AIG 2013 Annual Report Download - page 339

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with
investing in these securities. Based on our investment strategy, we had no significant concentrations of risks at
December 31, 2013.
The U.S. pension plan holds a group annuity contract with U.S. Life, one of our subsidiaries, which totaled
$27 million and $29 million at December 31, 2013 and 2012, respectively.
The following table presents changes in our U.S. and non-U.S. Level 3 plan assets measured at fair value:
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade
Hedge funds
Private equity
Total
Non-U.S. Plan Assets:
Other fixed maturity securities
Insurance contracts
Total
U.S. Plan Assets:
Fixed maturity securities
U.S. investment grade $ 1 $ 5 $ 9 $ (29) $ – $ (10) $ 36 $ (1) $ 11 $ 1
Mortgage and other asset-
backed securities 36 – – – – – – (36) – –
Private equity 223 9 23 (26) – – 4 (8) 225 (14)
Total $ 260 $ 14 $ 32 $ (55) $ – $ (10) $ 40 $ (45) $ 236 $ (13)
Non-U.S. Plan Assets:
Other fixed maturity securities $ 1 $ – $ – $ (1) $ – $ – $ 27 $ – $ 27 $ –
Insurance contracts 39 2 2 – – – – – 43 –
Total $ 40 $ 2 $ 2 $ (1) $ – $ – $ 27 $ – $ 70 $ –
Our policy is to record transfers of assets between Level 1 and Level 2 at their fair values as of the end of each
reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1
when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are
transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. We
had no material transfers between Level 1 and Level 2 during the years ended December 31, 2013 and 2012.
We record transfers of assets into or out of Level 3 at their fair values as of the end of each reporting period,
consistent with the date of the determination of fair value. During the year ended December 31, 2013, we transferred
Changes in Level 3 fair value measurements
Transfers of Level 1 and Level 2 Assets
Transfers of Level 3 Assets
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AIG 2013 Form 10-K 321
ITEM 8 / NOTE 21. EMPLOYEE BENEFITS
Changes in
Unrealized
Net Gains
Realized and (Losses) on
Balance Unrealized Balance Instruments
At December 31, 2013 Beginning Gains Transfers Transfers at End Held at
(in millions) of year (Losses) Purchases Sales Issuances Settlements In Out of year End of year
$ 11 $ (2) $ 2 $ (2) $ – $ – $ – $ – $ 9 $ (3)
––––––35–35–
225 7 44 (26) – (2) – – 248 (14)
$ 236 $ 5 $ 46 $ (28) $ – $ (2) $ 35 $ – $ 292 $ (17)
$ 27 $ 1 $ – $ (8) $ – $ – $ – $ (1) $ 19 $ –
43 3 1 (1) – – – (2) 44 –
$ 70 $ 4 $ 1 $ (9) $ – $ – $ – $ (3) $ 63 $ –
Changes in
Unrealized
Net Gains
Realized and (Losses) on
Balance Unrealized Balance Instruments
At December 31, 2012 Beginning Gains Transfers Transfers at End Held at
(in millions) of year (Losses) Purchases Sales Issuances Settlements In Out of year End of year
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