NU Online News Service, July 22, 2004, 7:23 p.m. EDT
Low U.S. group life prices cast one of the few shadows on domestic life and retirement services results at American International Group Inc., New York, during the second quarter.[@@]
AIG is reporting $2.9 billion in net income for the latest quarter on $24 billion in revenue, up from $2.3 billion in net income on $20 billion in revenue for the second quarter of 2003.
The global life and retirement services operations generated $2.1 billion in operating income for the quarter on $6.8 billion in revenue, up from $1.8 billion in operating income on $5.6 billion in revenue.
Sales of annuities, universal life insurance and term life insurance were especially strong, AIG says.
But, at the domestic group life operation, revenue rose only 2.8%, to $287 million, and operating income fell 35%, to $19 million.
“We chose not to renew several accounts where pricing was unacceptable, and we are reviewing our growth strategies for this business,” AIG Chairman Maurice Greenberg says in a discussion of the group life results.