AIG 2009 Annual Report Download - page 252

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Counterparty Cash
(in millions) Level 1 Level 2 Level 3 Netting(a) Collateral(b) Total
Liabilities:
Policyholder contract deposits $ - $ - $ 5,214 $ - $ - $ 5,214
Securities sold under agreements to repurchase - 3,221 - - - 3,221
Securities and spot commodities sold but not yet purchased 159 871 - - - 1,030
Unrealized loss on swaps, options and forward transactions(e) 8 24,789 7,826 (19,054) (8,166) 5,403
Trust deposits and deposits due to banks and other
depositors -15 - - - 15
Federal Reserve Bank of New York Commercial Paper
Funding Facility - 2,742 - - - 2,742
Other long-term debt - 12,314 881 - - 13,195
Total $ 167 $ 43,952 $13,921 $ (19,054) $ (8,166) $ 30,820
At December 31, 2008
Assets:
Bonds available for sale $ 414 $344,237 $18,391 $ - $ - $363,042
Bond trading securities 781 29,480 6,987 - - 37,248
Securities lending invested collateral(c) - 2,967 435 - - 3,402
Common and preferred stock available for sale 7,282 1,415 111 - - 8,808
Common and preferred stock trading 6,611 60 3 - - 6,674
Mortgage and other loans receivable - 131 - - - 131
Other invested assets(d) 6,441 7,248 11,168 - - 24,857
Unrealized gain on swaps, options and forward transactions 223 90,998 3,865 (74,217) (7,096) 13,773
Securities purchased under agreements to resell - 3,960 - - - 3,960
Short-term investments 3,247 16,069 - - - 19,316
Separate account assets 47,902 2,410 830 - - 51,142
Other assets - 44 325 - - 369
Total $72,901 $499,019 $42,115 $ (74,217) $ (7,096) $532,722
Liabilities:
Policyholder contract deposits $ - $ - $ 5,458 $ - $ - $ 5,458
Securities sold under agreements to repurchase - 4,423 85 - - 4,508
Securities and spot commodities sold but not yet purchased 1,124 1,569 - - - 2,693
Unrealized loss on swaps, options and forward transactions(e) 1 85,255 14,435 (74,217) (19,236) 6,238
Trust deposits and deposits due to banks and other
depositors - 30 - - - 30
Federal Reserve Bank of New York Commercial Paper
Funding Facility - 6,802 - - - 6,802
Other long-term debt - 15,448 1,147 - - 16,595
Other liabilities - 1,355 - - - 1,355
Total $ 1,125 $114,882 $21,125 $ (74,217) $ (19,236) $ 43,679
(a) Represents netting of derivative exposures covered by a qualifying master netting agreement.
(b) Represents cash collateral posted and received. Securities collateral posted for derivative transactions that is reflected in Fixed maturity securities in
the Consolidated Balance Sheet, and collateral received, not reflected in the Consolidated Balance Sheet, were $1.6 billion and $289 million,
respectively, at December 31, 2009 and $4.2 billion and $1.6 billion, respectively, at December 31, 2008.
(c) Amounts exclude short-term investments that are carried at cost, which approximates fair value of $188 million and $442 million at December 31,
2009 and 2008, respectively.
(d) Approximately 6 percent and 15 percent of the fair value of the total assets recorded as Level 3 relates to various private equity, real estate, hedge
fund and fund-of-funds investments that are consolidated by AIG at December 31, 2009 and 2008, respectively. AIG’s ownership in these funds
represented 71.1 percent, or $1.6 billion, of Level 3 assets at December 31, 2009 and 27.6 percent, or $1.7 billion, of Level 3 assets at December 31,
2008. AIG’s percentage ownership in these investments increased at December 31, 2009 due to the reclassification of certain investments to Assets of
businesses held for sale.
(e) Included in Level 3 is the fair value derivative liability of $4.8 billion and $9.0 billion at December 31, 2009 and 2008, respectively, on the AIGFP
super senior credit default swap portfolio.
AIG 2009 Form 10-K 244