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ITEM 8 / NOTE 6. FAIR VALUE MEASUREMENTS.....................................................................................................................................................................................NetChanges inRealized andUnrealized GainsFair Unrealized Accumulated Purchases, (Losses) Includedvalue Gains (Losses) Other Sales, Gross Gross Fair value in Income onBeginning Included Comprehensive Issues and Transfers Transfers End Instruments Held(in millions) of Year (a) in Income Income (Loss) Settlements, Net In Out of Year at End of YearDecember 31, 2011Assets:Bonds available for sale:Obligations of states, municipalitiesand political subdivisions $ 609 $ 2 $ 112 $ 296 $ 17 $ (76) $ 960 $ –Non-U.S. governments 5 – – 5 – (1) 9 –Corporate debt 2,262 11 (25) 171 2,480 (2,964) 1,935 –RMBS 6,367 (50) 288 3,232 1,093 (53) 10,877 –CMBS 3,604 (100) 239 207 134 (129) 3,955 –CDO/ABS 4,241 73 142 (432) 852 (656) 4,220 –Total bonds available for sale 17,088 (64) 756 3,479 4,576 (3,879) 21,956 –Bond trading securities:Corporate debt – – – (11) 18 – 7 1RMBS 91 (27) – 239 – – 303 (28)CMBS 506 92 – (95) 292 (241) 554 87CDO/ABS 9,431 (660) – (323) 48 (64) 8,432 (677)Total bond trading securities 10,028 (595) – (190) 358 (305) 9,296 (617)Equity securities available for sale:Common stock 61 28 (4) (40) 18 (6) 57 –Preferred stock 64 (1) 32 (1) 5 – 99 –Mutual funds – – – (6) 6 – – –Total equity securities available for sale 125 27 28 (47) 29 (6) 156 –Equity securities trading 1 – – (1) – – – –Mortgage and other loans receivable – – – 1 – – 1 –Other invested assets 7,414 (10) 139 (739) 251 (437) 6,618 2Total $ 34,656 $ (642) $ 923 $ 2,503 $ 5,214 $ (4,627) $ 38,027 $ (615)Liabilities:Policyholder contract deposits $ (445) $ (429) $ – $ (44) $ – $ – $ (918) $ 508Derivative liabilities, net:Interest rate contracts 732 46 – (2) 30 (21) 785 (90)Foreign exchange contracts 16 (11) – (5) 2 – 2 1Equity contracts 22 (16) – 41 (7) (12) 28 (15)Commodity contracts 23 1 – (22) – – 2 (1)Credit contracts (3,798) 332 – 193 – – (3,273) 493Other contracts (112) (14) (51) 74 (30) 166 33 (98)Total derivatives liabilities, net (3,117) 338 (51) 279 (5) 133 (2,423) 290Long-term debt (b) (982) (60) – 555 (21) – (508) (135)Total $ (4,544) $ (151) $ (51) $ 790 $ (26) $ 133 $ (3,849) $ 663(a) Total Level 3 derivative exposures have been netted in these tables for presentation purposes only.(b) Includes GIAs, notes, bonds, loans and mortgages payable.Net realized and unrealized gains and losses related to Level 3 items shown above are reported in theConsolidated Statement of Operations as follows:Net Net RealizedInvestment Capital Other(in millions) Income Gains (Losses) Income TotalDecember 31, 2012Bonds available for saleBond trading securitiesEquity securitiesOther invested assetsPolicyholder contract depositsDerivative liabilities, netOther long-term debt$ 906 $ (395) $ 215 $ 7263,303 – 526 3,829– 39 – 3954 (210) 61 (95)– (275) – (275)3 26 537 566– – (411) (411)December 31, 2011Bonds available for sale $ 638 $ (717) $ 15 $ (64)Bond trading securities (634) 4 35 (595)Equity securities – 27 – 27Other invested assets 23 (84) 51 (10)Policyholder contract deposits – (499) 70 (429)Derivative liabilities, net 2 13 323 338Other long-term debt – – (60) (60)..................................................................................................................................................................................................................................AIG 2012 Form 10-K 243
ITEM 8 / NOTE 6. FAIR VALUE MEASUREMENTS.....................................................................................................................................................................................The following table presents the gross components of purchases, sales, issues and settlements, net, shownabove:Purchases, Sales,Issues and(in millions) Purchases Sales Settlements Settlements, Net (a)December 31, 2012Assets:Bonds available for sale:Obligations of states, municipalities and political subdivisionsNon-U.S. governmentsCorporate debtRMBSCMBSCDO/ABSTotal bonds available for saleBond trading securities:Corporate debtRMBSCMBSCDO/ABS (b)Total bond trading securitiesEquity securitiesMortgage and other loans receivableOther invested assetsTotal assetsLiabilities:Policyholder contract depositsDerivative liabilities, netOther long-term debt (c)Total liabilities$ 477 $ (219) $ (174) $ 845 (3) (1) 1283 (75) (184) 242,308 (723) (1,901) (316)1,137 (318) (183) 6361,120 (4) (1,106) 105,330 (1,342) (3,549) 439– – (7) (7)– (45) (64) (109)225 (106) (278) (159)7,382 (21) (11,329) (3,968)7,607 (172) (11,678) (4,243)67 (56) (80) (69)– – (1) (1)900 (100) (1,057) (257)$ 13,904 $ (1,670) $ (16,365) $ (4,131)$ – $ (25) $ 33 $ 811 (2) 612 621– – 242 242$ 11 $ (27) $ 887 $ 871December 31, 2011Assets:Bonds available for sale:Obligations of states, municipalities and political subdivisions $ 305 $ (4) $ (5) $ 296Non-U.S. governments 4 (2) 3 5Corporate debt 497 (27) (299) 171RMBS 4,932 (205) (1,495) 3,232CMBS 470 (34) (229) 207CDO/ABS 1,067 (1) (1,498) (432)Total bonds available for sale 7,275 (273) (3,523) 3,479Bond trading securities:Corporate debt – – (11) (11)RMBS 305 (1) (65) 239CMBS 221 (207) (109) (95)CDO/ABS 331 (304) (350) (323)Total bond trading securities 857 (512) (535) (190)Equity securities – (31) (17) (48)Mortgage and other loans receivable – – 1 1Other invested assets 718 (296) (1,161) (739)Total assets $ 8,850 $ (1,112) $ (5,235) $ 2,503Liabilities:Policyholder contract deposits $ – $ (70) $ 26 $ (44)Derivative liabilities, net 43 – 236 279Other long-term debt (c) – – 555 555Total liabilities $ 43 $ (70) $ 817 $ 790(a) There were no issuances during year ended December 31, 2012.(b) Includes $7.1 billion of securities purchased through the FRBNY’s auction of ML III assets.(c) Includes GIAs, notes, bonds, loans and mortgages payable.Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3in the tables above. As a result, the unrealized gains (losses) on instruments held at December 31, 2012 and 2011may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates)and unobservable inputs (e.g., changes in unobservable long-dated volatilities)...................................................................................................................................................................................................................................244 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 7 / ENTERPRISE RISK MANAGEMENT
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ITEM 7 / CRITICAL ACCOUNTING ESTIMA
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Page 217 and 218: ITEM 7A / QUANTITATIVE AND QUALITAT
Page 219 and 220: ITEM 8 / INDEX TO FINANCIAL STATEME
Page 221 and 222: AMERICAN INTERNATIONAL GROUP, INC.C
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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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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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