Wednesday, December 14, 2005
Why Big Insurers Are Staying Away From This Year's Hot Investment Product
One of the insurance industry's hottest products is coming under fire -- from insurance companies.
Sales of equity-indexed annuities have soared, hauling in $23 billion in 2004 and an additional $21 billion in the first nine months of this year, according to annuity tracker Advantage Compendium. These products aim to capture part of the stock market's gain, while guaranteeing that investors will at least break even or earn a modest return. That mix of upside potential and downside protection has proven especially popular with seniors.
Why Big Insurers Are Staying Away From This Year's Hot Investment Product
Source: Wall Street Journal (subscription required)
Sales of equity-indexed annuities have soared, hauling in $23 billion in 2004 and an additional $21 billion in the first nine months of this year, according to annuity tracker Advantage Compendium. These products aim to capture part of the stock market's gain, while guaranteeing that investors will at least break even or earn a modest return. That mix of upside potential and downside protection has proven especially popular with seniors.
Why Big Insurers Are Staying Away From This Year's Hot Investment Product
Source: Wall Street Journal (subscription required)
Permalink posted by armandn @ 7:24 AM 
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