AIG 2010 Annual Report Download - page 368

American International Group, Inc., and Subsidiaries
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(b) Includes investments in companies in emerging and developed markets.
(c) Represents investments in U.S. and non-U.S. government issued bonds, U.S. government agency or sponsored agency bonds, and investment
grade corporate bonds.
(d) Consists primarily of investments in securities or debt obligations that have a rating below investment grade.
(e) Comprised primarily of investments that are guaranteed by a U.S. government agency.
(f) Includes funds comprised of macro, event driven, long/short equity, and controlled risk hedge fund strategies and a separately managed
controlled risk strategy.
(g) Includes funds that are diverse by geography, investment strategy, and sector.
The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with
investing in these securities. Based on AIG’s investment strategy, AIG has no significant concentrations of risks.
The U.S. pension plan holds a group annuity contract with US Life, an AIG subsidiary, which totaled
$32 million and $34 million at December 31, 2010 and 2009, respectively.
The non-U.S. pension plans hold an insurance contract with AIG Star, an AIG subsidiary, which totaled
$64 million and $79 million at December 31, 2010 and 2009, respectively.
Changes in Level 3 fair value measurements
The following table presents changes in AIG’s non-U.S. and U.S. Level 3 plan assets measured at fair value:
Changes in
At December 31, 2010 Net Purchases, Unrealized Losses
Balance Realized and Sales, Issuances on Instruments
Beginning Unrealized and Transfers Balance at Held at End of
(in millions) of year Gains (Losses) Settlements-Net In (Out) End of year year
Non-U.S. Plan Assets:
Real estate $ 19 $ - $ - $ (19) $ - $ -
Private equity 21 - - (21) - -
Insurance contracts 29 3 2 - 34 -
Total $ 69 $ 3 $ 2 $ (40) $ 34 $ -
U.S. Plan Assets:
Fixed maturity
U.S. investment grade $1 $- $-$- $1 $-
U.S. and international high yield 1 - - (1) - (1)
Mortgage and other asset-backed
securities 52 7 24 (3) 80 (14)
Equities – U.S. -- --- -
Private equity 175 17 17 - 209 -
Total $ 229 $ 24 $ 41 $ (4) $ 290 $ (15)
At December 31, 2009
Non-U.S. Plan Assets:
Real estate $ 22 $ (3) $ - $ - $ 19 $ (3)
Private equity 17 4 - - 21 -
Insurance contracts 24 2 3 - 29 -
Total $ 63 $ 3 $ 3 $ - $ 69 $ (3)
U.S. Plan Assets:
Fixed maturity
U.S. investment grade $ 3 $ 1 $ (3) $ - $ 1 $ -
U.S. and international high yield 1 - - - 1 -
Mortgage and other asset-backed
securities 49 3 (40) 40 52 (44)
Equities – U.S. 1 - - (1) - -
Private equity 159 33 (18) 1 175 (19)
Total $ 213 $ 37 $ (61) $ 40 $ 229 $ (63)
352 AIG 2010 Form 10-K