Investor Presentaiton
Life and Retirement: Individual Retirement APTI decreased due to unfavorable
equity markets and widening credit spreads; fixed annuity sales were lower due to
disciplined pricing which resulted in negative net flows
($ in millions)
Premiums and deposits
Premiums
Policy fees
Key Takeaways:
■ APTI is lower than 1Q19 as a result of unfavorable impacts from equity
markets driving higher deferred acquisition cost (DAC) and sales inducement
amortization and higher reserves, along with widening credit spreads driving
lower income on FVO securities
■ Net flows, excluding Retail Mutual Funds, are slightly negative in 1Q20 and
unfavorable compared to 1Q19 due to lower interest rates in 1Q20, driving
lower Fixed Annuity sales
1Q19
1Q20
$4,186
$3,116
11
41
193
207
Net investment income
999
975
Advisory fee and other income
148
147
Total adjusted revenues
1,351
1,370
Benefits, losses and expenses
843
1,064
Adjusted pre-tax income (APTI)
$508
$306
■ Continued spread compression as higher yielding investment assets roll off
the large in-force portfolio, the result of maturities, calls and structured
paydowns
Net Flows ($B)
Assets Under Administration (AUA - $B)
■ AUA is flat with 1Q19 resulting from year over year new business growth,
primarily index annuities, offset by equity market decline late in 1Q20
Premiums and Deposits
1Q19
$1.8
$0.6
$1.4
$0.4 $4.2
1Q20
$0.6
$0.9
$1.3
$0.3 $3.1
Surrender and Other Withdrawals
1Q19
$1.0
$0.9 $0.2 $1.1
$3.2
1Q20
$0.9
$1.1
$0.2
$1.8
$3.9
Net Flows1
1Q19
$0.1
1Q20
($1.6)
■Fixed Annuities Variable Annuities Index Annuities Retail Mutual Funds
-0.1%
$146.4
$13.9
$47.3
$85.2
$146.2
$7.8
$43.2
$95.2
1Q19
1Q20
■General Accounts
■Separate Accounts
Retail Mutual Funds
1.97%
Base Net Investment Spread
3.19%
2.83%
1.75%
1Q19
1Q20
AIG
1) Includes death and other contract benefits. Net Flows excluding Retail Mutual Funds
is ($98M) in 1Q20 compared with $817M in 1Q19.
■Fixed Annuities
Variable and Index Annuities
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