HARTFORD, Conn., June 24, 1999 — (NYSE: ΑET) Aetna
Retirement Services announced today that Aetna Life Insurance and Annuity Company (ALIAC)
has entered into an agreement with MBL Life Assurance Corporation to issue new Aetna
Immediate Annuity contracts in substitution for certain MBL Life variable annuity
contracts.
MBL Life is a former subsidiary of the Mutual
Benefit Life Insurance Company, which was placed in rehabilitation by the New Jersey
Insurance Commissioner in 1991. MBL Life assumed and reinsured the insurance liabilities
and assumed most of the assets of Mutual Benefit Life as part of a court-approved
rehabilitation plan. The ALIAC transaction is one of the final steps in the successful
conclusion of the Mutual Benefit Life rehabilitation.
"Aetna’s annuity contracts are
especially designed to help meet the needs of individuals in their retirement years,"
said Catherine Smith, Chief Financial Officer of Aetna Retirement Services. "We offer
a comprehensive slate of investment options that can be tailored to provide a stream of
income for life."
Most of the affected contract participants in the
ALIAC transaction are retirees who have annuitized under the terms of the MBL Life
contracts. The transaction provides the retirees with an ALIAC contract that, while
substantially similar, provides increased investment flexibility.
ALIAC’s Immediate Annuity has 26 funds with
fund transfer capability during the terms of the payout. Subject to approval by the New
Jersey Superior Court overseeing the rehabilitation, and the satisfaction of other closing
conditions, closing is expected to take place on or about July 14, 1999 with the first
benefit payment from ALIAC anticipated to occur on August 1st.
ALIAC enjoys strong ratings from the major
insurance company rating agencies which pertain to its financial strength and not to the
safety and performance of the investment options. ALIAC was chosen by MBL Life because of
its ability to provide a competitive product and professional customer service.
Aetna Life Insurance and Annuity Company, a
wholly owned subsidiary of Aetna Retirement Services, Inc., provides a full range of
products for a lifetime of financial needs. Securities are offered by Aetna Investment
Services, Inc. and Aetna Life Insurance and Annuity Company. Aetna Investment Services,
Inc., and Aetna Retirement Services, Inc. are subsidiaries of Hartford, Connecticut-based
Aetna Inc., one of the nation’s largest stockholder-owned insurance and financial
services companies.
