AIG expands pension risk business

American International Group (AIG) has expanded its presence in the pension risk transfer market after reaching agreements on the two largest plan termination transactions of 2017.

The two transactions, entered into by American General Life Insurance Company, part of AIG’s Life & Retirement business, represented over $1.5 billion in pension plan obligations covering more than 24,000 retirees, beneficiaries, deferred and active members.

AIG expects continued growth in 2018 as well as over the longer term in the pension risk transfer market.

AIG member companies have provided commitments with respect to over $2.1 billion of pension risk transfer business in 2017 – serving over 35,000 retirees, beneficiaries, deferred and active members.

Ali Vaseghi, managing director and chief operating officer – institutional markets and leader of the pension risk transfer business, said: “We are seeing significant opportunity in this market, driven by tax reform, repatriation of assets from international operations and improved funded status.

"AIG’s investment expertise, together with our strong operational capabilities, prudent risk management, disciplined pricing and strong balance sheet, position us well to meet the needs of this growing marketplace, while remaining focused on achieving targeted economic returns.”

Vaseghi added: “For over 35 years AIG has established itself as a trusted partner to plan sponsors as they navigate the plan termination process. The strength of our underwriting expertise – in addition to our proven track record through the onboarding and ongoing administration of more complex plan termination cases – has given our clients confidence in our transaction execution during this important process.”

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