AIG 2012 Annual Report Download - page 151

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Securities Financing
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At December 31, 2012, there were no securities transferred under repurchase agreements accounted for as sales
and no related cash collateral obtained. See Note 2 to the Consolidated Financial Statements for additional
information on the modification of the criteria for determining whether securities transferred under repurchase
agreements are accounted for as sales.
Arrangements with Variable Interest Entities
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While AIG enters into various arrangements with variable interest entities (VIEs) in the normal course of business,
our involvement with VIEs is primarily as a passive investor in fixed maturity securities (rated and unrated) and equity
interests issued by VIEs. We consolidate a VIE when we are the primary beneficiary of the entity. For a further
discussion of our involvement with VIEs, see Note 11 to the Consolidated Financial Statements.
Indemnification Agreements
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We are subject to financial guarantees and indemnity arrangements in connection with our sales of businesses.
These arrangements may be triggered by declines in asset values, specified business contingencies, the realization
of contingent liabilities, litigation developments, or breaches of representations, warranties or covenants provided by
us. These arrangements are typically subject to time limitations, defined by the contract or by operation of law, such
as by prevailing statutes of limitation. Depending on the specific terms of the arrangements, the maximum potential
obligation may or may not be subject to contractual limitations. For additional information regarding our
indemnification agreements, see Note 16 to the Consolidated Financial Statements.
We have recorded liabilities for certain of these arrangements where it is possible to estimate them. These liabilities
are not material in the aggregate. We are unable to develop a reasonable estimate of the maximum potential payout
under some of these arrangements. Overall, we believe that it is unlikely we will have to make any material
payments related to completed sales under these arrangements.
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AIG 2012 Form 10-K134
ITEM 7 / LIQUIDITY AND CAPITAL RESOURCES