American International Group, Inc. New · NYSE:AIG
American International Group, Inc. New — American International Group — Investor Presentation (May 2014)
23 slides from American International Group, Inc. New's investor presentation, May 8, 2014
Slide 1: AIG Life and Retirement
American International Group, Inc. AIG Life and Retirement May 8, 2014 Jay S. Wintrob, President and CEO, AIG Life and Retirement Jana Greer, President and CEO, Individual and Group Retirement Mary Jane Fortin, CFO, AIG Life and Retirement
Slide 2: Cautionary Statement Regarding Forward-Looking Information
Cautionary Statement Regarding Forward-Looking Information This document and the remarks made within this presentation may include, and officers and representatives of American International Group, Inc. (AIG) may from time to time make, projections, goals, assumptions and statements that may constit
Slide 3: Operating from a Position of Strength
AIG Life and Retirement – Operating from a Position of Strength Long standing leading market positions Market Leader Scale advantage in key product lines Comprehensive portfolio of life insurance, A&H, annuity, group retirement, Product Diversity group benefits, institutional products and mutu
Slide 4: Financial Highlights
AIG Life and Retirement – Financial Highlights First Full Year Quarter ($ in billions) 2011 2012 2013 2014 Premiums and deposits $24.4 $21.0 $28.8 $7.1 Net investment income 9.9 10.7 10.9 2.8 Pre-tax operating income 3.3 4.2 5.1 1.4 Cash & invested assets (1) 194.2 205.3 196.9 200.1 Assets under man
Slide 5: Net Investment Spread Management
AIG Life and Retirement – Net Investment Spread Management Base Portfolio Yields(1) 5.50% 5.38% 5.35% 5.31% 5.33% 5.30% 5.32% 5.26% 5.29% 5.25% 5.25% 5.12% 5.12% 5.10% 5.24% 5.17% 5.23% 5.14% 5.08% 5.10% 5.11% 5.01% 4.95% 4.85% 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 Cost of Funds(2) 3.27% 3.26% 3.2
Slide 6: Leading Market Positions
AIG Life and Retirement – Leading Market Positions Market Positions Excellence in Service, Marketing and Technology Rank* Market Tools International MarCom Metric 2013 Achievement in Awards 2013 2012 Customer Excellence 2012 and 2013 Platinum (ACE award for 7th and Gold Awards 2 6 Total Annuity Sale
Slide 7: Diversified Business Mix
AIG Life and Retirement – Diversified Business Mix Premiums and Deposits Premiums and Deposits Full Year 2013 - $28.8 billion Full Year 2012 - $21.0 billion Retail: 69% Institutional: 31% Retail: 59% Institutional: 41% Life Insurance Life Insurance and A&H and A&H Group Retirement Group Retirement 1
Slide 8: Assets Under Management
AIG Life and Retirement – Assets Under Management Year-over-year growth in AUM reflects strong retail investment product net flows, higher separate account balances and greater institutional assets. March 31, 2014 - $324.4 billion March 31, 2013 - $296.9 billion Retail Mutual Funds Retail 4% Mutual
Slide 9: Broad Multichannel Distribution Network
AIG Life and Retirement – Broad Multichannel Distribution Network 2013 Sales By Distribution Channel 2012 Sales By Distribution Channel Affiliated: 33% Non-affiliated: 67% Affiliated: 43% Non-affiliated: 57% VALIC FAs VALIC FAs 26% 33% B-Ds B-Ds 29% 34% AIG Direct & Other 1% AIG Financial Network 3%
Slide 10: Diversification Trends
AIG Life and Retirement – Diversification Trends AIG Life and Retirement Premiums & Deposits AIG Life and Retirement Sales by Distribution Channel 3% 100 % 3% 100 % 4% 80% B-DsRetirement Group 4% 80% 32% VALIC FAs IMOs 60% Retail MF 60% Banks RIS 10% 12% B-Ds 40% 40% Fixed Annuities Banks VALIC FAs
Slide 11: Money In Motion
AIG Life and Retirement – Money In Motion Industry Realization of Retirement Assets Retirement Assets are estimated to grow from $15.4 trillion in 2013 to $21.6 trillion by 2018, with $9.7 trillion in Retail IRA Assets Source: Cerulli Associates and Investment Company Institute. 11
Slide 12: Individual Variable Annuities
AIG Life and Retirement – Individual Variable Annuities A strategic growth opportunity for AIG. Industry Retail Variable Annuity Sales* Account Value by GMWB Guarantee at 3/31/14(1) Company FY 2013 % Change FY 2012 ($ in millions) Rank Sales From FY 2012 Rank Sales Jackson National 1 $20,931 6% 1 $1
Slide 13: Index Annuities
AIG Life and Retirement – Index Annuities Provides an opportunity to diversify Retirement Income Solutions offerings. Quarterly Index Annuity Industry Sales ($ in billions) Evolving Market In past years, many leading carriers avoided the index annuity market due to issues centered around suitabili
Slide 14: Fixed-Rate Deferred Annuity
AIG Life and Retirement – Fixed-Rate Deferred Annuity Sales Volume Trends ($ in billions) Industry AIG $ $ Industry AIG(1) Average 10-Year Treasury Rate Source: LIMRA Fixed-Rate Deferred Annuities Sales report 1) AIG reflects legacy Western National Life Insurance Company sales 14
Slide 15: Pension Buyout
AIG Life and Retirement – Pension Buyout Product Market Distribution S&P 500 Pension Plan Funded Status(1) 100% Assets = $1.5Tr Single Premium Terminal Funding, Annuity Buy- Pension consultants Liabilities = $1.6Tr Group Annuity outs and Liability Carve-Outs for and specialized brokers 95% Contract
Slide 16: Stable Value Wrap
AIG Life and Retirement – Stable Value Wrap Stable Value Wrap Competitors AIG Stable Value Wrap Notional ($ in billions)(1) Notional 4Q13 Estimate $ Issuer ($ in billions) 1 Prudential $ 95 2 Transamerica 59 3 MetLife 46 4 ING 37 5 State Street Bank 30 6 AIG 28 7 JPMorgan Chase 27 8 Pacific Life 22
Slide 17: Investment Composition & Ratings
AIG Life and Retirement – Investment Composition & Ratings Cash & Invested Assets – Total Portfolio Composition(1) Cash & Invested Assets – Total Portfolio Composition(1) March 31, 2014 - $200.1 billion March 31, 2013 - $204.1 billion CDO/ABS Other invested CMBS assets CMBS CDO/ABS 5% 5% 4% Other in
Slide 18: Appendix
AIG Appendix
Slide 19: Glossary of Non-GAAP Financial Measures
Glossary of Non-GAAP Financial Measures AIG AIG – After-tax operating income (loss) attributable to AIG: is derived by excluding the following items from net income (loss) attributable to AIG: income (loss) from discontinued operations, net loss (gain) on sale of divested businesses and properties,
Slide 20: AIG Consolidated Financial Highlights
AIG Consolidated Financial Highlights First Full Year Quarter ($ in millions, except per share amounts) 2011 2012 2013 2014 Revenues $65,105 $71,021 $68,678 $16,112 (1) Net income attributable to AIG 20,622 3,438 9,085 1,609 Diluted earnings per common share $11.01 $2.04 $6.13 $1.09 ROE, Ex. AOCI (2
Slide 21: Non-GAAP Reconciliation – After-tax Operating Income and Return On Equity ex. AOCI
Non-GAAP Reconciliation – After-tax Operating Income and Return On Equity ex. AOCI After-tax Operating Income Attributable to AIG Full Year March 31, ($ in millions) 2011 2012 2013 2014 Net income attributable to AIG $ 20,622 $ 3,438 $ 9,085 $ 1,609 Adjustments to arrive at After-tax operating incom
Slide 22: Non-GAAP Reconciliation – BVPS ex. AOCI, Premiums & Deposits and Pre-tax Operating Income
Non-GAAP Reconciliation – BVPS ex. AOCI, Premiums & Deposits and Pre-tax Operating Income Book Value Per Common Share - Ex. AOCI December 31, March 31, ($ in millions, except per share data) 2011 2012 2013 2014 Total AIG shareholders’ equity $ 101,538 $ 98,002 $ 100,470 $ 103,833 Less: AOCI 6,481 12
Slide 23: About American International Group, Inc.
American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of
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