AIG 2010 Annual Report Download - page 148

American International Group, Inc., and Subsidiaries
Investments in Residential Mortgage-Backed Securities (RMBS)
The following table presents AIG’s RMBS investments by year of vintage:
December 31, 2010 December 31, 2009
Gross Gross Percent of Gross Gross Percent of
Amortized Unrealized Unrealized Fair Amortized Amortized Unrealized Unrealized Fair Amortized
(in millions) Cost Gains Losses Value Cost Cost Gains Losses Value Cost
Total RMBS(a)
2010 $ 4,157 $ 11 $ (53) $ 4,115 20% $- $-$-$- -%
2009 881 9 (3) 887 4 1,716 19 (6) 1,729 5
2008 937 39 (2) 974 4 3,418 135 (1) 3,552 11
2007 2,836 114 (213) 2,737 14 4,982 135 (881) 4,236 16
2006 2,399 99 (230) 2,268 12 5,206 197 (1,161) 4,242 16
2005 and prior 9,451 428 (1,052) 8,827 46 16,851 505 (2,791) 14,565 52
Total RMBS $20,661 $700 $(1,553) $19,808 100% $32,173 $991 $(4,840) $28,324 100%
Alt-A
2010 $ 70 $ 1 $ (1) $ 70 2% $- $-$-$- -%
2009 ----------
2008 ----------
2007 1,004 39 (76) 967 28 1,490 21 (408) 1,103 28
2006 724 13 (98) 639 21 1,484 9 (568) 925 28
2005 and prior 1,725 28 (282) 1,471 49 2,397 13 (705) 1,705 44
Total Alt-A $ 3,523 $ 81 $ (457) $ 3,147 100% $ 5,371 $ 43 $(1,681) $ 3,733 100%
Subprime
2010 $- $-$-$- -%$- $-$-$- -%
2009 ----------
2008 ----------
2007 44 19 (5) 58 3 61 16 (18) 59 4
2006 111 9 (10) 110 9 180 6 (42) 144 11
2005 and prior 1,104 7 (307) 804 88 1,358 - (659) 699 85
Total Subprime $ 1,259 $ 35 $ (322) $ 972 100% $ 1,599 $ 22 $ (719) $ 902 100%
Prime non-agency(b)
2010 $ 20 $ - $ (1) $ 19 -% $- $-$-$- -%
2009 97 - - 97 2 387 6 - 393 3
2008 -----109 9 - 118 1
2007 1,097 19 (71) 1,045 21 1,920 21 (340) 1,601 17
2006 986 30 (89) 927 19 2,259 91 (415) 1,935 20
2005 and prior 3,024 66 (394) 2,696 58 6,783 42 (1,272) 5,553 59
Total Prime non-agency $ 5,224 $115 $ (555) $ 4,784 100% $11,458 $169 $(2,027) $ 9,600 100%
(a) Includes $10.1 billion amortized cost and $10.5 billion fair value of agency backed securities.
(b) Includes foreign and jumbo RMBS-related securities.
As of February 16, 2011, $941 million of RMBS was on watch by the rating agencies for downgrade.
In 2010 and 2009, AIG collected approximately $5.4 billion and $5.0 billion, respectively, of principal payments
on RMBS. During 2010 AIG reduced its exposure to RMBS by approximately $9.0 billion.
132 AIG 2010 Form 10-K