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ITEM 8 / NOTE 7. INVESTMENTS.....................................................................................................................................................................................Securities Available for Sale..............................................................................................................................................................................................The following table presents the amortized cost or cost and fair value of our available for sale securities:Other-Than-Amortized Gross Gross TemporaryCost or Unrealized Unrealized Fair Impairments(in millions) Cost Gains Losses Value in AOCI (a)December 31, 2012Bonds available for sale:U.S. government and government sponsored entitiesObligations of states, municipalities and political subdivisionsNon-U.S. governmentsCorporate debtMortgage-backed, asset-backed and collateralized:RMBSCMBSCDO/ABSTotal mortgage-backed, asset-backed and collateralizedTotal bonds available for sale (b)Equity securities available for sale:Common stockPreferred stockMutual fundsTotal equity securities available for saleTotal$ 3,161 $ 323 $ (1) $ 3,483 $ –33,042 2,685 (22) 35,705 225,449 1,395 (44) 26,800 –135,728 15,848 (464) 151,112 11531,330 3,379 (317) 34,392 1,3309,699 811 (376) 10,134 (54)7,740 765 (172) 8,333 5748,769 4,955 (865) 52,859 1,333246,149 25,206 (1,396) 269,959 1,4501,492 1,574 (37) 3,029 –55 23 – 78 –93 12 – 105 –1,640 1,609 (37) 3,212 –$ 247,789 $ 26,815 $ (1,433) $ 273,171 $ 1,450December 31, 2011Bonds available for sale:U.S. government and government sponsored entities $ 5,661 $ 418 $ (1) $ 6,078 $ –Obligations of states, municipalities and political subdivisions 35,017 2,554 (73) 37,498 (28)Non-U.S. governments 24,843 994 (102) 25,735 –Corporate debt 134,699 11,844 (1,725) 144,818 115Mortgage-backed, asset-backed and collateralized:RMBS 34,780 1,387 (1,563) 34,604 (716)CMBS 8,449 470 (973) 7,946 (276)CDO/ABS 7,321 454 (473) 7,302 49Total mortgage-backed, asset-backed and collateralized 50,550 2,311 (3,009) 49,852 (943)Total bonds available for sale (b) 250,770 18,121 (4,910) 263,981 (856)Equity securities available for sale:Common stock 1,682 1,839 (100) 3,421 –Preferred stock 83 60 – 143 –Mutual funds 55 6 (1) 60 –Total equity securities available for sale 1,820 1,905 (101) 3,624 –Total $ 252,590 $ 20,026 $ (5,011) $ 267,605 $ (856)(a) Represents the amount of other-than-temporary impairment losses recognized in Accumulated other comprehensive income. Amount includesunrealized gains and losses on impaired securities relating to changes in the value of such securities subsequent to the impairment measurementdate.(b) At December 31, 2012 and December 31, 2011, bonds available for sale held by us that were below investment grade or not rated totaled$29.6 billion and $24.2 billion, respectively...................................................................................................................................................................................................................................AIG 2012 Form 10-K 253
ITEM 8 / NOTE 7. INVESTMENTS.....................................................................................................................................................................................Securities Available for Sale in a Loss Position..............................................................................................................................................................................................The following table summarizes the fair value and gross unrealized losses on our available for salesecurities, aggregated by major investment category and length of time that individual securities have beenin a continuous unrealized loss position:Less than 12 Months 12 Months or More TotalGross Gross GrossFair Unrealized Fair Unrealized Fair Unrealized(in millions) Value Losses Value Losses Value LossesDecember 31, 2012Bonds available for sale:U.S. government and government sponsored entitiesObligations of states, municipalities and political subdivisionsNon-U.S. governmentsCorporate debtRMBSCMBSCDO/ABSTotal bonds available for saleEquity securities available for sale:Common stockPreferred stockMutual fundsTotal equity securities available for saleTotal$ 153 $ 1 $ – $ – $ 153 $ 1692 11 114 11 806 221,555 19 442 25 1,997 448,483 201 3,229 263 11,712 464597 28 1,661 289 2,258 317406 11 1,595 365 2,001 376391 1 1,510 171 1,901 17212,277 272 8,551 1,124 20,828 1,396247 36 18 1 265 37– – – – – –3 – – – 3 –250 36 18 1 268 37$ 12,527 $ 308 $ 8,569 $ 1,125 $ 21,096 $ 1,433December 31, 2011Bonds available for sale:U.S. government and government sponsored entities $ 142 $ 1 $ – $ – $ 142 $ 1Obligations of states, municipalities and political subdivisions 174 1 669 72 843 73Non-U.S. governments 3,992 67 424 35 4,416 102Corporate debt 18,099 937 5,907 788 24,006 1,725RMBS 10,624 714 4,148 849 14,772 1,563CMBS 1,697 185 1,724 788 3,421 973CDO/ABS 1,680 50 1,682 423 3,362 473Total bonds available for sale 36,408 1,955 14,554 2,955 50,962 4,910Equity securities available for sale:Common stock 608 100 – – 608 100Preferred stock 6 – – – 6 –Mutual funds 2 1 – – 2 1Total equity securities available for sale 616 101 – – 616 101Total $ 37,024 $ 2,056 $ 14,554 $ 2,955 $ 51,578 $ 5,011At December 31, 2012, we held 3,637 and 198 individual fixed maturity and equity securities, respectively, that werein an unrealized loss position, of which 1,385 individual fixed maturity securities were in a continuous unrealized lossposition for longer than 12 months. We did not recognize the unrealized losses in earnings on these fixed maturitysecurities at December 31, 2012, because we neither intend to sell the securities nor do we believe that it is morelikely than not that it will be required to sell these securities before recovery of their amortized cost basis.Furthermore, we expect to recover the entire amortized cost basis of these securities. In performing this evaluation,we considered the recovery periods for securities in previous periods of broad market declines. For fixed maturitysecurities with significant declines, we performed fundamental credit analysis on a security-by-security basis, whichincluded consideration of credit enhancements, expected defaults on underlying collateral, review of relevant industryanalyst reports and forecasts and other available market data...................................................................................................................................................................................................................................254 AIG 2012 Form 10-K
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American International Group, Inc.2
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KEY FACTS & FIGURES52,000+ $65.7 bi
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■We said we would return to profi
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Financial HighlightsYears Ended Dec
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~63,000AIG EMPLOYEES AROUND THE WOR
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$115.1 millionAVERAGE CLAIMS PAID E
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$10,000MAXIMUM DONATION MADE BY AIG
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American International Group, Inc.F
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AMERICAN INTERNATIONAL GROUP, INC.A
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ITEM 1 / BUSINESS / AIG............
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ITEM 1 / BUSINESS / AIG............
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ITEM 1 / BUSINESS / AIG PROPERTY CA
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ITEM 1 / BUSINESS / AIG PROPERTY CA
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ITEM 1 / BUSINESS / AIG LIFE AND RE
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ITEM 1 / BUSINESS / OTHER OPERATION
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ITEM 1 / BUSINESS / OTHER OPERATION
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ITEM 1 / BUSINESS..................
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ITEM 1 / BUSINESS..................
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ITEM 1 / BUSINESS..................
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ITEM 1 / BUSINESS..................
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ITEM 1 / BUSINESS..................
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ITEM 1A / RISK FACTORS.............
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ITEM 1B / UNRESOLVED STAFF COMMENTS
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ITEM 5 / MARKET FOR REGISTRANT’S
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ITEM 6 / SELECTED FINANCIAL DATA...
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ITEM 6 / SELECTED FINANCIAL DATA...
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ITEM 7 / MANAGEMENT’S DISCUSSION
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ITEM 7 / USE OF NON-GAAP MEASURES..
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ITEM 7 / EXECUTIVE SUMMARY.........
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ITEM 7 / RESULTS OF OPERATIONS.....
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ITEM 7 / LIQUIDITY AND CAPITAL RESO
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ITEM 7 / INVESTMENTS...............
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ITEM 7 / ENTERPRISE RISK MANAGEMENT
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ITEM 7 / CRITICAL ACCOUNTING ESTIMA
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ITEM 7 / GLOSSARY..................
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ITEM 7 / GLOSSARY..................
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ITEM 7A / QUANTITATIVE AND QUALITAT
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ITEM 8 / NOTE 17. TOTAL EQUITY.....
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ITEM 8 / NOTE 18. NONCONTROLLING IN
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ITEM 8 / NOTE 19. EARNINGS (LOSS) P
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ITEM 8 / NOTE 20. STATUTORY FINANCI
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ITEM 8 / NOTE 21. SHARE-BASED COMPE
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ITEM 8 / NOTE 22. EMPLOYEE BENEFITS
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ITEM 8 / NOTE 24. INCOME TAXES.....
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ITEM 8 / NOTE 26. QUARTERLY FINANCI
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ITEM 8 / NOTE 27. INFORMATION PROVI
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PART II............................
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PART IV............................
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SignatureTitle/s/ ARTHUR C. MARTINE
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ExhibitNumber Description Location(
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Condensed Financial Information of
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Condensed Financial Information of
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Notes to Condensed Financial Inform
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Supplementary Insurance Information
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Valuation and Qualifying AccountsFo
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Subsidiaries of RegistrantExhibit 2
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Percentageof VotingSecuritiesJurisd
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Percentageof VotingSecuritiesJurisd
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CONSENT OF INDEPENDENT REGISTERED P
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CERTIFICATIONSI, Robert H. Benmosch
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CERTIFICATIONExhibit 32In connectio
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SECURITIES REGISTERED PURSUANT TO S
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American International Group, Inc.1
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