|AIG VALIC OFFERS GUARANTEED FIXED-INTEREST OPTION TO BROKER/DEALERS AND THIRD PARTY ADMINISTRATORS|
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Fixed-Rate Annuity Offers Highly Competitive Current Interest Rate with a Guaranteed Return
HOUSTON, October 13, 2005 — AIG VALIC, an industry leader in retirement planning and investment services for both public- and private-sector companies, today announced it will offer broker-dealers and third party administrators a guaranteed, fixed-rate investment option product that is suitable for group-sponsored 401(k), 403(b), 401(a) or 457(b) tax-qualified retirement plans.
The AIG VALIC Guaranteed Fixed-Interest Option product, issued by VALIC is a group fixed, unallocated annuity contract. It features a competitive rate of return and a minimum guaranteed credited interest rate. The rate is guaranteed not to fall below 2% (3% in New York, Oregon and Utah). Guarantees are subject to the claims-paying ability of VALIC. The product is traded through NSCC, offers record keeping fees and commissions.
“This guaranteed fixed option product offers a fixed rate of interest and provides an attractive alternative, given the recent disappointing returns that many stable-value and money-market funds have delivered, as well as the public's reemerging preference for higher rates with a guaranteed return,” said Danny Swick, Vice President, AIG VALIC Alternative Distribution. Clients now have access to a competitive fixed-rate retirement plan option that can, along with other plan investments, help participants diversify their portfolios.”
Proceeds from the sale of the VALIC Guaranteed Fixed-Interest Option product are invested in VALIC's General Account. The interest rate is declared monthly with interest credited on a daily basis at an annual effective rate. The product credits interest under a portfolio interest crediting method, in which all deposits receive the same return regardless of the date of the initial deposit.
AIG VALIC is one of the leading retirement plan services providers in the United States. For more than half a century, it has specialized in providing retirement programs and related investment, recordkeeping and administrative services to a variety of employer types, including for-profit and not-for-profit elementary and secondary education institutions, hospitals and healthcare organizations, higher education institutions and governmental entities. AIG VALIC serves 28,000 client groups and more than 2 million participant accounts. AIG VALIC is the marketing name for the group of companies comprising VALIC Financial Advisors, Inc.; VALIC Retirement Services Company; and The Variable Annuity Life Insurance Company (VALIC); each of which is a member company of American International Group, Inc.
American International Group, Inc. (AIG), world leaders in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG's common stock is listed in the U.S. on the New York Stock Exchange and ArcaEx, as well as the stock exchanges in London, Paris, Switzerland and Tokyo.