Competitors In Line To Profit From Ohio National Dropping Annuities
September 8, 2018 by Cyril Tuohy
Several competitors stand to gain from Ohio National’s sudden decision to leave the annuity and retirement plans markets, one analyst said Thursday.
The Cincinnati-based company will stop accepting all annuity applications and applications for 401(k) and 403(b) retirement plans beginning Sept. 15.
“While we are no longer selling new annuities or retirement plans, we will continue to support all contracts in force through their maturity,” said Angela Meehan, vice president of corporate marketing. “That includes making all payments and providing ongoing customer service and support.”
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Ohio National distributes primarily through the bank and broker-dealer channels and competitors that stand to benefit the most from the pullback are other insurers with common distributor relationships in those channels, said Sheryl J. Moore, president and CEO of Moore Market Intelligence and Wink Inc., publisher of market tracker Wink’s Sales & Market Report.
“I would think that companies such as Great American, AIG and Allianz would most certainly be interested in this development,” Moore said. “These companies will likely absorb the sales that Ohio National leaves on the table.”