Publicly held annuity issuers could be handicapped in the future by lingering liabilities, and should have foreseen the impact of IRA money flowing into VAs starting in 2002, says one analyst. Others are more upbeat.
'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.
'Insurers can't remain wedded to product sales, which are becoming commoditized in a future that trends toward financial advice,' says industry veteran Michelle Richter, who just launched Fiduciary Insurance Services, LLC.
MassMutual is the latest target of the St. Louis plaintiff's attorney Jerry Schlichter, who has won eight-figure judgments and settlements in a series of "excessive fee" cases against high-profile sponsors and providers of jumbo ERISA retirement plans.
“Shifts in market share this year have been massive,” writes Morningstar VA analyst Frank O’Connor in his third quarter and year-to-date sales report, issued yesterday.
An act of Congress in 2001 allowed the Railroad Retirement fund to start investing in equities, and the fund has encountered and overcome some significant risks associated with equity management since then.
The Signature 7 offers a monthly sum crediting strategy and a spread of 1.7% on the Barclays U.S. Dynamic Balance Index. Any return above 1.7% will be credited to the policy on the anniversary in this index.
Allianz Life prevailed as the leading issuer of indexed annuities with a 12.91% market share, while Security Benefit Life and American Equity maintained their positions as the second and third-ranked companies in the market.
"Managers that start engaging institutions early, even when the latter are not ready to allocate to alternatives, will stand a better chance of winning mandates when an institution is ready to invest," says a new report from Cerulli Associates.
"The most common qualification of the economic forecaster is not in knowing, but in not knowing that he does not know. His greatest advantage is that all predictions, right or wrong, are soon forgotten"--John Kenneth Galbraith, Economics in Perspective.