AIG 2011 Annual Report Download - page 124

Sales and Deposits
The following tables summarize SunAmerica premiums, deposits and other considerations by product*:
Percentage Change
Years Ended December 31,
(in millions) 2011 2010 2009 2011 vs. 2010 2010 vs. 2009
Premiums, deposits and other considerations
Individual fixed annuity deposits $ 6,606 $ 4,410 $ 5,348 50% (18)%
Group retirement product deposits 7,312 6,309 6,201 16 2
Life insurance 4,713 5,110 5,538 (8) (8)
Individual variable annuity deposits 3,212 2,072 891 55 133
Retail mutual funds 1,925 1,101 782 75 41
Individual annuities runoff 70 84 47 (17) 79
Total premiums, deposits and other considerations $ 23,838 $ 19,086 $ 18,807 25% 1%
Independent – retail $ 144 $ 123 $ 123 17% -%
Independent – institutional 25 32 19 (22) 68
Affiliated – Career and Matrix Direct 109 98 86 11 14
Total life insurance sales $ 278 $ 253 $ 228 10% 11%
* Life insurance sales include periodic premiums from new business expected to be collected over a one-year period and 10 percent of single
premiums and unscheduled deposits from new and existing policyholders. Annuity sales represent deposits from new and existing customers.
Premiums
Premiums represent premiums received on traditional life insurance policies and deposits on life- contingent
payout annuities. Premiums, deposits and other considerations is a non-GAAP measure which includes life
insurance premiums, deposits on annuity contracts and mutual funds.
The following table presents a reconciliation of premiums, deposits and other considerations to premiums:
Years Ended December 31,
(in millions) 2011 2010 2009
Premiums, deposits and other considerations $ 23,838 $ 19,086 $ 18,807
Deposits (21,376) (16,462) (15,993)
Other 51 (104) (143)
Premiums $ 2,513 $ 2,520 $ 2,671
2011 and 2010 Comparison
Total premiums, deposits and other considerations increased in 2011 as deposits from individual fixed annuities,
individual variable annuities and retail mutual funds all showed significant increases.
Group retirement deposits increased primarily due to higher levels of individual rollover deposits in 2011.
Individual fixed annuity deposits increased as certain bank distributors negotiated a lower commission in exchange
for a higher rate offered to policyholders which made SunAmerica’s individual fixed annuity products more
attractive. However, fixed annuity deposits declined in the latter part of 2011 from the first six months of 2011 due
to significant declines in interest rates. Variable annuity sales increased due to reinstatements of relationships at a
number of key broker-dealers, and increased wholesaler productivity. Deposits from life insurance products
increased in 2011 but were more than offset by declines in deferred annuities sold through life insurance
distribution channels and a large private placement variable annuity sale in 2010. Retail mutual fund annual sales
growth was driven by SunAmerica Asset Management Corp.’s Specialty Series product offerings (Alternative
Strategies and Global Trends) and the Focused Dividend Strategy Portfolio.
SunAmerica grew new sales of mortality based life insurance products during 2011 by strengthening the core
retail independent distribution channel and continuing to focus on career agent and direct-to-consumer
distribution. Retail life sales increased 17 percent during 2011 as SunAmerica continues to re-engage independent
110 AIG 2011 Form 10-K