American International Group, Inc

American International Group, Inc.

Financial Supplement Second Quarter 2010

This report should be read in conjunction with AIG's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 filed with the Securities and Exchange Commission. American International Group, Inc. Financial Supplement Table of Contents

Consolidated Asia Operating Statistics...... 35 Consolidated Statement of Income (Loss)……...... 1 - 2 Japan Operating Statistics...... 36 Consolidated Statement of Segment Operations ...... 3 – 4 Foreign Life Insurance & Retirement Services Notes ...... 37 Summary of Non-qualifying derivative hedging activities...... 5 Financial Services Consolidated Balance Sheet...... 6-7 Financial Services Operating Results...... 38 Debt and Capital...... 8 Consumer Finance Operating Results ...... 39 U.S. Government Support...... 9 Consumer Finance Other Data...... 40 Capital Structure...... 10 Financial Services Notes ...... 41 Book Value per Common Share ...... 11 American General Finance Real Estate Portfolio...... 42 General Insurance Other General Insurance Operating Statistics ...... 12 Other ...... 43 AIG Commercial Insurance Operating Statistics ...... 13 Other Notes ...... 44 AIG Commercial Insurance Gross Premiums Written by Line of Business...... 14 Parent Company Financial Statements ...... 45 - 48 Foreign General Insurance Operating Statistics...... 15 Pre –Tax Realized Gains (Losses) by Source by Business Segment………….…..49 Foreign General Insurance Gross Premiums Written...... 16 Investment Information General Insurance Notes...... 17 Cash and Investments by Segment...... 50 Domestic Life Insurance & Retirement Services AIGFP Balance Sheet ...... 51 Domestic Life Insurance & Retirement Services Operating Statistics ...... 18 Other Invested Assets by Segment...... 52 Domestic Life Insurance Operating Statistics ...... 19 Return on Average Partnership and Mutual Funds Assets by Segment...... 53 Domestic Life Insurance Sales and Deposits ...... 20 Comment on Reg G ...... 54 Domestic Life Insurance Other Data ...... 21 Domestic Life Insurance Deferred Policy Acquisition Costs, Sales Inducements and Value of Business Acquired...... 22 Domestic Life Insurance Notes...... 23 Domestic Retirement Services Operating Statistics...... 24 Domestic Retirement Services Product Statistics ...... 25 Domestic Retirement Services Account Value Rollforward ...... 26 Domestic Retirement Services Spread Information ...... 27 - 28 Domestic Life Insurance & Retirement Services Deferred Policy Acquisition Costs, Sales Inducements and Value of Business Acquired...... 29 Domestic Retirement Services – Group Retirement Products...... 30 Domestic Retirement Services – Individual Variable Annuities Guaranteed Benefits...... 31 - 32 Domestic Retirement Services Notes...... 33 Foreign Life Insurance & Retirement Services Foreign Life Insurance & Retirement Services Operating Statistics ...... 34

American International Group, Inc. Investor Relations Teri L. Watson, Vice President (212)770-7074 American International Group, Inc. Consolidated Statement of Income (Loss) (in millions, except per share data) Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Revenues: Premiums and other considerations $ 12,649 $ 14,074 (10.1) % $ 12,426 1.8 % $ 25,075 $ 29,118 (13.9) % Net investment income 5,386 6,858 (21.5) 5,545 (2.9) 10,931 8,332 31.2 Net realized capital losses: (1) Total other-than-temporary impairments on available for sale securities (847) (1,084) NM (317) NM (1,164) (4,702) NM Portion of other-than-temporary impairments on available for sale fixed maturity securities recognized in Accumulated other comprehensive loss 251 369 (32.0) (521) NM (270) 369 NM Net other-than-temporary impairments on available for sale securities recognized in net income (loss) (596) (715) NM (838) NM (1,434) (4,333) NM Other realized capital gains (22) (416) NM 397 NM 375 453 (17.2) Total net realized capital losses (618) (1,131) NM (441) NM (1,059) (3,880) NM Unrealized market valuation gains (losses) on AIGFP super senior credit default swap portfolio 161 636 (74.7) 119 35.3 280 184 52.2 Other income (1) 2,404 3,485 (31.0) 2,262 6.3 4,666 6,269 (25.6) Total revenues (1) 19,982 23,922 (16.5) 19,911 0.4 39,893 40,023 (0.3) Benefits, claims and expenses: Policyholder benefits and claims incurred 10,607 13,570 (21.8) 10,428 1.7 21,035 26,713 (21.3) Policy acquisition and other insurance expenses 3,968 4,484 (11.5) 3,861 2.8 7,829 8,646 (9.4) Interest expense 2,009 2,553 (21.3) 1,876 7.1 3,885 5,343 (27.3) Restructuring expenses and related asset impairment and other expenses 70 326 (78.5) 120 (41.7) 190 678 (72.0) Net loss (gain) on sale of divested businesses (2) (198) 566 NM 76 NM (122) 307 NM Other expenses 1,923 2,252 (14.6) 1,793 7.3 3,716 4,495 (17.3) Total benefits, claims and expenses 18,379 23,751 (22.6) 18,154 1.2 36,533 46,182 (20.9) Income (loss) from continuing operations before income tax expense (benefit) 1,603 171 837.4 1,757 (8.8) 3,360 (6,159) NM Income tax expense (benefit) 311 (415) NM (423) NM (112) (1,284) NM Income (loss) from continuing operations 1,292 586 120.5 2,180 (40.7) 3,472 (4,875) NM Income (loss) from discontinued operations, net of income tax expense (benefit) (3) (3,407) 1,259 NM 325 NM (3,082) 1,587 NM Net income (loss) (2,115) 1,845 NM 2,505 NM 390 (3,288) NM Less: Net Income (loss) from continuing operations attributable to noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York 508 - NM 519 (2.1) 1,027 - NM Other 20 (7) NM 119 (83.2) 139 (775) NM Total net income (loss) from continuing operations attributable to noncontrolling interests 528 (7) 638 NM 1,166 (775) NM Income (loss) from discontinued operations attributable to noncontrolling interests 13 30 (56.7) 10 30.0 23 18 27.8 Total net income (loss) attributable to noncontrolling interests 541 23 2,252.2 648 (16.5) 1,189 (757) Net income (loss) attributable to AIG $ (2,656) $ 1,822 NM $ 1,857 NM $ (799) $ (2,531) NM % Net income (loss) attributable to AIG common shareholders $ (538) $ 311 NM $ 377 NM $ (161) $ (3,826) NM % Income (loss) per common share attributable to AIG: Basic: Income (loss) from continuing operations $ 1.14 $ 0.47 142.3 $ 2.30 (50.5) % $ 3.44 $ (39.89) NM % Income (loss) from discontinued operations $ (5.10) $ 1.83 NM $ 0.47 142.4 $ (4.63) $ 11.60 NM Diluted: Income (loss) from continuing operations $ 1.14 $ 0.47 142.2 $ 2.30 (50.5) $ 3.44 $ (39.89) NM % Income (loss) from discontinued operations $ (5.10) $ 1.83 NM $ 0.47 142.4 $ (4.63) $ 11.60 NM Weighted average shares outstanding: Basic 135.8 135.3 135.7 135.7 135.3 Diluted 135.9 135.3 135.7 135.8 135.3 (See Accompanying Notes on Page 2)

1 American International Group, Inc. Consolidated Statement of Income (Loss) 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 5) and other-than-temporary impairment charges (Refer to page 49). (2) Includes the net gain (loss) on sales of divested businesses that did not qualify as discontinued operations. (3) Includes the results of operations for each of the following companies classified as discontinued operations. These companies were previously a component of the Foreign Life Insurance & Retirement Services reportable segment. AIG expects the sale of these businesses to close during the fourth quarter of 2010: • As of March 7, 2010, AIG and ALICO Holdings LLC, a special purpose vehicle formed by AIG and the FRBNY (ALICO Holdings) entered into a definitive agreement with MetLife, Inc. (MetLife) for the sale of American Life Insurance Company (ALICO) by ALICO Holdings to MetLife and the sale of Delaware American Life Insurance Company by AIG to MetLife. • On October 12, 2009, AIG entered into an agreement to sell its 97.57 percent share of Nan Shan Life Insurance Company, Ltd. (Nan Shan).

A summary of income (loss) from discontinued operations is as follows:

Three Months Six Months Ended June 30, Ended June 30, (in millions) 2010 2009 2010 2009 Revenues: Premiums and other considerations $ 3,973 $ 3,744 $ 8,139 $ 7,565 Net investment income 1,412 2,027 2,955 2,917 Net realized capital gains (losses) (145) 398 (189) (214) Other income (40) (1) (40) (1) Total revenues 5,200 6,168 10,865 10,267 Benefits, claims and expenses * 8,093 4,973 13,090 9,055 Interest expense allocation 41 47 82 102 Income (loss) from discontinued operations (2,934) 1,148 (2,307) 1,110 Loss on sale (294) - (401) - Income (loss) from discontinued operations, before income tax expense (benefit) (3,228) 1,148 (2,708) 1,110 Income tax expense (benefit) 179 (111) 374 (477) Income (loss) from discontinued operations, net of tax $ (3,407) $ 1,259 $ (3,082) $ 1,587

* Includes a goodwill impairment charge of $3.3 billion for the three and six months ended June 30, 2010 related to goodwill that had been allocated to ALICO as a consequence of ALICO's removal from the Japan and other operating segment.

2 American International Group, Inc. Consolidated Statement of Segment Operations (in millions, except share data) Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) General Insurance Net premiums written $ 7,792 $ 7,919 (1.6) % $ 7,644 1.9 % $ 15,436 $ 15,652 (1.4)% Net premiums earned 7,733 8,017 (3.5) 7,641 1.2 15,374 16,295 (5.7) Claims and claims adjustment expenses incurred 5,575 5,638 (1.1) 5,459 2.1 11,034 11,427 (3.4) Change in deferred acquisition costs (104) 15 NM (18) NM (122) 20 NM Other underwriting expenses 2,420 2,219 9.1 2,392 1.2 4,812 4,426 8.7 Underwriting profit (loss) (158) 145 NM (192) NM (350) 422 NM Net investment income 1,113 869 28.1 1,071 3.9 2,184 1,304 67.5 Operating income (loss) before net realized capital gains (losses) and bargain 955 1,014 (5.8) 879 8.6 1,834 1,726 6.3 purchase gain Net realized capital gains (losses) 58 (37) NM 137 (57.7) 195 (645) NM Bargain purchase gain (1) - - NM 406 NM 406 - NM Pre-tax income (loss) 1,013 977 3.7 1,422 (28.8) 2,435 1,081 125.3 Domestic Life Insurance & Retirement Services Premiums and other considerations 1,315 1,331 (1.2) 1,315 - 2,630 2,771 (5.1) Deposits and other considerations not included in revenues under GAAP 3,653 2,687 36.0 3,422 6.8 7,075 6,311 12.1 Premiums, deposits and other considerations 4,968 4,018 23.6 4,737 4.9 9,705 9,082 6.9 Net investment income 2,628 2,221 18.3 2,707 (2.9) 5,335 4,151 28.5 Operating income (loss) before net realized capital gains (losses) 1,054 254 NM 1,123 (6.1) 2,177 94 2,216.0 Net realized capital losses (966) (54) NM (796) NM (1,762) (1,721) NM Pre-tax income (loss) 88 200 (56.0) 327 (73.1) 415 (1,627) NM Foreign Life Insurance & Retirement Services (2) Premiums and other considerations 3,377 3,100 8.9 3,234 4.4 6,611 6,222 6.3 Deposits and other considerations not included in revenues under GAAP 1,186 1,011 17.3 1,158 2.4 2,344 1,904 23.1 Premiums, deposits and other considerations 4,563 4,111 11.0 4,392 3.9 8,955 8,126 10.2 Net investment income 1,239 2,428 (49.0) 1,067 16.1 2,306 3,306 (30.2) Operating income before net realized capital gains (losses) 820 553 48.3 782 4.9 1,602 1,275 25.6 Net realized capital gains (losses) 20 (330) NM (61) NM (41) (792) NM Pre-tax income (loss) 840 223 276.7 721 16.5 1,561 483 223.2 Financial Services Operating income (loss), excluding non-qualifying derivative hedging activities and net realized capital gains (losses) (3) 42 (103) NM (474) NM (432) (1,193) NM Non-qualifying derivative hedging activities - 4 NM - NM - 6 NM Net realized capital gains (losses) (11) 223 NM 35 NM 24 181 (86.7) Pre-tax income (loss) 31 124 (75.0) (439) NM (408) (1,006) NM Other before net realized capital gains (losses) (766) (1,765) NM (355) NM (1,121) (5,293) NM Other net realized capital gains 241 265 (9.1) 91 164.8 332 343 (3.2) Consolidation and elimination adjustments (4) 156 147 6.1 (10) (1,660.0) 146 (140) NM Income (loss) from continuing operations before income tax expense (benefit) 1,603 171 NM 1,757 (8.8) 3,360 (6,159) NM Income tax expense (benefit) (5) 311 (415) NM (423) NM (112) (1,284) NM Income (loss) from continuing operations 1,292 586 NM 2,180 (40.7) 3,472 (4,875) NM Income (loss) from discontinued operations, net of tax (3,407) 1,259 NM 325 NM (3,082) 1,587 NM Net income (loss) (2,115) 1,845 NM 2,505 NM 390 (3,288) NM Less: Net income (loss) from continuing operations attributable to noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York 508 - NM 519 (2.1) 1,027 - NM Other 20 (7) NM 119 (83.2) 139 (775) NM Total net income (loss) from continuing operations attributable to noncontrolling interests 528 (7) NM 638 (17.2) 1,166 (775) NM Income from discontinued operations attributable to noncontrolling interests 13 30 (56.7) 10 30.0 23 18 27.8 Total net income (loss) attributable to noncontrolling interests 541 23 NM 648 (16.5) 1,189 (757) NM Net income (loss) attributable to AIG (2,656) 1,822 NM 1,857 NM (799) (2,531) NM Income (loss) from discontinued operations attributable to AIG, net of tax (3,420) 1,229 NM 315 NM (3,105) 1,569 NM Net gain (loss) on sale of divested businesses, net of tax 93 (327) NM (76) NM 17 (155) NM Net realized capital losses, net of tax (564) (899) NM (287) NM (851) (3,282) NM Non-qualifying derivative hedging activities, excluding net realized gains (losses), net of tax (102) 676 NM (94) NM (196) 558 NM Bargain purchase gain - - NM 406 NM 406 - NM Adjusted net income (loss) attributable to AIG $ 1,337 $ 1,143 17.0 % $ 1,593 (16.1) % $ 2,930 $ (1,221) NM % Income (loss) per common share attributable to AIG - diluted : Income (loss) from continuing operations $ 1.14 $ 0.47 142.2 $ 2.30 (50.5) $ 3.44 $ (39.89) NM Income (loss) from discontinued operations (5.10) 1.83 NM 0.47 NM (4.63) 11.60 NM Adjusted net income (loss) $ 1.99 $ 1.71 16.4 $ 2.38 (16.4) $ 4.37 $ (8.99) NM Weighted average shares outstanding - diluted 135.9 135.3 135.7 135.8 135.3 Effective tax rates (6): Net income (loss) from continuing operations before noncontrolling interest 19.4% (242.7)% (24.0)% (3.3)% 20.9% Net income (loss) attributable to AIG 25.5% (205.4)% (52.7)% (13.4)% 23.7% Adjusted net income (loss) 15.9% (33.0)% (28.1)% (3.4)% 40.7% Return on equity attributable to AIG NM 14.1% 10.2% NM NM (See Accompanying Notes on Page 4)

3 American International Group, Inc. Consolidated Statement of Segment Operations Notes

(1) Represents a bargain purchase gain related to the purchase of additional voting shares of Fuji for $145 million. (See Note (4) on Page 17). (2) Following the classification of ALICO and Nan Shan as discontinued operations, AIG’s remaining Foreign Life Insurance & Retirement Services operations are conducted through AIA, AIRCO, AIG Star Life Insurance Co. Ltd. and AIG Edison Life Insurance Company. (3) Includes unrealized market valuation gains and losses on Capital Markets’ super senior credit default swap portfolio and the pre-tax effect of changes in credit spreads on the valuation of Capital Markets’ assets and liabilities. Refer to page 38. (4) Includes income from certain AIG managed partnerships, private equity and real estate funds that are consolidated. Such income is offset in net income (loss) attributable to noncontrolling interests, which is not a component of operating income. (5) Includes a change in estimated U.S. tax liability with respect to the potential sale of subsidiaries, partially offset by an increase in the valuation allowance and reserve for uncertain tax positions. (6) The calculation of the effective tax rates is as follows:

Three Months Ended June 30, 2010 Six Months Ended June 30, 2010

Income (loss) Income Tax Net Effective Income (loss) Income Tax Net Effective (dollars in millions) before tax Expense (benefit) Income (loss) Tax Rate * before tax Expense (benefit) Income (loss) Tax Rate *

Income (Loss) from continuing operations $ $ $ $ $ $ 1,603 311 1,292 19.4% 3,360 (112) 3,472 -3.3% Noncontrolling interests 578 50 528 1,326 160 1,166 Income (loss) attributable to AIG 1,025 261 764 25.5% 2,034 (272) 2,306 -13.4% Net realized capital losses (607) (43) (564) (1,026) (175) (851) Non-qualifying derivative hedging losses (157) (55) (102) (302) (106) (196) Gain on sale of divested businesses 198 105 93 122 105 17 Bargain purchase gain - - - 406 - 406 Adjusted net income (loss) $ 1,591 $ 254 $ 1,337 15.9% $ 2,834 $ (96) $ 2,930 -3.4% * Effective tax rates are calculated based on Income (loss) from continuing operations and excludes discontinued operations.

4 American International Group, Inc. Summary of Non-qualifying Derivative Hedging Activities (1) (in millions) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2010 2009 2010 2010 2009 Effect on income (loss) from continuing operations before net realized capital gains (losses): Financial Services $ - $ 4 $ - $ - $ 6 Intercompany Eliminations: Continuing Operations (2) (401) 1,285 (338) (739) 935 Discontinued Operations (2) (26) 32 18 (8) 84 Foreign Exchange Rates on Economically Hedged Debt Exposures for Financial Services (3): 270 (280) 175 445 (166) Total pre-tax effect (157) 1,041 (145) (302) 859 Total after-tax effect (102) 676 (94) (196) 558 Effect on net realized capital gains (losses) (4): Financial Services 10 224 1 11 225 General Insurance 37 (41) (36) 1 (67) Domestic Life Insurance & Retirement Services (5) 370 (706) (388) (18) (171) Foreign Life Insurance & Retirement Services (8) 70 481 (10) 60 (194) Other 78 658 (217) (139) 1,537 Eliminations and Reclassifications (6) 130 (1,200) 231 361 (1,343) Total pre-tax effect 695 (584) (419) 276 (13) Total after-tax effect 452 (380) (272) 179 (8) Non-qualifying derivative hedging activities effect on total income: Total pre-tax effect 538 457 (564) (26) 846 Total after tax-effect 350 296 (366) (17) 550 Effect of non-qualifying derivative hedging activities included in discontinued operations (7)(8): Foreign Life Insurance & Retirement Services (179) (167) (40) (219) 115 Eliminations and Reclassifications - Discontinued Operations (42) (123) 6 (36) (80) Total pre-tax effect (221) (290) (34) (255) 35 Total after tax-effect $ (144) $ (188) $ (22) $ (166) $ 22

(1) This schedule summarizes the effect of derivative gains and losses on operating income that are effective economic hedges of investments and borrowings that did not qualify for hedge accounting. Since hedge accounting has not been applied to the periods presented, an offsetting gain or loss on the hedged exposure has not been recognized in operating income. The mismatch in the earnings recognition on the derivatives and the hedged exposures has resulted in volatility in the operating results that does not reflect properly the effectiveness of these hedging activities. (2) Represents the elimination of revenues reported in the Financial Services segment from intercompany hedging activities. (3) Represents the reclassification of revenues reported in the Financial Services segment arising from foreign exchange rate movements on economically hedged exposures. (4) In general, AIG Credit spreads widened for the three months ended June 30, 2010, generating gains on derivative liabilities. (5) The majority of the realized capital gain for the three months ended June 30, 2010 was driven by short positions on the equity market via exchange traded put options. (6) Represents the elimination of net realized capital gains (losses) from intercompany hedging activities and the reclassification of foreign exchange rates on economically hedged exposures. (7) Represents the impact on net realized capital gains (losses) for ALICO and Nan Shan. (8) Includes realized capital gains (losses) for ALICO and Nan Shan which are reported as discontinued operations.

5 American International Group, Inc. Consolidated Balance Sheet (in millions) June 30, December 31, 2010 2009 Assets: Investments: Fixed maturity securities (1) $ 342,975 $ 396,794 Equity securities 16,292 17,840 Mortgage and other loans receivable, net of allowance 24,817 27,461 Finance receivables, net of allowance 17,862 20,327 Flight equipment primarily under operating leases, net of accumulated depreciation 40,973 44,091 Other invested assets 37,009 45,235 Securities purchased under agreements to resell, at fair value 965 2,154 Short-term investments 39,109 47,263 Total investments 520,002 601,165 Cash 2,840 4,400 Accrued investment income 4,223 5,152 Premiums and other receivables, net of allowance 18,329 16,549 Reinsurance assets, net of allowance 24,414 22,425 Current and deferred income taxes 3,999 4,108 Deferred policy acquisition costs 28,970 40,814 Real estate and other fixed assets, net of accumulated depreciation 3,608 4,142 Unrealized gain on swaps, options and forward transactions, at fair value 7,338 9,130 Goodwill 2,640 6,195 Other assets, including prepaid commitment asset 18,309 18,976 Separate account assets, at fair value 53,803 58,150 Assets held for sale (2) 162,056 56,379 Total assets $ 850,531 $ 847,585 Liabilities: Liability for unpaid claims and claims adjustment expense $ 85,604 $ 85,386 Unearned premiums 24,831 21,363 Future policy benefits for life and accident and health insurance contracts 92,949 116,001 Policyholder contract deposits 156,758 220,128 Other policyholder funds 13,975 13,252 Commissions, expenses and taxes payable 3,704 4,950 Insurance balances payable 4,015 4,393 Funds held by companies under reinsurance treaties 705 774 Securities sold under agreements to repurchase 4,056 3,505 Securities and spot commodities sold but not yet purchased, at fair value 226 1,030 Unrealized loss on swaps, options and forward transactions, at fair value 5,716 5,403 Trust deposits and deposits due to banks and other depositors 950 1,641 Other liabilities 21,745 22,503 Federal Reserve Bank of New York Commercial Paper Funding Facility - 4,739 Federal Reserve Bank of New York credit facility 26,457 23,435 Other long-term debt 108,286 113,298 Separate account liabilities 53,803 58,150 Liabilities held for sale (2) 142,104 48,599 Total liabilities 745,884 748,550 Commitments, contingencies and guarantees Redeemable noncontrolling interests in partially owned consolidated subsidiaries 1,923 959 AIG shareholders' equity: Preferred Stock, Series E 41,605 41,605 Preferred Stock, Series F 7,378 5,179 Preferred Stock, Series C 23,000 23,000 Common stock 354 354 Treasury stock, at cost (873) (874) Additional paid-in capital 6,297 6,358 Accumulated deficit (12,120) (11,491) Unrealized appreciation (depreciation) of fixed maturity securities on which other-than-temporary credit impairments were taken, net of tax (1,011) (1,810) Unrealized appreciation (depreciation) of all other investments, net of tax 11,177 7,145 Net derivative gains (losses) arising from cash flow hedging activities, net of tax (67) (128) Foreign currency translation adjustments, net of tax 780 1,630 Retirement plan liabilities adjustment, net of tax (1,050) (1,144) Total AIG shareholders' equity 75,470 69,824 Noncontrolling interests: Noncontrolling nonvoting, callable, junior and senior preferred interests held by Federal Reserve Bank of New York 25,567 24,540 Other 1,687 3,712 Total noncontrolling interests 27,254 28,252 Total equity 102,724 98,076 Total liabilities and equity $ 850,531 $ 847,585

(See Accompanying Notes on Page 7)

6 American International Group, Inc. Consolidated Balance Sheet Notes

(1) Includes interests in Maiden Lane II and Maiden Lane III of $1.0 billion and $5.6 billion, respectively, as of June 30, 2010. (2) Assets and liabilities held for sale at June 30, 2010 and December 31, 2009 include the following businesses held for sale. • ALICO at June 30, 2010; • Nan Shan at June 30, 2010 and December 31, 2009; • AIG Bank Polska at December 31, 2009. This sale was completed on June 8, 2010. • AIG’s investment advisory and third party asset management businesses at December 31, 2009. This sale was completed on March 26, 2010.

June 30, December 31, (in millions) 2010 2009 Assets: Fixed maturity securities $ 111,591 $ 34,495 Deferred policy acquisition costs 13,670 3,322 Equity securities 6,339 2,947 Other invested assets 8,977 4,256 Short-term investments 8,909 3,501 Separate account assets 3,623 3,467 Mortgage and other loans receivable, net 6,324 3,997 Goodwill 9 25 Other assets 469 369 Total Assets of businesses held for sale 159,911 56,379 Flight equipment* 2,145 - Assets held for sale 162,056 56,379 Liabilities: Future policy benefits for life and accident and health insurance contracts $ 64,583 $ 38,023 Policyholder contract deposits 65,782 3,133 Separate account liabilities 3,623 3,467 Other liabilities 8,116 3,976 Total Liabilities of businesses held for sale $ 142,104 $ 48,599 * Represents 55 aircraft that are under agreements for sale by ILFC as of June 30, 2010.

7 American International Group, Inc. Debt and Capital (dollars in millions)

Debt and Hybrid Capital Interest Expense (a) June 30, Dec. 31, Inc. Three Months Ended Six Months Ended 2010 2009 (Dec.) June 30, 2010 June 30, 2009 June 30, 2010 June 30, 2009 Financial debt: FRBNY Credit Facility $ 26,457 $ 23,435 12.9 % $ 755 (b) $ 1,374 (b) $ 1,588 $ 2,904 AIG notes and bonds payable 9,384 10,419 (9.9) 124 128 248 257 AIG loans and mortgage payable 422 438 (3.7) - (1) 1 2 AIGLH notes and bonds payable 798 798 - 15 15 30 30 Liabilities connected to trust preferred stock 1,339 1,339 - 27 27 54 54 AIG loans to financial services subsidiaries 98 (1,213) NM - (c) - (c) - (b) - (b) AIG Funding loans to financial services subsidiaries- net (4,550) (3,505) NM - (c) - (c) - (b) - (b) Total 33,948 31,711 7.1 921 1,543 1,921 3,247 Operating debt: AIG Funding commercial paper - 1,997 NM - 29 3 67 MIP matched notes and bonds payable 12,344 13,371 (7.7) 96 106 194 219 Series AIGFP matched notes and bonds payable 3,980 3,913 1.7 76 75 152 151 AIGFP borrowings (d) 12,637 15,937 (20.7) - - - - ILFC borrowings 27,521 26,173 5.2 300 288 535 605 AGF borrowings 17,325 20,119 (13.9) 261 249 519 514 AIGCFG borrowings 43 216 (80.1) 4 20 19 53 Other Subsidiaries 452 295 53.2 4 4 9 12 Borrowings of consolidated investments 4,719 5,141 (8.2) 38 34 75 70 AIG loans to financial services subsidiaries (98) 1,213 NM - (c) - (c) - (b) - (b) AIG Funding loans to financial services subsidiaries- net 4,550 3,505 29.8 - (c) - (c) - (b) - (b) Total 83,473 91,880 (9.1) 779 805 1,506 1,691 Hybrid - debt securities: Junior subordinated debt 11,442 12,001 (f) (4.7) 224 217 441 428 Hybrid - mandatorily convertible units: Junior subordinated debt attributable to equity units 5,880 5,880 (e) (f) - 90 86 175 171 Total $ 134,743 $ 141,472 (4.8)% $ 2,014 $ 2,651 $ 4,043 $ 5,537 AIG capitalization: Total equity $ 102,724 $ 98,076 4.7 % Hybrid - debt securities 11,442 12,001 (f) (4.7) Hybrid - mandatorily convertible units 5,880 5,880 (e) (f) - Total consolidated equity and hybrid capital 120,046 115,957 3.5 Financial debt 33,948 31,711 7.1 Total capital $ 153,994 $ 147,668 4.3 % Ratios: Total equity / Total capital 66.7% 66.4% Hybrid - debt securities / Total capital 7.4% 8.1% Hybrid - mandatorily convertible units / Total capital 3.8% 4.0% Financial debt / Total capital 22.0% 21.5% (a) Includes $(36) million, $51 million, $76 million, and $92 million of interest expense in the three-month periods ended June 30, 2010 and 2009 and six-month periods ended June 30, 2010 and 2009, respectively, reported in Other Income (loss) and Policy acquisition and other insurance expenses on the Consolidated Statement of Income (Loss). (b) Includes $41 million, $47 million, $82 million, and $102 million of interest expense in the three-month periods ended June 30, 2010 and 2009 and six-month periods ended June 30, 2010 and 2009, respectively allocated to discontinued operations. (c) Amounts are eliminated in consolidation. (d) Borrowings are carried at fair value with fair value adjustments reported in Other income (loss) on the Consolidated Statement of Income (Loss). Contractual interest payments amounted to $189.9 million and $584.1 million for the six months ended June 30, 2010 and twelve months ended December 31, 2009, respectively. (e) The equity units consist of an ownership interest in AIG junior subordinated debentures and a stock purchase contract obligating the holder of an equity unit to purchase, and obligating AIG to sell, a variable number of shares of AIG common stock on three dates in 2011. (f) 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.

8 as of 3/31/2010 as of 6/30/2010

TOTAL TOTAL UNDRAWN* UNDRAWN* ML II ML II Understanding AIG’s Obligations ML III ML III $32.6 $31.0 to the U.S. Government $34.8 $35.5 DEBT $27.4 DEBT $26.5 Support provided to AIG includes a Federal Reserve Bank of New York to be $74.2 to be $74.7 (FRBNY) Revolving Credit Facility, a U.S. Treasury Department direct equity repaid repaid by AIG by AIG investment in AIG through TARP, which includes a commitment to provide EQUITY EQUITY * AIG has not drawn the full amount of the government assistance available. to be to be cash funding, and an FRBNY preferred equity interest in Alico and AIA The Total Undrawn is the remaining balance available to AIG on the repaid repaid special purpose vehicles (SPVs). At June 30, 2010, AIG owed the U.S. Treasury Series F commitment and the FRBNY Revolving Credit Facility. by AIG by AIG government an outstanding debt and equity balance of $101.2 billion. The Total Outstanding Assistance $134.2 billion $132.1 billion balance outstanding on the FRBNY loans to the Maiden Lane II and Maiden Does not include AIG’s participation in the FRBNY Commercial Paper Funding Facility Lane III SPVs, $14.7 billion and $16.3 billion, respectively, are not obligations Outstanding debt and equity balance requiring repayment by AIG $101.6 billion $101.2 billion of AIG and are not reflected on AIG’s balance sheet. The difference between the government assistance outstanding and the balance requiring repayment is attributable to the outstanding on the Maiden Lane II and III loans.

FRBNY Revolving Credit Facility ($33.728 billion available capacity at 6/30/10) DEBT $5.8 billion (interest) $6.0 billion The Federal Reserve Bank of New York (FRBNY) initially provided AIG with a revolving credit facility of $85 billion. That facility was reduced to $60 billion in November 2008 with proceeds from the Treasury’s TARP share purchase, and to $35 billion in December 2009, when AIG closed two transactions with the FRBNY that reduced the debt AIG (undrawn) owed the FRBNY by $25 billion in exchange for the FRBNY’s acquisition of preferred equity interests in the AIA and Alico SPVs (see below). As of June 30, 2010, the facility availability was reduced to $33.728 billion as a result of mandatory prepayments relating to asset sales. The outstanding balance includes accumulated interest and fees. Accumulated interest does not reduce the available balance of the revolving credit facility. $21.6 billion (drawn) $20.5 billion

EQUITY U.S. Dept. of Treasury TARP Series D/E Shares ($40 billion authorized) Treasury purchased Series D cumulative preferred stock from AIG in November 2008. AIG used the proceeds to pay down the FRBNY Revolving Credit Facility. These shares were later exchanged for Series E noncumulative preferred shares. Unpaid dividends on the series D shares were added to the liquidation preference of the Series E shares. $41.6 billion $41.6 billion

EQUITY U.S. Dept. of Treasury TARP Series F Shares ($29.835 billion authorized) Through the purchase of AIG’s Series F noncumulative preferred shares, the Treasury has committed to provide AIG up to $29.835 billion to meet liquidity and capital needs in exchange for an increase in the aggregate liquidation preference of the Series F shares. $7.5 billion $7.5 billion

EQUITY Preferred Interests in the AIA and Alico SPVs held by FRBNY ($25 billion authorized) In December 2009, AIG transferred to the FRBNY preferred equity interests in newly-formed special purpose vehicles (SPVs) in exchange for a $25 billion reduction of the balance outstanding and the maximum credit available under the FRBNY Credit Facility. The FRBNY holds a preferred interest in the AIA SPV for $16 billion and a preferred interest in the Alico SPV for $9 billion. Cash generated by the monetization of the Alico and AIA units will be used to repay the FRBNY. $25.1 billion $25.6 billion

FRBNY Investment in AIG-related RMBS Maiden Lane II SPV ($22.5 billion authorized) In November 2008, FRBNY created this SPV to provide AIG liquidity by purchasing residential mortgage backed securities from AIG life insurance companies. FRBNY provided a loan to Maiden Lane II for the purchases. It also terminated a previously established securities lending arrangement with AIG. The actual amount funded was $19.5 billion. Loans to MLII are expected to be repaid with the proceeds from the interest and principal payments or from the liquidation of the assets in the facility. $15.3 billion $14.7 billion

FRBNY Investment in AIG-related CDOs Maiden Lane III SPV ($30 billion 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 actual amount funded was $24.3 billion. Loans to MLIII are expected to be repaid with the proceeds from the interest and principal payments or from the liquidation of the assets in the facility. $17.3 billion $16.3 billion 9 AMERICAN INTERNATIONAL GROUP, INC. CAPITAL STRUCTURE

Note that all obligations within the same level rank pari passu (equally and without preference) unless otherwise noted.

LEVEL RANK LEVEL NAME DESCRIPTION OF OBLIGATION ONE SECURED FRBNY Credit Facility AIG Senior Debt Securities (including MIP and “Series AIGFP”) TWO SENIOR UNSECURED o o Guarantees by AIG of subsidiary indebtedness and payment obligations (1) o Series A-1 through A-8 junior subordinated debentures (aka “hybrid securities”) THREE JUNIOR SUBORDINATED o Series B-1, B-2 and B-3 junior subordinated debentures (aka debt issued as part of “Equity Units”) SENIOR PREFERRED STOCK FOUR o Series E Preferred Stock(2) Senior “TARP” Fixed Rate Non–Cumulative Perpetual Preferred Stock o Series F Preferred Stock(3) JUNIOR PREFERRED STOCK FIVE Perpetual, Convertible, Participating Preferred Stock o Series C Preferred Stock SIX COMMON STOCK Common Stock, par value $2.50 per share

______

(1) Note that the guarantees by AIG of the American General (i.e., AIG Life Holdings (US), Inc.) trust preferred securities (American General Capital II, American General Institutional Capital A and American General Institutional Capital B) only apply to payments actually made to the trust in respect of the underlying American General junior subordinated debentures, and AIG’s guarantee of the debentures is subordinate to the guarantees by AIG of the American General (i.e., AIG Life Holdings (US), Inc.) senior debt; no payments may be made on this guarantee if American General is prohibited from making payments on the debentures.

(2) On April 17, 2009, AIG entered into an exchange agreement with the Department of the Treasury pursuant to which, among other things, the Department of the Treasury exchanged 4,000,000 shares of the Series D Fixed Rate Cumulative Perpetual Preferred Stock, par value $5.00 per share (the Series D Preferred Stock), for 400,000 shares of AIG’s Series E Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share (the “Series E Preferred Stock”).

(3) On April 17, 2009, AIG entered into a purchase agreement with the Department of the Treasury pursuant to which, among other things, AIG issued and sold to the Department of the Treasury 300,000 shares of Series F Fixed Rate Non-Cumulative Perpetual Preferred Stock, par value $5.00 per share (the “Series F Preferred Stock”), each share with a zero initial liquidation preference, and a warrant to purchase up to 150 shares of AIG’s common stock, par value $2.50 per share. Pursuant to the purchase agreement, the Department of the Treasury has committed for five years to provide immediately available funds in an amount up to $29.835 billion so long as on the applicable drawdown date (i) AIG is not a debtor in a pending case under Title 11 of the United States Code and (ii) the AIG Credit Facility Trust, a trust established for the sole benefit of the United States Treasury, and the Department of the Treasury in the aggregate beneficially own more than 50 percent of the aggregate voting power of AIG’s voting securities. The liquidation preference of each share of the AIG Series F Preferred Stock increases by the pro rata amount of any drawdown on the commitment.

American International Group, Inc. Book Value per Common Share (dollars in millions, except per share amounts)

(2÷3) (2) Book Value Per Share, (1) Total AIG Shareholders' (3) (1÷3) Excluding Unrealized Pro Forma Total AIG Equity, excluding Total Common Book Value Appreciation (Depreciation) Book Value Shareholders' Unrealized Appreciation Shares Per Share on Investments Per Share (a) Equity (Depreciation) on Investments Outstanding

December 31, 2006 $ 781.77 $ 704.24 $ - $ 101,677 $ 91,594 130,059,810 December 31, 2007 757.45 722.86 - 95,801 91,426 126,479,203 December 31, 2008 391.94 425.05 - 52,710 57,162 134,483,454 December 31, 2009 516.94 477.44 40.75 69,824 64,489 135,070,907

March 31, 2010 (b) 558.81 506.62 45.55 75,407 68,363 134,944,484 June 30, 2010 558.56 483.32 45.63 75,470 65,304 135,116,300

(a) At June 30, 2010, pro forma book value per share is computed as follows:

$75,470 + $5,880 - $41,605 - $7,543 Total AIG Shareholders' equity + Proceeds from the settlement of equity units - Series E preferred (including cumulative dividends on Series D preferred) - Series F draw down =$ 45.63 Total common shares outstanding + common shares issuable in settlement of equity units + common shares issued upon assumed conversion of Series C Preferred Stock 135,116,300 + 7,736,904 + 562,868,096

(b) Amounts at March 31, 2010 have been revised to reflect the Fuji bargain purchase gain. See Note (4) on Page 17 for further information.

11 American International Group, Inc. General Insurance Operating Statistics (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 % Chg

Gross premiums written $ 9,553 $ 10,041 (4.9) % $ 11,508 (17.0) % $ 21,061 $ 21,366 (1.4) % Ceded premiums written 1,761 2,122 (17.0) 3,864 (54.4) 5,625 5,714 (1.6) Net premiums written 7,792 7,919 (1.6) 7,644 1.9 15,436 15,652 (1.4) Net premiums earned 7,733 8,017 (3.5) 7,641 1.2 15,374 16,295 (5.7) Paid losses 5,634 5,951 (5.3) 3,741 50.6 9,375 11,835 (20.8) Change in net loss reserves (604) 659 NM 1,207 NM 603 328 83.8 Less foreign exchange effect (545) 972 NM (511) NM (1,056) 736 NM Claims and claims adjustment expenses incurred (1) (2) 5,575 5,638 (1.1) 5,459 2.1 11,034 11,427 (3.4) Change in deferred acquisition costs (104) 15 NM (18) NM (122) 20 NM Other underwriting expenses 2,420 2,219 9.1 2,392 1.2 4,812 4,426 8.7 Underwriting profit (loss) (158) 145 NM (192) NM (350) 422 NM Net investment income Interest and dividends 850 851 (0.1) 845 0.6 1,695 1,792 (5.4) Partnership income 220 (100) NM 147 49.7 367 (498) NM Mutual funds (25) 118 NM (1) NM (26) 84 NM Other investment income (3) 142 56 153.6 108 31.5 250 94 166.0 Investment expense (74) (56) 32.1 (28) 164.3 (102) (168) (39.3) Total 1,113 869 28.1 1,071 3.9 2,184 1,304 67.5 Operating income before net realized capital gains (losses) and bargain purchase gain 955 1,014 (5.8) 879 8.6 1,834 1,726 6.3 Net realized capital gains (losses) 58 (37) NM 137 (57.7) 195 (645) NM Bargain purchase gain (4) - - NM 406 NM 406 - NM Pre-tax income (loss) $ 1,013 $ 977 3.7 % $ 1,422 (28.8) % $ 2,435 $ 1,081 125.3 %

Net loss and loss expense reserve (at period end) $ 64,294 (1.0) % $ 63,622 $ 60,315 5.5 %

Underwriting ratios: Loss ratio (2) 72.1 70.3 71.4 71.8 70.1 Expense ratio 29.9 27.9 31.1 30.5 27.3 Combined ratio 102.0 98.2 102.5 102.3 97.4 Combined ratio excluding significant current year catastrophe-related losses 98.3 98.2 96.2 97.3 97.4

Foreign exchange effect on worldwide growth: Net premiums written Growth in original currency (5) (3.0) % (3.5)% Foreign exchange effect 1.4 2.1 Growth as reported in U.S. $ (1.6) % (1.4)%

(See Accompanying Notes on Page 17)

12 American International Group, Inc. AIG Commercial Insurance Operating Statistics (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 % Chg

Net premiums written $ 4,738 $ 4,968 (4.6) % $ 3,787 25.1 % $ 8,525 $ 9,152 (6.9) %

Net premiums earned 4,580 4,948 (7.4) 4,562 0.4 9,142 10,175 (10.2)

Claims and claims adjustment expenses incurred (1) 3,763 3,950 (4.7) 3,474 8.3 7,237 8,044 (10.0)

Change in deferred acquisition costs (64) (3) NM 129 NM 65 127 (48.8)

Other underwriting expenses 1,179 992 18.9 1,070 10.2 2,249 2,016 11.6

Underwriting profit (loss) (298) 9 NM (111) NM (409) (12) NM

Net investment income

Interest and dividends 656 672 (2.4) 654 0.3 1,310 1,343 (2.5) Partnership income 199 (56) NM 142 40.1 341 (377) NM Mutual funds (31) 27 NM 1 NM (30) 15 NM Other investment income (3) 123 41 200.0 62 98.4 185 81 128.4 Investment expense (57) (39) 46.2 (15) 280.0 (72) (117) (38.5)

Total 890 645 38.0 844 5.5 1,734 945 83.5

Operating income before net realized capital gains (losses) 592 654 (9.5) 733 (19.2) 1,325 933 42.0

Net realized capital gains (losses) (61) (82) NM (3) NM (64) (585) NM

Pre-tax income (loss) $ 531 $ 572 (7.2)% $ 730 (27.3)% $ 1,261 $ 348 262.4 %

Underwriting ratios: Loss ratio 82.2 79.8 76.2 79.2 79.1 Expense ratio 24.3 20.0 26.3 25.3 21.1 Combined ratio 106.5 99.8 102.5 104.5 100.2 Combined ratio excluding significant current year catastrophe-related losses 101.6 99.8 98.6 100.1 100.2

(See Accompanying Notes on Page 17)

13 American International Group, Inc. AIG Commercial Insurance Six Months Ended June 30, 2010

Gross Premiums Written by Line of Business

Multinational P&C 5.9% Aviation 1.7% A&H Products 6.4% Programs Management / 5.4% Environmental Professional 2.5% Liability 8.8% All Other * Commercial 13.0% Umbrella / Excess 8.1%

Workers’ Compensation 12.0%

Property 20.8% General Liability / Auto Liability 15.4%

Gross Premiums Written $10.7 billion

* All Other includes $609 million (5.7%) from the Private Client Group

14 American International Group, Inc. Foreign General Insurance Operating Statistics (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 % Chg

Net premiums written $ 3,054 $ 2,951 3.5 % $ 3,857 (20.8) % $ 6,911 $ 6,500 6.3 % Net premiums earned 3,153 3,069 2.7 3,079 2.4 6,232 6,120 1.8 Claims and claims adjustment expenses incurred (1) (2) 1,812 1,688 7.3 1,985 (8.7) 3,797 3,383 12.2 Change in deferred acquisition costs (40) 18 NM (147) NM (187) (107) NM Other underwriting expenses 1,241 1,227 1.1 1,322 (6.1) 2,563 2,410 6.3 Underwriting profit (loss) 140 136 2.9 (81) NM 59 434 (86.4) Net investment income Interest and dividends 194 179 8.4 191 1.6 385 449 (14.3) Partnership income 21 (44) NM 5 320.0 26 (121) NM Mutual funds 6 91 (93.4) (2) NM 4 69 (94.2) Other investment income (3) 19 15 26.7 46 (58.7) 65 13 400.0 Investment expense (17) (17) - (13) 30.8 (30) (51) (41.2) Total 223 224 (0.4) 227 (1.8) 450 359 25.3 Operating (loss) income before net realized capital gains (losses) and bargain purchase gain 363 360 0.8 146 148.6 509 793 (35.8) Net realized capital gains (losses) 119 45 164.4 140 (15.0) 259 (60) NM Bargain purchase gain (4) - - NM 406 NM 406 - NM Pre-tax income (loss) (6) $ 482 $ 405 19.0 % $ 692 (30.3) % $ 1,174 $ 733 60.2 %

Underwriting ratios: Loss ratio (2) 57.5 55.0 64.5 60.9 55.3 Expense ratio 38.1 40.6 38.2 38.1 37.6 Combined ratio 95.6 95.6 102.7 99.0 92.9 Combined ratio excluding significant current year catastrophe-related losses 93.5 95.6 92.8 93.2 92.9

Foreign exchange effect on Foreign General's growth: Net premiums written Growth in original currency (5) (0.3) % 1.3 % Foreign exchange effect 3.8 5.0 Growth as reported in U.S. $ 3.5 % 6.3 %

(See Accompanying Notes on Page 17)

15 American International Group, Inc. Foreign General Insurance Gross Premiums Written Six Months Ended June 30, 2010

Gross Premiums Written by Line of Business Gross Premiums Written by Region

Africa / Middle Other / Service East / Business Mediterranean / Personal Lines 1.6% Aviation South Asia 11.8% 2.8% 4.2% Marine and U.K. / Ireland Asia / Energy 35.1% Accident & Australasia 22.5% Health 8.6% 19.3%

Property Americas Lloyd's Europe 7.1% 5.8% 5.1% 27.1%

Casualty Specialty Lines 13.3% Far East 16.5% 19.2%

Gross Premiums Written $10.5 billion

American International Group, Inc. General Insurance Notes

(1) Includes significant current year catastrophe-related losses and net reinstatement premiums as follows:

Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, (in millions) 2010 2009 2010 2010 2009 AIG Commercial Insurance $ 223 $ - $ 177 $ 400 $ - Foreign General Insurance 64 304 368 - Total $ 287 $ - $ 481 $ 768 $ -

(2) Total General Insurance and Foreign General Insurance include changes in future policy benefits for certain accident and health insurance contracts. (3) Other investment income is comprised principally of real estate income, changes in market value associated with trading portfolios and income (loss) from equity method investments. (4) On March 31, 2010, AIG through a Chartis International subsidiary, purchased additional voting shares of Fuji for $145 million. The acquisition resulted in a bargain purchase gain of approximately $406 million. Since the sale closed on March 31, 2010 and final appraisals of Fuji’s insurance contracts, loans, certain real estate and intangible assets were not complete, no gain was recognized during the first quarter of March 31, 2010. During the quarter ended June 30, 2010, AIG substantially completed the accounting for the acquisition and retrospectively adjusted the provisional amounts initially recorded. Consequently, AIG revised the results of operations for the three months ended March 31, 2010 and recognized a bargain purchase gain for the six months ended June 30, 2010 and three months ended March 31, 2010 and excluded that gain from the three months ended June 30, 2010. (5) Computed using a constant exchange rate for each period. (6) Income statement accounts expressed in non-functional currencies are translated into U.S. dollars using average exchange rates.

17 American International Group, Inc. Domestic Life Insurance & Retirement Services Operating Statistics (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Premiums, deposits and other considerations (1) $ 4,968 $ 4,018 23.6 % $ 4,737 4.9 % $ 9,705 $ 9,082 6.9 % Revenues: Premiums and other considerations $ 658 $ 655 0.5 % $ 667 (1.3) % $ 1,325 $ 1,435 (7.7) % Fee Income 657 676 (2.8) 648 1.4 1,305 1,336 (2.3) Net investment income: Interest and dividends 2,408 2,168 11.1 2,476 (2.7) 4,884 4,461 9.5 Partnership income (loss) 213 56 280.4 235 (9.4) 448 (317) NM Other 44 26 69.2 38 15.8 82 69 18.8 Investment expenses (37) (29) NM (42) NM (79) (62) NM Total net investment income 2,628 2,221 18.3 2,707 (2.9) 5,335 4,151 28.5 Total revenues excluding net realized capital gains (losses) 3,943 3,552 11.0 4,022 (2.0) 7,965 6,922 15.1 Benefits and expenses: Policyholder benefits and claims incurred 2,297 2,194 4.7 2,203 4.3 4,500 4,840 (7.0) Policy acquisition and other insurance expenses 788 882 (10.7) 700 12.6 1,488 2,115 (29.6) Total benefits and expenses 3,085 3,076 0.3 2,903 6.3 5,988 6,955 (13.9) Operating income (loss) excluding net realized capital gains (losses), goodwill impairment and related amortization of acquisition costs VOBA and sales inducements 858 476 80.3 1,119 (23.3) 1,977 (33) NM Amortization (benefit) of deferred acquisition costs, VOBA and sales inducements related to net realized capital gains (losses) (196) 213 NM (4) NM (200) (136) NM Operating income before net realized capital gains (losses) and goodwill impairment 1,054 263 300.8 1,123 (6.1) 2,177 103 NM Net realized capital losses (966) (54) NM (796) NM (1,762) (1,721) NM Goodwill impairment - (9) NM - NM - (9) NM Pre-tax income (loss) $ 88 $ 200 (56.0) % $ 327 (73.1) % $ 415 $ (1,627) NM %

Assets under management: Cash and investments $ 169,383 2.7 % $ 173,879 $ 155,793 11.6 % Separate account reserves 51,948 (9.7) 46,904 44,298 5.9 Group retirement mutual funds 8,249 (8.9) 7,511 7,090 5.9 Retail mutual funds 5,951 (7.2) 5,521 5,613 (1.6) Total assets under management $ 235,531 (0.7) % $ 233,815 $ 212,794 9.9 %

(1) Divested operations included in all lines except Premiums, deposits and other considerations.

18 American International Group, Inc. Domestic Life Insurance Operating Statistics (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Premiums, deposits and other considerations (1) (2) $ 1,316 $ 1,382 (4.8) % $ 1,323 (0.5)% $ 2,639 $ 2,852 (7.5)% Revenues: Premiums and other considerations $ 658 $ 655 0.5 % $ 667 (1.3)% $ 1,325 $ 1,344 (1.4)% Fee income 370 404 (8.4) 373 (0.8) 743 806 (7.8) Net investment income NM Interest and dividends (3) 1,012 950 6.5 1,005 0.7 2,017 1,853 8.9 Partnership income (loss) 29 (18) NM 20 45.0 49 (139) NM Other 29 19 52.6 28 3.6 57 60 (5.0) Investment expenses (20) (16) NM (19) NM (39) (34) NM Total net investment income 1,050 935 12.3 1,034 1.5 2,084 1,740 19.8 Total revenues excluding net realized capital gains (losses) 2,078 1,994 4.2 2,074 0.2 4,152 3,890 6.7 Benefits and expenses: Policyholder benefits and claims incurred 1,305 1,203 8.5 1,320 (1.1) 2,625 2,498 5.1 Policy acquisition and other insurance expenses 393 441 (10.9) 389 1.0 782 896 (12.7) Total benefits and expenses 1,698 1,644 3.3 1,709 (0.6) 3,407 3,394 0.4 Operating income excluding net realized capital gains (losses) and related amortization of acquisition costs, VOBA and sales inducements and divested operations 380 350 8.6 365 4.1 745 496 50.2 Amortization (benefit) of deferred acquisition costs, VOBA and sales inducements related to net realized capital gains (losses) (4) 2 NM (2) NM (6) (23) NM Operating income before net realized capital gains (losses) and divested operations 384 348 10.3 367 4.6 751 519 44.7 Net realized capital gains (losses) (100) (78) NM (140) NM (240) (538) NM Divested operations - - NM - NM - (9) NM Pre-tax income (loss) $ 284 $ 270 5.2 % $ 227 25.1 % $ 511 $ (28) NM%

Assets under management (2): Cash and investments $ 61,799 2.8 % $ 63,553 $ 55,645 14.2 % Separate account reserves 5,309 (3.5) 5,125 5,225 (1.9) Total assets under management $ 67,108 2.3 % $ 68,678 $ 60,870 12.8 %

(See Accompanying Notes on Page 23)

19 American International Group, Inc. Domestic Life Insurance Sales and Deposits (2) (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Life insurance Periodic premium by product: Universal life $ 8 $ 16 (50.0)% $ 9 (11.1)% $ 17 $ 30 (43.3)% Variable universal life 19 1 NM - NM 19 8 137.5 Term life 22 18 22.2 16 37.5 38 41 (7.3) Whole life/other - 1 NM 1 NM 1 1 - Total periodic premiums by product 49 36 36.1 26 88.5 75 80 (6.3)

Group life/health 15 11 36.4 22 (31.8) 37 45 (17.8) Unscheduled and single deposits 52 17 205.9 15 246.7 67 50 34.0 Total life insurance (4) 116 64 81.3 63 84.1 179 175 2.3

Career distribution (AGLA) By product: Periodic life insurance premiums 24 19 26.3 19 26.3 43 35 22.9 Unscheduled and single deposits 7 5 40.0 5 40.0 12 9 33.3 Accident and health insurance 1 2 (50.0) 2 (50.0) 3 3 - Fixed annuities 18 41 (56.1) 17 5.9 35 97 (63.9) Total career distribution (AGLA) (4) 50 67 (25.4) 43 16.3 93 144 (35.4)

Payout annuities (4) (5) 186 125 48.8 217 (14.3) 403 267 50.9 Individual fixed and runoff annuities (4) 143 199 (28.1) 161 (11.2) 304 394 (22.8) Total sales and deposits $ 495 $ 455 8.8 % $ 484 2.3 % $ 979 $ 980 (0.1)%

(See Accompanying Notes on Page 23)

20 American International Group, Inc. Domestic Life Insurance Other Data (2) (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.)

Premiums, deposits and other considerations (1) (2): Life insurance $ 776 $ 818 (5.1) % $ 732 6.0 % $ 1,508 $ 1,671 (9.8)% Career distribution (AGLA) 211 240 (12.1) 213 (0.9) 424 520 (18.5) Payout annuities 186 125 48.8 217 (14.3) 403 267 50.9 Individual fixed and runoff Annuities 143 199 (28.1) 161 (11.2) 304 394 (22.8) Total premiums, deposits and other considerations 1,316 1,382 (4.8) 1,323 (0.5) 2,639 2,852 (7.5)

Insurance reserves: Life insurance 24,551 - 24,560 24,193 1.5 Career distribution (AGLA) 7,557 0.1 7,563 7,533 0.4 Payout annuities 17,444 0.4 17,510 17,180 1.9 Individual fixed and runoff annuities 7,442 (1.2) 7,355 7,156 2.8 Total insurance reserves 56,994 (0.0) 56,988 56,062 1.7

Insurance reserves: General account 51,685 0.3 51,863 50,837 2.0 Separate accounts 5,309 (3.5) 5,125 5,225 (1.9) Total insurance reserves 56,994 (0.0) 56,988 56,062 1.7

Gross life insurance in force (at period end): Life insurance 847,679 (0.3) 844,817 889,068 (5.0) Career distribution (AGLA) 67,346 1.3 68,250 66,013 3.4 Gross life insurance in force (at period end) 915,025 (0.2) 913,067 955,081 (4.4)

Components of Net Investment Income: Base investment income 916 905 1.2 912 0.4 1,828 1,850 (1.2) Partnership income (loss) 29 (18) NM 20 45.0 49 (139) NM Other enhancements 105 48 118.8 102 2.9 207 29 NM Total net investment income $ 1,050 $ 935 12.3 % $ 1,034 1.5 % $ 2,084 $ 1,740 19.8 %

(See Accompanying Notes on Page 23)

21 American International Group, Inc. Domestic Life Insurance Deferred Policy Acquisition Costs, Sales Inducements and Value of Business Acquired (dollars in millions) Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Life insurance Balance at beginning of period $ 4,049 $ 4,976 (18.6) % $ 4,145 (2.3) % $ 4,145 $ 5,047 (17.9) % Acquisition costs deferred 63 82 (23.2) 62 1.6 125 173 (27.7) Amortization (charged) or credited to operating income: Related to net realized capital gains (losses) 1 (2) NM (1) NM - 18 NM Related to unlocking future assumptions - 3 NM - NM - 3 NM All other amortization (110) (120) NM (102) NM (212) (246) NM Change in unrealized gains (losses) on securities (6) (59) 53 NM (55) NM (114) 9 NM Other (7) (1) (127) NM - NM (1) (127) NM Divested operations - (469) NM - NM - (481) NM Balance at end of period 3,943 4,396 (10.3) 4,049 (2.6) 3,943 4,396 (10.3) Career distribution (AGLA) Balance at beginning of period 1,376 1,727 (20.3) 1,420 (3.1) 1,420 1,694 (16.2) Acquisition costs deferred 38 38 - 35 8.6 73 74 (1.4) Amortization (charged) or credited to operating income: Related to net realized capital gains (losses) - - NM - NM - 8 NM All other amortization (38) (46) NM (45) NM (83) (94) NM Change in unrealized gains (losses) on securities (6) (109) (50) NM (34) NM (143) (13) NM Other (7) - (67) NM - NM - (67) NM Balance at end of period 1,267 1,602 (20.9) 1,376 (7.9) 1,267 1,602 (20.9) Payout annuities Balance at beginning of period 84 85 (1.2) 84 - 84 86 (2.3) Acquisition costs deferred 1 2 (50.0) 2 (50.0) 3 3 - Amortization (charged) or credited to operating income: All other amortization (1) (1) NM (2) NM (3) (3) NM Balance at end of period 84 86 (2.3) 84 - 84 86 (2.3) Individual fixed and runoff annuities Balance at beginning of period 384 468 (17.9) 429 (10.5) 429 475 (9.7) Acquisition costs deferred 11 13 (15.4) 14 (21.4) 25 27 (7.4) Amortization (charged) or credited to operating income: Related to net realized capital gains (losses) 3 - NM 3 - 6 (3) NM Related to unlocking future assumptions - - NM - NM - (2) NM All other amortization (13) (14) NM (11) NM (24) (29) NM Change in unrealized gains (losses) on securities (6) (66) 78 NM (51) NM (117) 79 NM Other (7) (1) (91) NM - NM (1) (93) NM Divested operations - (10) NM - NM - (10) NM Balance at end of period 318 444 (28.4) 384 (17.2) 318 444 (28.4) Total Balance at beginning of period 5,893 7,256 (18.8) 6,078 (3.0) 6,078 7,302 (16.8) Acquisition costs deferred 113 135 (16.3) 113 - 226 277 (18.4) Amortization (charged) or credited to operating income: Related to net realized capital gains (losses) 4 (2) NM 2 100.0 6 23 (73.9) Related to unlocking future assumptions - 3 NM - NM - 1 NM All other amortization (162) (181) NM (160) NM (322) (372) NM Change in unrealized gains (losses) on securities (6) (234) 81 NM (140) NM (374) 75 NM Other (7) (2) (285) NM - NM (2) (287) NM Divested operations - (479) NM - NM - (491) NM Balance at end of period $ 5,612 $ 6,528 (14.0) % $ 5,893 (4.8) % $ 5,612 $ 6,528 (14.0) % (See Accompanying Notes on Page 23)

American International Group, Inc. Domestic Life Insurance Notes

(1) Premiums, deposits and other considerations represent aggregate business activity presented on a non-GAAP basis. (2) Data presented excludes divested operations. (3) Interest and dividends include gains (losses) related to AIG’s economic retained interest in Maiden Lane II as follows:

Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, (in millions) 2010 2009 2010 2010 2009 Maiden Lane II: Fair value gain (loss) $ 36 $ (36) $ 48 $ 84 $ (118) Capitalized interest 2 2 3 5 7

Total ML II income (loss) included in interest and dividends $ 38 $ (34) $ 51 $ 89 $ (111)

(4) Life insurance sales include periodic premium from new business expected to be collected over a one-year period and 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 policyholders. (5) Includes structured settlements, single premium immediate annuities and terminal funding annuities. (6) The three months and six month periods ended June 30, 2009 include $127 million, $62 million and $92 million increases in life insurance, career distribution (AGLA), individual fixed and runoff annuities, respectively, related to the recognition of other-than-temporary impairments. (7) The three months and six months ended June 30, 2009 consist of the recognition of other-than-temporary impairments. The other-than-temporary impairments decreased life insurance, career distribution (AGLA) and individual fixed and runoff annuities by $(127) million, $(62) million and $(92) million, respectively.

23 American International Group, Inc. Domestic Retirement Services Operating Statistics (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.)

Premiums, deposits and other considerations $ 3,652 $ 2,636 38.5 % $ 3,414 7.0 % $ 7,066 $ 6,230 13.4 % Fee and other income $ 287 $ 272 5.5 % $ 275 4.4 % $ 562 $ 530 6.0 % Investment spread Net investment income Interest and dividends (1) 1,396 1,217 14.7 1,471 (5.1) 2,867 2,574 11.4 Partnership income (loss) 184 74 148.6 215 (14.4) 399 (178) NM Other 15 8 87.5 10 50.0 25 22 13.6 Investment expenses (17) (13) NM (23) NM (40) (27) NM Total net investment income 1,578 1,286 22.7 1,673 (5.7) 3,251 2,391 36.0 Interest credited 918 977 (6.0) 899 2.1 1,817 2,003 (9.3) Net investment spread 660 309 113.6 774 (14.7) 1,434 388 269.6 Benefits and Expenses Policyholder benefits and claims incurred (2) (3) 74 14 428.6 (16) NM 58 260 (77.7) Policy acquisition and other insurance expenses (2) 395 441 (10.4) 311 27.0 706 1,199 (41.1) Total benefits and expenses 469 455 3.1 295 59.0 764 1,459 (47.6) Operating income (loss) excluding net realized capital gain (losses) and goodwill impairment, related amortization of acquisition costs, VOBA and sales inducements 478 126 279.4 754 (36.6) 1,232 (541) NM Amortization (benefit) of deferred acquisition costs, VOBA and sales inducements related to net realized capital gains (losses) (192) 211 NM (2) NM (194) (113) NM Operating income (loss) before net realized capital gains (losses) and goodwill impairment 670 (85) NM 756 (11.4) 1,426 (428) NM Net realized capital gains (losses) (866) 24 NM (656) NM (1,522) (1,162) NM Goodwill impairment - (9) NM - NM - (9) NM Pre-tax income (loss) $ (196) $ (70) NM% $ 100 NM % $ (96) $ (1,599) NM %

Assets under management: Cash and investments $ 107,584 2.5 % $ 110,326 $ 100,148 10.2 % Separate account reserves 46,639 (10.4) 41,779 39,073 6.9 Group retirement mutual funds 8,249 (8.9) 7,511 7,090 5.9 Retail mutual funds 5,951 (7.2) 5,521 5,613 (1.6) Total assets under management $ 168,423 (2.0) % $ 165,137 $ 151,924 8.7 %

(See Accompanying Notes on Page 33)

24 American International Group, Inc. Domestic Retirement Services Product Statistics (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Premiums, deposits and other considerations Group retirement products (VALIC) $ 1,602 $ 1,423 12.6 % $ 1,608 (0.4) % $ 3,210 $ 3,052 5.2 % Individual fixed annuities 1,277 812 57.3 1,153 10.8 2,430 2,286 6.3 Individual variable annuities 496 202 145.5 357 38.9 853 464 83.8 Individual annuities - runoff 22 11 100.0 20 10.0 42 22 90.9 Brokerage services and retail mutual funds 255 188 35.6 276 (7.6) 531 406 30.8 Total premiums, deposits and other considerations 3,652 2,636 38.5 3,414 7.0 7,066 6,230 13.4

Fee and other income: Group retirement products (VALIC) 96 82 17.1 95 1.1 191 154 24.0 Individual fixed annuities 8 27 (70.4) 8 - 16 59 (72.9) Individual variable annuities 124 111 11.7 124 - 248 216 14.8 Individual annuities - runoff 5 3 66.7 2 150.0 7 7 - Brokerage services and retail mutual funds 54 49 10.2 46 17.4 100 94 6.4 Total fee and other income 287 272 5.5 275 4.4 562 530 6.0

Net investment income: Group retirement products (VALIC) 531 459 15.7 566 (6.2) 1,097 831 32.0 Individual fixed annuities 699 642 8.9 781 (10.5) 1,480 1,205 22.8 Individual variable annuities 27 36 (25.0) 33 (18.2) 60 61 (1.6) Individual annuities - runoff 67 53 26.4 63 6.3 130 120 8.3 GICs and other asset management 254 95 167.4 229 10.9 483 173 179.2 Brokerage services and retail mutual funds - 1 NM 1 NM 1 1 - Total net investment income $ 1,578 $ 1,286 22.7 % $ 1,673 (5.7) % $ 3,251 $ 2,391 36.0 %

25 American International Group, Inc. Domestic Retirement Services Account Value Rollforward Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Group retirement products (VALIC) (4) Balance at beginning of period $ 64,869 $ 54,864 18.2 % $ 63,419 2.3 % $ 63,419 $ 56,861 11.5 % Deposits - annuities (5) 1,273 1,111 14.6 1,254 1.5 2,527 2,339 8.0 Deposits - mutual funds (5) 329 312 5.4 354 (7.1) 683 713 (4.2) Deposits - subtotal 1,602 1,423 12.6 1,608 (0.4) 3,210 3,052 5.2 Surrenders and other withdrawals (1,740) (1,679) NM (1,676) NM (3,416) (3,348) NM Death benefits (78) (61) NM (73) NM (151) (129) NM Net flows (216) (317) NM (141) NM (357) (425) NM Change in fair value of underlying investments, interest credited, net of fees (2,437) 3,834 NM 1,591 NM (846) 1,945 NM Balance at end of period 62,216 58,381 6.6 64,869 (4.1) 62,216 58,381 6.6 Individual fixed annuities Balance at beginning of period 47,547 47,530 - 47,202 0.7 47,202 48,394 (2.5) Deposits (5) 1,277 812 57.3 1,153 10.8 2,430 2,286 6.3 Surrenders and other withdrawals (892) (2,189) NM (905) NM (1,797) (4,558) NM Death benefits (392) (500) NM (370) NM (762) (933) NM Net flows (7) (1,877) NM (122) NM (129) (3,205) NM Change in fair value of underlying investments, interest credited, net of fees 458 471 (2.8) 467 (1.9) 925 935 (1.1) Balance at end of period 47,998 46,124 4.1 47,547 0.9 47,998 46,124 4.1 Individual variable annuities Balance at beginning of period 24,866 21,497 15.7 24,637 0.9 24,637 23,593 4.4 Deposits 496 202 145.5 357 38.9 853 464 83.8 Surrenders and other withdrawals (687) (621) NM (674) NM (1,361) (1,353) NM Death benefits (106) (103) NM (120) NM (226) (213) NM Net flows (297) (522) NM (437) NM (734) (1,102) NM Change in fair value of underlying investments, interest credited, net of fees (1,251) 1,626 NM 666 NM (585) 110 NM Balance at end of period 23,318 22,601 3.2 24,866 (6.2) 23,318 22,601 3.2 Total Balance at beginning of period, excluding runoff and GICs 137,282 123,891 10.8 135,258 1.5 135,258 128,848 5.0 Deposits 3,375 2,437 38.5 3,118 8.2 6,493 5,802 11.9 Surrenders and other withdrawals (3,319) (4,489) NM (3,255) NM (6,574) (9,259) NM Benefit and death payments (576) (664) NM (563) NM (1,139) (1,275) NM Net flows (520) (2,716) NM (700) NM (1,220) (4,732) NM Change in fair value of underlying investments, interest credited, net of fees (3,230) 5,931 NM 2,724 NM (506) 2,990 NM Balance at end of period, excluding runoff and GICs 133,532 127,106 5.1 137,282 (2.7) 133,532 127,106 5.1 Individual annuities runoff 4,526 4,773 (5.2) 4,579 (1.2) 4,526 4,773 (5.2) GICs 8,361 10,656 8,427 8,361 10,656 Balance at end of period $ 146,419 $ 142,535 2.7 % $ 150,288 (2.6)% $ 146,419 142,535 2.7 General and separate account reserves General account reserves $ 95,400 1.8 % $ 97,129 $ 96,372 0.8 % Separate account reserves 46,639 (10.4) 41,779 39,073 6.9 Total general and separate account reserves 142,039 (2.2) 138,908 135,445 2.6 Group retirement mutual funds 8,249 (8.9) 7,511 7,090 5.9 Total reserves and mutual funds 150,288 (2.6) 146,419 142,535 2.7 Surrender rates Group retirement products (VALIC) 10.8 % 11.7 % 10.6 % 10.7 % 12.0 % Individual fixed annuities 7.5 % 18.8 % 7.7 % 7.6 % 19.3 % Individual variable annuities 11.6 % 11.7 % 11.2 % 11.4 % 13.1 % (See Accompanying Notes on Page 33)

26 American International Group, Inc. Domestic Retirement Services Spread Information (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Spread information

Group retirement products (VALIC) Base investment income (a) $ 456 $ 440 3.6 % $ 477 (4.4)% $ 933 $ 933 - % Partnerships (b) 31 18 72.2 48 (35.4) 79 (69) NM Other enhancements (c) 44 1 NM 41 7.3 85 (33) NM Total net investment income $ 531 $ 459 15.7 % $ 566 (6.2)% $ 1,097 $ 831 32.0 %

Base yield (a) 5.18 % 5.54 % 5.46 % 5.32 % 5.96 % Partnerships (b) 0.13 % (0.04)% 0.31 % 0.22 % (0.71)% Other enhancements (c) 0.50 % 0.01 % 0.47 % 0.48 % (0.21)% Total 5.81 % 5.51 % 6.24 % 6.02 % 5.04 % Cost of funds (d) 3.83 % 3.95 % 3.82 % 3.82 % 3.94 % Net spread rate, as reported (d) 1.98 % 1.56 % 2.42 % 2.20 % 1.10 % Net spread rate excluding partnerships and other enhancements 1.35 % 1.59 % (15.1)% 1.64 % (17.7)% 1.50 % 2.02 % (25.7)%

Individual fixed annuities Base investment income (a) $ 584 $ 617 (5.3)% $ 619 (5.7)% $ 1,203 $ 1,322 (9.0)% Partnerships (b) 35 51 (31.4) 71 (50.7) 106 (10) NM Other enhancements (c) 80 (26) NM 91 (12.1) 171 (107) NM Total net investment income $ 699 $ 642 8.9 % $ 781 (10.5)% $ 1,480 $ 1,205 22.8 %

Base yield (a) 4.79 % 5.53 % 5.10 % 4.95 % 5.84 % Partnerships (b) 0.04 % 0.16 % 0.30 % 0.17 % (0.33)% Other enhancements (c) 0.66 % (0.24)% 0.76 % 0.71 % (0.47)% Total 5.49 % 5.45 % 6.16 % 5.83 % 5.04 % Cost of funds (d) 3.64 % 3.76 % 3.65 % 3.65 % 3.73 % Net spread rate, as reported (d) 1.85 % 1.69 % 2.51 % 2.18 % 1.31 % Net spread rate excluding partnerships and other enhancements 1.15 % 1.77 % (35.0)% 1.45 % (20.7)% 1.30 % 2.11 % (38.4)%

(See Accompanying Notes on Pages 28)

27 American International Group, Inc. Domestic Retirement Services Spread Information (continued) (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Spread information

Individual variable annuities Base investment income (a) $ 22 $ 24 (8.3)% $ 22 - % $ 44 $ 52 (15.4)% Partnerships (b) 4 12 (66.7) 9 (55.6) 13 12 8.3 Other enhancements (c) 1 - NM 2 (50.0) 3 (3) NM Total net investment income $ 27 $ 36 (25.0)% $ 33 (18.2)% $ 60 $ 61 (1.6)%

Base yield (a) 4.99 % 4.70 % 5.05 % 5.02 % 4.62 % Partnerships (b) 0.34 % 2.02 % 1.30 % 0.81 % 0.79 % Other enhancements (c) 0.33 % (0.11)% 0.45 % 0.40 % (0.26)% Total 5.66 % 6.61 % 6.80 % 6.23 % 5.15 % Cost of funds (d) 3.03 % 3.18 % 3.03 % 3.03 % 3.13 % Net spread rate, as reported (d) 2.63 % 3.43 % 3.77 % 3.20 % 2.02 % Net spread rate excluding partnerships and other enhancements 1.96 % 1.52 % 28.9 % 2.02 % (3.0)% 1.99 % 1.49 % 33.6 %

(a) Includes the investment return on surplus other than partnership or yield enhancements activities. (b) Includes incremental effect to base yield of investments in hedge funds and private equity funds. (c) Includes incremental effect to base yield of gains on calls, prepayment fees and trading gains (losses). (d) Excludes the amortization of sales inducement assets.

28 American International Group, Inc. Domestic Retirement Services Deferred Policy Acquisition Costs, Sales Inducements and Value of Business Acquired (dollars in millions) Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Group retirement products (VALIC) Balance at beginning of period $ 2,237 $ 2,567 (12.9) % $ 2,325 (3.8) % $ 2,325 $ 2,536 (8.3) % Acquisition costs deferred 51 41 24.4 44 15.9 95 84 13.1 Amortization (charged) or credited to operating income: Related to net realized capital gains (losses) 36 (3) NM 18 100.0 54 149 (63.8) Related to unlocking future assumptions - - NM - NM - (58) NM All other amortization (51) (47) NM (23) NM (74) (62) NM Change in unrealized gains (losses) on securities (6) (135) 275 NM (127) NM (262) 185 NM Increase (decrease) due to foreign exchange (1) 1 NM (1) NM (2) - NM Other (7) - (342) NM 1 NM 1 (342) NM Balance at end of period 2,137 2,492 (14.2) 2,237 (4.5) 2,137 2,492 (14.2) Individual fixed annuities Balance at beginning of period 2,650 4,213 (37.1) 2,882 (8.0) 2,882 4,671 (38.3) Acquisition costs deferred 92 72 27.8 88 4.5 180 181 (0.6) Amortization (charged) or credited to operating income: Related to net realized capital gains (losses) 36 7 414.3 13 176.9 49 150 (67.3) Related to unlocking future assumptions - (43) NM - NM - (43) NM All other amortization (101) (174) NM (103) NM (204) (379) NM Change in unrealized gains (losses) on securities (6) (269) 327 NM (230) NM (499) (178) NM Other (7) - (954) NM - NM - (954) NM Balance at end of period 2,408 3,448 (30.2) 2,650 (9.1) 2,408 3,448 (30.2) Individual variable annuities Balance at beginning of period 753 1,019 (26.1) 760 (0.9) 760 1,343 (43.4) Acquisition costs deferred 44 23 91.3 33 33.3 77 49 57.1 Amortization (charged) or credited to operating income: Related to net realized capital gains (losses) 120 (215) NM (29) NM 91 (186) NM Related to unlocking future assumptions - - NM - NM - (354) NM All other amortization (82) (42) NM (11) NM (93) (67) NM Other (7) - (44) NM - NM - (44) NM Balance at end of period 835 741 12.7 753 10.9 835 741 12.7 Individual annuities - runoff Balance at beginning of period 45 70 (35.7) 50 (10.0) 50 76 (34.2) Amortization (charged) or credited to operating income: All other amortization (5) (7) NM (5) NM (10) (13) NM Balance at end of period 40 63 (36.5) 45 (11.1) 40 63 (36.5) Total Balance at beginning of period 5,685 7,869 (27.8) 6,017 (5.5) 6,017 8,626 (30.2) Acquisition costs deferred 187 136 37.5 165 13.3 352 314 12.1 Amortization (charged) or credited to operating income: Related to net realized capital gains (losses) 192 (211) NM 2 NM 194 113 71.7 Related to unlocking future assumptions - (43) NM - NM - (455) NM All other amortization (239) (270) NM (142) NM (381) (521) NM Change in unrealized gains (losses) on securities (6) (404) 602 NM (357) NM (761) 7 NM Increase (decrease) due to foreign exchange (1) 1 NM (1) NM (2) - NM Other (7) - (1,340) NM 1 NM 1 (1,340) NM Balance at end of period $ 5,420 $ 6,744 (19.6) % $ 5,685 (4.7) % $ 5,420 $ 6,744 (19.6) % (See Accompanying Notes on Page 33)

29 American International Group, Inc. Domestic Retirement Services - Group Retirement Products (VALIC) Guaranteed Benefits (dollars in millions)

June 30, 2010 Account Net Amount Retained Value at Risk NAR Guaranteed Minimum Death Benefit ("GMDB") Type (including Earnings Enhancement Benefit) (a): Return of premium (b) $ 3,752 $ - $ - Roll-up (c) 39,565 2,185 2,185 Return of premium (b) (Coinsurance - Japan) - 184 184 43,317 2,369 2,369

Guaranteed Minimum Income Benefit Type: No Roll-up (Coinsurance - Japan) - 17 17

Guaranteed Minimum Withdrawal Benefit ("GMWB") Type (d): Lifetime guarantees (e) 1,456 108 108 Return of premium (b) (Coinsurance - Japan) - 166 166 1,456 274 274

30 American International Group, Inc. Domestic Retirement Services - Individual Variable Annuities Guaranteed Benefits (dollars in millions) June 30, 2010 Account Net Amount Retained Value at Risk NAR Guaranteed Minimum Death Benefit ("GMDB") Type (including Earnings Enhancement Benefit) (a): Return of premium (b) $ 4,013 $ 423 $ 421 Reset (c) 556 31 31 Ratchet (d) 11,167 2,824 2,362 Roll-up (e) 4,534 1,302 1,191 Combination (f) 156 60 60 Return of premium, with earnings enhancement (g) 2 - - Ratchet, with earnings enhancement (h) 1,065 294 125 Roll-up, with earnings enhancement (i) 435 103 32 Combination with earnings enhancement (j) 34 16 15 21,962 5,053 4,237 Guaranteed Minimum Income Benefit ("GMIB") Type (k): Roll-up (e) 343 127 45 No roll-up (l) 3,255 71 32 3,598 198 77 Guaranteed Minimum Account Value ("GMAV") Type (m): Ten year waiting period 1,239 65 65

Guaranteed Minimum Withdrawal Benefit ("GMWB") Type (n): Minimum amount guarantees (o) 615 60 60 Lifetime guarantees (p) 6,939 1,538 1,538 7,554 1,598 1,598

(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).

31 American International Group, Inc. Domestic Retirement Services - Individual Variable Annuities Guaranteed Benefits (continued) (dollars in millions)

June 30, Sept. 30, Dec. 31, March 31, June 30, 2009 2009 2009 2010 2010 Other Data S&P 500 Index value 919 1,057 1,115 1,169 1,031

Total Account Value $ 22,601 $ 24,746 $ 24,637 $ 24,866 $ 23,318

Account value by benefit type: Guaranteed Minimum Death Benefits 21,429 23,634 23,912 24,264 21,962 Guaranteed Minimum Income Benefits 3,813 4,163 4,156 4,125 3,598 Guaranteed Minimum Account Value 1,303 1,434 1,434 1,426 1,239 Guaranteed Minimum Withdrawal Benefits 6,385 7,300 7,602 7,983 7,554

Net amount at risk: Guaranteed Minimum Death Benefits 7,175 4,789 4,084 3,467 5,053 Guaranteed Minimum Income Benefits 340 170 172 122 198 Guaranteed Minimum Account Value 133 55 41 31 65 Guaranteed Minimum Withdrawal Benefits 2,004 1,315 1,145 981 1,598

Retained net amount at risk: Guaranteed Minimum Death Benefits 5,939 3,974 3,396 2,892 4,237 Guaranteed Minimum Income Benefits 131 71 73 53 77 Guaranteed Minimum Account Value 133 55 41 31 65 Guaranteed Minimum Withdrawal Benefits 2,004 1,315 1,145 981 1,598

Liability for guaranteed benefits (GMDB & GMIB) $ 395 459 $ 431 393 $ 451

32 American International Group, Inc. Domestic Retirement Services Notes

(1) Interest and dividends include gains (losses) related to AIG’s economic retained interest in Maiden Lane II as follows:

Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, (in millions) 2010 2009 2010 2010 2009 Maiden Lane II Fair value gain (loss) $ 76 $ (78) $ 103 $ 179 $ (251) Capitalized interest 6 6 5 11 13 Total ML II income (loss) included in interest and dividends $ 82 $ (72) $ 108 $ 190 $ (238)

(2) The three months ended and six months ended June 30, 2009 include DAC/SIA and guaranteed benefits unlockings of $43 million and $601 million, respectively. (3) Policyholder benefits and claims incurred is negative in the three months ended March 31, 2010 and due to reductions in SOP 03-01 reserves resulting from positive equity markets. (4) Includes group retirement annuities and group mutual funds. The balance at the beginning and end of the period for Group Mutual Funds are as follows:

Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, (in millions) 2010 2009 2010 2010 2009 Beginning Balance $ 8,249 $ 5,961 $ 8,075 $ 8,075 $ 6,288 Ending Balance $ 7,511 $ 7,090 $ 8,249 $ 7,511 $ 7,090

(5) 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. (6) The three months and six months ended June 30, 2009 include an increase of $342 million and $954 million for group retirement products and individual fixed annuities, respectively, related to the adoption of a new accounting standard for other-than-temporary impairments. (7) The three months and six months ended June 30, 2009 consist of $(342) million, $(954) million and $(44) million decrease in the group retirement products, individual fixed annuities and individual variable annuities, respectively, related to the adoption of a new accounting standard for other-than- temporary impairments.

33 American International Group, Inc. Foreign Life Insurance & Retirement Services Operating Statistics (dollars in millions) Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Premiums, deposits and other considerations (1) $ 4,563 $ 4,111 11.0 % $ 4,392 3.9 % $ 8,955 $ 8,126 10.2 % Revenues: Premiums and other considerations $ 3,377 $ 3,100 8.9 % $ 3,234 4.4 % $ 6,611 $ 6,222 6.3 % Net investment income: Interest and dividends 1,221 1,089 12.1 1,115 9.5 2,336 2,143 9.0 Partnership income (loss) 2 (21) NM 3 (33.3) 5 (38) NM Mutual funds (8) 85 NM (2) NM (10) 25 NM Trading account gains (losses) 22 - NM 13 69.2 35 3 NM Other 43 21 104.8 43 - 86 30 186.7 Investment expenses (38) (48) NM (35) NM (73) (99) NM Net investment income before policyholder investment income and trading gains (losses) 1,242 1,126 10.3 1,137 9.2 2,379 2,064 15.3 Net investment income related to policyholder investment income and trading gains (losses) (2) (3) 1,302 NM (70) NM (73) 1,247 NM Total net investment income 1,239 2,428 (49.0) 1,067 16.1 2,306 3,306 (30.2) Total revenues excluding net realized capital gains (losses) and policyholder investment income and trading gains (losses) 4,619 4,226 9.3 4,371 5.7 8,990 8,286 8.5 Total revenues excluding net realized capital gains (losses) 4,616 5,528 (16.5) 4,301 7.3 8,917 9,528 (6.4) Benefits and expenses: Policyholder benefits and claims incurred before the effect of policyholder benefits and claims incurred related to policyholder investment income and trading gains (losses) 2,811 2,766 1.6 2,717 3.5 5,528 5,309 4.1 Policyholder benefits and claims incurred related to policyholder investment income and trading gains (losses) (2) (3) 1,302 NM (70) NM (73) 1,247 NM Policyholder benefits and claims incurred 2,808 4,068 (31.0) 2,647 6.1 5,455 6,556 (16.8) Policy acquisition and other insurance expense 988 907 8.9 872 13.3 1,860 1,697 9.6 Total benefits and expenses 3,796 4,975 (23.7) 3,519 7.9 7,315 8,253 (11.4) Operating income excluding net realized capital gains (losses) (3) 820 553 48.3 782 4.9 1,602 1,275 25.6 Net realized capital gains (losses) 20 (330) NM (61) NM (41) (792) NM Pre-tax income (loss) (3) $ 840 $ 223 276.7 % $ 721 16.5 % $ 1,561 $ 483 223.2 %

Gross life insurance in force (at period end) $ 766,263 NM % $ 758,244 $ 702,862 7.9 %

(See Accompanying Notes on Page 37)

34 American International Group, Inc. Asia Operating Statistics (dollars in millions) Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Premiums, deposits and other considerations (1) $ 3,300 $ 2,911 13.4 % $ 3,161 4.4 % $ 6,461 $ 5,664 14.1 % Revenues: Premiums and other considerations $ 2,458 $ 2,231 10.2 % $ 2,370 3.7 % $ 4,828 $ 4,448 8.5 % Net investment income: Interest and dividends 879 759 15.8 786 11.8 1,665 1,468 13.4 Partnership income (loss) 1 (19) NM (2) NM (1) (25) NM Mutual funds (9) 71 NM (6) NM (15) 10 NM Trading account gains (losses) 23 (4) NM 11 109.1 34 2 NM Other 23 (2) NM 28 (17.9) 51 (7) NM Investment expenses (25) (35) NM (21) NM (46) (69) NM Net investment income before policyholder investment income and trading gains (losses) 892 770 15.8 796 12.1 1,688 1,379 22.4 Net investment income related to policyholder investment income and trading gains (losses) (2) - 1,268 NM (75) NM (75) 1,231 NM Total net investment income 892 2,038 (56.2) 721 23.7 1,613 2,610 (38.2) Total revenues excluding net realized capital gains (losses) and policyholder investment income and trading gains (losses) 3,350 3,001 11.6 3,166 5.8 6,516 5,827 11.8 Total revenues excluding net realized capital gains (losses) 3,350 4,269 (21.5) 3,091 8.4 6,441 7,058 (8.7) Benefits and expenses: Policyholder benefits and claims incurred before the effect of policyholder benefits and claims incurred related to policyholder investment income and trading gains (losses) 2,070 2,024 2.3 1,996 3.7 4,066 3,861 5.3 Policyholder benefits and claims incurred related to policyholder investment income and trading gains (losses) (2) - 1,268 NM (75) NM (75) 1,231 NM Policyholder benefits and claims incurred 2,070 3,292 (37.1) 1,921 7.8 3,991 5,092 (21.6) Policy acquisition and other insurance expense 676 663 2.0 608 11.2 1,284 1,260 1.9 Total benefits and expenses 2,746 3,955 (30.6) 2,529 8.6 5,275 6,352 (17.0) Operating income excluding net realized capital gains (losses) (3) 604 314 92.4 562 7.5 1,166 706 65.2 Net realized capital gains (losses) 160 107 49.5 74 116.2 234 79 196.2 Pre-tax income (loss) (3) $ 764 $ 421 81.5 % $ 636 20.1 % $ 1,400 $ 785 78.3 % Foreign exchange effect on foreign growth: Premiums, deposits and other considerations (1) Growth in original currency (4) 4.7 % 5.6 % Foreign exchange impact 8.7 8.5 Growth as reported in U.S. $ 13.4 % 14.1 %

Gross life insurance in force (at period end) $ 535,384 $ 476,055 12.5 % $ 534,345 0.2 % $ 535,384 $ 476,055 12.5 %

(See Accompanying Notes on Page 37)

35 American International Group, Inc. Japan Operating Statistics (dollars in millions) Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Premiums, deposits and other considerations (1) $ 1,263 $ 1,200 5.3 % $ 1,231 2.6 % $ 2,494 $ 2,462 1.3 % Revenues: Premiums and other considerations $ 919 $ 869 5.8 % $ 864 6.4 % $ 1,783 $ 1,774 0.5 % Net investment income: Interest and dividends 342 330 3.6 329 4.0 671 675 (0.6) Partnership income (loss) 1 (2) NM 5 (80.0) 6 (13) NM Mutual funds 1 14 (92.9) 4 (75.0) 5 15 (66.7) Trading account gains (losses) (1) 4 NM 2 NM 1 1 - Other 20 23 (13.0) 15 33.3 35 32 9.4 Investment expenses (13) (13) NM (14) NM (27) (30) NM Net investment income before policyholder investment income and trading gains (losses) 350 356 (1.7) 341 2.6 691 680 1.6 Net investment income related to policyholder investment income and trading gains (losses) (2) (3) 34 NM 5 NM 2 16 (87.5) Total net investment income 347 390 (11.0) 346 0.3 693 696 (0.4) Total revenues excluding net realized capital gains (losses) and policyholder investment income and trading gains (losses) 1,269 1,225 3.6 1,205 5.3 2,474 2,454 0.8 Total revenues excluding net realized capital gains (losses) 1,266 1,259 0.6 1,210 4.6 2,476 2,470 0.2 Benefits and expenses: Policyholder benefits and claims incurred before the effect of policyholder benefits and claims incurred related to policyholder investment income and trading gains (losses) 741 742 (0.1) 721 2.8 1,462 1,448 1.0 Policyholder benefits and claims incurred related to policyholder investment income and trading gains (losses) (2) (3) 34 NM 5 NM 2 16 (87.5) Policyholder benefits and claims incurred 738 776 (4.9) 726 1.7 1,464 1,464 - Policy acquisition and other insurance expense 312 244 27.9 264 18.2 576 437 31.8 Total benefits and expenses 1,050 1,020 2.9 990 6.1 2,040 1,901 7.3 Operating income excluding net realized capital gains (losses) (3) 216 239 (9.6) 220 (1.8) 436 569 (23.4) Net realized capital gains (losses) (140) (437) NM (135) NM (275) (871) NM Pre-tax income (loss) (3) $ 76 $ (198) NM % $ 85 (10.6)% $ 161 $ (302) NM % Foreign exchange effect on foreign growth: Premiums, deposits and other considerations (1) Growth in original currency (4) (1.1) % (2.3) % Foreign exchange impact 6.4 3.6 Growth as reported in U.S. $ 5.3 % 1.3 %

Gross life insurance in force (at period end) $ 231,918 (3.9) % $ 222,860 $ 226,807 (1.7) %

(See Accompanying Notes on Page 37)

American International Group, Inc. Foreign Life Insurance & Retirement Services Operating Statistics Notes

(1) Premiums, deposits and other considerations represent aggregate business activity presented on a non-GAAP basis. (2) Relates primarily to assets held in various trading securities accounts that did not qualify for separate account treatment. These amounts are offset by an equal charge included in incurred policy losses and benefits. (3) Amortization expense (benefit) of deferred acquisition costs, VoBA and sales inducements related to net realized capital gains (losses) are as follows:

Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, (in millions) 2010 2009 2010 2010 2009 Asia $ 100 $ 852 $ 66 $ 166 $ 626 Japan 11 (101) (17) (6) (149) Total $ 111 $ 751 $ 49 $ 160 $ 477

(4) Computed using a constant exchange rate for each period.

37 American International Group, Inc. Financial Services Operating Results (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.) Revenues: Aircraft Leasing $ 1,241 $ 1,309 (5.2) % $ 907 36.8 % $ 2,148 $ 2,590 (17.1) % Capital Markets: Excluding unrealized market valuation losses, credit valuation adjustment and non-qualifying derivative hedging activities (556) (628) NM (417) NM (973) (2,828) NM Unrealized market valuation gains (1) 161 636 (74.7) 119 35.3 280 184 52.2 Credit valuation adjustment (2) 345 (20) NM 64 439.1 409 1,661 (75.4) Subtotal (50) (12) NM (234) NM (284) (983) NM Consumer Finance 632 699 (9.6) 713 (11.4) 1,345 1,585 (15.1) Other, including intercompany adjustments 73 145 (49.7) 87 (16.1) 160 254 (37.0) Total revenues, excluding non-qualifying derivative hedging activities and net realized capital gains (losses) 1,896 2,141 (11.4) 1,473 28.7 3,369 3,446 (2.2) Non-qualifying derivative hedging activities - Capital Markets (3) - 4 NM - NM - 6 NM Net realized capital gains (losses) (4) (11) 223 NM 35 NM 24 181 (86.7) Total revenues $ 1,885 $ 2,368 (20.4) % $ 1,508 25.0 % $ 3,393 $ 3,633 (6.6) %

Pre-tax income (loss): Aircraft Leasing $ 182 $ 335 (45.7) % $ (56) NM % $ 126 $ 651 (80.6) % Capital Markets: Excluding unrealized market valuation losses, credit valuation adjustment and non-qualifying derivative hedging activities (638) (748) NM (481) NM (1,119) (3,100) NM Unrealized market valuation gains (1) 161 636 (74.7) 119 35.3 280 184 52.2 Credit valuation adjustment (2) 345 (20) NM 64 439.1 409 1,661 (75.4) Subtotal (132) (132) NM (298) NM (430) (1,255) NM Consumer Finance 4 (270) NM (91) NM (87) (503) NM Other, including intercompany adjustments (12) (36) NM (29) NM (41) (86) NM Total pre-tax income (loss), excluding non-qualifying derivative hedging activities and net realized capital gains (losses) 42 (103) NM (474) NM (432) (1,193) NM Non-qualifying derivative hedging activities - Capital Markets (3) - 4 NM - NM - 6 NM Net realized capital gains (losses) (4) (11) 223 NM 35 NM 24 181 (86.7) Total pre-tax income (loss) $ 31 $ 124 (75.0) % $ (439) NM % $ (408) $ (1,006) NM %

(See Accompanying Notes on Page 41)

38 American International Group, Inc. Consumer Finance Operating Results (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.)

Revenues:

American General Finance $ 511 $ 540 (5.4) % $ 523 (2.3) % $ 1,034 $ 1,186 (12.8) % AIG Consumer Finance Group, Inc. 114 151 (24.5) 183 (37.7) 297 380 (21.8) AIG Federal Savings Bank 7 8 (12.5) 7 - 14 19 (26.3) Total revenues, excluding net realized capital gains (losses) 632 699 (9.6) 713 (11.4) 1,345 1,585 (15.1) Net realized capital gains (losses) (10) 79 NM 66 NM 56 6 NM

Total revenues $ 622 $ 778 (20.1) % $ 779 (20.2) % $ 1,401 $ 1,591 (11.9) %

Pre-tax income (loss): American General Finance $ (11) $ (202) NM % $ (132) NM % $ (143) $ (405) NM % AIG Consumer Finance Group, Inc. 15 (69) NM 36 (58.3) 51 (103) NM AIG Federal Savings Bank - 1 NM 5 NM 5 5 - Total operating income (loss), excluding net realized capital gains (losses) 4 (270) NM (91) NM (87) (503) NM Net realized capital gains (losses) (10) 79 NM 66 NM 56 6 NM

Total pre-tax loss $ (6) $ (191) NM % $ (25) NM % $ (31) $ (497) NM %

39 American International Group, Inc. Consumer Finance - Finance Receivable Data (dollars in millions)

Three Months Ended / As of Six Months Ended / As of June 30, June 30, % Inc. March 31, % Inc. June 30, June 30, % Inc. 2010 2009 (Dec.) 2010 (Dec.) 2010 2009 (Dec.)

American General Finance Receivables: Real Estate $ 14,363 $ 16,103 (10.8) % $ 14,270 0.7 % $ 14,363 $ 16,103 (10.8) % Non Real Estate 2,890 3,573 (19.1) 2,966 (2.6) 2,890 3,573 (19.1) Retail Sales Finance 733 1,735 (57.8) 896 (18.2) 733 1,735 (57.8) Total receivables 17,986 21,411 (16.0) 18,132 (0.8) 17,986 21,411 (16.0) Allowance for loan losses (1,432) (1,333) NM (1,533) (6.6) (1,432) (1,333) 7.4 Net Receivables $ 16,554 $ 20,078 (17.6) % $ 16,599 (0.3) % $ 16,554 $ 20,078 (17.6) % Credit Ratios: Delinquencies - 60+: Real Estate 6.94 % 6.10 % 7.32 % 6.94 % 6.10 % Non Real Estate 4.10 4.87 4.57 4.10 4.87 Retail Sales Finance 5.79 3.69 6.02 5.79 3.69 Total Delinquencies - 60+ 6.40 5.67 6.77 6.40 5.67 Net Charge-off: Real Estate 2.55 2.60 2.94 2.75 2.31 Non Real Estate 6.16 8.22 7.09 6.64 8.07 Retail Sales Finance 9.31 5.11 8.93 9.10 4.77 Total Net Charge-off 3.46 3.72 3.97 3.72 3.46 Allowance for loan losses 7.97 % 6.22 % 8.45 % 7.97 % 6.22 %

AIG Consumer Finance Group, Inc. (5) Total receivables $ 58 $ 3,384 (98.3) % $ 1,638 (96.5) % $ 58 $ 3,384 (98.3) % Allowance for loan losses (9) (510) (98.2) (195) (95.4) (9) (510) (98.2) Net Receivables $ 49 $ 2,874 (98.3) % $ 1,443 (96.6) % $ 49 $ 2,874 (98.3) %

AIG Federal Savings Bank Total receivables $ 193 $ 194 (0.5) % $ 201 (4.0) % $ 193 $ 194 (0.5) % Allowance for loan losses (3) (2) 50.0 (3) - (3) (2) 50.0 Net Receivables 190 192 (1.0) 198 (4.0) 190 192 (1.0) Total Net Receivables (6) $ 16,793 $ 23,144 (27.4) % $ 18,240 (7.9) % $ 16,793 $ 23,144 (27.4) %

(See Accompanying Notes on page 41)

40 American International Group, Inc. Financial Services Notes

(1) Represents unrealized market valuation gains (losses) on Capital Markets’ super senior credit default swap portfolio. (2) Includes the pre-tax effect of changes in pre-tax credit spreads on the valuation of Capital Markets’ assets of $50 million, $1.2 billion, $812 million, $862 million, $478 million and liabilities of $318 million, $(1.3) billion, $(861) million, $(543) million, $1.3 billion (includes $23 million in gains, $17 million in losses, $113 million in losses, $90 million in losses and $89 million in gains, on the super senior credit default portfolio reported with the unrealized market valuation gains and losses) in the three months ended June 30, 2010 and 2009 and March 31, 2010 and six months ended June 30, 2010 and 2009, respectively. (3) Includes the gains (losses) from hedging activities that did not qualify for hedge accounting, including the related foreign exchange gains and losses. These amounts result primarily from interest rate and foreign currency derivatives that are effective economic hedges of borrowings. (4) Net realized capital gains (losses) are as follows:

Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, (in millions) 2010 2009 2010 2010 2009 Aircraft Leasing $ (9) $ 75 $ (25) $ (34) $ 75 Consumer Finance (10) 79 66 56 6 Other 8 69 (6) 2 100 Total $ (11) $ 223 $ 35 $ 24 $ 181

These amounts result primarily from the effect of hedging activities that did not qualify for hedge accounting, including the related foreign exchange gains and losses.

(5) The decline in balances reflect the sale of the AIGCFG operations, during 2009 and through June 30, 2010, in Argentina, China, Colombia, Thailand, the Philippines, Mexico, Hong Kong, Brazil, Russia, Taiwan and its banking business in Poland. (6) Total net receivables exclude finance receivables held for sale of $497 million and $754 million at March 31, 2010 and June 30, 2009, respectively.

American General Finance Analysis of Real Estate Loan Portfolio June 30, 2010

Real Estate Portfolio* Total Portfolio FICO (≥ 660) FICO (620 - 659) FICO (< 620) Outstandings $14.4 Billion $6.1 Billion $2.6 Billion $5.5 Billion LTV 80% 85% 80% 75% 60+% 6.94% 5.85% 8.49% 7.46% 2009 Vintage $163.5 Million $20.2 Million $25.5 Million $117.8 Million LTV 66% 64% 66% 67% 60+% 2.40% 2.18% 0.63% 2.82% 2008 Vintage $1.2 Billion $208.0 Million $202.1 Million $808.2 Million LTV 72% 73% 73% 72% 60+% 5.51% 3.33% 5.36% 6.12% 2007 Vintage $3.2 Billion $1.0 Billion $695.2 Million $1.5 Billion LTV 79% 83% 81% 75% 60+% 8.73% 7.43% 10.66% 8.72% 2006 Vintage $2.5 Billion $888.1 Million $496.9 Million $1.1 Billion LTV 81% 87% 81% 76% 60+% 7.82% 7.24% 8.74% 7.88% 2005 Vintage $3.3 Billion $1.9 Billion $602.9 Million $750.4 Million LTV 83% 86% 82% 76% 60+% 7.12% 6.16% 9.39% 7.73% LTV Greater than 95.5% $2.5 Billion $2.0 Billion $317.0 Million $169.3 Million LTV 99% 99% 99% 98% 60+% 6.91% 6.32% 10.45% 7.30% Interest Only $1.1 Billion $884.7 Million $167.0 Million $13.5 Million LTV 88% 89% 87% 80% 60+% 10.02% 8.78% 15.39% 24.31% Low Documentation $369.0 Million $183.0 Million $123.2 Million $62.9 Million LTV 76% 78% 77% 71% 60+% 13.88% 12.19% 14.97% 16.67%

*AGF’s loan underwriting process does not use FICO scores as a primary determinant for credit decisions. AGF uses proprietary risk scoring models in making credit decisions. Delinquency figures are shown as a percentage of outstanding loan balances, consistent with mortgage lending practice. Any account which is 60 or more days past due, regardless of foreclosure, bankruptcy or other condition, is included in the AGF 60+ delinquency statistics. Differences in totals by columns and rows are due to rounding.

42 American International Group, Inc. Other Operations (in millions) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2010 2009 2010 2010 2009 Parent & Other before net realized capital gains (losses) Interest income (1) $ 598 $ 748 $ 588 $ 1,186 $ 1,724 Interest expense on FRBNY Credit Facility: Accrued and compounding interest (212) (552) (194) (406) (1,260) Amortization of prepaid commitment asset (2) (543) (822) (639) (1,182) (1,644) Total interest expense on FRBNY Credit Facility (3) (755) (1,374) (833) (1,588) (2,904) Other interest expense (557) (547) (540) (1,097) (1,093) Unallocated corporate expenses (721) (356) (83) (804) (419) Restructuring expenses (40) (130) (97) (137) (248) Change in fair value of ML III (4) - 539 - - (1,401) Net gain (loss) on sale of divested businesses 198 (566) (76) 122 (307) Other miscellaneous, net 99 99 112 211 267 Total Parent & Other (1,178) (1,587) (929) (2,107) (4,381) Other businesses before net realized capital gains (losses) Mortgage Guaranty 226 (488) 73 299 (971) Change in fair value of ML III (4) 358 462 751 1,109 462 Noncore Asset Management (175) (286) (248) (423) (735) Noncore insurance 3 134 (2) 1 332 Total Other businesses 412 (178) 574 986 (912) Subtotal Other operations - net (5) (766) (1,765) (355) (1,121) (5,293) Other net realized capital gains 241 265 91 332 343 Total Other operations - net $ (525) $ (1,500) $ (264) $ (789) $ (4,950) Consolidation and elimination adjustments: Before net realized capital gains (losses) Non-qualifying derivative hedging activities (6) $ (157) $ 1,035 $ (145) $ (302) $ 853 Income from consolidated managed partnerships & funds (5) (7) (43) 28 14 (29) (751) All other (5) 316 277 (32) 284 999 Subtotal 116 1,340 (163) (47) 1,101 Net realized capital gains (losses) Reclassification of non-qualifying derivative hedging activities to other (8) 130 (1,200) 231 361 (1,343) All other eliminations (90) 7 (78) (168) 102 Subtotal 40 (1,193) 153 193 (1,241) Total consolidation and elimination adjustments $ 156 $ 147 $ (10) $ 146 $ (140)

(See Accompanying Notes on Page 44)

American International Group, Inc. Other Operations Notes

(1) Primarily represents interest on intercompany loans largely arising from distribution of funds from the FRBNY Credit Facility. (2) The prepaid commitment fee asset related to the FRBNY Credit Facility is being amortized as interest expense ratably over the five-year term of the agreement, accelerated for actual pay-downs that reduce the total credit available.

A rollforward of the prepaid commitment asset is as follows:

Three Months Ended Six Months Ended

June 30, June 30, March 31, June 30, June 30, (in millions) 2010 2009 2010 2010 2009 Balance, beginning of period $ 6,460 $ 14,636 $ 7,099 $ 7,099 $ 15,458 Normal amortization (467) (822) (478) (944) (1,644) Accelerated amortization (76) - (161) (238) - Balance, end of period $ 5,917 $ 13,814 $ 6,460 $ 5,917 $ 13,814

(3) Includes interest expense of $41 million, $47 million and $183 million for the three months ended June 30, 2010 and 2009 and March 31, 2010, respectively and $82 million and $102 million for the six months ended June 30, 2010 and 2009, respectively, allocated to discontinued operations in consolidation. (4) In May 2009, AIG contributed its equity interest in ML III, to an AIG subsidiary, which is reported as part of other businesses. (5) Components of adjusted net loss. (6) Represents the elimination of revenues reported in the Financial Services segment from intercompany hedging activities and the reclassification of the related foreign exchange rates on economically hedged exposures. (7) Includes the income from certain consolidated partnerships, private equity and real estate funds and is offset in noncontrolling interest expense, which is not a component of operating income. Many of these funds have been deconsolidated as of March 26, 2010 resulting from the sale of AIG’s third party asset management business. (8) Represents the elimination of intercompany net realized capital gains (losses) resulting from intercompany hedging activities and the reclassification of the related foreign exchange rates on economically hedged exposures.

44 American International Group, Inc. Condensed Balance Sheet — Parent Company Only

June 30, December 31, (in millions)(unaudited) 2010 2009 Assets: Investments (1) $ 9,118 $ 10,702 Cash 65 57 Loans to subsidiaries* (2) 74,391 72,926 Due from affiliates - net* - 382 Current and deferred income taxes (3) 6,899 7,470 Debt issuance costs, including prepaid commitment 6,176 7,383 asset of $5,916 in 2010 and $7,099 in 2009 (4) Investments in consolidated subsidiaries* (5) 77,307 71,419 Other assets (6) 3,361 3,134 Total assets $ 177,317 $ 173,473 Liabilities: Intercompany tax payable* (3) $ 28,421 $ 28,729 Due to affiliates -net* 2 - Federal Reserve Bank of New York credit facility 26,457 23,435 Parent Company Long Term Debt 26,706 28,300 AIG MIP matched notes and bonds payable 12,349 13,376 Series AIGFP matched notes and bonds payable 3,708 3,760 Intercompany loans payable* (7) 896 1,778 Other liabilities (includes intercompany derivative liabilities of 3,308 4,271 of $289 in 2010 and $1,278 in 2009) (8) Total liabilities 101,847 103,649 Shareholders’ equity: Preferred stock (9) 71,983 69,784 Common stock 354 354 Treasury stock (873) (874) Additional paid-in capital 6,297 6,358 Accumulated deficit (10) (12,120) (11,491) Accumulated other comprehensive income 9,829 5,693 Total AIG shareholders’ equity 75,470 69,824 Total liabilities and equity $ 177,317 $ 173,473 * Eliminated in consolidation.

(See accompanying Notes on Page 46)

American International Group, Inc. Consolidated Balance Sheet – Parent Company Only Notes

(1) Primarily represents MIP’s investments in bond, mortgage loan, and bank loan portfolios. Also includes intercompany derivative assets and a third party note receivable. (2) Represents AIG parent’s loan to AIGFP (mostly through AIG Funding) and other subsidiaries, primarily Financial Services subsidiaries. (3) The consolidated U.S. members deferred tax asset for net operating loss and tax credit carryforwards and valuation allowance are maintained at AIG parent and are not allocated to the subsidiaries. As the consolidated net operating losses and other tax attribute carryforwards are utilized, the intercompany tax balance will be settled with the subsidiaries.

June 30, 2010 December 31, 2009

AIG Intercompany Valuation Total AIG Intercompany Valuation Total (dollars in millions) Parent Allowance Parent Allowance Current and deferred income taxes Current -U.S. Consolidated Receivable from the IRS $ 263 $ (583) $ - $ (320) $ 334 $ (216) $ - $ 118 Deferred Tax Asset / Liability 14,944 13,535 (21,260) 7,219 5,730 23,383 (21,761) 7,352 Total 15,207 12,952 (21,260) 6,899 6,064 23,167 (21,761) 7,470 Intercompany tax payable Current -Intercompany Tax Payable $ - $ (28,421) $ - $ (28,421) $ - $ (28,729) $ - $ (28,729)

(4) Represents capitalized debt issuance costs related to third party debt issuances and a prepaid commitment asset related to the FRBNY Credit Facility. The prepaid commitment fee asset related to the FRBNY Credit Facility is being amortized as interest expense ratably over the five year term of the agreement, accelerated for actual pay- downs that reduce total credit available. (5) Represents AIG parent’s investment in directly owned consolidated subsidiaries. (6) Primarily represents restricted cash held at various banks of $2.3 billion, escrow funds of $338 million related to workers’ compensation and a $257 million tax escrow related to insurance subsidiaries operating in New York. (7) Current balance represents intercompany borrowings primarily from AIGFP and American General Finance Corp. The balance at December 31, 2009 primarily included $1.55 billion demand note borrowing from American General Finance Corp. The outstanding demand note balance was reduced to $750 million as of June 30, 2010. (8) Primarily consists of intercompany derivative liabilities and accrued liabilities. (9) Includes the Series C, E, and F Preferred Stocks. AIG increased the liquidation preference of the Series F Preferred Stock by $2.2 billion during the first quarter of 2010. (10) Includes $170 million of cumulative effect of change in accounting principle reported in subsidiaries and picked up by AIG parent.

American International Group, Inc. Condensed Statement of Income — Parent Company Only

Three Months Ended June 30, Six Months Ended (in millions)(unaudited) 2010 2009 2010 2009 Income Equity in undistributed net income (loss) of consolidated subsidiaries * $ (2,170) $ 1,967 $ (854)$ (631) Interest income 835 1,035 1,691 2,325 Change in fair value of ML III - 539 - (1,401) Dividend income from consolidated subsidiaries* 393 294 683 520 Net realized capital gains 104 237 227 300 Other revenues (1) 3 1 86 Expenses Accrued and compounding interest (212) (552) (406) (1,260) Amortization of prepaid commitment asset (543) (822) (1,182) (1,644) Total interest expense on FRBNY Credit Facility (755) (1,374) (1,588) (2,904) Other interest expense (615) (629) (1,222) (1,273) Restructuring expenses and related asset impairment and other expenses (38) (128) (135) (248) Other expenses, net (670) (348) (728) (484) Income (loss) from continuing operations before income tax expense (benefit) (2,917) 1,596 (1,925) (3,710) Income tax benefit (261) (226) (1,126) (1,179) Net Income (loss) $ (2,656) $ 1,822 $ (799)$ (2,531)

* Eliminated in consolidation. Certain prior period amounts have been reclassified to conform to the current period presentation.

47 American International Group, Inc. Condensed Statement of Cash Flows — Parent Company Only Six Months Ended June 30, (in millions)(unaudited) 2010 2009 Net cash (used in) provided by operating activities $ (276) $ 153 Cash flows from investing activities: Sale of investments 639 4,920 Maturities of investments 10 - Sale of divested businesses 277 850 Purchase of investments (7) (4,311) Change in short-term investments (560) 1,020 Contributions to subsidiaries (2,183) (2,341) Mortgage and other loan receivables — originations and purchases (21) (107) Payments received on mortgages and other loan receivables 358 248 Loans to subsidiaries - net (504) (3,858) Other, net (308) (75) Net cash used in investing activities (2,299) (3,654) Cash flows from financing activities: Federal Reserve Bank of New York Credit Facility borrowings 12,700 15,700 Federal Reserve Bank of New York Credit Facility repayments (10,030) (12,500) Repayment on other long-term debt (1,405) (1,876) Drawdown on the Department of the Treasury Commitment 2,199 1,150 Loans from subsidiaries - net (881) 987 Net cash provided by financing activities 2,583 3,461 Change in cash 8 (40) Cash at beginning of year 57 103 Cash at end of period $ 65 $ 63

48 American International Group, Inc. Net Realized Capital Gains (Losses) (dollars in millions)

Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, June 30, 2010 2009 2010 2010 2009 General Insurance Bonds available for sale $ 32 $ 6 $ 169 $ 201 $ 76 Stocks available for sale 16 37 87 103 23 Other transactions (16) 26 36 20 25 Other than temporary impairment charges: Severity (2) - (20) (22) (110) Change in intent - (1) (1) (1) (122) Foreign currency declines (1) - (2) (3) - Issuer-specific credit events (39) (48) (78) (117) (300) Adverse projected cash flows on structured securities - (1) - - (1) Total other than temporary impairment charges (42) (50) (101) (143) (533) Foreign exchange transactions 32 (10) (19) 13 (164) Derivative instruments 36 (46) (35) 1 (72) Total pre-tax realized gains (losses) $ 58 $ (37) $ 137 $ 195 $ (645) Domestic Life Insurance & Retirement Services Bonds available for sale $ 49 $ 315 $ 136 $ 185 $ 284 Stocks available for sale 17 - 11 28 (8) Other transactions (102) (117) (45) (147) (433) Other than temporary impairment charges: Severity - (3) (8) (8) (816) Change in intent (9) (110) (7) (16) (649) Foreign currency declines - - - - - Issuer-specific credit events (404) (386) (649) (1,053) (982) Adverse projected cash flows on structured securities - - - - (108) Total other than temporary impairment charges (413) (499) (664) (1,077) (2,555) Foreign exchange transactions 72 (317) 114 186 (92) Derivative instruments (589) 564 (348) (937) 1,083 Total pre-tax realized losses $ (966) $ (54) $ (796) $ (1,762) $ (1,721) Foreign Life Insurance & Retirement Services Bonds available for sale $ 85 $ 48 $ 35 $ 120 $ 57 Stocks available for sale 36 52 99 135 72 Other transactions (23) (99) (4) (27) (36) Other than temporary impairment charges: Severity (23) (9) (26) (49) (262) Change in intent (18) (17) (20) (38) (52) Foreign currency declines (31) (142) (30) (61) (226) Issuer-specific credit events (17) (19) (145) (162) (14) Adverse projected cash flows on structured securities - - - - - Total other than temporary impairment charges (89) (187) (221) (310) (554) Foreign exchange transactions (74) (188) 53 (21) (202) Derivative instruments 85 44 (23) 62 (129) Total pre-tax realized gains (losses) $ 20 $ (330) $ (61) $ (41) $ (792) Financial Services Bonds available for sale $ - $ 2 $ - $ - $ (1) Stocks available for sale - - - - - Other transactions 3 (23) 69 72 (17) Other than temporary impairment charges: Severity - - - - (2) Change in intent - - - - - Foreign currency declines - - - - - Issuer-specific credit events (4) (3) (6) (10) (10) Adverse projected cash flows on structured securities - - - - (4) Total other than temporary impairment charges (4) (3) (6) (10) (16) Foreign exchange transactions 67 7 43 110 (44) Derivative instruments (77) 240 (71) (148) 259 Total pre-tax realized gains (losses) $ (11) $ 223 $ 35 $ 24 $ 181 Other Operations * Bonds available for sale $ (1) $ 20 $ (6) $ (7) $ (3) Stocks available for sale (1) 2 7 6 (41) Other transactions 60 (79) (140) (80) (124) Other than temporary impairment charges: Severity - (2) - - (492) Change in intent - - - - (40) Foreign currency declines - - - - - Issuer-specific credit events (104) (119) (90) (194) (389) Adverse projected cash flows on structured securities - (2) - - (23) Total other than temporary impairment charges (104) (123) (90) (194) (944) Foreign exchange transactions 675 (549) 430 1,105 (279) Derivative instruments (348) (204) 43 (305) 488 Total pre-tax realized gains (losses) $ 281 $ (933) $ 244 $ 525 $ (903) Total realized gains (losses) Bonds available for sale $ 165 $ 391 $ 334 $ 499 $ 413 Stocks available for sale 68 91 204 272 46 Other transactions (78) (292) (84) (162) (585) Other than temporary impairment charges: Severity (25) (14) (54) (79) (1,682) Change in intent (27) (128) (28) (55) (863) Foreign currency declines (32) (142) (32) (64) (226) Issuer-specific credit events (568) (575) (968) (1,536) (1,695) Adverse projected cash flows on structured securities - (3) - - (136) Total other than temporary impairment charges (652) (862) (1,082) (1,734) (4,602) Foreign exchange transactions 772 (1,057) 621 1,393 (781) Derivative instruments (893) 598 (434) (1,327) 1,629 Total pre-tax realized losses $ (618) $ (1,131) $ (441) $ (1,059) $ (3,880)

Total realized losses, net of tax $ (564) $ (899) $ (287) $ (851) $ (3,282) * Includes reclassification and eliminations.

49 American International Group, Inc. Cash and Investments June 30, 2010 (dollars in millions)

Domestic Life Foreign Life Total Insurance & Insurance & General Insurance General Retirement Retirement Financial Total Domestic Foreign Insurance Services Services Services Other Company

Fixed maturity securities: Bonds available for sale, at fair value $ 62,680 $ 24,833 $ 87,513 $ 127,752 $ 89,537 $ 1,981 $ 8,706 $ 315,489 Bond trading securities, at fair value - - - 1,045 2,432 18,382 5,627 27,486 Equity securities: Common and preferred stock available for sale, at fair value 2,043 1,722 3,765 253 6,530 9 459 11,016 Common and preferred stock trading, at fair value 45 - 45 1 5,014 210 6 5,276 Mortgage and other loans receivable, net of allowance 13 628 641 17,010 4,195 394 2,577 24,817 Finance receivables, net of allowance - - - - - 17,862 - 17,862 Flight equipment primarily under operating leases, net of accumulated depreciation - - - - - 40,973 - 40,973 Other invested assets 11,229 1,703 12,932 13,043 5,224 246 5,564 37,009 Securities purchased under agreements to resell, at fair value - - - - - 965 - 965 Short-term investments 6,558 5,411 11,969 14,296 3,840 6,401 2,603 39,109 Total investments 82,568 34,297 116,865 173,400 116,772 87,423 25,542 520,002 Cash 246 785 1,031 479 500 705 125 2,840 Total cash and investments $ 82,814 $ 35,082 $ 117,896 $ 173,879 $ 117,272 $ 88,128 $ 25,667 $ 522,842

Percent of total company 15.8% 6.7% 22.5% 33.3% 22.4% 16.9% 4.9% 100.0%

50 American International Group, Inc AIG Financial Products Balance Sheet (1) (in millions)

June 30, 2010 December 31, 2009 Assets: Bonds available for sale, at fair value $ 326 $ 375 Bond trading securities, at fair value 18,382 19,651 Common and preferred stock trading, at fair value 210 402 Mortgage and other loans receivable, net of allowance 898 864 Equity investment in affiliate (2) 1,689 1,688 Other invested assets 103 165 Securities purchased under agreement to resell, at fair value 965 2,154 Short-term investments 2,453 1,356 Total investments 25,026 26,655 Cash 539 1,536 Trade receivable 2,606 1,500 Current and deferred income taxes (3) 17,310 17,147 Unrealized gain on swaps, options and forward transactions, at fair value (4) 6,870 8,461 Other assets 661 753 Total assets $ 53,012 $ 56,052 Liabilities: Securities sold under agreements to repurchase $ 3,385 $ 3,221 Trade payable 554 524 Securities and spot commodities sold but not yet purchased, at fair value 226 1,030 Unrealized loss on swaps, options and forward transactions, at fair value (4) 5,371 5,783 Federal Reserve Bank of New York commercial paper funding facility - 2,742 Intercompany borrowings -Parent and Other (5) 62,374 60,581 Intercompany borrowings -other subsidiaries 3,659 3,625 Other long-term debt (6) 12,637 13,195 Other liabilities 87 261 Total liabilities 88,293 90,962 Shareholders' equity: Additional paid-in capital $ 144 $ 144 Accumulated deficit (35,464) (35,092) Accumulated other comprehensive income (loss): 39 38 Total shareholders' equity $ (35,281) $ (34,910) Total liabilities and shareholders' equity $ 53,012 $ 56,052

Notes:

(1) Represents the balance sheet used in the preparation of the consolidated financial statements of AIG, Inc. (2) Represents an equity method investment in a subsidiary of AIG Life Holdings U.S., Inc. in which AIGFP owns less than 5%. (3) Primarily represents a tax receivable due from AIG, Inc. (4) Represents the fair value of interest rate contracts, foreign exchange contracts, equity contracts, commodity contracts, credit contracts and other contracts. The fair value amounts are shown on AIGFP’s balance sheet after netting of derivative exposures covered by a qualifying master netting agreement and after netting of cash collateral posted and received. (5) Represents the fair value of borrowings payable to AIG, Inc., primarily borrowings from the FRBNY Credit Facility (through AIG Funding). In addition includes proceeds from the Series AIGFP notes and bonds payable. Borrowings used primarily to fund collateral postings, guaranteed investment agreements and other debt maturities. (6) Consists of notes and bonds payable, loans and mortgages payable, hybrid financial instruments liabilities and guaranteed investment agreements.

51 American International Group, Inc Other Invested Assets (dollars in millions) June 30, Dec. 31, % Inc. 2010 2009 (Dec.) Domestic General Insurance Alternative funds (1) $ 6,479 $ 6,054 7.0 % Mutual funds 339 184 84.2 Life settlement contracts 3,639 3,399 7.1 Direct private equity investments 118 20 490.0 All other investments 654 695 (5.9) Total Domestic General Insurance 11,229 10,352 8.5 Foreign General Insurance Alternative funds (1) 154 298 (48.3) Mutual funds 1,036 336 208.3 Investment real estate 226 127 78.0 Direct private equity investments 79 350 (77.4) All other investments 208 205 1.5 Total Foreign General Insurance 1,703 1,316 29.4 Domestic Life Insurance and Retirement Services Alternative funds (1) 10,904 11,001 (0.9) Mutual funds 33 47 (29.8) Investment real estate 455 389 17.0 Aircraft asset investments 1,438 1,498 (4.0) All other investments 213 206 3.4 Total Domestic Life Insurance 13,043 13,141 (0.7) Foreign Life Insurance & Retirement Services Alternative funds (1) 835 1,262 (33.8) Mutual funds (2) 1,627 8,585 (81.0) Investment real estate 1,460 2,265 (35.5) Direct private equity investments 40 65 (38.5) All other investments 1,263 1,572 (19.7) Total Foreign Life Insurance & Retirement Services (2) 5,225 13,749 (62.0) Financial Services and Other Alternative funds (1) 344 658 (47.7) Mutual funds 573 471 21.7 Investment real estate 3,698 4,481 (17.5) Direct private equity investments 128 8 NM All other investments 129 243 (46.9) Total Financial Services and Other 4,872 5,861 (16.9) Consolidated Managed Partnerships & Funds (3) 937 816 14.8 Total AIG Other Invested Assets Alternative funds (1) 18,716 19,273 (2.9) Mutual funds 3,608 9,623 (62.5) Investment real estate 5,839 7,262 (19.6) Aircraft asset investments 1,438 1,498 (4.0) Life settlement contracts 3,639 3,399 7.1 Direct private equity investments 365 443 (17.6) All other investments 2,467 2,921 (15.5) Consolidated Managed Partnerships & Funds (3) 937 816 14.8 Total AIG Other Invested Assets $ 37,009 $ 45,235 (18.2)%

Note: (1) Includes hedge funds, private equity funds and other investment partnerships. (2) Reflects classification of ALICO investments to held for sale at June 30, 2010. (3) Represents AIG managed partnerships and funds that are consolidated.

52 American International Group, Inc. Return on Average Partnerships and Mutual Funds Assets (1) (dollars in millions)

Three Months Ended Six Months Ended

June 30, 2010 June 30, 2009 March 31, 2010 June 30, 2010 June 30, 2009 Return on Return on Return on Return on Return on Income Average Income Average Income Average Income Average Income Average (Loss) Assets (Loss) Assets (Loss) Assets Assets (Loss) Assets Assets (Loss) (6) Assets (6) Assets Partnerships (2) (3): General Insurance Domestic General Insurance $ 199 12.6 % $ (56) (4.1)% $ 142 $ 6,145 9.3 % $ 341 $ 6,479 11.0 % $ (377) $ 5,382 (13.3) % Foreign General Insurance 21 36.1 (44) (43.8) 5 311 6.6 26 154 20.4 (121) 376 (48.6) Total General Insurance 220 13.4 (100) - 147 6,456 9.2 367 6,633 11.3 (498) 5,758 (16.1) Domestic Life Insurance & Retirement Services Domestic Life Insurance 29 9.8 (18) (5.9) 20 1,150 6.8 49 1,225 8.2 (139) 1,187 (21.9) Domestic Retirement Services 184 7.6 74 3.0 215 9,805 8.8 399 9,679 8.2 (178) 9,718 (3.3) Total Domestic Life Insurance & Retirement Services 213 7.8 56 2.0 235 10,955 8.6 448 10,904 8.2 (317) 10,905 (5.3) Foreign Life Insurance & Retirement Services (4) 2 0.9 (21) (8.2) 3 880 1.3 5 835 1.1 (38) 971 (7.1)

Financial Services and Other 73 86.5 (128) (40.3) (3) 331 (2.4) 70 344 31.5 (345) 920 (42.7) Total excluding Consolidated Managed Partnerships and Funds 508 10.9 % (193) (4.0)% 382 18,622 8.1 % 890 18,716 9.5 % (1,198) 18,554 (11.5) % Consolidated Managed Partnerships and Funds (5) (88) (164) (16) 1,063 (104) 937 (919) 3,814 Total $ 420 $ (357) $ 366 $ 19,685 $ 786 $ 19,653 $ (2,117) $ 22,368 Partnership Type: Private Equity $ 440 13.4 % $ (314) (9.7)% $ 195 $ 12,997 6.0 % $ 635 $ 13,183 9.7 % $ (1,220) $ 12,524 (17.7) % Hedge Funds 68 4.9 121 7.7 187 5,625 13.0 255 5,533 9.0 22 6,030 0.6 Total excluding Consolidated Managed Partnerships and Funds $ 508 10.9 % $ (193) (4.0)% $ 382 $ 18,622 8.1 % $ 890 $ 18,716 9.5 % $ (1,198) $ 18,554 (11.5) %

Mutual Funds (6): General Insurance Domestic General Insurance $ (31) (48.2)% $ 27 78.0 % $ 1 $ 175 2.2 % $ (30) 339 (25.8)% $ 15 $ 153 21.6 % Foreign General Insurance 6 2.9 91 114.1 (2) 609 (1.7) 4 1,036 1.2 69 363 43.0 Total General Insurance (25) (9.3) 118 103.2 (1) 784 (0.6) (26) 1,375 (5.8) 84 516 36.5 Domestic Life Insurance & Retirement Services Domestic Life Insurance - - 2 12.0 1 30 13.3 1 24 7.1 3 71 9.3 Domestic Retirement Services - - - - - 12 - - 9 - - 18 - Total Domestic Life Insurance & Retirement Services - - 2 9.7 1 42 9.0 1 33 4.9 3 89 7.5 Foreign Life Insurance & Retirement Services (4) (8) (3.9) 85 40.2 (2) 840 (0.9) (10) 809 (2.4) 25 813 5.8 Total $ (33) (6.8)% $ 205 59.2 % $ (2)$ 1,666 (0.5)% $ (35)$ 2,217 (3.9)% $ 112 $ 1,418 15.9 %

Total Partnerships and Mutual Funds $ 475 $ 12 $ 380 $ 855 $ (1,086)

Notes: (1) Annualized income (loss) expressed as a percentage of average assets. (2) Represents private equity partnerships and hedge funds. (3) Partnership income (loss) is on a lag basis. Hedge Funds are generally on a one month lag, while Private Equity are generally on a one quarter lag. (4) Historical results have been revised to exclude Nan Shan and ALICO which now are presented as discontinued operations. (5) Represents AIG managed partnerships and funds that are consolidated. (6) Comprised of equity-method mutual fund investments. Excludes mutual funds aecounted for as equity securities and mutual funds.

53 Comment on Regulation G

This financial supplement includes certain non-GAAP financial measures. The reconciliations of such measures to the most comparable GAAP figures 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 Maiden Lane interests, the effect of dispositions, interest and amortization related to the FRBNY Credit Facility, the recognition of other-than-temporary impairments, restructuring- related activities, conversion of the Series C Preferred Stock, realized capital gains (losses), the effect of variable interest entities, the effect of non-qualifying derivative hedging activities, the effect of goodwill impairments, tax valuation allowances, credit valuation adjustments, unrealized market valuation gains (losses), UGC operating results, the effect of catastrophe-related losses and foreign exchange rates 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 that underwriting profit (loss) provides investors with financial information that is not only meaningful but critically important to understanding the results of property and casualty insurance operations. Operating income of a property and casualty insurance company includes three components: underwriting profit (loss), net investment income and realized capital gains (losses). Without disclosure of underwriting profit (loss), it is impossible to determine how successful an insurance company is in its core business activity of assessing and underwriting risk. Including investment income and net realized capital gains (losses) in operating income without disclosing underwriting profit (loss) can mask underwriting losses. The amount of net investment income may be driven by changes in interest rates and other factors that are totally unrelated to underwriting performance.

Underwriting profit (loss) is an important measurement used by AIG senior management to evaluate the performance of its property and casualty insurance operations and is a standard measure of performance used in the insurance industry. Further, the equity analysts who follow AIG exclude the realized capital transactions in their analyses for the same reason and consistently request that AIG provide the non-GAAP information.

Life and retirement services production (premiums, deposits and other considerations), gross premiums written, net premiums written and loss, expense and combined ratios are presented in accordance with accounting principles prescribed or permitted by insurance regulatory authorities because these are standard measures of performance used in the insurance industry and thus allow for more meaningful comparisons with AIG’s insurance competitors.