An American International Group unit has introduced its first fixed annuity for group retirement plans.
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It will be sold through broker-dealers and third-party administrators, said AIG Valic of Houston, the company's group retirement subsidiary, on Thursday.
The annuity "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," said Danny Swick, AIG Valic's vice president for alternative distribution, in its press release.
Interest on the AIG Valic Guaranteed Fixed-Interest Option is guaranteed not to fall below 2% (3% in New York, Oregon and Utah).
