AIG Earnings and Investment Portfolio Report slide image

AIG Earnings and Investment Portfolio Report

Life and Retirement: Life Insurance 2020 APTI declined driven by higher mortality due to COVID-19, offset in part by strong equity markets; Institutional Markets APTI reflects strong private equity returns and growth in reserves ($M) New Business Sales Domestic US International Premiums and Deposits APTI ($M) APTI Life Insurance Institutional Markets $455 (-9% vs. FY19) 59% 41% $4,413 (+3% vs. FY19) $142 (-57% vs. FY19) Key Takeaways FY20 APTI vs FY19 results reflect Favorable impacts from: Equity markets resulting in favorable alternatives, mainly from private equity returns Lower GOE Unfavorable impacts from: " " Lower FVO assets, offset in part by favorable impact from lower interest rates and tighter credit spreads Unfavorable impact from annual actuarial assumption update Mortality, driven by COVID-19 Lower reinvestment rates Other Key Metrics Unfavorable impacts from: New business sales impact on APTI $438 (+42% vs. FY19) Premiums and Deposits ($M) GAAP Reserves ($B) $27.3 $4,846 $23.6 $8.1 $6.7 $0.1 $2,124 $2.2 $0.6 $2,822 $2.1 $5.1 $2 $71 $717 $5.0 $64 $53 $1,665 $2,320 $8.2 $5.9 $323 FY19 Structured Settlements AIG $329 FY20 PRT ■COLI/BOLI $3.2 FY19 PPVUL/PPVA $3.6 FY20 ■SVW GIC Key Takeaways FY20 vs F19 APTI results reflect Favorable impacts from: " Equity markets resulting in favorable alternatives, mainly from private equity returns Higher base investment income, growth in reserves Unfavorable impacts from: Lower FVO assets, offset in part by favorable impact from lower interest rates and tighter credit spreads Other Key Metrics Favorable impacts from: " Growth in reserves Definitions: GIC = Guaranteed Investment Contracts | SVW = Stable Value Wrap | COLI/BOLI = Corporate and Bank-owned life insurance | PRT = Pension Risk Transfer | PPVUL/PPVA = Private placement variable life and annuities 27
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