AIG 2013 Annual Report Download - page 126

The following table presents AIG Life and Retirement results:
Retail
Revenue:
Premiums $ 1,524 $ 1,546 –% (1)%
Policy fees 1,869 1,806 7 3
Net investment income 6,212 5,662 1 10
Other income 1,183 1,222 33 (3)
Operating expenses:
Policyholder benefits and claims incurred 2,791 2,786 (1) –
Interest credited to policyholder account balances 2,554 2,695 (11) (5)
Amortization of deferred policy acquisition costs 727 733 (26) (1)
Other acquisition and insurance expenses 2,274 2,178 15 4
Pre-tax operating income 2,442 1,844 29 32
Legal settlements 106 – NM NM
Changes in fair value of fixed maturity securities designated
to hedge living benefit liabilities, net of interest expense 37 – NM NM
Changes in benefit reserves and DAC, VOBA and SIA
related to net realized capital gains (losses) (57) (305) (140) 81
Net realized capital gains (losses) (460) (157) NM (193)
Pre-tax income $ 2,068 $ 1,382 111% 50%
Institutional
Revenue:
Premiums $ 940 $ 1,003 14% (6)%
Policy fees 480 503 11 (5)
Net investment income 4,506 4,220 2 7
Other income 110 195 22 (44)
Operating expenses:
Policyholder benefits and claims incurred 1,801 1,901 9 (5)
Interest credited to policyholder account balances 1,786 1,737 (10) 3
Amortization of deferred policy acquisition costs 85 133 29 (36)
Other acquisition and insurance expenses 646 717 8 (10)
Pre-tax operating income 1,718 1,433 13 20
Legal settlements 48 – NM NM
Changes in benefit reserves and DAC, VOBA and SIA
related to net realized capital gains (losses) (1,144) (22) (18) NM
Net realized capital gains (losses) 1,090 163 8 NM
Pre-tax income $ 1,712 $ 1,574 25% 9%
Total AIG Life and Retirement
Revenue:
Premiums $ 2,464 $ 2,549 5% (3)%
Policy fees 2,349 2,309 8 2
Net investment income 10,718 9,882 1 8
Other income 1,293 1,417 32 (9)
Operating expenses:
Policyholder benefits and claims incurred 4,592 4,687 3 (2)
Interest credited to policyholder account balances 4,340 4,432 (10) (2)
Amortization of deferred policy acquisition costs 812 866 (20) (6)
Other acquisition and insurance expenses 2,920 2,895 14 1
Pre-tax operating income 4,160 3,277 22 27
Legal settlements 154 – NM NM
Changes in fair value of fixed maturity securities designated
to hedge living benefit liabilities, net of interest expense 37 – NM NM
Changes in benefit reserves and DAC, VOBA and SIA
related to net realized capital gains (losses) (1,201) (327) (24) (267)
Net realized capital gains (losses) 630 6 223 NM
Pre-tax income $ 3,780 $ 2,956 72% 28%
AIG Life and Retirement Results
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AIG 2013 Form 10-K108
ITEM 7 / RESULTS OF OPERATIONS / AIG LIFE AND RETIREMENT
Percentage Change
Years Ended December 31,
(in millions) 2013 2012 2011 2013 vs. 2012 2012 vs. 2011
$ 1,522
2,000
6,275
1,575
2,772
2,277
540
2,626
3,157
647
(161)
(137)
857
$ 4,363
$ 1,074
535
4,579
134
1,966
1,613
110
695
1,938
373
(1,349)
1,180
$ 2,142
$ 2,596
2,535
10,854
1,709
4,738
3,890
650
3,321
5,095
1,020
(161)
(1,486)
2,037
$ 6,505
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