AIG 2010 Annual Report Download - page 286

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
7. Investments
(a) Securities Available for Sale
The following table presents the amortized cost or cost and fair value of AIG’s available for sale securities:
Other-Than-
Amortized Gross Gross Temporary
Cost or Unrealized Unrealized Fair Impairments
(in millions) Cost Gains Losses Value in AOCI(a)
December 31, 2010
Bonds available for sale:
U.S. government and government sponsored entities $ 7,239 $ 184 $ (73) $ 7,350 $ -
Obligations of states, municipalities and political
subdivisions 45,297 1,725 (402) 46,620 2
Non-U.S. governments 14,780 639 (75) 15,344 (28)
Corporate debt 118,729 8,827 (1,198) 126,358 99
Mortgage-backed, asset-backed and collateralized:
RMBS 20,661 700 (1,553) 19,808 (648)
CMBS 7,320 240 (1,149) 6,411 (218)
CDO/ABS 6,643 402 (634) 6,411 32
Total mortgage-backed, asset-backed and collateralized 34,624 1,342 (3,336) 32,630 (834)
Total bonds available for sale(b) 220,669 12,717 (5,084) 228,302 (761)
Equity securities available for sale:
Common stock 1,820 1,931 (52) 3,699 -
Preferred stock 400 88 (1) 487 -
Mutual funds 351 46 (2) 395 -
Total equity securities available for sale 2,571 2,065 (55) 4,581 -
Total(c) $223,240 $14,782 $ (5,139) $232,883 $ (761)
December 31, 2009
Bonds available for sale:
U.S. government and government sponsored entities $ 5,098 $ 174 $ (49) $ 5,223 $ -
Obligations of states, municipalities and political
subdivisions 52,324 2,163 (385) 54,102 -
Non-U.S. governments 63,080 3,153 (649) 65,584 (1)
Corporate debt 185,188 10,826 (3,876) 192,138 119
Mortgage-backed, asset-backed and collateralized:
RMBS 32,173 991 (4,840) 28,324 (2,121)
CMBS 18,717 195 (5,623) 13,289 (739)
CDO/ABS 7,911 284 (1,304) 6,891 (63)
Total mortgage-backed, asset-backed and collateralized 58,801 1,470 (11,767) 48,504 (2,923)
Total bonds available for sale(b) 364,491 17,786 (16,726) 365,551 (2,805)
Equity securities available for sale:
Common stock 4,460 2,913 (75) 7,298 -
Preferred stock 740 94 (20) 814 -
Mutual funds 1,264 182 (36) 1,410 -
Total equity securities available for sale 6,464 3,189 (131) 9,522 -
Total(c) $370,955 $20,975 $(16,857) $375,073 $(2,805)
(a) Represents the amount of other-than-temporary impairment losses recognized in Accumulated other comprehensive loss, which, starting on
April 1, 2009, were not included in earnings. Amount includes unrealized gains and losses on impaired securities relating to changes in the
value of such securities subsequent to the impairment measurement date.
(b) At December 31, 2010 and 2009, bonds available for sale held by AIG that were below investment grade or not rated totaled $18.6 billion and
$24.5 billion, respectively.
(c) Excludes $80.5 billion and $36.1 billion of available for sale investments at fair value from businesses held for sale at December 31, 2010 and
December 31, 2009, respectively. See Note 4 to the Consolidated Financial Statements herein.
270 AIG 2010 Form 10-K