Life Insurers as LEGO Monsters

Michael Gordon, CEO of Axonic Insurance, part of Axonic Capital, sees the future of the life/annuity/asset-management business as an increasingly a la carte affair, where the components of the business are like interchangeable Lego blocks and where platform providers help clients snap them together.
Anecotal Evidence

Here Come the Suits

Close observers of the 'Bermuda Triangle' strategy weren't surprised when class action lawsuits were filed against AT&T, State Street Global Advisors and Lockheed Market for their choice of Athene Annuity and Life as the annuity provider in a pension risk transfer deal. RIJ articles about Athene's use of the strategy were cited in two of the lawsuits.
Guest column

A Potential Alternative to the Rollover IRA

Our guest columnist, an actuary and certified financial planner, suggests new vehicles, which he calls Qualified Retirement Income Providers (QRIPs), to help 401(k) plan participants convert part of their plan balances to safe retirement income.

News in brief

Researchers probe tie between auto-enrollment and household debt in the UK; Prudential closes $12.5 bn reinsurance deal with Somerset Re; Strong fourth quarter for pension risk transfers: LIMRA; PE-backed insurers control almost 10% of life/annuity assets: AM Best; NewRetirement raises $20 million in venture capital.

A ‘Nesting Doll’ of an In-Plan Annuity

ARS, State Street Global Advisors, Nationwide, Athene, Transamerica and Global Trust Company have brought to market the State Street GTC Retirement Income Builder, a target date fund with a fixed deferred group indexed annuity inside it. It will be offered to 401(k) plan sponsors as a qualified default investment alternative, or QDIA. At age 65, plan participants invested in the fund become eligible for a lifetime income of up to 6% of their final TDF balance.

Auto workers’ DC plan will link to Hueler Income Solutions

Union workers at General Motors and Stellantis (Chrysler et alia) in Detroit will be able to link directly from their 401(k) platform or employee benefits portal to the Hueler annuity website, where they can solicit bids on immediate or deferred income annuities, or deferred fixed-rate annuities, from up to six life insurers.


February 2024

NAIC Urged to Limit ‘Bermuda Triangle’ Strategy

'The ability of insurers to significantly lower the total asset requirement for long-duration blocks of business that rely heavily on asset returns appears to be one of the drivers of the significant increase in...
July 2023

Of Athene, Pension Risk Transfers, and Fiduciaries

The ERISA Advisory Council recently heard comments on changing the criteria that fiduciaries use when vetting annuity providers in pension risk transfer deals. Athene's vice chairman defended his company's practices.