Annuities and Heirs
{August 6th, 2019} by Brian Jarosinski
When asked what their most valuable assets are, most clients say their homes or their careers. While homes and careers are certainly on the short list, after reflection, clients usually agree that their most valuable assets are, in fact, their families, genuine friendships, and time. As individuals and couples work hard to generate wealth for […]
Individual Life Has Assumption-Change Headaches: Prudential
{August 6th, 2019} by Allison Bell
Prudential Financial Inc. is now assuming that some older U.S. individual life insurance policies are going to perform differently than it had originally expected, and that change in assumptions took a $153 million bite out of U.S. individual life results in the second quarter. Executives from Prudential told securities analysts Thursday that concerns about the problems […]
Variable Annuity Expense Levels Might Be Converging
{August 5th, 2019} by Allison Bell
Big U.S. variable annuity issuers might be using more similar expense structures for popular living benefits riders. Hedgeness Inc., a Chicago-based financial services data analytics company, has included data supporting that possibility in a new batch of variable annuity living benefits rider rating data. Hedgeness included 13 issuers in its latest rating table, up from […]
State Regulators Push Annuity Sales Standards Project One Step Forward
{August 5th, 2019} by Allison Bell
The Annuity Suitability Working Group today decided to pass its proposed update of the National Association of Insurance Commissioners’ annuity suitability model regulation on to other teams at the NAIC. The working group plans to post a new draft revision of the Suitability in Annuity Transactions Model Regulation (Number 275) in September, seek public comments, then push […]
Cetera, product sponsors launch tool as firms embrace annuity demos
{August 5th, 2019} by Tobias Salinger
As the industry works toward demystifying annuities, Cetera Financial Group and major product sponsors are launching a retirement planning tool aimed at addressing longevity. Over the past two years, the independent broker-dealer network, Allianz and Capital Group developed SetIncome, a simulation program comparing annuities to asset management models, according to Cetera President Adam Antoniades. Cetera plans to […]
Vanguard veers away from annuities: News Scan
{August 5th, 2019} by Bernadette Berdychowski Paola Peralta
Vanguard is cutting insurance-based options as it transitions its Vanguard Variable Annuity to Transamerica, along with its client service and account administration, the firm said. It will also discontinue its online platform, Vanguard Annuity Access. “Annuity administration is not central to our long-term product and service plans,” says Karin Risi, managing director of Vanguard’s Retail […]
Annuity sales surge as new pathways open for advisors
{August 5th, 2019} by Tobias Salinger
Annuity sales keep rising higher — and everyone from issuers to, potentially, the U.S. Congress is making it easier for financial advisors and their clients to buy them. Click HERE to read the full story via Financial Planning. …………………………………………………………………………………. FIA sales of $17.7 billion — a 25% jump — constitute the “strongest first […]
Athene Enters Structured Annuity Market Amid Fast-Rising Sales
{August 5th, 2019} by Cyril Tuohy
Athene, based in West Des Moines, Iowa, becomes the ninth issuer in a market dominated by AXA Equitable, Brighthouse Financial and Allianz, according to Wink’s Sales & Market Report. Click HERE to read the full story via Life Annuity Specialist.
Jackson National Unveils Details of ‘First True’ MYGA Product
{August 5th, 2019} by Warren S. Hersch
Sales of multi-year guaranteed annuities totaled $14.6 billion in the first quarter, up a marked 79.8% compared to the same three-month period in 2018, according to Wink’s Sales & Market Report. In 2018, sales of the products rose 34% to $45.7 billion. Click HERE to read the full story via Life Annuity Specialist.
The Secrets of the Best-Selling U.S. Indexed Annuities Revealed
{August 5th, 2019} by Cyril Tuohy
What does it take to get there? We spoke to Sheryl Moore, CEO of Wink and indexed annuity maven, to find out the secrets of the best sellers. Click HERE to view the full story via Life Annuity Specialist.
California Threatens NAIC With N.Y. Annuity Standard
{August 4th, 2019} by John Hilton
California Insurance Commissioner Ricardo Lara wants “as close to a fiduciary standard as possible” to govern annuity sales, his office says. The California Department of Insurance weighed in this week with comments on a controversial annuity sales model law being debated by a National Association of Insurance Commissioners’ working group. If the NAIC doesn’t come […]
Indexed Life: Illustrating at Nearly 14%
{August 4th, 2019} by Sheryl J. Moore
Do I have your attention? I know it feels like I am beating a dead horse with this topic, but continued interaction with salespeople using indexed life in their sales tells me that further education on indexed life illustrations is not only needed, but additional disclosure should be required. You know, one of the most viral […]
Waddell & Reed plans local layoffs
{August 3rd, 2019} by Brian Kaberline
Waddell & Reed Financial Inc. has filed notice of its intent to lay off 158 employees. On Tuesday, the Overland Park-based financial services company (NYSE: WDR) disclosed the planned cut in a WARN (Worker Adjustment and Retraining Notification) Act filing. A company spokesman said most of the employees affected by the cuts are located in Overland […]
Scott Boyd Joins Principal As Head Of Sales In Retirement And Income Solutions
{August 1st, 2019} by Principal Financial Group
Principal Financial Group® today announced that Scott Boyd has joined the company as Head of Sales for Workplace Savings and Retirement Solutions in the Retirement and Income Solutions division, effective August 12, 2019. In his new role, Boyd assumes responsibility for leading the U.S. sales force to serve all customer segments and product solutions. He will report […]
Annuities in 401(k)s Won’t Solve the Retirement Crisis. Here’s Why.
{August 1st, 2019} by Mary Romano
Proposed U.S. legislation would make it easier for employers to offer annuities in 401(k) retirement plans that provide retirees fixed payments for as long as they live. Does it make investing sense? First things first: The bill, known as the Secure Act, passed in the House of Representatives in May and is now awaiting a […]
What the Heck Is a ‘Financial Instrument’: Annuity Model Commenter
{August 1st, 2019} by Allison Bell
Teams of state insurance regulators will be working on annuity sales standards and annuity disclosure projects in New York this weekend, at the National Association of Insurance Commissioners’ summer meeting. The Center for Economic Justice — an Austin, Texas-based organization that seeks to speak up for consumers’ interests in NAIC proceedings — says it continues to have concerns about […]
Kuvare US Holdings to Acquire Lincoln Benefit Life
{August 1st, 2019} by Kuvare
CHICAGO–(BUSINESS WIRE)–Kuvare US Holdings, Inc. (“Kuvare”) announced today that its affiliate, Guaranty Income Life Insurance Company, has entered into a definitive agreement to acquire Lincoln Benefit Life Company and its affiliates (“LBL”), all subsidiaries of RL LP (the “Transaction”). The Transaction, which Kuvare expects to close by year-end, is subject only to customary closing conditions, […]
Prudential profit misses mark on weaker individual life, annuities units
{August 1st, 2019} by Bharath Manjesh
(Reuters) – U.S. life insurer Prudential Financial Inc (PRU.N) fell short of analyst estimates for quarterly profit on Wednesday, hurt by weakness in its U.S. individual life insurance and annuities businesses. Prudential’s U.S. individual life insurance segment reported an adjusted operating loss of $135 million, compared to operating income of $43 million in the year-ago […]
Opinion: Annuities need to be a 401(k) default
{August 1st, 2019} by Alicia M. Munnell
My colleagues and I are beginning to think seriously about embedding annuities in 401(k) plans. Now, 401(k) plans generally offer lump sums, which means that retirees have to decide how much to withdraw each year. They face the risk of either spending too quickly and outliving their resources or spending too conservatively and consuming too […]
Flood of RIA sales pushes industry toward a buyer’s market
{August 1st, 2019} by Jeff Benjamin
The record-setting pace of consolidation among advisory firms is only going to become more competitive, said David DeVoe, managing director at the investment bank DeVoe & Co. Click HERE to read the full article via InvestmentNews.
Regulators Debate Need For ‘Prudence’ In Annuity Sales Standard
{August 1st, 2019} by John Hilton
State insurance regulators aim to tentatively finalize a standard for annuity sales by the National Association of Insurance Commissioners’ Fall Meeting in December. Debate over whether to add “prudence” to the model law dominated another 90-minute conference call Monday by the Annuity Suitability Working Group. Chairwoman Jillian Froment warned members to expect a “heavy call […]
Parents’ Health Care Spending Can Be a Risk to Clients’ Retirement
{August 1st, 2019} by Fran O’Brien
With the number of Americans age 85 and older projected to more than double by 2040 — 14.6 million from 6.4 million in 2016 — it comes as no surprise to financial advisors that more of their clients in retirement or nearing retirement are involved in caring for aging parents. Perhaps not surprising either is that the […]
Advisors’ Advice: Are Annuities Worth It?
{August 1st, 2019} by Bernice Napach
As advisor clients age and retire, the need for guaranteed income grows. Social Security can provide at most a few thousand dollars per retiree per month, but beyond that there are no guarantees. If an advisor perceives a gap between the income that a client needs in retirement and what that client will collect from […]
Many Self-Employed Americans Aren’t Saving Enough for Retirement: Transamerica
{August 1st, 2019} by Jeff Berman
Many freelancers and other self-employed Americans plan to continue working even after they retire — and many of them will have to because they’re not saving nearly enough to live on while retired, according to the findings of a new study recently released by the nonprofit Transamerica Center for Retirement Studies (TCRS). “The whole idea of retirement […]
Investors Pour Money Into Bond Funds at a Record Pace
{August 1st, 2019} by Jessica Menton
Investors are piling into safe-haven bonds at a record pace, a sign that caution remains despite stocks pushing toward records. Click HERE to read the full article via The Wall Street Journal.
State Fiduciary Rules on a ‘Collision Course’ With Reg BI: Lawyers
{August 1st, 2019} by Melanie Waddell
States contemplating their own fiduciary rules “are on a collision course with where the federal law [under the SEC’s Reg BI] is going, which is going to set up some very difficult debates and probably some litigation,” Brad Campbell, former head of the Labor Department’s Employee Benefits Security Administration, who’s now a partner at Drinker […]
Fed Cuts Interest Rate, First Reduction Since Financial Crisis
{August 1st, 2019} by AM Best
WASHINGTON – The Federal Reserve has moved to cut interest rates on investments by 0.25% — reversing a four-year trend in which the Fed had consistently moved to increase rates. It was the first such reduction since the financial crisis in 2008. The policymaking Federal Open Market Committee, by an 8-2 vote, reduced its benchmark […]
AM Best Places Credit Ratings of United Life Insurance Company Under Review With Negative Implications
{August 1st, 2019} by AM Best
Oldwick – AM Best has placed under review with negative implications the Financial Strength Rating of A- (Excellent) and the Long-Term Issuer Credit Rating of “a-” of United Life Insurance Company (ULIC) (Cedar Rapids, IA). The Credit Rating (rating) actions follow the recent announcement that ULIC’s affiliate, Guaranty Income Life Insurance Company (GILIC), has entered into a […]
AM Best Places Credit Ratings of Guaranty Income Life Insurance Company Under Review With Developing Implications
{August 1st, 2019} by AM Best
Oldwick – AM Best has placed under review with developing implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” of Guaranty Income Life Insurance Company (GILIC) (Cedar Rapids, IA). The Credit Rating (rating) actions follow the recent announcement that GILIC has entered into a definitive agreement to acquire Lincoln Benefit […]
Americans are Confronted by a Looming Retirement Income Shortfall
{August 1st, 2019} by The Alliance for Lifetime Income
The Alliance for Lifetime Income’s landmark survey reveals significant anxieties about retirement income, as well as barriers to retirement preparedness Washington, D.C., July 31, 2019 – Eight in ten non-retired Americans (80%) express anxiety that their savings may not provide enough to live on in retirement, according to a landmark survey of 3,119 U.S. adults by the […]
CFP Board’s effort to strengthen enforcement could sharpen teeth of fiduciary duty
{August 1st, 2019} by Mark Schoeff Jr.
The CFP Board recently delayed enforcement of the elevated advice requirement for its designation until next June. Click HERE to read the full article via InvestmentNews.
