AIG's asset management operation reaps technology dividend

|By:, SA News Editor

Struggles at the insurer's commercial lines unit have been making plenty of headlines, but pretax operating income at AIG's life and retirement business was up 33% in Q2.

The group business, Valic, has seen assets rise to $99.2B from $95.2B at the start of the year, and the individual retirement operation has assets of nearly $145B.

Under division head Kevin Hogan, the company has invested plenty of time and money in creating digital services at Valic, seeking new ways to use AI, data/analytics, and working with algorithms behind robo-advising platforms.

"Robos reaffirm how big the retirement opportunity is in the U.S.,” says Hogan. “An important part of our strategy is to make sure that we’re at the leading edge of how to work with those organizations.”

Source: Bloomberg's Sonali Basak and Julie Verhage

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