AIG 2012 Annual Report Download - page 271

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Securities Available for Sale in a Loss Position
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The following table summarizes the fair value and gross unrealized losses on our available for sale
securities, aggregated by major investment category and length of time that individual securities have been
in a continuous unrealized loss position:
December 31, 2012
Bonds available for sale:
U.S. government and government sponsored entities
Obligations of states, municipalities and political subdivisions
Non-U.S. governments
Corporate debt
RMBS
CMBS
CDO/ABS
Total bonds available for sale
Equity securities available for sale:
Common stock
Preferred stock
Mutual funds
Total equity securities available for sale
Total
December 31, 2011
Bonds available for sale:
U.S. government and government sponsored entities $ 142 $ 1 $ – $ – $ 142 $ 1
Obligations of states, municipalities and political subdivisions 174 1 669 72 843 73
Non-U.S. governments 3,992 67 424 35 4,416 102
Corporate debt 18,099 937 5,907 788 24,006 1,725
RMBS 10,624 714 4,148 849 14,772 1,563
CMBS 1,697 185 1,724 788 3,421 973
CDO/ABS 1,680 50 1,682 423 3,362 473
Total bonds available for sale 36,408 1,955 14,554 2,955 50,962 4,910
Equity securities available for sale:
Common stock 608 100 – – 608 100
Preferred stock 6 – – – 6 –
Mutual funds 21––21
Total equity securities available for sale 616 101 – – 616 101
Total $ 37,024 $ 2,056 $ 14,554 $ 2,955 $ 51,578 $ 5,011
At December 31, 2012, we held 3,637 and 198 individual fixed maturity and equity securities, respectively, that were
in an unrealized loss position, of which 1,385 individual fixed maturity securities were in a continuous unrealized loss
position for longer than 12 months. We did not recognize the unrealized losses in earnings on these fixed maturity
securities at December 31, 2012, because we neither intend to sell the securities nor do we believe that it is more
likely than not that it will be required to sell these securities before recovery of their amortized cost basis.
Furthermore, we expect to recover the entire amortized cost basis of these securities. In performing this evaluation,
we considered the recovery periods for securities in previous periods of broad market declines. For fixed maturity
securities with significant declines, we performed fundamental credit analysis on a security-by-security basis, which
included consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industry
analyst reports and forecasts and other available market data.
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AIG 2012 Form 10-K254
Less than 12 Months 12 Months or More Total
Gross Gross Gross
Fair Unrealized Fair Unrealized Fair Unrealized
(in millions) Value Losses Value Losses Value Losses
$ 153 $ 1 $ – $ – $ 153 $ 1
692 11 114 11 806 22
1,555 19 442 25 1,997 44
8,483 201 3,229 263 11,712 464
597 28 1,661 289 2,258 317
406 11 1,595 365 2,001 376
391 1 1,510 171 1,901 172
12,277 272 8,551 1,124 20,828 1,396
247 36 18 1 265 37
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3–––3–
250 36 18 1 268 37
$ 12,527 $ 308 $ 8,569 $ 1,125 $ 21,096 $ 1,433
ITEM 8 / NOTE 7. INVESTMENTS