AIG 2009 Annual Report Download - page 271

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table presents further information regarding life settlement contracts:
At December 31, 2009
Number of Carrying Face Value
(dollars in millions) Contracts Value (Death Benefits)
Remaining Life Expectancy of Insureds:
0 – 1 year 16 $ 17 $ 36
1 – 2 years 43 31 52
2 – 3 years 97 78 153
3 – 4 years 185 168 343
4 – 5 years 232 251 579
Thereafter 4,764 2,854 15,147
Total 5,337 $3,399 $16,310
At December 31, 2009, the anticipated life insurance premiums required to keep the life settlement contracts in
force, payable in the ensuing twelve months ending December 31, 2010 and the four succeeding years ending
December 31, 2014 are $411 million, $422 million, $432 million, $436 million and $430 million, respectively.
Other Invested Assets — Available for Sale Investments
At December 31, 2009 and 2008, $6.1 billion and $6.8 billion of Other invested assets related to available for sale
investments carried at fair value, with unrealized gains and losses recorded in Accumulated other comprehensive
income (loss), net of deferred taxes, with almost all of the remaining investments being accounted for on the equity
method of accounting. All of the investments are subject to other-than-temporary impairment evaluation (see
Note 1(d) herein). The gross unrealized loss on the investments accounted for as available for sale at December 31,
2009 was $229 million, the majority of which represents investments that have been in a continuous unrealized loss
position for less than 12 months.
(f) Insurance — Statutory Deposits
Total carrying values of cash and securities deposited by AIG’s insurance subsidiaries under requirements of
regulatory authorities were $14.6 billion and $15.2 billion at December 31, 2009 and 2008, respectively.
7. Lending Activities
The following table presents mortgages and other loans receivable:
Years Ended December 31,
(in millions) 2009 2008
Mortgages – commercial $16,005 $17,161
Mortgages – residential*623 2,271
Life insurance policy loans 6,788 9,589
Collateral, guaranteed, and other commercial loans 4,883 5,874
Total mortgage and other loans receivable 28,299 34,895
Allowance for losses (838) (208)
Mortgage and other loans receivable, net $27,461 $34,687
* Primarily consists of foreign mortgage loans.
Mortgage loans and other receivables held for sale were $62 million and $33 million at December 31, 2009 and
2008, respectively.
263 AIG 2009 Form 10-K