AIG 2010 Annual Report Download - page 290

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Invested Assets — Available for Sale Investments
At December 31, 2010 and 2009, $6.5 billion and $6.1 billion of Other invested assets related to available for
sale investments carried at fair value, with unrealized gains and losses recorded in Accumulated other
comprehensive income (loss), net of deferred taxes, with almost all of the remaining investments being accounted
for on the equity method of accounting. All of the investments are subject to other-than-temporary impairment
evaluation (see Note 2(d) herein). The gross unrealized loss on the investments accounted for as available for sale
at December 31, 2010 was $93 million, the majority of which represents investments that have been in a
continuous unrealized loss position for less than 12 months.
Other Invested Assets — Equity Method Investments
At December 31, 2010, AIG’s equity method investments included a 33 percent interest in AIA, which AIG is
accounting for under the fair value option, certain investment partnerships in which AIG holds in the aggregate a
five percent or greater interest or less than a five percent interest but in which AIG has more than a minor
influence over the operations of the investee, and certain other strategic investments. Dividends received from
AIG’s other strategic investments were $11 million, $1 million and $20 million for the years ended December 31,
2010, 2009, and 2008, respectively. The undistributed earnings of other strategic investments in which AIG’s
ownership interest is less than 50 percent were $13 million, $12 million and $227 million at December 31, 2010,
2009, and 2008, respectively.
The following table presents the carrying value and ownership percentage of equity method investments:
2010 2009
Carrying Ownership Carrying Ownership
(in millions, except percentages) Value Percentage Value Percentage
AIA $11,134 33% $- -
All other equity method investments 9,187 Various 8,222 Various
Total $20,321 $8,222
Summarized Financial Information of Equity Method Investees
The following is the aggregated summarized financial information of AIG’s equity method investees:
Years Ended December 31,
(in millions) 2010 2009 2008
Operating results:
Total revenues $ 29,694 $ (15,082) $ 19,181
Total expenses (17,250) (6,384) (8,701)
Net income (loss) $ 12,444 $ (21,466) $ 10,480
At December 31,
(in millions) 2010 2009
Balance sheet:
Total assets $ 213,936 $101,291
Total liabilities $(115,760) $(32,136)
Summarized financial information for these equity method investees may be presented on a lag, due to the
unavailability of information for the investees at the respective balance sheet date, and is included for the periods
in which AIG held an equity method ownership interest. Summarized financial information for entities that have
been divested or are held-for-sale are not included in the table above.
274 AIG 2010 Form 10-K