Bring on tomorrow - AIG.com

ITEM 7 / INVESTMENTS.....................................................................................................................................................................................Investments by Segment..............................................................................................................................................................................................The following tables summarize the composition of AIG’s investments by reportable segment:Reportable SegmentAIG Property AIG Life and Aircraft Other(in millions) Casualty Retirement Leasing Operations TotalDecember 31, 2012Fixed maturity securities:Bonds available for sale, at fair valueBond trading securities, at fair valueEquity securities:Common and preferred stock available for sale,at fair valueCommon and preferred stock trading, atfair valueMortgage and other loans receivable, net ofallowanceOther invested assetsShort-term investmentsTotal investments (a)CashTotal invested assetsDecember 31, 2011Fixed maturity securities:Bonds available for sale, at fair value $ 103,831 $ 154,912 $ – $ 5,238 $ 263,981Bond trading securities, at fair value 88 1,583 – 22,693 24,364Equity securities:Common and preferred stock available for sale,at fair value 2,895 208 1 520 3,624Common and preferred stock trading, at fairvalue – – – 125 125Mortgage and other loans receivable, net ofallowance 553 16,759 90 2,087 19,489Flight equipment primarily under operatingleases, net of accumulated depreciation – – 35,539 – 35,539Other invested assets 12,279 12,560 – 15,905 (b) 40,744Short-term investments 4,660 3,318 1,910 12,684 22,572Total investments (a) 124,306 189,340 37,540 59,252 410,438Cash 673 463 65 273 1,474Total invested assets $ 124,979 $ 189,803 $ 37,605 $ 59,525 $ 411,912(a) At December 31, 2012, approximately 88 percent and 12 percent of investments were held by domestic and foreign entities, respectively,compared to approximately 90 percent and 10 percent, respectively, at December 31, 2011.(b) Includes $12.4 billion of AIA ordinary shares at December 31, 2011.$ 102,563 $ 163,550 $ – $ 3,846 $ 269,9591,597 1,855 – 21,132 24,5843,093 111 – 8 3,212– 562 – 100 662712 17,089 – 1,681 19,48212,720 12,777 – 3,620 29,1177,935 7,495 – 13,378 28,808128,620 203,439 – 43,765 375,824649 297 – 205 1,151$ 129,269 $ 203,736 $ – $ 43,970 $ 376,975AIG Property Casualty..............................................................................................................................................................................................In our property casualty business, the duration of liabilities for long-tail casualty lines is greater than other lines. Asdifferentiated from the life insurance and retirement services companies, the focus is not on asset-liability matching,but on preservation of capital and growth of surplus.Fixed income holdings of AIG Property Casualty domestic operations, with an average duration of 4.0 years, arecurrently comprised primarily of tax-exempt securities, which provide attractive risk-adjusted after-tax returns as well..................................................................................................................................................................................................................................AIG 2012 Form 10-K 141