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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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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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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Cigna will cut 1100 jobs and consolidate - Philadelphia Inquirer

Cigna will cut 1100 jobs and consolidate Philadelphia Inquirer, PA - 8 hours ago But what walloped Cigna were losses from two programs - its variable- annuity death-benefit program and its guaranteed-minimum death-benefit program. ...
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New York Life Insurance Company today announced that total sales of its income annuities have exceeded $1 billion for the first time, reaching more than $1.2 billion at year-end 2008. The
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Led by New York Life Products, Fixed Annuity Sales Rise 54% in Third Quarter

Buttressed by favorable interest rates and sought by investors looking for shelter from falling equity prices, U.S. fixed annuity sales set a new quarterly record. Led by New York Life Products, Fixed Annuity Sales Rise 54% in Third Quarter Source: Financial-Planning
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Despite the continual upswing of fixed annuity products, a LIMRA International study of consumers between 50 and 75 years old with household incomes of at least 50,000 dollars in
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New NAVA Message Testing Service to Ensure Compliance with Annuity Sales Automation Standards

NAVA, Inc., the Association for Insured Retirement Solutions, today announced a new service to help insurers, annuity distributors and technology solutions providers ensure that their electronic data messages are compliant with NAVA’s Straight-through Processing (STP) Standards Initiative. STP is an industry-backed initiative establishing an automated standardized process that streamlines the sale of annuities. New NAVA Message Testing Service to Ensure Compliance with Annuity Sales Automation Standards Source: Business Wire
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Aberdeen Asset Management Inc. Expands US Distribution Team - Earthtimes (press release)

Aberdeen Asset Management Inc. Expands US Distribution Team Earthtimes (press release), UK - Sep 8, 2008 He began his career at Merrill Lynch where he held roles as a financial advisor and district annuity specialist. Headquartered in metropolitan Philadelphia ...
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Bank sales of fixed annuities are soaring, as a result of a favorable interest rate environment, the stormy equity markets, and new product features, according to insurance and banking executives. Market's
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Life Insurance & Estate Planning - What Wealthy Families Want to Know

An estimated $41 trillion in US assets will change hands by 2052.1 Families, especially wealthy families, have specialized estate planning needs but can be confused by complex estate planning strategies full of legalese so Pacific Life Insurance Company and Pacific Life & Annuity Company now offer a kit of “plain English” materials to show how life insurance can stabilize and strengthen estate planning techniques. Life Insurance & Estate Planning - What Wealthy Families Want to
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The Role of Income Riders on Fixed Annuities

Insurance companies began using the term “income planning” several years ago to promote new and innovative riders on annuities. In only a few years, clients started making decisions about their advisor relationship largely on the advisor’s ability or willingness to plan for income. In the Fidelity Advisor 2006 Survey of Investors at Retirement, seven of 10 baby boomers indicated they wanted to discuss income planning. Less than four of 10, however, had an income discussion
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