Volatility is the most treacherous risk for VA issuers, and complex hedging strategies are the answer. That’s the view from the Equity-Based Insurance Guarantees conference in Chicago this week.
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.)
“We urge you to work together to reach a bipartisan agreement to avoid the fiscal cliff and take concrete steps to restore the United States’ long-term fiscal footing,” the CEOs of the largest U.S. financial services companies wrote to the president and Congress last month.
Obama’s chief economic adviser is Gene Sperling, head of the National Economic Council. Unlike the typical academic economist, Sperling concentrates on practical things that might lift the economy, writes Shiller, the well-known Yale economist.
Jackson National decided to save its remaining $1 billion in capacity for VAs with living benefits--it sold $15.3 billion worth of VAs in the first nine months of 2012--for new sales. Exchanges into the firm's Elite Access variable annuity will still be accepted.
The TOPS Protected Balanced, Moderate Growth and Growth ETF Portfolios use a Milliman-designed equity futures strategy to buffer the fund assets from volatility.
Farewell, Orange Lion! ING U.S.’s future brand name hasn’t been disclosed, but the trademarked tagline will be “America’s Retirement Company,” according to the SEC registration statement.
Representatives at Aviva, Apollo, Guggenheim and Harbinger declined to comment on the deal, which is not completed and may still collapse.
"Although reducing the fiscal tightening scheduled to occur next year would boost output and employment in the short run, doing so without imposing a comparable amount of additional tightening in future years would reduce the nation’s output and income in the longer run"--Congressional Budget Office, November 2012.