AIG 2007 Annual Report Download - page 209

American International Group, Inc. and Subsidiaries
3. Investments
Continued
The following table presents the amortized cost and estimated fair values of AIG’s available for sale and held to
maturity fixed maturity securities at December 31, 2007, by contractual maturity. Actual maturities may differ from
contractual maturities because certain borrowers have the right to call or prepay certain obligations with or without
call or prepayment penalties.
Available for Sale Held to Maturity
Amortized Amor tized
(in millions) Cost Fair Value Cost Fair Value
Due in one year or less $ 25,844 $ 25,994 $ 72 $ 69
Due after one year through five years 95,494 97,466 284 277
Due after five years through ten years 121,961 123,196 1,511 1,547
Due after ten years 117,589 120,170 19,714 20,264
Mortgage-backed, asset-backed and collateralized 140,982 134,500 — —
Total available for sale $501,870 $501,326 $21,581 $22,157
AIG’s available for sale securities are recorded on the consolidated balance sheet at December 31, 2007 and 2006 as
follows:
Fair Value
(in millions) 2007 2006
Bonds available for sale $397,372 $386,869
Common stocks available for sale 17,900 13,256
Preferred stocks available for sale 2,370 2,539
Financial Services securities available for sale 40,305 47,205
Securities lending invested collateral 63,649 69,306
Total $521,596 $519,175
(e) Non-Income Producing Invested Assets: At December 31, 2007, non-income producing invested assets were insignificant.
(f) Gross Unrealized Losses and Estimated Fair Values on Investments:
The following table summarizes the cost basis and gross unrealized losses on AIG’s available for sale securities,
aggregated by major investment category and length of time that individual securities have been in a continuous
unrealized loss position, at December 31, 2007 and 2006:
12 Months or less More than 12 Months Total
Unrealized Unrealized Unrealized
(in millions) Cost(a) Losses Cost(a) Losses Cost(a) Losses
2007
Bonds(b) $190,809 $ 9,935 $65,137 $3,226 $255,946 $13,161
Equity securities 4,433 463 — — 4,433 463
Total $195,242 $10,398 $65,137 $3,226 $260,379 $13,624
2006
Bonds(b) $ 69,656 $ 1,257 $84,040 $2,428 $153,696 $ 3,685
Equity securities 2,734 159 — — 2,734 159
Total $ 72,390 $ 1,416 $84,040 $2,428 $156,430 $ 3,844
(a) For bonds, represents amor tized cost.
(b) Primarily relates to the corporate debt category.
At December 31, 2007, AIG held 37,281 and 2,307 of AIG recorded other-than-temporary impairment charges of $4.7
individual bond and stock investments, respectively, that were in billion (including $643 million related to AIGFP recorded in Other
an unrealized loss position, of which 9,930 individual investments income), $944 million and $598 million in 2007, 2006 and 2005,
were in an unrealized loss position for a continuous 12 months or respectively. See Note 1(c) herein for AIG’s other-than-temporary
longer. impairment accounting policy.
AIG 2007 Form 10-K 155