10-Q 1 maindocument001.htm 10-Q UNITED STATES

 

  

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2014

Commission File Number 1-8787

 

 

 

American International Group, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

13-2592361

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

 

 

175 Water Street, New York, New York

10038

(Address of principal executive offices)

(Zip Code)

 

Registrant’s telephone number, including area code: (212) 770-7000

________________

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes      No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes      No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☑ 

Accelerated filer ☐

Non-accelerated filer ☐

Smaller reporting company ☐

 

 

(Do not check if a

smaller reporting company)

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐     No  

 

As of July 30, 2014, there were 1,426,883,895 shares outstanding of the registrant’s common stock.

 


 

AMERICAN INTERNATIONAL GROUP, INC.

QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY PERIOD ENDED

June 30, 2014

Table of Contents

FORM 10-Q

 

Item Number
Description
Page
PART I — FINANCIAL INFORMATION
 

Item 1

Condensed Consolidated Financial Statements

2

 

Note 1.

Basis of Presentation

7

 

Note 2.

Summary of Significant Accounting Policies

8

 

Note 3.

Segment Information

11

 

Note 4.  

Held-For-Sale Classification and Discontinued Operations

12

 

Note 5.

Fair Value Measurements

14

 

Note 6.

Investments

33

 

Note 7.

Lending Activities

41

 

Note 8.

Variable Interest Entities

42

 

Note 9.

Derivatives and Hedge Accounting

44

 

Note 10.

Contingencies, Commitments and Guarantees

51

 

Note 11.

Equity

59

 

Note 12.

Noncontrolling Interests

63

 

Note 13.

Earnings Per Share

64

 

Note 14.  

Employee Benefits

65

 

Note 15.

Income Taxes

66

 

Note 16.

Information Provided in Connection with Outstanding Debt

68

 

Note 17.

Subsequent Events

75

 

 

 

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of

  

 

Operations

76

 

·       Cautionary Statement Regarding Forward-Looking Information

76

 

·       Use of Non-GAAP Measures

79

 

·       Executive Overview

81

 

·       Results of Operations

93

 

·       Liquidity and Capital Resources

145

 

·       Investments

162

 

·       Enterprise Risk Management

179

 

·       Critical Accounting Estimates

184

 

·       Regulatory Environment

184

 

·       Glossary

186

 

·       Acronyms

190

 

 

 

Item 3

Quantitative and Qualitative Disclosures About Market Risk

191  

Item 4

Controls and Procedures

191  

PART II — OTHER INFORMATION
 

Item 1

Legal Proceedings

192  

Item 1A

Risk Factors

192

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

192

Item 4

Mine Safety Disclosures

192

Item 6

Exhibits

192  

SIGNATURES
193  

  

 

1


 

TABLE OF CONTENTS

 

PART I – FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

  

American International Group, Inc.

Condensed Consolidated Balance Sheets (unaudited)

 

June 30,

December 31,

(in millions, except for share data)

 

2014

 

2013

Assets:

 

 

 

 

Investments:

 

 

 

 

Fixed maturity securities:

 

 

 

 

Bonds available for sale, at fair value (amortized cost: 2014 - $248,923; 2013 - $248,531)

$

 266,304 

$

 258,274 

Other bond securities, at fair value (See Note 6)

 

 21,430 

 

 22,623 

Equity Securities:

 

 

 

 

Common and preferred stock available for sale, at fair value (cost: 2014 - $2,073; 2013 - $1,726)

 

 4,048 

 

 3,656 

Other common and preferred stock, at fair value (See Note 6)

 

 724 

 

 834 

Mortgage and other loans receivable, net of allowance (portion measured at fair value: 2014 - $6; 2013 - $0)

 

 22,937 

 

 20,765 

Other invested assets (portion measured at fair value: 2014 - $8,869; 2013 - $8,598)

 

 33,645 

 

 28,659 

Short-term investments (portion measured at fair value: 2014 - $4,310; 2013 - $6,313)

 

 20,888 

 

 21,617 

Total investments

 

 369,976 

 

 356,428 

 

 

 

 

 

Cash

 

 1,827 

 

 2,241 

Accrued investment income

 

 2,846 

 

 2,905 

Premiums and other receivables, net of allowance

 

 14,077 

 

 12,939 

Reinsurance assets, net of allowance

 

 24,631 

 

 23,829 

Deferred income taxes

 

 19,912 

 

 21,925 

Deferred policy acquisition costs

 

 9,106 

 

 9,436 

Derivative assets, at fair value

 

 1,617 

 

 1,665 

Other assets, including restricted cash of $1,206 in 2014 and $865 in 2013 (portion measured at fair value:

 

 

 

 

2014 - $0; 2013 - $418)

 

 9,399 

 

 9,366 

Separate account assets, at fair value

 

 75,718 

 

 71,059 

Assets held-for-sale

 

 - 

 

 29,536 

Total assets

$

 529,109 

$

 541,329 

Liabilities:

 

 

 

 

Liability for unpaid claims and claims adjustment expense

$

 79,977 

$

 81,547 

Unearned premiums

 

 23,694 

 

 21,953 

Future policy benefits for life and accident and health insurance contracts

 

 42,536 

 

 40,653 

Policyholder contract deposits (portion measured at fair value: 2014 - $898; 2013 - $384)

 

 123,354 

 

 122,016 

Other policyholder funds (portion measured at fair value: 2014 - $8; 2013 - $0)

 

 4,809 

 

 5,083 

Derivative liabilities, at fair value

 

 2,416 

 

 2,511 

Other liabilities (portion measured at fair value: 2014 - $569; 2013 - $933)

 

 29,610 

 

 29,155 

Long-term debt (portion measured at fair value: 2014 - $5,824; 2013 - $6,747)

 

 38,414 

 

 41,693 

Separate account liabilities

 

 75,718 

 

 71,059 

Liabilities held-for-sale

 

 - 

 

 24,548 

Total liabilities

 

 420,528 

 

 440,218 

Contingencies, commitments and guarantees (see Note 10)

 

 

 

 

 

 

 

 

 

Redeemable noncontrolling interests (see Note 12)

 

 - 

 

 30 

 

 

 

 

 

AIG shareholders’ equity:

 

 

 

 

Common stock, $2.50 par value; 5,000,000,000 shares authorized; shares issued: 2014 - 1,906,662,562 and

 

 

 

 

2013 - 1,906,645,689

 

 4,766 

 

 4,766 

Treasury stock, at cost; 2014 - 478,087,172 shares; 2013 - 442,582,366 shares

 

 (16,369) 

 

 (14,520) 

Additional paid-in capital

 

 80,967 

 

 80,899 

Retained earnings

 

 27,286 

 

 22,965 

Accumulated other comprehensive income

 

 11,511 

 

 6,360 

Total AIG shareholders’ equity

 

 108,161 

 

 100,470 

Non-redeemable noncontrolling interests (including $100 associated with businesses held for sale in 2013)

 

 420 

 

 611 

Total equity

 

 108,581 

 

 101,081 

Total liabilities and equity

$

 529,109 

$

 541,329 

 

 

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

2


TABLE OF CONTENTS 

 

Item 1 / Financial statements

 

American International Group, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME  (unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(dollars in millions, except per share data)

 

 

2014

 

 

2013

 

 

2014

 

 

2013

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

Premiums

 

$

 9,458 

 

$

 9,200 

 

$

 18,496 

 

$

 18,572 

Policy fees

 

 

 701 

 

 

 623 

 

 

 1,393 

 

 

 1,238 

Net investment income

 

 

 3,884 

 

 

 3,844 

 

 

 8,080 

 

 

 8,008 

Net realized capital gains (losses):

 

 

 

 

 

 

 

 

 

 

 

 

Total other-than-temporary impairments on available for sale securities

 

 

 (32) 

 

 

 (17) 

 

 

 (82) 

 

 

 (57) 

Portion of other-than-temporary impairments on available for sale

 

 

 

 

 

 

 

 

 

 

 

 

fixed maturity securities recognized in Other comprehensive income (loss)

 

 

 (16) 

 

 

 (10) 

 

 

 (20) 

 

 

 (11) 

Net other-than-temporary impairments on available for sale

 

 

 

 

 

 

 

 

 

 

 

 

securities recognized in net income

 

 

 (48) 

 

 

 (27) 

 

 

 (102) 

 

 

 (68) 

Other realized capital gains (losses)

 

 

 149 

 

 

 1,618 

 

 

 (10) 

 

 

 1,959 

Total net realized capital gains (losses)

 

 

 101 

 

 

 1,591 

 

 

 (112) 

 

 

 1,891 

Aircraft leasing revenue

 

 

 489 

 

 

 1,111 

 

 

 1,602 

 

 

 2,185 

Other income

 

 

 1,472 

 

 

 2,057 

 

 

 2,758 

 

 

 3,494 

Total revenues

 

 

 16,105 

 

 

 18,426 

 

 

 32,217 

 

 

 35,388 

Benefits, claims and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Policyholder benefits and claims incurred

 

 

 6,771 

 

 

 8,090 

 

 

 13,568 

 

 

 14,818 

Interest credited to policyholder account balances

 

 

 963 

 

 

 972 

 

 

 1,918 

 

 

 1,989 

Amortization of deferred acquisition costs

 

 

 1,396 

 

 

 1,353 

 

 

 2,701 

 

 

 2,639 

Other acquisition and insurance expenses

 

 

 2,213 

 

 

 2,245 

 

 

 4,330 

 

 

 4,483 

Interest expense

 

 

 463 

 

 

 535 

 

 

 942 

 

 

 1,112 

Aircraft leasing expenses

 

 

 489 

 

 

 1,093 

 

 

 1,585 

 

 

 2,124 

Loss on extinguishment of debt

 

 

 34 

 

 

 38 

 

 

 272 

 

 

 378 

Net (gain) loss on sale of divested businesses

 

 

 (2,174) 

 

 

 47 

 

 

 (2,178) 

 

 

 47 

Other expenses

 

 

 1,470 

 

 

 888 

 

 

 2,326 

 

 

 1,758 

Total benefits, claims and expenses

 

 

 11,625 

 

 

 15,261 

 

 

 25,464 

 

 

 29,348 

Income from continuing operations before income tax expense

 

 

 4,480 

 

 

 3,165 

 

 

 6,753 

 

 

 6,040 

Income tax expense

 

 

 1,474 

 

 

 425 

 

 

 2,088 

 

 

 1,142 

Income from continuing operations

 

 

 3,006 

 

 

 2,740 

 

 

 4,665 

 

 

 4,898 

Income (loss) from discontinued operations, net of income tax expense

 

 

 30 

 

 

 18 

 

 

 (17) 

 

 

 91 

Net income

 

 

 3,036 

 

 

 2,758 

 

 

 4,648 

 

 

 4,989 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations attributable to

 

 

 

 

 

 

 

 

 

 

 

 

noncontrolling interests

 

 

 (37) 

 

 

 27 

 

 

 (34) 

 

 

 52 

Net income attributable to AIG

 

$

 3,073 

 

$

 2,731 

 

$

 4,682 

 

$

 4,937 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) per common share attributable to AIG:

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

 2.11 

 

$

 1.84 

 

$

 3.24 

 

$

 3.28 

Income (loss) from discontinued operations

 

$

 0.02 

 

$

 0.01 

 

$

 (0.01) 

 

$

 0.06 

Net income attributable to AIG

 

$

 2.13 

 

$

 1.85 

 

$

 3.23 

 

$

 3.34 

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

 2.08 

 

$

 1.83 

 

$

 3.20 

 

$

 3.27 

Income (loss) from discontinued operations

 

$

 0.02 

 

$

 0.01 

 

$

 (0.01) 

 

$

 0.06 

Net income attributable to AIG

 

$

 2.10 

 

$

 1.84 

 

$

 3.19 

 

$

 3.33 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 1,442,397,111 

 

 

 1,476,512,720 

 

 

 1,450,776,629 

 

 

 1,476,491,719 

Diluted

 

 

 1,464,676,330 

 

 

 1,482,246,618 

 

 

 1,468,364,283 

 

 

 1,479,462,612 

Dividends declared per common share

 

$

 0.125 

 

$

 - 

 

$

 0.250 

 

$

 - 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

 

 

 

 

 

 

 

 

 

3


TABLE OF CONTENTS 

 

Item 1 / Financial statements

 

American International Group, Inc.

cONDENSED Consolidated Statements of Comprehensive Income (Loss) (unaudited)

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

 

June 30,

(in millions)

 

 

2014

 

 

2013

 

 

2014

 

 

2013

Net income

 

$

 3,036 

 

$

 2,758 

 

$

 4,648 

 

$

 4,989 

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

Change in unrealized appreciation (depreciation) of fixed maturity investments on

 

 

 

 

 

 

 

 

 

 

 

 

which other-than-temporary credit impairments were taken

 

 

 26 

 

 

 (87) 

 

 

 115 

 

 

 195 

Change in unrealized appreciation (depreciation) of all other investments

 

 

 2,355 

 

 

 (4,446) 

 

 

 5,140 

 

 

 (5,234) 

Change in foreign currency translation adjustments

 

 

 47 

 

 

 (305) 

 

 

 (111) 

 

 

 (578) 

Change in retirement plan liabilities adjustment

 

 

 (2) 

 

 

 17 

 

 

 7 

 

 

 61 

Other comprehensive income (loss)

 

 

 2,426 

 

 

 (4,821) 

 

 

 5,151 

 

 

 (5,556) 

Comprehensive income (loss)

 

 

 5,462 

 

 

 (2,063) 

 

 

 9,799 

 

 

 (567) 

Comprehensive income (loss) attributable to noncontrolling interests

 

 

 (37) 

 

 

 6 

 

 

 (34) 

 

 

 31 

Comprehensive income (loss) attributable to AIG

 

$

 5,499 

 

$

 (2,069) 

 

$

 9,833 

 

$

 (598) 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

4


TABLE OF CONTENTS 

 

Item 1 / Financial statements

 

American International Group, Inc.

CONDENSED Consolidated Statement of Equity  (unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

Total AIG

 

redeemable

 

 

 

 

 

 

 

 

Additional

 

 

 

Other

 

Share-

 

Non-

 

 

 

 

Common

 

Treasury

 

Paid-in

 

Retained

Comprehensive

 

holders'

 

controlling

 

Total

(in millions)

 

Stock

 

Stock

 

Capital

 

Earnings

 

Income

 

Equity

 

Interests

 

Equity

Six Months Ended June 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of year

$

 4,766 

$

 (14,520) 

$

 80,899 

$

 22,965 

$

 6,360 

$

 100,470 

$

 611 

$

 101,081 

Purchase of common stock

 

 - 

 

 (1,849) 

 

 - 

 

 - 

 

 - 

 

 (1,849) 

 

 - 

 

 (1,849) 

Net income (loss) attributable to AIG or other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

noncontrolling interests

 

 - 

 

 - 

 

 - 

 

 4,682 

 

 - 

 

 4,682 

 

 (34) 

 

 4,648 

Dividends

 

 - 

 

 - 

 

 - 

 

 (361) 

 

 - 

 

 (361) 

 

 - 

 

 (361) 

Other comprehensive income (loss)

 

 - 

 

 - 

 

 - 

 

 - 

 

 5,151 

 

 5,151 

 

 - 

 

 5,151 

Net decrease due to deconsolidation

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 (127) 

 

 (127) 

Contributions from noncontrolling interests

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 9 

 

 9 

Distributions to noncontrolling interests

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 (37) 

 

 (37) 

Other

 

 - 

 

 - 

 

 68 

 

 - 

 

 - 

 

 68 

 

 (2) 

 

 66 

Balance, end of period

$

 4,766 

$

 (16,369) 

$

 80,967 

$

 27,286 

$

 11,511 

$

 108,161 

$

 420 

$

 108,581 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of year

$

 4,766 

$

 (13,924) 

$

 80,410 

$

 14,176 

$

 12,574 

$

 98,002 

$

 667 

$

 98,669 

Net income attributable to AIG or other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

noncontrolling interests

 

 - 

 

 - 

 

 - 

 

 4,937 

 

 - 

 

 4,937 

 

 48 

 

 4,985 

Other comprehensive loss

 

 - 

 

 - 

 

 - 

 

 - 

 

 (5,535) 

 

 (5,535) 

 

 (4) 

 

 (5,539) 

Net increase due to consolidation

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 1 

 

 1 

Contributions from noncontrolling interests

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 13 

 

 13 

Distributions to noncontrolling interests

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 - 

 

 (31) 

 

 (31) 

Other

 

 - 

 

 1 

 

 58 

 

 - 

 

 - 

 

 59 

 

 (2) 

 

 57 

Balance, end of period

$

 4,766 

$

 (13,923) 

$

 80,468 

$

 19,113 

$

 7,039 

$

 97,463 

$

 692 

$

 98,155 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

5


TABLE OF CONTENTS 

 

Item 1 / Financial statements

 

American International Group, Inc.

CONDENSED Consolidated Statements of Cash Flows (unaudited)

Six Months Ended June 30,

 

 

 

 

(in millions)

 

2014

 

2013

Cash flows from operating activities:

 

 

 

 

Net income

$

 4,648 

$

 4,989 

(Income) loss from discontinued operations

 

 17 

 

 (91) 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Noncash revenues, expenses, gains and losses included in income:

 

 

 

 

Net gains on sales of securities available for sale and other assets

 

 (456) 

 

 (1,665) 

Net (gain) loss on sale of divested businesses

 

 (2,178) 

 

 47 

Net losses on extinguishment of debt

 

 272 

 

 378 

Unrealized (gains) losses in earnings - net

 

 127 

 

 (1,173) 

Equity in income from equity method investments, net of dividends or distributions

 

 (687) 

 

 (792) 

Depreciation and other amortization

 

 2,343 

 

 2,500 

Impairments of assets

 

 259 

 

 282 

Changes in operating assets and liabilities:

 

 

 

 

Property casualty and life insurance reserves

 

 981 

 

 775 

Premiums and other receivables and payables - net

 

 (782) 

 

 (564) 

Reinsurance assets and funds held under reinsurance treaties

 

 (815) 

 

 (544) 

Capitalization of deferred policy acquisition costs

 

 (3,019) 

 

 (2,953) 

Current and deferred income taxes - net

 

 1,605 

 

 933 

Other, net

 

 (674) 

 

 (448) 

Total adjustments

 

 (3,024) 

 

 (3,224) 

Net cash provided by operating activities

 

 1,641 

 

 1,674 

Cash flows from investing activities:

 

 

 

 

Proceeds from (payments for)

 

 

 

 

Sales or distribution of:

 

 

 

 

Available for sale investments

 

 12,191 

 

 19,164 

Other securities

 

 2,744 

 

 2,850 

Other invested assets

 

 1,925 

 

 3,121 

Divested businesses, net

 

 2,348 

 

 - 

Maturities of fixed maturity securities available for sale

 

 11,460 

 

 12,517 

Principal payments received on and sales of mortgage and other loans receivable

 

 1,646 

 

 1,623 

Purchases of:

 

 

 

 

Available for sale investments

 

 (22,186) 

 

 (35,522) 

Other securities

 

 (290) 

 

 (1,763) 

Other invested assets

 

 (2,236) 

 

 (3,434) 

Mortgage and other loans receivable

 

 (3,445) 

 

 (2,143) 

Net change in restricted cash

 

 (628) 

 

 1,216 

Net change in short-term investments

 

 498 

 

 8,863 

Other, net

 

 (365) 

 

 (421) 

Net cash provided by investing activities

 

 3,662 

 

 6,071 

Cash flows from financing activities:

 

 

 

 

Proceeds from (payments for)

 

 

 

 

Policyholder contract deposits

 

 8,162 

 

 6,757 

Policyholder contract withdrawals

 

 (7,241) 

 

 (8,066) 

Issuance of long-term debt

 

 3,028 

 

 2,338 

Repayments of long-term debt

 

 (6,027) 

 

 (8,319) 

Purchase of Common Stock

 

 (1,849) 

 

 - 

Dividends paid

 

 (361) 

 

 - 

Other, net

 

 (1,514) 

 

 235 

Net cash used in financing activities

 

 (5,802) 

 

 (7,055) 

Effect of exchange rate changes on cash

 

 (3) 

 

 (70) 

Net increase (decrease) in cash

 

 (502) 

 

 620 

Cash at beginning of year

 

 2,241 

 

 1,151 

Change in cash of businesses held-for-sale

 

 88 

 

 (9) 

Cash at end of period

$

 1,827 

$

 1,762 

 

Supplementary Disclosure of Condensed Consolidated Cash Flow Information

 

 

 

 

Cash paid during the period for:

 

 

 

 

Interest

$

 1,727 

$

 2,408 

Taxes

$

 482 

$

 209 

Non-cash investing/financing activities:

 

 

 

 

Interest credited to policyholder contract deposits included in financing activities

$

 1,937 

$

 1,980 

Non-cash consideration received from sale of ILFC

$

 4,586 

$

 - 

See accompanying Notes to Condensed Consolidated Financial Statements.

 

 

 

 

 

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TABLE OF CONTENTS 

 

Item 1 / NOTE 1. BASIS OF PRESENTATION

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

1. BASIS OF PRESENTATION

 

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through one of the most extensive worldwide property‑casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG Common Stock, par value $2.50 per share (AIG Common Stock), is listed on the New York Stock Exchange (NYSE: AIG) and the Tokyo Stock Exchange. Unless the context indicates otherwise, the terms “AIG,” “we,” “us” or “our” mean American International Group, Inc. and its consolidated subsidiaries and the term “AIG Parent” means American International Group, Inc. and not any of its consolidated subsidiaries.

These unaudited condensed consolidated financial statements do not include all disclosures that are normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (GAAP) and should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2013 (2013 Annual Report). The condensed consolidated financial information as of December 31, 2013 included herein has been derived from audited consolidated financial statements in the 2013 Annual Report.

Certain of our foreign subsidiaries included in the condensed consolidated financial statements report on different fiscal-period bases. The effect on our condensed consolidated financial condition and results of operations of all material events occurring at these subsidiaries through the date of each of the periods presented in these condensed consolidated financial statements has been recorded. In the opinion of management, these condensed consolidated financial statements contain normal recurring adjustments, including eliminations of material intercompany accounts and transactions, necessary for a fair statement of the results presented herein.

Interim period operating results may not be indicative of the operating results for a full year. We evaluated the need to recognize or disclose events that occurred subsequent to June 30, 2014 and prior to the issuance of these condensed consolidated financial statements.

Sale of ILFC

 

On May 14, 2014, we completed the sale of 100 percent of the common stock of International Lease Finance Corporation (ILFC) to AerCap Ireland Limited, a wholly owned subsidiary of AerCap Holdings N.V. (AerCap), in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares (the AerCap Transaction). The total value of the consideration was based in part on AerCap’s closing price per share of $47.01 on May 13, 2014. ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Condensed Consolidated Statements of Income through the date of the completion of the sale. ILFC’s assets and liabilities were classified as held-for-sale at December 31, 2013 in the Condensed Consolidated Balance Sheets. See Note 4 herein for further discussion.

Use of Estimates

 

The preparation of financial statements in accordance with GAAP requires the application of accounting policies that often involve a significant degree of judgment. Accounting policies that we believe are most dependent on the application of estimates and assumptions are considered our critical accounting estimates and are related to the determination of:

·          income tax assets and liabilities, including recoverability of our net deferred tax asset and the predictability of future tax operating profitability of the character necessary to realize the net deferred tax asset;

 

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TABLE OF CONTENTS 

 

Item 1 / NOTE 1. BASIS OF PRESENTATION

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

·          liability for unpaid claims and claims adjustment expense;

·          reinsurance assets;

·          valuation of future policy benefit liabilities and timing and extent of loss recognition;

·          valuation of liabilities for guaranteed benefit features of variable annuity products;

·          estimated gross profits to value deferred acquisition costs for investment‑oriented products;

·          impairment charges, including other‑than‑temporary impairments on available for sale securities, impairments on investments in life settlements and goodwill impairment;

·          liability for legal contingencies; and

·          fair value measurements of certain financial assets and liabilities.

These accounting estimates require the use of assumptions about matters, some of which are highly uncertain at the time of estimation. To the extent actual experience differs from the assumptions used, our consolidated financial condition, results of operations and cash flows could be materially affected.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Accounting Standards Adopted During 2014

 

Certain Obligations Resulting from Joint and Several Liability Arrangements

 

In February 2013, the Financial Accounting Standards Board (FASB) issued an accounting standard that requires us to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date as the sum of (i) the amount we agreed to pay on the basis of our arrangement among our co‑obligors and (ii) any additional amount we expect to pay on behalf of our co‑obligors.

We adopted the standard on its required effective date of January 1, 2014. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.

Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of an Investment within a Foreign Entity or of an Investment in a Foreign Entity

 

In March 2013, the FASB issued an accounting standard addressing whether consolidation guidance or foreign currency guidance applies to the release of the cumulative translation adjustment into net income when a parent sells all or a part of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or net assets that are a business (other than a sale of in‑substance real estate) within a foreign entity. The standard also resolves the diversity in practice for the cumulative translation adjustment treatment in business combinations achieved in stages involving foreign entities.

Under the standard, the entire amount of the cumulative translation adjustment associated with the foreign entity should be released into earnings when there has been: (i) a sale of a subsidiary or group of net assets within a foreign entity and the sale represents a complete or substantially complete liquidation of the foreign entity in which the subsidiary or the net assets had

 

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TABLE OF CONTENTS

 

Item 1 / NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

resided; (ii) a loss of a controlling financial interest in an investment in a foreign entity; or (iii) a change in accounting method from applying the equity method to an investment in a foreign entity to consolidating the foreign entity.

We adopted the standard on its required effective date of January 1, 2014 on a prospective basis.  The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.

Investment Company Guidance

 

In June 2013, the FASB issued an accounting standard that amends the criteria a company must meet to qualify as an investment company, clarifies the measurement guidance, and requires new disclosures for investment companies. An entity that is regulated by the Securities and Exchange Commission under the Investment Company Act of 1940 (the 1940 Act) qualifies as an investment company. Entities that are not regulated under the 1940 Act must have certain fundamental characteristics and must consider other characteristics to determine whether they qualify as investment companies. An entity’s purpose and design must be considered when making the assessment.

An entity that no longer meets the requirements to be an investment company as a result of this standard should present the change in its status as a cumulative‑effect adjustment to retained earnings as of the beginning of the period of adoption. An entity that is an investment company should apply the standard prospectively as an adjustment to opening net assets as of the effective date. The adjustment to net assets represents both the difference between the fair value and the carrying amount of the entity’s investments and any amount previously recognized in Accumulated other comprehensive income.

We adopted the standard on its required effective date of January 1, 2014 on a prospective basis.  The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.

Presentation of Unrecognized Tax Benefits

 

In July 2013, the FASB issued an accounting standard that requires a liability related to unrecognized tax benefits to be presented as a reduction to the related deferred tax asset for a net operating loss carryforward or a tax credit carryforward. When the carryforwards are not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the applicable jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with the related deferred tax asset.

We adopted the standard on its required effective date of January 1, 2014 on a prospective basis.   The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows.  

Future Application of Accounting Standards

 

Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure

 

In January 2014, the FASB issued an accounting standard that clarifies that a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, so that the loan is derecognized and the real estate property is recognized, when either (i) the creditor obtains legal title to the residential real estate property upon completion of a foreclosure or (ii) the borrower conveys all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement.  

 

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TABLE OF CONTENTS

 

Item 1 / NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

The standard is effective for interim and annual reporting periods beginning after December 15, 2014. Early adoption is permitted. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows

Reporting Discontinued Operations

 

In April 2014, the FASB issued an accounting standard that changes the requirements for presenting a component or group of components of an entity as a discontinued operation and requires new disclosures. Under the standard, the disposal of a component or group of components of an entity should be reported as a discontinued operation if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. Disposals of equity method investments, or those reported as held-for-sale, will be eligible for presentation as a discontinued operation if they meet the new definition. The standard also requires entities to provide disclosures about a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation. 

The standard is effective prospectively for all disposals of components (or classification of components as held-for-sale) of an entity that occur within interim and annual periods beginning on or after December 15, 2014. Early adoption is permitted, but only for disposals (or classifications of components as held-for-sale) that have not been reported in financial statements previously issued. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

Revenue Recognition

 

In May 2014, the FASB issued an accounting standard that supersedes most existing revenue recognition guidance. The new standard excludes from its scope the accounting for insurance contracts, leases, financial instruments, and other agreements that are governed under other GAAP guidance, but affects the revenue recognition for certain of our other activities.

The standard is effective for interim and annual reporting periods beginning after December 15, 2016 and must be applied retrospectively or through a cumulative effect adjustment to retained earnings recognized at the date of adoption. Early adoption is not permitted. We plan to adopt the standard on its required effective date of January 1, 2017 and are assessing the impact of the standard on our consolidated financial condition, results of operations and cash flows.

Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures

 

In June 2014, the FASB issued an accounting standard that changes the accounting for repurchase-to-maturity transactions and repurchase financing arrangements. It also requires additional disclosures about repurchase agreements and other similar transactions. The new standard aligns the accounting for repurchase-to-maturity transactions and repurchase agreements executed as a repurchase financing with the accounting for other typical repurchase agreements such that they all will be accounted for as secured borrowings. The standard eliminates sale accounting for repurchase-to-maturity transactions and supersedes the standard under which a transfer of a financial asset and a contemporaneous repurchase financing could be accounted for on a combined basis as a forward agreement.

The amendments are effective for interim and annual reporting periods beginning after December 15, 2014. Earlier adoption is not permitted. We plan to adopt the standard on its required effective date of January 1, 2015 and do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

 

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Item 1 / NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

Accounting for Share-Based Payments with Performance Targets

 

In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.

The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. Earlier adoption is permitted. The standard may be applied prospectively to all awards granted or modified after the effective date; or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. We plan to adopt the standard on its required effective date of January 1, 2016. We do not expect the adoption of the standard to have a material effect on our consolidated financial condition, results of operations or cash flows.

3. SEGMENT INFORMATION

 

 

We report the results of our operations consistent with the manner in which our chief operating decision makers review the business to assess performance and to allocate resources through two reportable segments: AIG Property Casualty and AIG Life and Retirement. We evaluate performance based on revenues and pre‑tax income (loss), excluding results from discontinued operations, because we believe this provides more meaningful information on how our operations are performing.

The following tables present our operations by reportable segment:

 

 

2014

 

 

2013

Three Months Ended June 30,

 

 

 

 

Pre-tax Income (Loss)

 

 

 

 

 

Pre-tax Income (Loss)

(in millions)

 

Total Revenues

 

 

from continuing operations

 

 

Total Revenues

 

 

from continuing operations

AIG Property Casualty

 

 

 

 

 

 

 

 

 

 

 

Commercial Insurance

$

 5,889 

 

$

 863 

 

$

 5,696 

 

$

 535 

Consumer Insurance

 

 3,342 

 

 

 157 

 

 

 3,347 

 

 

 91 

Other

 

 719 

 

 

 470 

 

 

 758 

 

 

 579 

Total AIG Property Casualty

 

 9,950 

 

 

 1,490 

 

 

 9,801 

 

 

 1,205 

AIG Life and Retirement

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 2,972 

 

 

 738 

 

 

 3,439 

 

 

 1,177 

Institutional

 

 1,598 

 

 

 511 

 

 

 2,609 

 

 

 542 

Total AIG Life and Retirement

 

 4,570 

 

 

 1,249 

 

 

 6,048 

 

 

 1,719 

Other Operations

 

 

 

 

 

 

 

 

 

 

 

Mortgage Guaranty

 

 260 

 

 

 211 

 

 

 243 

 

 

 75 

Global Capital Markets

 

 286 

 

 

 245 

 

 

 232 

 

 

 175 

Direct Investment book

 

 365 

 

 

 272 

 

 

 815 

 

 

 720 

Corporate & Other

 

 411 

 

 

 956 

 

 

 445 

 

 

 (738) 

Aircraft Leasing

 

 489 

 

 

 - 

 

 

 1,111 

 

 

 18 

Consolidation and elimination

 

 (7) 

 

 

 1 

 

 

 (10) 

 

 

 1 

Total Other Operations

 

 1,804 

 

 

 1,685 

 

 

 2,836 

 

 

 251 

AIG Consolidation and elimination

 

 (219) 

 

 

 56 

 

 

 (259) 

 

 

 (10) 

Total AIG Consolidated

$

 16,105 

 

$

 4,480 

 

$

 18,426 

 

$

 3,165 

 

 

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TABLE OF CONTENTS

 

Item 1 / NOTE 3. SEGMENT INFORMATION

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

 

 

2014

 

 

2013

Six Months Ended June 30,

 

 

 

 

Pre-tax Income (Loss)

 

 

 

 

 

Pre-tax Income (Loss)

(in millions)

 

Total Revenues

 

 

from continuing operations

 

 

Total Revenues

 

 

from continuing operations

AIG Property Casualty

 

 

 

 

 

 

 

 

 

 

 

Commercial Insurance

$

 11,531 

 

$

 1,576 

 

$

 11,469 

 

$

 1,576 

Consumer Insurance

 

 6,600 

 

 

 184 

 

 

 6,853 

 

 

 244 

Other

 

 1,485 

 

 

 1,039 

 

 

 1,447 

 

 

 999 

Total AIG Property Casualty

 

 19,616 

 

 

 2,799 

 

 

 19,769 

 

 

 2,819 

AIG Life and Retirement

 

 

 

 

 

 

 

 

 

 

 

Retail

 

 5,738 

 

 

 1,403 

 

 

 6,442 

 

 

 2,173 

Institutional

 

 3,183 

 

 

 1,078 

 

 

 4,346 

 

 

 1,116 

Total AIG Life and Retirement

 

 8,921 

 

 

 2,481 

 

 

 10,788 

 

 

 3,289 

Other Operations

 

 

 

 

 

 

 

 

 

 

 

Mortgage Guaranty

 

 509 

 

 

 288 

 

 

 474 

 

 

 119 

Global Capital Markets

 

 345 

 

 

 274 

 

 

 505 

 

 

 402 

Direct Investment book

 

 830 

 

 

 627 

 

 

 1,226 

 

 

 1,032 

Corporate & Other

 

 793 

 

 

 132 

 

 

 906 

 

 

 (1,746) 

Aircraft Leasing

 

 1,602 

 

 

 17 

 

 

 2,185 

 

 

 61 

Consolidation and elimination

 

 (15) 

 

 

 2 

 

 

 (19) 

 

 

 2 

Total Other Operations

 

 4,064 

 

 

 1,340 

 

 

 5,277 

 

 

 (130) 

AIG Consolidation and elimination

 

 (384) 

 

 

 133 

 

 

 (446) 

 

 

 62 

Total AIG Consolidated

$

 32,217 

 

$

 6,753 

 

$

 35,388 

 

$

 6,040 

4. HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS

 

Held-For-Sale Classification

 

On May 14, 2014, we completed the sale of 100 percent of the common stock of ILFC to AerCap Ireland Limited, a wholly owned subsidiary of AerCap, in exchange for total consideration of approximately $7.6 billion, including cash and 97.6 million newly issued AerCap common shares, valued at approximately $4.6 billion based on AerCap’s closing price per share of $47.01 on May 13, 2014. Net cash proceeds to AIG were $2.4 billion after the settlement of intercompany loans, and AIG recorded pre-tax and after-tax gains of approximately $2.2 billion and $1.4 billion, respectively, for the three- and six-month periods ended June 30, 2014. In connection with the AerCap Transaction, we entered into a five-year credit agreement for a senior unsecured revolving credit facility between AerCap Ireland Capital Limited, as borrower, and AIG Parent as lender, (the Revolving Credit Facility). The Revolving Credit Facility provides for an aggregate commitment of $1.0 billion and permits loans for general corporate purposes after the closing of the AerCap Transaction. At June 30, 2014, no amounts were outstanding under the Revolving Credit Facility.

As a result of the AerCap Transaction, we own approximately 46 percent of the outstanding common stock of AerCap. This common stock is subject to certain restrictions as to the amount and timing of potential sales as set forth in the Stockholders’ Agreement and Registration Rights Agreement between AIG and AerCap. We account for our interest in AerCap using the equity method of accounting. The difference between the carrying amount of our investment in AerCap common stock and our share of the underlying equity in the net assets of AerCap was approximately $1.4 billion at June 30, 2014. Approximately $0.4 billion of this difference was allocated to the assets and liabilities of AerCap based on their respective fair values and is being amortized into income over the estimated lives of the related assets and liabilities.  The remainder was allocated to goodwill. 

 

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Item 1 / NOTE 4. HELD-FOR-SALE CLASSIFICATION AND DISCONTINUED OPERATIONS

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

ILFC’s results of operations are reflected in Aircraft leasing revenue and Aircraft leasing expenses in the Condensed Consolidated Statements of Income through the date of the completion of the sale. ILFC’s assets and liabilities were classified as held-for-sale at December 31, 2013 in the Condensed Consolidated Balance Sheets.

The following table summarizes the components of ILFC assets and liabilities held-for-sale:

 

 

December 31,

(in millions)

 

2013

Assets:

 

 

Equity securities

$

 3 

Mortgage and other loans receivable, net

 

 229 

Flight equipment primarily under operating leases, net of accumulated depreciation

 

 35,508 

Short-term investments

 

 658 

Cash

 

 88 

Premiums and other receivables, net of allowance

 

 318 

Other assets

 

 2,066 

Assets held-for-sale

 

 38,870 

Less: Loss accrual

 

 (9,334) 

Total assets held-for-sale

$

 29,536 

Liabilities:

 

 

Other liabilities

$

 3,127 

Long-term debt

 

 21,421 

Total liabilities held-for-sale

$

 24,548 

Discontinued Operations

 

In connection with the 2010 sale of American Life Insurance Company (ALICO) to MetLife, Inc. (MetLife), we recognized the following income (loss) from discontinued operations:

 

Three Months Ended

Six Months Ended

 

June 30,

June 30,

(in millions)

 

2014

 

2013

 

2014

 

2013

Revenues:

 

 

 

 

 

 

 

 

Gain on sale

$

 52 

$

 28 

$

 51 

$

 145 

Income from discontinued operations, before income tax expense

 

 52 

 

 28 

 

 51 

 

 145 

Income tax expense

 

 22 

 

 10 

 

 68 

 

 54 

Income (loss) from discontinued operations, net of income tax

$

 30 

$

 18 

$

 (17) 

$

 91 

 

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Item 1 / NOTE 5. FAIR VALUE MEASUREMENTS

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

5. FAIR VALUE MEASUREMENTS

 

  

Fair Value Measurements on a Recurring Basis

 

Assets and liabilities recorded at fair value in the Condensed Consolidated Balance Sheets are measured and classified in accordance with a fair value hierarchy consisting of three “levels” based on the observability of valuation inputs:

·     Level 1:  Fair value measurements based on quoted prices in active markets that we have the ability to access for identical assets or liabilities. Market price data generally is obtained from exchange or dealer markets. We do not adjust the quoted price for such instruments.

·     Level 2:  Fair value measurements based on inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, such as interest rates and yield curves that are observable at commonly quoted intervals.

·     Level 3:  Fair value measurements based on valuation techniques that use significant inputs that are unobservable. Both observable and unobservable inputs may be used to determine the fair values of positions classified in Level 3. The circumstances for using these measurements include those in which there is little, if any, market activity for the asset or liability. Therefore, we must make certain assumptions about the inputs a hypothetical market participant would use to value that asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

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TABLE OF CONTENTS

 

Item 1 / NOTE 5. FAIR VALUE MEASUREMENTS

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

 

Assets and Liabilities Measured at Fair Value on a Recurring Basis

 

The following table presents information about assets and liabilities measured at fair value on a recurring basis and indicates the level of the fair value measurement based on the observability of the inputs used:

June 30, 2014

 

  

 

  

 

  

Counterparty

Cash

 

(in millions)

 

 Level 1

 

Level 2

 

Level 3

 

Netting(a)

Collateral

 

Total

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Bonds available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and government sponsored entities

$

 24 

$

 2,801 

$

 - 

$

 - 

$

 - 

$

 2,825 

Obligations of states, municipalities and political subdivisions

 

 - 

 

 27,731 

 

 1,991 

 

 - 

 

 - 

 

 29,722 

Non-U.S. governments

 

 604 

 

 21,551 

 

 25 

 

 - 

 

 - 

 

 22,180 

Corporate debt

 

 - 

 

 147,560 

 

 2,196 

 

 - 

 

 - 

 

 149,756 

RMBS

 

 - 

 

 21,363 

 

 16,328 

 

 - 

 

 - 

 

 37,691 

CMBS

 

 - 

 

 6,477 

 

 5,917 

 

 - 

 

 - 

 

 12,394 

CDO/ABS

 

 - 

 

 4,305 

 

 7,431 

 

 - 

 

 - 

 

 11,736 

Total bonds available for sale

 

 628 

 

 231,788 

 

 33,888 

 

 - 

 

 - 

 

 266,304 

Other bond securities:

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government and government sponsored entities

 

 89 

 

 5,291 

 

 -