AIG Life & Retirement Creates New Formal Planting With Improved Annual Outcomes

0
2
AIG Life & Retirement Creates New Formal Planting With Improved Annual Outcomes

“We are pleased to launch the Advanced Outcomes Annuity, a new category of structured investing where financial professionals and their clients can own the moment and drive investment outcomes,” said Bryan Pinsky, President, Individual Retirement, AIG Life & Retirement. “The structured outcome investments emphasize stronger growth potential and targeted downside protection, while the overall product design creates a valuable level of investment flexibility.”

The Advanced Outcomes Annuity also includes Capture-Reset-Reinvest, the flexibility to reposition both the growth potential and downside protection options—at any time and for any reason. As a result, financial professionals and their clients can capture investment gains whenever they choose and then reset the downside protection while also reinvesting in new strategies, all within a tax-deferred vehicle. The variable annuity has a six-year surrender period.

The Advanced Outcomes Annuity is the first-ever annuity to offer structured strategies with a fund investment term of six months, in addition to more traditional one-year and six-year strategies. These six-month fund investment terms deliver even more flexibility and control by providing financial professionals and their clients the opportunity to adjust the investment strategy more frequently.

“The ability to Capture-Reset-Reinvest is at the heart of the incredible flexibility we have built into the Advanced Outcomes Annuity and its structured investment strategies,” said Pinsky. “We anticipate financial professionals to have clients who may see solid investment returns over a period of time and then want to lock in those gains while also repositioning opportunistically. Investment opportunities can change, so the Advanced Outcomes Annuity gives clients a way to adjust their structured investments with their expectations for the future.”

Story Highlights


  • As a variable annuity featuring structured outcome investments, the Advanced Outcomes Annuity targets higher growth than many traditional structured annuities while also seeking a level of downside protection, through the unique investment strategies that have been developed with Milliman Financial Risk Management LLC (Milliman FRM). One example of the new product’s growth potential is that nearly two-thirds of the investment strategies are not subject to a cap, a product term that describes a maximum performance applied to an annuity’s return over a selected time period.


  • The structured outcome investments in the Advanced Outcomes Annuity are designed to create opportunities for growth with three different options for the variable annuity to capture growth potential: par up (pre-defined percentage of market gains), spread (gains related to a market index less an initial, pre-defined percentage) and stacker cap (the market gains of an index such as NASDAQ-100® added to the S&P 500®, each up to a pre-defined level). The annuity also provides three downside protection options that seek to reduce the impact of market downturns: par down (pre-defined percentage of a market decline), floor (maximum market loss) and buffer (pre-defined level of protection against market losses).

The structured outcome strategies in the Advanced Outcomes Annuity are independently managed by Milliman FRM. A leading provider of outcome-based investment strategies, Milliman FRM offers a state-of-the-art approach to investing that seeks to reshape the risk and return profile of a market over a given time period.

“We are honored to join with AIG Life & Retirement as they continue their tradition of annuity excellence and innovation,” said Adam Schenck, Managing Director, Head of Fund Services, Milliman FRM. “Milliman is at the leading edge of structured outcome investments, and we are excited to be writing the next chapter with AIG Life & Retirement.”

Advanced Outcomes Annuity offers structured outcome strategies with underlying funds that have characteristics unlike many other traditional investment products and may not be suitable for all investors. There is no guarantee that the outcomes for a specific fund term will be realized. For more information regarding whether an investment in these funds is right for your client, please see the product and fund prospectuses.

There is no assurance that a variable portfolio’s strategy or investment process will achieve its specific investment objectives.

Indices are unmanaged. Clients cannot invest in an index directly. Index returns do not assume dividend reinvestment.

S&P 500® Index: Tracks the performance of 500 large U.S. companies. It is one of the most commonly followed equity indexes. The S&P 500® Index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by American General Life Insurance Company (“AGL”) and affiliates. Standard & Poor’s®, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by AGL and affiliates. AGL and affiliates’ products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates, and none of such parties make any representation regarding the advisability of purchasing such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® Index.

Nasdaq-100®: Tracks the 100 leading domestic and international stocks (non-financial companies) based on market capitalization. The Nasdaq®, Nasdaq-100®, Nasdaq-100 Index®, and QQQ® are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use for certain purposes by American General Insurance Corporation and its wholly-owned subsidiaries and affiliates (collectively, “AIG”). The annuity product to which this disclosure applies (the “Product”) has not been passed on by the Corporations as to their legality or suitability. The Product is not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

Variable annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and if taken prior to age 59½, an additional 10% federal tax may apply.

All contract and optional benefit guarantees are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased.

Advanced Outcomes Annuity is sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. A prospectus may be obtained by calling 1-877-445-1262. Investors should read the prospectus carefully before investing.

This material is general in nature, was developed for educational use only, and is not intended to provide financial, legal, fiduciary, accounting or tax advice, nor is it intended to make any recommendations. Applicable laws and regulations are complex and subject to change. For legal, accounting or tax advice, clients should consult the appropriate professional.

An investment in Advanced Outcomes Annuity involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Products and features may vary by state and may not be available in all states or firms. We reserve the right to change fees for features that are a part of this product; however, once a contract is issued, the fees will not change. The purchase of Advanced Outcomes Annuity is not required for, and is not a term of, the provision of any banking service or activity.