AIG Earnings and Investment Portfolio Report
Life and Retirement: Stable APTI in 2020 despite COVID-19 mortality and base spread
compression impacts that were largely offset by strong equity markets and higher call and
tender income
Adjusted Pre-Tax Income (APTI) ($M)
-1% or
$3,553
$3,531
-$22M
$308
$438
$331
■
$142
$937
$1,013
$1,977
FY 2019
Individual Retirement
■Life Insurance
$1,938
FY 2020
Group Retirement
■Institutional Markets
Key Takeaways
APTI reflects the impact of COVID-19 mortality, base spread
compression and lower fair value option bond income, offset by
higher private equity returns, and favorable impacts from lower
interest rates and tighter credit spreads resulting in higher call and
tender income
2020 premiums and deposits were negatively impacted by industry
sales channel disruptions resulting from COVID-19 and headwinds
from low interest rates
Premiums and Deposits ($M)
Noteworthy Items ($M, unless noted)
2019
2020
Variance
-11%
$30,349
$27,125
$2,822
Return on adjusted segment common equity
(Annualized)
14.5%
13.6%
-0.9%
$4,282
$4,846
-10%
Noteworthy Items ($M)
2019
2020
Variance
$8,346
$4,413
$7,496
Annual actuarial assumption updates
$
(144) $
(107) $
37
-30%
$14,899
$10,370
Return on alternative investments
Other yield enhancements
Includes:
$
416 $
591 $
175
$
583 $
682 $
99
FY 2019
FY 2020
Fair value changes on Fixed Maturity
Securities Other accounted under FVO
■Individual Retirement Group Retirement
■Life Insurance
■Institutional Markets
All other yield enhancements
EA
$
192 $
58 $
(134)
$
391 $
624 $
233
Note (March 15, 2021): Return on adjusted segment common equity has been updated to reflect revisions to segment balance sheets and debt and interest
AIG allocated to segments.
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