American International Group (AIG) expects continued growth in the pension risk transfer market throughout 2018 and beyond, as the insurance giant announces agreements on the two largest plan termination transactions in 2017.
The deals, which represented over $1.5 billion in pension plan obligations covering more than 24,000 retirees, beneficiaries, deferred and active members, were entered into by American general Life insurance Company, part of AIG’s Life & Retirement business, and further expand AIG’s presence in the pension risk transfer market.
Speaking on the short and long term growth that is expected in the pension risk transfer market, Managing Director and Chief Operating Officer (COO), Institutional Markets and leader of the Pension Risk Transfer business, Ali Vaseghi, 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.
“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” concluded Vaseghi.
