AIG 2012 Annual Report Download - page 117

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AIG Life and Retirement Results
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The following table presents AIG Life and Retirement results:
Life Insurance:
Revenue:
Premiums $ 2,513 $ 2,520 (3)% –%
Policy fees 1,478 1,576 (1) (6)
Net investment income 3,925 4,313 4 (9)
Other income 3 – (67) NM
Operating expenses:
Policyholder benefits and claims incurred 4,510 4,277 – 5
Interest credited to policyholder account balances 851 843 (3) 1
Amortization of deferred acquisition costs 389 596 20 (35)
Other acquisition and insurance expenses 1,126 1,140 (6) (1)
Operating income 1,043 1,553 9 (33)
Net realized capital gains (losses) 363 (75) 305 NM
Legal settlements – – NM NM
Change in benefit reserves and DAC, VOBA and SIA related to net realized
capital gains (losses) (19) (37) NM 49
Pre-tax income $ 1,387 $ 1,441 42% (4)%
Retirement Services:
Revenue:
Policy fees $ 1,227 $ 1,134 8% 8%
Net investment income 5,957 6,455 11 (8)
Other income 206 – (96) NM
Operating expenses:
Policyholder benefits and claims incurred 104 (1) (79) NM
Interest credited to policyholder account balances 3,616 3,644 (2) (1)
Amortization of deferred acquisition costs 477 375 (28) 27
Other acquisition and insurance expenses 959 1,068 6 (10)
Operating income 2,234 2,503 35 (11)
Legal settlements – – NM NM
Changes in fair value of fixed maturity securities designated to hedge living
benefit liabilities – – NM NM
Net realized capital losses (357) (1,176) (136) 70
Change in benefit reserves and DAC, VOBA and SIA related to net realized
capital losses (308) (67) (68) (360)
Pre-tax income $ 1,569 $ 1,260 16% 25%
Total AIG Life and Retirement:
Revenue:
Premiums $ 2,513 $ 2,520 (3)% –%
Policy fees 2,705 2,710 3 –
Net investment income 9,882 10,768 8 (8)
Other income 209 – (96) NM
Operating expenses:
Policyholder benefits and claims incurred 4,614 4,276 (2) 8
Interest credited to policyholder account balances 4,467 4,487 (2) –
Amortization of deferred acquisition costs 866 971 (6) (11)
Other acquisition and insurance expenses 2,085 2,208 – (6)
Operating income 3,277 4,056 27 (19)
Legal settlements – – NM NM
Changes in fair value of fixed maturity securities designated to hedge living
benefit liabilities – – NM NM
Net realized capital gains (losses) 6 (1,251) NM NM
Change in benefit reserves and DAC, VOBA and SIA related to net realized
capital gains (losses) (327) (104) (267) (214)
Pre-tax income $ 2,956 $ 2,701 28% 9%
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AIG 2012 Form 10-K100
Percentage Change
Years Ended December 31,
(in millions) 2012 2011 2010 2012 vs. 2011 2011 vs. 2010
$ 2,428
1,465
4,101
1
4,511
822
467
1,059
1,136
1,471
43
(684)
$ 1,966
$ 1,326
6,617
8
22
3,540
345
1,020
3,024
111
37
(841)
(517)
$ 1,814
$ 2,428
2,791
10,718
9
4,533
4,362
812
2,079
4,160
154
37
630
(1,201)
$ 3,780
ITEM 7 / RESULTS OF OPERATIONS