American International Group, Inc. (Exact Name of Registrant As Specified in Its Charter)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________ FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2015 Commission File Number 1-8787 American International Group, Inc. (Exact name of registrant as specified in its charter) Delaware 13-2592361 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 175 Water Street, New York, New York 10038 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (212) 770-7000 ________________ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. Large accelerated filer Accelerated filer Non-accelerated filer Smaller reporting company (Do not check if a smaller reporting company) Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No As of April 29, 2015, there were 1,333,395,436 shares outstanding of the registrant’s common stock. AMERICAN INTERNATIONAL GROUP, INC. QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2015 TABLE OF CONTENTS FORM 10-Q Item Number Description Page PART I — FINANCIAL INFORMATION Item 1 Condensed Consolidated Financial Statements 2 Note 1. Basis of Presentation 7 Note 2. Summary of Significant Accounting Policies 8 Note 3. Segment Information 11 Note 4. Discontinued Operations 12 Note 5. Fair Value Measurements 12 Note 6. Investments 27 Note 7. Lending Activities 34 Note 8. Variable Interest Entities 36 Note 9. Derivatives and Hedge Accounting 38 Note 10. Contingencies, Commitments and Guarantees 43 Note 11. Equity 51 Note 12. Noncontrolling Interests 54 Note 13. Earnings Per Share 55 Note 14. Employee Benefits 56 Note 15. Income Taxes 56 Note 16. Information Provided in Connection with Outstanding Debt 58 Note 17. Subsequent Events 64 Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations 65 Cautionary Statement Regarding Forward-Looking Information 66 Use of Non-GAAP Measures 68 Executive Overview 71 Results of Operations 83 Investments 114 Insurance Reserves 132 Liquidity and Capital Resources 142 Enterprise Risk Management 157 Critical Accounting Estimates 162 Regulatory Environment 163 Glossary 164 Acronyms 168 Item 3 Quantitative and Qualitative Disclosures About Market Risk 169 Item 4 Controls and Procedures 169 PART II — OTHER INFORMATION Item 1 Legal Proceedings 170 Item 1A Risk Factors 170 Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 170 Item 4 Mine Safety Disclosures 170 Item 6 Exhibits 170 SIGNATURES 171 1 PART I – FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS AMERICAN INTERNATIONAL GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) March 31, December 31, (in millions, except for share data) 2015 2014 Assets: Investments: Fixed maturity securities: Bonds available for sale, at fair value (amortized cost: 2015 - $242,114; 2014 - $243,307) $ 260,822 $ 259,859 Other bond securities, at fair value (See Note 6) 19,013 19,712 Equity Securities: Common and preferred stock available for sale, at fair value (cost: 2015 - $1,683; 2014 - $1,930) 3,766 4,395 Other common and preferred stock, at fair value (See Note 6) 1,100 1,049 Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2015 - $6; 2014 - $6) 25,313 24,990 Other invested assets (portion measured at fair value: 2015 - $9,196; 2014 - $9,394) 34,838 34,518 Short-term investments (portion measured at fair value: 2015 - $1,208; 2014 - $1,684) 11,961 11,243 Total investments 356,813 355,766 Cash 1,823 1,758 Accrued investment income 2,726 2,712 Premiums and other receivables, net of allowance 13,450 12,031 Reinsurance assets, net of allowance 22,208 21,959 Deferred income taxes 18,010 19,339 Deferred policy acquisition costs 9,708 9,827 Derivative assets, at fair value 1,621 1,604 Other assets, including restricted cash of $2,072 in 2015 and $2,025 in 2014 12,203 10,549 Separate account assets, at fair value 82,139 80,036 Total assets $ 520,701 $ 515,581 Liabilities: Liability for unpaid losses and loss adjustment expenses $ 74,490 $ 77,260 Unearned premiums 22,437 21,324 Future policy benefits for life and accident and health insurance contracts 43,244 42,749 Policyholder contract deposits (portion measured at fair value: 2015 - $1,882; 2014 - $1,561) 124,935 124,613 Other policyholder funds (portion measured at fair value: 2015 - $8; 2014 - $8) 4,415 4,669 Derivative liabilities, at fair value 2,651 2,273 Other liabilities (portion measured at fair value: 2015 - $178; 2014 - $350) 26,024 24,168 Long-term debt (portion measured at fair value: 2015 - $4,844; 2014 - $5,466) 31,999 31,217 Separate account liabilities 82,139 80,036 Total liabilities 412,334 408,309 Contingencies, commitments and guarantees (see Note 10) AIG shareholders’ equity: Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2015 - 1,906,671,492 and 2014 - 1,906,671,492 4,766 4,766 Treasury stock, at cost; 2015 - 559,593,905 shares; 2014 - 530,744,521 shares (20,820) (19,218) Additional paid-in capital 81,303 80,958 Retained earnings 32,073 29,775 Accumulated other comprehensive income 10,657 10,617 Total AIG shareholders’ equity 107,979 106,898 Non-redeemable noncontrolling interests 388 374 Total equity 108,367 107,272 Total liabilities and equity $ 520,701 $ 515,581 See accompanying Notes to Condensed Consolidated Financial Statements. 2 ITEM 1 / FINANCIAL STATEMENTS AMERICAN INTERNATIONAL GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months Ended March 31, (dollars in millions, except per share data) 2015 2014 Revenues: Premiums $ 8,822 $ 9,075 Policy fees 677 631 Net investment income 3,838 4,196 Net realized capital gains (losses): Total other-than-temporary impairments on available for sale securities (87) (50) Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Other comprehensive income (10) (4) Net other-than-temporary impairments on available for sale securities recognized in net income (97) (54) Other realized capital gains (losses) 1,438 (98) Total net realized capital gains (losses) 1,341 (152) Aircraft leasing revenue - 1,113 Other income 1,297 1,300 Total revenues 15,975 16,163 Benefits, losses and expenses: Policyholder benefits and losses incurred 6,551 6,797 Interest credited to policyholder account balances 935 955 Amortization of deferred policy acquisition costs 1,350 1,305 General operating and other expenses 2,949 3,024 Interest expense 340 479 Aircraft leasing expenses - 1,096 Loss on extinguishment of debt 68 238 Net (gain) loss on sale of properties and divested businesses 6 (4) Total benefits, losses and expenses 12,199 13,890 Income from continuing operations before income tax expense 3,776 2,273 Income tax expense 1,300 614 Income from continuing operations 2,476 1,659 Income (loss) from discontinued operations, net of income tax expense 1 (47) Net income 2,477 1,612 Less: Net income from continuing operations attributable to noncontrolling interests 9 3 Net income attributable to AIG $ 2,468 $ 1,609 Income per common share attributable to AIG: Basic: Income from continuing operations $ 1.81 $ 1.13 Loss from discontinued operations $ - $ (0.03) Net income attributable to AIG $ 1.81 $ 1.10 Diluted: Income from continuing operations $ 1.78 $ 1.12 Loss from discontinued operations $ - $ (0.03) Net income attributable to AIG $ 1.78 $ 1.09 Weighted average shares outstanding: Basic 1,365,951,690 1,459,249,393 Diluted 1,386,263,549 1,472,510,813 Dividends declared per common share $ 0.125 $ 0.125 See accompanying Notes to Condensed Consolidated Financial Statements. 3 ITEM 1 / FINANCIAL STATEMENTS AMERICAN INTERNATIONAL GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) Three Months Ended March 31, (in millions) 2015 2014 Net income $ 2,477 $ 1,612 Other comprehensive income, net of tax Change in unrealized appreciation (depreciation) of fixed maturity investments on which other-than-temporary credit impairments were taken (72) 89 Change in unrealized appreciation of all other investments 539 2,785 Change in foreign currency translation adjustments (459) (158) Change in retirement plan liabilities adjustment 29 9 Other comprehensive income 37 2,725 Comprehensive income 2,514 4,337 Comprehensive income attributable to noncontrolling interests 6 3 Comprehensive income attributable to AIG $ 2,508

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