AIG Earnings and Investment Portfolio Report
Life and Retirement: Individual and Group Retirement APTI up 10% and 52%, respectively,
driven by strong equity markets and favorable impacts from lower interest rates and tighter
credit spreads, partially offset by base spread compression
Premiums and
Deposits ($M)
Individual Retirement*
Net Flows
($M)
Assets Under
Administration
($B)
APTI ($M)
$2,758
(-13% vs. 4Q19)
($878)
$ 163.4
$552
Base Net Investment Spreads
(+5% vs. 4Q19) (+10% vs. 4Q19)
Total Net Investment Spreads
2.89%
3.31% 3.28% 3.44%
2.55% 2.59%
1.75%
2.02% 2.19% 2.28%
1.43% 1.40%
Key Takeaways
4Q20 vs 4Q19 APTI results reflect
Favorable impacts from:
☐
Equity markets resulting in higher fees and favorable alternatives, mainly
from private equity returns
Lower interest rates and tighter credit spreads
Total investment spreads
Unfavorable impacts from:
Base spread compression
Other Key Metrics
Favorable impacts from:
Assets under administration growth
Net flows
Fixed Annuities
Variable and Index
Annuities
Fixed Annuities
Variable and Index
■4Q19 3Q20 4Q20
■ 4Q19
3Q20
Annuities
4Q20
Group Retirement
(+10% vs. 4Q19) (+52% vs. 4Q19)
Premiums and
Deposits ($M)
Net Flows
$2,199
(-5% vs. 4Q19)
($M)
($153)
Assets Under
Administration
($B)
$130.1
APTI ($M)
$318
Base Net Investment Spreads
Total Net Investment Spreads
1.78%
2.43%
2.18%
1.97%
1.55%
1.54%
■4Q19 3Q20 4Q20
4Q19 3Q20 4Q20
AIG
* Includes Retail Mutual Funds
Key Takeaways
4Q20 vs 4Q19 APTI results reflect
Favorable impacts from:
Equity markets resulting in higher fees, lower DAC amortization and
favorable alternatives, mainly from private equity returns
Lower interest rates and tighter credit spreads
Lower GOE
Total investment spreads
Unfavorable impacts from:
Base spread compression
Other Key Metrics
Favorable impacts from
Net flows
Assets under administration growth
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