AIG General Insurance and Life & Retirement Earnings
Life and Retirement: Strong results across all segments largely due to favorable
capital markets conditions.
Adjusted Pre-Tax Income (APTI) ($M)
$895
$130
$2
$214
+26% or
+$229M
$1,124
$140
$20
$347
$617
$549
2Q20
2Q21
Premiums and Deposits ($M)
+58% or
+$3,317M
$9,035
$1,641
$1,161
$2,255
$5,718
$1,135
$1,119
$1,670
$3,978
$1,794
2Q20
2Q21
■Individual Retirement
■Life Insurance
AIG 1) PRT is defined as Pension Risk Transfer.
Group Retirement
Institutional Markets
2) GIC is defined as Guaranteed Investment Contracts.
Key Highlights: 2Q21 vs 2Q20
APTI reflects growth primarily arising from:
-
Favorable equity market impacts resulting in higher alternative
investment returns, mainly driven by strong private equity
performance, and higher fee income, partially offset by higher
DAC / SI amortization and higher Variable Annuity reserves as
market returns in prior year quarter were stronger than positive
market returns in current year quarter
Lower favorable impacts from interest rates and credit spreads
as 2Q20 includes a large yield enhancement whereas 2Q21
includes lower income from fair value option bonds in the
quarter, offset by higher income from calls / tenders and
commercial mortgage loan prepayments
Adverse COVID-19 mortality, however substantially lower than
1Q21 and 2Q20
Premiums and deposits benefitted from improved Variable and
Index Annuity sales combined with higher PRT1 sales and GIC²
issuance. 2Q20 premiums and deposits impacted by COVID
shutdown
Return on adjusted segment common equity (annualized)
13.5%
2Q20
Noteworthy Items ($M)
2.9 pts
16.4%
2Q21
2Q20
2Q21
Variance
Return on alternative investments
$
(47) $
325
$ 372
Other yield enhancements
$
245 $
151
$
(94)
Includes:
Securities Other accounted under
FVO
$
43 $
9 $
(34)
All other yield enhancements
$
202 $
142 $
(60)
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