AIG 2005 Annual Report Download - page 154

Notes to Consolidated Financial Statements Continued
8. Investment Information
Continued
The amortized cost and estimated market value of securities available for sale at December 31, 2005 and 2004 were as
follows:
Gross Gross Estimated
Amortized Unrealized Unrealized Market
(in millions) Cost Gains Losses Value
2005
Securities available for sale:
Corporate and bank debt $ 24,496 $ 373 $ 780 $ 24,089
Foreign government obligations 825 5 31 799
Asset-backed and collateralized 3,522 202 42 3,682
Preferred stocks 6,194 13 3 6,204
U.S. government obligations 2,535 209 7 2,737
Total $ 37,572 $ 802 $ 863 $ 37,511
2004
Securities available for sale:
Corporate and bank debt $15,067 $1,492 $ 81 $16,478
Foreign government obligations 1,239 134 2 1,371
Asset-backed and collateralized 4,132 424 1 4,555
Preferred stocks 6,651 38 23 6,666
U.S. government obligations 2,082 78 5 2,155
Total $ 29,171 $ 2,166 $ 112 $ 31,225
The amortized cost and estimated market values of securities 9. Debt Outstanding
available for sale at December 31, 2005, by contractual At December 31, 2005, AIG’s net borrowings were $10.43 bil-
maturity, are shown below. Actual maturities may differ from lion after reflecting amounts not guaranteed by AIG, amounts
contractual maturities because certain borrowers have the that were matched borrowings under AIGFP’s obligations of
right to call or prepay certain obligations with or without call guaranteed investment agreements (GIAs), matched notes and
or prepayment penalties. bonds payable, and liabilities connected to trust preferred
Estimated stock. The following table summarizes borrowings outstanding
Amortized Market at December 31, 2005:
(in millions) Cost Value
Securities available for sale: (in millions)
Due in one year or less $ 5,156 $ 5,066 AIG’s net borrowings $ 10,425
Due after one year through five years 4,582 4,505 Liabilities connected to trust preferred stock 1,391
Due after five years through ten years 3,794 3,646 Borrowings not guaranteed by AIG(a) 52,272
Due after ten years 20,518 20,612 AIGFP:
Asset-backed and collateralized 3,522 3,682 GIAs 20,811
Total securities available for sale $37,572 $37,511 Matched notes and bonds payable 24,950
Total debt 109,849
An insignificant amount of securities available for sale were Commercial paper (9,208)
below investment grade at December 31, 2005. Variable interest entity (VIE) debt(b) (1,350)
(i) Finance Receivables: Finance receivables, net of unearned Total debt, excluding commercial paper and VIE $ 99,291
finance charges, were as follows: (a) Includes commercial paper not guaranteed by AIG.
(b) Represents borrowings of VIEs required to be consolidated under the
Years Ended December 31, provisions of FIN 46R.
(in millions) 2005 2004
Real estate loans $20,407 $17,069
Non-real estate loans 3,831 3,462
Credit card loans 1,498 1,226
Retail sales finance 2,522 2,254
Other loans 407 134
Total finance receivables 28,665 24,145
Allowance for losses (670) (571)
Finance receivables, net $27,995 $23,574
102 AIG m Form 10-K