AIG Earnings and Investment Portfolio Report
Life and Retirement: Strong increase in APTI compared to 4Q19 driven by higher
NII and lower GOE, partially offset by base spread compression and COVID-19
mortality
Adjusted Pre-Tax Income (APTI) ($M)
+20% or
$1,027
$858
$127
+$169M
$82
$30
$67
$318
$209
$500
$552
Key Takeaways
4Q20 APTI reflects higher NII, APTI basis, driven by private equity
returns, which are reported on a one quarter lag, and favorable
impacts from lower interest rates and tighter credit spreads
resulting in higher call and tender income; and lower GOE. The
increase in APTI was partially offset by base spread compression
and, in Life Insurance, impacts from COVID-19 mortality claims
Favorable GOE reflects AIG 200 efficiencies and other cost
savings as a result of COVID-19
Premiums and deposits rose 4% benefitting from strong GIC1
demand in Institutional Markets, while Individual and Group
Retirement continue to recover from the broad industry sales
channel disruptions resulting from COVID-19 and headwinds from
low interest rates
4Q19
■Individual Retirement
4Q20
Group Retirement
■Life Insurance
■Institutional Markets
Premiums and Deposits ($M)
Noteworthy Items ($M, unless noted)
$7,125
+4%
$7,400
4Q19
4Q20
Variance
$551
$1,287
$1,106
$1,156
Return on adjusted segment common equity
(Annualized)
14.3%
16.0%
1.7%
-5%
$2,312
$2,199
Noteworthy Items ($M)
-13%
Return on alternative investments
$3,156
$2,758
4Q19
4Q20
Other yield enhancements
Includes:
Fair value changes on Fixed Maturity
Securities Other accounted under FVO
SA
4Q19
4Q20
Variance
$
101 $
293 $
192
$
93 $
206 $
113
■Individual Retirement Group Retirement
All other yield enhancements
$
16 $
19 $
3
$
77 $
187 $
110
Life Insurance
■Institutional Markets
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.
1) GIC is defined as Guaranteed Investment Contracts.
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