AIG Earnings and Investment Portfolio Report slide image

AIG Earnings and Investment Portfolio Report

Life and Retirement: Life Insurance APTI reflects COVID-19 mortality impact, offset in part by strong private equity returns and favorable impacts from lower interest rates and tighter credit spreads; Institutional Markets APTI reflects strong private equity returns and growth in reserves ($M) New Business Sales Domestic US International Premiums and Deposits APTI Life Insurance Institutional Markets $104 (-5% vs. 4Q19) 65% 35% $1,156 (+5% vs. 4Q19) $30 (-55% vs. 4Q19) $127 (+55% vs. 4Q19) ($M) APTI Premiums and Deposits ($M) GAAP Reserves ($B) $27.3 $8.1 $23.6 $1,287 $6.7 $0.1 $2.2 $0.6 $2.1 $850 $5.1 $5.0 Key Takeaways 4Q20 vs 4Q19 APTI results reflect Favorable impacts from: ◉ Equity markets returns from favorable alternatives, mainly higher private equity returns Lower interest rates and tighter credit spreads ■ Lower GOE Unfavorable impacts from: " Mortality, driven by COVID-19 Lower reinvestment rates Other Key Metrics Unfavorable impacts from: " New business sales impact on APTI Key Takeaways 4Q20 vs 4Q19 APTI results reflect Favorable impacts from: " Equity markets returns from favorable alternatives, mainly higher private equity returns Higher base investment income, growth in reserves Other Key Metrics Favorable impacts from: " Growth in reserves, including 4Q20 GIC issuance $551 $6-$1 $4 $8.2 $5.9 $450 $369 $94 4Q19 $64 4Q20 Structured Settlements PRT $3.2 4Q19 ■COLI/BOLI PPVUL/PPVA $3.6 4Q20 ■SVW GIC AIG 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 15
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