AIG 2008 Annual Report Download - page 259

At December 31, 2008, the anticipated life insurance premiums required to keep the life settlement contracts in
force, payable in the ensuing twelve months ending December 31, 2009 and the four succeeding years ending
December 31, 2013 are $258 million, $280 million, $279 million, $285 million, and $285 million, respectively.
6. Lending Activities
Mortgages and other loans receivable were as follows:
2008 2007
Years Ended
December 31,
(In millions)
Mortgages — commercial ........................................ $17,161 $17,105
Mortgages — residential* ........................................ 2,271 2,153
Life insurance policy loans ....................................... 9,589 8,099
Collateral, guaranteed, and other commercial loans ..................... 5,874 6,447
Total mortgage and other loans receivable ............................ 34,895 33,804
Allowance for losses ............................................ (208) (77)
Mortgage and other loans receivable, net ............................. $34,687 $33,727
*Primarily consists of foreign mortgage loans.
Mortgage loans and other receivables held for sale were $33 million and $377 million at December 31, 2008
and 2007, respectively.
Finance receivables, net of unearned finance charges, were as follows:
2008 2007
Years Ended
December 31,
(In millions)
Real estate loans ............................................... $20,650 $20,023
Non-real estate loans............................................ 5,763 5,447
Retail sales finance ............................................. 3,417 3,659
Credit card loans............................................... 1,422 1,566
Other loans ................................................... 1,169 1,417
Total finance receivables ......................................... 32,421 32,112
Allowance for losses ............................................ (1,472) (878)
Finance receivables, net ......................................... $30,949 $31,234
Finance receivables held for sale were $960 million and $233 million at December 31, 2008 and 2007,
respectively.
7. Reinsurance
In the ordinary course of business, AIG’s General Insurance and Life Insurance companies place reinsurance
with other insurance companies in order to provide greater diversification of AIG’s business and limit the potential
for losses arising from large risks. In addition, AIG’s General Insurance subsidiaries assume reinsurance from other
insurance companies.
AIG 2008 Form 10-K 253
American International Group, Inc., and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)