AIG 2015 Annual Report Download - page 130

ITEM 7 / INVESTMENTS
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130
Change in Unrealized Gains and Losses on Investments
The change in net unrealized gains and losses on investments in 2015 was primarily attributable to decreases in the fair value
of fixed maturity securities. For 2015, net unrealized gains related to fixed maturity and equity securities decreased by
$10.2 billion due primarily to the rise in rates, widening of credit spreads, and the sale of equity securities.
The change in net unrealized gains and losses on investments in 2014 was primarily attributable to increases in the fair value
of fixed maturity securities. For 2014, net unrealized gains related to fixed maturity and equity securities increased by
$7.3 billion due to a decrease in interest rates on investment grade fixed maturity securities, partially offset by the widening of
spreads.
See also Note 5, Investments to the Consolidated Financial Statements for further discussion of our investment portfolio.
Insurance Reserves
The following section provides discussion of insurance reserves for both the Non-Life Insurance Companies and the Life
Insurance Companies, including Eaglestone Reinsurance Company, which is reported in Corporate and Other.
Non-Life Insurance Companies
The following section provides discussion of the consolidated liability for unpaid losses and loss adjustment expenses for the
Non-Life Insurance Companies.
The following table presents the components of AIG’s gross loss reserves by major lines of business on a U.S.
statutory basis(a):
At December 31,
(in millions) 2015 2014(b)
Other liability occurrence (including asbestos and environmental) $ 24,856 $ 24,988
Workers' compensation (net of discount) 14,978 16,014
Other liability claims made 14,006 13,632
Property 5,823 6,350
Auto liability 4,692 4,814
Accident and health 1,783 1,972
Products liability 1,681 1,678
Medical malpractice 1,603 1,520
Aircraft 1,286 1,340
Mortgage guaranty / credit 733 1,008
Other 3,501 3,944
Tot al $ 74,942 $ 77,260
Total U.S. & Canada $ 58,890 $ 58,729
Total International (c) $ 16,052 $ 18,531
(a) Presented by lines of business pursuant to statutory reporting requirements as prescribed by the NAIC.
(b) 2014 reflects the reclassification of International reserves to major lines of business.
(c) The decrease was primarily the effect of foreign exchange on gross reserves, a payment on a large loss, and the net of other claim payments and reserve
movements.