AIG resurrects brand in financial advice industry

The giant insurer is once again anointing a broker-dealer and registered investment adviser network with the AIG name and launching AIG Financial Network.
JUN 10, 2014
American International Group Inc. is once again embracing its three-letter moniker — AIG — as it looks to expand in the financial advice industry. The giant insurer said Monday that it is once again anointing a broker-dealer and registered investment adviser network with the AIG name and launching AIG Financial Network. The company is home to 1,400 insurance agents. Of those, only about 100 have a Financial Industry Regulatory Authority Inc. license to sell securities. As those insurance agents get their securities licenses, they will become employee brokers registered with SagePoint Financial Inc., said John Deremo, an executive vice president with AIG Financial Distributors. SagePoint will expand to have two sides of its business, its current line for independent-contractor representatives and its new line for employees, which will operate under the brand AIG Financial Network. “With this particular group, the advisers are largely not securities licensed. They are life-insurance focused,” Mr. Deremo said. “Over the course of five years, we aim to have around 1,800 to 2,000 advisers in the network, with all [Finra]-licensed.” The insurance agents operate under another AIG company, American General Life Cos. One big focus will be securities products that create retirement income for clients, Mr. Deremo said. After the credit crisis and the market collapse of September 2008, AIG was one of the most widely disliked companies on Wall Street. It accepted an $85 billion bailout from the federal government, enraging consumers and financial advisers. The AIG brand became toxic, and the company in January 2009 changed the name of its network of independent broker-dealers — FSC Securities Corp., Royal Alliance Associates Inc.and AIG Financial Advisors Inc.— to Advisor Group. AIG Financial Advisors was renamed SagePoint Financial. That group will maintain its name and business structure. Mr. Deremo said that AIG has put the credit crisis and the fallout behind it. “We monitor our brand among financial advisers and the consumer, and we have seen dramatic improvement in that since the conclusion of the financial crisis, particularly once we paid back the government assistance, along with a $22 billion profit,” he said. “The focus is on the corporate brand and one AIG type of approach.”

Latest News

GLP-1 users are trading retirement savings for their prescriptions
GLP-1 users are trading retirement savings for their prescriptions

A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.

Inspired Healthcare sale price of properties is 59% of $1.2 billion sold by advisors
Inspired Healthcare sale price of properties is 59% of $1.2 billion sold by advisors

The hundreds of millions of dollars from a sale of Inspired Healthcare properties does not mean an immediate windfall for investors.

Class action alleges Webull misled investors about China operations
Class action alleges Webull misled investors about China operations

Its SEC filings said one thing - a congressional probe said another.

Investors accuse Netcapital of inflating revenue through sham deals
Investors accuse Netcapital of inflating revenue through sham deals

Sham agreements allegedly padded revenue by 345%.

Pre-retirees are looking for flexibility, security, and guidance when it comes to retirement income: Cerulli
Pre-retirees are looking for flexibility, security, and guidance when it comes to retirement income: Cerulli

"Most pre-retirees are uncomfortable making key retirement income decisions without an advisor's help," said Chris Bailey of Cerulli.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor