AIG 2010 Annual Report Download - page 288

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
periods of broad market declines. For fixed maturity securities with significant declines, management performed
fundamental credit analysis on a security-by-security basis, which included consideration of credit enhancements,
expected defaults on underlying collateral, review of relevant industry analyst reports and forecasts and other
available market data.
Contractual Maturities of Securities Available for Sale
The following table presents the amortized cost and fair value of fixed maturity securities available for sale by
contractual maturity:
Total Fixed Maturity Fixed Maturity
December 31, 2010 Available for Sale Securities Securities in a Loss Position
Amortized Fair Amortized Fair
(in millions) Cost Value Cost Value
Due in one year or less $ 8,940 $ 9,054 $ 1,052 $ 1,033
Due after one year through five years 52,394 54,803 11,236 10,997
Due after five years through ten years 57,375 60,455 10,644 10,157
Due after ten years 67,336 71,360 18,255 17,252
Mortgage-backed, asset-backed and collateralized 34,624 32,630 21,050 17,714
Total $220,669 $228,302 $62,237 $57,153
Actual maturities may differ from contractual maturities because certain borrowers have the right to call or
prepay certain obligations with or without call or prepayment penalties.
(b) Trading Securities
The following table presents the fair value of AIG’s trading securities:
December 31, 2010 December 31, 2009
Fair Percent Fair Percent
(in millions) Value of Total Value of Total
Fixed Maturities:
U.S. government and government sponsored entities $ 6,902 21% $ 6,711 18%
Non-U.S. governments 125 1 1,421 4
Corporate debt 912 3 5,315 13
State, territories and political subdivisions 316 1 370 1
Mortgage-backed, asset-backed and collateralized:
RMBS 1,928 6 3,675 9
CMBS 2,078 6 2,476 6
CDO/ABS and other collateralized 6,331 19 5,997 15
Total mortgage-backed, asset-backed and collateralized 10,337 31 12,148 30
ML II 1,279 4 759 2
ML III 6,311 19 4,519 11
Total fixed maturities 26,182 80 31,243 79
Equity securities:
MetLife 6,494 20 --
All other 158 - 8,318 21
Total equity securities 6,652 20 8,318 21
Total $32,834 100% $39,561 100%
272 AIG 2010 Form 10-K