I expect that the demand for fixed annuities will continue.
February 13, 2023 by Sheryl J. Moore
I always love it when Steve Morelli from InsuranceNewsNet gives me the rundown on insurance companies’ earnings calls: Click HERE to view Brighthouse sees record annuity year, while life insurance lags
In this piece, we get some intel on Brighthouse Financial.
The company CEO, Eric T. Steigerwalt, goes on the record as saying, “The company [Brighthouse] does not expect the demand for fixed deferred annuities to remain as strong this year.”
FWIW- I don’t agree with him.
I mean, according to Wink, Inc.‘s AnnuitySpecs tool, I can buy a three-year multi-year guaranteed annuity, and get an average rate of 4.23% in return.
But, according to Bankrate.com, the average rate for a three-year CD is only 1.16%.
As a result, I expect that the demand for fixed annuities will continue.
Another interesting tidbit in this story? Steigerwalt says that Brighthouse will be launching a new life insurance product in 2023.
While I do not see that they have filed anything with regulators just yet, I look forward to reviewing the companion product to the company’s flagship SmartCare indexed life.
Will they pull a Pru, and file a structured life product? Time will tell. -sjm