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March 31, 2010, Featured Articles, Company/Trade Group News, Advisors/Planners/Reps , Annuities

ING Offers a Simpler, Cheaper Variable Annuity

By Kerry Pechter   Wed, Mar 31, 2010

The contract costs 2.25% a year, including 100 bps for the income rider, 75 bps for the M&E risk fee, and 50 bps for fund management, says Bill Lowe, president of ING Financial Solutions.

During the variable annuity “arms race,” ING was a full-fledged nuclear power. Just two years ago, sales of its LifePay Plus product, with its lavish 7% roll-up, were running over $1 billion a month.

Then the financial crisis hit, ending the arms race almost overnight. ING de-risked its product and pulled in its horns. VA sales in 2009, at $6.7 billion, were down almost 40% from $10.87 billion in 2007.

Now the Dutch-owned firm has undergone a reorganization, combining its annuity and rollover businesses into ING Financial Solutions, and it has revealed its first new variable annuity product design since the crisis.

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