Citi and global insurance provider MetLife have announced a joint venture to launch Auvida, a new variable annuity aimed at Spanish investors' pension plans.
"This is a ground-breaking deal for MetLife, and we are delighted to be working with such an innovative and influential financial services provider as Citi," said Dominic Grinstead, strategic development and marketing director at MetLife. "We believe the importance of innovative solutions in the face of unprecedented stock market volatility, increasing inflation and longevity, has never been clearer."
Auvida will be distributed as a variable annuity, a product designed to accumulate returns while providing protection and income in a life insurance vehicle. Auvida is aimed at investors over 40 years old; it pays a minimum 3% annual guaranteed return, independently of how the stock markets behave, and allows investors to exit the product keeping the value of the investment.
"In uncertain scenarios such as the current one, it is important to offer our clients protection against market volatility," says José Pons, director of investment products at Citibank, Spain. "At Citibank, we work to offer our clients solutions to meet their financial needs... and help them to plan their retirement. The agreement with MetLife is in line with our priorities: client focus, innovative products, experience and risk management."