AIG Says Low Rates Likely to Hurt Fixed Annuity Sales: Earnings
February 18, 2020 by Allison Bell
American International Group Inc. is reporting that its life and retirement unit did well in the fourth quarter, but that the return of falling rates was hard on sales.
The financial services giant is reporting $869 million in net income for the fourth quarter of 2019 on $12 billion in revenue, compared with a $560 million net loss on $13 billion in revenue for the fourth quarter of 2018.
The company’s life and retirement unit is reporting $839 million in adjusted pretax income on $4 billion in revenue, up from $623 million in adjusted pretax income on $4.1 billion in revenue for the year-earlier quarter.
But Kevin Hogan, the head of AIG’s life and retirement unit, said during a conference call AIG held to go over its results with securities analysts that AIG expects individual fixed annuity sales to continue to be down for 2020, and for cash to flow out of group and individual retirement products.
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