For a modest-size thrift company, RCSB Financial Inc. sells a lot of different annuities.
The $3.5 billion-asset company, which owns Rochester (N.Y.) Community Savings Bank, offers nine fixed and variable annuities. Many far larger banks and thrifts offer only five or six.
"We're constantly approached" by insurance companies - "once every other week " said Edward Pettenella, the executive vice president who oversees the thrift's consumer financial services group.
Customers have a number of criteria for selecting an annuity, Mr. Pettenella said.
Some just want to choose among brand-name companies. Rochester's top sellers of variable annuities include Cigna Group, Travelers Group, and ITT Hartford Life Insurance Cos. Customers can also buy fixed annuities from Cigna, Bankers Life Insurance Company of Florida, and USLife Corp.
Another feature customers look for is the length of the annuity contract. Customers differ on how long they want to lock up their money.
Also, some annuities have begun increasing their age limits so that even customers in their 80s can buy. And many senior citizens look for annuity companies willing to waive early withdrawal penalties, in case they need to cash out to pay for nursing care.
But Mr. Pettenella acknowledged that most customers are looking for the best rates, which is why his company regularly reviews its product list.
"Nine out of 10 times, customers are focused on rate," he said.
Kenneth Kehrer, a Princeton, N.J.-based annuities consultant, said many banks are beginning to beef up their annuity menus to fill various customer niches. He added, however, that other banks enter exclusive arrangements with two or three annuity companies and "get more attention from those carriers and higher commissions."
Rochester Community began selling annuities in 1986. Annuities and life insurance are sold by 20 representatives through the bank's subsidiary, Community Diversified Insurance Agency. Mr. Pettenella said his salespeople had put $400 million into annuities since then.
Most recently, the thrift company has added to its menu the annuities of Aetna Life Insurance and Annuity Co., a giant in the industry.
The thrift has added Hartford, Conn.-based Aetna's Marathon Plus variable annuity.
