AIG 2015 Annual Report Download - page 103

ITEM 7 / RESULTS OF OPERATIONS / CONSUMER INSURANCE
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> 5% - 5.5% 327 - - 327
Total $ 6,916 $ 1,167 $ 2,761 $ 10,844
Percentage of total 64 % 11 % 25 % 100 %
Life Premiums and Deposits
Premiums for Life represent amounts received on traditional life insurance policies and group benefit policies. Premiums and
deposits for Life is a non-GAAP financial measure that includes direct and assumed premiums as well as deposits received on
universal life insurance.
The following table presents a reconciliation of Life premiums and deposits to GAAP premiums:
Years Ended December 31,
(in millions) 2015 2014 2013
Premiums and deposits $ 4,974 $ 4,806 $ 4,862
Deposits (1,540) (1,532) (1,541)
Other (675) (595) (584)
Premiums $ 2,759 $ 2,679 $ 2,737
Excluding the effect of foreign exchange, Life premiums and deposits increased six percent in 2015 compared to 2014, and
premiums increased eight percent, principally driven by growth in Japan and the acquisition of AIG Life Limited in the U.K.
The decrease in Life premiums in 2014 compared to 2013 was primarily due to the non-renewal of certain group benefit
accounts and the strengthening of the U.S. dollar against the Japanese yen, partially offset by solid growth in Japan premiums
excluding the effect of foreign exchange. As a result of the decrease in premiums, premiums and deposits also decreased in
2014 compared to 2013.
Personal Insurance Results
The following table presents Personal Insurance results:
Years Ended December 31, Percentage Change
(in millions) 2015 2014 2013 2015 vs. 2014 2014 vs. 2013
Underwriting results:
Net premiums written $11,580 $ 12,412 $ 12,700 (7)% (2)%
Increase in unearned premiums (422) (442) (323) 5 (37)
Net premiums earned 11,158 11,970 12,377 (7) (3)
Losses and loss adjustment expenses incurred 6,152 6,488 7,025 (5) (8)
Acquisition expenses:
Amortization of deferred policy acquisition costs 1,974 2,092 2,203 (6) (5)
Other acquisition expenses 1,183 1,165 1,044 2 12
Total acquisition expenses 3,157 3,257 3,247 (3) -
General operating expenses 1,995 2,220 2,292 (10) (3)
Underwriting income (loss) (146) 5 (187) NM NM
Net investment income 220 394 455 (44) (13)
Pre-tax operating income $74 $ 399 $ 268 (81)% 49 %