AIG 2014 Annual Report Download - page 271

ITEM 8 / NOTE 6. INVESTMENTS
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254
At December 31,
(in millions) 2014 2013
Balance sheet:
Total assets $ 207,994 $ 150,586
Total liabilities $ (67,346) $ (25,134)
The following table presents the carrying amount and ownership percentage of equity method investments at
December 31, 2014 and 2013:
2014
2013
Carrying Ownership Carrying Ownership
(in millions, except percentages) Value Percentage Value Percentage
Equity method investments $18,951 Various $ 12,921 Various
Summarized financial information for these equity method investees may be presented on a lag, due to the unavailability of
information for the investees at our respective balance sheet dates, and is included for the periods in which we held an equity
method ownership interest.
Other Investments
Also included in Other invested assets are real estate held for investment and aircraft asset investments held by non-Aircraft
Leasing subsidiaries. These investments are reported at cost, less depreciation and are subject to impairment review, as
discussed below.
Investments in Life Settlements
Investments in life settlements are accounted for under the investment method. Under the investment method, we recognize
our initial investment in life settlements at the transaction price plus all initial direct external costs. Continuing costs to keep the
policy in force, primarily life insurance premiums, increase the carrying amount of the investment. We recognize income on
individual investments in life settlements when the insured dies, at an amount equal to the excess of the investment proceeds
over the carrying amount of the investment at that time. These investments are subject to impairment review, as discussed
below.
During 2014, 2013 and 2012, income recognized on investments in life settlements was $407 million, $334 million and
$253 million, respectively, and is included in Net investment income in the Consolidated Statements of Income.
The following table presents further information regarding investments in life settlements:
December 31, 2014
Number of Carrying Face Value
(dollars in millions) Contracts Value (Death Benefits)
Remaining Life Expectancy of Insureds:
0 – 1 year 1 $ - $ -
1 – 2 years 12 919
2 – 3 years 18 11 19
3 – 4 years 77 42 93
4 – 5 years 152 205 436
Thereafter 4,687 3,486 15,370
Total 4,947 $ 3,753 $15,937
Remaining life expectancy for year 0-1 references policies whose current life expectancy is less than 12 months as of the
valuation date. Remaining life expectancy is not an indication of expected maturity. Actual maturity dates in any category may
vary significantly (either earlier or later) from the remaining life expectancies reported above.