Chase Initiates Group of Variable Annuities

Chase Manhattan Corp. has launched a family of variable annuities that will be marketed through branches and outside brokerages.

The New York banking company's Vista Capital Advantage annuities are linked to six of Chase's own Vista mutual funds. The annuities also include five fixed options whose rates are reset at different annual intervals.

Chase chose SunAmerica Inc. to underwrite the annuity contracts and to support sales and marketing efforts. SunAmerica, a Los Angeles insurance company, has also helped First Interstate Bancorp create its proprietary variable annuities.

All together, roughly 15 banks have initiated their own versions of these tax-deferred investment products since early 1993, when Fleet Financial Group became the first commercial bank to roll out its own variable annuities.

In the race to get assets into the products, Chase may have a leg up on its bank competitors. Aside from its network of 350 branches, it will also market the annuities through 1,000 brokerages and financial planning firms that now offer the company's mutual funds.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER