This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

AIG Reports Third Quarter 2013 Net Income Attributable To AIG Of $2.2 Billion And Diluted Earnings Per Share Of $1.46

Net investment income declined 5 percent to $2.5 billion, primarily due to lower returns on alternative investments and declines in base yields and yield enhancements, including call and tender income. The base investment yield was 5.26 percent compared to 5.38 percent in the third quarter of 2012. This decline reflected the current interest rate environment and reinvestment of assets over the last 12 months at rates that were lower than the weighted average yield of the overall portfolio. AIG Life and Retirement continued to manage profitability actively through crediting rate actions on existing spread business and disciplined pricing on new business. Consistent with prior quarters, AIG Life and Retirement realized significant capital gains in its fixed maturity investment portfolio in connection with utilizing capital loss carryforwards. Reinvestment of proceeds from such sales has also reduced the base investment yield.

Assets under management rose 10 percent to $304 billion. Net flows and account values increased substantially compared to the prior-year period. These increases were driven by strong demand for Retail products due to innovative and competitive product design, favorable market conditions, and increased penetration within several of AIG Life and Retirement’s strategic distribution firms. Strong equity market performance further drove the increase in account values. The development of the stable value wrap business also accounted for a substantial amount of the growth in assets under management. The decline in AIG Life and Retirement’s unrealized gain position on available for sale securities due to rising interest rates partially offset the increase in assets under management.

Premiums and deposits totaled $8.4 billion, up 76 percent, driven by growth in sales of investment-oriented products, including individual variable annuities, retail mutual funds and fixed annuities. Premiums and deposits for Retirement Income Solutions and Retail Mutual Fund product lines increased 133 percent and 121 percent, respectively. Fixed Annuities product line sales totaled nearly $1.2 billion for the quarter, up from $173 million.

4 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.24 0.00%
FB $117.81 0.00%
GOOG $701.43 0.00%
TSLA $211.53 0.00%
YHOO $36.94 0.00%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs