"We may be at an inflection point, with the first carriers beginning to tweak products in small ways for competitive advantage despite the ongoing low interest rate environment," writes John McCarthy, Product Manager, Annuity Solutions, at Morningstar Inc.
At the LIMRA-Society of Actuaries Retirement Industry Conference in Baltimore last week, Scott Stolz from Raymond James, Greg Jaeck from Edward Jones and Jarrod Fisher from Simplicity Financial Distributors delivered frank opinions about annuities and annuity issuers.
Many factors are driving the increase in indexed annuity sales: More manufacturers, better products, more distributors, competitive commissions, aging boomers, and relaxed regulation. But does the bubble contain the seeds of its own deflation?
Israel has found that even a mandatory defined contribution system can’t resolve all of the behavioral, economic, or administrative issues that prevent low-income and minority workers from saving for retirement. (Photo: Mahane Yehuda market in Jerusalem.)
"Notwithstanding eight figure earnings per year during that period, CEI and Cornwell learned that their net worth, while substantial, was the equivalent of only approximately one year’s net income," according to the 2009 complaint.
Overall, annuity sales were $52.6 billion in the fourth quarter, down 8% from the previous year. For the year, annuity sales dropped 8%, tallying $219.4 billion. Variable annuity sales totaled $147.4 billion in 2012, down 7% from 2011.
AIG reported significantly improved profitability in the first nine months of 2012, with net income of $7.6 billion relative to a modest net loss in the prior year period. Life & Retirement’s pre-tax income rose 22% in the same period, year over year.
“By instituting the referral incentive, we are hoping to debunk common myths about retirement plans and help Americans at businesses of all sizes effectively save for their retirement,” the Online 401(k) said in a release.
Brief or late-breaking items from Nationwide, MetLife, Northwestern Mutual, and Jefferson National.
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