AIG 2010 Annual Report Download - page 259

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
During 2010, AIG sold its investment advisory and third-party asset management business for $277 million cash
at closing plus contingent consideration to be received over time. Prior to the closing of this transaction this
business was a component of the Asset Management operations included within Other operations. This transaction
met the criteria for held-for-sale accounting, and the assets and liabilities of the business were included as single
line items in the asset and liability sections of the Consolidated Balance Sheet at December 31, 2009. This
transaction does not meet the criteria for discontinued operations accounting because of significant direct
continuing cash flows between AIG and the business sold.
During 2009, AIG entered into an agreement to combine its consumer finance business in Poland, conducted
through AIG Bank Polska S.A., into the Polish consumer finance business of Santander Consumer Finance S.A.
(SCB). The transaction closed on June 8, 2010. In exchange, AIG received an equity interest in SCB. Prior to the
closing of the transaction, AIG Bank Polska S.A. was a component of the Financial Services reporting segment.
This transaction met the criteria for held-for-sale accounting and, as a result, the assets and liabilities of this
business were included as single line items in the asset and liability sections of the Consolidated Balance Sheet at
December 31, 2009. This transaction does not meet the criteria for discontinued operations accounting because of
the equity method interest in SCB that AIG received in this transaction.
The following table summarizes assets and liabilities held for sale:
December 31,
(in millions) 2010 2009
Assets:
Fixed maturity securities $ 77,905 $34,495
Deferred policy acquisition costs 7,095 3,322
Mortgage and other loans receivable, net 5,584 3,997
Equity securities 4,488 2,947
Other invested assets 4,167 4,256
Short-term investments 3,670 3,501
Separate account assets 3,745 3,467
Other assets 544 394
Assets of businesses held for sale 107,198 56,379
Flight equipment*255 -
Total assets held for sale $107,453 $56,379
Liabilities:
Future policy benefits for life and accident and health insurance contracts $ 61,767 $38,023
Policyholder contract deposits 26,847 3,133
Separate account liabilities 3,745 3,467
Other long-term debt 525 -
Other liabilities 4,428 3,976
Total liabilities held for sale $ 97,312 $48,599
* Represents nine aircraft that remain to be sold under agreements for sale by ILFC as of December 31, 2010.
5. Business Combination
On March 31, 2010, AIG, through a Chartis International subsidiary, purchased additional voting shares in Fuji
Fire & Marine Insurance Company Limited (Fuji), a publicly traded Japanese insurance company with property/
casualty insurance operations and a life insurance subsidiary. The acquisition of the additional voting shares for
$145 million increased Chartis International’s total voting ownership interest in Fuji from 41.7 percent to
54.8 percent, which resulted in Chartis International obtaining control of Fuji. This acquisition was made to
increase Chartis International’s share in the substantial Japanese insurance market, which is undergoing significant
consolidation, and to achieve cost savings from synergies.
AIG 2010 Form 10-K 243