AIG 2010 Annual Report Download - page 289

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
See Note 8 herein for information on Mortgage and other loans receivable and Finance receivables.
(c) Other Invested Assets
The following table summarizes Other invested assets:
At December 31,
(in millions) 2010 2009
Category:
Alternative funds(a) $18,825 $19,273
Mutual funds 1,718 9,623
Investment real estate(b) 3,196 7,262
Aircraft asset investments(c) 1,381 1,498
Life settlement contracts 3,834 3,399
Consolidated managed partnerships and funds 638 816
Direct private equity investments 383 443
Retained interest in AIA 11,134 -
All other investments 1,101 2,921
Other invested assets $42,210 $45,235
(a) Includes hedge funds, private equity funds, affordable housing partnerships and other investment partnerships.
(b) Net of accumulated depreciation of $536 million and $1.04 billion in 2010 and 2009, respectively.
(c) Consist primarily of SunAmerica investments in aircraft equipment held in trusts.
Investments in Life Settlement Contracts
During 2010, 2009 and 2008, income recognized on life settlement contracts was $213 million, $106 million and
$120 million, respectively, and are included in Net investment income in the Consolidated Statement of Income.
AIG’s life settlement contracts reported above are monitored for impairment on a contract-by-contract basis
quarterly. Impairment charges on life settlement contracts are included in net realized capital gains (losses).
The following table presents further information regarding life settlement contracts:
At December 31, 2010
Number of Carrying Face Value
(dollars in millions) Contracts Value (Death Benefits)
Remaining Life Expectancy of Insureds:
0 - 1 year 13 $7 $16
1 - 2 years 50 26 37
2 - 3 years 114 89 164
3 - 4 years 242 283 574
4 - 5 years 257 245 647
Thereafter 4,997 3,184 16,309
Total 5,673 $3,834 $17,747
At December 31, 2010, the anticipated life insurance premiums required to keep the life settlement contracts in
force, payable in the ensuing 12 months ending December 31, 2011 and the four succeeding years ending
December 31, 2015 are $476 million, $489 million, $491 million, $485 million and $483 million, respectively.
AIG 2010 Form 10-K 273