This roundup of investment flow reports from Beacon Research, Strategic Insight, Morningstar and the Insured Retirement Institute suggests that investors are looking for shelter from an economic sandstorm in which visibility has declined to zero.
A month after Ford’s pension buyout offer, GM is offering some salaried retirees a choice of a lump sum buyout or lifetime income from Prudential. Both automakers took advantage of a change in discount rates to reduce obligations.
Sales of income annuities may soon breach the $10 billion-a-year barrier. We talked to the Numbers 2 through 5 SPIA sellers in the U.S.: MetLife, MassMutual, Pacific Life (whose symbol is the humpback whale), and Nationwide.
By establishing a standard for valuing in-force income annuities, an industry task force hopes to reduce fear of "annuicide" and stimulate SPIA sales. "We're taking a thorn out of the lion's paw," says Gary Baker of Cannex. (Links to pdfs of task force documents included.)
“Standalone products focused solely on income guarantees, life insurance or chronic care can be expensive or go unused,” Phoenix said in a release.
Differing signals from ratings agencies are feeding speculation about GM's huge pension risk transfer to Prudential Financial, and about the longevity and other risks associated with the unprecedented deal.
The new portfolios, along with the four original portfolios, are now available to all new and most existing variable annuity customers, regardless of the election of certain optional benefits.
Plans with less than 4% default contribution rates saw a 14% opt-out rate, vs. a 10% opt-out rate for plans with greater than 3% default contribution rates during the year ending March 31, 2012, the New York Life study showed.
Last week’s feature article in RIJ, "Prudential Files '2.0' Version of Highest Daily VA Rider," mistakenly described the fee structure as a new development. That fee structure, used in the “O” share of the contract, was created in 2011 for use by a specific broker dealer.
The ever-bearish Martin Hutchinson expects equities to represent a good value again... when Ben Bernanke is gone and after the Dow Jones Industrial Average settles to about 5,000.
During the transition to a bigger, better server, we experienced a service interruption over the weekend. It's just growing pains.