Life Sales Rise At AIG

By Staff Writer

May 11, 2006 at 07:59 PM

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Strong world life results were a bright spot at American International Group Inc. during the first quarter.

AIG, New York, is reporting $3.2 billion in net income for the latest quarter on $27 billion in revenue, up from $3.8 billion in net income on $27 billion in revenue for the first quarter of 2005.

The company's life insurance and retirement services business is reporting a total of $2.6 billion in net income for the first quarter on $13 billion in revenue, up from $2.2 billion in net income on $12 billion in revenue.

AIG has responded to changes in the market for fixed annuities by discontinuing some distribution relationships.

The realignment of the fixed annuity operations helped earnings by increasing net investment earnings to $932 million, from $827 million, for domestic individual fixed annuities and to $496 million, from $377 million, for foreign individual fixed annuities.

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