Advance strikes annuity deal with Citicorp
By Jason Spits
AdvanceFunds Managementhas struck a distribution deal with Citicorp Life Insurance to offer the latter’s Fixed Term Immediate Annuity to advisers within theSt Georgenetwork.
Advance managing director Kate Mulligan says the move is consistent with Advance’s policy of taking to market ‘best of breed’ products via the outsourcing of manufacturing so as to provide a wide range of different products.
She says Advance made the decision to badge an annuity product after increasing demand from advisers through the latter half of 2003, which has in turn resulted in $10 million being written to the product since its rollout in early December.
Citicorp’s head of insurance investments Richard Collis says his group has been looking at growing the distribution of its products and has an existing 10 year relationship with St George, and could retain the strength of its own brand by co-labelling the product with St George.
According to Mulligan, Advance will stick with the single product for the short term and concentrate on rolling it across the distribution arms of the whole group which includes 400 St George Bank based planners, 600 Securitor planners, as well as the 1,200 advisers in Professional Investment Services who have access to St George Bank products.
The product, labelled St George/Citicorp Fixed Term Immediate Annuity, will offer an immediate annuity with a one to 20 year term for unrestricted non-preserved eligible termination payments and private monies.
Collis says Citicorp will pay a fee to Advance for the badging while St George advisers will service clients using the products.
He says this will allow Citicorp to save on its distribution costs and improve the relationship with St George, which from 2002 to 2003 resulted in a two-times increase in funds inflows from its advisers.
AUTHOR
Jason Spits
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