AIG 2013 Annual Report Download - page 136

The following table presents AIG Life and Retirement insurance reserves and mutual fund assets under
management:
Retail
Balance at beginning of year, gross $ 120,396 $ 117,426
Premiums and deposits 12,512 15,735
Surrenders and withdrawals (9,268) (9,226)
Death, and other contract benefits (3,695) (3,203)
Subtotal (451) 3,306
Change in fair value of underlying assets and reserve accretion, net of
policy fees 2,428 (1,211)
Cost of funds 2,423 2,526
Other reserve changes*(1,097) (1,651)
Balance at end of year 123,699 120,396
Reserves related to unrealized appreciation of investments 456 360
Reinsurance ceded (1,514) (1,551)
Total insurance reserves and retail mutual funds assets under management $ 122,641 $ 119,205
Institutional
Balance at beginning of year, gross $ 103,315 $ 103,280
Premiums and deposits 8,482 8,657
Surrenders and withdrawals (7,509) (7,926)
Death, and other contract benefits (1,949) (1,959)
Subtotal (976) (1,228)
Change in fair value of underlying assets and reserve accretion, net of
policy fees 5,761 (173)
Cost of funds 1,785 1,741
Other reserve changes*609 (305)
Balance at end of year 110,494 103,315
Reserves related to unrealized appreciation of investments 2,359 1,938
Reinsurance ceded (229) (285)
Total insurance reserves and group mutual fund assets under management $ 112,624 $ 104,968
Total AIG Life and Retirement:
Balance at beginning of year, gross $ 223,711 $ 220,706
Premiums and deposits 20,994 24,392
Surrenders and withdrawals (16,777) (17,152)
Death, and other contract benefits (5,644) (5,162)
Subtotal (1,427) 2,078
Change in fair value of underlying assets and reserve accretion, net of
policy fees 8,189 (1,384)
Cost of funds 4,208 4,267
Other reserve changes*(488) (1,956)
Balance at end of year 234,193 223,711
Reserves related to unrealized appreciation of investments 2,815 2,298
Reinsurance ceded (1,743) (1,836)
Total insurance reserves and mutual fund assets under management $ 235,265 $ 224,173
*Other reserve changes include loss recognition in Retail of $135 million and $189 million, and in Institutional of $1.3 billion and $1.0 billion, in
2013 and 2012, respectively.
AIG Life and Retirement Reserves and DAC
..................................................................................................................................................................................................................................
AIG 2013 Form 10-K118
ITEM 7 / RESULTS OF OPERATIONS / AIG LIFE AND RETIREMENT
Years Ended December 31,
(in millions) 2013 2012 2011
$ 123,699
19,912
(9,899)
(3,467)
6,546
5,221
2,222
(410)
137,278
9
(1,495)
$ 135,792
$ 110,494
8,897
(9,938)
(1,997)
(3,038)
9,973
1,569
894
119,892
–
(209)
$ 119,683
$ 234,193
28,809
(19,837)
(5,464)
3,508
15,194
3,791
484
257,170
9
(1,704)
$ 255,475
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