AIG 2013 Annual Report Download - page 337

The following table presents the asset allocation percentage by major asset class for the U.S. qualified plan
and the target allocation:
Asset class:
Equity securities 43% 52%
Fixed maturity securities 28% 26%
Other investments 29% 22%
Total 100% 100%
The expected long-term rate of return for the plan was 7.25 percent for both 2013 and 2012. The expected rate of
return is an aggregation of expected returns within each asset class category and incorporates the current and target
asset allocations. The combination of the expected asset return and any contributions made by us are expected to
maintain the plan’s ability to meet all required benefit obligations. The expected asset return for each asset class was
developed based on an approach that considers key fundamental drivers of the asset class returns in addition to
historical returns, current market conditions, asset volatility and the expectations for future market returns.
The assets of the non-U.S. pension plans are held in various trusts in multiple countries and are invested primarily in
equities and fixed maturity securities to maximize the long-term return on assets for a given level of risk.
The following table presents the asset allocation percentage by major asset class for Non-U.S. pension plans
and the target allocation:
Asset class:
Equity securities 34% 36%
Fixed maturity securities 44% 43%
Other investments 11% 6%
Cash and cash equivalents 11% 15%
Total 100% 100%
The assets of AIG’s Japan pension plans represent approximately 60 percent and 66 percent of total non-U.S. assets
at December 31, 2013 and 2012 respectively. The expected long term rate of return was 1.15 percent and
1.76 percent, for 2013 and 2012, respectively, and is evaluated by the Japanese Pension Investment Committee on
a quarterly and annually basis along with various investment managers, and is revised to achieve the optimal
allocation to meet targeted funding levels if necessary. In addition, the funding policy is revised in accordance with
local regulation every five years.
The expected weighted average long-term rate of return for all our non-U.S. pension plans was 2.60 percent and
2.91 percent for the years ended December 31, 2013 and 2012, respectively. It is an aggregation of expected returns
within each asset class that was generally developed based on the building block approach that considers historical
returns, current market conditions, asset volatility and the expectations for future market returns.
Non-U.S. Pension Plans
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AIG 2013 Form 10-K 319
ITEM 8 / NOTE 21. EMPLOYEE BENEFITS
Target Actual Actual
At December 31, 2014 2013 2012
56%
25%
19%
100%
Target Actual Actual
At December 31, 2014 2013 2012
45%
37%
6%
12%
100%
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