Life and personal insurance
Under AIG’s Life Insurance business, premiums and deposits rose in 2Q17 compared to 2Q16. Premium and deposits under the Life Insurance business stood at $947 million in 2Q17 and $879 million in 2Q16. In 2Q17, policy fees under the Life Insurance business stood at $357 million compared to $343 million in 2Q16.
During the same period, the Life Insurance business saw a substantial rise in its pretax operating income compared to 2Q16. In 2Q17, under the Life Insurance business, AIG’s pretax operating income stood at $106 million, and in 2Q16 it stood at $26 million.
Under personal insurance, pretax operating income saw a substantial rise in 2Q17 compared to 2Q16, which is mainly due to a reduction in expenses, fewer loss activities, and a rise in net investment income. AIG’s pretax operating income for personal insurance stood at $330 million in 2Q17. In 2Q16, it stood at $152 million.
AIG’s management has a positive outlook on the personal insurance business regarding future growth.
Operating cash flow
American International Group’s (AIG) operating cash flow on a trailing-12-month (or TTM) basis stood at ~-$7.5 billion. The operating cash flow levels of other insurance companies (IYF) on a TTM basis are as follows: