The Life and Retirement business at American International Group could be a representative for the entire publicly traded U.S. life and annuity insurer class this quarter: It earned close to $900 million, in spite of low interest rates and the COVID-19 pandemic — and AIG executives are still talking about efforts to spin it off.
Peter Zaffino, AIG's CEO, today assured investors that AIG is continue to work on separating from the life business.
"Our goal is to deliver a clean separation with minimal business disruption, and emphasis on speed of execution, operational efficiency and thoughtful talent allocation," Zaffinio said, during a conference call the company to go over results for the third quarter with securities analysts.
The third quarter ended Sept. 30.
Zaffino said AIG has teams working to separate the life business's data centers, software, real estate and vendor contracts.
The New York-based company expects to hold an initial public offering for the life business's stock by July 1, 2022.
AIG would start by selling less than than half of its stake in the life business, then reduce its stake to less than 50% later, he said.
AIG's Earnings
AIG as a whole is reporting $1.7 billion in net income for the third quarter on $13 billion in revenue, compared with $281 million in net income for the third quarter of 2020.
The company says it hopes to turn its Life and Retirement business into a separate company.
That business is reporting $877 million in adjusted pretax income on $4.4 billion in adjusted revenue, compared with $1 billion in adjusted pretax income on $4 billion in adjusted revenue for the year-earlier quarter.
Premiums and deposits increased to $7.2 billion, from $7 billion.
Sales of the company's main index annuity were strong.
Many other life and annuity issuers have also reported earnings over the past two weeks…
Athene Holding
The Hamilton, Bermuda-based insurer is reporting $770 million in net income for the third quarter on $8.7 billion in revenue, compared with $884 million in net income on $3.3 billion in revenue for the year-earlier quarter.
"Gross organic inflows" of cash increased 61%, to $12 billion.
Retail inflows fell 4%, to $2.4 billion. Increased competition for multi-year guaranteed year guaranteed annuity (MYGA) contracts pinched retail MYGA sales, but non-variable indexed annuity sales were strong, the company says.
Lincoln National Corp.
The Radnor, Pennsylvania-based life insurer is reporting $318 million in net income for the third quarter on $5.2 billion in revenue, compared with $398 million in net income on $4.8 billion in revenue for the year-earlier quarter.
Annuity deposits increased 7% from a year earlier, to $2.7 billion, with an increases in the sale of annuities offering guarantees offsetting a decrease in sales of contracts with out guarantees.
Sales on sales commissions and related items increased 19%, to $1.9 billion.
The best sales results were for group disability insurance. Sales of group disability insurance increased 18%, to $20 million.
Equitable Holdings
The New York-based financial services company is reporting $765 million in net income for the third quarter on $3.6 billion in revenue, compared with a net loss of $705 million on $1.8 billion in revenue for the year-earlier quarter.
The results were affected by changes in the value of the company's derivatives. The drop in the value of the derivatives narrowed to $185 million, from $1.5 billion in the third quarter of 2020.
Operating earnings increased to $818 million, from $568 million.
