AIG 2011 Annual Report Download - page 125

distribution channels. Affiliated distribution channels grew 11 percent in 2011 as a result of an enhanced product
suite that appeals to middle market consumers. Matrix Direct, SunAmerica’s direct-to-consumer platform, has
proven highly effective for the distribution of term life and A&H products. The decline in institutional sales
during 2011 reflects several large variable universal life sales during 2010.
2010 and 2009 Comparison
Total premiums, deposits and other considerations increased in 2010 compared to 2009 as improved sales from
life insurance, group retirement products and individual variable annuities offset a decline in individual fixed
annuity deposits. Group Retirement deposits increased for 2010 primarily due to improved sales from individual
rollovers. Individual fixed annuity deposits decreased primarily due to the low interest rate environment in 2010.
Variable annuity sales increased due to competitive product enhancements, reinstatements at a number of key
broker-dealers, and increased wholesaler productivity. Payout annuity sales increased in 2010 compared to 2009 as
a result of improved structured settlement and immediate annuity sales. Life insurance sales decreased in 2010
compared to 2009 driven by term and universal life products sold through independent and career distribution
networks.
Domestic Retirement Services Net Flows
The following table presents the account value rollforward for Domestic Retirement Services:
Years Ended December 31,
(in millions) 2011 2010 2009
Group retirement products
Balance, beginning of year $ 68,365 $ 63,419 $ 56,861
Deposits – annuities 5,652 4,937 4,856
Deposits – mutual funds 1,660 1,372 1,345
Total deposits 7,312 6,309 6,201
Surrenders and other withdrawals (5,853) (6,647) (7,233)
Death benefits (371) (317) (275)
Net inflows (outflows) 1,088 (655) (1,307)
Change in fair value of underlying investments, interest credited, net of fees 457 5,601 7,865
Future policy benefits related to unrealized investment appreciation 15 --
Balance, end of year $ 69,925 $ 68,365 $ 63,419
Individual fixed annuities
Balance, beginning of year $ 48,489 $ 47,202 $ 48,394
Deposits 6,606 4,410 5,348
Surrenders and other withdrawals (3,456) (3,520) (6,715)
Death benefits (1,570) (1,479) (1,700)
Net inflows (outflows) 1,580 (589) (3,067)
Change in fair value of underlying investments, interest credited, net of fees 1,828 1,876 1,875
Future policy benefits related to unrealized investment appreciation 379 --
Balance, end of year $ 52,276 $ 48,489 $ 47,202
AIG 2011 Form 10-K 111