AIG 2009 Annual Report Download - page 265

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American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(c) Net Realized Capital Gains and Losses
The following table presents the components of Net realized capital gains (losses) and the increase (decrease) in
unrealized appreciation of AIG’s available for sale investments:
Years Ended December 31,
(in millions) 2009 2008 2007
Sales of fixed maturity securities $ 956 $ (5,159) $ (429)
Sales of equity securities 390 104 917
Sales of real estate and loans (10) 238 172
Other-than-temporary impairments:
Total other-than-temporary impairments on available for sale securities (7,008) (48,146) (3,692)
Portion of other-than-temporary impairments on available for sale fixed maturity securities
recognized in Accumulated other comprehensive income (loss) 242 --
Net other-than-temporary impairments on available for sale securities recognized in net income
(loss) (6,766) (48,146) (3,692)
Other-than-temporary impairments on all other investments (1,013) (503) (261)
Provision for loan losses (708) --
Foreign exchange transactions (1,256) 3,166 (672)
Derivative instruments 1,749 (3,420) 16
Other (196) 1,015 448
Total $ (6,854) $(52,705) $(3,501)
Increase (decrease) in unrealized appreciation of investments:
Fixed maturities $30,330 $(10,896) $(5,097)
Equity securities 2,446 (4,231) 2,323
Other investments (3,588) 316 (4,167)
Activity of businesses held for sale 751 845 (1,174)
Increase (decrease) in unrealized appreciation $29,939 $(13,966) $(8,115)
Net unrealized gains (losses) included in the Consolidated Statement of Income from investment securities
classified as trading securities in 2009, 2008 and 2007 were $5.8 billion, $(8.1) billion and $1.1 billion, respectively.
The following table presents the gross realized gains and gross realized losses from sales of AIG’s available for sale
securities:
Years Ended December 31,
2009 2008 2007
Gross Gross Gross Gross Gross Gross
Realized Realized Realized Realized Realized Realized
(in millions) Gains Losses Gains Losses Gains Losses
Fixed maturities $ 1,780 $ 824 $ 6,617 $ 11,776 $ 645 $ 1,074
Equity securities 609 219 1,199 1,095 1,116 199
Total $ 2,389 $ 1,043 $ 7,816 $ 12,871 $ 1,761 $ 1,273
For the year ended December 31, 2009, the aggregate fair value of available for sale securities sold was $9.5 billion,
which resulted in a net realized capital loss of $1.0 billion. The average periods of time that securities sold at a loss
during the year ended December 31, 2009 were trading continuously at a price below cost or amortized cost was
approximately six months.
257 AIG 2009 Form 10-K