AIG 2009 Annual Report Download - page 338

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Assets Measured at Fair Value
In accordance with the accounting standard on Employers’ Disclosures about Postretirement Benefit Plan Assets,
AIG is required to disclose the level of the fair value measurement of its plan assets. The inputs and methodology
used in determining the fair value of the plan assets are consistent with those used by AIG to measure its assets as
noted in Note 5 herein.
The following table presents information about AIG’s plan assets based on the level within the fair value hierarchy in
which the fair value measurement falls:
Non-U.S. Plans U.S. Plans
(in millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
At December 31, 2009
Assets:
Cash & cash equivalents $ 36 $ - $ - $ 36 $ 85 $ 2 $ - $ 87
Equity securities:
U.S.(a) 89 - - 89 1,420 50 - 1,470
International(b) 219 35 - 254 392 16 - 408
Fixed income securities:
U.S. investment grade(c) - 9 - 9 - 422 1 423
International investment grade(c) - 114 - 114 - - - -
U.S. high yield(d) - - - - - 132 1 133
International high yield - 79 - 79 - - - -
Mortgage backed securities(e) - - - - - 240 52 292
Other asset-backed - - - - - 5 - 5
Other investment types:
Hedge funds(f) - 21 - 21 - 302 - 302
Commodities - - - - - 33 - 33
Real estate - - 19 19 - - - -
Private equity(g) - - 21 21 - - 175 175
Insurance contracts - 79 29 108 - 34 - 34
Total $ 344 $ 337 $ 69 $750 $ 1,897 $ 1,236 $ 229 $ 3,362
(a) Includes index funds that primarily track several indices including S&P 500 and S&P 600 in addition to other actively managed accounts, comprised
of investments in large cap companies.
(b) Includes investments in companies in emerging and developed markets.
(c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment grade
corporate bonds.
(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade.
(e) Comprised primarily of investments that are guaranteed by a U.S. government agency.
(f) Includes funds comprised of macro, event driven, long/short equity, and controlled risk hedge fund strategies and a separately managed controlled
risk strategy.
(g) Includes funds that are diverse by geography, investment strategy, and sector.
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with
investing in these securities. Based on AIG’s investment strategy, AIG has no significant concentrations of risks.
AIG 2009 Form 10-K 330