Annuity Marketing Alliance Formed.Two financial-services institutions managing at least $382 billion in assets have formed a strategic alliance to market variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. and mutual funds. American Express American Express (NYSE: AXP), sometimes known as "AmEx" or "Amex", is a diversified global financial services company, headquartered in New York City. The company is best known for its credit card, charge card and traveler's cheque businesses. Financial Corp., a division of Minneapolis-based American Express Co., and Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. & Co., San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , said they would launch two annuities, the Wells Fargo Advantage variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. and the Wells Fargo Advantage Builder variable annuity, both issued by American Enterprise Life Insurance Co., a division of American Express. Wells Fargo has a network of 850 financial consultants, while American Express Financial Advisors has a field force of more than 11,300. Both will offer the two new variable annuities. American Express mutual funds will be available to Wells Fargo customers, and Wells Fargo mutual funds will be available to those of American Express. The companies said they also may explore opportunities in trust services, insurance and other investment services. Jan Breyer, corporate senior vice president of American Express Financial Advisors, said in a statement the company is committed to growing its business and providing more choices to clients through strategic alliances such as this one. American Enterprise Life, the issuer of the new Wells Fargo variable annuities, primarily markets single-premium deferred annuity Single-Premium Deferred Annuity (SPDA) An IRA-like annuity into which an investor makes a lump-sum payment that is invested in either a fixed-return instrument or a variable-return portfolio, which is taxed only when distributions are taken. contracts through financial institutions. Sales of individual variable annuities through banking organizations grew about 25% in 1999 to more than $13.9 billion, according to a report by Kenneth Kehrer Associates, Princeton, N.J. |
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