AIG 2013 Annual Report Download - page 129

settlement proceeds included in Other income in 2011 and $110 million of expenses recorded in 2012 resulting from
a comprehensive review of reserves for the GIC portfolio.
Premiums represent amounts received on traditional life insurance policies, group benefit policies and deposits on
life-contingent payout annuities. Premiums and deposits is a non-GAAP financial measure that includes direct and
assumed premiums as well as deposits received on universal life insurance, investment-type annuity contracts, GICs
and mutual funds.
The following table presents a reconciliation of premiums and deposits to GAAP premiums:
Premiums and deposits $ 20,994 $ 24,392
Deposits (17,898) (21,302)
Other (632) (541)
Premiums $ 2,464 $ 2,549
Premiums increased slightly in 2013 compared to 2012, primarily from higher structured settlement and terminal
funding annuity premiums in the Institutional Markets product line and higher immediate annuity premiums in the
Fixed Annuities product line. Premiums decreased slightly in 2012 compared to 2011, due to lower Group Benefit
premiums partially offset by higher term life insurance premiums.
The following table presents premiums and deposits by operating segment and product line:
Retail
Life Insurance and A&H $ 3,350 $ 3,384 –% (1)%
Fixed Annuities 1,469 6,782 98 (78)
Retirement Income Solutions 4,828 3,470 78 39
Retail Mutual Funds 2,723 1,925 82 41
Closed blocks 142 174 (35) (18)
Total premiums and deposits $ 12,512 $ 15,735 59% (20)%
Institutional
Group Retirement $ 7,028 $ 7,312 3% (4)%
Institutional Markets 774 659 28 17
Group Benefits 680 686 (4) (1)
Total premiums and deposits 8,482 8,657 5 (2)
Total Life and Retirement premiums and deposits $ 20,994 $ 24,392 37% (14)%
Premiums and deposits improved significantly in 2013 compared to 2012, primarily from strong sales of annuities in
our Retirement Income Solutions and Fixed Annuities product lines and increased sales of Retail Mutual Funds and
Group Retirement mutual funds. Within the Group Retirement product line, the increase from mutual funds was
largely offset by lower variable annuity deposits, due in part to the historically low interest rate environment making
deposits into fixed options less attractive. Premiums and deposits decreased in 2012 compared to 2011, primarily
due to the impact of the historically low interest rate environment on fixed annuity sales and on Group Retirement
deposits into fixed options.
AIG Life and Retirement Premiums, Deposits and Net Flows
..................................................................................................................................................................................................................................
AIG 2013 Form 10-K 111
ITEM 7 / RESULTS OF OPERATIONS / AIG LIFE AND RETIREMENT
Years Ended December 31,
(in millions) 2013 2012 2011
$ 28,809
(25,542)
(671)
$ 2,596
Percentage Change
Years Ended December 31, 2013 vs. 2012 vs.
(in millions) 2013 2012 2011 2012 2011
$ 3,342
2,914
8,608
4,956
92
$ 19,912
$ 7,251
991
655
8,897
$ 28,809
..................................................................................................................................................................................
............................................................................................................................................................................................