AIG · 10-Q · 2026Q2 · Full report
Fixed Income Credit Exposure
AMERICAN INTERNATIONAL GROUP, INC. · 2026-08-07 · Importance 13 · Surprise 6
AIG’s fixed-maturity portfolio remained concentrated in investment-grade securities, with approximately 92 percent of securities held by U.S. entities rated investment grade. Approximately 93 percent of securities held by foreign entities were investment grade or internally assessed as equivalent, while 16 percent of the foreign portfolio consisted of sovereign securities supporting local policy liabilities. Aggregate European fixed-maturity exposure was $12.9 billion at June 30, 2026, including $7.6 billion in Euro-Zone countries and $5.2 billion in the remainder of Europe. Corporate debt securities totaled $38.3 billion, of which approximately 89 percent were investment grade.
Key facts
- Bonds available for sale - amortized cost (note): amortized cost 2026 - $72,710; 2025 - $71,772; fair value $71,472 as of June 30, 2026 and $71,032 as of December 31, 2025. source
- At June 30, 2026 and December 31, 2025, fair value of bonds available for sale that were below investment grade or not rated totaled $5.7 billion and $5.9 billion, respectively. source
- Fair value of bonds available for sale held by us that were below investment grade or not rated at June 30, 2026: $5.7 billion. source
- Fair value of bonds available for sale held by us that were below investment grade or not rated at December 31, 2025: $5.9 billion. source
- Included in below investment grade securities at June 30, 2026 were securities in an unrealized loss position with amortized cost $2.3 billion and fair value $2.2 billion, resulting in a net pre-tax unrealized investment loss of $100 million. source
- At June 30, 2026 and December 31, 2025, approximately 89 percent and 88 percent, respectively, of corporate debt investments were rated investment grade. source
- Below investment grade securities comprised 8 percent of the fair value of the fixed maturity investment portfolio at both June 30, 2026 and December 31, 2025. source
- CDS is the acronym for Credit Default Swap. source