AIG 2011 Annual Report Download - page 127

2010 and 2009 Comparison
Surrender rates continued to improve in 2010 compared to 2009 for group retirement products, individual fixed
annuities and individual variable annuities as surrenders have returned to more normal levels. Surrender rates for
individual fixed annuities have decreased significantly in 2010 due to the low interest rate environment and the
relative competitiveness of interest credited rates on the existing block of fixed annuities versus interest rates on
alternative investment options available in the marketplace.
The following table presents reserves by surrender charge category and surrender rates:
2011 2010
Group Individual Individual Group Individual Individual
At December 31, Retirement Fixed Variable Retirement Fixed Variable
(in millions) Products* Annuities Annuities Products* Annuities Annuities
No surrender charge $ 53,100 $ 18,179 $ 10,061 $ 52,742 $ 14,006 $ 11,859
0% - 2% 1,186 2,922 4,317 1,292 3,510 4,083
Greater than 2% - 4% 1,248 4,719 2,068 1,754 5,060 2,040
Greater than 4% 4,060 23,372 7,764 2,753 22,777 7,361
Non-Surrenderable 815 3,084 686 792 3,136 238
Total reserves $ 60,409 $ 52,276 $ 24,896 $ 59,333 $ 48,489 $ 25,581
Surrender rates 8.4% 6.8% 11.9% 10.3% 7.4% 11.4%
* Excludes mutual funds of $9.5 billion and $9.0 billion in 2011 and 2010, respectively.
Aircraft Leasing Operations
AIG’s Aircraft Leasing operations are the operations of ILFC, which generates its revenues primarily from
leasing new and used commercial jet aircraft to foreign and domestic airlines. Aircraft Leasing operations also
include gains and losses that result from the remarketing of commercial jet aircraft for ILFC’s own account, and
remarketing and fleet management services for airlines and other aircraft fleet owners.
As discussed in Note 3 to the Consolidated Financial Statements, in order to align financial reporting with
changes made during 2011 to the manner in which AIG’s chief operating decision makers review the businesses to
assess performance and make decisions about resources to be allocated, beginning in the third quarter of 2011,
Aircraft Leasing is being presented as a standalone reportable segment. It was previously reported as a component
of the Financial Services reportable segment. Prior periods have been revised to conform to the current period
presentation for the segment changes.
AIG 2011 Form 10-K 113