Annuities can help retirees secure a circulate of lifetime earnings. In variable annuities, account values can exchange based on fluctuations in shares and bonds. some insurers offered the contracts with a guarantee that the values would upward thrust over time.
those guarantees burned insurers when stocks crashed within the monetary disaster, and groups together with Hartford and sun existence financial Inc. have retreated from the commercial enterprise. Prudential monetary Inc., the second-largest U.S. life insurer, has reduced some variable-annuity ensures to amplify margins, weighing on income.
AIG sells property-casualty coverage globally and life and retirement merchandise especially in the U.S. The lifestyles division generated $4.5 billion in pretax income inside the first nine months of closing yr and the property-casualty unit made $3.eight billion. The business enterprise divested worldwide existence insurers to assist pay off a U.S. bailout that started out in 2008 and swelled to $182.3 billion.