American International Group, Inc.  and Subsidiaries Notes to Consolidated Financial Statements Continued 13.
Fair Value of Financial Instruments Continued The carrying values and fair values of AIG’s financial instruments at December 31, 2006 and 2005 were as follows:
## Table 0 ##
(a) The carrying value of all other financial instruments approximates fair value.
(b) Excludes aircraft asset investments held by non-Financial Services subsidiaries.14.
Stock Compensation Plans At December 31, 2006, AIG employees could be awarded compensation pursuant to six different stock-based compensation plan arrangements: (i) AIG 1999 Stock Option Plan, as amended (1999 Plan); (ii) AIG 1996 Employee Stock Purchase Plan, as amended (1996 Plan); (iii) AIG 2002 Stock Incentive Plan, as amended (2002 Plan) under which AIG has issued time-vested restricted stock units (RSUs) and performance restricted stock units (performance RSUs); (iv) SICO’s Deferred Compensation Pro?t Participation Plans (SICO Plans); (v) AIG’s 2005-2006 Deferred Compensation Pro?t Participation Plan (AIG DCPPP) and (vi) the AIG Partners Plan.
The AIG DCPPP was adopted as a replacement for the SICO Plans for the 2005-2006 period, and the AIG Partners Plan replaces the AIG DCPPP.
Stock-based compensation earned under the AIG DCPPP and the AIG Partners Plan is issued as awards under the 2002 Plan.
AIG currently settles share option exercises and other share awards to participants through the issuance of shares it has previously acquired and holds in its treasury account, except for share awards made by SICO, which are settled by SICO.
At December 31, 2006, AIG’s non-employee directors received stock-based compensation in two forms, options granted pursuant to the 1999 Plan and grants of AIG common stock with delivery deferred until retirement from the Board, pursuant to the AIG Director Stock Plan, which was approved by the shareholders at the 2004 Annual Meeting of Shareholders.
From January 1, 2003 through December 31, 2005, AIG accounted for share-based payment transactions with employees under FAS No.123, ‘‘Accounting for Stock-Based Compensation.
’’Share-based employee compensation expense from option awards was not recognized in the statement of income in prior periods.
Effective January 1, 2006, AIG adopted the fair value recognition provisions of FAS 123R.
FAS 123R requires that companies use a fair value method to value share-based payments and recognize the related compensation expense in net earnings.
AIG adopted FAS 123R using the modi?ed prospective application method, and accordingly, ?nancial statement amounts for the prior periods presented have not been restated to re?ect the fair value method of expensing share-based compensation under FAS 123R.
The modi?ed prospective application method provides for the recogni- tion of the fair value with respect to share-based compensation
American International Group, Inc. , and Subsidiaries Notes to Consolidated Financial Statements — (Continued) AIG maintains a shelf registration statement in Japan, providing for the issuance of up to Japanese Yen 300 billion principal amount of senior notes, of which the equivalent of $562 million was outstanding at December 31, 2008.
(iii) Junior subordinated debt: During 2007 and 2008, AIG issued an aggregate of $12.5 billion of junior subordinated debentures denominated in U. S.  dollars, British Pounds and Euros in eight series of securities.
In connection with each series of junior subordinated debentures, AIG entered into a Replacement Capital Covenant (RCC) for the benefit of the holders of AIG’s 6.25 percent senior notes due 2036.
The RCCs provide that AIG will not repay, redeem, or purchase the applicable series of junior subordinated debentures on or before a specified date, unless AIG has received qualifying proceeds from the sale of replacement capital securities.
In May 2008, AIG raised a total of approximately $20 billion through the sale of (i) 196,710,525 shares of AIG common stock in a public offering at a price per share of $38; (ii) 78.4 million Equity Units in a public offering at a price per unit of $75; and (iii) $6.9 billion in unregistered offerings of junior subordinated debentures in three series.
The Equity Units and junior subordinated debentures receive hybrid equity treatment from the major rating agencies under their current policies but are recorded as long-term debt on the consolidated balance sheet.
The Equity Units consist of an ownership interest in AIG junior subordinated debentures and a stock purchase contract obligating the holder of an equity unit to purchase, and obligating AIG to sell, a variable number of shares of AIG common stock on three dates in 2011 (a minimum of 128,944,480 shares and a maximum of 154,738,080 shares, subject to antidilution adjustments).
AIGFP Borrowings under obligations of guaranteed investment agreements: Borrowings under obligations of GIAs, which are guaranteed by AIG, are recorded at fair value.
Obligations may be called at various times prior to maturity at the option of the counterparty.
Interest rates on these borrowings are primarily fixed, vary by maturity, and range up to 9.8 percent.
At December 31, 2008, the fair value of securities pledged as collateral with respect to these obligations approximated $8.4 billion.
AIGFP’s debt, excluding GIAs, outstanding are as follows:
## Table 1 ##
AIGFP economically hedges its notes and bonds.
AIG guarantees all of AIGFP’s debt.
Hybrid financial instrument liabilities: AIGFP’s notes and bonds include structured debt instruments whose payment terms are linked to one or more financial or other indices (such as an equity index or commodity index or another measure that is not considered to be clearly and closely related to the debt instrument).
These notes contain embedded derivatives that otherwise would be required to be accounted for separately under FAS 133.
Upon AIG’s early adoption of FAS 155, AIGFP elected the fair value option for these notes.
The notes that are accounted for using the fair value option are reported separately under hybrid financial instrument liabilities at fair value.
ITEM 7 / RESULTS OF OPERATIONS / CONSUMER INSURANCE Total net flows for Retirement decreased in 2014 compared to 2013, as higher surrenders and withdrawals in 2014, primarily in the Group Retirement and Retail Mutual Fund product lines, resulted in a significant decrease in net flows compared to 2013.
Net flows for Retirement increased in 2013 compared to 2012, primarily due to the increase in premiums and deposits, partially offset by higher surrenders in Group Retirement and Retail Mutual Funds.
See below for additional discussion of each product line.
Premiums and Deposits and Net Flows by Product Line A discussion of the significant variances in premiums and deposits and net flows for each product line follows: Fixed Annuities deposits increased in 2014 compared to 2013 due to modest increases in interest rates and steepening of the yield curve in the first half of 2014, compared to lower rates in the prior year, particularly in the first half of 2013.
The increase in Fixed Annuities deposits in 2013 compared to 2012 was due to the increase in market interest rates in the second half of 2013.
Fixed Annuities net flows continued to be negative, but improved slightly in 2014 compared to 2013, and improved significantly in 2013 compared to 2012, primarily due to the increased deposits.
Retirement Income Solutions premiums and deposits and net flows increased significantly in 2014 compared to 2013, and in 2013 compared to 2012, reflecting a continued high volume of variable and index annuity sales, which have benefitted from consumer demand for retirement products with guaranteed benefit features, product enhancements, expanded distribution and a more favorable competitive environment.
The improvement in the surrender rate (see Surrender Rates below) was primarily due to the significant growth in account value driven by the high volume of sales, which has increased the proportion of business that is within the surrender charge period.
Retail Mutual Fund deposits and net flows decreased in 2014 compared to 2013 and increased in 2013 compared to 2012.
These variances were primarily driven by activity in the Focused Dividend Strategy Fund, which had record sales in 2013.
In 2014, the relative performance of the fund declined, putting pressure on sales and withdrawal activity.
Group Retirement net flows decreased in 2014 compared to 2013, primarily due to higher group surrender activity, as well as lower premiums and deposits.
The increase in surrenders and surrender rate for 2014 compared to 2013 included large group surrenders of approximately $2.7 billion, but reserves of this product line grew in 2014 compared to 2013, and the 2014 surrender activity is not expected to have a significant impact on pre-tax operating income in 2015.
The large group market has become increasingly competitive and has been impacted by the consolidation of healthcare providers and other employers in our target markets.
This trend of heightened competition is expected to continue in 2015 as plan sponsors perform reviews of existing retirement plan relationships.
The decrease in Group Retirement net flows in 2013 compared to 2012 was primarily a result of higher surrenders of individual participants as well as large group surrenders.
Surrender Rates The following table presents reserves for annuity product lines by surrender charge category:
## Table 2 ##
(a) Excludes mutual fund assets under management of $14.6 billion and $15.1 billion at December 31, 2014 and 2013, respectively.
(b) Group Retirement Products in this category include reserves of approximately $6.2 billion at both December 31, 2014 and 2013 that are subject to 20 percent annual withdrawal limitations.
ITEM 5 | Market for Registrant?s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32 AIG | 2017 Form 10-K As of December 31, 2017, approximately $2.3 billion remained under our share repurchase authorization.
We did not repurchase any shares of AIG Common Stock from January 1, 2018 to February 8, 2018.
Shares may be repurchased from time to time in the open market, private purchases, through forward, derivative, accelerated repurchase or automatic repurchase transactions or otherwise (including through the purchase of warrants).
Certain of our share repurchases have been and may from time to time be effected through Exchange Act Rule 10b5-1 repurchase plans.
The timing of any future share repurchases will depend on market conditions, our business and strategic plans, financial condition, results of operations, liquidity and other factors.
For additional information on our share purchases see Note 17 to the Consolidated Financial Statements.
Common Stock Performance Graph The following Performance Graph compares the cumulative total shareholder return on AIG Common Stock for a five-year period (December 31, 2012 to December 31, 2017) with the cumulative total return of the S&P?s 500 stock index (which includes AIG), the S&P Property and Casualty Insurance Index (S&P P&C Index) and the S&P Life and Health Insurance Index (S&P L&H Index).
Value of $100 Invested on December 31, 2012 (All $ as of December 31st)

Tables referenced above, in order (Table 0 first):
<table><tr><td></td><td colspan="2"> 2006</td><td colspan="2">2005</td></tr><tr><td><i>(in millions)</i></td><td>Carrying Value<sup>(a)</sup></td><td>Fair Value</td><td>Carrying Value<sup>(a)</sup></td><td>Fair Value</td></tr><tr><td>Assets:</td><td></td><td></td><td></td><td></td></tr><tr><td>Fixed maturities</td><td>$417,865</td><td>$418,582</td><td>$385,680</td><td>$386,199</td></tr><tr><td>Equity securities</td><td>30,222</td><td>30,222</td><td>23,588</td><td>23,588</td></tr><tr><td>Mortgage loans on real estate, policy and collateral loans</td><td>28,418</td><td>28,655</td><td>24,909</td><td>26,352</td></tr><tr><td>Securities available for sale</td><td>47,205</td><td>47,205</td><td>37,511</td><td>37,511</td></tr><tr><td>Trading securities</td><td>5,031</td><td>5,031</td><td>6,499</td><td>6,499</td></tr><tr><td>Spot commodities</td><td>220</td><td>220</td><td>92</td><td>96</td></tr><tr><td>Unrealized gain on swaps, options and forward transactions</td><td>19,252</td><td>19,252</td><td>18,695</td><td>18,695</td></tr><tr><td>Trading assets</td><td>2,468</td><td>2,468</td><td>1,204</td><td>1,204</td></tr><tr><td>Securities purchased under agreements to resell</td><td>33,702</td><td>33,702</td><td>14,547</td><td>14,547</td></tr><tr><td>Finance receivables, net of allowance</td><td>29,573</td><td>26,712</td><td>27,995</td><td>27,528</td></tr><tr><td>Securities lending collateral</td><td>69,306</td><td>69,306</td><td>59,471</td><td>59,471</td></tr><tr><td>Other invested assets<sup>(b)</sup></td><td>40,330</td><td>40,637</td><td>29,186</td><td>29,408</td></tr><tr><td>Short-term investments</td><td>25,249</td><td>25,249</td><td>15,342</td><td>15,342</td></tr><tr><td>Cash</td><td>1,590</td><td>1,590</td><td>1,897</td><td>1,897</td></tr><tr><td>Liabilities:</td><td></td><td></td><td></td><td></td></tr><tr><td>Policyholders’ contract deposits</td><td>244,658</td><td>239,964</td><td>227,027</td><td>223,244</td></tr><tr><td>Borrowings under obligations of guaranteed investment agreements</td><td>20,664</td><td>20,684</td><td>20,811</td><td>22,373</td></tr><tr><td>Securities sold under agreements to repurchase</td><td>22,710</td><td>22,710</td><td>11,047</td><td>11,047</td></tr><tr><td>Trading liabilities</td><td>3,141</td><td>3,141</td><td>2,546</td><td>2,546</td></tr><tr><td>Hybrid financial instrument liabilities</td><td>8,856</td><td>8,856</td><td>—</td><td>—</td></tr><tr><td>Securities and spot commodities sold but not yet purchased</td><td>4,076</td><td>4,076</td><td>5,975</td><td>5,975</td></tr><tr><td>Unrealized loss on swaps, options and forward transactions</td><td>11,401</td><td>11,401</td><td>12,740</td><td>12,740</td></tr><tr><td>Trust deposits and deposits due to banks and other depositors</td><td>5,249</td><td>5,261</td><td>4,877</td><td>5,032</td></tr><tr><td>Commercial paper</td><td>13,029</td><td>13,029</td><td>9,208</td><td>9,208</td></tr><tr><td>Notes, bonds, loans and mortgages payable</td><td>104,690</td><td>106,494</td><td>78,439</td><td>79,518</td></tr><tr><td>Securities lending payable</td><td>70,198</td><td>70,198</td><td>60,409</td><td>60,409</td></tr></table>
<table><tr><td> At December 31, 2008</td><td></td><td> Range of </td><td rowspan="2"> U.S. Dollar   Carrying Value  (Dollars in millions)</td></tr><tr><td> Range of Maturities</td><td> Currency</td><td> Interest Rates</td></tr><tr><td>2009-2035</td><td>U.S. dollar</td><td>0.01-8.25%</td><td>$4,167</td></tr><tr><td>2009-2047</td><td>Euro</td><td>1.59-7.65</td><td>2,866</td></tr><tr><td>2009-2023</td><td>Japanese yen</td><td>0.01-2.50</td><td>2,205</td></tr><tr><td>2009-2015</td><td>Swiss franc</td><td>0.25-2.79</td><td>112</td></tr><tr><td>2009-2015</td><td>Australian dollar</td><td>0.01-2.65</td><td>107</td></tr><tr><td>2009-2012</td><td>Other</td><td>0.01-7.73</td><td>81</td></tr><tr><td>Total</td><td></td><td></td><td>$9,538</td></tr></table>
<table><tr><td> At December 31,</td><td rowspan="2">2014 Group Retirement Products (a)</td><td colspan="2"></td><td rowspan="2">2013 Group Retirement Products (a)</td><td colspan="2"></td></tr><tr><td><i>(in millions)</i></td><td>Fixed Annuities</td><td>Retirement Income Solutions</td><td>Fixed Annuities</td><td>Retirement Income Solutions</td></tr><tr><td>No surrender charge<sup>(b)</sup></td><td>$61,751</td><td>$34,396</td><td>$1,871</td><td>$60,962</td><td>$30,906</td><td>$2,065</td></tr><tr><td>0% - 2%</td><td>1,648</td><td>2,736</td><td>17,070</td><td>1,508</td><td>2,261</td><td>16,839</td></tr><tr><td>Greater than 2% - 4%</td><td>1,657</td><td>2,842</td><td>4,254</td><td>1,967</td><td>4,349</td><td>2,734</td></tr><tr><td>Greater than 4%</td><td>5,793</td><td>12,754</td><td>26,165</td><td>5,719</td><td>16,895</td><td>19,039</td></tr><tr><td>Non-surrenderable</td><td>770</td><td>3,464</td><td>151</td><td>315</td><td>2,758</td><td>67</td></tr><tr><td>Total reserves</td><td>$71,619</td><td>$56,192</td><td>$49,511</td><td>$70,471</td><td>$57,169</td><td>$40,744</td></tr></table>

Question: Which year is Equity securities in Carrying Value the most?
Answer: 2006