AIG 2011 Annual Report Download - page 170

Other-than-temporary impairment charges by type of security and credit rating:
Other Fixed Equities/Other
(in millions) RMBS CDO/ABS CMBS Maturity Invested Assets* Total
December 31, 2011
Rating:
AAA $ 3 $-$- $ 9 $ -$12
AA 24 - - 10 - 34
A7--15 -22
BBB 65- 1 -12
Below investment grade 749 15 150 14 - 928
Non-rated - - - 1 271 272
Total $ 789 $ 20 $ 150 $ 50 $ 271 $ 1,280
December 31, 2010
Rating:
AAA $ 5 $-$- $10 $ -$15
AA 20 - - 3 - 23
A2-1314-29
BBB 47 - 41 10 - 98
Below investment grade 1,207 30 784 108 - 2,129
Non-rated - 9 - 34 702 745
Total $ 1,281 $ 39 $ 838 $ 179 $ 702 $ 3,039
December 31, 2009
Rating:
AAA $ 320 $ 27 $ 17 $ - $ - $ 364
AA 289 20 15 19 - 343
A 254 62 113 195 - 624
BBB 434 271 85 318 - 1,108
Below investment grade 1,569 430 286 581 - 2,866
Non-rated - 31 - 20 1,340 1,391
Total $ 2,866 $ 841 $ 516 $ 1,133 $ 1,340 $ 6,696
* Includes other-than-temporary impairment charges on private equity funds, hedge funds and direct private equity investments.
Determinations of other-than-temporary impairments are based on fundamental credit analyses of individual
securities without regard to rating agency ratings. Based on this analysis, AIG expects to receive cash flows
sufficient to cover the amortized cost of all below investment grade securities for which credit losses were not
recognized.
AIG recorded other-than-temporary impairment charges in 2011, 2010 and 2009 related to:
• securities for which AIG has changed its intent from hold to sell;
• declines due to foreign exchange rates;
• issuer-specific credit events;
• certain structured securities;
• other impairments, including equity securities, private equity funds, hedge funds, direct private equity
investments, aircraft trusts and investments in life settlement contracts; and
• securities that experienced severe market valuation declines.
With respect to the issuer-specific credit events shown above, no other-than-temporary impairment charge with
respect to any one single credit was significant to AIG’s consolidated financial condition or results of operations,
and no individual other-than-temporary impairment charge exceeded 0.2 percent, 0.2 percent and 0.1 percent of
total equity in 2011, 2010 and 2009, respectively.
156 AIG 2011 Form 10-K