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American International Group, Inc., and Subsidiaries

Exhibit 12

Computation of Ratios of Earnings to Fixed Charges

Years Ended December 31,

(in millions, except ratios) 2009 2008 2007 2006 2005

Earnings:

Pre-tax income (loss)(a):$(13,331) $(106,555) $ 8,097 $20,981 $14,806

Add – Fixed charges 16,592 20,456 11,470 9,062 7,663

Adjusted Pre-tax income (loss) $ 3,261 (86,099) 19,567 30,043 22,469

Fixed charges:

Interest expense $ 15,136 $ 17,665 $ 4,553 $ 3,715 $ 2,704

Portion of rent expense representing interest 244 299 257 219 199

Interest credited to policy and contract holders 1,212 2,492 6,660 5,128 4,760

Total fixed charges $ 16,592 $ 20,456 $11,470 $ 9,062 $ 7,663

Preferred stock dividend requirements $ 1,295 $400$-$-$-

Total fixed charges and preferred stock dividend requirements $ 17,887 $ 20,856 $11,470 $ 9,062 $ 7,663

Total fixed charges, excluding interest credited to policy and contract

holders $ 15,380 $ 17,964 $ 4,810 $ 3,934 $ 2,903

Ratio of earnings to fixed charges:

Ratio n/a n/a 1.71 3.32 2.93

Coverage deficiency (13,331) (106,555) n/a n/a n/a

Ratio of earnings to fixed charges and preferred stock dividends:

Ratio n/a n/a 1.71 3.32 2.93

Coverage deficiency (14,626) (106,955) n/a n/a n/a

Ratio of earnings to fixed charges, excluding interest credited to policy

and contract holders(b):

Ratio n/a n/a 4.07 7.64 7.74

Coverage deficiency (12,119) (104,063) n/a n/a n/a

(a) From continuing operations, excluding undistributed earnings (loss) from equity method investments and capitalized interest.

(b) The Ratio of earnings to fixed charges excluding interest credited to policy and contract holders removes interest credited to guaranteed investment

contract (GIC) policyholders and guaranteed investment agreement (GIA) contract holders. Such interest expenses are also removed from earnings

used in this calculation. GICs and GIAs are entered into by AIG’s insurance subsidiaries, principally SunAmerica Life Insurance Company and

AIG Financial Products Corp. and its subsidiaries, respectively. The proceeds from GICs and GIAs are invested in a diversified portfolio of

securities, primarily investment grade bonds. The assets acquired yield rates greater than the rates on the related policyholders obligation or contract,

with the intent of earning a profit from the spread.

AIG 2009 Form 10-K 352