AIG 2008 Annual Report Download - page 175

Other-than-temporary severity-related impairment charges by type of security and credit rating were
as follows:
Rating: RMBS CDO CMBS
Financial
Institutions
Other
Securities Total
(In millions)
December 31, 2008*
Fixed Maturities:
AAA........................... $ 8,832 $ 369 $3,684 $ 66 $ 149 $13,100
AA............................ 3,139 625 987 346 58 5,155
A ............................. 1,162 1,490 1,194 1,074 138 5,058
BBB and below ................... 1,251 590 327 640 497 3,305
Nonrated . . . ..................... — 41 —15 171 227
Equities .......................... — — — 521 1,780 2,301
Total ............................. $14,384 $3,115 $6,192 $2,662 $2,793 $29,146
December 31, 2007*
Fixed Maturities:
AAA........................... $ 168 $ 621 $ — $ — $ — $ 789
AA............................ 870 53 6 — — 929
A ............................. 66 32 77 — — 175
BBB and below ................... 28 — 52 — — 80
Nonrated . . . ..................... — — — — 227 227
Total ............................. $ 1,132 $ 706 $ 135 $ — $ 227 $ 2,200
* Ratings are as of the date of the impairment charge.
Financial institutions industry other-than-temporary impairment charges by industry classification
were, at December 31, 2008, as follows:
Severity
Lack of Intent to
Hold to Recovery
Currency
Decline
Issuer-Specific
Credit Events Total
(In millions)
Industry Classification:
Banking .......................... $1,568 $1,270 $267 $ 526 $3,631
Brokerage......................... 186 172 26 1,356 1,740
Insurance ......................... 262 177 30 88 557
Other ............................ 646 511 21 167 1,345
Total .............................. $2,662 $2,130 $344 $2,137 $7,273
Financial institutions other-than-temporary impairment charges were immaterial in 2007 and 2006.
No other-than-temporary impairment charge with respect to any one single credit was significant to AIG’s
consolidated financial condition or results of operations, and no individual other-than-temporary impairment
charge exceeded three percent of consolidated shareholders equity in 2008.
In periods subsequent to the recognition of an other-than-temporary impairment charge for fixed maturity
securities, that is not credit or foreign exchange related, AIG generally accretes into income the discount or
amortizes the reduced premium resulting from the reduction in cost basis over the remaining life of the security. The
amount of accretion recognized in earnings for 2008 was $634 million.
AIG 2008 Form 10-K 169
American International Group, Inc., and Subsidiaries