American International Group, Inc.

Transcription

1 Quarterly Financial Supplement Third Quarter 2011 This report should be read in conjunction with AIG's Quarterly Report on Form 10-Q for the quarter ended September 30, 2011 filed with the Securities and Exchange Commission. All financial information in this document is unaudited. ** Pages and pages for Chartis were revised on November 17, 2011 to reflect revisions to the accident year combined ratios**

2 Quarterly Financial Supplement Contact: Liz Werner Investor Relations (212) Table of Contents. Page(s) Cautionary Statement Regarding Forward-Looking Information... 1 Non-GAAP Financial Measures... 2 Consolidated Results Consolidated Statement of Operations Consolidated Statement of Segment Operations Summary of Non-Qualifying Derivative Hedging Activities... 7 Condensed Consolidating Balance Sheet Debt and Capital Understanding AIG s Relationship with the U.S. Government Book Value per Common Share Chartis Chartis Operating Statistics Chartis - Operating Statistics by Business Chartis - Operating Statistics (U.S. & International) Worldwide Net Premiums Written by Line of Business & Region Net Premiums Written by Line of Business Chartis Notes SunAmerica Financial Group SunAmerica Financial Group Operating Statistics Domestic Life Insurance (American General) Operating Statistics Domestic Life Insurance (American General) Sales and Deposits Domestic Life Insurance (American General) Other Data Domestic Retirement Services Operating Statistics Domestic Retirement Services Product Statistics Domestic Retirement Services Account Value Rollforward Domestic Retirement Services Spread Information Domestic Retirement Services Group Retirement Products (VALIC) Domestic Retirement Services Individual Variable Annuities (SunAmerica Retirement markets) Guaranteed Benefits SunAmerica Financial Group Notes Aircraft Leasing Aircraft Leasing Other Other Operations Mortgage Guaranty Operating Statistics AIGFP derivatives Parent Company Financial Statements Investment Information Other Invested Assets by Segment Realized Capital Gains (Losses) Return on Average Partnership and Mutual Funds Assets by Segment... 49

3 Cautionary Statement Regarding Forward-Looking Information This Financial Supplement includes, 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 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: actions by credit rating agencies; changes in market conditions; the occurrence of catastrophic events; significant legal proceedings; concentrations in AIG s investment portfolios, including its municipal bond portfolio; judgments concerning casualty insurance underwriting and reserves; judgments concerning the recognition of deferred tax assets; judgments concerning the recoverability of aircraft values in International Lease Finance Corporation s (ILFC) fleet; and such other factors as discussed throughout Part I, Item 2. Management s Discussion and Analysis of Financial Condition and Results of Operations of AIG s Quarterly Report on Form 10-Q for the quarter ended September 30, 2011, in Part II, Item 1A. Risk Factors of AIG s Quarterly Report on Form 10-Q for the quarter ended March 31, 2011, throughout Part II, Item 7. Management s Discussion and Analysis of Financial Condition and Results of Operations and in Part I, Item 1A. Risk Factors in AIG s Annual Report on Form 10-K for the year ended December 31, 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. 1

4 Non-GAAP Financial Measures This financial supplement includes certain non-gaap financial measures. The reconciliations of such measures to the most comparable GAAP measures in accordance with Regulation G are included within the relevant tables. Throughout this financial supplement, AIG presents its operations in the way it believes will be most meaningful and useful, as well as most transparent, to the investing public and others who use AIG s financial information in evaluating the performance of AIG. That presentation includes the use of certain non-gaap measures. In addition to the GAAP presentations, in some cases, revenues, net income, operating income and related rates of performance are shown exclusive of the effect of tax benefits not obtained for losses incurred, results from divested businesses, discontinued operations, amortization of the FRBNY prepaid commitment fee asset, the recognition of other-than-temporary impairments, restructuring-related activities, conversion of the Series C, E and F Preferred Stock, realized capital gains (losses), net of SunAmerica DAC offset, partnership income, other enhancements to income, the effect of non-qualifying derivative hedging activities, the effect of goodwill impairments, credit valuation adjustments, unrealized market valuation gains (losses), the effect of catastrophe-related losses and prior year loss development, asbestos losses, returned or additional premiums related to prior year development, foreign exchange rates, deferred income tax valuation allowance charges or credits, aircraft impairments and the bargain purchase gain on the Fuji acquisition. In all such instances, AIG believes that excluding these items permits investors to better assess the performance of AIG s underlying businesses. AIG believes that providing information in a non-gaap manner is more useful to investors and analysts and more meaningful than the GAAP presentation. Although the investment of premiums to generate investment income (or loss) and realized capital gains or losses is an integral part of both life and general insurance operations, the determination to realize capital gains or losses is independent of the insurance underwriting process. Moreover, under applicable GAAP accounting requirements, losses can be recorded as the result of other-than-temporary declines in value without actual realization. In sum, investment income and realized capital gains or losses for any particular period are not indicative of underlying business performance for such period. AIG believes it should present and discuss its financial information in a manner most meaningful to its financial statement users. Underwriting profit (loss) is utilized to report results for Chartis operations. Operating income (loss), which is before net realized capital gains (losses) and related DAC and sales inducement asset amortization and goodwill impairment charges, is utilized to report results for SunAmerica operations. Results from discontinued operations and net gains (losses) on sales of divested businesses are excluded from these measures. AIG believes that these measures allow for a better assessment and enhanced understanding of the operating performance of each business by highlighting the results from ongoing operations and the underlying profitability of its businesses. When such measures are disclosed, reconciliations to GAAP pre-tax income are provided. Life and retirement services production (premiums, deposits and other considerations and life insurance CPPE sales) is a non-gaap measure which includes life insurance premiums, deposits on annuity contracts and mutual funds. AIG uses this measure because it is a standard measure of performance used in the insurance industry and thus allows for more meaningful comparisons with AIG s insurance competitors. In light of the company s significant divestiture and restructuring-related activities, AIG revised its definition of after-tax operating income (loss) (formerly adjusted net income) in the fourth quarter of AIG revised the definition in order to present and discuss its financial information in a manner most meaningful to financial statement users. AIG s definition of after-tax operating income (loss) was revised to exclude income (loss) from divested businesses that did not qualify for discontinued operations accounting treatment, amortization of the FRBNY prepaid commitment fee asset, goodwill impairment charges arising from divestiture-related activities, the DAC offset associated with net realized capital gains (losses) for SunAmerica, and deferred income tax valuation allowance charges and releases. AIG believes that this revised measure of after-tax operating income (loss) permits a better assessment and enhanced understanding of the operating performance of its businesses by highlighting the results from ongoing operations and the underlying profitability of its businesses, without the distortive effects of the highly unusual events that have affected AIG since In addition, the DAC offset adjustment is a common adjustment for non-gaap operating financial measures in the life insurance industry, and is a better measure of how AIG assesses the operating performance of SunAmerica s operations. 2

5 Consolidated Statement of Operations (in millions, except per share data) Quarterly Year-to-Date Revenues: Premiums $ 9,829 $ 9,898 $ 9,482 $ 11,366 $ 11,966 $ 29,209 $ 33,953 Policy fees ,024 1,978 Net investment income 128 4,464 5,569 5,462 5,231 10,161 15,472 Net realized capital gains (losses): (1) Total other-than-temporary impairments on available for sale securities (493) (181) (218) (315) (459) (892) (1,397) Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Accumulated other comprehensive income (loss) (217) (345) 130 (595) Net other-than-temporary impairments on available for sale securities recognized in net income (loss) (422) (125) (215) (532) (804) (762) (1,992) Other realized capital gains (losses) (436) 1, Total net realized capital gains (losses) (page 48) (651) 1,307 (661) (173) (1,482) Aircraft leasing revenue 1,129 1,134 1,156 1,140 1,186 3,419 3,609 Other income (1) ,196 1,195 1,060 2,188 2,794 Total revenues (1) 12,716 16,676 17,436 21,202 19,455 46,828 56,324 Benefits, claims and expenses: Policyholder benefits and claims incurred 8,333 8,086 8,959 14,008 10,050 25,378 27,386 Interest credited to policyholder account balances 1,134 1,110 1,105 1,119 1,125 3,349 3,361 Amortization of deferred acquisition costs 2,490 1,786 1,716 1,838 1,994 5,992 5,983 Other acquisition and other insurance expenses 1,214 1,653 1,551 2,841 1,933 4,418 5,247 Interest expense ,061 2,186 2,310 2,974 5,795 Aircraft leasing expenses 2, ,379 1,031 3,390 2,671 Loss on extinguishment of debt (2) , ,392 - Net loss (gain) on sale of properties and divested businesses (3) (17,641) (4) 76 (126) Other expenses ,791 2,559 Total benefits, claims and expenses 17,074 14,870 18,816 6,714 19,149 50,760 52,876 Income (loss) from continuing operations before income tax expense (benefit) (4,358) 1,806 (1,380) 14, (3,932) 3,448 Income tax expense (benefit) (634) (288) (200) 4, (1,122) 1,044 Income (loss) from continuing operations (3,724) 2,094 (1,180) 9,673 (180) (2,810) 2,404 Income (loss) from discontinued operations, net of income tax expense (benefit) (221) (37) 1,653 2,037 (1,833) 1,395 (4,101) Net income (loss) (3,945) 2, ,710 (2,013) (1,415) (1,697) Less: Net income (loss) from continuing operations attributable to noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests ,415 Other (55) Total net income from continuing operations attributable to noncontrolling interests ,658 Net income from discontinued operations attributable to noncontrolling interests Total net income attributable to noncontrolling interests ,693 Net income (loss) attributable to AIG $ (4,109) $ 1,840 $ 269 $ 11,176 $ (2,517) $ (2,000)$ (3,390) Net income (loss) attributable to AIG common shareholders $ (4,109) $ 1,840 $ (543) $ 2,297 $ (2,517) $ (2,812)$ (686) Income (loss) per common share attributable to AIG: Basic: Income (loss) from continued operations $ (2.05) $ 1.03 $ (1.41) $ $ (4.95) $ (2.37) $ 1.11 Income (loss) from discontinued operations $ (0.11) $ (0.03) $ 1.06 $ 3.00 $ (13.58) $ 0.78 $ (6.16) Diluted: Income (loss) from continued operations $ (2.05) $ 1.03 $ (1.41) $ $ (4.95) $ (2.37) $ 1.11 Income (loss) from discontinued operations $ (0.11) $ (0.03) $ 1.06 $ 3.00 $ (13.58) $ 0.78 $ (6.16) Notes: (1) Includes gains (losses) from hedging activities that did not qualify for hedge accounting, including the related foreign exchange gains and losses (Refer to page 7) and other-than-temporary impairment charges. (2) Reflects a $3.3 billion charge in 1Q11, primarily consisting of the accelerated amortization of the prepaid commitment fee asset resulting from the termination of the FRBNY Credit Facility on January 14, (3) Primarily consists of gain on sale of AIA in 4Q

6 Consolidated Statement of Segment Operations (in millions, except per share data) Quarterly Year-to-date Chartis (1) Net premiums written $ 8,659 $ 9,167 $ 9,166 $ 7,578 $ 8,598 $ 26,992 $ 24,034 Net premiums earned 9,043 9,033 8,651 8,550 8,597 26,727 23,971 Claims and claims adjustment expenses incurred 6,838 6,680 7,756 10,724 6,109 21,274 17,143 Underwriting expenses 2,787 2,706 2,537 3,001 2,423 8,030 7,113 Underwriting profit (loss) (582) (353) (1,642) (5,175) 65 (2,577) (285) Net investment income 1,024 1,142 1,179 1,201 1,007 3,345 3,191 Operating income (loss) (463) (3,974) 1, ,906 Net realized capital gains (losses) (37) (207) 143 (12) Other income (loss) (2) (1) (1) 332 Pre-tax income (loss) (416) (3,342) ,226 SunAmerica Financial Group (1) Premiums ,874 1,920 Policy fees ,024 1,978 Net investment income 2,295 2,461 2,754 2,777 2,656 7,510 7,991 Total revenues 3,544 3,805 4,059 4,109 3,924 11,408 11,889 Benefits and expenses 3,100 3,062 2,916 3,066 2,896 9,078 8,884 Operating income ,143 1,043 1,028 2,330 3,005 Benefit (amortization) of DAC, VOBA and SIA related to net realized capital gains (losses) (173) (59) 17 (235) (50) (215) 150 Net realized capital gains (losses) (220) (91) (1,742) Pre-tax income , ,024 1,413 Aircraft Leasing (1) Revenues 1,129 1,134 1,156 1,140 1,186 3,419 3,609 Expenses 2,446 1,048 1,039 1,746 1,404 4,533 3,701 Operating income (loss) (1,317) (606) (218) (1,114) (92) Net realized capital gains (losses) (12) 1 3 (1) 4 (8) (30) Pre-tax income (loss) (1,329) (607) (214) (1,122) (122) Other operations, before net realized capital gains (losses) (1) (4,242) 113 (1,563) 16,195 (1,095) (5,692) (1,210) Other operations, net realized capital gains (losses) (1) 299 (25) (435) 819 (473) (161) 89 Consolidation and elimination adjustments (1) (26) Income (loss) from continuing operations before income tax expense (benefit) (4,358) 1,806 (1,380) 14, (3,932) 3,448 Income tax expense (benefit) (3) (634) (288) (200) 4, (1,122) 1,044 Income (loss) from continuing operations (3,724) 2,094 (1,180) 9,673 (180) (2,810) 2,404 Income (loss) from discontinued operations, net of tax (221) (37) 1,653 2,037 (1,833) 1,395 (4,101) Net income (loss) (3,945) 2, ,710 (2,013) (1,415) (1,697) Less: Net income (loss) from continuing operations attributable to noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests ,415 Other (55) Total net income from continuing operations attributable to noncontrolling interests ,658 Net income from discontinued operations attributable to noncontrolling interests Total net income attributable to noncontrolling interests ,693 Net income (loss) attributable to AIG $ (4,109) $ 1,840 $ 269 $ 11,176 $ (2,517) $ (2,000) $ (3,390) Income (loss) per common share attributable to AIG - diluted: Income (loss) from continuing operations $ (2.05) $ 1.03 $ (1.41) $ $ (4.95) $ (2.37) $ 1.11 Income (loss) from discontinued operations $ (0.11) $ (0.03) $ 1.06 $ 3.00 $ (13.58) $ 0.78 $ (6.16) Effective tax rates (page 5): Income (loss) from continuing operations 14.5% (15.9)% 14.5% 33.2% 158.8% 28.5% 30.3% Return on equity N/M 8.3% 1.3% 53.8% N/M N/M N/M Return on equity excluding AOCI N/M 9.1% 1.4% 63.6% N/M N/M N/M See Accompanying Notes on Pages 6 4

7 After-tax Operating Income (Loss) Attributable to AIG (in millions, except per share data) Quarterly Year-to-date Net income (loss) attributable to AIG $ (4,109) $ 1,840 $ 269 $ 11,176 $ (2,517) $ (2,000) $ (3,390) Adjustments to arrive at After-tax operating income (loss) attributable to AIG (amounts net of tax) : Net income (loss) from discontinued operations (221) (49) 1,646 2,018 (1,845) 1,376 (4,136) Net gain (loss) on sale of divested businesses (1) (1) (47) 13,506 4 (49) 21 Net income (loss) from divested businesses ,398 Deferred income tax valuation allowance (charge)/release (1,177) 570 (563) (1,902) 140 (1,170) 385 Amortization of FRBNY prepaid commitment fee asset - - (2,358) (708) (779) (2,358) (1,547) Net realized capital gains (losses) (387) 317 (461) (90) (1,177) SunAmerica DAC offset related to net realized capital gains (losses) (112) (38) 11 (152) (33) (139) 97 Non-qualifying derivative hedging activities, excluding net realized capital gains (losses) (69) (79) Bargain purchase gain After-tax operating income (loss) attributable to AIG $ (3,038) $ 1,276 $ 2,030 $ (2,214) $ (114) $ 268 $ 1,316 Effective tax rates on After-tax operating income (loss) attributable to AIG (a): 41.1% 14.6% 27.1% 51.5% 75.9% N/M 41.3% Return on equity - After-tax operating income (loss) N/M 6.3% 10.4% N/M N/M 0.4% 2.7% Income (loss) per common share attributable to AIG - diluted: Quarterly Year-to-date (in millions, except share data) After-tax operating income (loss) attributable to AIG $ (3,038) $ 1,276 $ 2,030 $ (2,214) $ (114) $ 268 $ $ 1,316 After-tax operating income allocated to Series C Preferred Stock (1,050) After-tax operating income (loss), applicable to common stock $ (3,038) $ 1,276 $ 2,030 * $ (2,214) $ (114) $ 268 * $ 266 Weighted average shares outstanding 1,899,500,628 1,836,771,513 1,557,863, ,447, ,879,125 1,765,965, ,855,328 After-tax operating income (loss) attributable to AIG per share $ (1.60) $ 0.69 $ 1.30 $ (15.99) $ (0.84) $ 0.15 $ 1.96 * Excludes Allocation to Series C Preferred Stock and deemed dividends recorded of $812 million in the first quarter of 2011 as a result of the Recapitalization. (a) The reconciliation of income attributable to AIG After-tax operating income (loss) and calculation of the effective tax rates is presented below (gains are negative and losses are positive). Three Months Ended September 30, 2011 Nine Months Ended September 30, 2011 Income (loss) Income Tax Net Noncontrolling Net Income (Loss) Effective Income (loss) Income Tax Net Noncontrolling Before Tax (Expense) Benefit Income (loss) Interests attributable to AIG Tax Rate (1) Before Tax (Expense) Benefit Income (loss) Interests Net Income (Loss) attributable to AIG Income (loss) from continuing operations $ (4,358) $ 634 $ (3,724) $ (164) $ (3,888) 14.5% $ (3,932) $ 1,122 $ (2,810) $ (566) $ (3,376) 28.5% Net gains / losses on sale of divested business 2 (1) (27) Net income from divested businesses (16) - (16) - (16) Deferred income tax valuation allowance charge - 1,177 1,177-1,177-1,170 1,170-1,170 Amortization of FRBNY prepaid commitment fee asset ,627 (1,269) 2,358-2,358 Net realized capital gains / losses net of SunAmerica DAC offset (239) 98 (2) (141) - (141) 388 (149) (2) 239 (10) 229 Non-qualifying derivative hedging gains / losses (287) 100 (187) - (187) (224) 78 (146) - (146) After-tax operating income (loss) $ (4,882) $ 2,008 $ (2,874) $ (164) $ (3,038) 41.1% $ (81) $ 925 $ 844 $ (576) $ 268 N/M (1) Effective tax rates are calculated based on Income (loss) from continuing operations. (2) Includes tax effect of pre-tax losses that are not deductible for tax purposes. Effective Tax Rate (1) 5

8 Consolidated Statement of Segment Operations Notes (1) In order to align financial reporting with changes made during 2011 to the manner in which AIG s chief operating decision makers review the businesses to assess performance and make decisions about resources to be allocated, the following changes, which did not affect consolidated results, were made: Chartis - During the third quarter of 2011, Chartis completed the previously announced reorganization of its operations. Under the new structure, Chartis now presents its financial information in two operating segments - Commercial Insurance and Consumer Insurance, as well as a Chartis Other operations category. Prior to the third quarter of 2011, Chartis presented its financial information in two primary operating segments, Chartis U.S. and Chartis International. SunAmerica Financial Group - No changes were made to the SunAmerica Financial Group segment. Aircraft Leasing - Aircraft Leasing is now being presented as a stand-alone reportable segment. It was previously reported as a component of the Financial Services reportable segment. Other Operations The derivatives portfolio of AIG Financial Products Corp. and AIG Trading Group Inc. and their respective subsidiaries (AIGFP), previously reported as Capital Markets, a component of the Financial Services reportable segment, is now reported with AIG Markets, Inc. (AIG Markets) as Global Capital Markets in Other operations. AIG Global Real Estate Investment Corp. and Institutional Asset Management, previously reported as components of the Direct Investment book and Asset Management operations, respectively, are now reported in Corporate & Other. Prior periods have been revised to conform to the current period presentation for the above segment changes. (2) See Page 23 for additional information. (3) The tax benefit was primarily due to a decrease in the valuation allowance attributable to the anticipated inclusion of the ALICO SPV within the U.S. consolidated income tax group, tax effects associated with tax exempt interest income, investments in partnerships, and effective settlements of certain uncertain tax positions, partially offset by an increase in the valuation allowance attributable to continuing operations. 6

9 Summary of Non-Qualifying Derivative Hedging Activities (1) Continuing Operations (in millions) Net Realized Capital Gains (Losses) Other Line Items (2) Three Months Ended Year-to-date Three Months Ended Year-to-date Changes in Fair Values of Hedges of Assets and Liabilities, including Hedges of Embedded Derivatives: Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30, Sept. 30, June 30, Sept. 30, Sept. 30, Reported in Segment Results: Chartis $ 109 $ 32 $ 8 $ 92 $ 33 $ - $ - $ - $ - $ - SunAmerica Financial Group (3) 663 (198) (216) (7) Aircraft Leasing - (1) (1) (1) (29) - (269) Other (4) (190) 1, (26) Consolidation Adjustments: Elimination of Global Capital Markets internal trades (5) (145) (350) 67 (102) (67) 102 (232) Other eliminations (6) (222) 19 (251) (24) (20) 82 Consolidated pre-tax effect (121) Consolidated after-tax effect (79) Changes in Fair Values of Embedded Derivatives whose Hedges are a Component of the Above: Chartis $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - SunAmerica Financial Group (7) (938) 41 (31) (887) (680) Aircraft Leasing Other (1) Intercompany transactions and reclassifications (1) Consolidated pre-tax effect (938) 41 (30) (887) (678) Consolidated after-tax effect (610) 27 (20) (577) (440) Total pre-tax effect (337) (74) (59) Total after-tax effect $ (219) $ 366 $ 95 $ (48) $ 58 $ 206 $ 138 $ 45 $ 198 $ (39) Notes: (1) This schedule provides a decomposition of the Derivative Instrument effects on the financial statements. These results are not adjusted to reflect situations where there is a natural offset between the exposure and derivative; or, in situations where the hedged item is also recorded into earnings as part of a hedge relationship. (2) Primarily Other income. These amounts are subtracted from Net Income (Loss) attributable to AIG to arrive at After-Tax Operating Income. (3) Primarily equity and interest rate hedges of embedded derivatives. (4) Primarily hedges of interest rate and foreign exchange risk at Parent, Global Capital Markets, the Matched Investment Program (MIP) and MetLife Warrants received in connection with the sale of ALICO to MetLife. Results for 2010 also reflect hedging activities related to AIA prior to its sale. (5) Global Capital Markets has acted as an intermediary between the segments and third parties. This item eliminates the internal arrangements, so that only the third party trade is reported in consolidation. (6) This item primarily eliminates the differences associated between hedge accounting treatment at the segment level versus the consolidated level. (7) Primarily derivatives embedded in variable annuity life products whose payoff is indexed to movements in the S&P index and interest rates. 7

10 Condensed Consolidating Balance Sheet September 30, 2011 (in millions) SunAmerica Other Consolidation Chartis Financial Group Aircraft Leasing UGC Operations (4) & Eliminations (1) AIG Inc. Assets: Investments: Fixed maturity securities Bonds available for sale, at fair value $ 101,367 $ 153,147 $ - $ 3,027 $ 2,288 $ - $ 259,829 Bonds trading securities, at fair value (2) 97 1, ,984-24,654 Equity securities Common and preferred stock available for sale, at fair value 2, ,209 Common and preferred stock trading, at fair value Mortgage and other loans receivable, net of allowance 2,706 21, ,389 (10,909) 19,279 Flight equipment primarily under operating leases, net of accumulated depreciation , ,758 Other invested assets (3) (page 47) 12,986 12, ,777 (630) 41,131 Short-term investments 8,302 3, ,609-29,098 Total investments 128, ,237 36,700 4,026 63,645 (11,539) 413,106 Cash ,542 Premiums and other receivables, net of allowance 12,086 1, ,927 (871) 15,590 Reinsurance assets, net of allowance 28,674 1, ,411 Deferred policy acquisition costs 5,462 8, ,192 Other assets 8,464 12, (28) 104,648 (105,180) 21,304 Separate account assets, at fair value - 48, ,112 Total assets $ 183,454 $ 264,682 $ 37,785 $ 4,336 $ 171,553 $ (117,553) $ 544,257 Liabilities: Liability for unpaid claims and claims adjustment expense $ 90,700 $ - $ - $ 1,596 $ 1,667 $ (181) $ 93,782 Unearned premiums 25, ,951 Future policy benefits for life and accident and health insurance contracts 3,238 30, (25) 33,600 Policyholder contract deposits - 126, (93) 125,955 Other policyholder funds 4,091 2, ,655 Other liabilities 10,081 18,983 6, ,682 (4,129) 36,603 Long-term debt (page 10) 558 2,044 (6) 23,401-61,788 (10,402) 77,389 Separate account liabilities - 48, ,112 Total liabilities $ 134,392 $ 227,798 $ 30,257 $ 1,911 $ 68,519 $ (14,830) $ 448,047 Redeemable noncontrolling nonvoting, callable, junior preferred interests held by Department of Treasury ,303 9,303 Other redeemable noncontrolling interests Total redeemable noncontrolling interests ,378 9,408 AIG shareholders' equity: Preferred stock ,288 (9,289) - Common stock , ,342 (15,997) 4,764 Treasury stock, at cost (872) - (872) Additional paid-in capital 21,707 40,751 1,244 1,507 72,474 (55,907) 81,776 Accumulated earnings (deficit) 23,397 (8,914) 5, (6,689) (19,229) (5,466) Accumulated other comprehensive income (loss) (5) 3,571 4,938 (22) 97 8,396 (11,151) 5,829 Total AIG shareholders' equity 48,937 36,875 7,428 2, ,939 (111,573) 86,031 Non-redeemable noncontrolling interests ,095 (528) 771 Total equity 49,032 36,884 7,528 2, ,034 (112,101) 86,802 Total liabilities and equity $ 183,454 $ 264,682 $ 37,785 $ 4,336 $ 171,553 $ (117,553) $ 544,257 Notes: (1) Segment amounts are presented on an AIG stand alone basis prior to intercompany eliminations. (2) Includes interest in Maiden Lane II of $1.3 billion reported in SunAmerica Financial Group and interest in Maiden Lane III of $5.5 billion, reported in Other operations. (3) Includes AIG's remaining 33% interest in AIA with a total carrying value of $11.3 billion and reported in Other operations. (4) Primarily represents Parent Company (including the tax valuation allowance), Global Capital Markets, Direct Investment book, SAFG, Inc. (a non-operating holding company), and the AIA SPV. (5) For U.S. tax purposes, SunAmerica Financial Group has approximately $11.0 billion of gross unrealized gains in its available for sale portfolio which, if realized, can be used to reduce a portion of capital loss deferred tax asset totaling $21.7 billion. (6) Consists primarily of intercompany debt which is eliminated in consolidation. 8

11 Condensed Consolidating Balance Sheet December 31, 2010 (in millions) SunAmerica Other Consolidation Chartis Financial Group Aircraft Leasing UGC Operations (5) & Eliminations (1) AIG Inc. Assets: Investments: Fixed maturity securities Bonds available for sale, at fair value $ 88,904 $ 128,347 $ - $ 3,214 $ 7,837 $ - $ 228,302 Bonds trading securities, at fair value (2) - 1, ,875-26,182 Equity securities Common and preferred stock available for sale, at fair value 3, ,581 Common and preferred stock trading, at fair value (3) ,651-6,652 Mortgage and other loans receivable, net of allowance 2,892 21, ,075 (11,349) 20,237 Flight equipment primarily under operating leases, net of accumulated depreciation , ,510 Other invested assets (4) (page 47) 15,250 12, ,438 (2,470) 42,210 Short-term investments 11,799 19,144 3,058 1,024 8,713-43,738 Total investments 122, ,490 41,704 4,242 72,123 (13,819) 410,412 Cash ,558 Premiums and other receivables, net of allowance 11,864 1, ,938 (601) 15,713 Reinsurance assets, net of allowance 24,047 1, (1) 25,810 Deferred policy acquisition costs 4,972 9, ,668 Other assets 8,581 11, ,893 (85,656) 53,397 Separate account assets, at fair value - 54, ,432 Assets held for sale , ,453 Total assets $ 172,708 $ 261,505 $ 43,158 $ 5,470 $ 300,637 $ (100,035) $ 683,443 Liabilities: Liability for unpaid claims and claims adjustment expense $ 87,455 $ - $ - $ 2,438 $ 1,469 $ (211) $ 91,151 Unearned premiums 23, ,803 Future policy benefits for life and accident and health insurance contracts 2,867 28, (26) 31,268 Policyholder contract deposits - 121, ,373 Other policyholder funds 4,176 2, ,758 Other liabilities 8,694 17,802 7, ,611 (2,704) 37,212 Long-term debt (page 10) 193 2,235 (7) 27,720-87,216 (10,903) 106,461 Separate account liabilities - 54, ,432 Liabilities held for sale , ,312 Total liabilities $ 126,959 $ 226,574 $ 34,921 $ 3,222 $ 191,926 $ (13,832) $ 569,770 Redeemable noncontrolling interests AIG shareholders' equity: Preferred stock ,994 (28,011) 71,983 Common stock , ,349 (17,288) 368 Treasury stock, at cost (873) - (873) Additional paid-in capital 16,755 40,479 1,240 1,506 5,502 (55,799) 9,683 Accumulated earnings (deficit) 25,866 (8,963) 5, (35,947) 8,994 (3,466) Accumulated other comprehensive income (loss) (6) 2,095 3,304 (55) 52 22,776 (20,548) 7,624 Total AIG shareholders' equity 44,863 34,922 8,137 2, ,801 (112,652) 85,319 Non-redeemable noncontrolling interests ,223 27,920 Total equity 45,554 34,931 8,237 2, ,698 (86,429) 113,239 Total liabilities and equity $ 172,708 $ 261,505 $ 43,158 $ 5,470 $ 300,637 $ (100,035) $ 683,443 Notes: (1) Segment amounts are presented on an AIG stand alone basis prior to intercompany eliminations. (2) Includes interest in Maiden Lane II of $1.3 billion reported in SunAmerica Financial Group and interest in Maiden Lane III of $6.3 billion, reported in Other operations. (3) Includes MetLife securities received as consideration for ALICO sale of $6.5 billion at December 31, 2010 reported in Other operations. (4) Includes AIG's remaining 33% interest in AIA with a total carrying value of $11.1 billion and reported in Other operations. (5) Primarily represents Parent Company (including the tax valuation allowance), Global Capital Markets, Direct Investment Book, SAFG, Inc. (a non-operating holding company), ALICO SPV and AIA SPV and held for sale businesses. (6) For U.S. tax purposes, SunAmerica Financial Group has approximately $6.4 billion of gross unrealized gains in its available for sale portfolio which, if realized, can be used to reduce a portion of capital loss deferred tax assets totaling $23.1 billion. (7) Consists primarily of intercompany debt which is eliminated in consolidation. 9

12 Debt and Capital Debt and Hybrid Capital Interest Expense Sept. 30, Dec. 31, Inc. Three Months Ended Nine Months Ended (Dec.) Sept. 30, 2011 Sept. 30, 2010 Sept. 30, 2011 Sept. 30, 2010 Financial debt: FRBNY Credit Facility (a) $ - $ 20,985 NM% $ - $ 1,319 $ 72 $ 2,907 AIG notes and bonds payable 11,553 11, AIG loans and mortgage payable SAFG, Inc. notes and bonds payable Liabilities connected to trust preferred stock 1,339 1, AIG Funding loans to subsidiaries- net - (376) NM - - (b) - - (b) Total 13,420 33,975 (60.5) 184 1, ,396 Operating debt: MIP notes payable 11,283 11,318 (0.3) Series AIGFP matched notes and bonds payable 3,873 3,981 (2.7) Other AIG borrowings supported by assets (c) 11,239 12,143 (7.4) ILFC borrowings 23,381 27,699 (15.6) , Other subsidiaries (9.9) Borrowings of consolidated investments 2,032 2,614 (22.3) AIG Funding loans to subsidiaries- net NM - - (b) - - (b) Total 52,210 58,577 (10.9) ,655 1,538 Hybrid - debt securities: Junior subordinated debt 11,759 11, Hybrid - mandatorily convertible units: Junior subordinated debt attributable to equity units - 2,169 NM Total $ 77,389 $ 106,461 (27.3)% $ 945 $ 2,329 $ 2,976 $ 5,852 Interest expense reported in discontinued operations - (19) (2) (57) Interest expense on consolidated income statement $ 945 $ 2,310 $ 2,974 $ 5,795 AIG capitalization: Total equity $ 86,802 (d) $ 113,239 (23.3)% Hybrid - debt securities (e) 11,759 11, Hybrid - mandatorily convertible units (e) - 2,169 NM Total consolidated equity and hybrid capital 98, ,148 (22.5) Financial debt 13,420 33,975 (60.5) Total capital $ 111,981 $ 161,123 (30.5)% Ratios: Total equity / Total capital 77.5% 70.3% Hybrid - debt securities / Total capital 10.5% 7.3% Hybrid - mandatorily convertible units / Total capital 0.0% 1.3% Financial debt / Total capital 12.0% 21.1% Notes: (a) Repaid in full on January 14, 2011 following AIG's recapitalization. See page 11. (b) Amounts are eliminated in consolidation. (c) Borrowings are carried at fair value with fair value adjustments reported in Other income (loss) on the Consolidated Statement of Operations. Contractual interest payments amounted to $277 million for the nine months ended September 30, 2011 and $424 million for the twelve months ended December 31, (d) As a result of the closing of the Recapitalization on January 14, 2011, the SPV noncontrolling interests are no longer considered permanent equity on AIG's Consolidated Balance Sheet, and are classified as redeemable noncontrollling interest. (e) The equity units and junior subordinated debentures receive hybrid equity treatment from the major rating agencies under their current policies but are recorded as long-term borrowings on the consolidated balance sheet. In 2011, AIG remarketed three series of debentures representing $2.2 billion in aggregate principal and as a result, no debentures relating to the equity units remain outstanding. 10

13 as of 6/30/2011 as of 9/30/2011 Understanding AIG s Relationship with the U.S. Government AIG executed its recapitalization plan with the U.S. Government on January 14, During the second quarter 2011, AIG and the Treasury Department completed the public offering of 300 million shares of AIG common stock, with 100 million shares issued and sold by AIG and 200 million shares sold by the Treasury Department. AIG will continue to work with the Treasury Department to help it monetize and exit its equity ownership over time. Repaid or Exchanged Total outstanding assistance, excluding common stock $32.4 billion $27.4 billion Common stock owned by U.S. Treasury Department billion shares billion shares $20.9 $11.5 ML II & ML III** PREFERRED INTERESTS to be repaid by AIG Repaid or Exchanged $18.1 $9.3 ML II & ML III* PREFERRED INTERESTS to be repaid by AIG Outstanding debt and SPV preferred interests to be repaid by AIG $11.5 billion $9.3 billion The difference between the government assistance outstanding and the balance to be repaid is attributable to the outstanding on the Maiden Lane II and III loans.the Maiden Lane II and III loans are non-recourse to AIG. PREFERRED INTERESTS Redeemable Non-Controlling Interests in the AIA and ALICO SPVs held by the Treasury Department (Repaid and retired in part) AIG paid down and retired approximately $6.1 billion of the FRBNY s preferred interests in the AIA and ALICO SPVs, using cash proceeds from the AIA IPO and the ALICO sale. As part of the January 14, 2011 recapitalization, AIG purchased the remainder of the FRBNY preferred interests (drawing the balance of the Treasury Department then-outstanding TARP Series F Preferred Shares commitment) and transferred those interests, totaling $20.3 billion, to the Treasury Department. AIG reduced the SPV balances further in February 2011 when AIG paid the Treasury Department approximately $2.2 billion from the sale of AIG Star Life Insurance Co., Ltd. and AIG Edison Life Insurance Company; in March 2011 when AIG paid the Treasury Department approximately $6.9 billion from proceeds of the sales of MetLife securities received in the ALICO sale, fully repaying the ALICO SPV liquidation preference; and in August 2011 when AIG paid the Treasury Department approximately $2.0 billion from the proceeds of the sale of Nan Shan Life Insurance Company, Ltd. The Treasury Department is expected to be repaid in full over time from the proceeds of asset sales. FRBNY Investment in AIG-related RMBS Maiden Lane II SPV ($22.5 billion originally authorized) In November 2008, FRBNY created this SPV to provide AIG liquidity by purchasing residential mortgage-backed securities from AIG life insurance and retirement services companies. FRBNY provided a loan to Maiden Lane II for the purchases. It also terminated a previously established securities lending arrangement with AIG. The original amount funded by the FRBNY was $19.5 billion. Loans to ML II are being repaid with the proceeds from the interest and principal payments and/or from the liquidation of the assets in the facility. FRBNY Investment in AIG-related CDOs Maiden Lane III SPV ($30 billion originally authorized) In November 2008, FRBNY created this SPV to provide AIG liquidity by purchasing collateralized debt obligations (CDOs) from AIG Financial Products Corp. counterparties in connection with the termination of credit default swaps (CDSs) and surrender of the collateral by AIGFP. FRBNY provided a loan to the SPV for the purchases. The original amount funded by the FRBNY was $24.3 billion. Loans to ML III are being repaid with the proceeds from the interest and principal payments and/or from the liquidation of the assets in the facility. $11.5 billion $8.6 billion** $12.3 billion** $9.3 billion $7.2 billion* $10.9 billion* * As of September 28, 2011 Source: Federal Reserve Statistical Release, issued September 29, ** As of June 29, 2011 Source: Federal Reserve Statistical Release, issued June 30, 2011

14 Book Value per Common Share (dollars in millions, except share amounts) (2 3) (2) Book Value Per Share, (1) Total AIG Shareholders' (3) (1 3) Excluding Accumulated Total AIG Equity, Excluding Total Common Book Value Other Comprehensive Shareholders' Accumulated Other Shares Per Share Income (Loss) Equity Comprehensive Income (Loss) Outstanding December 31, 2010 $ (a) $ $ 85,319 $ 77, ,463,159 March 31, (a) ,026 78,130 1,796,719,943 (a) June 30, (a) ,681 83,588 1,897,960,361 September 30, ,031 80,202 1,899,209,621 Notes: (a) On January 14, 2011, the Series E and F Preferred Stock were exchanged for AIG Common Stock and retired in connection with the Recapitalization. The pro forma book value per share giving effect to the Recapitalization as well as the conversion of equity units was $49.18, $48.06 and $46.80 at June 30, 2011, March 31, 2011 and December 31, 2010, respectively. 12

15 Chartis Operating Statistics Quarterly Year-to-date Net premiums written $ 8,659 $ 9,167 $ 9,166 $ 7,578 $ 8,598 $ 26,992 $ 24,034 Net premiums earned 9,043 9,033 8,651 8,550 8,597 26,727 23,971 Claims and claims adjustment expenses incurred (1) 6,838 6,680 7,756 10,724 6,109 21,274 17,143 Underwriting expenses 2,787 2,706 2,537 3,001 2,423 8,030 7,113 Underwriting profit (loss) (582) (353) (1,642) (5,175) 65 (2,577) (285) Net investment income Interest and dividends ,779 2,568 Partnership income Mutual funds (15) (13) 35 (39) Other investment income (2) Investment expense (57) (50) (62) (74) 14 (169) (88) Total 1,024 1,142 1,179 1,201 1,007 3,345 3,191 Operating income (loss) before net realized capital gains (losses), bargain purchase gain and gain on sale of properties (463) (3,974) 1, ,906 Net realized capital gains (losses) (37) (207) 143 (12) Bargain purchase gain (3) Gain on sale of properties (4) Other loss (1) (1) - Pre-tax income (loss) $ 498 $ 828 $ (416) $ (3,342) $ 865 $ 910 $ 3,226 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Foreign exchange effect on worldwide premium: Change in net premiums written Increase / (decrease) in original currency (5) (3.5)% 13.6 % 18.7 % 7.8 % 5.5 % 9.1 % (0.3) % Foreign exchange effect Increase / (decrease) as reported in US $ 0.7 % 17.6 % 19.9 % 9.4 % 6.5 % 12.3 % 1.3 % Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 605 $ 525 $ 1,688 $ 203 $ 72 $ 2,818 $ 863 Reinstatement premium related to catastrophes (31) Prior year loss reserve development (favorable) / unfavorable , Returned / (additional) premium related to prior year development (25) (91) (37) (26) (40) (153) 18 Net loss and loss expense reserve (at period end) $ 70,729 $ 70,555 $ 70,201 $ 68,074 $ 63,708 $ 70,729 $ 63,708 See Accompanying Notes on Page 23 13

16 Chartis Commercial Operating Statistics Quarterly Year-to-date Net premiums written $ 5,293 $ 5,845 $ 5,821 $ 4,526 $ 5,335 $ 16,959 $ 15,940 Net premiums earned 5,708 5,732 5,379 5,298 5,427 16,819 16,174 Claims and claims adjustment expenses incurred 4,668 4,524 5,224 6,781 4,030 14,416 12,287 Underwriting expenses 1,514 1,418 1,340 1,692 1,332 4,272 4,060 Underwriting profit (loss) (474) (210) (1,185) (3,175) 65 (1,869) (173) Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 483 $ 456 $ 1,199 $ 203 $ 67 $ 2,138 $ 797 Reinstatement premium related to catastrophes (31) Prior year loss reserve development (favorable) / unfavorable 15 (48) (21) 2, (54) (81) Returned / (additional) premium related to prior year development (25) (91) (37) (26) (40) (153) 18 Net loss and loss expense reserve (at period end) $ 59,168 $ 59,243 $ 59,021 $ 57,344 $ 54,837 $ 59,168 $ 54,837 See Accompanying Notes on Page 23 14

17 Chartis Consumer Operating Statistics Quarterly Year-to-date Net premiums written $ 3,365 $ 3,317 $ 3,320 $ 3,039 $ 3,223 $ 10,002 $ 8,017 Net premiums earned 3,322 3,278 3,249 3,229 3,148 9,849 7,730 Claims and claims adjustment expenses incurred 2,143 2,076 2,479 2,046 1,940 6,698 4,640 Underwriting expenses 1,224 1,207 1,135 1,237 1,061 3,566 2,934 Underwriting profit (loss) (45) (5) (365) (54) 147 (415) 156 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 122 $ 69 $ 489 $ - $ 5 $ 680 $ 66 Reinstatement premium related to catastrophes Prior year loss reserve development (favorable) / unfavorable (1) (35) (8) 57 (30) Returned / (additional) premium related to prior year development Net loss and loss expense reserve (at period end) $ 5,853 $ 5,590 $ 5,514 $ 5,030 $ 5,070 $ 5,853 $ 5,070 See Accompanying Notes on Page 23 15

18 Chartis Other Operating Statistics Quarterly Year-to-date Net premiums written $ 1 $ 5 $ 25 $ 13 $ 40 $ 31 $ 77 Net premiums earned Claims and claims adjustment expenses incurred , Underwriting expenses Underwriting loss (63) (138) (92) (1,946) (147) (293) (268) Net investment income 1,024 1,142 1,179 1,201 1,007 3,345 3,191 Operating income (loss), before net realized capital gains, bargain purchase gain and gain on sale of properties 961 1,004 1,087 (745) 860 3,052 2,923 Net realized capital gains (losses) (37) (207) 143 (12) Bargain purchase gain Gain on sale of properties Other loss (1) (1) - Pre-tax income (loss) $ 1,017 $ 1,043 $ 1,134 $ (113) $ 653 $ 3,194 $ 3,243 Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ - $ - $ - $ - $ - $ - $ - Reinstatement premium related to catastrophes Prior year loss reserve development (favorable) / unfavorable , Returned / (additional) premium related to prior year development Net loss and loss expense reserve (at period end) $ 5,708 $ 5,722 $ 5,666 $ 5,700 $ 3,801 $ 5,708 $ 3,801 See Accompanying Notes on Page 23 16

19 Chartis U.S. Operating Statistics Quarterly Year-to-date Net premiums written $ 4,359 $ 4,957 $ 4,128 $ 3,982 $ 4,740 $ 13,444 $ 13,265 Net premiums earned 4,616 4,689 4,482 4,444 4,637 13,787 13,779 Claims and claims adjustment expenses incurred 4,110 3,940 4,103 7,579 3,698 12,153 10,935 Underwriting expenses 1,132 1,063 1,095 1,335 1,022 3,290 3,336 Underwriting loss (626) (314) (716) (4,470) (83) (1,656) (492) Net investment income Interest and dividends ,983 1,936 Partnership income Mutual funds (11) Other investment income (2) Investment expense (38) (39) (45) (55) 28 (122) (44) Net investment income ,497 2,519 Operating income (loss) before net realized capital gains (losses) (3,531) ,027 Net realized capital gains (losses) (185) 193 (249) Other loss (1) (1) - Pre-tax income (loss) $ 177 $ 632 $ 224 $ (3,478) $ 517 $ 1,033 $ 1,778 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses 480 $ 397 $ 529 $ 77 $ 47 $ 1,406 $ 480 Reinstatement premium related to catastrophes (4) 1 (4) - - (7) - Prior year loss reserve development (favorable) / unfavorable , Returned / (additional) premium related to prior year development (25) (91) (37) (26) (40) (153) 18 See Accompanying Notes on Page 23 17

20 Chartis U.S. - Operating Statistics by Business Commercial Insurance Quarterly Year-to-date Net premiums written $ 3,543 $ 4,201 $ 3,344 $ 3,288 $ 3,853 $ 11,088 $ 10,671 Net premiums earned 3,805 3,857 3,678 3,660 3,826 11,340 11,322 Claims and claims adjustment expenses incurred 3,490 3,351 3,556 5,290 3,051 10,397 9,176 Underwriting expenses ,412 2,435 Underwriting profit (loss) (535) (248) (686) (2,611) 7 (1,469) (289) Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Consumer Insurance Quarterly Year-to-date Net premiums written $ 815 $ 751 $ 759 $ 681 $ 847 $ 2,325 $ 2,517 Net premiums earned ,387 2,389 Claims and claims adjustment expenses incurred ,639 1,584 Underwriting expenses Underwriting profit (loss) (61) (6) 6 (95) 13 (61) (5) Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Chartis Other Quarterly Year-to-date Net premiums written $ 1 $ 5 $ 25 $ 13 $ 40 $ 31 $ 77 Net premiums earned Claims and claims adjustment expenses incurred , Underwriting expenses Underwriting loss (30) (60) (36) (1,764) (103) (126) (198) Net investment income ,497 2,519 Operating income before net realized capital gains (losses) (825) 682 2,371 2,321 Net realized capital gains (losses) (185) 193 (249) Other loss (1) (1) - Pre-tax income (loss) $ 773 $ 886 $ 904 $ (772) $ 497 $ 2,563 $ 2,072 Total Chartis Quarterly Year-to-date Net premiums written $ 4,359 $ 4,957 $ 4,128 $ 3,982 $ 4,740 $ 13,444 $ 13,265 Net premiums earned 4,616 4,689 4,482 4,444 4,637 13,787 13,779 Claims and claims adjustment expenses incurred 4,110 3,940 4,103 7,579 3,698 12,153 10,935 Underwriting expenses 1,132 1,063 1,095 1,335 1,022 3,290 3,336 Underwriting loss (626) (314) (716) (4,470) (83) (1,656) (492) Net investment income ,497 2,519 Operating income before net realized capital gains (losses) (3,531) ,027 Net realized capital gains (losses) (185) 193 (249) Other loss (1) (1) - Pre-tax income (loss) (3,478) 517 1,033 1,778 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development See Accompanying Notes on Page 23 18

21 Chartis International Operating Statistics Quarterly Year-to-date Net premiums written $ 4,300 $ 4,210 $ 5,038 $ 3,596 $ 3,858 $ 13,548 $ 10,769 Net premiums earned 4,427 4,344 4,169 4,106 3,960 12,940 10,192 Claims and claims adjustment expenses incurred (1) 2,728 2,740 3,653 3,145 2,411 9,121 6,208 Underwriting expenses 1,655 1,643 1,442 1,666 1,401 4,740 3,777 Underwriting profit (loss) 44 (39) (926) (705) 148 (921) 207 Net investment income Interest and dividends Partnership income Mutual funds (15) (32) 35 (28) Other investment income (2) Investment expense (19) (11) (17) (19) (14) (47) (44) Net investment income Operating income (loss), before net realized capital gains (losses), bargain purchase gain and gain on sale of properties (621) (443) 370 (73) 879 Net realized capital gains (losses) 22 (53) (19) (90) (22) (50) 237 Bargain purchase gain (3) Gain on sale of properties (4) Pre-tax income (loss) (6) $ 321 $ 196 $ (640) $ 136 $ 348 $ (123) $ 1,448 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Foreign exchange effect on Chartis International's premium: Change in net premiums written Increase / (decrease) in original currency (5) 2.1 % 27.7 % 28.1 % 28.6 % 23.0 % 18.6 % 8.5 % Foreign exchange effect Increase / (decrease) as reported in US $ 11.5 % 37.9 % 30.6 % 32.7 % 25.7 % 25.8 % 12.5 % Pre-tax catastrophe-related losses and prior year loss reserve development: Pre-tax catastrophe-related losses $ 125 $ 128 $ 1,159 $ 126 $ 25 $ 1,412 $ 383 Reinstatement premium related to catastrophes (27) Prior year loss reserve development (favorable) / unfavorable 17 (4) (50) (37) (18) See Accompanying Notes on Page 23 19

22 Chartis International - Operating Statistics by Business Commercial Insurance Quarterly Year-to-date Net premiums written $ 1,750 $ 1,644 $ 2,477 $ 1,238 $ 1,482 $ 5,871 $ 5,269 Net premiums earned 1,903 1,875 1,701 1,638 1,601 5,479 4,852 Claims and claims adjustment expenses incurred 1,178 1,173 1,668 1, ,019 3,111 Underwriting expenses ,860 1,625 Underwriting profit (loss) (499) (564) 58 (400) 116 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Consumer Insurance Quarterly Year-to-date Net premiums written $ 2,550 $ 2,566 $ 2,561 $ 2,358 $ 2,376 $ 7,677 $ 5,500 Net premiums earned 2,524 2,469 2,469 2,468 2,359 7,462 5,341 Claims and claims adjustment expenses incurred 1,544 1,543 1,972 1,506 1,396 5,059 3,056 Underwriting expenses ,757 2,124 Underwriting profit (loss) 16 1 (371) (354) 161 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development Chartis Other Quarterly Year-to-date Net premiums written $ - $ - $ - $ - $ - $ - $ - Net premiums earned - - (1) - - (1) (1) Claims and claims adjustment expenses incurred Underwriting expenses Underwriting loss (33) (78) (56) (182) (44) (167) (70) Net investment income Operating income before net realized capital gains (losses) Net realized capital gains (losses) 22 (53) (19) (90) (22) (50) 237 Bargain purchase gain Gain on sale of properties Pre-tax income (loss) $ 244 $ 157 $ 230 $ 659 $ 156 $ 631 $ 1,171 Total Chartis Quarterly Year-to-date Net premiums written $ 4,300 $ 4,210 $ 5,038 $ 3,596 $ 3,858 $ 13,548 $ 10,769 Net premiums earned 4,427 4,344 4,169 4,106 3,960 12,940 10,192 Claims and claims adjustment expenses incurred 2,728 2,740 3,653 3,145 2,411 9,121 6,208 Underwriting expenses 1,655 1,643 1,442 1,666 1,401 4,740 3,777 Underwriting profit (loss) 44 (39) (926) (705) 148 (921) 207 Net investment income Operating income before net realized capital gains (losses) (621) (443) 370 (73) 879 Net realized capital gains (losses) 22 (53) (19) (90) (22) (50) 237 Bargain purchase gain Gain on sale of properties Pre-tax income (loss) $ 321 $ 196 $ (640) $ 136 $ 348 $ (123)$ 1,448 Underwriting ratios: Loss ratio Expense ratio Combined ratio Combined ratio excluding significant current year catastrophe-related losses Combined ratio excluding significant current year catastrophe-related losses and prior year loss development See Accompanying Notes on Page 23 20

23 American International Group, Inc Chartis - Worldwide Net Premiums Written (NPW) by Line of Business & Region 3Q11 Worldwide NPW by Line of Business = $8,659 3Q11 Worldwide NPW by Region = $8,659 Property 12% Financial Lines 11% Specialty 10% Commercial Commercial 61% 64% Casualty 28% A&H 18% Consumer 39% Consumer 36% Life 2% Personal Lines 19% Far East 24% Growth Economies 11% Europe 15% U.S. & Canada 50% 3Q10 Worldwide NPW by Line of Business = $8,598 3Q10 Worldwide NPW by Region = $8,598 Financial Lines 11% Property 10% Specialty 9% Commercial Commercial 64% 62% A&H 17% Consumer 38% Personal Lines 19% Far East 22% Growth Economies 9% Casualty 32% Consumer 36% Life 2% Europe 14% U.S. & Canada 55% 21

24 American International Group, Inc Chartis - U.S. and International Net Premiums Written (NPW) by Line of Business 3Q11 U.S. NPW by Line of Business = $4,359 3Q11 International NPW by Line of Business = $4,300 Property 11% Specialty 12% A&H 10% Personal Lines 9% Property 13% Specialty 8% A&H 27% Financial Lines 9% Financial Lines 14% Casualty 44% Casualty 11% Life 4% Personal Lines 28% 3Q10 U.S. NPW by Line of Business = $4,740 3Q10 International NPW by Line of Business = $3,858 Property 8% Specialty 11% A&H 9% Personal Lines 9% Property 12% Specialty 7% A&H 27% Financial Lines 9% Financial Lines 13% Soft +40% MarketCAGR Hard Market Soft Market Casualty -20% CAGR 10% Casualty 50% Life 4% -1% CAGR Personal Lines 31% 22

25 Chartis Notes Chartis, AIG s property and casualty insurance operation, manages its business in two operating segments Commercial Insurance and Consumer Insurance, as well as a Chartis Other category. Chartis is managed in four principal regions: U.S./Canada, Europe, Japan, and Growth Economies (which primarily includes Asia Pacific, the Middle East, and Latin America). Commercial Insurance is distributed primarily through insurance brokers to businesses. Major lines of businesses include property, casualty, financial and specialty (including aerospace, environmental, marine, export credit and political risk coverages, and various product offerings to small and medium enterprises (SME)). Consumer Insurance primarily sells its products to individual consumers or groups of consumers through individual agents, brokers, and on a direct-to-customer basis. Offerings within Consumer Insurance include accident and health (A&H), personal property and casualty lines, and life insurance. Chartis Other consists primarily of certain run-off lines of business, including Excess Workers Compensation and Asbestos, certain Chartis expenses relating to global initiatives, expense allocations from AIG Parent not attributable to the Commercial Insurance or Consumer Insurance operating segments, net investment income, realized capital gains and losses, bargain purchase gains relating the purchase of Fuji Fire and Marine Insurance Company Limited (Fuji) and gains relating to the sale of properties. Chartis has historically assessed the performance of these operating segments based on underwriting income, but is implementing a risk-adjusted-return model which will serve as its primary business performance measure once fully deployed. This model incorporates elements of capital allocations, costs of capital, and components of net investment income. Once fully applied, net investment income will be included in each of the Chartis operating segment results. Currently, net investment income is included only in the Chartis Other operating segment. Management expects that the risk-adjusted-return model will be fully implemented in the first quarter of During the first quarter of 2011, as part of its on-going initiatives to reduce exposure to capital intensive long-tail lines, Chartis determined to cease writing Excess Workers Compensation business as a stand-alone product. Based on this decision, Chartis further determined that this legacy line would be included in Chartis Other and not included in the ongoing Commercial Insurance operating results. As it relates to asbestos, beginning in 1985, standard Chartis policies contained an absolute exclusion for asbestos related exposure. Asbestos has historically been included in Chartis Other. On June 17, 2011 and retroactive to January 1, 2011, Chartis completed a transaction with National Indemnity Insurance Company (NICO) under which a majority of the Chartis domestic asbestos exposures were transferred to NICO. Chartis paid NICO $1.67 billion as consideration for this transfer and NICO assumed $1.82 billion of net asbestos liabilities, with an aggregate limit of $3.5 billion. As a result, Chartis recorded a deferred gain of approximately $150 million in the second quarter of 2011, which is being amortized into the Chartis Other operating results as the underlying claims are settled. (1) Results include changes in future policy benefits for certain A&H insurance contracts and Fuji life insurance. (2) Other investment income is comprised principally of real estate income, changes in market value, and income (loss) from equity method investments. (3) Bargain purchase gain of $332 million related to the acquisition of Fuji on March 31, (4) In May 2009, AIG completed the sale of its interest in the AIG Otemachi Building in Japan, including the lands and development rights. Approximately fifty percent of these interests were held by Chartis subsidiaries with the remainder held by Asset Management and included in AIG s Other operations category. Although the transaction qualified as a legal sale, it did not qualify as a sale for U.S. GAAP purposes due to AIG s continued involvement as a lessee, primarily in the form of a lease deposit. As the leases expired in December 2010, and AIG vacated the building, the gain of approximately $1.3 billion was recognized in AIG s earnings, of which $669 million was included in the Chartis results. (5) Computed using a constant exchange rate for each period. (6) Income statement accounts expressed in non-u.s. functional currencies are translated into U.S. dollars using average exchange rates. 23

26 SunAmerica Financial Group Operating Statistics Quarterly Year-to-date Premiums, deposits and other considerations (1) $ 5,746 $ 6,144 $ 6,226 $ 4,943 $ 4,438 $ 18,116 $ 14,143 Revenues: Premiums $ 591 $ 662 $ 621 $ 600 $ 595 $ 1,874 $ 1,920 Policy fees ,024 1,978 Net investment income: Interest and dividends (2) 2,247 2,099 2,325 2,257 2,406 6,671 7,123 Call and tender income Partnership income Other (3) (46) Investment expenses (62) (57) (59) (47) (43) (178) (122) Total net investment income 2,295 2,461 2,754 2,777 2,656 7,510 7,991 Total revenues excluding net realized capital gains (losses) 3,544 3,805 4,059 4,109 3,924 11,408 11,889 Benefits and expenses: Policyholder benefits and claims incurred 1,190 1,212 1,015 1,005 1,007 3,417 3,271 Interest credited 1,134 1,110 1,105 1,119 1,125 3,349 3,361 Amortization of deferred policy acquisition costs , Non deferrable commissions General operating expenses Total benefits and expenses 3,100 3,062 2,916 3,066 2,896 9,078 8,884 Operating income excluding net realized capital gains (losses) and related amortization of acquisition costs, VOBA and sales inducements ,143 1,043 1,028 2,330 3,005 Benefit (amortization) of DAC, VOBA and SIA related to net realized capital gains (losses) (173) (59) 17 (235) (50) (215) 150 Net realized capital gains (losses) (220) (91) (1,742) Pre-tax income $ 309 $ 775 $ 940 $ 1,299 $ 998 $ 2,024 $ 1,413 Assets under management: Total invested assets $ 188,236 $ 182,915 $ 181,795 $ 179,099 $ 179,488 $ 188,236 $ 179,488 Separate account reserves 48,107 56,098 56,464 54,427 50,905 48,107 50,905 Group retirement mutual funds 8,563 9,815 9,624 9,032 8,388 8,563 8,388 Retail mutual funds 5,718 6,041 6,059 5,975 5,832 5,718 5,832 Total assets under management $ 250,624 $ 254,869 $ 253,942 $ 248,533 $ 244,613 $ 250,624 $ 244,613 Investment yield: Base yield (4) 5.49 % 5.41 % 5.04 % 5.30 % 5.50 % 5.31 % 5.52 % Partnerships (5) (0.11)% 0.39 % 0.62 % 0.49 % (0.08) % 0.30 % 0.06 % Other enhancements (6) (0.17)% (0.16) % 0.70 % 0.66 % 0.80 % 0.12 % 0.72 % Total 5.21 % 5.64 % 6.36 % 6.45 % 6.22 % 5.73 % 6.30 % See Accompanying Notes on Pages 37 and 38 24

27 SunAmerica Financial Group Domestic Life Insurance (American General) Operating Statistics Quarterly Year-to-date Premiums, deposits and other considerations (1) $ 1,092 $ 1,241 $ 1,187 $ 1,323 $ 1,148 $ 3,520 $ 3,787 Revenues: Premiums $ 591 $ 662 $ 621 $ 600 $ 595 $ 1,874 $ 1,920 Policy fees (7) ,095 1,140 Net investment income Interest and dividends ,017 2,809 2,985 Call and tender income Partnership income Other (5) Investment expenses (29) (24) (29) (21) (21) (82) (60) Total net investment income ,047 1,124 1,105 2,966 3,189 Total revenues excluding net realized capital gains (losses) 1,898 1,993 2,044 2,160 2,097 5,935 6,249 Benefits and expenses: Policyholder benefits and claims incurred (7) 1,067 1,190 1,033 1,030 1,041 3,290 3,247 Interest credited Amortization of deferred policy acquisition costs (7) Non deferrable commissions General operating expenses Total benefits and expenses 1,640 1,763 1,627 1,769 1,719 5,030 5,126 Operating income excluding net realized capital gains (losses) and related amortization of acquisition costs, VOBA and sales inducements ,123 Benefit (amortization) of DAC, VOBA and SIA related to net realized capital gains (losses) (20) (9) 3 (36) (15) (26) (9) Net realized capital gains (losses) (82) 185 (20) 307 (260) Pre-tax income $ 474 $ 374 $ 338 $ 540 $ 343 $ 1,186 $ 854 Assets under management: Total invested assets $ 68,856 $ 65,739 $ 65,059 $ 64,684 $ 65,704 $ 68,856 $ 65,704 Separate account reserves 5,299 5,680 5,688 5,623 5,300 5,299 5,300 Total assets under management $ 74,155 $ 71,419 $ 70,747 $ 70,307 $ 71,004 $ 74,155 $ 71,004 See Accompanying Notes on Pages 37 and 38 25

28 SunAmerica Financial Group Domestic Life Insurance (American General) Sales and Deposits Quarterly Year-to-date Sales and deposits (8) Term $ 30 $ 28 $ 24 $ 27 $ 27 $ 82 $ 73 Universal Life Variable Universal Life and Other Single Premium and Unscheduled Deposits Total Life Group Life and Accident & Health Premiums Deferred Annuities Payout Annuities (9) Total $ 303 $ 463 $ 393 $ 496 $ 295 $ 1,159 $ 1,211 Individual life sales by distribution channel Independent - Retail $ 43 $ 43 $ 36 $ 44 $ 35 $ 122 $ 98 Independent - Institutional Career Total $ 65 $ 71 $ 55 $ 70 $ 57 $ 191 $ 183 Surrender rates (10) Independent distribution 5.7 % 5.5 % 5.6 % 5.6 % 6.1 % 5.6 % 6.4 % Career distribution 7.5 % 7.3 % 7.3 % 7.9 % 7.5 % 7.3 % 7.5 % See Accompanying Notes on Pages 37 and 38 26

29 SunAmerica Financial Group Domestic Life Insurance (American General) Other Data Quarterly Year-to-date Premiums, deposits and other considerations (1): Life insurance $ 686 $ 717 $ 679 $ 725 $ 736 $ 2,082 $ 2,244 Career distribution (AGLA) Payout annuities Individual fixed and runoff annuities Total premiums, deposits and other considerations $ 1,092 $ 1,241 $ 1,187 $ 1,323 $ 1,148 $ 3,520 $ 3,787 Insurance reserves: Life insurance $ 25,109 $ 25,183 $ 25,046 $ 24,962 $ 24,766 $ 25,109 $ 24,766 Career distribution (AGLA) 7,664 7,618 7,618 7,612 7,559 7,664 7,559 Payout annuities 19,239 17,672 17,610 17,559 17,515 19,239 17,515 Individual fixed and runoff annuities 7,372 7,472 7,434 7,380 7,220 7,372 7,220 Total insurance reserves $ 59,384 $ 57,945 $ 57,708 $ 57,513 $ 57,060 $ 59,384 $ 57,060 Insurance reserves: Future policy benefits for life and accident & health insurance contracts $ 28,403 $ 26,667 $ 26,518 $ 26,505 $ 26,377 $ 28,403 $ 26,377 Policyholder contract deposits 24,146 24,053 23,952 23,831 23,857 24,146 23,857 Other policyholder funds 1,536 1,545 1,550 1,554 1,526 1,536 1,526 Separate account reserves 5,299 5,680 5,688 5,623 5,300 5,299 5,300 Total insurance reserves $ 59,384 $ 57,945 $ 57,708 $ 57,513 $ 57,060 $ 59,384 $ 57,060 Gross life insurance in force (at period end): Life insurance $ 834,125 $ 832,496 $ 835,181 $ 839,065 $ 841,235 $ 834,125 $ 841,235 Career distribution (AGLA) 72,816 71,909 70,563 69,852 68,910 72,816 68,910 Gross life insurance in force (at period end) $ 906,941 $ 904,405 $ 905,744 $ 908,917 $ 910,145 $ 906,941 $ 910,145 Components of Net Investment Income: Base investment income $ 934 $ 926 $ 883 $ 920 $ 932 $ 2,743 $ 2,760 Partnership income Other enhancements 9 (9) Total net investment income $ 954 $ 965 $ 1,047 $ 1,124 $ 1,105 $ 2,966 $ 3,189 Investment yield: Base yield (4) 6.19% 6.20% 5.96% 6.23% 6.36% 6.12% 6.30% Partnerships (5) (0.10)% 0.15% 0.27% 0.14% (0.11)% 0.10% (0.06)% Other enhancements (6) 0.06% (0.06)% 0.66% 1.02% 1.10% 0.23% 0.85% Total 6.15% 6.29% 6.89% 7.39% 7.35% 6.45% 7.09% See Accompanying Notes on Pages 37 and 38 27

30 SunAmerica Financial Group Domestic Retirement Services Operating Statistics Quarterly Year-to-date Premiums, deposits and other considerations $ 4,654 $ 4,903 $ 5,039 $ 3,620 $ 3,290 $ 14,596 $ 10,356 Policy fees and other income $ 305 $ 316 $ 308 $ 296 $ 276 $ 929 $ 838 Investment spread Net investment income Interest and dividends 1,308 1,206 1,348 1,282 1,389 3,862 4,138 Call and tender income Partnership income (11) Other (41) (1) (28) 44 Investment expenses (33) (33) (30) (26) (22) (96) (62) Total net investment income 1,341 1,496 1,707 1,653 1,551 4,544 4,802 Interest credited ,713 2,730 Net investment spread ,831 2,072 Benefits and expenses Policyholder benefits and claims incurred (12) (18) (25) (34) Amortization of deferred policy acquisition costs Non deferrable commissions General operating expenses Total benefits and expenses ,335 1,028 Operating income excluding net realized capital gains (losses) and related amortization of acquisition costs, VOBA and sales inducements ,425 1,882 Benefit (amortization) of DAC, VOBA and SIA related to net realized capital gains (losses) (153) (50) 14 (199) (35) (189) 159 Net realized capital gains (losses) (198) (62) (138) (398) (1,482) Pre-tax income (loss) $ (165) $ 401 $ 602 $ 759 $ 655 $ 838 $ 559 Assets under management: Total invested assets (13) $ 119,380 $ 117,176 $ 116,736 $ 114,415 $ 113,784 $ 119,380 $ 113,784 Separate account reserves 42,808 50,418 50,776 48,804 45,605 42,808 45,605 Group retirement mutual funds 8,563 9,815 9,624 9,032 8,388 8,563 8,388 Retail mutual funds 5,718 6,041 6,059 5,975 5,832 5,718 5,832 Total assets under management $ 176,469 $ 183,450 $ 183,195 $ 178,226 $ 173,609 $ 176,469 $ 173,609 See Accompanying Notes on Pages 37 and 38 28

31 SunAmerica Financial Group Domestic Retirement Services Product Statistics Quarterly Year-to-date Premiums, deposits and other considerations Group retirement products (VALIC) $ 1,982 $ 1,705 $ 1,702 $ 1,519 $ 1,580 $ 5,389 $ 4,790 Individual fixed annuities (Western National) 1,333 2,018 2,151 1, ,502 3,326 Individual variable annuities (SunAmerica Retirement Markets) ,391 1,409 Brokerage services and retail mutual funds , Other Total premiums, deposits and other considerations $ 4,654 $ 4,903 $ 5,039 $ 3,620 $ 3,290 $ 14,596 $ 10,356 Policy fees and other income: Group retirement products (VALIC) $ 113 $ 110 $ 107 $ 103 $ 96 $ 330 $ 287 Individual fixed annuities (Western National) Individual variable annuities (SunAmerica Retirement Markets) Brokerage services and retail mutual funds Other (4) Total fee and other income $ 305 $ 316 $ 308 $ 296 $ 276 $ 929 $ 838 Net investment income: Group retirement products (VALIC) $ 455 $ 538 $ 589 $ 562 $ 524 $ 1,582 $ 1,621 Individual fixed annuities (Western National) ,071 2,199 Individual variable annuities (SunAmerica Retirement Markets) Brokerage services and retail mutual funds Other Total net investment income $ 1,341 $ 1,496 $ 1,707 $ 1,653 $ 1,551 $ 4,544 $ 4,802 Operating income: Group retirement products (VALIC) $ 111 $ 223 $ 205 $ 231 $ 212 $ 539 $ 684 Individual fixed annuities (Western National) Individual variable annuities (SunAmerica Retirement Markets) (122) Brokerage services and retail mutual funds (2) (1) 20 3 Other Total operating income $ 186 $ 513 $ 726 $ 652 $ 650 $ 1,425 $ 1,882 29

32 SunAmerica Financial Group Domestic Retirement Services Account Value Rollforward Quarterly Year-to-date Group retirement products (VALIC) (14) Balance at beginning of period $ 71,133 $ 70,565 $ 68,365 $ 65,782 $ 62,216 $ 68,365 $ 63,419 Deposits - annuities (15) 1,611 1,303 1,291 1,178 1,232 4,205 3,759 Deposits - mutual funds (15) ,184 1,031 Deposits - subtotal 1,982 1,705 1,702 1,519 1,580 5,389 4,790 Surrenders and other withdrawals (1,448) (1,448) (1,503) (1,820) (1,411) (4,399) (4,827) Death benefits (86) (90) (83) (92) (74) (259) (225) Net flows (393) (262) Change in fair value of underlying investments, interest credited, net of fees (4,926) 401 2,084 2,976 3,471 (2,441) 2,625 Balance at end of period 66,655 71,133 70,565 68,365 65,782 66,655 65,782 Individual fixed annuities (Western National) Balance at beginning of period 50,994 49,854 48,489 48,147 47,998 48,489 47,202 Deposits (15) 1,333 2,018 2,151 1, ,502 3,326 Surrenders and other withdrawals (833) (913) (840) (869) (854) (2,586) (2,651) Death benefits (392) (425) (402) (346) (371) (1,219) (1,133) Net flows (131) (329) 1,697 (458) Change in fair value of underlying investments, interest credited, net of fees ,362 1,403 Balance at end of period 51,548 50,994 49,854 48,489 48,147 51,548 48,147 Individual variable annuities (SunAmerica Retirement Markets) Balance at beginning of period 26,083 26,277 25,581 25,044 23,318 25,581 24,637 Deposits ,391 1,409 Surrenders and other withdrawals (690) (838) (838) (754) (610) (2,366) (1,971) Death benefits (119) (115) (110) (110) (101) (344) (327) Net flows (9) (121) (189) (201) (155) (319) (889) Change in fair value of underlying investments, interest credited, net of fees (2,357) (73) ,881 (1,545) 1,296 Balance at end of period 23,717 26,083 26,277 25,581 25,044 23,717 25,044 Total Balance at beginning of period, excluding runoff and GICs 148, , , , , , ,258 Deposits 4,115 4,555 4,612 3,266 3,032 13,282 9,525 Surrenders and other withdrawals (2,971) (3,199) (3,181) (3,443) (2,875) (9,351) (9,449) Benefit and death payments (597) (630) (595) (548) (546) (1,822) (1,685) Net flows (725) (389) 2,109 (1,609) Change in fair value of underlying investments, interest credited, net of fees (6,837) 788 3,425 4,187 5,830 (2,624) 5,324 Balance at end of period, excluding runoff and GICs 141, , , , , , ,973 Individual annuities runoff 4,311 4,346 4,386 4,430 4,486 4,311 4,486 GICs 6,712 6,836 7,823 8,486 8,478 6,712 8,478 Retail mutual funds 5,718 6,041 6,059 5,975 5,832 5,718 5,832 Balance at end of period $ 158,661 $ 165,433 $ 164,964 $ 161,326 $ 157,769 $ 158,661 $ 157,769 General and separate account reserves Policyholder contract deposits $ 101,572 $ 99,159 $ 98,505 $ 97,515 $ 97,944 $ 101,572 $ 97,944 Separate account reserves 42,808 50,418 50,776 48,804 45,605 42,808 45,605 Total general and separate account reserves 144, , , , , , ,549 Group retirement mutual funds off-balance sheet 8,563 9,815 9,624 9,032 8,388 8,563 8,388 Retail mutual funds off-balance sheet 5,718 6,041 6,059 5,975 5,832 5,718 5,832 Total reserves and mutual funds $ 158,661 $ 165,433 $ 164,964 $ 161,326 $ 157,769 $ 158,661 $ 157,769 Surrender rates Group retirement products (VALIC) 8.4 % 8.2 % 8.7 % 10.9 % 8.8 % 8.4 % 10.1 % Individual fixed annuities (Western National) 6.5 % 7.2 % 6.9 % 7.2 % 7.1 % 6.9 % 7.4 % Individual variable annuities (SunAmerica Retirement Markets) 11.3 % 12.9 % 13.0 % 12.2 % 10.6 % 12.4 % 11.1 % See Accompanying Notes on Pages 37 and 38 30

33 SunAmerica Financial Group Domestic Retirement Services Spread Information Quarterly Year-to-date Spread information Group retirement products (VALIC) Base investment income $ 496 $ 476 $ 439 $ 457 $ 472 $ 1,411 $ 1,405 Partnerships (20) (2) Other enhancements (21) Total net investment income $ 455 $ 538 $ 589 $ 562 $ 524 $ 1,582 $ 1,621 Base yield (4) 5.28 % 5.17 % 4.80 % 5.05 % 5.27 % 5.08 % 5.30 % Partnerships (5) (0.43)% 0.35 % 0.72 % 0.47 % (0.24)% 0.21 % 0.06 % Other enhancements (6) (0.23)% 0.05 % 0.64 % 0.42 % 0.61 % 0.15 % 0.54 % Total 4.62 % 5.57 % 6.16 % 5.94 % 5.64 % 5.44 % 5.90 % Cost of funds (a) 3.72 % 3.69 % 3.66 % 3.83 % 3.86 % 3.69 % 3.84 % Net spread rate, as reported (a) 0.90 % 1.88 % 2.50 % 2.11 % 1.78 % 1.75 % 2.06 % Net spread rate excluding partnerships and other enhancements 1.56 % 1.48 % 1.14 % 1.22 % 1.41 % 1.39 % 1.46 % Individual fixed annuities (Western National) Base investment income $ 682 $ 645 $ 576 $ 596 $ 622 $ 1,903 $ 1,825 Partnerships (34) Other enhancements (58) (47) (1) 260 Total net investment income $ 590 $ 670 $ 811 $ 752 $ 719 $ 2,071 $ 2,199 Base yield (4) 5.13 % 4.93 % 4.53 % 4.79 % 5.03 % 4.87 % 4.98 % Partnerships (5) (0.45)% 0.34 % 0.76 % 0.58 % (0.18)% 0.21 % 0.06 % Other enhancements (6) (0.43)% (0.36)% 0.83 % 0.43 % 0.72 % - % 0.70 % Total 4.25 % 4.91 % 6.12 % 5.80 % 5.57 % 5.08 % 5.74 % Cost of funds (a) 3.38 % 3.39 % 3.45 % 3.58 % 3.63 % 3.41 % 3.64 % Net spread rate, as reported (a) 0.87 % 1.52 % 2.67 % 2.22 % 1.94 % 1.67 % 2.10 % Net spread rate excluding partnerships and other enhancements 1.75 % 1.54 % 1.08 % 1.21 % 1.40 % 1.46 % 1.34 % (a) Excludes the amortization of sales inducement assets See Accompanying Notes on Pages 37 and 38 31

34 SunAmerica Financial Group Domestic Retirement Services Spread Information (continued) Quarterly Year-to-date Spread information Individual variable annuities (SunAmerica Retirement Markets) Base investment income $ 31 $ 30 $ 26 $ 27 $ 24 $ 87 $ 68 Partnerships (5) Other enhancements - (1) Total net investment income $ 26 $ 36 $ 38 $ 37 $ 26 $ 100 $ 86 Base yield (4) 4.86 % 5.14 % 4.60 % 4.84 % 4.73 % 4.86 % 4.91 % Partnerships (5) (1.13)% 0.71 % 1.30 % 1.38 % 0.01 % 0.23 % 0.52 % Other enhancements (6) (0.04)% (0.04)% 0.28 % 0.31 % (0.28)% 0.06 % 0.14 % Total 3.69 % 5.81 % 6.18 % 6.53 % 4.46 % 5.15 % 5.57 % Cost of funds (a) 2.80 % 2.87 % 2.90 % 3.06 % 3.05 % 2.85 % 3.04 % Net spread rate, as reported (a) 0.89 % 2.94 % 3.28 % 3.47 % 1.41 % 2.30 % 2.53 % Net spread rate excluding partnerships and other enhancements 2.06 % 2.27 % 1.70 % 1.78 % 1.68 % 2.01 % 1.87 % (a) Excludes the amortization of sales inducement assets. See Accompanying Notes on Pages 37 and 38 32

35 SunAmerica Financial Group Domestic Retirement Services - Group Retirement Products (VALIC) Guaranteed Benefits (f) September 30, 2011 Account Net Amount Retained Value at Risk ("NAR") NAR Guaranteed Minimum Death Benefit ("GMDB") Type (including Earnings Enhancement Benefit) (a): Return of premium (b) $ 3,590 $ - $ - Roll-up (c) 40,624 2,745 2,745 Return of premium (b) (Coinsurance - Japan) ,214 3,101 3,101 Guaranteed Minimum Income Benefit Type: No Roll-up (Coinsurance - Japan) Guaranteed Minimum Withdrawal Benefit ("GMWB") Type (d): Lifetime guarantees (e) 2, Return of premium (b) (Coinsurance - Japan) , Notes: (a) A guaranteed minimum death benefit is an amount paid from a variable annuity at death of the owner. This benefit protects beneficiaries from market volatility and may be different than the account value. Each of these benefits may be subject to a maximum amount based on age of owner or dollar amount. (b) Premium deposited into the contract. (c) An amount equal to premiums deposited accumulated at a set interest rate. (d) A guaranteed minimum withdrawal benefit establishes an amount that can be taken as withdrawals which can be taken over a fixed period or for life, regardless of market performance, even if the account value drops to zero. (e) Amount is available over the life of the owner (and spouse, if elected). (f) SunAmerica uses hedging to mitigate risks related to guaranteed benefits in certain VALIC variable annuity contracts. VALIC variable annuities include a GMDB that is not reinsured as the base rollup benefit reverts to return of premium at attained age 70. GMWB liabilities are included in the company's dynamic hedging program. VALIC also reinsures certain guaranteed benefits (closed block) from ALICO Japan, a former affiliate. The guaranteed benefits in the coinsured business, which includes GMDB and either GMIB or GMWB are in scope for the SunAmerica dynamic hedging program. VALIC's hedging program is focused on mitigating economic risk, not GAAP earnings risk. The program manages equity market risk (delta), interest rate risk (rho), volatility risk (vega and gamma) within specified levels. The hedge portfolio is regularly rebalanced to manage gamma and to maintain delta and rho neutrality and to maintain vega within exposure limits established by SunAmerica and AIG Enterprise Risk Management. Vega is not fully hedged due to potential adverse effects on statutory capital and the immaterial level of exposure. 33

36 Domestic Retirement Services - Individual Variable Annuities (SunAmerica Retirement Markets) Guaranteed Benefits (q) September 30, 2011 Account Net Amount Retained Value at Risk ("NAR") NAR Guaranteed Minimum Death Benefit ("GMDB") Type (including Earnings Enhancement Benefit) (a): Return of premium (b) $ 5,777 $ 425 $ 424 Reset (c) Ratchet (d) 10,859 2,302 2,000 Roll-up (e) 3,881 1,164 1,065 Combination (f) Return of premium, with earnings enhancement (g) Ratchet, with earnings enhancement (h) Roll-up, with earnings enhancement (i) Combination with earnings enhancement (j) $ 22,517 $ 4,351 $ 3,757 Guaranteed Minimum Income Benefit ("GMIB") Type (k): Roll-up (e) $ 295 $ 188 $ 60 No roll-up (l) 2, $ 3,040 $ 315 $ 127 Guaranteed Minimum Account Value ("GMAV") Type (m): Ten year waiting period $ 988 $ 43 $ 43 Guaranteed Minimum Withdrawal Benefit ("GMWB") Type (n): Minimum amount guarantees (o) Lifetime guarantees (p) 9,375 1,863 1,863 $ 9,892 $ 1,906 $ 1,906 See Accompanying Notes on page 35 34

37 Domestic Retirement Services - Individual Variable Annuities (SunAmerica Retirement Markets) Guaranteed Benefits Notes (a) A guaranteed minimum death benefit is an amount paid from a variable annuity at death of the owner. This benefit protects beneficiaries from market volatility and may be different than the account value. Each of these benefits may be subject to a maximum amount based on age of owner or dollar amount. (b) Premium deposited into the contract. (c) An amount that is reset to the account value, if greater, at a specified contract anniversary. (d) An amount equal to the highest account value achieved on any contract anniversary. (e) An amount equal to premiums deposited accumulated at a set interest rate. (f) An amount equal to the greater of a ratchet or a roll-up. (g) A return of premium benefit which also pays a percent of the earnings in the contract, if any. (h) A ratchet benefit that also pays a percent of earnings in the contract, if any. (i) A roll-up benefit that also pays a percent of earnings in the contract, if any. (j) A combination benefit which also pays a percent of earnings in the contract, if any. (k) A guaranteed minimum income benefit establishes a minimum amount available to be annuitized regardless of actual performance in the product. The benefit is not available until a set number of years after contract issue. (l) An amount based on premiums deposited or other set amount. (m) A guaranteed minimum account value ensures a return of premium invested at the end of 10 years. The amount is based on premium in a defined period. (n) A guaranteed minimum withdrawal benefit establishes an amount that can be taken as withdrawals which can be taken over a fixed period or for life, regardless of market performance, even if the account value drops to zero. (o) Amount is available over a fixed period. (p) Amount is available over the life of the owner (and spouse, if elected). (q) SunAmerica uses reinsurance and hedging to mitigate risks related to guaranteed benefits in the individual variable annuity business contracts. Certain GMDB benefits written before 2004 are reinsured. The majority of GMIB benefits, which are no longer offered, are reinsured. GMWB liabilities and GMAV liabilities (GMAV is no longer offered) are included in SunAmerica's dynamic hedging program. The hedging program is focused on mitigating economic risk, not GAAP earnings risk. The program manages equity market risk (delta), interest rate risk (rho), volatility risk (vega and gamma) within specified levels. The hedge portfolio is regularly rebalanced to manage gamma and to maintain delta neutrality and to maintain rho and vega within exposure limits established by SunAmerica and AIG Enterprise Risk Management. Rho and vega are not fully hedged due to potential adverse effects on statutory capital from the mismatch between fair value accounting for hedge assets and prescribed methods for calculating statutory reserves and capital. 35

38 Domestic Retirement Services - Individual Variable Annuities (SunAmerica Retirement Markets) Guaranteed Benefits (continued) Sept. 30, June 30, March 31, Dec. 31, Sept. 30, Other Data S&P 500 Index value 1,131 1,321 1,326 1,258 1, year US Treasury Yield 1.915% 3.160% 3.470% 3.294% 2.510% CBOE SPX Volatility Index (VIX) Total Account Value $ 23,717 $ 26,083 $ 26,277 $ 25,581 $ 25,044 Account value by benefit type: Guaranteed Minimum Death Benefits 22,517 25,708 25,937 25,154 23,735 Guaranteed Minimum Income Benefits 3,040 3,665 3,873 3,894 3,775 Guaranteed Minimum Account Value 988 1,210 1,300 1,324 1,299 Guaranteed Minimum Withdrawal Benefits 9,892 10,778 10,344 9,560 8,598 Net amount at risk: Guaranteed Minimum Death Benefits 4,351 1,995 1,938 2,416 3,473 Guaranteed Minimum Income Benefits Guaranteed Minimum Account Value Guaranteed Minimum Withdrawal Benefits 1, ,085 Retained net amount at risk: Guaranteed Minimum Death Benefits 3,757 1,698 1,645 2,040 2,916 Guaranteed Minimum Income Benefits Guaranteed Minimum Account Value Guaranteed Minimum Withdrawal Benefits 1, ,085 Liability for guaranteed benefits (GMDB & GMIB) $ 458 $ 360 $ $

39 SunAmerica Financial Group Notes SunAmerica Financial Group (SunAmerica) offers a comprehensive suite of products and services to individuals and groups including term life, universal life, accident and health, fixed and variable deferred annuities, fixed payout annuities, mutual funds and financial planning. SunAmerica offers its products and services through a diverse, multi-channel distribution network that includes banks, national, regional and independent broker-dealers, affiliated financial advisors, independent marketing organizations, independent and career insurance agents, structured settlement brokers, benefit consultants and direct-to-consumer platforms. The SunAmerica segment has two operating segments: Domestic Life Insurance, which focuses on mortality-and-morbidity-based protection products, and Domestic Retirement Services, which focuses on investment, retirement savings and income solutions. SunAmerica s Domestic Life Insurance operations are conducted through the American General business unit. SunAmerica s Domestic Retirement Services operations consist of VALIC, Western National, SunAmerica Retirement Markets, and Brokerage Services and Retail Mutual Funds. (1) Premiums, deposits and other considerations is a non-gaap measure which consists of life insurance premiums, deposits on annuity contracts and mutual funds. (2) Interest and dividends include gains (losses) related to AIG s economic retained interest in Maiden Lane II as follows: Quarterly Year-to-date (in millions) Domestic Life Insurance Fair value gain (loss) $ (16) $ (58) $ 76 $ 21 $ 46 $ 2 $ 130 Capitalized interest Total $ (14) $ (55) $ 79 $ 24 $ 49 $ 10 $ 138 Domestic Retirement Services Fair value gain (loss) $ (35) $ (128) $ 166 $ 47 $ 102 $ 3 $ 281 Capitalized interest Total $ (29) $ (121) $ 172 $ 53 $ 107 $ 22 $ 298 Total SunAmerica Fair value gain (loss) $ (51) $ (186) $ 242 $ 68 $ 148 $ 5 $ 411 Capitalized interest Total ML II income (loss) included in interest and dividends $ (43) $ (176) $ 251 $ 77 $ 156 $ 32 $ 436 (3) The three months ended September 30, 2011 and June 30, 2011 and the nine months ended September 30, 2011 include $97 million, $31 million and $128 million, respectively, of losses related to equity-method investments in trusts that hold leased commercial aircraft. (4) Includes the investment return on surplus other than partnership or yield enhancement activities. Quarterly results are annualized. (5) Includes incremental effect to base yield of investments in hedge funds and private equity funds. Quarterly results are annualized. (6) Includes incremental effect to base yield of gains on Maiden Lane II and income from calls and prepayment fees. Quarterly results are annualized. (7) The three months ended December 31, 2010 include the unlocking of certain assumptions on universal life and deferred annuity business, which resulted in a $58 million increase to fee income, a decrease of $21 million in policyholder benefits and claims incurred and an $86 million increase in amortization of deferred policy acquisition costs. The three months ended September 30, 2010 include a one-time increase of approximately $24 million which resulted from the completion of a conversion of certain blocks of business to a new valuation system. This increase is almost entirely offset within amortization of deferred policy acquisition costs. 37

40 SunAmerica Financial Group Notes (Continued) (8) Life insurance sales include periodic premiums from new business expected to be collected over a one-year period and 10% of unscheduled and single premiums from new and existing policyholders. Sales of group accident and health insurance represent annualized first-year premium from new policies. Annuity sales represent deposits from new and existing customers. (9) Includes structured settlements, single premium immediate annuities and terminal funding annuities. (10) Surrender rates are reported on a 90 day lag basis to include grace period processing. Independent distribution are face amounts surrendered and career distribution measures annual premiums surrendered. (11) Includes Affordable Housing Partnership Income as follows: Quarterly Year-to-date (in millions) Affordable Housing Partnership Income $ 59 $ 56 $ 53 $ 45 $ 53 $ 168 $ 96 (12) Policyholder benefits and claims incurred is negative in the three months ended March 31, 2011, December 31, 2010, and September 30, 2010 due to reductions in SOP reserves (primarily guaranteed minimum death benefits) resulting from positive equity markets. (13) Includes invested assets of runoff blocks as follows: Quarterly Year-to-date (in millions) Total Invested Assets $ 14,343 $ 14,137 $ 15,906 $ 16,289 $ 16,091 $ 14,343 $ 16,091 (14) Includes group retirement annuities and group mutual funds. The balances at the beginning and end of the period for Group Mutual Funds are as follows: Quarterly Year-to-date (in millions) Beginning Balance $ 9,815 $ 9,624 $ 9,032 $ 8,388 $ 7,511 $ 9,032 $ 8,075 Ending Balance $ 8,563 $ 9,815 $ 9,624 $ 9,032 $ 8,388 $ 8,563 $ 8,388 (15) Excludes internal replacements from one contract into a new contract. If included, deposits and surrenders for group retirement products and individual fixed annuities would increase. 38

41 Aircraft Leasing Operating Statistics (1) Quarterly Year-to-date Revenues: Rental revenue $ 1,117 $ 1,111 $ 1,141 $ 1,152 $ 1,181 $ 3,369 $ 3,575 Interest and other revenues (12) Total aircraft leasing revenues $ 1,129 $ 1,134 $ 1,156 $ 1,140 $ 1,186 $ 3,419 $ 3,609 Operating expenses: Interest expense (1) $ 353 $ 360 $ 369 $ 367 $ 373 $ 1,082 $ 1,030 Loss on extinguishment of debt Aircraft leasing expense: - Depreciation expense ,380 1,448 Impairment charges, fair value adjustments and lease-related charges 1, , Other expenses Total aircraft leasing expenses 2, ,379 1,031 3,390 2,671 Operating income (loss) before net realized capital gains (losses) (1,317) (606) (218) (1,114) (92) Net realized capital gains (losses) (12) 1 3 (1) 4 (8) (30) Pre-tax income (loss) $ (1,329) $ 87 $ 120 $ (607) $ (214) $ (1,122) $ (122) (1) Includes intercompany interest which is eliminated in consolidation. 39

42 Other Operations Quarterly Year-to-date Other operations: Mortgage Guaranty $ (96) $ 13 $ 13 $ 154 $ (124) $ (70)$ 175 Global Capital Markets (174) (160) (57) (83) Direct Investment book ,027 Change in fair value of MetLife securities prior to sale - - (157) (157) - Change in fair value of AIA securities (2,315) 1,521 1,062 (638) Change in fair value of ML III (931) (667) (854) 1,410 Other interest expense (1) (498) (513) (534) (550) (580) (1,545) (1,830) Other, net (2) (335) (131) 15 (296) (215) (451) (1,178) Other operations - operating income (4,230) 124 1, (415) (2,235) (479) Adjustments to arrive at operating income (loss): Interest expense on FRBNY Credit Facility (3) - - (72) (1,200) (1,319) (72) (2,907) Divested businesses ,679 Loss on extinguishment of debt (3) - - (3,283) - - (3,283) - Consolidation & elimination (4) (10) (9) (7) (282) 122 (26) 371 Net gain (loss) on sale of divested businesses and properties (5) (2) (2) (72) 16,972 4 (76) 126 Total adjustments (12) (11) (3,434) 15,791 (680) (3,457) (731) Operating income (loss) before net realized capital gains (losses) $ (4,242) $ 113 $ (1,563) $ 16,195 $ (1,095) $ (5,692) $ (1,210) Notes: (1) See Page 10 for interest expense summary. (2) Includes unallocated corporate expenses, including Parent service fees, restructuring expenses, professional fees, long-term compensation costs and certain litigation expenses. Additionally, beginning in the third quarter of 2011 includes other expenses previously reported as Financial Services and Asset Management expenses. In the third quarter of 2011 increase reflects severance expenses and asset write-offs relating to infrastructure consolidation initiatives across AIG and its businesses and an increase in provisions for legal contingencies. (3) In the first quarter of 2011, following the repayment and termination of the FRBNY Credit Facility, a $3.3 billion charge, primarily consisting of accelerated amortization of the prepaid commitment fee asset, was recorded. (4) Primarily represents the elimination of amounts attributable to intercompany loans between Global Capital Markets, the Direct Investment book and AIG. (5) Net gains and losses on sale of divested businesses include results that did not meet the criteria for discontinued operations, primarily consists of gain on sale of AIA in fourth quarter of

43 Mortgage Guaranty Operating Statistics Quarterly Year-to-date Net premiums written $ 206 $ 191 $ 204 $ 167 $ 190 $ 601 $ 589 Net premiums earned Claims and claims adjustment expenses incurred Underwriting expenses Underwriting profit (loss) (129) (21) (21) 118 (162) (171) 62 Net investment income Operating income (loss) before net realized capital gains (losses) (96) (124) (70) 175 Net realized capital gains (losses) 17 (6) (6) 5 (3) 5 39 Pre-tax income (loss) $ (79) $ 7 $ 7 $ 159 $ (127) $ (65) $ 214 Underwriting ratios: Loss ratio Expense ratio Combined ratio

44 American International Group Inc. AIGFP - Net Notional Amount of AIGFP Derivatives (in millions) Not designated as hedging instruments: Assets: Sept. 30 June 30 March 31 Dec. 31 Sept. 30 Jun. 30 Mar. 31 Dec. 31 Sept (a) 2011 (a) Interest rate contracts $ 61,023 $ 64,482 $ 107,270 $ 143,215 $ 186,882 $ 235,842 $ 287,278 $ 356,739 $ 434,337 Foreign exchange contracts 6,236 1,290 1,948 2,447 4,410 4,025 3,951 10,359 9,087 Equity contracts 1,010 1,395 1,812 1,914 2,464 3,209 5,123 5,832 7,717 Commodity contracts ,357 Credit contracts 657 1,164 1,312 1,236 1,261 1,183 1,378 2,509 3,334 Other contracts 20,686 21,480 22,449 23,501 27,415 28,473 28,230 33,399 33,714 Total $ 90,573 $ 90,635 $ 135,723 $ 173,257 $ 222,621 $ 272,986 $ 326,252 $ 409,607 $ 500,546 Liabilities: Interest rate contracts $ 65,956 $ 71,444 $ 76,484 $ 108,729 $ 177,826 $ 216,872 $ 264,515 $ 310,970 $ 398,697 Foreign exchange contracts 3,177 2,614 2,940 4,016 6,281 6,895 8,789 8,501 11,187 Equity contracts 1,022 1,230 1,303 1,503 2,096 4,672 5,953 7,619 9,951 Commodity contracts ,489 Credit contracts 27,245 30,818 58,593 61,584 90,893 92, , , ,362 Other contracts ,122 2,112 2,325 1,151 1,172 Total $ 98,978 $ 107,808 $ 140,909 $ 177,412 $ 279,443 $ 323,322 $ 421,417 $ 515,739 $ 643,858 Designated as hedging instruments: Assets - Interest Rate Contracts - - $ 1,271 $ 1,471 $ 3,071 $ 3,377 $ 6,114 $ 11,780 $ 12,294 Liabilities - Interest Rate Contracts - - $ 583 $ 626 $ 656 $ 2,719 $ 1,578 $ 3,622 $ 3,353 Total Derivatives- Net Notional Amount $ 189,551 $ 198,443 $ 278,486 $ 352,766 $ 505,791 $ 602,404 $ 755,361 $ 940,748 $ 1,160,051 Intercompany Derivatives (included in Total Derivatives - Net Notional Amount) $ - $ - $ 11,046 $ 11,507 $ 13,648 $ 19,072 $ 21,711 $ 40,703 $ 44,013 (a) As of September 30, 2011 and June 30, 2011, notional excludes intercompany derivatives of $12.6 billion and $8.0 billion, respectively. 42

45 Summary of AIGFP derivative positions as of September 30, 2011 Overview of AIGFP derivative positions The active wind-down of the AIGFP derivatives portfolio was completed at the end of the second quarter of The remaining AIGFP derivatives portfolio consists predominantly of transactions AIG believes are of low complexity, low risk, supportive of AIG s risk management objectives or not economically appropriate to unwind based on a cost versus benefit analysis, although the portfolio may experience periodic mark-to-market volatility. A small percentage of the portfolio (<10%), the arbitrage book, is being managed for upside, which potentially may be in excess of $1 billion. The majority of the arbitrage book, the corporate debt positions ($11B), is not subject to additional collateral postings. Net Notional ($B) Description 12/31/2008 9/30/2011 Market Derivatives ($144B) Total ~$1,800 billion Total $190 billion Managed by AIG s Global Capital Markets group Vast majority of positions are trades with AIG affiliates or hedges for the portfolio. These positions will continue to support the risk management objectives of AIG and may grow or shrink accordingly. Less than 1/3 are legacy third party client trades left in place because they are not economically appropriate to unwind based on a cost versus benefit analysis. The legacy trades include $23B of CDO swaps; $14B of which are intermediations. Positions are fully hedged, minimizing market risk associated with them. The remaining contingent liquidity risk is not significant. Market Derivatives ~1,450 ~89% reduction Arbitrage portfolio ($12B notional for Corporate debt/clo/cso and $6B notional for Multi-Sector CDOs) Managed for value by AIG s Asset Management Group (AMG) Collateral requirements on corporate arbitrage book ($11B) were eliminated in 2010 through intermediation. Potential upside is ~$150M for Corporate debt/clo/cso portfolio and ~$1,150M for Multi- Sector CDS portfolio (as of 9/30/2011). Regulatory Capital CDS incl. Mezzanine ($8B) Managed by Banque AIG with advice from AMG Nearly all of the remaining portfolio is expected to amortize or be called by counterparties by the end of Q Arb./ Multi-Sec. CDS Reg. Cap. CDS Stable Value Wraps ~65 ~240 ~ Stable Value Wrap Book ($20B) To be moved to separate management within AIG Strategic fit of Stable Value Wrap portfolio within AIG is currently being assessed; this book will either be retained and developed by a capital efficient AIG entity / insurance subsidiary or novated. If retained, book will continue to be managed by a small self-contained team. 43