AIG 2012 Annual Report Download - page 127

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products have minimum guaranteed interest rates as of December 31, 2012 ranging from 1.0 percent to 5.5 percent,
with the higher rates representing guarantees on older products.
Universal life insurance
1% $ 24 $ – $ 9 $ 33
> 1% - 2% – – 232 232
> 2% - 3% 93 368 1,445 1,906
> 3% - 4% 2,143 209 1,566 3,918
> 4% - 5% 4,377 197 12 4,586
> 5% - 5.5% 321 3 2 326
Subtotal $ 6,958 $ 777 $ 3,266 $ 11,001
Fixed annuities
1% $ 1,317 $ 2,826 $ 6,079 $ 10,222
> 1% - 2% 6,146 8,146 8,857 23,149
> 2% - 3% 30,631 1,635 5,251 37,517
> 3% - 4% 13,262 962 417 14,641
> 4% - 5% 8,138 – 7 8,145
> 5% - 5.5% 238 – 5 243
Subtotal $ 59,732 $ 13,569 $ 20,616 $ 93,917
Total $ 66,690 $ 14,346 $ 23,882 $ 104,918
Percentage of total 63% 14% 23% 100%
Effective Product Management: AIG Life and Retirement has a dynamic product management process designed
to ensure that new business product offerings appropriately reflect the current low interest rate environment. To the
extent that we cannot achieve targeted net investment spreads on new business, products are re-priced or
discontinued. Additionally, current products with higher minimum rate guarantees have been re-filed with lower rates
as permitted under state insurance product regulations.
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AIG 2012 Form 10-K110
Current Crediting Rates
December 31, 2012
Contractual Minimum Guaranteed 1-50 Basis Points More than 50 Basis
Interest Rate Account Values At Contractual Above Minimum Points Above
(in millions) Minimum Guarantee Guarantee Minimum Guarantee Total
ITEM 7 / RESULTS OF OPERATIONS