X5 Advantage Annuity℠ Offers Powerful Opportunity to Increase
Income Before and During Retirement
AIG Life & Retirement, a division of American International
Group, Inc. (NYSE: AIG) and a leading provider of annuities, today
announced a new relationship with Annexus, an innovator in
delivering retirement solutions to the marketplace. The
relationship is part of AIG’s continuing strategy to expand its
distribution network and further diversify a broad lineup of
retirement income solutions.
AIG Life & Retirement and Annexus will bring consumers X5
Advantage, an index annuity issued by AIG member company American
General Life Insurance Company and provided through a network of
Annexus-contracted independent distribution companies. X5 Advantage
offers exclusive indices developed by premier asset managers PIMCO
and Morgan Stanley Investment Management and designed to help
provide upside growth potential.
X5 Advantage also offers an innovative income feature that can
double any interest credited to the annuity to help provide more
guaranteed income for life. Along with growth potential and
lifetime income, X5 Advantage offers principal protection against
market downturns so principal cannot be lost due to poor index
performance.1
“We share with Annexus a commitment to innovation and customer
value and are excited to begin this new relationship with a firm
that has a proven history of delivering solutions to meet diverse
retirement needs,” said Todd Solash, Chief Executive Officer of
Individual Retirement at AIG. “Our ongoing strategy at AIG Life
& Retirement is to leverage a broad product portfolio with a
strong distribution network to satisfy the evolving needs of our
customers. Together, AIG and Annexus are launching X5 Advantage to
help Americans pursue their goal of achieving financial and
retirement security.”
As consumers save for retirement, they may earn interest based
on the performance of the indices, and their lifetime income base
under X5 Advantage can grow by up to 200% of credited interest.2
Even after withdrawals begin, the lifetime income base may continue
to increase by 150% of credited interest.
“With interest rates at all-time lows, index annuities have
emerged as valuable solutions to help consumers grow assets,
address longevity risk and guarantee income for life,” said Don
Dady, Annexus Co-Founder. “X5 Advantage combines growth potential
based on indices from two of the world’s top asset managers with an
increasing lifetime income opportunity designed to help keep pace
with rising costs in retirement.”
X5 Advantage also features a confinement benefit, available
after 10 years, which can double a client’s annual income if he or
she becomes confined to a nursing home or other qualified
facility.3 In addition, the annuity features an enhanced death
benefit.4
“The increasing income annuity market continues to grow, fueling
demand for more competitive solutions,” said Ron Shurts, Annexus
Co-Founder. “We strive to provide our distribution partners with
the most innovative products on the market, and X5 Advantage
represents the next generation of retirement income.”
“We recognize the importance of developing effective
accumulation and income strategies to help our clients achieve a
long, comfortable retirement,” said Bryan Pinsky, Senior Vice
President of Individual Retirement Pricing and Product Development
at AIG. “That’s why we chose PIMCO and Morgan Stanley Investment
Management to develop the indices in X5 Advantage, and why we’re
working with Annexus to help more Americans realize their vision of
retirement.”
Guarantees are backed by the financial strength and
claims-paying ability of American General Life Insurance Company
(AGL). AGL does not issue products in the state of New York.
1 Withdrawals and withdrawal charges, when applicable, will
reduce principal.
2 Interest credited to the annuity is subject to certain
contract provisions, such as index rate caps, which may limit or
restrict the amount of interest credited
3 The confinement benefit is called the Enhanced Income Benefit
in the contract, may vary by state and is subject to additional
terms and conditions. For more information, please contact your
financial professional or agent.
4 The enhanced death benefit is called the Income Rider Death
Benefit in the contract, must be taken over 5 years and cannot be
withdrawn as a lump sum. The Income Rider Death Benefit may vary by
state. For more information, please contact your financial
professional or agent.
Index annuities are not a direct investment in the stock market.
They are long-term insurance products with guarantees backed by the
claims-paying ability of the issuing insurance company. They
provide the potential for interest to be credited based in part on
the performance of the specified index, without the risk of loss of
premium due to market downturns or fluctuations. Contract value can
be reduced for withdrawals and, if applicable, withdrawal charges.
Index annuities may not be suitable or appropriate for all
individuals.
There is no guarantee that the growth potential of an index
annuity will keep pace with inflation or rising costs in
retirement. In addition, no interest will be credited in flat or
down markets.
Withdrawals may be subject to federal and/or state income taxes.
An additional 10% federal tax may apply if individuals make
withdrawals or surrender their annuity before age 59½. Individuals
should consult their tax advisor regarding their specific
situation. Withdrawals may also be subject to a withdrawal charge
that begins at 10% in year 1 and declines to 0% in year 11. See the
Owner Acknowledgment and Disclosure Statement for more
information.
The Morgan Stanley Expanded Horizons Index℠ is a service mark of
Morgan Stanley Investment Management Inc. or its affiliates
(collectively “MSIM”) and has been licensed for use for certain
purposes by American General Life Insurance Company (“licensee”).
The intellectual and other property rights to the methodology and
formula of the Index are owned by or licensed to MSIM. This annuity
(the “product”) is not sponsored, endorsed, sold or promoted by
MSIM or any of its third party suppliers including data licensors
(“MSIM and its suppliers”). MSIM and its suppliers make no
representations or warranties regarding the advisability of
adopting a strategy, obtaining investment exposure to the Index
through any means, investing in financial products generally or
purchasing the product particularly or the ability of the Index to
track general market performance. MSIM is not acting as investment
adviser to you in connection with, or through, the Index or the
product, and MSIM undertakes no, and expressly disclaims any,
fiduciary duties to you in connection with the Index or the
product. Past performance of an index is not an indicator of or a
guarantee of future results. Use and distribution of the Index,
index data and MSIM’s service marks are prohibited without MSIM’s
express written permission.
MSIM and its suppliers disclaim any and all warranties and
representations, express and/or implied, including any warranties
of merchantability or fitness for a particular purpose or use,
including with respect to the index, index data and any information
included in, related to, or derived therefrom (“index data”). MSIM
and its suppliers shall not be subject to any liability for any
direct, indirect, special, punitive, consequential or any other
damages (including lost profits) with respect to the product or the
adequacy, accuracy, timeliness or completeness of the index and the
index data, all of which have been provided and are provided on an
“as is” basis. Any decision to purchase and or invest in the
product is at your own risk.
The PIMCO Global Elite Markets Index™ (the “Index”) is an excess
return index that allocates to a diversified range of global equity
and global government bond markets. It employs a rules-based
rebalancing process that is designed to enhance returns and manage
volatility. The Index is a trademark of Pacific Investment
Management Company LLC (“PIMCO”) and has been licensed for use for
certain purposes by American General Life Insurance Company (“the
Company”) with respect to this annuity (“the Product”). The Index
is the exclusive property of PIMCO and is made and compiled without
regard to the needs, including, but not limited to, the
suitability, appropriateness or needs, as applicable, of the
Company, the Product, or owners of the Product. The Product is not
sold, sponsored, endorsed or promoted by PIMCO or any other party
involved in, or related to, making or compiling the Index. PIMCO
does not provide investment advice to the Company with respect to
the Product or to owners of the Product. It is not possible to
directly invest in the Index.
Neither PIMCO nor any other party involved in, or related to,
making or compiling the Index has any obligation to continue to
provide the Index to the Company with respect to the Product.
Neither PIMCO nor any other party involved in, or related to,
making or compiling the Index makes any representation regarding
the Index, Index information, performance, annuities generally or
the Product particularly.
PIMCO disclaims all warranties, express or implied, including
all warranties of merchantability or fitness for a particular
purpose or use. PIMCO shall have no responsibility or liability
whatsoever with respect to the Product.
The Index is comprised of a number of constituents, some of
which are owned by entities other than PIMCO. The Index relies on a
variety of publically available data and information and licensable
equity and fixed income sub-indices. The Index will be calculated
independently from PIMCO. All disclaimers referenced in herein
relative to PIMCO also apply separately to those entities that are
owners of the constituents of the Index and the Index calculation
agent.
Index annuities are issued by American General Life Insurance
Company (AGL), 2727-A Allen Parkway, Houston, Texas 77019.
Contract Number: AG-808 (7/19). AGL is a member of the American
International Group, Inc. (AIG) family of financial services
companies. The underwriting risks, financial and contractual
obligations and support functions associated with the annuities
issued by AGL are its responsibility. AGL does not issue products
in the state of New York. Annuities and riders may vary by state
and are not available in all states. AIG and its member companies
are not affiliated with Annexus, PIMCO and Morgan Stanley.
Not FDIC or NCUA/NCUSIF Insured May Lose Value • No Bank or Credit
Union Guarantee Not a Deposit • Not Insured by any Federal
Government Agency
About AIG Life & Retirement
AIG Life & Retirement brings together a broad portfolio of
protection, retirement savings, investment and lifetime income
solutions to help people achieve financial and retirement security.
The business consists of four operating segments – Individual
Retirement, AIG Retirement Services, Life Insurance and
Institutional Markets – and holds longstanding, leading market
positions in many of the markets it serves.
AIG Life & Retirement includes AIG member insurance
companies American General Life Insurance Company (Houston, TX),
The United States Life Insurance Company in the City of New York,
and The Variable Annuity Life Insurance Company (VALIC), Houston,
TX as well as their affiliates. Securities products are distributed
by AIG Capital Services, Inc., member FINRA. Additional information
about AIG Life & Retirement can be found at
www.linkedin.com/showcase/aig-life-&-retirement.
About AIG
American International Group, Inc. (AIG) is a leading global
insurance organization. AIG member companies provide a wide range
of property casualty insurance, life insurance, retirement
solutions, and other financial services to customers in more than
80 countries and jurisdictions. These diverse offerings include
products and services that help businesses and individuals protect
their assets, manage risks and provide for retirement security. AIG
common stock is listed on the New York Stock Exchange.
Additional information about AIG can be found at www.aig.com |
YouTube: www.youtube.com/aig | Twitter: @AIGinsurance
www.twitter.com/AIGinsurance | LinkedIn:
www.linkedin.com/company/aig. These references with additional
information about AIG have been provided as a convenience, and the
information contained on such websites is not incorporated by
reference into this press release.
AIG is the marketing name for the worldwide property-casualty,
life and retirement, and general insurance operations of American
International Group, Inc. For additional information, please visit
our website at www.aig.com. All products and services are written
or provided by subsidiaries or affiliates of American International
Group, Inc. Products or services may not be available in all
countries and jurisdictions, and coverage is subject to
underwriting requirements and actual policy language. Non-insurance
products and services may be provided by independent third parties.
Certain property-casualty coverages may be provided by a surplus
lines insurer. Surplus lines insurers do not generally participate
in state guaranty funds, and insureds are therefore not protected
by such funds.
About Annexus
Annexus designs solutions to help Americans grow and protect
their retirement savings. For over a decade, Annexus has developed
market-leading fixed indexed annuities and indexed universal life
insurance products. In close collaboration with design partner
Genesis Financial, Annexus has forged relationships with many of
the industry’s leading insurance carriers and the world’s largest
investment banks. Find out more about Annexus and its products at
www.annexus.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200511005479/en/
Sabra Purtill (Investors): 212-770-7074; sabra.purtill@aig.com
Matt Burkhard (Media): 212-458-4253; matthew.burkhard@aig.com
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