The tontine, which is an interesting mixture of group annuity, group life insurance, and lottery, has a peculiar place in economic history.
The American Council on Gift Annuities, a group that sets rates on such plans, announced recently that it was lowering them, effective Jan . 1
Under the deal, AXA would sell its British protection, annuities and group pensions business to Resolution, but would keep its wealth management and direct protection operations in Britain.
The Retirement segment manufactures and distributes products and provides administrative services for qualified and non-qualified retirement plans and offers guaranteed investment contracts, funding agreements, institutional and retail notes, structured settlement annuities and group annuities.
MORNINGSTAR INC., Chicago, a mutual fund research firm, said it had bought the variable annuity research group of Finetre Corp., Herndon, Va., a software firm, for $9 million.
A group annuity differs from an individual annuity in that the annuity payments are based upon the assumed length of lives of members of a given group.
That interest is based on a rate used by life insurance companies for obligations similar to pensions known as group annuities.
G.M. will spend $3.5 billion to $4.5 billion to finance the buyouts, buy the group annuities, and create the new plan for existing salaried workers.
By styling 401(k) plans as group annuities, sellers can shop for the most lax oversight.
Or insurers can declare their group annuities are purely insurance products.
