AIG 2015 Annual Report Download - page 100

ITEM 7 / RESULTS OF OPERATIONS / CONSUMER INSURANCE
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Surrender Rates
The following table presents reserves for annuity product lines by surrender charge category:
At December 31, 2015 2014
Retirement Retirement
Group Fixed Income Group Fixed Income
(in millions) Retirement(a) Annuities Solutions Retirement(a) Annuities Solutions
No surrender charge
(b)(
c
)
$ 60,720 $34,331 $14,184 $ 61,751 $ 34,255 $ 14,429
Greater than 0% - 2% 1,199 1,543 4,517 1,648 2,736 4,512
Greater than 2% - 4% 1,363 2,285 4,565 1,657 2,842 4,254
Greater than 4% 5,952 13,138 31,683 5,793 12,754 26,165
Non-surrenderable 676 3,723 358 770 3,605 151
Total reserves $ 69,910 $55,020 $55,307 $ 71,619 $ 56,192 $ 49,511
(a) Excludes mutual fund assets under management of $14.5 billion and $14.6 billion at December 31, 2015 and 2014, respectively.
(b) Group Retirement amounts in this category include reserves of approximately $6.2 billion, at both December 31, 2015 and 2014, which are subject to 20
percent annual withdrawal limitations.
(c) Retirement Income Solutions amounts in this category for 2014 include $12.5 billion of reserves with zero surrender charge that were previously reported
within “Greater than 0% - 2%”.
The following table presents surrender rates for deferred annuities by product line:
Years Ended December 31,
2015
2014 2013
Surrenders as a percentage of average account value
Fixed Annuities 6.9 % 7.0 % 6.6 %
Retirement Income Solutions 6.0 7.1 8.7
Group Retirement 10.0 11.6 9.0
Life Results
The following table presents Life results:
Years Ended December 31, Percentage Change
(in millions) 2015 2014 2013 2015 vs. 2014 2014 vs. 2013
Revenues:
Premiums $2,759 $2,679 $2,737 3 % (2)%
Policy fees 1,485 1,443 1,391 3 4
Net investment income 2,100 2,199 2,269 (5) (3)
Other income 49 - - NM NM
Benefits and expenses:
Policyholder benefits and losses incurred 3,812 3,771 3,568 1 6
Interest credited to policyholder account balances 493 507 542 (3) (6)
Amortization of deferred policy acquisition costs 433 321 360 35 (11)
Non deferrable insurance commissions 222 257 272 (14) (6)
General operating expenses 968 885 849 9 4
Pre-tax operating income $465 $580 $806 (20) (28)