American Express Financial Corporation and FleetBoston Financial announced yesterday they have formed a strategic alliance to build and distribute investment and annuity products through their retail financial networks. The two companies will introduce two new annuities, the American Express Galaxy Premier Variable Annuity and the Preferred Gold Fixed Annuity issued by American Enterprise Life Insurance Company, a division of IDS Life Insurance Company, which is a subsidiary of American Express Financial Corporation.
! “This strategic alliance with FleetBoston is an exciting addition for American Express,” says Randy Gabrielson, senior vice president, Insurance and Strategic Alliances, American Express. “We are expanding our business to provide clients with numerous choices through strategic alliances. This is a strong and exciting opportunity for our clients and shareholders.”
The American Express(R) Galaxy Premier Variable Annuity and the Preferred Gold Fixed Annuity(TM) will be sold to consumers through FleetBoston’s network of 1,000 financial consultants. FleetBoston’s Galaxy and Columbia Mutual Funds will be sold through the 11,000 American Express Financial Advisors.
“Our alliance with American Express allows us to reach more customers with a greater selection of financial products, a tool needed to be more successful in the financial industry,” said Richard Joseph, Managing Director Product Distribution and Development, Fleet Investment Management.
“This relationship will allow both companies to better meet the changing needs of its customers. Distribution alliances such as these are the wave of the future and are the result of the mutual strength of both companies distribution capabilities and asset management capacities,” said Bob Ash, Senior Managing Director Chief Executive Officer, Fleet Investment Management.
“FleetBoston and American Express were both looking for distribution alliances and we were brought together by Thompson & Company, an insurance brokerage firm in Pasadena, Calif.,” said FleetBoston’s Rich Joseph.
FleetBoston Financial is the eighth-largest financial holding company in the United States. An $187 billion diversified financial services company, it offers a comprehensive array of innovative financial solutions to 20 million customers in more than 20 countries and territories. Among the company’s key lines of business are: retail banking, with over 1,250 branches and over 3,400 ATMs in the Northeast; commercial banking, including capital markets/investment banking and commercial finance; investment services, including discount brokerage; and full service banking through more than 250 offices in Latin America.
FleetBoston Financial is headquartered in Boston and listed on the New York Stock Exchange (NYSE: FBF) and the Boston Stock Exchange (BSF: FBF).
American Express Financial Advisors, with more than $289 billion in assets, has been in operation in the U.S. for more than a century. The company’s products and services are distributed through a nationwide network of more than 11,000 financial advisors, third party relationships with major financial institutions, insurance agencies, broker/dealers and an institutional business that provides 401(k) and defined benefit plans to companies.
American Express Financial Advisors Inc. is the principal underwriter for the insurance and annuities. Member NASD. Insurance and annuities are made available through AEL, or in New York, through American Centurion Life Assurance Company. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker-dealer.