NU Online News Service, April 24, 2003, 12:33 p.m. EDT – American International Group Inc., New York, is reporting $1.953 billion in net income for the first quarter on $19 billion in revenue, compared with $1.98 billion in net income on $16 billion in revenue for the first quarter of 2002.
Net results for the latest quarter include $631 million in losses on investments sold, written down or written off, up from $232 million in losses realized during the comparable quarter in 2002. AIG says the losses represent only about 0.1% of its $460 billion in invested assets.
AIG sells life insurance and retirement services as well as property-casualty insurance.
Life insurance: AIG’s U.S. life insurance unit is reporting $190 million in operating income for the latest quarter on $1.3 billion in premium revenue, up from $164 million in operating income on $1.1 billion in revenue.
The foreign life unit generated $876 million in operating income on $3.3 billion in revenue, up from $723 million in operating income on $2.8 billion in revenue.
Growth in operating income for life insurance and U.S. fixed annuities was particularly strong.
Retirement services: AIG’s retirement services unit is reporting $283 million in operating income for the latest quarter on $896 million in revenue, compared with $300 million in operating income on $865 million in revenue.
The AIG VALIC unit generated $219 million in operating income on $544 million in revenue, up from $192 million in operating income on $535 million in revenue.
But AIG SunAmerica is reporting a $1.3 million operating loss on $121 million in revenue, down from $39 million in net income on $154 million in revenue.
Net sales of variable annuities increased to $890 million, from $855 million.