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ITEM 1A / RISK FACTORS.....................................................................................................................................................................................ESTIMATES AND ASSUMPTIONS..............................................................................................................................................................................................Actual experience may differ from management’s estimates used in the preparation of financial statements.Our financial statements are prepared in conformity with U.S. Generally Accepted Accounting Principles, whichrequires the application of accounting policies that often involve a significant degree of judgment. The accountingpolicies that we consider most dependent on the application of estimates and assumptions, and therefore may beviewed as critical accounting estimates, are described in Item 7. MD&A – Critical Accounting Estimates. Theseaccounting estimates require the use of assumptions, some of which are highly uncertain at the time of estimation.These estimates are based on judgment, current facts and circumstances, and, when applicable, internally developedmodels. Therefore, actual results could differ from these estimates, possibly in the near term, and could have amaterial effect on our consolidated financial statements.Our ability to achieve our long-term goals, including return on equity (ROE) and earnings per share (EPS), isbased on significant assumptions, and our actual results may differ, possibly materially, from these goals. Insetting our long-term goals for ROE and EPS, described in Part I, Item 2. MD&A – Long-Term Aspirational Goals inour Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011, we made significant assumptionsthat include, among other things:• the general conditions of the markets in which we operate;• revenues and combined ratios of our subsidiaries;• investment yields;• our subsidiaries’ capacity to distribute dividends to AIG Parent;• our ability to deploy capital towards share purchases, dividend payments, acquisitions or organic growth;• the impact of a change in our credit ratings on our ability to maintain financial leverage;• the exclusion of the reversal of the tax valuation allowance on shareholders’ equity in calculating our long-termROE goal;• effectiveness of our cost rationalization measures;• regulatory approval of our planned actions (including share purchases, dividend payments or acquisitions);• the overall credit rating implications of our proposed strategic actions; and• general financial market and interest rate conditions.These assumptions are not historical facts but instead represent our expectations about future events. Many of theseevents, by their nature, are inherently subject to significant uncertainties and contingencies and are outside ourcontrol. It is very likely that actual events and results will differ from some or all of the assumptions we made. Whilewe remain committed to our long-term aspirational goals, our actual results are likely to differ from these aspirationalgoals and the difference may be material and adverse.The aspirational goals and their underlying assumptions are forward-looking statements. Shareholders and otherinvestors should not place undue reliance on any of these assumptions or aspirational goals. We are not under anyobligation (and expressly disclaim any obligation) to update or alter any assumptions, goals, projections or otherrelated statements, whether written or oral, that may be made from time to time, whether as a result of newinformation, future events or otherwise. See Cautionary Statement Regarding Forward-Looking Information foradditional information about forward-looking statements...................................................................................................................................................................................................................................AIG 2012 Form 10-K 43
ITEM 1B / UNRESOLVED STAFF COMMENTS..............................................................................................................................................................................................There are no material unresolved written comments that were received from the SEC staff 180 days or more beforethe end of AIG’s fiscal year relating to AIG’s periodic or current reports under the Exchange Act.ITEM 2 / PROPERTIES..............................................................................................................................................................................................AIG and its subsidiaries operate from over 400 offices in the United States and approximately 600 offices in over 75foreign countries. The following offices are located in buildings in the United States owned by AIG and itssubsidiaries:AIG Property Casualty:• 175 Water Street in New York, New York• Wilmington, Delaware• Stevens Point, Wisconsin• San Juan, Puerto RicoAIG Life and Retirement:• Amarillo, Ft. Worth and Houston, Texas• Nashville, TennesseeOther Operations:• Greensboro and Winston-Salem, North Carolina• Livingston, New Jersey• Stowe, VermontIn addition, AIG Property Casualty owns offices in approximately 20 foreign countries and jurisdictions includingArgentina, Bermuda, Colombia, Ecuador, Japan, Mexico, the U.K., Taiwan, and Venezuela. The remainder of theoffice space utilized by AIG and its subsidiaries is leased. AIG believes that its leases and properties are sufficientfor its current purposes.LOCATIONS OF CERTAIN ASSETS..............................................................................................................................................................................................As of December 31, 2012, approximately 11 percent of the consolidated assets of AIG were located outside the U.S.and Canada, including $260 million of cash and securities on deposit with regulatory authorities in those locations.See Note 3 to the Consolidated Financial Statements for additional geographic information. See Note 7 to theConsolidated Financial Statements for total carrying values of cash and securities deposited by our insurancesubsidiaries under requirements of regulatory authorities.Operations outside the U.S. and Canada and assets held abroad may be adversely affected by politicaldevelopments in foreign countries, including tax changes, nationalization and changes in regulatory policy, as well asby consequence of hostilities and unrest. The risks of such occurrences and their overall effect upon AIG vary fromcountry to country and cannot easily be predicted. If expropriation or nationalization does occur, AIG’s policy is totake all appropriate measures to seek recovery of any affected assets. Certain of the countries in which AIG’sbusiness is conducted have currency restrictions that generally cause a delay in a company’s ability to repatriateassets and profits. See also Item 1A. Risk Factors – Business and Operations for additional information.ITEM 3 / LEGAL PROCEEDINGS..............................................................................................................................................................................................For a discussion of legal proceedings, see Note 16 – Legal Contingencies to the Consolidated Financial Statements,which is incorporated herein by reference.ITEM 4 / MINE SAFETY DISCLOSURES..............................................................................................................................................................................................Not applicable...................................................................................................................................................................................................................................44 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
Page 9 and 10: ~63,000AIG EMPLOYEES AROUND THE WOR
Page 11 and 12: $115.1 millionAVERAGE CLAIMS PAID E
Page 13 and 14: $10,000MAXIMUM DONATION MADE BY AIG
Page 15 and 16: American International Group, Inc.F
Page 18 and 19: AMERICAN INTERNATIONAL GROUP, INC.A
Page 20 and 21: ITEM 1 / BUSINESS / AIG............
Page 22 and 23: ITEM 1 / BUSINESS / AIG............
Page 24 and 25: ITEM 1 / BUSINESS / AIG PROPERTY CA
Page 27 and 28: ITEM 1 / BUSINESS / AIG PROPERTY CA
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Page 39 and 40: ITEM 1 / BUSINESS..................
Page 49 and 50: ITEM 1A / RISK FACTORS.............
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Page 65 and 66: ITEM 6 / SELECTED FINANCIAL DATA...
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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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ITEM 7 / GLOSSARY..................
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ITEM 7 / GLOSSARY..................
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ITEM 7A / QUANTITATIVE AND QUALITAT
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ITEM 8 / INDEX TO FINANCIAL STATEME
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AMERICAN INTERNATIONAL GROUP, INC.C
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ITEM 8 / NOTE 1. BASIS OF PRESENTAT
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ITEM 8 / NOTE 2. SUMMARY OF SIGNIFI
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ITEM 8 / NOTE 3. SEGMENT INFORMATIO
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ITEM 8 / NOTE 3. SEGMENT INFORMATIO
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ITEM 8 / NOTE 4. DIVESTED BUSINESSE
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ITEM 8 / NOTE 4. DIVESTED BUSINESSE
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ITEM 8 / NOTE 5. BUSINESS COMBINATI
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ITEM 8 / NOTE 6. FAIR VALUE MEASURE
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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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