Investor Presentaiton
Life and Retirement: Individual Retirement 2Q20 reflects equity market recovery;
overall annuity sales were lower due to pricing discipline and broad industry
sales channel disruptions resulting from COVID-19
Premiums
($ in millions)
2Q19
2Q20
Premiums and deposits
$3,865
$1,794
16
38
Policy fees
205
205
Net investment income
1,094
957
Advisory fee and other income
151
133
Total adjusted revenues
1,466
1,333
Benefits, losses and expenses
878
783
Adjusted pre-tax income
$588
$550
Net Flows ($B)
Premiums and Deposits
Key Takeaways
2Q20 APTI results reflect strong capital market recovery from 1Q20
resulting in favorable impacts to DAC and Variable Annuity reserves and
higher other yield enhancements, offset by private equity losses
Net flows are negative in 2Q20, and down compared to 2Q19 due to
broad industry sales channel disruptions resulting from COVID-19
Growth in assets under administration (AUA) driven by higher market
values driven by lower interest rates, partially offset by negative net
flows
Continued spread compression as higher yielding investment assets roll
off the in-force portfolio, the result of maturities, calls and structured
asset paydowns, as well as maintaining pricing discipline
Assets Under Administration ($B)
2.3%
2Q19
$1.5
$0.7
$1.3
$0.4
$3.9
2Q20
$0.4 $0.5 $0.7 $0.2
$1.8
Surrender and Other Withdrawals
2Q19
$1.0
$1.0 $0.2
$1.1
$3.4
2Q20
$0.6
$0.7 $0.2
$1.0
$2.6
Net Flows1
2Q19
($0.3)
2Q20
($1.5)
■Fixed Annuities Variable Annuities Index Annuities Retail Mutual Funds
$151.3
$13.2
$48.1
$90.0
2Q19
$154.8
$8.1
$47.9
$98.8
2Q20
■General Accounts Separate Accounts Retail Mutual Funds
Base Net Investment Spread
1.89%
3.08%
2.56%
1.55%
2Q19
2Q20
AIG
1) Includes death and other contract benefits. Net Flows excluding Retail Mutual Funds
is ($0.7B) in 2Q20 compared with $0.5B in 2Q19.
■Fixed Annuities Variable and Index Annuities
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