AIG 2011 Annual Report Download - page 167

At December 31, 2011, AIG’s equity method investments included a 33 percent interest in AIA with a total
carrying value of $12.4 billion which is recorded in Other invested assets and accounted for under the fair value
option.
The value of the AIA shares will fluctuate until the ultimate disposition by AIG of the AIA shares. The value
of the AIA shares will rise and fall in response to various factors beyond the control of AIG, including the
business and financial performance of AIA. The agreement with the underwriters precludes AIG from entering
into hedging transactions that might protect AIG against fluctuations in the value of one-half of its remaining
interest in AIA through April 18, 2012.
The following table presents investment impairments by type:
Years Ended December 31,
(in millions) 2011 2010 2009
Fixed maturities, available for sale $ 1,009 $ 2,337 $ 5,356
Equity securities, available for sale 37 193 434
Private equity funds and hedge funds 234 509 906
Subtotal $ 1,280 $ 3,039 $ 6,696
Life settlement contracts 312 74 79
Aircraft Trusts(a) 168 --
Real estate(b) 30 622 1,223
Total $ 1,790 $ 3,735 $ 7,998
(a) Aircraft Trusts impairment is recorded in other expenses
(b) Real estate impairment is recorded in other income.
AIG 2011 Form 10-K 153
AIA EQUITY INVESTMENT
IMPAIRMENTS