Achieve scale in key

markets over a

reasonable period of

time

Rationalize/price for

capital intensive

product lines

Globalize

standards for

underwriting and

pricing

Enhance

underwriters’

analytical

capabilities

Balance between

art and science

intertwined with

finer segmentation

Global Claims

Initiative leading to

claims cost savings

and enhanced client

service

Improved claims

practices in medical

and anti-fraud

driven by data

analytics

Build advanced

claims IT

architecture

Simplify and

standardize legacy

operating models

Reduce overhead

with cost

optimization and

shared services

Use RAP as a key

performance

indicator

Increase

underwriting

leverage

Redeployment of

capital from legacy

run-off lines over

time

Strategic levers are driving shareholder value creation

AIG Property Casualty

12

AIG

Property

Casualty

–

Product

Diversification

Commercial Insurance

•

General Liability

•

Commercial Auto

•

Workers’

Compensation

•

Excess Casualty

•

Defense Base Act

•

Crisis Management

•

Global Property including high limits

•

Industrial, Energy and Commercial Property

•

Multinational Property

•

Inland Marine

•

D&O, E&O

•

Cyber Security

•

Fidelity

•

Employment Practices

•

Kidnap and Ransom

•

Aerospace

•

Environmental

•

Political Risk

•

Trade Credit

•

Marine

•

Surety

Consumer Insurance

•

Personal Accident

•

Supplemental Medical

•

Travel

•

Life

•

Automobile

•

Homeowners

•

Extended Warranty

•

Specialty (e.g. identity theft, credit card

protection)

•

Private Client Group

13

AIG

Property

Casualty

–

Reserves

Business mix shift to shorter-tail lines,

expected to reduce net reserves.

Over 50% of reserves are now from

business that has been substantially re-

underwritten (i.e. post 2011).

Reduction in outstanding loss reserves

for long tail reserve segments expected

to reduce reserve variability.

Business mix shifts away from long tail casualty lines and accelerated commutation of legacy portfolios

(especially 2004 and prior) are expected to also reduce reserve variability.

Net Reserves by Accident Year

$65.6 billion at June 30, 2014

2004 & Prior

14%

2005 -

2007

9%

2008 -

2010

21%

2011 -

2014

56%

Note: Allocation by accident year for illustration purposes only and subject to change. Net reserves presented above are shown before the effect of a 

$3.6 billion loss reserve discount and do not include reserves for mortgage guaranty business.

14

AIG

Property

Casualty

–

Accident

Year

Loss

Ratio,

As

Adjusted,

Progression

Note: Excludes catastrophe losses and related reinstatement  premiums, prior year development, net of premium adjustments, and the impact of reserve

discounting.

69.3

66.3

64.8

66.5

63.3

63.2

61.9

63.7

66.4

63.2

62.7

76.9

70.3

67.3

70.8

66.4

65.4

62.2

66.2

67.3

65.1

66.4

57.7

58.4

59.1

57.7

58.0

58.8

60.2

58.5

60.7

59.3

55.7

50

55

60

65

70

75

80

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

Total Property Casualty

Commercial Insurance

Consumer Insurance

15

AIG

Property

Casualty

–

Investment

Composition

&

Ratings

Note: As of June 30, 2014.

1)

Includes intercompany invested assets that are eliminated in consolidation.

Cash

&

Invested

Assets

-

$123.9

billion

(1)

Bond

Portfolio

-

$99.1

billion

-

by

Agency

Credit

Rating

States,

municipalities,

and political

subdivisions

18%

U.S. Governments

2%

Non

-U.S.

governments

14%

Corporate debt

29%

RMBS

10%

CMBS

2%

CDO/ABS

5%

Equities

3%

Alternatives &

Other

8%

Loans

5%

Cash and short-

term investments

4%

AAA

20%

AA

27%

A

27%

BBB

15%

BB

2%

B

2%

<B

7%

AIG Life and Retirement

17

AIG

Life

and

Retirement

–

Operating

from

a

Position

of

Strength

Market Leader

Long standing leading market positions

Scale advantage in key product lines

Product Diversity

& Capacity for

Growth

Comprehensive portfolio of life insurance, A&H, annuity, group retirement,

group benefits, institutional products and mutual funds

Breadth of products allows for growth as demographics and operating

environments shift

Multi-channel

Distribution

Distribution

organization

leverages

broad product portfolio across all channels

Over 300,000 financial professionals

Strong Capital

Position

Cash distributions and loan repayments to AIG Parent of $2.5 billion in the

first six months of 2014 and $4.4 billion in 2013

Year-end 2013 RBC ratio

(1)

at 568% (CAL) supports sales growth

Total adjusted statutory capital

(1)

of $22.6 billion at year-end 2013

1)

The inclusion of RBC measures and total adjusted statutory capital is intended solely for the information of investors and is not intended for

the purpose of ranking any insurance company or for use in connection with any marketing, advertising or promotional activities. CAL is

defined as Company Action Level. Total adjusted statutory capital and RBC ratio excludes holding company, AGC Life Insurance Company.

18

AIG

Life

and

Retirement

–

Financial

Highlights

Full Year

Six

Months

($ in billions)

2011

2012

2013

2014

Premiums and deposits

$24.4

$21.0

$28.8

$14.5

Net investment income

9.9

10.7

10.9

5.4

Pre-tax operating income

3.3

4.2

5.1

2.6

Net flows

$2.9

$(1.3)

$4.6

$2.0

Period-end:

Cash & invested assets

(1)

$194.2

$205.3

$196.9

$203.5

Assets under management

256.9

290.4

318.0

332.8

Shareholders’

equity

34.2

40.0

38.7

41.0

Shareholders’

equity, excluding AOCI

$29.5

$31.6

$34.9

$34.5

1)

Includes intercompany invested assets that are eliminated in consolidation.

19

AIG Life and Retirement –

Net Investment Spread Management

Base

Portfolio

Yields

(1)

Cost of Funds

(2)

Base

Net

Investment

Spreads

(1)

1)

Includes return on base portfolio. Quarterly results are annualized.

2)

Excludes the amortization of sales inducement assets. At June 30, 2014, a total of 71% of fixed annuity and

universal life account values are at contractual minimum guaranteed crediting rates vs. 73% at December 31, 2013.

1.97%

1.98%

2.19%

2.36%

2.24%

2.33%

2.40%

2.28%

1.75%

1.69%

1.75%

2.08%

2.00%

2.05%

2.09%

1.97%

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

Total Base Yield

Fixed Annuities

Group Retirement

3.15%

3.14%

2.91%

2.89%

2.93%

2.91%

2.85%

2.83%

3.26%

3.26%

3.10%

3.06%

3.08%

3.05%

3.02%

3.03%

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

5.38%

5.33%

5.30%

5.35%

5.26%

5.29%

5.32%

5.17%

5.12%

5.12%

5.10%

5.25%

5.17%

5.24%

5.25%

5.11%

5.01%

4.95%

4.85%

5.14%

5.08%

5.10%

5.11%

5.00%

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

20

AIG

Life

and

Retirement

–

Leading

Market

Positions

* Based on LIMRA rankings for respective periods.

Rank*

Metric

1Q14

1Q13

2

5

Total Annuity Sales

1

1

Fixed-Rate Deferred Annuity Sales

4

6

Variable Annuity Sales

5

4

Structured Settlement Annuity Sales

7

6

Term Life Sales

11

12

Universal Life Sales

2

2

Total K-12 Assets

3

3

Total 403(b) Assets

Market Positions

Excellence in Service, Marketing and Technology

Market Tools

2013 Achievement in

Customer Excellence

(ACE award for 7

th

Consecutive Year)

DALBAR

2013 Annuity Service

Excellence Award

(7

th

Consecutive Year)

2013 #1 Ranking for

Annuity Client Quarterly

Statements

(13

th

Consecutive Year)

PlanSponsor Magazine

Earned 17 Best-in-Class

Awards for Participant and

Plan Sponsor Services in

2013

International MarCom

Awards

2012 and 2013 Platinum

and Gold Awards

(42 in total)

Insurance & Financial

Communications

Association

2012 and 2013 Best in

Show and Awards of

Excellence (15 in total)

InformationWeek 500

2012 and 2013 Top

Technology Innovators

Best’s Review

2012 and 2013 Innovators

Showcase

21

AIG

Life

and

Retirement

–

Diversified

Business

Mix

Pre-tax Operating Income

Six Months 2014 -

$2.6 billion

Pre-tax Operating Income

First Six Months 2013 -

$2.5 billion

Retirement

Income Solutions

12%

Retail: 58%

Institutional: 42%

Group Retirement

25%

Retirement

Income Solutions

15%

Fixed Annuities

27%

Life Insurance

and A&H

15%

Retail: 59%

Institutional: 41%

Group Retirement

24%

Fixed Annuities

30%

Life Insurance

and A&H

16%

Retail: 73%

Institutional: 27%

Premiums and Deposits

Six Months 2014 -

$14.5 billion

Life Insurance

and A&H

12%

Fixed Annuities

14%

Retirement

Income Solutions

33%

Retail Mutual Funds &

Brokerage Services

14%

Group Retirement

23%

Group Benefits

2%

Retail: 66%

Institutional: 34%

Premiums and Deposits

First Six Months 2013 -

$12.3 billion

Life Insurance

and A&H

14%

Fixed Annuities

6%

Retirement

Income Solutions

30%

Group Retirement

28%

Group Benefits

3%

Retail Mutual Funds &

Brokerage Services

16%

2%

3%

16%

15%

Institutional

Markets

Institutional

Markets

Institutional

Markets

Institutional

Markets

22

AIG Life and Retirement –

Assets Under Management

Year-over-year

growth

in

AUM

reflects

strong

retail

investment

product

net

flows,

higher

separate

account balances and increased institutional assets.

June

30,

2013

-

$293.7

billion

June

30,

2014

-

$332.8

billion

Life

Insurance

and A&H

12%

Fixed

Annuities

24%

Retirement

Income

Solutions

12%

Retail

Mutual

Funds

3%

Group

Retirement

30%

Institutional

Markets

18%

Group

Benefits

1%

Life

Insurance

and A&H

11%

Fixed

Annuities

21%

Retirement

Income

Solutions

14%

Retail

Mutual

Funds

4%

Group

Retirement

29%

Institutional

Markets

20%

Group

Benefits

1%

23

AIG

Life

and

Retirement

–

Broad

Multichannel

Distribution

Network

2013 Sales By Distribution Channel

Affiliated: 33%

Non-affiliated: 67%

Affiliated: 43%

Non-affiliated: 57%

2012 Sales By Distribution Channel

VALIC Financial Advisors

AIG Financial Network

Advisor Group

AIG Direct

Affiliated

Broker-Dealers

Banks

Independent Marketing Organizations

Benefit Brokers

Non-affiliated

B-Ds

34%

Banks

19%

IMOs

10%

Advisor Group

3%

AIG Financial Network

3%

AIG Direct & Other

1%

VALIC FAs

26%

Benefit Brokers

3%

B-Ds

29%

Banks

13%

IMOs

11%

Advisor Group

2%

AIG Financial Network

5%

AIG Direct & Other

3%

VALIC FAs

33%

Benefit

Brokers

4%

24

AIG

Life

and

Retirement

–

Individual

Variable

Annuities

Unique Opportunity for AIG

*

Source: LIMRA VA Sales report. VA industry sales data reported herein

excludes Employer Plan sales and internal exchange sales

Industry Retail Variable Annuity Sales*

Total: $27.6 bn

De-Risked Benefits

(2)

Early Benefits

Revised Benefits

(3)

1)

Excludes $4.1 billion of AUM at VALIC with GMWB guarantees.

2)

De-Risked Benefits: Features on contracts issued since 2010 (VIX indexing/volatility control fund in 2012).

3)

Pre-2010 Partially De-Risked Benefits: Due to actual policyholder election of extension offers to-date.

Account Value by GMWB Guarantee

at 6/30/14

(1)

A strategic growth opportunity for AIG.

Company

% change

from

($ in millions)

Rank

Sales

Q1 2013

Rank

Sales

Rank

Sales

Jackson National

1

6,382

40%

1

5,470

1

4,562

Lincoln Financial Group

2

2,997

1%

2

3,469

4

2,961

Prudential Financial

3

2,254

(45%)

3

2,359

2

4,110

AIG

4

2,003

46%

4

2,289

7

1,373

AEGON/Transamerica

5

1,975

26%

5

2,242

6

1,568

AXA Equitable

6

1,752

2%

6

1,928

5

1,720

Nationwide

7

1,423

28%

7

1,557

10

1,114

MetLife

8

1,296

(59%)

8

1,425

3

3,176

Ameriprise

9

1,167

(1%)

9

1,242

9

1,182

Pacific Life

10

1,034

(17%)

10

1,043

8

1,241

Other

6,408

15%

6,791

5,550

Total

28,689

0%

29,816

28,557

Q1 2014

Q4 2013

Q1 2013

75%

19%

6%

Individual variable annuities represented 16% of AIG Life and Retirement’s total reserves at June 30, 2014.

AIG has continually improved its industry ranking since 2009; remaining growth opportunity in VA due to market share of only 7.0%.

Disciplined pricing and de-risked benefits: VIX indexing of rider fees, volatility control funds, mandatory 20% asset allocation to fixed accounts.

25

AIG Life and Retirement –

Index Annuities

Evolving Market

Source: LIMRA Indexed Deferred Annuity Sales Report

AIG Strategic Advantages To Developing Index Annuities

Quarterly Index Annuity Industry Sales

($ in billions)

Provides

an

opportunity

to

diversify

Retirement

Income

Solutions

offerings.

Broader

distribution

through

independent

marketing

organizations

(the

product

does

not

require

a

securities

license)

Ability

to

leverage

AIG

L&R’s

strengths

of

low-cost

administration

and

multi-channel

distribution,

combined

with

leading-edge

product

innovation

and

dynamic

hedging

capability

Increased

sales

through

advisors

looking

for

less

complex

guaranteed

lifetime

income

products

Potential

for

higher

fixed

sales

in

lower

interest

rate

periods

Ability

to

further

diversify

our

base

of

fee

and

spread

income

Enhanced

sales

of

“lower-risk”

lifetime

income

solutions

that

require

simpler

hedging

Approximately 2/3 of index annuity sales include a Guaranteed

Living Benefit (GLB)

2013 industry sales of $39 billion reflect a CAGR of 11% over

10 years

Regulatory changes, improved industry practices, and product

design changes have changed the landscape

In past years, many leading carriers avoided the index

annuity market due to issues centered around suitability,

sales practices, and proposed treatment as “securities”

26

AIG Life and Retirement –

Investment Composition & Ratings

Note: As of June 30, 2014.

1)

Includes intercompany invested assets that are eliminated in consolidation.

2)

NAIC ratings exclude $1.0 billion of fixed maturity securities for which no NAIC Designation is available because they are not held in legal entities within AIG

Life and Retirement that require a statutory filing. A significant portion of instruments with below investment grade credit ratings from rating agencies are

comprised of non-agency RMBS, most of which are rated higher when using the NAIC’s cash flow based evaluation approach comparing book value to

expected recoveries.

Cash

&

Invested

Assets

-

$203.5

billion

(1)

By NAIC Ratings

(2)

Bond Portfolio –

$165.2 billion

By Agency Credit Rating

States,

municipalities, and

political

subdivisions

2%

U.S. Governments

1%

Non-U.S.

governments

2%

Corporate debt

54%

RMBS

12%

CMBS

5%

CDO/ABS

5%

Alternatives &

Other

6%

Loans

10%

Cash and short-

term investments

3%

AAA

12%

AA

10%

A

23%

BBB

41%

BB

3%

B

2%

<B

8%

Not Rated

1%

NAIC 1

54%

NAIC 2

40%

NAIC 3

3%

NAIC 4

2%

NAIC 5 & 6

1%

Mortgage Guaranty

(United Guaranty Corporation)

28

United Guaranty –

Financial Highlights

Full Year

Six

Months

($ in millions)

2011

2012

2013

2014

Net premiums written

$801

$858

$1,048

$480

Net investment income

132

146

132

68

Pre-tax operating income (loss)

($97)

$9

$205

286

Combined ratio

128.9

119.2

90.9

50.4

Period-end:

Cash & invested assets

(1)

$4,081

$4,222

$3,934

$4,098

Shareholders’

equity

2,425

2,311

2,282

2,529

Shareholders’

equity, excluding AOCI

$2,332

$2,193

$2,268

$2,460

1)

Includes intercompany invested assets that are eliminated in consolidation.

29

United Guaranty –

A Market Leader

Risk based pricing driving profitable new business.

UGC’s risk-based pricing plan, Performance Premium, utilizes over a dozen variables to evaluate loan risk and price the

mortgage insurance policy.

United Guaranty continues to insure a high volume of mortgages with excellent credit quality despite the decline in

mortgage originations.

Vintage

Year

(2)

Average

FICO Score

LTV Ratio

2010

760

90

2011

757

91

2012

758

91

2013

753

91

1Q14

751

92

2Q14

750

92

New

Insurance

Written

(1)

($ in billions)

1)

Represents principal amount of loans insured.

2)

Domestic First-lien only.

$18.8

$37.5

$49.9

$18.9

2011

2012

2013

Six Months

2014

$0.0

$10.0

$20.0

$30.0

$40.0

$50.0

$60.0

30

United Guaranty –

Shrinking Legacy In-Force

New business generated after 2008 represents 73% of primary domestic RIF at June 30, 2014, the highest among peers

active

before

2009

(1)

.

Primary delinquency rate has returned to pre-crisis level due to a combination of strong growth of new business and

proactive management of delinquent book through UGC’s Letter Campaign.

Note: Data presented above is for Domestic First Lien operations.

1)

Peers

include

Mortgage

Guaranty

Insurance

Company

(MGIC),

Radian

Guaranty,

Incorporated

and

Genworth

Mortgage

Insurance

Company.

Primary Delinquency Rate

Primary

Risk-in-force

(RIF)

–

$38.9

billion

As of June 30, 2014 (by vintage year)

2005 and

prior

8%

2006

5%

2007

9%

2008

5%

2009

2%

2010

3%

2011

7%

2012

20%

2013

30%

2014

11%

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

3/31/08

6/30/09

9/30/10

12/31/11

3/31/13

6/30/14

31

United Guaranty –

Financial Strength

Among

peers

active

before

2009

(2)

,

UGC

has

the

lowest

default

rate

and

highest

portion

of

RIF

from

loans

originated

after

2008.

UGC’s primary statutory insurance subsidiary, United Guaranty Residential Insurance Company (UGRIC), maintains an S&P

rating

of

A-

and

Moody's

rating

of

Baa1

with

stable

outlooks

(3)

.

UGC operating earnings reflect increasing contribution from new business.

Capitalization and Risk

Source: Statutory filing data.

1)

Risk-to-capital estimates for all companies, including United Guaranty, are preliminary estimates for March 31, 2014.

2)

Essent was not active before 2009.

3)

As of the date of this presentation.

At March 31, 2014

At March 31, 2014

Default

Rate (%)

Post 2008

RIF (%)

Risk-to-

Capital

(1)

Peers active before 2009:

United Guaranty

5.3

71

18.4

Genworth

7.4

47

18.7

MGIC

9.7

44

15.3

Radian

6.3

62

19.2

Peers active after 2009:

Essent

0.1

100

16.1

Asset Composition

Cash & Bonds to Total Admitted Assets

89%

43%

46%

79%

95%

0%

20%

40%

60%

80%

100%

UGRIC

Genworth

Radian

MGIC

Essent

Capital Strength

33

Capital Position and Ratings

Book Value Per Share

Capital Structure

$68.62

1)

Includes AIG Notes, Bonds, Loans and Mortgages Payable, and AIG Life Holdings, Inc.

(AIGLH) Notes and Bonds Payable and junior subordinated debt.

2)

As of the date of this presentation, all ratings have stable outlooks.

3)

Ratings only reflect those of the core insurance companies.

(1)

($ in billions)

$122.3

Leverage Ratios:

Dec. 31,

2013

June 30,

2014

Financial Debt + Hybrids /

Capitalization

17.3%

16.4%

Financial Debt / Capitalization

12.8%

12.1%

$75.71

$129.8

$66.38

S&P

Moody’s

Fitch

AM Best

AIG –

Senior

Debt

A-

Baa1

BBB+

NR

AIG PC

(3)

–

FSR

A+

A1

A

A

AIG L&R

(3)

–

FSR

A+

A2

A+

A

Credit

Ratings

(2)

$100.5

$108.2

$5.5

$5.6

$15.7

$15.7

$0.6

$0.4

Dec. 31, 2013

June 30, 2014

Non-redeemable

noncontrolling

interests

Financial Debt

Hybrids

Common Equity

$57.87

$64.28

$67.65

$8.51

$4.34

$8.06

$0.00

$20.00

$40.00

$60.00

$80.00

Dec. 31, 2012

Dec. 31, 2013

June 30, 2014

BVPS, ex AOCI

AOCI

34

Financial Flexibility –

A Source of Strength

AIG Parent Cash, Short-Term Investments &

Unencumbered Fixed Maturity Securities

Insurance Company Cash Distributions*

($ in millions)

($ in billions)

Cash

distributions

in

2014

are

expected

to

be

$5

–

$6

billion.

Tax sharing payments from insurance businesses amounted to $781 million year-to-date; subject to reimbursement in future periods.

AIG Parent cash, short-term investments and unencumbered fixed maturity securities of $14.1 billion includes $4.4 billion allocated

toward

future

maturities

of

liabilities

and

contingent

liquidity

stress

needs

of

the

Direct

Investment

book

and

Global

Capital

Markets

as

of June 30, 2014.

$13.1

$14.1

$3,240

$8,581

$4,349

* AIG Property Casualty cash distributions in 2014, 2013 and 2012 exclude $178 million, $222 million and $1.0 billion, respectively of non-cash dividends.

AIG Life and Retirement cash distributions in 2014 exclude $642 million of non-cash dividends.

$1,496

$4,148

$701

$2,853

$4,433

$2,539

90

FY

FY

Six Months

2014

AIG

Property

Casualty

AIG Life and Retirement

UGC

$10.2

$10.6

$3.0

$3.5

Dec. 31,

2013

June 30,

2014

Unencumbered

Fixed Maturity

Securities

Cash & Short-term

Investments

2013

2012

Other Sources of Value

36

Direct Investment Book and Global Capital Markets

Direct Investment Book

(1)

Global Capital Markets

(1)

Assets

$19.8

$6.7

Liabilities

15.2

3.2

Net Asset Value

$4.6

$3.5

Legacy Matched                            

Assets & Liabilities

Market Derivatives

(2)

Legacy AIGFP                    Stable Value                       Go Forward               

CDS Portfolio

Wraps

Hedging Platform

Third-Party

Derivatives

Notional ($

billion)

--

$63

Multi-

Sector

Corporate

Arbitrage

$8

$36

$3

$12

Weighted

Average Life

(Years)

--

7.7

4.9

1.7

4.3

8.1

Strategy

Assets managed with the goal

of ensuring that liabilities can

be met as they come due,

even under stress scenarios

Primarily hedges of

DIB assets and

liabilities          

Bulk of risk related

to interest rates,

foreign exchange

and equities has

been hedged

Remaining credit

risk viewed as

attractive risk-

reward

In July 2014,

terminated

Corporate Arbitrage

CDSs with a

notional amount of

$8.8 billion

Since 3Q 2012,

notional value of

$10 billion has

been novated to

AIG Life and

Retirement

In July 2014, $3

billion of additional

notional was

novated to L&R

reducing the total

notional to $5 billion

Note: As of June 30, 2014.

($ in billions)

AIG Hedging &

“Clearing house”

for

operating company

hedging and risk

management needs

The DIB consists of a portfolio of assets and liabilities held directly by AIG Parent in the MIP and certain non-derivative assets and liabilities of

AIGFP. The DIB and GCM are included in Other Operations in AIG’s Consolidated Balance Sheet.

The overall hedging activity for the assets and liabilities of the DIB is executed by GCM. The value of hedges related to the non-derivative assets

and liabilities of AIGFP in the DIB is included within the assets, liabilities and operating results of GCM and is not included within the DIB assets,

liabilities or operating results. 

1)

2)

37

Direct Investment Book Long-Term Debt

1)

On

July

31,

2014,

AIG

redeemed

approximately

$2.0

billion

of

additional

DIB

notes

due

in

2016

and

2017,

all

using

cash

allocated

to

the

DIB.

$5.7

$3.6

$3.5

$3.0

$0.4

$2.2

$2.2

$2.2

$2.2

$2.1

$0.2

$4.7

$4.5

$3.9

$3.7

$3.5

$2.8

$1.1

$1.0

$0.8

$0.6

$0.5

$0.3

$13.6

$11.3

$10.4

$9.5

$6.5

$3.3

$0

$5

$10

$15

as of 6/30/2014

2014

2015

2016

2017

2018

MIP notes payable

Series AIGFP matched notes and bonds payable

GIAs, at fair value

Notes and bonds payable, at fair value

($ in billions)

(1)

38

Deferred Tax Asset Overview

AIG continues to have substantial deferred tax assets that are available to offset future tax obligations.

1)

Foreign tax credits triggered in 2013 have increased the amount of carryover.

2)

Change during the period is primarily attributable to available for sale investment securities.

As of 12/31/12

As of 12/31/13

($ in billions)

Type

Gross

Attributes

Deferred

Tax Asset

Gross

Attributes

Deferred

Tax Asset

Utilization/Expiration

Net Operating Loss

Carryforwards

Non-Life

& Life

$39.5

$13.8

$35.8

$12.5

Utilize against AIG PC, ILFC, UGC,

AIG Parent and 35% of AIG L&R

income

2028–2031 Expiration

Capital Loss

Carryforwards

Valuation Allowance

Life

$16.6

$5.8

($5.1)

$1.4

$0.5

($0.5)

Utilize against capital gains from AIG

L&R

2014 Expiration

Foreign

Tax Credits

General

$4.7

$5.3

(1)

Utilize against 65% of AIG L&R

income

2016–2023 Expiration

Subtotal –

U.S. Tax

Attributes

19.2

17.8

Other

Deferred Tax

Assets/(Liabilities)

(2.5)

3.4

(2)

Net Deferred Tax

Assets

$16.7

$21.2

Appendix

40

Glossary of Non-GAAP Financial Measures

AIG

AIG

–

After-tax

operating

income

(loss)

attributable

to

AIG

is

derived

by

excluding

the

following

items

from

net

income

(loss)

attributable

to

AIG:

income

(loss)

from discontinued operations, income (loss) from divested businesses, including gain on the sale of ILFC and certain post-acquisition costs incurred by AerCap in

connection

with

its

acquisition

of

ILFC

and

related

tax

effects,

legacy

tax

adjustments

primarily

related

to

certain

changes

in

uncertain

tax

positions

and

other

tax

adjustments,

legal

reserves

(settlements)

related

to

“legacy

crisis

matters,”

deferred

income

tax

valuation

allowance

(releases)

charges,

changes

in

fair

value

of

AIG

Life and Retirement fixed maturity securities designated to hedge living benefit liabilities (net of interest expense), changes in benefit reserves and DAC, VOBA, and

sales

inducement

assets

(SIA)

related

to

net

realized

capital

gains

(losses),

AIG

Property

Casualty

other

(income)

expense

-

net,

(gain)

loss

on

extinguishment

of

debt,

net

realized

capital

(gains)

losses,

and

non-qualifying

derivative

hedging

activities,

excluding

net

realized

capital

(gains)

losses.

“Legacy

crisis

matters”

include

favorable

and

unfavorable

settlements

related

to

events

leading

up

to

and

resulting

from

our

September

2008

liquidity

crisis

and

legal

fees

incurred

by

AIG

as

the

plaintiff in connection with such legal matters.

Book

Value

Per

Common

Share

Excluding

Accumulated

Other

Comprehensive

Income

(Loss)

(AOCI)

is

derived

by

dividing

Total

AIG

shareholders’

equity,

excluding AOCI, by Total common shares outstanding.

AIG Property Casualty

Pre-tax operating income (loss)

includes both underwriting income (loss) and net investment income, but excludes net realized capital (gains) losses, other (income)

expense -

net, and legal settlements related to legacy crisis matters. Underwriting income (loss) is derived by reducing net premiums earned by claims and claims

adjustment expenses incurred, acquisition expenses and general operating expenses.

Accident year loss and combined ratios, as adjusted:

both the accident year loss and combined ratios, as adjusted, exclude catastrophe losses and related

reinstatement premiums, prior year development, net of premium adjustments, and the impact of reserve discounting. Catastrophe losses are generally weather or

seismic events having a net impact on AIG Property Casualty in excess of $10 million each.

AIG Life and Retirement

Pre-tax operating income (loss)

is derived by excluding the following items from pre-tax income (loss): legal settlements related to legacy crisis matters, changes in

fair values of fixed maturity securities designated to hedge living benefit liabilities (net of interest expense), net realized capital (gains) losses, and changes in benefit

reserves and DAC, VOBA, and SIA related to net realized capital gains (losses).

Premiums and deposits

includes direct and assumed amounts received on traditional life insurance policies, group benefit policies and deposits on life-contingent

payout annuities, as well as deposits received on universal life, investment-type annuity contracts and mutual funds.

Mortgage Guaranty (United Guaranty Corporation)

Pre-tax operating income (loss):

is derived by excluding net realized capital (gains) losses from pre-tax income (loss).

Results from discontinued operations are excluded from all of these measures.

41

Non-GAAP Reconciliation –

Pre-tax Operating Income

Six Months

2011

2012

2013

2014

Income from continuing operations, before tax

2,100

2,023

5,133

2,799

Adjustments to arrive at pre-tax operating income:

Net realized capital (gains) losses

(957)

(211)

(380)

(269)

Legal settlements

-

(17)

(13)

(8)

Other (income) expense -

net

5

(2)

72

(8)

Pre-tax operating income

$

$

$

$

Six Months

2011

2012

2013

2014

Income from continuing operations, before tax

$

$

$

$

Adjustments to arrive at pre-tax operating income:

Legal settlements

-

(154)

(1,020)

(42)

Changes in fair value of securities designated to hedge

living benefit liabilities, net of interest expense

-

(37)

161

(130)

Change in benefit reserves and DAC, VOBA and SIA

related to net realized capital (gains) losses

327

1,201

1,486

11

Net realized capital (gains) losses

(6)

(630)

(2,037)

277

Pre-tax operating income

$

$

$

$

Six Months

2011

2012

2013

2014

Income from continuing operations, before tax

$

$

$

$

Adjustments to arrive at pre-tax operating income:

Net realized capital (gains) losses

(20)

(6)

(8)

(2)

Pre-tax operating income (loss)

$

$

$

$

United Guaranty

($ in millions)

AIG Property Casualty

($ in millions)

AIG Life and Retirement

($ in millions)

Full Year

Full Year

Full Year

$

$

$

$

1,148

1,793

2,514

4,812

2,956

3,780

4,160

5,095

6,505

2,481

2,597

(77)

(97)

15

9

213

205

288

286

3,277

42

Non-GAAP Reconciliation –

After-tax Operating Income and

Foreign Exchange Effect on Net Premiums Written

1)

Includes the gain on sale of ILFC, which was sold on May 14, 2014.

(1)

June 30,

2011

2012

2013

2014

Net income attributable to AIG

$               20,622

$                  3,438

$                  9,085

$                  4,682

Adjustments to arrive at After-tax operating income attributable to AIG:

(Income) loss from discontinued operations

(2,448)

(1)

(84)

17

Net

(income)

loss

from

divested

businesses

663

4,039

117

(1,411)

Uncertain tax positions and other tax adjustments

-

543

791

11

Legal reserves (settlements) related to legacy crisis matters

13

353

(460)

319

Deferred income tax valuation allowance releases

(18,307)

(1,911)

(3,237)

(140)

Amortization of FRBNY prepaid commitment fee asset

2,358

-

-

-

Changes in fair value of AIG Life and Retirement fixed maturity

securities

designated to hedge living benefit liabilities, net of interest expense

-

(24)

105

(84)

Changes in benefit reserves and DAC, VOBA and SIA related to net

realized capital gains

202

781

1,132

16

AIG Property Casualty other (income) expense –

net

-

-

47

-

Loss on extinguishment of debt

(480)

21

423

177

Net realized capital (gains) losses

(453)

(586)

(1,157)

27

Non-qualifying derivative hedging gains, excluding net realized capital gains

(84)

(18)

-

-

After-tax operating income attributable to AIG

$                  2,086

$                  6,635

$                  6,762

$                  3,614

Full Year

2013

Change in net premiums written

Increase in original currency

3.8%

Foreign exchange effect

(3.9%)

Decrease as reported in US $

(0.1%)

After-tax Operating Income Attributable to AIG

($ in millions)

Foreign exchange effect on net premiums written:

Full Year

43

Non-GAAP Reconciliation –

BVPS ex. AOCI and Premiums and

Deposits

June 30,

2011

2012

2013

2014

Total AIG shareholders’ equity

101,538

$           

98,002

$               

100,470

$             

108,161

$             

Less: AOCI

6,481

12,574

6,360

11,511

Total AIG shareholders’ equity, excluding AOCI

95,057

$             

85,428

$               

94,110

$               

96,650

$               

Total common shares outstanding

1,896,821,482

1,476,321,935

1,464,063,323

1,428,575,390

Book value per common share

53.53

$              

66.38

$                 

68.62

$                 

75.71

$                 

Book value per common share, excluding AOCI

50.11

$              

57.87

$                 

64.28

$                 

67.65

$                 

Six Months

2011

2012

2013

2014

Premiums and deposits

24,392

$             

20,994

$                

28,809

$                

14,489

$                

Deposits

(21,302)

(17,898)

(25,542)

(12,999)

Other

(541)

(632)

(671)

(193)

Premiums

2,549

$              

2,464

$                  

2,596

$                  

1,297

$                  

Book Value Per Common Share - Ex. AOCI

($ in millions, except per share data)

Full Year

December 31,

AIG Life and Retirement Premiums and Deposits

($ in millions)

44

Non-GAAP Reconciliation –

Return On Equity

1)

Represents U.S. tax attributes related to net operating loss carryforwards and foreign tax credits. 2014 amount is estimated.

2)

Computed as Actual or Annualized Net income (loss) attributable to AIG divided by Average AIG Shareholders' equity.

3)

Computed as Actual or Annualized Net income (loss) attributable to AIG divided by Average AIG Shareholders' equity, excluding AOCI.

4)

Computed as Actual or Annualized After-tax operating income divided by Average AIG Shareholders' equity, excluding AOCI.

5)

Computed as Actual or Annualized After-tax operating income divided by Average AIG Shareholders' equity, excluding AOCI and tax attribute DTA.

Six Months

2011

2012

2013

2014

Annualized Net income attributable to AIG

$             20,622

$                 3,438

$                 9,085

$                 9,364

Annualized After-tax operating income attributable to AIG

2,086

6,635

6,762

7,228

Average AIG Shareholders' equity

85,639

101,873

98,850

104,155

Less: Average AOCI

8,234

9,718

8,865

8,986

Average AIG Shareholders' equity, excluding average AOCI

77,405

92,155

89,985

95,169

Less: Average tax attribute DTA

(1)

2,500

19,250

18,150

17,342

Average AIG Shareholders' equity, excluding average AOCI

   & tax attribute DTA

74,905

$             

72,905

$               

71,835

$               

77,827

$               

ROE

(2)

24.1%

3.4%

9.2%

9.0%

ROE excluding AOCI

(3)

26.6%

3.7%

10.1%

9.8%

ROE - After-tax operating income, excluding AOCI

(4)

2.7%

7.2%

7.5%

7.6%

ROE - After-tax operating income, excluding AOCI & DTA

(5)

2.8%

9.1%

9.4%

9.3%

Return on equity (ROE) computations

($ in millions)

Full Year

45

Non-GAAP Reconciliation –

Accident Year Combined Ratio,

As Adjusted

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

4Q13

1Q14

2Q14

Commercial Insurance

Loss ratio

80.3

72.3

70.7

78.0

100.9

64.9

72.6

71.8

77.9

69.4

67.7

Catastrophe losses and reinstatement premiums

(8.1)

(1.5)

(5.4)

(4.5)

(32.8)

(0.6)

(6.0)

(3.5)

(3.6)

(3.6)

(2.3)

Prior year development net of premium adjustments

3.9

(0.5)

0.1

(2.7)

(1.7)

1.1

(4.4)

(2.1)

(0.9)

(3.2)

0.7

Net reserve discount benefit (charge)

0.8

-

1.9

-

-

-

-

-

(6.1)

2.5

0.3

Accident year loss ratio, as adjusted

76.9

70.3

67.3

70.8

66.4

65.4

62.2

66.2

67.3

65.1

66.4

Acquisition ratio

14.9

18.0

17.2

15.6

15.5

16.3

16.3

15.8

16.1

16.2

15.4

General operating expense ratio

11.9

11.3

11.4

12.4

13.9

11.0

12.8

12.6

13.7

12.1

12.3

Expense ratio

26.8

29.3

28.6

28.0

29.4

27.3

29.1

28.4

29.8

28.3

27.7

Combined ratio

107.1

101.6

99.3

106.0

130.3

92.2

101.7

100.2

107.7

97.7

95.4

Catastrophe losses and reinstatement premiums

(8.1)

(1.5)

(5.4)

(4.5)

(32.8)

(0.6)

(6.0)

(3.5)

(3.6)

(3.6)

(2.3)

Prior year development net of premium adjustments

3.9

(0.5)

0.1

(2.7)

(1.7)

1.1

(4.4)

(2.1)

(0.9)

(3.2)

0.7

Net reserve discount benefit (charge)

0.8

-

1.9

-

-

-

-

-

(6.1)

2.5

0.3

Accident year combined ratio, as adjusted

103.7

99.6

95.9

98.8

95.8

92.7

91.3

94.6

97.1

93.4

94.1

Consumer Insurance

Loss ratio

59.4

58.1

59.2

58.3

67.9

57.8

58.9

58.8

60.4

61.3

55.8

Catastrophe losses and reinstatement premiums

(1.0)

(0.1)

(1.1)

(0.6)

(8.9)

(0.3)

(0.3)

(1.2)

(0.6)

(2.5)

(0.6)

Prior year development net of premium adjustments

(0.7)

0.4

1.0

-

(1.0)

1.3

1.6

0.9

0.9

0.5

0.5

Accident year loss ratio, as adjusted

57.7

58.4

59.1

57.7

58.0

58.8

60.2

58.5

60.7

59.3

55.7

Acquisition ratio

23.9

23.7

23.5

25.7

26.9

24.9

25.9

26.1

25.2

25.9

25.9

General operating expense ratio

15.5

14.9

15.0

14.8

16.4

15.7

15.3

15.0

17.7

14.7

16.3

Expense ratio

39.4

38.6

38.5

40.5

43.3

40.6

41.2

41.1

42.9

40.6

42.2

Combined ratio

98.8

96.7

97.7

98.8

111.2

98.4

100.1

99.9

103.3

101.9

98.0

Catastrophe losses and reinstatement premiums

(1.0)

(0.1)

(1.1)

(0.6)

(8.9)

(0.3)

(0.3)

(1.2)

(0.6)

(2.5)

(0.6)

Prior year development net of premium adjustments

(0.7)

0.4

1.0

-

(1.0)

1.3

1.6

0.9

0.9

0.5

0.5

Accident year combined ratio, as adjusted

97.1

97.0

97.6

98.2

101.3

99.4

101.4

99.6

103.6

99.9

97.9

Total AIG Property Casualty

Loss ratio

74.5

68.0

68.9

71.4

87.6

63.3

68.0

67.3

68.2

67.1

64.6

Catastrophe losses and reinstatement premiums

(5.3)

(0.9)

(3.7)

(2.9)

(22.9)

(0.5)

(3.7)

(2.7)

(2.4)

(3.2)

(1.6)

Prior year development net of premium adjustments

(0.1)

(0.6)

(1.5)

(2.0)

(1.4)

0.4

(2.3)

(0.8)

(3.1)

(1.9)

(0.2)

Net reserve discount benefit (charge)

0.2

(0.2)

1.1

-

-

-

(0.1)

(0.1)

3.7

1.2

(0.1)

Accident year loss ratio, as adjusted

69.3

66.3

64.8

66.5

63.3

63.2

61.9

63.7

66.4

63.2

62.7

Acquisition ratio

18.5

20.2

19.6

19.5

20.2

19.7

20.0

19.7

19.5

19.9

19.4

General operating expense ratio

14.1

13.7

13.9

14.1

17.3

14.3

14.6

14.6

16.1

14.2

14.8

Expense ratio

32.6

33.9

33.5

33.6

37.5

34.0

34.6

34.3

35.6

34.1

34.2

Combined ratio

107.1

101.9

102.4

105.0

125.1

97.3

102.6

101.6

103.8

101.2

98.8

Catastrophe losses and reinstatement premiums

(5.3)

(0.9)

(3.7)

(2.9)

(22.9)

(0.5)

(3.7)

(2.7)

(2.4)

(3.2)

(1.6)

Prior year development net of premium adjustments

(0.1)

(0.6)

(1.5)

(2.0)

(1.4)

0.4

(2.3)

(0.8)

(3.1)

(1.9)

(0.2)

Net reserve discount benefit (charge)

0.2

(0.2)

1.1

-

-

-

(0.1)

(0.1)

3.7

1.2

(0.1)

Accident year combined ratio, as adjusted

101.9

100.2

98.3

100.1

100.8

97.2

96.5

98.0

102.0

97.3

96.9

AIG Property Casualty

Accident year combined ratio, as adjusted

Quarterly

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and

individual

customers

through

one

of

the

most

extensive

worldwide

property-casualty

networks

of

any

insurer.

In

addition,

AIG

companies

are

leading

providers

of

life

insurance

and

retirement

services

in

the

United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig | Twitter: @AIG_LatestNews | LinkedIn: http://www.linkedin.com/company/aig

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at

www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is

subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus

lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.