AIG 2012 Annual Report Download - page 170

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Other-than-temporary impairment charges by investment type and credit rating:
For the Year Ended December 31, 2012
Rating:
AAA
AA
A
BBB
Below investment grade
Non-rated
Total
For the Year Ended December 31, 2011
Rating:
AAA $ 3 $–$– $9 $–$ 12
AA 24 – – 10 – 34
A 7 – – 15 – 22
BBB 6 5 – 1 – 12
Below investment grade 749 15 150 14 – 928
Non-rated – – – 1 271 272
Total $ 789 $ 20 $ 150 $ 50 $ 271 $ 1,280
For the Year Ended December 31, 2010
Rating:
AAA $ 5 $ – $ – $ 10 $ – $ 15
AA 20 – – 3 – 23
A2–1314–29
BBB 47 – 41 10 – 98
Below investment grade 1,207 30 784 108 – 2,129
Non-rated – 9 – 34 702 745
Total $ 1,281 $ 39 $ 838 $ 179 $ 702 $ 3,039
* Includes other-than-temporary impairment charges on private equity funds, hedge funds and direct private equity investments.
We recorded other-than-temporary impairment charges in the years ended December 31, 2012 and 2011 related to:
• issuer-specific credit events;
• securities for which we have changed our intent from hold to sell;
• declines due to foreign exchange rates;
• adverse changes in estimated cash flows on certain structured securities;
• securities that experienced severe market valuation declines; and
• other impairments, including equity securities, private equity funds, hedge funds, direct private equity investments,
aircraft trusts and investments in life settlement contracts.
There was no significant impact to our consolidated financial condition or results of operations from
other-than-temporary impairment charges for any one single credit. Also, no individual other-than-temporary
impairment charge exceeded 0.11 percent, 0.20 percent and 0.20 percent of total equity at December 31, 2012, 2011
or 2010, respectively.
In periods subsequent to the recognition of an other-than-temporary impairment charge for available for sale fixed
maturity securities that is not foreign-exchange related, we generally prospectively accrete into earnings the
difference between the new amortized cost and the expected undiscounted recovery value over the remaining life of
the security. The accretion that was recognized for these securities in earnings was $915 million in 2012, and
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AIG 2012 Form 10-K 153
Other Fixed Equities/Other
(in millions) RMBS CDO/ABS CMBS Maturity Invested Assets*Total
$ – $–$– $2 $–$ 2
10 – – – – 10
–2– 4 –6
––– – ––
432 5 208 26 – 671
– – – 34 444 478
$ 442 $ 7 $ 208 $ 66 $ 444 $ 1,167
ITEM 7 / INVESTMENTS