To What Degree Were AIG's Operating Insurance Subsidiaries Sound? (Part 6)

| About: American International (AIG)

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Realized Capital Losses, Excluding Securities Lending at the Life Companies

Sum of 2007YE Surplus

Other Realized Capital Losses / Surplus

First SunAmerica LIC

501

-81%

The Variable Annuity LIC

2,838

-61%

AIG Annuity IC

3,729

-49%

Am Int LIC of NY

553

-41%

AIG LIC

440

-39%

American General L&A IC

471

-28%

SunAmerica LIC

4,716

-17%

American General LIC

5,704

-16%

American Life IC

6,718

-11%

Merit LIC

705

-4%

Pacific Union Assurance Co

67

-1%

Click to enlarge

If the securities lending losses weren’t enough, the life companies ran asset portfolios where many risks did not pan out.

Much of that came from corporate bonds (including junk bonds), CMBS, and non-conforming RMBS. The domestic life companies pruned areas of their portfolios in order to prevent greater losses later.

>>Continue to Part 7