AIG 2014 Annual Report Download - page 268

ITEM 8 / NOTE 6. INVESTMENTS
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251
Securities Available for Sale in a Loss Position
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:
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
December 31, 2014
Bonds available for sale:
U.S. government and government sponsored entities $526 $ 5 $ 281 $ 13 $ 807 $ 18
Obligations of states, municipalities and political
subdivisions 495 9794 40 1,289 49
Non-U.S. governments 1,606 42 1,690 109 3,296 151
Corporate debt 12,132 450 11,570 672 23,702 1,122
RMBS 4,621 109 3,996 183 8,617 292
CMBS 220 12,087 58 2,307 59
CDO/ABS 3,857 50 1,860 78 5,717 128
Total bonds available for sale 23,457 666 22,278 1,153 45,735 1,819
Equity securities available for sale:
Common stock 88 16 2 1 90 17
Mutual funds 280 37 64 - 344 37
Total equity securities available for sale 368 53 66 1 434 54
Total $23,825 $719 $22,344 $ 1,154 $ 46,169 $ 1,873
December 31, 2013
Bonds available for sale:
U.S. government and government sponsored entities $1,101 $34 $42 $ 5 $ 1,143 $ 39
Obligations of states, municipalities and political
subdivisions 6,134 379 376 67 6,510 446
Non-U.S. governments 4,102 217 710 141 4,812 358
Corporate debt 38,495 2,251 4,926 647 43,421 2,898
RMBS 8,543 349 1,217 124 9,760 473
CMBS 3,191 176 1,215 116 4,406 292
CDO/ABS 2,845 62 915 80 3,760 142
Total bonds available for sale 64,411 3,468 9,401 1,180 73,812 4,648
Equity securities available for sale:
Common stock 96 14 - - 96 14
Preferred stock 5 1 - - 5 1
Mutual funds 369 24 - - 369 24
Total equity securities available for sale 470 39 - - 470 39
Total $64,881 $3,507 $9,401 $ 1,180 $ 74,282 $ 4,687
At December 31, 2014, we held 6,394 and 118 individual fixed maturity and equity securities, respectively, that were in an
unrealized loss position, of which 2,123 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, 2014, because we neither intend to sell the securities nor do we believe that it is more likely than not that we will be
required to sell these securities before recovery of their amortized cost basis. 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.