AIG 2013 Annual Report Download - page 130

17FEB201414391079
Retail
Institutional
$2,596 $2,464 $2,549
TOTAL PREMIUMS BY OPERATING SEGMENT
(in millions)
TOTAL PREMIUMS AND DEPOSITS BY OPERATING
SEGMENT
(in millions)
$1,074
$1,522
$940
$1,524
$1,003
$1,546
2013 2012 2011
Retail
Institutional
$28,809
$20,994
$24,392
2013 2012 2011
$8,897
$19,912
$8,482
$12,512
$8,657
$15,735
Net flows are presented for our investment product lines, which include Fixed Annuities, Retirement Income
Solutions, Retail Mutual Funds and Group Retirement. Net flows from annuities, which are included in the Fixed
Annuities, Retirement Income Solutions and Group Retirement product lines, represent premiums and deposits less
death, surrender and other withdrawal benefits. Mutual fund net flows, which are included in the Retail Mutual Funds
and Group Retirement product lines, represent deposits less withdrawals.
The following table summarizes net flows for our investment product lines:
Net flows
Fixed Annuities $ (4,252) $ 1,406
Retirement Income Solutions 1,598 (48)
Retail Mutual Funds 1,018 478
Group Retirement 302 1,088
Total net flows* $ (1,334) $ 2,924
* Excludes activity related to closed blocks of fixed and variable annuities, which have reserves of approximately $6 billion at each of
December 31, 2013 and 2012.
Total net flows from annuities and mutual funds increased in 2013 compared to 2012, and decreased in 2012
compared to 2011. A discussion of the significant variances in net flows for each of these product lines follows,
including variances in premiums and deposits, a key component of net flows.
Fixed Annuities net flows and premiums and deposits showed improvement in 2013 compared to 2012, due to
modest increases in interest rates and steepening of the yield curve in the second half of 2013, which made fixed
annuity products more attractive in the marketplace compared to competing products such as bank deposits. The
relatively low level of deposits in 2013 and 2012 compared to 2011, however, resulted in negative net flows for this
product line in both 2013 and 2012, reflecting the challenges of the sustained low interest rate environment, as
consumers were reluctant to purchase these products at the relatively low crediting rates offered, which have been
priced to maintain our targeted spreads. Negative net flows have moderated since the second half of 2013 from the
increase in deposits.
Retirement Income Solutions premiums and deposits and net flows increased significantly in 2013 and 2012
compared to 2011, reflecting higher variable annuity sales, which have benefitted from innovative product
Net Flows
Retail Net Flows
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AIG 2013 Form 10-K112
ITEM 7 / RESULTS OF OPERATIONS / AIG LIFE AND RETIREMENT
Years Ended December 31,
(in millions) 2013 2012 2011
$ (2,820)
5,092
2,780
(492)
$ 4,560
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