Annuities offer assured earnings in retirement backed by insurance coverage companies. They are lengthy-term insurance coverage goods with guarantees backed by the claims-paying capacity of the issuing insurance coverage organization. AIG Life and Retirement is the enterprise name of a group of organizations offering insurance, retirement and investment solutions via a diverse family members of monetary solutions firms. The New York insurer sold $3.065 billion of fixed annuities in the channel, extra than 4 instances as considerably as No. two Allstate Financial of Northbrook, Ill.
The booming annuity sales are a bright spot for American International Group, which have to raise money to pay back the federal government. HOUSTON-( Business enterprise WIRE )-American International Group, Inc. For the 1st six months of 2003, more than half the income todays mobile that went into variable annuity purchases in banks had been placed in the fixed buckets. Fixed sales had been down 15% from the third quarter of final year, when the item was still simply dominating the bank market place.
Lifetime Income Plus guarantees the growth of the Revenue Baseâ€”the quantity on which lifetime withdrawals are basedâ€”by locking in the higher of prospective interest earnings or an annual revenue credit of up to 7%. Retirement earnings is certain to rise with a partial income credit, as extended as withdrawals are taken within the terms of the rider. 1 provider that limited subaccounts in its variable annuities was Nationwide Economic Solutions Inc.
A spokesman for A.I.G., Mark Herr, said the unit, the American Life Insurance Firm, had restored its capital by transferring risks utilizing coinsurance and modified coinsurance,â€ amongst other techniques. Some insurers are selling annuities at prices that suggest that they are either creating harlow homefinder additional danger into the investment portfolio than could be prudent, or using this as a way of raising money, probably to pay off other obligations,â€ said Gary E. Wendlandt, the chief investment officer and vice chairman of New York Life.
Lifetime Revenue Plus has an annual charge of .95% of the Income Base.
Annuities deliver guaranteed revenue in retirement backed by insurance companies. You agree to obtain occasional updates and particular gives for The New York Times’s items and solutions. In the third quarter, Western National sold extra fixed annuities in banks than any other insurer, according to Kehrer-Limra, a study and consulting firm that tracks sales of insurance and investment items in banks. Fixed annuity contracts typically run for several years, and even just before A.I.G.’s bailout last year, its shoppers started to have qualms about tying up their revenue with a enterprise whose future was uncertain.
Lifetime Revenue Plus guarantees the growth of the Revenue Baseâ€”the quantity on which lifetime withdrawals are basedâ€”by locking in the greater of possible interest earnings or an annual income credit of up to 7%. Retirement earnings is certain to rise with a partial earnings credit, as lengthy as withdrawals are taken within the terms of the rider. A single provider that restricted subaccounts in its variable annuities was Nationwide Economic Solutions Inc.
AIG Life and Retirement is element of the American International Group, Inc. Judith Alexander, of Beacon Study, which tracks annuity terms, confirmed that Western National was providing some of the higher bonus ratesâ€ on fixed annuities through banks, allowing buyers to capture additional than 5 percent for a single year, but she said it also offered contracts that assured reduce prices, in the neighborhood of 2.six %, more than a longer period.
Industrywide, banks’ fixed annuity sales stayed about dead even with the second quarter, at $eight billion. HOUSTON-( Business WIRE )-American International Group, Inc.