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May 19, 2010, Cover Stories, Annuities

From an IVA, New Blood for Insurers

By Kerry Pechter   Tue, May 18, 2010

Life insurers, advisors and consumers should embrace his immediate variable annuity (IVA) with a refund option and a death benefit, says Achaean Financial CEO Lorry Stensrud.

At a presentation a few years ago, Peng Chen, president of Ibbotson Associates, projected a slide that plotted the positions of several retirement income products on a risk/return diagram.

In the northwest corner of the chart, as lonely as Pluto on a black map of the solar system, stood the immediate variable annuity (IVA). All other factors held equal, the IVA's reward-to-risk ratio was highest. Yet no one ever buys it.

Lorry Stensrud wants to change that. Or rather, he still wants to change it. Just a few years ago, as an executive at Lincoln Financial Group, he championed Lincoln's fascinating but complex i4Life deferred variable income annuity.

Now, as CEO of Chicago-based Achaean Financial, he's back with a new, patent-applied-for customizable IVA chassis that he calls IncomePlus+. He wants to license it to life insurers, who he hopes will use it as the “Intel Inside” for a new generation of guaranteed income products.

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