AIG 2014 Annual Report Download - page 136

ITEM 7 / INVESTMENTS
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119
Impairments
The following table presents impairments by investment type:
Years Ended December 31,
(in millions) 2014 2013 2012
Other-than-temporary Impairments:
Fixed maturity securities, available for sale $180 $ 173 $ 723
Equity securities, available for sale 37 14 106
Private equity funds and hedge funds 30 45 221
Subtotal 247 232 1,050
Other impairments:
Investments in life settlements 201 971 309
Other investments 126 112 151
Real estate 8 19 7
Tota l $582 $ 1,334 $ 1,517
Other-Than-Temporary Impairments
To determine other-than-temporary impairments, we use fundamental credit analyses of individual securities without regard to
rating agency ratings. Based on this analysis, we expect to receive cash flows sufficient to cover the amortized cost of all
below investment grade securities for which credit impairments were not recognized.
The following tables present other-than-temporary impairment charges recorded in earnings on fixed maturity
securities, equity securities, private equity funds and hedge funds.
Other-than-temporary impairment charges by reportable segment and impairment type:
Non-Life Life Corporate
Insurance Insurance and Other
(in millions) Companies Companies Operations Total
For the Year Ended December 31, 2014
Impairment Type:
Severity $ 3 $ - $ - $ 3
Change in intent 832 -40
Foreign currency declines 910 -19
Issuer-specific credit events 60 109 -169
Adverse projected cash flows 511 -16
Tota l $85 $162 $ - $ 247
For the Year Ended December 31, 2013
Impairment Type:
Severity $ 6 $ - $ - $ 6
Change in intent 1 45 2 48
Foreign currency declines 1 - - 1
Issuer-specific credit events 43 127 - 170
Adverse projected cash flows 1 6 - 7
Total $ 52 $ 178 $ 2 $ 232
For the Year Ended December 31, 2012
Impairment Type:
Severity $ 35 $ 9 $ - $ 44
Change in intent 4 20 38 62
Foreign currency declines 8 - - 8
Issuer-specific credit events 324 580 27 931
Adverse projected cash flows 1 4 - 5
Total $ 372 $ 613 $ 65 $ 1,050