A Marvel of Financial Engineering
Like a tough cut of beef that becomes fit for a king if you cook it for a long time at a low temperature, this new fixed indexed annuity...
Annuities
New index options on Allianz Life indexed variable annuity offer high three-year caps
The three-year crediting rate limits are 75% and 80%, respectively, according to a May 4 product rate sheet on the Allianz Index Advantage product. The current rates expire June...
Look Homeward, Seeker of Liquidity
During a market crisis, a reverse mortgage home equity line of credit (ReLOC) can be a lifeline of ready cash for homeowners ages 62 and older. Don Graves of...
Fed easing clobbers fixed annuities
But sales of registered index-linked annuities (RILAs, aka 'structured variable annuities') posted a record high. RILAs offer more upside potential but less downside protection than fixed indexed annuities.
The ‘Fed Put’ Hurts Annuities—and Retirees
Low rates encourage excessive risk-taking. But the Fed keeps accommodating market sell-offs, which sets up a new round of boom and bust. Retirees (and the annuity issuers who serve...
Another Tough Decade for Annuities?
“With zero rates, I get a ‘shrinking iceberg’ feeling,” said Tim Paris, president of Ruark Consulting. He tracks annuity contract owner behavior and sees danger for life insurers at...
For annuities, 2019 was great. 2020 is TBD
Sales of annuities were stellar in calendar 2019--except in 4Q, as WinkIntel and Secure Retirement Institute report. With interest rates ultra-low and investor anxiety high, 2020 sales could go...
How Annuity Owners Behave in a Storm
A new report from actuaries at Ruark Consulting considers how factors like 'moneyness,' crediting rates, adverse selection, and the heightened vulnerability of seniors to COVID-19 might affect the way...
Observation Posts
Expert opinions on the crisis from Rob Arnott, David Babbel, A.M. Best, Zvi Bodie, Bill Borton, Francois Gadenne, Stan Haithcock, Per Linnemann, Sandy Mackenzie, Sheryl Moore, Steve Slifer, Eugene...
Shocks loom for U.S. life insurers, annuity issuers: A.M. Best
The ratings agency identified three big headwinds facing the life/annuity industry, but also identified some strengths.
IPO Signals Strategic Shift at Jackson National
Jackson's UK parent, Prudential plc, seeks an equity capital infusion--to fuel its diversified growth strategy and to mollify mega-shareholder Dan Loeb.
Turn 401(k)s into Bond Ladders
Franklin Templeton SVP Drew Carrington says his firm's Defined Maturity Funds, which work like bond ladders, could provide retirement income for 401(k) participants, and could be paired with qualified...
Bonuses enhance yield in Allianz Life’s new indexed annuity
Low interest rates send players in different niches of the retirement business in different directions toward different solutions for different types of customers. Here's how the leading FIA issuer...
At These Rates, Why Bother to Save?
Negative real interest rates have become a disincentive to personal savings, especially among lower-income Americans who will rely heavily on Social Security and Medicaid anyway, this team of economists...
Project LIMA Aims to Solve the Annuity Puzzle
Milliman, the actuarial consulting firm, envisions putting a multi-premium deferred income annuity inside a 401(k) managed account as a way to turn tax-deferred savings into lifetime income. It seeks...
Lifetime income withdrawals from FIAs up 39%: Ruark
'Lifetime income commencement increases sharply when policies are in the money, that is, when the benefit base exceeds the account value,' writes Tim Paris, CEO of Ruark Consulting.
NAIC approves revised “best interest” rule for annuities
The revisions clarify that all recommendations by agents and insurers must be in the best interest of the consumer.
Mike Bloomberg’s Retirement Security Plans
Bloomberg favors a public-option national workplace savings program, modeled on the federal Thrift Savings Plan. Its government match would be paid for with 'a reduction in the tax break...
Annuity sales reach 12-year high in 2019
Total fixed sales in 2019 were $139.8 billion, up 5% from 2018. That broke the previous record of $133.5 billion despite a weak fourth quarter when sales dropped 18%...
Brighthouse, Athene announce FIA innovations
Brighthouse Financial will be issuing its first fixed indexed annuity (FIA), which has a six-year term. Athene announced the availability of two new custom indices on its existing FIAs.
