AIG 2015 Annual Report Download - page 123

ITEM 7 / INVESTMENTS
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(a) Includes certain RMBS that had experienced deterioration in credit quality since their origination. See Note 5 to the Consolidated Financial Statements for
additional discussion on PCI Securities.
(b) The weighted average expected life was six years at both December 31, 2015 and December 31, 2014.
Our underwriting practices for investing in RMBS, other asset-backed securities and CDOs take into consideration the quality
of the originator, the manager, the servicer, security credit ratings, underlying characteristics of the mortgages, borrower
characteristics, and the level of credit enhancement in the transaction.
Investments in CMBS
The following table presents our CMBS available for sale investments:
Fair Value at Fair Value at
December 31, December 31,
(in millions) 2015 2014
CMBS (traditional) $ 11,132 $ 11,265
Agency 1,622 1,372
Other 817 248
Tot al $ 13,571 $ 12,885
The following table presents the fair value of our CMBS available for sale investments by rating agency designation
and by vintage year:
Below
Investment
(in millions) AAA AA A BBB Grade Non-Rated Total
December 31, 2015
Year:
2015 $824 $404 $465 $240 $- $ - $ 1,933
2014 1,604 183 11 -- -1,798
2013 2,611 433 89 54 - -3,187
2012 737 60 31 83 - 10 921
2011 1,015 25 31 21 - -1,092
2010 and prior 921 700 635 738 1,646 -4,640
Tot al $7,712 $1,805 $1,262 $1,136 $1,646 $ 10 $13,571
December 31, 2014
Year:
2014 $ 1,570 $ 183 $ 11 $ - $ - $ - $ 1,764
2013 2,684 442 91 58 - - 3,275
2012 1,158 61 28 92 - 12 1,351
2011 1,022 20 37 21 - - 1,100
2010 and prior 1,119 626 814 843 1,993 - 5,395
Total $ 7,553 $ 1,332 $ 981 $ 1,014 $ 1,993 $ 12 $ 12,885