AIG 2013 Annual Report Download - page 177

Other-than-temporary impairment charges by investment type and credit rating:
Rating:
AAA
AA
A
BBB
Below investment grade
Non-rated
Total
For the Year Ended December 31, 2012
Rating:
AAA $ – $ –$ – $2 $ –$ 2
AA 10 – – – – 10
A–2–4–6
BBB – – – – – –
Below investment grade 432 5 208 26 – 671
Non-rated – – – 34 444 478
Total $ 442 $ 7 $ 208 $ 66 $ 444 $ 1,167
For the Year Ended December 31, 2011
Rating:
AAA $ 3 $ – $ – $ 9 $ – $ 12
AA 24 – – 10 – 34
A 7 – – 15 – 22
BBB 6 5 – 1 – 12
Below investment grade 749 15 150 14 – 928
Non-rated – – – 1 271 272
Total $ 789 $ 20 $ 150 $ 50 $ 271 $ 1,280
* Includes other-than-temporary impairment charges on private equity funds, hedge funds and direct private equity investments.
We recorded other-than-temporary impairment charges in the years ended December 31, 2013, 2012 and 2011
related to:
• issuer-specific credit events;
• securities for which we have changed our intent from hold to sell;
• declines due to foreign exchange rates;
• adverse changes in estimated cash flows on certain structured securities; and
• securities that experienced severe market valuation declines;
In addition, impairments are also recorded on real estate and investments in life settlements.
There was no significant impact to our consolidated financial condition or results of operations from
other-than-temporary impairment charges for any one single credit. Also, no individual other-than-temporary
impairment charge exceeded 0.02 percent, 0.11 percent and 0.20 percent of total equity at December 31, 2013, 2012
or 2011, respectively.
In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed
maturity securities that is not foreign-exchange related, we generally prospectively accrete into earnings the
difference between the new amortized cost and the expected undiscounted recovery value over the remaining life of
the security. The accretion that was recognized for these securities in earnings was $774 million in 2013,
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AIG 2013 Form 10-K 159
ITEM 7 / INVESTMENTS
Other Fixed Equities/Other
(in millions) RMBS CDO/ABS CMBS Maturity Invested Assets* Total
For the Year Ended December 31, 2013
$1 $ –$ – $ – $ –$ 1
2–– – –2
1–– – –1
1–– 44 –45
39 5 50 29 – 123
– – – 1 154 155
$ 44 $ 5 $ 50 $ 74 $ 154 $ 327
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