Prudential Shares Plunge After Moody’s Downgrade

Prudential Financial Inc., the second-biggest U.S. life insurer, led decliners in the Standard and Poor’s 500 Index after a downgrade by Moody’s Investors Service on costs tied to retirement products. Prudential fell $6.16, or 25 percent, to $18.76 at 4:15 p.m. in New York Stock Exchange composite trading, the most since the company went public in 2001. The insurer has plunged by more than 70 percent in the past 12 months. Life insurers, which often
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CNBC and Annuities

I know it has been awhile since we have posted, sorry. The market has been a mess, but as you may have read, we knew that for awhile. We called the temporary bottom and were right, but we did not post that it was going to go lower. However, this latest rally is a bear market rally, so don’t get sucked into long-term buying. Anyhow, we were watching CNBC on Friday when we got all
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After Downgrades, Which Annuities Are Safe?

If you have an annuity and are relying on it to provide for your retirement, then you may be feeling a little tense these days. Case in point: Standard & Poor's Ratings Services recently downgraded Hartford Financial Services Group's (HIG) credit rating. That's bad news for the number-one issuer of variable annuities offered through banks (as of 2007, according to the Insurance Information Institute): It means the company has to boost its cash reserves at
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State Farm Suspends Sales of Phoenix's Life Insurance, Annuities

State Farm Mutual Automobile Insurance Co. has told Phoenix Cos. that it will suspend sales of Phoenix's life insurance and variable annuity products because of downgrades by rating agencies to Phoenix's life insurance subsidiaries, spokespeople with both companies confirmed. Separately, Phoenix said it will delay filing its annual report on Form 10-K with the U.S. Securities and Exchange Commission because it needs more time to finalize its fourth-quarter and year-end 2008 net losses after correcting
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How Well Do You Know... Fixed Annuities?

Back before 2008's cruel lessons about the stock market, many individual investors saw little reason to bone up on boring subjects like fixed-income investments and annuities. And what was less attention-grabbing than the combination of those two topics, the fixed annuity? Nowadays, boring is better to many investors burned in stock mutual funds. Indeed, sales of fixed annuities soared 79% in the fourth quarter, according to consulting firm Limra International. In a recent quiz, we
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A.M. Best Special Report: Life Insurers Hunker Down as Market Turmoil Continues

2008 was among the worst in memory for life insurers’ operating performance—the key drivers being substantial realized and unrealized losses on investment portfolios, higher costs of capital and a declining revenue base. These trends clearly are continuing and could deepen well into 2009 and beyond. A.M. Best Co.’s recently issued special report, “Life/Annuity Review & Preview 2009: U.S. Life Insurers Hunker Down As Market Turmoil Continues,” expresses the rating agency’s current perspective on the industry.
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Pennsylvania's Top Two Youth Volunteers Selected in 14th Annual ... - PR-Inside.com (Pressemitteilung)

Pennsylvania's Top Two Youth Volunteers Selected in 14th Annual ... PR-Inside.com (Pressemitteilung), Austria - Feb 10, 2009 Prudential's businesses offer a variety of products and services, including life insurance, annuities , retirement-related services, mutual funds, ...
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While losses related to variable annuity products continue to take their toll on life insurance companies, they also were largely responsible for the poor fourth quarter performance by Philadelphia-based health insurer Cigna Corp., which has major
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CIGNA Reports Fourth Quarter and Full Year 2008 Results (Business Wire via Yahoo! Finance)

PHILADELPHIA----CIGNA Corporation : Net income for full year 2008 was $1.05 per share1, which included a loss of $2.54 per share1, due to the results from the Guaranteed Minimum Income Benefits business2 and results from the Guaranteed Minimum Death Benefits business also known as Variable Annuity Death Benefits .
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Business Wire (press release) Pennsylvania's Top Two Youth Volunteers Selected in
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Arizona residents claim fraud on EquiTrust annuity

Two Arizona residents have filed a class action lawsuit against an Iowa insurance agency, claiming the company engaged in fraudulent business and marketing practices regarding its sales of indexed annuities. The complaint, filed Jan. 12, claims EquiTrust Life Insurance Co. sold an annuities package that matured after the policyholder’s 105th birthday, thereby protecting the firm from risk, while damaging the financial security of the policyholder... Phoenix Business: Arizona residents claim fraud on EquiTrust annuity
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Forecast for Life Insurance Industry Challenging, LOMA Resource Survey Finds

With the economy in crisis, the 2009 forecast for the life insurance industry is challenging, according to executives surveyed by LOMA's Resource magazine... According to participants: In 2009, life insurance sales will hold steady, premium growth will be modest, but profits will decrease. Stock market volatility and the implosion of venerable financial institutions in 2008 have made consumers wary; consequently, variable products will be vulnerable as consumers move to more fixed products with guarantees. On
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