Investor Presentaiton
Life and Retirement: Individual Retirement reflects flat net flows for Annuity
Business, asset growth and continued spread compression
Premiums
■
APTI improvement driven by favorable impacts from equity market
returns and lower interest rates driving higher income on fair value
option bonds
Continued spread compression as a result of higher yielding
assets rolling off the large in-force portfolio, while continuing to
maintain pricing discipline
($ in millions)
4Q18
4Q19
Key Takeaways
Premiums and deposits
$4,225
$3,156
15
39
Policy fees
194
209
Net investment income
912
1,019
Advisory fee and other income
155
154
Total adjusted revenues
1,276
1,421
Benefits, losses and expenses
949
920
Adjusted pre-tax income (APTI)
$327
$501
Net Flows ($B)
■ Net flows, excluding Retail Mutual Funds, are lower than 4Q18
primarily due to lower interest rates driving lower Fixed Annuity
sales
■ Growth in assets under administration driven by strong equity
market performance and higher Annuity net flows in the first half of
2019, partially offset by net redemptions in Retail Mutual Funds
Assets Under Administration ($B)
11.7%
Premiums and Deposits
$139.1
$13.3
4Q18
$1.7
$0.7
$1.4
$0.4
$4.2
$43.7
4Q19
$0.8
$0.8
$1.4
$0.2 $3.2
$82.1
$155.4
$12.0
$49.7
$93.8
4Q18
4Q19
Surrender and Other Withdrawals
General Accounts
■Separate Accounts
Retail Mutual Funds
4Q18
4Q19
$1.1
$0.9
$1.0 $0.1
$1.7
$4.0
$1.1 $0.2
$1.2
$3.4
Net Flows1
4Q18
($0.5)
■ Fixed Annuities Variable Annuities Index Annuities Retail Mutual Funds
4Q19
($1.0)
1) Includes death and other contract benefits.
AIG
Base Net Investment Spread
1.83%
3.22%
1.70%
2.83%
4Q18
4Q19
■Fixed Annuities
Variable and Index Annuities
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