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ITEM 8 / REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM.....................................................................................................................................................................................REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRMTo the Board of Directors and Shareholders of American International Group, Inc.:In our opinion, the consolidated financial statements listed in the accompanying index present fairly, in all materialrespects, the financial position of American International Group, Inc. and its subsidiaries (AIG) at December 31, 2012and 2011, and the results of their operations and their cash flows for each of the three years in the period endedDecember 31, 2012 in conformity with accounting principles generally accepted in the United States of America. Inaddition, in our opinion, the financial statement schedules listed in the accompanying index present fairly, in allmaterial respects, the information set forth therein when read in conjunction with the related consolidated financialstatements. Also in our opinion, AIG maintained, in all material respects, effective internal control over financialreporting as of December 31, 2012, based on criteria established in Internal Control – Integrated Framework issuedby the Committee of Sponsoring Organizations of the Treadway Commission (COSO). AIG’s management isresponsible for these financial statements and financial statement schedules, for maintaining effective internal controlover financial reporting and for its assessment of the effectiveness of internal control over financial reporting,included in Management’s Report on Internal Control Over Financial Reporting appearing under Item 9A in the 2012Form 10-K. Our responsibility is to express opinions on these financial statements, on the financial statementschedules, and on AIG’s internal control over financial reporting based on our integrated audits. We conducted ouraudits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Thosestandards require that we plan and perform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement and whether effective internal control over financial reporting wasmaintained in all material respects. Our audits of the financial statements included examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principlesused and significant estimates made by management, and evaluating the overall financial statement presentation.Our audit of internal control over financial reporting included obtaining an understanding of internal control overfinancial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design andoperating effectiveness of internal control based on the assessed risk. Our audits also included performing suchother procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonablebasis for our opinions.As discussed in Note 2 to the consolidated financial statements, as of January 1, 2012, AIG retrospectively adopteda new accounting standard that amends the accounting for costs incurred by insurance companies that can becapitalized in connection with acquiring or renewing insurance contracts.A company’s internal control over financial reporting is a process designed to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financial statements for external purposes inaccordance with generally accepted accounting principles. A company’s internal control over financial reportingincludes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonableassurance that transactions are recorded as necessary to permit preparation of financial statements in accordancewith generally accepted accounting principles, and that receipts and expenditures of the company are being madeonly in accordance with authorizations of management and directors of the company; and (iii) provide reasonableassurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’sassets that could have a material effect on the financial statements.Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may becomeinadequate because of changes in conditions, or that the degree of compliance with the policies or procedures maydeteriorate./s/ PricewaterhouseCoopers LLPNew York, New YorkFebruary 21, 2013..................................................................................................................................................................................................................................AIG 2012 Form 10-K 203
AMERICAN INTERNATIONAL GROUP, INC.CONSOLIDATED BALANCE SHEETDecember 31, December 31,(in millions, except for share data) 2012 2011Assets:Investments:Fixed maturity securities:Bonds available for sale, at fair value (amortized cost: 2012 – $246,149; 2011 – $250,770) $ 269,959 $ 263,981Bond trading securities, at fair value 24,584 24,364Equity securities:Common and preferred stock available for sale, at fair value (cost: 2012 – $1,640; 2011 – $1,820) 3,212 3,624Common and preferred stock trading, at fair value 662 125Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2012 – $134;2011 – $107) 19,482 19,489Flight equipment primarily under operating leases, net of accumulated depreciation – 35,539Other invested assets (portion measured at fair value: 2012 – $7,056; 2011 – $20,876) 29,117 40,744Short-term investments (portion measured at fair value: 2012 – $8,056; 2011 – $5,913) 28,808 22,572Total investments 375,824 410,438Cash 1,151 1,474Accrued investment income 3,054 3,108Premiums and other receivables, net of allowance 13,989 14,721Reinsurance assets, net of allowance 25,595 27,211Deferred income taxes 17,466 19,615Deferred policy acquisition costs 8,182 8,937Derivative assets, at fair value 3,671 4,499Other assets, including restricted cash of $1,878 in 2012 and $2,988 in 2011 (portion measured at fairvalue: 2012 – $696; 2011 – $0) 10,399 11,663Separate account assets, at fair value 57,337 51,388Assets held for sale 31,965 –Total assets $ 548,633 $ 553,054Liabilities:Liability for unpaid claims and claims adjustment expense $ 87,991 $ 91,145Unearned premiums 22,537 23,465Future policy benefits for life and accident and health insurance contracts 36,340 34,317Policyholder contract deposits (portion measured at fair value: 2012 – $1,257; 2011 – $918) 127,117 126,898Other policyholder funds 6,267 6,691Derivative liabilities, at fair value 4,061 4,733Other liabilities (portion measured at fair value: 2012 – $1,080; 2011 – $907) 32,114 28,248Long-term debt (portion measured at fair value: 2012 – $8,055; 2011 – $10,766) 48,500 75,253Separate account liabilities 57,337 51,388Liabilities held for sale 27,366 –Total liabilities 449,630 442,138Contingencies, commitments and guarantees (see Note 16)Redeemable noncontrolling interests (see Note 18):Nonvoting, callable, junior preferred interests held by Department of the Treasury – 8,427Other 334 96Total redeemable noncontrolling interests 334 8,523AIG shareholders’ equity:Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued:2012 – 1,906,611,680 and 2011 – 1,906,568,099 4,766 4,766Treasury stock, at cost; 2012 – 430,289,745; 2011 – 9,746,617 shares of common stock (13,924) (942)Additional paid-in capital 80,410 80,459Retained earnings 14,176 10,774Accumulated other comprehensive income 12,574 6,481Total AIG shareholders’ equity 98,002 101,538Non-redeemable noncontrolling interests (including $100 associated with businesses held for sale) 667 855Total equity 98,669 102,393Total liabilities and equity $ 548,633 $ 553,054See accompanying Notes to Consolidated Financial Statements, which include a summary of revisions to prior year balances in connection with achange in accounting principle...................................................................................................................................................................................................................................204 AIG 2012 Form 10-K
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American International Group, Inc.2
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KEY FACTS & FIGURES52,000+ $65.7 bi
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■We said we would return to profi
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Financial HighlightsYears Ended Dec
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~63,000AIG EMPLOYEES AROUND THE WOR
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$115.1 millionAVERAGE CLAIMS PAID E
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$10,000MAXIMUM DONATION MADE BY AIG
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American International Group, Inc.F
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AMERICAN INTERNATIONAL GROUP, INC.A
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ITEM 1 / BUSINESS / AIG............
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ITEM 1 / BUSINESS / AIG............
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ITEM 1 / BUSINESS / AIG PROPERTY CA
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ITEM 1 / BUSINESS / AIG PROPERTY CA
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ITEM 1 / BUSINESS / AIG LIFE AND RE
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ITEM 1 / BUSINESS / OTHER OPERATION
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ITEM 1 / BUSINESS / OTHER OPERATION
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ITEM 1 / BUSINESS..................
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ITEM 1 / BUSINESS..................
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ITEM 1 / BUSINESS..................
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ITEM 1 / BUSINESS..................
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ITEM 1 / BUSINESS..................
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ITEM 1A / RISK FACTORS.............
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ITEM 1B / UNRESOLVED STAFF COMMENTS
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ITEM 5 / MARKET FOR REGISTRANT’S
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ITEM 6 / SELECTED FINANCIAL DATA...
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ITEM 6 / SELECTED FINANCIAL DATA...
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ITEM 7 / MANAGEMENT’S DISCUSSION
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ITEM 7 / USE OF NON-GAAP MEASURES..
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ITEM 7 / EXECUTIVE SUMMARY.........
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ITEM 7 / RESULTS OF OPERATIONS.....
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ITEM 7 / LIQUIDITY AND CAPITAL RESO
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ITEM 7 / INVESTMENTS...............
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ITEM 8 / NOTE 7. INVESTMENTS.......
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ITEM 8 / NOTE 8. LENDING ACTIVITIES
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ITEM 8 / NOTE 9. REINSURANCE.......
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ITEM 8 / NOTE 10. DEFERRED POLICY A
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ITEM 8 / NOTE 10. DEFERRED POLICY A
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ITEM 8 / NOTE 11. VARIABLE INTEREST
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ITEM 8 / NOTE 11. VARIABLE INTEREST
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ITEM 8 / NOTE 12. DERIVATIVES AND H
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ITEM 8 / NOTE 13. LIABILITY FOR UNP
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ITEM 8 / NOTE 14. VARIABLE LIFE AND
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ITEM 8 / NOTE 15. DEBT OUTSTANDING.
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ITEM 8 / NOTE 15. DEBT OUTSTANDING.
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ITEM 8 / NOTE 16. CONTINGENCIES, CO
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ITEM 8 / NOTE 17. TOTAL EQUITY.....
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ITEM 8 / NOTE 18. NONCONTROLLING IN
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ITEM 8 / NOTE 19. EARNINGS (LOSS) P
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ITEM 8 / NOTE 20. STATUTORY FINANCI
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ITEM 8 / NOTE 21. SHARE-BASED COMPE
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ITEM 8 / NOTE 21. SHARE-BASED COMPE
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ITEM 8 / NOTE 22. EMPLOYEE BENEFITS
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ITEM 8 / NOTE 24. INCOME TAXES.....
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ITEM 8 / NOTE 26. QUARTERLY FINANCI
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ITEM 8 / NOTE 27. INFORMATION PROVI
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PART II............................
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PART IV............................
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SignatureTitle/s/ ARTHUR C. MARTINE
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ExhibitNumber Description Location(
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Condensed Financial Information of
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Condensed Financial Information of
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Notes to Condensed Financial Inform
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Supplementary Insurance Information
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Valuation and Qualifying AccountsFo
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Subsidiaries of RegistrantExhibit 2
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Percentageof VotingSecuritiesJurisd
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Percentageof VotingSecuritiesJurisd
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CONSENT OF INDEPENDENT REGISTERED P
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CERTIFICATIONSI, Robert H. Benmosch
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CERTIFICATIONExhibit 32In connectio
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SECURITIES REGISTERED PURSUANT TO S
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American International Group, Inc.1
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