Consolidation Challenges Small Firms.

NEW ORLEANS For the past several years, larger variable annuities companies have been acquiring smaller ones. In early 1999, SunAmerica of Los Angeles was acquired by American International Group of New York; in early 2000 GenAmerica Corporation of St. Louis was acquired by Metropolitan Life Insurance Company of New York and early last month, Fortis Financial Group of St. Paul, Minn. was acquired by Hartford Financial Services Group of Hartford, Conn. In early April, AIG made a bid for American General of Houston. That transaction, if completed, would create the largest seller of variable annuity contracts in the U.S.

Clearly, something has been driving the industry …