AIG 2015 Annual Report Download - page 271

ITEM 8 / NOTE 5. INVESTMENTS
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Other Securities Measured at Fair Value
The following table presents the fair value of other securities measured at fair value based on our election of the fair
value option:
December 31, 2015 December 31, 2014
Fair Percent Fair Percent
(in millions) Value of Total Value of Total
Fixed maturity securities:
U.S. government and government sponsored entities $3,369 19 % $ 5,498 27 %
Obligations of states, municipalities and political subdivisions 75 - 122 1
Non-U.S. governments 50 - 2-
Corporate debt 2,035 12 719 3
Mortgage-backed, asset-backed and collateralized:
RMBS 2,230 13 2,094 10
CMBS 750 4 1,077 5
CDO/ABS and other collateralized* 8,273 47 10,200 49
Total mortgage-backed, asset-backed and collateralized 11,253 64 13,371 64
Total fixed maturity securities 16,782 95 19,712 95
Equity securities 921 51,049 5
Tot al $17,703 100 % $ 20,761 100 %
* Includes $712 million and $859 million of U.S. Government agency backed ABS at December 31, 2015 and 2014, respectively.
Other Invested Assets
The following table summarizes the carrying amounts of other invested assets:
December 31,
(in millions) 2015 2014
Alternative investments(a) $ 18,150 $ 19,656
Investment real estate(b) 6,579 3,612
Aircraft asset investments(c) 477 651
Investments in life settlements 3,606 3,753
Investment in AerCap -4,972
All other investments 982 1,874
Tot al $ 29,794 $ 34,518
(a) Includes hedge funds, private equity funds, affordable housing partnerships, and other investment partnerships.
(b) Net of accumulated depreciation of $668 million and $315 million in 2015 and 2014, respectively.
(c) Consists of investments in aircraft equipment held in consolidated trusts.
Other Invested Assets Carried at Fair Value
Certain hedge funds, private equity funds, affordable housing partnerships and other investment partnerships for which we
have elected the fair value option are reported at fair value with changes in fair value recognized in Net investment income
with the exception of investments of AIG’s Corporate and Other category, for which such changes are reported in Other
income. Other investments in hedge funds, private equity funds, affordable housing partnerships and other investment
partnerships in which our insurance operations do not hold aggregate interests sufficient to exercise more than minor influence
over the respective partnerships are reported at fair value with changes in fair value recognized as a component of
Accumulated other comprehensive income. These investments are subject to other-than-temporary impairment evaluations
(see discussion below on evaluating equity investments for other-than-temporary impairment). The gross unrealized loss
recorded in Other comprehensive income on such investments was $33 million and $56 million at December 31, 2015 and