AIG 2014 Annual Report Download - page 110

ITEM 7 / RESULTS OF OPERATIONS / CONSUMER INSURANCE
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The following table presents surrender rates for deferred annuities by product line:
Years Ended December 31,
2014
2013 2012
Surrenders as a percentage of average account value
Fixed Annuities 7.0 % 6.6 % 6.3 %
Retirement Income Solutions 7.1 8.7 10.3
Group Retirement 11.6 9.0 8.7
Life Results
The following table presents Life results:
Years Ended December 31, Percentage Change
(in millions) 2014 2013 2012 2014 vs. 2013 2013 vs. 2012
Revenues:
Premiums $2,679 $2,737 $2,804 (2)%(2)%
Policy fees 1,443 1,391 1,370 4 2
Net investment income 2,199 2,269 2,283 (3) (1)
Benefits and expenses:
Policyholder benefits and losses incurred 3,771 3,568 3,601 6(1)
Interest credited to policyholder account balances 507 542 511 (6) 6
Amortization of deferred policy acquisition costs 321 360 400 (11) (10)
Non deferrable insurance commissions 257 272 314 (6) (13)
General operating expenses 885 849 895 4(5)
Pre-tax operating income $580 $806 $736 (28) 10
LIFE PRE-TAX OPERATING INCOME (in millions)
2014 and 2013 Comparison
Pre-tax operating income decreased in 2014 compared to 2013, primarily due to increases in policyholder benefit reserves,
lower net investment income and higher general operating expenses. Updates of actuarial assumptions also decreased pre-
tax operating income by $119 million in 2014 compared to $80 million in 2013. The assumption updates in 2014 included $87
million of loss recognition expense to increase reserves for certain long-term care business. These decreases were partially
offset by a $28 million increase in pre-tax operating income in 2014 compared to 2013, due to a 2013 increase in equity-
indexed universal life reserves, which was reflected in Interest credited to policyholder account balances.