AIG 2015 Annual Report Download - page 113

ITEM 7 / INVESTMENTS
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113
• Outside of the U.S., fixed maturity securities held by Non-Life Insurance Companies consist primarily of intermediate
duration high-grade securities generally denominated in the currencies of the countries in which we operate.
 While more of a focus is placed on asset-liability management in Life Insurance Companies, our fundamental strategy
across all of our investment portfolios is to optimize the duration characteristics of the assets within a target range based on
comparable liability characteristics, to the extent practicable.
 AIG Parent actively manages its assets and liabilities in terms of products, counterparties and duration. AIG Parent’s
liquidity sources are held in the form of cash, short-term investments and publicly traded, intermediate term investment-
grade rated fixed maturity securities. Based upon an assessment of its immediate and longer-term funding needs, AIG
Parent purchases publicly traded, intermediate term, investment-grade rated fixed maturity securities that can be readily
monetized through sales or repurchase agreements. These securities allow us to diversify sources of liquidity while
reducing the cost of maintaining sufficient liquidity.
Investments by Legal Entity Category
The following tables summarize the composition of AIG's investments:
Non-Life Life
Insurance Insurance Corporate
(in millions) Companies Companies and Other(a) Total
December 31, 2015
Fixed maturity securities:
Bonds available for sale, at fair value $84,849 $157,150 $ 6,246 $248,245
Other bond securities, at fair value 1,463 3,589 11,730 16,782
Equity securities:
Common and preferred stock available for sale, at fair value 2,821 144 (50) 2,915
Other Common and preferred stock, at fair value 355 - 566 921
Mortgage and other loans receivable, net of allowance 8,278 23,979 (2,692) 29,565
Other invested assets 10,571 12,398 6,825 29,794
Short-term investments 3,189 2,877 4,066 10,132
Total investments(b) 111,526 200,137 26,691 338,354
Cash 1,011 557 61 1,629
Total invested assets $112,537 $200,694 $ 26,752 $339,983
December 31, 2014
Fixed maturity securities:
Bonds available for sale, at fair value $92,942 $164,527 $ 2,390 $259,859
Other bond securities, at fair value 1,733 2,785 15,194 19,712
Equity securities:
Common and preferred stock available for sale, at fair value 4,241 150 44,395
Other Common and preferred stock, at fair value 495 - 554 1,049
Mortgage and other loans receivable, net of allowance 6,686 20,874 (2,570) 24,990
Other invested assets 10,372 11,916 12,230 34,518
Short-term investments 4,154 2,131 4,958 11,243
Total investments(b) 120,623 202,383 32,760 355,766
Cash 1,191 451 116 1,758
Total invested assets $121,814 $202,834 $ 32,876 $357,524
(a) Beginning in the fourth quarter of 2015, Eaglestone Reinsurance Company is reported in Corporate and Other.
(b) At December 31, 2015, approximately 90 percent and 10 percent of investments were held by domestic and foreign entities, respectively, compared to
approximately 90 percent and 10 percent, respectively, at December 31, 2014.