AIG 2005 Annual Report Download - page 152

Notes to Consolidated Financial Statements Continued
The amortized cost and estimated market value of investments
8. Investment Information
in fixed maturities held to maturity and carried at amortized
Continued
cost at December 31, 2005 and December 31, 2004 follows:
(c) Investment Gains and Losses: The realized capital gains
(losses) and increase (decrease) in unrealized appreciation of Gross Gross Estimated
investments were as follows: Amortized Unrealized Unrealized Market
(in millions) Cost Gains Losses Value
Years Ended December 31, 2005
(in millions) 2005 2004 2003 Fixed maturities:
Realized capital gains (losses) Bonds – States*$ 21,528 $ 552 $ 33 $ 22,047
on investments: Total $ 21,528 $ 552 $ 33 $ 22,047
Fixed maturities $ (108) $ 178 $ (222)
2004
Equity securities 588 541 (495) Fixed maturities:
Other invested assets (139) (675) 275 Bonds – States*$18,294 $510 $13 $18,791
Realized capital gains (losses) $ 341 $ 44 $ (442) Total $18,294 $510 $13 $18,791
Increase (decrease) in * Including municipalities and political subdivisions.
unrealized appreciation of
investments: The amortized cost and estimated market value of bonds
Fixed maturities $ (4,656) $1,436 $2,493 available for sale and carried at market value at Decem-
Equity securities 850 445 1,354 ber 31, 2005 and 2004 were as follows:
Other invested assets 229 (13) 312
Increase (decrease) in Gross Gross Estimated
Amortized Unrealized Unrealized Market
unrealized appreciation $ (3,577) $1,868 $4,159 (in millions) Cost Gains Losses Value
2005
The gross gains and gross losses realized on available for
Bonds:
sale securities were as follows:
U.S. government
(a)
$ 7,848 $ 124 $ 94 $ 7,878
States
(b)
49,116 853 315 49,654
Gross Gross
Realized Realized
Foreign governments 57,509 4,881 665 61,725
(in millions) Gains Losses
All other corporate 235,139 7,770 2,650 240,259
2005
Total bonds $ 349,612 $ 13,628 $ 3,724 $ 359,516
Bonds $ 1,586 $ 1,694
2004
Common stocks 930 409
Bonds:
Preferred stocks 101 34
U.S. government
(a)
$ 8,055 $ 156 $ 37 $ 8,174
States
(b)
37,204 1,175 83 38,296
Total $ 2,617 $ 2,137
Foreign
2004
governments 64,374 3,715 446 67,643
Bonds $1,560 $1,382
All other corporate 220,205 11,089 1,008 230,286
Common stocks 774 379
Total bonds $329,838 $16,135 $1,574 $344,399
Preferred stocks 173 27
(a) Including U.S. government agencies and authorities.
Total $2,507 $1,788
(b) Including municipalities and political subdivisions.
2003
Bonds $2,470 $2,692 The amortized cost and estimated market values of fixed
Common stocks 465 827 maturities available for sale at December 31, 2005, by
Preferred stocks 139 272 contractual maturity, are shown below. Actual maturities may
Total $3,074 $3,791 differ from contractual maturities because certain borrowers
have the right to call or prepay certain obligations with or
(d) Market Value of Fixed Maturities and Unrealized Apprecia- without call or prepayment penalties.
tion of Investments: At December 31, 2005 and 2004, the
balance of the unrealized appreciation of investments in equity Estimated
Amortized Market
securities (before applicable taxes) included gross gains of (in millions) Cost Value
approximately $2.5 billion and $1.6 billion, and gross losses of
Fixed maturities available for sale:
approximately $257 million and $256 million, respectively.
Due in one year or less $ 10,417 $ 10,991
Due after one year through five years 68,520 70,108
Due after five years through ten years 128,353 130,446
Due after ten years 142,322 147,971
Total available for sale $349,612 $359,516
100 AIG m Form 10-K