AIG 2014 Annual Report Download - page 139

ITEM 7 / INVESTMENTS
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Total bonds
0-6 months $ 21,758 $ 536 3,691 $188 $47 58 $ 7 $ 4 3 $ 21,953 $587 3,752
7-11 months 2,135 69 502 30 713 53 4 2,170 79 519
12 months or more 23,000 1,009 2,023 395 120 89 36 24 11 23,431 1,153 2,123
Tot al (e) $ 46,893 $ 1,614 6,216 $613 $174 160 $48 $31 18 $ 47,554 $1,819 6,394
Equity securities
0-11 months $ 379 $ 40 90 $42 $13 26 $ - $ - - $ 421 $53 116
12 months or more 65 - 1 2 1 1 -- - 67 1 2
Tot al $ 444 $ 40 91 $44 $14 27 $ - $ - - $ 488 $54 118
(a) Represents the number of consecutive months that fair value has been less than cost by any amount.
(b) Represents the percentage by which fair value is less than cost at December 31, 2014.
(c) For bonds, represents amortized cost.
(d) The effect on Net income of unrealized losses after taxes will be mitigated upon realization because certain realized losses will result in current decreases in
the amortization of certain DAC.
(e) Item count is by CUSIP by subsidiary.
Change in Unrealized Gains and Losses on Investments
The change in net unrealized gains and losses on investments in 2014 was primarily attributable to increases in the fair value
of fixed maturity securities. For 2014, net unrealized gains related to fixed maturity and equity securities increased by
$7.3 billion due to a decrease in interest rates on investment grade fixed maturity securities, partially offset by the widening of
spreads.
The change in net unrealized gains and losses on investments in 2013 were primarily attributable to decreases in the fair value
of bonds available for sale. Net unrealized gains related to fixed maturity and equity securities decreased by $13.7 billion
primarily due to the increase in U.S. Treasury rates, partially offset by the narrowing of credit spreads and the realization of
approximately $2.5 billion in gains from sales of securities.
See also Note 6, Investments to the Consolidated Financial Statements for further discussion of our investment portfolio.
Insurance Reserves
The following section provides discussion of insurance reserves for both the Non-Life Insurance Companies and the Life
Insurance Companies.
Non-Life Insurance Companies
The following section provides discussion of the consolidated liability for unpaid losses and loss adjustment expenses for the
Non-Life Insurance Companies.