AIG 2015 Annual Report Download - page 317

ITEM 8 / NOTE 18. STATUTORY FINANCIAL DATA AND RESTRICTIONS
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in any 12-month period, exceed the lesser of 10 percent of such company’s statutory policyholders’ surplus or 100 percent of
its “adjusted net investment income,” for the previous year, as defined. Generally, less severe restrictions applicable to both
property casualty and life insurance companies exist in most of the other states in which our insurance subsidiaries are
domiciled. Under the laws of many states, an insurer may pay a dividend without prior approval of the insurance regulator
when the amount of the dividend is below certain regulatory thresholds. Other foreign jurisdictions may restrict the ability of our
foreign insurance subsidiaries to pay dividends. Various other regulatory restrictions also limit cash loans and advances to us
by our subsidiaries.
Largely as a result of these restrictions, approximately $41.6 billion of the statutory capital and surplus of our consolidated
insurance subsidiaries were restricted from transfer to AIG Parent without prior approval of state insurance regulators at
December 31, 2015.
To our knowledge, no AIG insurance company is currently on any regulatory or similar “watch list” with regard to solvency.
Parent Company Dividend Restrictions
At December 31, 2015, our ability to pay dividends is not subject to any significant contractual restrictions, but remains subject
to regulatory restrictions. See Note 16 herein for additional information about our ability to pay dividends to our shareholders.
19. SHARE-BASED AND OTHER COMPENSATION PLANS
The following table presents our share-based compensation expense:
Years Ended December 31,
(in millions) 2015
2014 2013
Share-based compensation expense - pre-tax* $ 365 $349 $457
Share-based compensation expense - after tax
237 227 297
* For the years ended December 31, 2015, 2014 and 2013, $19 million, $86 million and $315 million, respectively, of pre-tax compensation expense was
attributed to unsettled liability-classified awards, the values of which are based on our share price at the reporting date. Our share price was $61.97, $56.01 and
$51.05 at December 31, 2015, 2014 and 2013, respectively. In addition, we recognized $147 million, $120 million and $101 million for immediately vested stock-
settled awards issued to retirement eligible employees in 2015, 2014 and 2013, respectively.
Employee Plans
The Company grants annual Long Term Incentive (LTI) awards under the 2013 Long Term Incentive Plan (2013 LTIP), which is
governed by the AIG 2013 Omnibus Incentive Plan (2013 Plan). The 2013 Plan replaced the AIG 2010 Stock Incentive Plan
(2010 Plan) as of May 15, 2013 but does not affect the terms and conditions of any award issued under the 2010 Plan. The
2013 Plan is currently the only plan under which share-settled awards can be made.
As of December 31, 2015, the Starr International Company Inc. Deferred Compensation Profit Participation Plans (the SICO
Plans) are the only legacy plans for which awards remain unvested.
Our share-settled awards are settled with previously acquired shares held in AIG’s treasury. Share awards made by SICO are
settled by SICO.
AIG 2013 Omnibus Incentive Plan
The 2013 Plan was adopted at the 2013 Annual Meeting of Shareholders and provides for the grants of share-based awards to
our employees and non-employee directors. The total number of shares that may be granted under the 2013 Plan (the
reserve) is the sum of 1) 45 million shares of AIG Common Stock, plus 2) the number of authorized shares that remained
available for issuance under the 2010 Plan when the 2013 Plan became effective, plus 3) the number of shares of AIG