Honorable Mention
Brief or late-breaking items from Nationwide, the Center for Retirement Research at Boston College, Prudential Financial, Charles Schwab and Milliman.
Vanguard pulls S&P500 fund from its own 401(k)
'The current problem with the Index 500 fund is that over 25% of the fund is in technology stocks,' a former Vanguard employee told the local press.
Fed raises benchmark rate to range of 1.75% – 2.0%
The last time the rate topped 2% was in late summer 2008, when the economy was contracting and the Fed was cutting rates toward zero.
Athene issues new fixed indexed annuity
The new contract, called Agility, offers an annual deferral bonus of 175% of the increase in the account value, and income that steps up by the percentage earned each...
Honorable Mention
A.M. Best sees private equity firms dominating life/annuity M&A; Merrill Lynch penalized for deceiving customers on RMBS sales; MetLife and Brighthouse may release up to $116 million to owners...
Securian creates ‘open MEP’
'Open multiple employer plans' are defined contribution plans that many unrelated small firms can join. Legislation to ease their formation is pending in Congress.
Variable annuities see $18 billion net outflow in 1Q2018
The recent increase in market interest rates, plus the lapse of the DoL Fiduciary Rule, have raised expectations that VA sales will rise, however, according to Morningstar.
Life/annuity industry news
Athene in $19 billion reinsurance deal with Voya; Allianz Life survey finds interest in protection products; TIAA rebrands its banking units; Global Atlantic in $9 billion reinsurance deal.
Total annuity sales to improve through 2019: LIMRA SRI
With interest rates expected to rise over the next two years, LIMRA SRI forecasts sales of fixed rate deferred annuities to increase by 15-20% in 2018 and by 20-25%...
In fund sales, Vanguard leads but BlackRock’s gaining
Vanguard had $12.3 bn in inflows in April. But BlackRock’s iShares eclipsed that figure with about $17 bn. Vanguard’s year-to-date growth continues to slow year over year.
‘Collective’ versus ‘individual’ pension accrual debated in Holland
In the Netherlands, the government and the labor unions are struggling to create a new model for retirement savings that satisfies employers and workers.
Weak growth expected for life/annuity industry: A.M. Best
Net realized capital losses of $5.7 bn, partially offset by a $1.9 bn reduction in federal and foreign taxes, helped cause the decline in net income, according to A.M....
Indexed annuity sales up more than 10% in 1Q2018: Wink
AXA US was the top-seller of structured annuities, with a market share of 51.5%, but the top-selling contract in that category was the Brighthouse Life Shield Level Select 6-Year...
Variable annuity deferral bonuses are working: Ruark
GLWB withdrawal frequencies have increased consistently at normal retirement age and above, with over half of withdrawals now at or near the maximum benefit amount, according to a study...
Annuity wholesalers should be consultants for advisors: Global Atlantic
Many advisors prefer 'a multi-product annuity platform' that allows for 'customizable retirement planning,' the survey by the multi-product annuity provider showed.
US workers are willing to pay for better retirement benefits
But fewer than one in four would pay for tools and services that help them live healthier lifestyles or help improve their finances, a Willis Towers Watson survey shows.
Auto-escalation begins in the UK, with ‘close monitoring’
In the UK, the minimum contribution to auto-enrolled defined contribution plans will reach 8% in April 2019, including a 3% mandatory employer contribution.
How Canadians regard lifetime income: CANNEX
Fewer than half of Canadians surveyed were confident in their ability to maintain their standard of living until age 90, while 58% would expect a decline in living standards...
Lincoln Financial joins the index-linked variable annuity (ILVA) party
'Lincoln Level Advantage' comes with four index options, two term lengths and four levels of protection. It also offers variable subaccounts and a living benefit.
‘OnePension’ lets employers put DB back in DC
'We now have a solution that adds a guaranteed component to the retirement plan without being burdensome,' said Pete Welsh of OneAmerica, the provider of OnePension.
