AIG 2015 Annual Report Download - page 269

ITEM 8 / NOTE 5. INVESTMENTS
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269
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, 2015
Bonds available for sale:
U.S. government and government sponsored entities $483 $ 9 $ 1 $ - $ 484 $ 9
Obligations of states, municipalities and political
subdivisions 2,382 87 268 17 2,650 104
Non-U.S. governments 4,327 203 832 159 5,159 362
Corporate debt 41,317 2,514 5,428 1,473 46,745 3,987
RMBS 7,215 133 4,318 278 11,533 411
CMBS 4,138 108 573 21 4,711 129
CDO/ABS 7,064 104 2,175 144 9,239 248
Total bonds available for sale 66,926 3,158 13,595 2,092 80,521 5,250
Equity securities available for sale:
Common stock 91 16 - - 91 16
Mutual funds 200 8 - - 200 8
Total equity securities available for sale 291 24 - - 291 24
Total $67,217 $3,182 $13,595 $ 2,092 $ 80,812 $ 5,274
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
At December 31, 2015, we held 14,972 and 174 individual fixed maturity and equity securities, respectively, that were in an
unrealized loss position, of which 2,176 individual fixed maturity securities were in a continuous unrealized loss position for 12
months or more. We did not recognize the unrealized losses in earnings on these fixed maturity securities at December 31,
2015 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 analyses 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.