AIG 2010 Annual Report Download - page 287

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unrealized losses on Securities Available for Sale
The following table summarizes the fair value and gross unrealized losses on AIG’s available for sale securities,
aggregated by major investment category and length of time that individual securities have been in a continuous
unrealized loss position:
12 Months or Less More than 12 Months Total
Gross Gross Gross
Fair Unrealized Fair Unrealized Fair Unrealized
(in millions) Value Losses Value Losses Value Losses
December 31, 2010*
Bonds available for sale:
U.S. government and government sponsored
entities $ 2,142 $ 73 $ - $ - $ 2,142 $ 73
Obligations of states, municipalities and political
subdivisions 9,300 296 646 106 9,946 402
Non-U.S. governments 1,427 34 335 41 1,762 75
Corporate debt 18,246 579 7,343 619 25,589 1,198
RMBS 4,461 105 6,178 1,448 10,639 1,553
CMBS 462 19 3,014 1,130 3,476 1,149
CDO/ABS 996 48 2,603 586 3,599 634
Total bonds available for sale 37,034 1,154 20,119 3,930 57,153 5,084
Equity securities available for sale:
Common stock 576 52 - - 576 52
Preferred stock 11 1 - - 11 1
Mutual funds 65 2 - - 65 2
Total equity securities available for sale 652 55 - - 652 55
Total $37,686 $ 1,209 $ 20,119 $3,930 $57,805 $ 5,139
December 31, 2009*
Bonds available for sale:
U.S. government and government sponsored
entities $ 1,414 $ 35 $ 105 $ 14 $ 1,519 $ 49
Obligations of states, municipalities and political
subdivisions 5,405 132 3,349 253 8,754 385
Non-U.S. governments 7,842 239 3,286 410 11,128 649
Corporate debt 24,696 1,386 22,139 2,490 46,835 3,876
RMBS 7,135 3,051 6,352 1,789 13,487 4,840
CMBS 5,013 3,927 4,528 1,696 9,541 5,623
CDO/ABS 2,809 1,119 1,693 185 4,502 1,304
Total bonds available for sale 54,314 9,889 41,452 6,837 95,766 16,726
Equity securities available for sale:
Common stock 933 75 - - 933 75
Preferred stock 172 20 - - 172 20
Mutual funds 333 36 - - 333 36
Total equity securities available for sale 1,438 131 - - 1,438 131
Total $55,752 $10,020 $ 41,452 $6,837 $97,204 $16,857
* Excludes fixed maturity and equity securities of businesses held for sale. See Note 4 herein.
At December 31, 2010, AIG held 6,595 and 234 of individual fixed maturity and equity securities, respectively,
that were in an unrealized loss position, of which 2,747 individual securities were in a continuous unrealized loss
position for longer than 12 months. AIG did not recognize in earnings the unrealized losses on these fixed
maturity securities at December 31, 2010, because management neither intends to sell the securities nor does it
believe that it is more likely than not that it will be required to sell these securities before recovery of their
amortized cost basis. Furthermore, management expects to recover the entire amortized cost basis of these
securities. In performing this evaluation, management considered the recovery periods for securities in previous
AIG 2010 Form 10-K 271