Life Gains Contribute To 27% Increase In AIG Net Income

By Allison Bell

October 23, 2003 at 08:00 PM

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NU Online News Service, Oct. 23, 2003, 5:59 p.m. EDT – American International Group Inc., New York, says strong sales of U.S. variable annuities, fixed annuities and life insurance products contributed to a 27% increase in third quarter net income.

The company is reporting $2.3 billion in net income for the quarter, up from $1.8 billion in net income for the third quarter of 2002.

Revenue figures were not immediately available.

The life insurance operations are reporting $4.2 billion in worldwide operating income on $13 billion in premiums, deposits and other compensation, up from $3.8 billion in worldwide operating income on $12 billion in premiums, deposits and other compensation.

Premiums, deposits and other considerations were up 37% for domestic life insurance, 32% for domestic fixed annuities and 22% for home service products.

Operating income at AIG VALIC, AIG SunAmerica and other AIG retirement services units increased 46%, to $333 million.

Thanks to the stock market rebound and the low returns available on fixed-rate investments, total net variable annuity sales increased 85%, to $1.2 billion.

At the life unit, AIG now is emphasizing AIG American General products that will serve the "middle income and voluntary employee benefits markets." The unit will be introducing new critical illness insurance products, cancer insurance products and accidental death and dismemberment insurance products to increase sales through the home service channel, AIG says.

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