American Equity FIA sales drop; reinsurer investor drops out
November 15, 2022 by Steven A. Morelli
American Equity Investment’s CEO said the company chose “pricing discipline” rather than chase market share in explaining the carrier’s drop in fixed index annuity sales in what was a hot quarter for the products.
“We chose pricing discipline over chasing the market as interest rates fluctuated,” said Anant Bhalla during the company’s third quarter earnings call on Tuesday. “We continue to see competitors raise product rates with cost of money potentially well in excess of 4%, thereby already pricing in a sustained level of higher interest rates in the future.”
Wink’s Note: Anant Bhalla contends that American Equity is still on track with its AEL 2.0 strategy. While he was caught off-guard with some commentary during the company’s earnings call, he stands fast that the company is on target with its plans.
He also revealed that the company intends to launch a structured annuity, once they get a new admin system in place.
Did you know that Eagle Life Insurance Company was formed with the intent to offer securities products? When 151A was at it’s height, and it was looking like indexed annuities would be regulated as securities, the company filed a registered indexed annuity. This was the first company to make such a move in the power grab attempt of the U.S. Securities and Exchange Commission. -sjm