The ML Strategic Balanced Index™ seeks to provide a stable
return in changing market environments by dynamically blending
equity and fixed income indices
American International Group, Inc. (NYSE: AIG) is pleased to
announce the recent launch of a new index for use in select
contracts in the Power Series of Index Annuities®. These annuities
provide an attractive combination of principal protection, growth
potential and lifetime income. They are issued by American General
Life Insurance Company (AGL), a member company of AIG.
“With the uncertainties in today’s markets, many consumers are
looking for retirement saving strategies that can provide more
stable interest over time,” said Bryan Pinsky, Senior Vice
President, Individual Retirement Products, AIG Consumer Insurance.
“The ML Strategic Balanced Index™ in our Power Series of Index
Annuities offers a potential solution. It uses a systematic,
rules-based process to adjust exposures among equity, fixed income
and cash, and help stabilize returns in unpredictable markets.”
The ML Strategic Balanced Index™ blends the S&P 500® Index
(without dividends), which is widely regarded as the standard for
measuring equity performance, with the Merrill Lynch 10-Year
Treasury Futures Total Return Index™, which is used as a proxy for
the fixed income market. The non-discretionary process eliminates
the impact that emotions may have on allocation decisions, making
the process objective and transparent.
Volatility is also monitored on a daily basis and allocations
may be shifted to cash when short-term volatility rises above a
certain level and from cash when volatility falls. During highly
volatile markets, up to 100% of the ML Strategic Balanced Index™
may be allocated to cash to help protect against market
downturns.
“This dynamic mix of equities, fixed income and cash offers
upside potential while smoothing out volatility,” said Mike Treske,
Executive Vice President and Chief Distribution Officer at AIG
Financial Distributors. “It can be especially attractive to
individuals who want more growth potential than traditional fixed
income investments, but don’t want to take on the risk of investing
directly in the equity market.”1
In addition to the other Power Series index interest crediting
options, individuals can now choose from two strategies that earn
interest based in part on the performance of the ML Strategic
Balanced Index™. There is no cap on the annual interest; however,
these accounts have spreads (declared percentages) that will reduce
the amount of interest earned per year.
“Indices that blend multiple asset classes are increasingly
popular in the index annuity space,” said Treske. “We think this
new index will help us increase our share of the growing index
annuity market, and provide us with new opportunities to achieve
our goal of being the premier provider of protection, investment
and income solutions needed for financial and retirement
security.”
The ML Strategic Balanced Index™ was developed
by Bank of America Merrill Lynch (BofA Merrill), and AGL currently
has an exclusive license to use the index for U.S. fixed index
annuities and life products. BofA Merrill is one of the world’s
leading financial institutions.
Annuities are issued by American General Life Insurance
Company (AGL),2727-A Allen Parkway, Houston, Texas 77019.
Contract Numbers: Power Series of Index Annuities Modified
Single Premium Deferred Fixed Index Annuities, Contract Number
AG-800 (12/12) and AG-801 (12/12).
Rider Form Numbers: Market Value Adjustment (MVA) Rider, Form
Number AGE-8000 (12/12); Premium Enhancement Rider, Form Number
AGE-8001 (12/12); Lifetime Income Plus (Formal Name: Optional
Guaranteed Living Benefit Rider), Form Number AGE-8002 (9/13);
Annual Point-to-Point Index Interest Account Rider, Form Number
AGE-8003 (12/12); Monthly Point-to-Point Additive Index Interest
Account Rider, Form Number AGE-8005 (12/12); Terminal Illness
Rider, Form Number AGE-8007 (12/12); Extended Care Rider, Form
Number AGE-8008 (12/12); Activities of Daily Living Rider, Form
Number AGE-8009 (12/12); Periodic Average Index Interest Account
Rider, Form Number AGE-8024 (9/13); and Annual Point-to-Point and
2-Year Point-to-Point Interest Account Riders, Form Number AGE-8028
(4/14)
The underwriting risks, financial and contractual obligations
and support functions associated with products issued by American
General Life Insurance Company (AGL) are its responsibility. AGL
does not solicit business in the state of New York. Product and
features may not be available in all states and may vary by
state.
Federal and state income tax laws are complex and subject to
change. Please keep in mind that AGL and their distributors and
representatives may not give tax, accounting or legal advice. Any
tax statements in this material are not intended to suggest the
avoidance of U.S. federal, state or local tax penalties. Such
discussions generally are based upon the American General Life
Insurance Company’s understanding of current tax rules and
interpretations. Tax laws are subject to legislative modification,
and while many such modifications will have only a prospective
application, it is important to recognize that a change could have
a retroactive effect as well. Individuals should consult their tax
professional for information regarding their particular
situation.
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. Index annuities
may not be suitable or appropriate for all individuals.
Withdrawals may be subject to withdrawal charges. Withdrawals
may also 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.
The ML Strategic Balanced Index™ (the “Index”) embeds an annual
index cost in the calculations of the change in index value. This
“embedded index cost” will reduce any change in index value, and it
funds certain operational and licensing costs for the Index. Since
it will affect the return of the Index, it may also impact the
amount of interest credited to an index annuity or life product;
however, it is not a fee paid by you or received by American
General Life Insurance Company (AGL). AGL’s licensing relationship
with Merrill Lynch, Pierce, Fenner & Smith Incorporated for use
of the ML Strategic Balanced Index and for use of certain service
marks includes AGL’s purchase of financial instruments for purposes
of meeting its interest crediting obligations. Some portion of
those instruments will, or may be, purchased from Merrill Lynch,
Pierce, Fenner & Smith Incorporated or its affiliates.
Merrill Lynch, Pierce, Fenner & Smith Incorporated and its
affiliates (“BofA Merrill Lynch”) indices and related information,
the name “BofA Merrill Lynch”, and related trademarks, are
intellectual property licensed from BofA Merrill Lynch, and may not
be copied, used, or distributed without BofA Merrill Lynch’s prior
written approval. The products of licensee American General Life
Insurance Company have not been passed on as to their legality or
suitability, and are not regulated, issued, endorsed, sold,
guaranteed, or promoted by BofA Merrill Lynch. BOFA MERRILL LYNCH
MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO ANY
INDEX, ANY RELATED INFORMATION, ITS TRADEMARKS, OR THE PRODUCT(S)
(INCLUDING WITHOUT LIMITATION, ITS QUALITY, ACCURACY, SUITABILITY
AND/OR COMPLETENESS).
The Index is the property of Merrill Lynch, Pierce, Fenner &
Smith Incorporated, which has contracted with S&P Opco, LLC (a
subsidiary of S&P Dow Jones Indices LLC) to calculate and
maintain the Index. The Index is not sponsored by S&P Dow Jones
Indices or its affiliates or its third party licensors
(collectively, “S&P Dow Jones Indices”). S&P Dow Jones
Indices will not be liable for any errors or omissions in
calculating the Index. “Calculated by S&P Dow Jones Indices”
and the related stylized mark(s) are service marks of S&P Dow
Jones Indices and have been licensed for use by Merrill Lynch,
Pierce, Fenner & Smith Incorporated.
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 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 American General Life
Insurance Company and affiliates. American General Life Insurance
Company 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.
AIG Consumer Insurance represents a group of companies offering
insurance, retirement and investment services. AIG Consumer
Insurance and AGL are part of the American International Group,
Inc. (AIG) family of financial services companies. Not all products
are available in all firms.
American International Group, Inc. (AIG) is a leading
international insurance organization serving customers in more than
130 countries. AIG companies serve commercial, institutional, and
individual customers through one of the most extensive worldwide
property-casualty networks of any insurer. In addition, AIG
companies are leading providers of life insurance and retirement
services in the United States. Products or services may not be
available in all countries, and coverage is subject to actual
policy language. AIG common stock is listed on the New York Stock
Exchange and the Tokyo Stock Exchange.
Not FDIC or
NCUA/NCUSIF InsuredMay Lose Value • No Bank or Credit
Union GuaranteeNot a Deposit • Not Insured by any Federal
Government Agency
I5461PR1 (4/15)
1 Diversification does not guarantee a profit nor does it
protect against loss. Index annuities, equities and traditional
fixed income investments such as bonds have different objectives
and are subject to different risk and tax considerations. Index
annuities are long-term retirement savings vehicles with tax
deferral and guarantees backed by the claims-paying ability of the
issuing insurance company. Withdrawals from index annuities may be
subject to federal and/or state income taxes. Equities may provide
higher growth potential than other investments, but they are
subject to risk, including the possible loss of principal. Bonds
can provide regular income, but they are sensitive to interest rate
changes and credit and default risk. Equity and bond gains may be
taxed as ordinary income or capital gains. Please consult a
financial professional for information concerning your particular
situation.
American International Group, Inc.Linda Malamut,
310-772-6533linda.malamut@aig.com
American (NYSE:AIG)
Historical Stock Chart
From Apr 2024 to May 2024
American (NYSE:AIG)
Historical Stock Chart
From May 2023 to May 2024