AIG 2008 Annual Report Download - page 166

services’ ratings and opinions provide one source of independent perspectives for consideration in the internal
analysis.
A significant portion of the foreign fixed maturity portfolio is rated by Moody’s, S&P or similar foreign rating
services. Rating services are not available in all overseas locations. AIG’s Credit Risk Committee (CRC) closely
reviews the credit quality of the foreign portfolio’s non-rated fixed maturity securities. At December 31, 2008,
approximately 14 percent of the foreign fixed income investments were either rated AAA or, on the basis of AIG’s
internal analysis, were equivalent from a credit standpoint to securities so rated. Approximately five percent were
below investment grade or not rated at that date. Approximately one third of the foreign fixed maturity portfolio is
sovereign fixed maturity securities supporting policy liabilities in the country of issuance.
For additional disclosures on investments, see Note 5 to the Consolidated Financial Statements.
The credit ratings of AIG’s fixed maturity investments were as follows:
2008 2007
At December 31,
Rating
AAA.......................................................... 22% 40%
AA........................................................... 30 27
A ............................................................ 26 18
BBB.......................................................... 16 10
Below investment grade ............................................ 44
Non-rated ...................................................... 21
Total ............................................................ 100% 100%
The industry categories of AIG’s available for sale corporate debt securities, other than those of AIGFP,
were as follows:
2008 2007
At December 31,
Financial institutions:
Money Center /Global Bank Groups................................... 20% 16%
Regional banks — other ............................................ 56
Life insurance ................................................... 45
Securities firms and other finance companies ............................ 46
Insurance non-life ................................................ 52
Regional banks — North America .................................... 34
Other financial institutions .......................................... 13
Utilities.......................................................... 13 11
Communications ................................................... 88
Consumer noncyclical ............................................... 87
Capital goods ..................................................... 66
Consumer cyclical .................................................. 55
Energy .......................................................... 54
Other ........................................................... 13 17
Total* ......................................................... 100% 100%
*At both December 31, 2008 and December 31, 2007, approximately 96 percent of these investments were rated
investment grade.
160 AIG 2008 Form 10-K
American International Group, Inc., and Subsidiaries