AIG 2008 Annual Report Download - page 161

General
Insurance
Life
Insurance &
Retirement
Services
Financial
Services
Asset
Management Other Total
(In millions)
Equity securities: . . . . . . . . . . . . . . . . . . . . . . . . . —
Common stocks available for sale, at fair value . . 3,497 4,988 8 299 16 8,808
Common and preferred stocks trading, at fair
value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 285 11,312 737 1 —12,335
Mortgage and other loans receivable, net of
allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 27,709 367 6,558 38 34,687
Finance receivables, net of allowance . . . . . . . . . . . — 5 30,944 ——30,949
Flight equipment primarily under operating leases,
net of accumulated depreciation . . . . . . . . . . . . . — — 43,395 ——43,395
Other invested assets . . . . . . . . . . . . . . . . . . . . . . 11,763 17,184 1,247 14,540 7,244 51,978
Securities purchased under agreements to resell, at
fair value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 3,960 ——3,960
Short-term investments . . . . . . . . . . . . . . . . . . . . . 10,803 26,554 6,238 2,347 724 46,666
Total Investments* . . . . . . . . . . . . . . . . . . . . . . . . $112,944 $359,926 $115,715 $36,034 $12,293 $636,912
At December 31, 2007
Fixed maturity securities:
Bonds available for sale, at fair value . . . . . . . . . $ 74,057 $294,162 $ 41,703 $27,753 $ — $437,675
Bonds held to maturity, at amortized cost . . . . . . 21,355 1 — 225 — 21,581
Bond trading securities, at fair value . . . . . . . . . . — 9,948 276 34 — 10,258
Securities lending invested collateral, at fair
value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,031 57,471 148 13,012 — 75,662
Equity securities:
Common stocks available for sale, at fair value . . 7,484 12,093 10 609 76 20,272
Common and preferred stocks trading, at fair
value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321 21,026 3,921 29 — 25,297
Mortgage and other loans receivable, net of
allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 24,851 1,365 7,442 56 33,727
Finance receivables, net of allowance . . . . . . . . . . . — 5 31,229 — — 31,234
Flight equipment primarily under operating leases,
net of accumulated depreciation . . . . . . . . . . . . . — — 41,984 — — 41,984
Other invested assets . . . . . . . . . . . . . . . . . . . . . . 12,467 19,031 3,663 17,327 6,989 59,477
Short-term investments:
Securities purchased under agreements to resell,
at fair value . . . . . . . . . . . . . . . . . . . . . . . . . — — 20,950 — — 20,950
Other short-term investments . . . . . . . . . . . . . . . 7,356 25,236 12,249 4,919 1,591 51,351
Total Investments* . . . . . . . . . . . . . . . . . . . . . . . . $128,084 $463,824 $157,498 $71,350 $ 8,712 $829,468
*At December 31, 2008, approximately 54 percent and 46 percent of investments were held by domestic and
foreign entities, respectively. At December 31, 2007, approximately 63 percent and 37 percent of investments
were held by domestic and foreign investments, respectively.
Investment Strategy
AIG’s investment strategies are tailored to the specific business needs of each operating unit. The investment
objectives are driven by the business model for each of the businesses: General Insurance, Life Insurance,
Retirement Services and Asset Management’s Spread-Based Investment business. The primary objectives are
liquidity, preservation of capital, growth of surplus and generation of investment income to support the insurance
AIG 2008 Form 10-K 155
American International Group, Inc., and Subsidiaries