AIG 2010 Annual Report Download - page 143

American International Group, Inc., and Subsidiaries
Investments by Segment
The following tables summarize the composition of AIG’s investments by segment:
Financial
(in millions) Chartis SunAmerica Services Other Total
At December 31, 2010
Fixed maturity securities:
Bonds available for sale, at fair value $ 88,904 $128,347 $ 108 $ 10,943 $228,302
Bond trading securities, at fair value - 1,307 339 24,536 26,182
Equity securities:
Common and preferred stock available for sale, at fair value 3,827 218 2 534 4,581
Common and preferred stock trading, at fair value - 1 152 6,499 6,652
Mortgage and other loans receivable, net of allowance 690 16,727 71 1,879 19,367
Finance receivables, net of allowance - - 671 199 870
Flight equipment primarily under operating leases, net of
accumulated depreciation - - 38,510 - 38,510
Other invested assets 13,743 13,069 270 15,128 42,210
Securities purchased under agreements to resell, at fair value - - - 1,553 1,553
Short-term investments 11,799 19,160 3,878 7,348 42,185
Total investments(a) 118,963 178,829 44,001 68,619 410,412
Cash 572 270 302 414 1,558
Total invested assets(b) $119,535 $179,099 $44,303 $ 69,033 $411,970
At December 31, 2009
Fixed maturity securities:
Bonds available for sale, at fair value $ 79,507 $116,629 $ 508 $168,907 $365,551
Bond trading securities, at fair value - 846 388 30,009 31,243
Equity securities:
Common and preferred stock available for sale, at fair value 2,770 320 15 6,417 9,522
Common and preferred stock trading, at fair value 48 1 388 7,881 8,318
Mortgage and other loans receivable, net of allowance 9 17,728 168 9,556 27,461
Finance receivables, net of allowance - - 1,328 18,999 20,327
Flight equipment primarily under operating leases, net of
accumulated depreciation - - 44,091 - 44,091
Other invested assets 11,668 13,141 170 20,256 45,235
Securities purchased under agreements to resell, at fair value - - - 2,154 2,154
Short-term investments 12,094 17,456 2,145 15,568 47,263
Total investments(a) 106,096 166,121 49,201 279,747 601,165
Cash 780 63 1,585 1,972 4,400
Total invested assets $106,876 $166,184 $50,786 $281,719 $605,565
(a) At December 31, 2010, approximately 85 percent and 15 percent of investments were held by domestic and foreign entities, respectively,
compared to approximately 60 percent and 40 percent, respectively, at December 31, 2009 reflecting the deconsolidation of AIA and sale of
ALICO in 2010.
(b) Total invested assets of businesses held for sale amounted to $96.3 billion at December 31, 2010. See Note 4 to the Consolidated Financial
Statements.
Chartis
In AIG’s general insurance business, the duration of liabilities for long-tail casualty lines is greater than other
lines. As differentiated from the life insurance and retirement services companies, the focus is not on asset-liability
matching, but on preservation of capital and growth of surplus.
Fixed income holdings of Chartis U.S., with an average duration of 4.1 years, are currently comprised primarily
of tax-exempt securities, which provide attractive risk-adjusted after-tax returns as well as taxable municipal bonds,
AIG 2010 Form 10-K 127