ING Group Exits its Stake in Voya Financial
{March 9th, 2015} by PR Newswire Association LLC
NEW YORK, March 9, 2015 /PRNewswire/ — Voya Financial, Inc. (NYSE: VOYA) announced today the closing of ING Group’s underwritten public offering of approximately 32.0 million shares of Voya Financial common stock as well as Voya Financial’s repurchase of approximately 13.6 million shares of its common stock. In completing these transactions, ING Group has exited […]
Court Quashes Challenge To Bonus Annuity Feature
{March 9th, 2015} by Linda Koco, linda.koco@innfeedback.com
A federal court has sided with a lower court in rejecting allegations of fraud and misrepresentation in the marketing of a 10 percent bonus annuity feature in a fixed index annuity. In a decision rendered last week, the Ninth Circuit Court in Los Angeles tossed out those allegations, noting that the policy issuer, EquiTrust Life, […]
A heretical proposal: How about sharing risk with our annuity carriers?
{March 9th, 2015} by John Olsen
All of us know that the current low interest rate environment is placing serious pressure on insurer margins. It’s getting harder and harder for the issuer of fixed deferred annuities to maintain profitability when interest rates are at these historic lows. According to one source, some carriers prefer to deal with the problem by extending […]
New York Life Hiring Increases 6.4 Percent
{March 9th, 2015} by Cyril Tuohy, cyril.tuohy@innfeedback.com
New York Life has announced the hiring of 3,680 full-time agents in 2014, an increase of 6.4 percent over 2013. The company also announced in a news release that it intends to hire 3,600 financial professionals this year. New York Life did not release the company’s attrition rate. Mark W. Pfaff, co-president of the Insurance […]
Likelihood of interest rate hike by Sept. pegged at 56%
{March 9th, 2015} by Lananh Nguyen and Andrea Wong
(Bloomberg) — The euro lingered at almost an 11-year low as the European Central Bank began purchasing sovereign debt to head off deflation and spur economic growth. The common currency touched the weakest since September 2003 before trimming losses. It slid for the past three weeks as the central bank readied the quantitative-easing program after […]
Leveraging the key risk of retirement
{March 9th, 2015} by Stephen Kelley
With this month’s column, we’ve come full circle on the reason annuities are a good bet for income. To quickly recap, they work because they leverage the key risk associated with retirement planning: mortality. The thing that trips everyone up when trying to plan for income is the uncertainty about how long we are going […]
Prudential: Americans Don’t Have Financial Resources To Manage Emergencies
{March 6th, 2015} by ProQuest Information and Learning Company
Most American workers are not in a position to cover the financial needs they may face if they are unable to work or face other unexpected financial hardships, according to a research report released by Prudential Financial. In its release, the company said the research, published in a white paper called “Financial Wellness: The Next […]
Don’t Ignore Young Clients — They’ll Soon Be Millionaires
{March 6th, 2015} by Andrew Pavia
Advisors should stop denying that potential client with only $250,000 in investible assets. The “emerging affluent” investor group, with an average age of 40, might not have the most money in investible assets at the moment but they could surpass their older counterparts, according to findings in Fidelity’s Millionaire Outlook study. “The power of this […]
What Advisors Need To Know About Their Older Clients
{March 6th, 2015} by Lee Conrad
HOLLYWOOD, Fla. — Roughly one-third (34%) of the $53 trillion in U.S. household wealth is held by a home headed by someone who 65 older. And that percentage is doing nothing but increasing as America’s average age climbs, says Marcia Larson, director of annuity product and business development at CUNA Mutual Group. Larson spoke at […]
Jobs Report: US Insurance Industry Adds 7,300 Jobs in February
{March 6th, 2015} by Jeff Jeffrey, Washington Bureau manager: jeff.jeffrey@ambest.com
WASHINGTON – The U.S. insurance industry added 7,300 jobs in February, according to figures released March 6 by the Bureau of Labor Statistics. The seasonally adjusted 0.29% increase continued the strong growth the industry has seen over the past year. But it was down significantly from the job growth the industry saw the month before. […]
Why Dave Ramsey and Suze Orman are wrong about life insurance in retirement
{March 6th, 2015} by Tom Martin
Dave Ramsey, Suze Orman and scores of other financial pundits in the media scorn the idea of having life insurance in retirement. Their rationale seems to make sense on the surface: Life insurance is designed to replace your earnings when you die. Once you retire (and have no earnings) you are living off your investments. […]
Financial Advisors Haven’t Bridged The Gender Wage Gap
{March 5th, 2015} by Cyril Tuohy, cyril.tuohy@innfeedback.com
The worst-paying job for women in the U.S. is that of financial advisor. Let’s just repeat that and let it sink in: The worst-paying job for women in the U.S. is that of financial advisor. Before heading for the exits to wage another skirmish in the gender wars, perhaps we should qualify that statement. The […]
Panel Proposes Rules For Unclaimed Insurance Policies
{March 5th, 2015} by Arthur D. Postal
WASHINGTON – Insurance companies will be allowed to keep funds in unclaimed insurance policies and annuities for three years, under uniform rules being drafted by an advisory group. However, they will be required to use the Social Security Death Master File (DMF) or a similar database. The uniform rules were adopted by the Committee to […]
Transamerica offers legacy variable annuity clients a buyout
{March 5th, 2015} by Darla Mercado
Transamerica Life Insurance Co. recently unveiled a new variable annuity buyout program, offering a slice of its client base a lump sum payout in exchange for surrendering an existing VA contract. The insurer announced the rollout of its Alternative Lump Sum Offer 1.2 in a late January filing with the Securities and Exchange Commission, that […]
Decision on MetLife’s SIFI Unlikely this Year
{March 5th, 2015} by Arthur D. Postal, arthur.postal@innfeedback.com
WASHINGTON – A court decision on MetLife’s designation as a systemically important financial institution (SIFI) won’t come this year and may be late 2016, according to a Tuesday court filing. A court hearing on the MetLife challenge to its designation is unlikely to occur before October or November, according to a timeline in a motion […]
Google Officially Enters Auto Insurance Space With Expansion to Come
{March 5th, 2015} by Michael Buck, senior associate editor, BestWeek: Michael.Buck@ambest.com
MOUNTAIN VIEW, Calif. – Google Inc. has launched its car insurance comparison service in the United States, a much anticipated move that has been discussed in advance by industry executives and analysts. “This represents the newest addition to a suite of Google Compare products designed to help people make confident, more informed financial decisions,” the […]
Advisors fail to understand why women invest
{March 5th, 2015} by Marlene Y. Satter
Women have some very specific goals in mind when they invest, but advisors not only fail to understand what they need, they fall short on communication. So says a Pershing report that found nearly 30 percent of the women it asked less than happy with their financial advisors. Asked what could be improved, the women […]
JPMorgan joins Goldman as indexed annuities boom lures banks
{March 5th, 2015} by Ben Eisen
(Bloomberg) — Sales of indexed annuities surged 23 percent last year, prompting banks including JPMorgan Chase & Co. to expand into the booming structured-product market. Symetra Financial Corp. began marketing annuities whose returns are derived from JPMorgan’s ETF Efficiente 5 Index on Tuesday, according to Diana McSweeney, a Symetra spokeswoman. The index, which targets a […]
Most Gen X & Y consumers need more life insurance, but few will buy
{March 4th, 2015} by LIMRA
A LIMRA study finds majority of Gen X and Y consumers believe they need more life insurance. At the same time, less than 20 percent say they are very likely to buy life insurance. Insurance executives will gather at the 2015 Life Insurance Conference on April 13 – 15, in Arlington, Virginia to discuss ways […]
Index Universal Life Insurance Quotes Added to Nationwide Rates Finder Online
{March 4th, 2015} by PRWeb
San Francisco, CA (PRWEB) March 03, 2015 The death benefits that some adults seek out in a regular life insurance policy might not pay out enough funds to cover all expenses. The Quotes Pros company has now added index universal life insurance quotes from providers specializing in long-term coverage at http://quotespros.com/life-insurance.html. The cash value of […]
Executive Shuffle At Morgan Stanley
{March 4th, 2015} by Andrew Welsch
Morgan Stanley shook up the ranks of its wealth management executives following the announced departure of Doug Ketterer, head of strategy and client management, according to an internal memo. Greg Fleming, president of Morgan Stanley Wealth Management, announced Ketterer’s leaving after 25 years with the firm. Ketterer had held his most recent post for just […]
3 reasons why we don’t sell as much life insurance as we should
{March 4th, 2015} by Herbert K. Daroff
A generation ago, clients had no residual value from their retirement plans. Life insurance was needed to provide a financial legacy. Today, the largest asset in many people’s estates is the value of their retirement savings. That’s greater, in most cases than the value of their home. Click HERE to read…
Thrivent Reports 9.3% Gain In 2014 Net Income
{March 4th, 2015} by Paul Gores, Milwaukee Journal Sentinel
Net income, assets, revenue, surplus and life insurance in force all grew in 2014 for Thrivent Financial for Lutherans, adding up to what its chief executive called “an outstanding year.” Thrivent, which is based in Minneapolis but has a large presence in Appleton, is a fraternal organization that sells insurance and other financial products to […]
15 Facts About Women’s Risky Retirement Outlook
{March 4th, 2015} by PR Newswire Association LLC
PR Newswire Association LLC LOS ANGELES, March 3, 2015 /PRNewswire/ — In recognition of International Women’s Day and its focus on women’s social, political and economic advancement, nonprofit Transamerica center for Retirement Studies® (TCRS) has released a new study, http://www.transamericacenter.org/retirement-research/women-and-retirement, based on findings from its 15th Annual Transamerica Retirement Survey of workers including 2,172 women […]
Advising on guaranteed living benefits
{March 4th, 2015} by Ed McCarthy
Guaranteed living benefits remain popular with indexed annuity and variable annuity (VA) buyers. According to LIMRA Secure Retirement Institute, the guaranteed living benefits election rate in the third quarter of 2014 was 69 percent with indexed annuities and 76 percent for VAs (when available with the contracts). I recently spoke with Matt Hoesly, an advisor […]
Changing channels: What’s next in life insurance distribution?
{March 4th, 2015} by Ed McCarthy
After spending several hours online researching the amount and type of life insurance that fits her needs, the prospective buyer is ready to shop. She signs into Amazon.com’s life insurance site, answers a few questions and uploads the last six months’ data from her fitness monitor, which tracks multiple health indicators. A cloud-based underwriting algorithm […]
A Closer Look at Berkshire Hathaway’s Insurance Operations
{March 4th, 2015} by Carrier Management Special Report
Carrier Management Special Report Warren Buffett’s insurance beginnings and predictions; breaking out the insurance and reinsurance results; the growth and expectations for Berkshire Hathaway Specialty Insurance; singling out CEOs; repeating past remarks; the $3 billion premium and more. This is an edited version of the full special report on Berkshire Hathaway’s results with charts on […]
IUL Moves Into Era Of Volatility Control
{March 3rd, 2015} by Cyril Tuohy, cyril.tuohy@innfeedback.com
Mark Peterson, senior vice president with American International Group (AIG) Life Brokerage, has noticed a change in how advisors use indexed universal life (IUL) policies. Advisors used IULs primarily as a way to supplement retirement income. More recently, advisors have used the policies as a way to control volatility in retirement portfolios, he said. “If […]
Voya Financial Announces Secondary Common Stock Offering by ING Group
{March 3rd, 2015} by Voya
ING Group Expected to Exit its 19% Stake in Voya Financial NEW YORK, March 3, 2015 /PRNewswire/ — Voya Financial, Inc. (NYSE: VOYA) announced today that ING Group has entered into an agreement with a syndicate of underwriters to sell Voya Financial common stock in an underwritten public offering. Voya Financial will not be issuing […]
Only 20% Of Gen X And Y Likely To Buy Life Insurance
{March 3rd, 2015} by LIMRA
WINDSOR, Conn., March 2, 2015—A LIMRA study finds majority of Gen X and Y consumers believe they need more life insurance. At the same time, less than 20 percent said they are very likely to buy life insurance. Insurance executives will gather at the 2015 Life Insurance Conference on April 13 – 15, in Arlington, […]
Nationwide Creates Child-Safety Council
{March 3rd, 2015} by Mark Williams, The Columbus Dispatch, Ohio
Feb. 26–Nationwide is following up on its controversial “dead-kid” advertisement from the Super Bowl, today announcing plans to form a child-safety council aimed at reducing the number of deaths among children from preventable injuries. The Make Safe Happen Advisory Council will develop new ways to communicate how parents and other caregivers can make their homes […]
NAIFA Partnership Aims To Help Advisors Serve Growing Hispanic Market
{March 3rd, 2015} by N/A
FALLS CHURCH, Va. – A new partnership between NAIFA and the California-based Glenn Llopis Group (GLG) will give NAIFA members access to cutting-edge tools and resources to help them reach the largest growing minority in the U.S.: the Hispanic community. NAIFA and GLG announced the partnership today, along with the range of products and services […]
MetLife outlook is raised to positive by S&P
{March 3rd, 2015} by Noah Buhayar
(Bloomberg) — MetLife Inc., the largest U.S. life insurer, had its outlook raised to positive from stable by Standard & Poor’s as the company’s ability to meet dividends and other obligations improved. “The company’s operating performance has improved during the past few years, supported by its strategy of geographic diversification,” S&P said Friday in a […]
This is where the most likely annuity buyers live
{March 3rd, 2015} by Daniel Williams, Mary Shaub
There are more than 2.7 million households in the U.S. primed for an annuity purchase. So says a recent study from IAP Analytics, which also measured where these households were located. The takeaway: If you sell annuities, get thee to California, Texas, Florida or New York. See below for our full breakdown of where the […]
People Want Lifetime Income But Don’t Know Annuities
{March 3rd, 2015} by Linda Koco, linda.koco@innfeedback.com
The annuity puzzle continues. Although 84 percent of Americans consider it important to have a guaranteed monthly paycheck in retirement, only 14 percent have purchased an annuity that will ensure lifetime income. This is according to the TIAA-CREF 2015 Lifetime Income Survey released this month. In addition, although 46 percent of Americans say they are […]
Annuities Gain Traction In DB Retirement Plans
{March 3rd, 2015} by Cyril Tuohy, cyril.tuohy@innfeedback.com
More than one-fifth of companies that sponsor a defined benefit (DB) retirement plan say they are considering buying annuities to fund a portion of their obligations to the plan participants. That’s according to a survey by the global retirement and health benefits consulting company Aon Hewitt. The survey also found that 22 percent of companies […]
LIMRA: Internal And External Wholesalers Both Bring Unique Value
{March 3rd, 2015} by LIMRA
WINDSOR, Conn., Feb. 26, 2015—New LIMRA research has revealed that internal and external product wholesalers provide distinct value to financial advisors, depending on the issue at hand. The LIMRA report, The Whole Team: The Importance of the Sales Desk in the Distribution Model, offers new insights into advisors’ views of wholesaling strategies across manufacturers and […]
Allianz Life reports 36 percent profit growth for 2014
{March 3rd, 2015} by Neal St. Anthony, Star Tribune
Allianz Life Insurance of North America said operating profit rose 36 percent to a record $876 million in 2014, thanks to increased demand for retirement income products and good expense management. Total premiums, which includes new sales and recurring premiums, rose 62 percent to $15.7 billion. Walter White, CEO of the Golden Valley-based company, said […]
Allianz Life Reports Strong Financial Results For 2014
{March 3rd, 2015} by Business Wire
Premium, Operating Profit Growth Driven by Demand for Guaranteed Retirement Income MINNEAPOLIS–(BUSINESS WIRE)– Minneapolis-based Allianz Life Insurance Company of North America (Allianz Life®) today reported operating profit of $876 million for its 2014 financial year, an increase of 36% from $646 million in 2013. The strong result was driven by underlying profitable business coupled with […]
Here’s why cash value life insurance is a superior product
{March 2nd, 2015} by Russell E. Towers, J.D., CLU, ChFC
Whether your client has estate planning needs, business protection needs, or supplementary retirement needs, cash value life insurance offers great competitive advantages versus alternative financial assets. These advantages fall into three major categories: 1) Tax advantages 2) Financial and actuarial advantages and 3) Legal and contractual advantages. These inherent advantages make cash value life insurance […]
Why ‘Future Focus’ Will Attract Younger Customers
{March 2nd, 2015} by Linda Koco, linda.koco@innfeedback.com
CHAMPIONSGATE, Fla. – What should life and annuity advisors and companies do in order to become more successful in reaching the younger generation of customers? Cam Marston’s suggestion is to “sell the emotional paycheck.” By that, he said he means the industry needs to approach younger adults — Generation X and Generation Y — by […]
Closing the sale: an app for the iPad
{March 2nd, 2015} by Warren S. Hersch, whersch@SummitProNets.com
If you’re in the market for a turnkey mobile app that can help you sell more cash value life insurance, a recently launched product might just fit the bill: the Voya Life Journey mobile selling system. Debuted by Voya Financial (formerly ING U.S.) and designed in its first iteration for the Apple iPad, the tablet […]
Ex-AIG Chief Benmosche Dead at 70, Remembered as One of the Most Inspirational Leaders in Corporate America
{March 2nd, 2015} by David Pilla, international editor, BestWeek: David.Pilla@ambest.com
NEW YORK – Robert H. Benmosche, former president and chief executive officer of American International Group Inc. and a former CEO of MetLife Inc., died Feb. 27 after a struggle with cancer. Benmosche, 70, who had undergone treatment for lung cancer since 2010, died on the morning of Feb. 27 at NYU Langone Medical Center, […]
A.M. Best Affirms Ratings of American International Group, Inc.’s Domestic Life/Health Subsidiaries
{March 2nd, 2015} by Best's News Service
Oldwick – A.M. Best has affirmed the financial strength rating (FSR) of A (Excellent) and the issuer credit ratings (ICR) of “a+” of American International Group, Inc.’s (AIG) (New York, NY) [NYSE: AIG] four domestic life/health companies. AIG’s U.S. life, annuity and health operations are collectively referred to as AIG Life & Retirement Group (AIGL&R). […]
Forfeited life insurance benefits pegged at $112 billion
{March 2nd, 2015} by Warren S. Hersch, whersch@SummitProNets.com
Americans ages 65 and older forfeit $112 billion in benefits annually by lapsing or surrendering their life insurance policies, according to new research unveiled at the Life Insurance Settlement Association’s (LISA) Fifth Annual Institutional Investor Life Settlement Conference. John Welcom, founder and chief executive officer of Welcome Funds, and Darwin Bayston, president and chief executive […]
Genworth Shares Fall After Disclosing ‘Material Weakness’
{March 2nd, 2015} by Associated Press
NEW YORK (AP) — Shares of insurer Genworth Financial Inc. fell Monday after the company disclosed an issue with its accounting. The company said it failed to notice a $44 million after-tax calculation error due to a “material weakness” in how it checks its accounting. Genworth said in a filing with the U.S. Securities and […]
Life settlements: eye on multi-billion business
{March 2nd, 2015} by Warren S. Hersch, whersch@SummitProNets.com
Policyholders annually sell about $3 billion annually through life settlements. This market is expected to show continued growth through 2014, according to new research from Conning and retirement expert and analyst William Scott Page. As shown in the infographic on the following page– Click HERE to read…
School uses web-cast technology to help students enter the insurance industry
{March 2nd, 2015} by S. Vagus
Web-cast technology will be used to help students learn about the insurance industry and prepare them for licensing exams. The Cyber Insurance School, an organization that offers educational resources concerning the insurance sector, has begun using web-cast technology to offer real-time resources to students and insurance professionals. Using this technology could be a boon for […]
The 7 biggest announcements from life and health insurers this week: LifeHealthPro
{March 2nd, 2015} by Lynette Gil
Paradigm shift news roundup: Petersen International, Royal Neighbors of America, National Council on Aging, MyMedicareMatters.org, Brokers’ Service Marketing Group, Lincoln Financial, The Standard. Click HERE to View