Allstate, Putnam to Sell Variable Annuities

Home and auto insurer Allstate Corp. will form a joint venture with Putnam Investments to sell a stock-linked retirement saving plan. The companies will sell variable annuities, a hybrid of mutual funds and insurance policies that let people make tax-deferred investments in the stock market. The contract, which can provide buyers with a stream of income until death, have become a top-selling form of insurance as Americans increasingly worry about paying for retirement. Putnam and Allstate plan to begin offering the co-branded variable annuities in May. Customers will be able to choose from 21 Putnam funds. Boston-based Putnam is a unit of March & McLennan Cos. Shares of Northbrook, Ill.-based Allstate dropped $1.81, closing at $37.06, while Marsh & McLennan rose 75 cents to $74.25, both on the NYSE. Both firms already offer annuities separately and will continue to carry those existing products.