A $100 Billion Market for SPIAs?

Income annuities aren't a good product fit for every insurance company. But for New York Life, a mutual company with tons of reserves and a big book of life insurance, they make perfect sense.

Thanks-givings (Not Misgivings) about Social Security

This year I'm claiming the Social Security benefits that I've earned on my own work record. I'm old enough now to be truly thankful for Social Security, whose future is precisely as certain, as fair, and as bountiful as we decide it will be.

The Alt-Asset Teams that Reinvent Annuity Companies

'Insurance Solutions' groups use private assets to boost the returns of life/annuity company investment portfolios. RIJ talks with Todd Fonner of Investcorp Insurance Solutions about this trend.

One Life Insurer’s Pivot to Private Assets

American Equity Investment Life’s ‘AEL 2.0’ strategy is designed to help it thrive even in a low yield environment. Allocating up to 40% of its money to ‘private assets’ is key to the fixed annuity specialist's plan.
Featured

Solving the SPIA compensation puzzle

By re-valuing each client's annuity contract each day, New York Life enables advisors to charge a fee based on the (shrinking) cost of replacing the income stream.

A Month of SPIAs

Starting with today’s issue, we’ll devote four weeks of cover stories and features to single premium immediate annuities. Millions of mass=affluent Americans will need them.
News

New MetLife GMIB Offers 6%

In 2010, MetLife sold about $18.3 billion worth of variable annuities, of which about two-thirds have the GMIB option.

Financial services M&A to accelerate in 2011: PwC US

Divestitures should drive a significant portion of deal activity in 2011, PwC said. Large banks and insurance companies that need to bolster capital levels are divesting non-core operations and margin-dilutive subsidiaries.

The Bucket

Brief or late-breaking items from DST Systems, Senior Market Sales, Conning Research, BNY Mellon, Mutual of Omaha, Mesirow Financial, ASPPA, Lockton Retirement Services, Huntington Investment Co., Allianz Global Investors and Putnam.