American International Group Inc. has reported that operating income for its domestic life insurance and retirement services group grew 5.1%, to $1.1 billion, in the second quarter compared with the year earlier — but nearly 19% in the corresponding foreign group.
The adviser-driven brokerage and affluent-market platforms also reported good recurring premiums in the last month of the quarter, the company said on Tuesday.
The tight spread environment negatively affected payout annuity sales, according to AIG. And second-quarter sales of individual variable annuities were affected by lackluster domestic equity markets, it said, while the flattening yield curve and competitive fixed-income alternatives adversely affected fixed annuities.
The foreign life insurance and retirement services group’s operating income rose 18.8%, to $1.46 billion, in the second quarter compared with the year earlier, the company said, and foreign annuity production rose 43.3%, with particularly strong growth in Japan and Korea.
