AIG 2012 Annual Report Download - page 320

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representations and warranties that extend to the expiration of the statute of limitations and are subject to an
aggregate deductible of $50 million.
In connection with the indemnity obligations described above, as of December 31, 2012, approximately $567 million
of proceeds from the sale of ALICO were on deposit in an escrow arrangement. Under the terms of a letter
agreement between MetLife and us entered into on April 26, 2012, $44 million was released to us on April 30, 2012
which represented funds that were initially held back from the release of escrow to us on November 1, 2011. Under
the terms of a letter agreement between MetLife and us entered into on July 13, 2012, $950 million was released to
us on August 31, 2012 instead of November 1, 2012 as originally provided under the ALICO stock purchase
agreement. An additional $33 million was released on November 8, 2012. The amount required to be held in escrow
declines to zero in May 2013, although indemnification claims then pending will reduce the amount that can be
released to us.
Other
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• See Note 11 herein for commitments and guarantees associated with VIEs.
• See Note 12 herein for disclosures on derivatives.
• See Note 27 herein for additional disclosures on guarantees of outstanding debt.
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AIG 2012 Form 10-K 303
ITEM 8 / NOTE 16. CONTINGENCIES, COMMITMENTS AND GUARANTEES