Iowa insurance man Curtis Cloke thinks he has solved the "annuity puzzle" by building ladders of deferred income annuities for his clients. Now he and his partners are scaling up his "Thrive" system and taking it national.
Rejecting a takeover bid by Athene and MassMutual, fixed index annuity issuer American Equity will partner with Brookfield Asset Management. The deal releases up to $350m in capital for American Equity, and makes it a 'Bermuda Triangle' player. Photo: AEL headquarters in Des Moines.
'Many of the decisions presented here are beyond the skills of most pre-retirees and retirees,' writes the author, a research scholar at the Stanford Center on Longevity. 'They’re going to need help.'
Bond mavens, check this out. A new SEC report describes how most of the $54-trillion dollar U.S. credit market survived last spring's financial crisis. It covers securitized 'leveraged loans,' which provide high-octane fuel for fixed indexed annuity issuers.
The financial world has left the “Harry Markowitz” era where Modern Portfolio Theory and Monte Carlo projections reigned, says Philipp Hensler, CEO of U.S. distribution for DWS Investments.
“If you buy a policy, you the policyholder get some of the upside, and guarantee you always get your premium back.” From a company’s perspective, “that’s poison,” Warren Buffett was quoted as saying.
Longevity insurance has been tough to sell, partly because of conflicts with Required Minimum Distribution rules. But Symetra says it has overcome that hurdle with its enhanced Freedom Income Annuity.