AIG 2014 Annual Report Download - page 104

ITEM 7 / RESULTS OF OPERATIONS / CONSUMER INSURANCE
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CONSUMER INSURANCE
Consumer Insurance Results
The following table presents Consumer Insurance results:
Years Ended December 31, Percentage Change
(in millions) 2014 2013 2012 2014 vs. 2013 2013 vs. 2012
Revenues:
Premiums $14,936 $15,302 $16,027 (2)%(5)%
Policy fees 2,453 2,252 2,113 9 7
Net investment income 9,082 9,352 9,262 (3) 1
Other income 1,998 1,754 1,344 14 31
Benefits and expenses:
Policyholder benefits and losses incurred 10,796 10,957 11,696 (1) (6)
Interest credited to policyholder account balances 3,353 3,477 3,769 (4) (8)
Amortization of deferred policy acquisition costs 2,759 2,836 2,850 (3) -
General operating and other expenses* 7,087 6,826 6,695 4 2
Pre-tax operating income $4,474 $4,564 $3,736 (2)%22 %
* Includes general operating expenses, non deferrable commissions, other acquisition expenses, advisory fee expenses and other expenses.
Consumer Insurance Results by Operating Segment
Consumer Insurance presents its operating results in three operating segments – Retirement, Life and Personal Insurance.
The following section provides a comparative discussion of Consumer Insurance Results of Operations for 2014, 2013 and
2012 by operating segment.
Retirement Results
The following table presents Retirement results:
Years Ended December 31, Percentage Change
(in millions) 2014 2013 2012 2014 vs. 2013 2013 vs. 2012
Revenues:
Premiums $287 $188 $120 53 %57 %
Policy fees 1,010 861 743 17 16
Net investment income 6,489 6,628 6,502 (2) 2
Advisory fee and other income 1,998 1,754 1,344 14 31
Benefits and expenses:
Policyholder benefits and losses incurred 537 364 331 48 10
Interest credited to policyholder account balances 2,846 2,935 3,258 (3) (10)
Amortization of deferred policy acquisition costs 346 273 403 27 (32)
Non deferrable insurance commissions 265 249 221 6 13
Advisory fee expenses 1,315 1,175 893 12 32
General operating expenses 980 945 802 4 18
Pre-tax operating income $3,495 $3,490 $2,801 - %25 %