Monday, October 31, 2005

 

MetLife Reports Gains From Deal

The acquisition of Travelers Life & Annuity helped MetLife Inc. overcome the effects of hurricane-related losses in the third quarter.

MetLife, New York City, is reporting $742 million in net income on $12 billion in revenue for the latest quarter, up form $695 million in net income on $9.9 billion in revenue for the third quarter of 2004.

MetLife Reports Gains From Deal
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 1:16 PM
 

Assisted Living Costs Increase 15% from 2004, According to MetLife Mature Market Institute Study

Assisted living costs in the U.S. increased 15% in the past year, according to the 2005 MetLife Market Survey of Assisted Living Costs. The average monthly base price rose from $2,524 in 2004 to $2,905 this year, or $34,860 annually. The highest cost was reported in Boston at $4,629 per month, while the lowest was Jackson, Mississippi at $1,642. The study was conducted for the MetLife Mature Market Institute® by LifePlans, Inc.

Assisted Living Costs Increase 15% from 2004, According to MetLife Mature Market Institute Study
Source: Yahoo! Finance

Permalink posted by armandn @ 1:13 PM
 

Northwestern Mutual to Pay Policyowners $4.27 Billion in Dividends; Historic Increase of $360 Million for 2006

Northwestern Mutual has announced a projected $360 million increase to its dividend payout for 2006, the largest single increase in company history. The company's overall dividend payout to policyowners for 2006, approved today by its Board of Trustees, is expected to be $4.27 billion. The company will also continue to pay a dividend interest rate of 7.5% on unborrowed funds on most permanent life insurance policies for the second straight year.

Northwestern Mutual to Pay Policyowners $4.27 Billion in Dividends; Historic Increase of $360 Million for 2006
Source: Business Wire

Permalink posted by armandn @ 1:12 PM
 

John Hancock Long Term Care Insurance Expands Service Program for LTCI Policyholders with CareScout Partnership

John Hancock Long Term Care Insurance has expanded its service program for policyholders through a strategic partnership with CareScout, the leading expert on quality care ratings for long term care service providers. With the new Advantage Provider Program, John Hancock policyholders and their families will have access to an expanded program with increases in discounts; quality ratings and reports on providers, and advisory services. The service program will continue to be offered at no cost to the policyholders.

John Hancock Long Term Care Insurance Expands Service Program for LTCI Policyholders with CareScout Partnership
Source: Yahoo Finance!

Permalink posted by armandn @ 1:10 PM
 

Annuities Under Fire: Are the Attacks Deserved?

Annuities-whether fixed, variable or equity indexed-have been the hot products sold by the life insurance industry for nearly two decades. Their sales far eclipse the sales of traditional life insurance products.

Annuities continue today to be the biggest selling life insurance product, despite hurricanes, downturns in the stock market and vast quantities of bad press about the product.

Pundits in the financial and popular press, regulators, and politicians all like to bad-mouth annuities-particularly variable annuities-but with special emphasis on the evils of deferred annuities in general. Although there is no "official" definition for a "deferred" annuity, the industry generally accepts the definition used for federal income tax purposes-i.e., a deferred annuity is one where annuity payments begin more than one year from the date of issue of the contract.

Annuities Under Fire: Are the Attacks Deserved?
Source: Insurance News Net

Permalink posted by armandn @ 1:06 PM

Friday, October 28, 2005

 

Boomers Need Financial Coaching

Keith Millner says financial advisors have to do more to push baby boomers to the next planning level.

Millner, a senior vice president at Nationwide Financial Services Inc., Columbus, Ohio, spoke here at the annual meeting of the National Association of Variable Annuities, Falls Church, Va.

About 25 financial advisor designations start with the letter “C,” but none of designations includes the word “coach, Millner said.

Boomers Need Financial Coaching
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 7:48 AM
 

Pointers On Using Annuities For Spendthrift Protection

When parents transfer assets to their children, the parents sometimes use "spendthrift protection" strategies to protect the transferred assets from the children's possible spendthrift tendencies, bad investment judgment, divorce settlements, judgment creditors or other misfortune.

Nonqualified annuities are sometimes used to meet a parent's objective to provide spendthrift protection for assets transferred to children.

Pointers On Using Annuities For Spendthrift Protection
Source: Insurance News Net

Permalink posted by armandn @ 7:47 AM
 

Phoenix To Shed Venture Business

The Phoenix Cos., in the midst of a turnaround effort, said Thursday it will shed nearly all of its venture capital business as it seeks to build a more stable stream of earnings and regain Wall Street's confidence.

Phoenix To Shed Venture Business
Source: Hartford Courant

Permalink posted by armandn @ 7:45 AM
 

Answer Financial Reports Jump in Consumers' Use of the Internet to Shop for Insurance Services

Eighty-three percent of respondents to a recent survey of online insurance shoppers reported they are more likely to buy insurance and other financial services through the Internet than they were just one year ago. Consumers also have embraced online banking with more than 70 percent of surveyed shoppers managing their bank accounts and paying bills online.

Answer Financial Reports Jump in Consumers' Use of the Internet to Shop for Insurance Services
Source: Yahoo! Finance

Permalink posted by armandn @ 7:43 AM
 

MetLife, Jefferson-Pilot top estimates

MetLife Inc. and Jefferson-Pilot reported better-than-expected third-quarter earnings late Thursday as the life insurance and annuity companies boosted sales.

MetLife, Jefferson-Pilot top estimates
Source: CBS Marketwatch

Permalink posted by armandn @ 7:41 AM

Thursday, October 27, 2005

 

EIA Advocate Calls for Stand Against NASD

The insurance industry should stand up to efforts by the National Association of Securities Dealers to regulate equity-indexed annuities.

Joan Boros, a partner at Jorden Burt L.L.P., Washington, delivered that message here at the annual meeting of the National Association of Variable Annuities, Falls Church, Va.

EIA Advocate Calls for Stand Against NASD
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 12:39 PM
 

Insurers Offer New Policies for the Wealthy

Insurance companies say providing coverage to the rich is a fast-growing business that is benefiting in part from a trend to build large houses filled with costly fixtures and specialized collections, such as jewels, antique guns and wine. Specialized insurers typically have higher coverage limits and cover more events -- often paying the entire cost of rebuilding a luxury home. And as individuals' net worths increase, so does their demand for excess liability coverage, which protects assets from personal-injury or property-damage lawsuits, above the liability limits set by home and auto policies.

Insurers Offer New Policies for the Wealthy
Source: Wall Street Journal Online (subscription required)

Permalink posted by armandn @ 12:38 PM
 

Pipeline and North American Company for Life and Health Sign Agreement to Electronically Distribute Forms and Product Information

iPipeline is pleased to announce North American has contracted with iPipeline to syndicate their life and annuity product forms and information directly onto their general agents' websites. Using iPipeline's content repository, North American now makes it quicker and easier for master general agents to offer their writing agents access to competitive rates, product information, underwriting guidelines and the forms necessary to write new business.

iPipeline and North American Company for Life and Health Sign Agreement to Electronically Distribute Forms and Product Information
Source: PR Newswire

Permalink posted by armandn @ 12:36 PM
 

Life Insurers Suffer Continuing Decline in Gross Investment Returns

Life insurers suffered a steep decline in gross investment returns over the last five years, led by falling interest rates as well as corporate defaults and rating agency downgrades in the early years of the period, according to a new study by Conning Research & Consulting, Inc.

Gross investment income returns for the period 2000 to 2004 dropped from 7.5% in 2000 to 5.9% in 2004. However, lower investment expenses somewhat cushioned the blow, improving each year during the study period.

Life Insurers Suffer Continuing Decline in Gross Investment Returns
Source: Insurance News Net

Permalink posted by armandn @ 12:34 PM
 

ING introduces ING Secure Index Family of Indexed Annuities

ING U.S. Retail Annuities Business Group, a unit of ING U.S. Financial Services, is introducing a new ING Secure Index family of index annuities providing an innovative mix of guarantees, flexibility and choice.

"We believe people are looking for ways to save with opportunities to grow their savings, and annuities can be an attractive alternative because of the combination of guarantees and benefits unique to annuities," said Harry N. Stout, president, ING U.S. Retail Annuities Group.

ING introduces ING Secure Index Family of Indexed Annuities
Source: Yahoo! Finance

Permalink posted by armandn @ 12:31 PM

Wednesday, October 26, 2005

 

VA Executives: Put The Investor First

The variable annuity industry should help workers prepare for retirement by changing the way it promotes variable annuities.

Charles Haldeman Jr. delivered that message here at the annual meeting of the National Association for Variable Annuities, Reston, Va.

VA Executives: Put The Investor First
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 10:09 AM
 

Mass Mutual Provides Life Insurance for Women with Breast Cancer

Massachusetts Mutual Life Insurance Company (MassMutual) continues to be a leader in providing life insurance coverage for breast cancer survivors, updating its underwriting guidelines continually to reflect the positive long-term survival benefits of early detection and new treatments such as the use of trastuzumab (Herceptin).

Mass Mutual Provides Life Insurance for Women with Breast Cancer
Source: PR Newswire

Permalink posted by armandn @ 10:07 AM
 

Columbus Life Insurance Company, Lafayette Life Insurance Company Announce Strategic Alliance; Independent Producers Will

Columbus Life Insurance Company (Columbus Life) and The Lafayette Life Insurance Company (Lafayette Life) announced a definitive co-marketing agreement to strengthen and broaden their distribution networks. This cross-selling agreement provides independent producers with access to more products and services and provides greater opportunities for producer recognition.

Columbus Life Insurance Company, Lafayette Life Insurance Company Announce Strategic Alliance
Source: Insurance News Net

Permalink posted by armandn @ 10:05 AM
 

Managing Boomers' Savings; This Generation Has Stowed Away $9 Trillion in Assets

The generation born between 1946 and 1964 has amassed some $9 trillion in private retirement assets. In contrast to the common perception that boomers have been a happy-go-lucky generation, preferring to spend than to save, a recent study by Smith Barney found that, as of 2002, the average 50-year-old American had saved 20 percent of after-tax income nearly twice the savings rate at that age of Americans born a few years earlier, during the war. Unlike their parents, who sheltered their nest eggs in company and government-backed pension plans that delivered guaranteed distributions, boomers have been socking away the majority of their retirement assets in self-funded 401K and other defined-contribution plans.

Managing Boomers' Savings; This Generation Has Stowed Away $9 Trillion in Assets
Source: Insurance News Net

Permalink posted by armandn @ 10:02 AM
 

Jackson National Life Surpasses $1 Billion in VA Sales for Third Consecutive Quarter

Jackson National Life Insurance Company® (JNL®) recorded more than $7.2 billion in total sales during the first nine months of 2005, a 17-percent increase from the same period a year ago, primarily as a result of increased variable annuity, fixed index annuity and institutional product sales. JNL's VA sales surpassed $1 billion for the third consecutive quarter, reflecting the popularity of the company's innovative unbundled product design and the strength of its distribution capabilities.

Jackson National Life Surpasses $1 Billion in VA Sales for Third Consecutive Quarter
Source: Yahoo! Finance

Permalink posted by armandn @ 10:00 AM

Tuesday, October 25, 2005

 

Insurer Web Sites Earn Low Marks

Many insurers are so clumsy in cyberspace that they are unable to respond to questions submitted through electronic mail.

Researchers at the Customer Respect Group, Ipswich, Mass., have published that assessment in their latest quarterly review of insurers’ Internet operations.

Insurer Web Sites Earn Low Marks
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 11:29 AM
 

Lucas Group Reports As Insurance Market Shifts, Job Opportunities Shift

Lucas Group, a leader in professional recruiting, reports career opportunities in the insurance industry are increasing in core product and business lines, as well as product management.

The industry as a whole has focused its attention away from niche products, which are considered riskier classes of business, and with the shift in focus comes a shift in employment opportunities.

"What we currently see in the industry is a shortage of qualified talent," said Scott Faurot, managing partner and insurance search consultant for Lucas Group, San Diego. "Companies have been reluctant to train entry-level staff on underwriting basics, claims and business development. Ten years ago, training was critical to the successes of these departments, but training programs were cut when budgets were slashed. Because they are difficult to find, the most valuable candidates are those with a well-trained, well-rounded knowledge of all core insurance products."

Lucas Group Reports As Insurance Market Shifts, Job Opportunities Shift
Source: Insurance News Net

Permalink posted by armandn @ 11:28 AM
 

For High Earners, FICA Taxes Increase in 2006

Highly-paid wage earners will see a moderate increase in the wage base on which Social Security taxes are due for 2006, according to CCH, a provider of tax and payroll information and software (hr.cch.com). The 2006 wage base of $94,200 is $4,200 higher than the 2005 amount, and the maximum additional Social Security tax that might be collected on someone earning above the 2005 wage base is $260.40. This is the largest increase since 2002 in both dollars and in percentage, and reflects the largest increase in national average wages since 2000.

For High Earners, FICA Taxes Increase in 2006
Source: Financial-Planning.com

Permalink posted by armandn @ 11:26 AM
 

Advisers search for ways to help low-income people

At many financial advisory firms, a low-income, or even middle-income, investor with a few thousand dollars in the bank, a little (gasp!) credit card debt and big dreams of attaining financial security would likely be shown the door.

In recent years, increasing demand for financial advice has forced many advisers to raise their investment minimums to allow them to focus on their richest, and therefore most profitable, clients.

Advisers search for ways to help low-income people
Source: Investment News (subscription required)

Permalink posted by armandn @ 11:22 AM
 

Genworth Financial Strengthens Financial Planning Unit Through Acquisition

Genworth Financial, Inc. announced today the addition of more than 500 registered representatives to its Genworth Financial Investment Services unit through a transaction with C.J.M. Planning Corp., a New Jersey-based firm. Terms of the deal were not disclosed.

"We are committed to growing our financial planning and fee-based business in a very focused and strategic way," said Pam Schutz, president of Retirement Income and Investments for Genworth. "While we continue to grow our network of independent financial professionals consistently through referrals, the addition of this group increases our representative base by 25 percent, to a total of more than 2,400, and significantly expands our reach."

Genworth Financial Strengthens Financial Planning Unit Through Acquisition
Source: Yahoo! Finance

Permalink posted by armandn @ 11:19 AM
 

Life Insurance Can Get Complicated For Seniors

The premiums on Sears retiree Cecil Bowles' $92,000 group universal life-insurance policy jumped 157 percent in July from $197 per quarter to $507 a quarter.

Bowles, who lives in the Montpelier area of Hanover County, is miffed because MetLife, the big New York insurance carrier, pocketed his premiums for 43 years and now it is raising rates so high he can no longer afford the policy.

If he drops it, his wife won't get the money he wanted her to have if he precedes her in death.

"I'm 74," he said. "I'm retired and I didn't plan for this."

Life Insurance Can Get Complicated For Seniors
Source: Insurance News Net

Permalink posted by armandn @ 11:16 AM

Monday, October 24, 2005

 

Insurer Consolidation Will Benefit Advisers

The expected consolidation of life insurers will benefit advisers, because doing business with several large companies instead of many smaller ones reduces administrative costs and product overload, insurance industry analysts said.

The recently announced merger of Jefferson-Pilot Corp. in Greensboro, N.C., and Lincoln Financial Group in Philadelphia could signal the start of a string of similar deals in the next six months, analysts said, as other insurers seek scale to compete.

Insurer Consolidation Will Benefit Advisers
Source: Investment News (subscription required)

Permalink posted by armandn @ 1:09 PM
 

ACLI, Members at Odds over NASD

While the American Council of Life Insurers is looking to make nice with NASD, some of its members are talking about suing the regulatory agency.

Both Gary Hughes, ACLI executive vice president, and a lawyer who represents insurance companies said some insurers have talked about suing Washington-based NASD if the Securities and Exchange Commission approves the organization's controversial variable annuity suitability rule. The proposal, if approved, would be one of only a few NASD rules that set regulatory standards for a specific product.

ACLI, members at odds over NASD
Source: Investment News (subscription required)

Permalink posted by armandn @ 1:07 PM
 

North American Life Insurance Activity Declines 2.8% in September

North American application activity for individually underwritten life insurance declined -2.8% in September, year-over-year, according to the MIB Life Index. This marks the Index's eighth consecutive year-over-year decline in the last nine months. Third quarter activity was off -3.2% versus same quarter 2004. Year-to-date (YTD) North American activity has held steady for the past two months at -- 3.3%. This is the fourth consecutive year third quarter activity has lagged that of the prior year's third quarter. Application volumes August/September 2005 demonstrated typical seasonal growth for this period, up +2.8%. It was the second consecutive month-over-month increase.

North American Life Insurance Activity Declines 2.8% in September
Source: PR Newswire

Permalink posted by armandn @ 1:01 PM
 

Principal CEO Wants Americans to Save

Americans aren't just spending everything they earn - they're dipping into savings to keep up with the Joneses.

That worries Barry Griswell.

"We have a national crisis around savings," said Griswell, whose newest job is to do something to cure that ill.
Griswell is mainly known in business circles as chairman and chief executive of Des Moines-based Principal Financial Group Inc. For the next 12 months, however, he also dons an additional task as president of the American Council of Life Insurers.

Heading that Washington-based trade group gives Griswell a national pulpit to talk about what the life insurance industry can do to encourage Americans to save more. Consumers need it for their retirement or other purposes, yet the federal government reported in August that the national savings rate was minus-7 percent.

Principal CEO Wants Americans to Save
Source: Insurance News Net

Permalink posted by armandn @ 12:59 PM
 

Online Customer Service: Insurance Industry Struggling to Keep Pace

In a report that analyzed 47 health care, life and health, and property & casualty insurer Web sites, the insurance industry slipped slightly in its Customer Respect Index (CRI), according to The Customer Respect Group, Inc., an Ipswich, Mass., research and consulting firm that focuses on how corporations treat their online customers. The findings, from its Fourth Quarter 2005 Online Customer Respect Study of Insurance firms, represent the fifth such study conducted on insurers.

Online Customer Service: Insurance Industry Struggling to Keep Pace
Source: Insurance Networking News

Permalink posted by armandn @ 12:57 PM

Friday, October 21, 2005

 

Advisors: Tax Life And Annuity Asset Growth

Tax breaks for annual investments in life insurance and annuities could be limited to $10,000 under a proposal for sweeping tax reform being advanced by a presidential advisory panel.

Members of the President’s Advisory Panel on Federal Tax Reform talked about the proposal at a hearing Tuesday, but their written report is not due until Nov. 1.

Advisors: Tax Life And Annuity Asset Growth
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 7:15 AM
 

Online Banks Offering Higher Savings Yield

Inspired by the success of ING Direct and other online financial institutions at attracting deposits, a growing number of traditional brick-and-mortar banks have started Internet-based operations of their own. The competition among them to pass along the benefits of rising short-term market rates is creating some of the best deals in years for consumers willing to conduct transactions over the Internet.

Online Banks Offering Higher Savings Yield
Source: Delaware Online

Permalink posted by armandn @ 7:13 AM
 

A Healthy Retirement - 401(k)s Aren't Enough: New National Survey Shows Lack of Planning for Health Care or Health Benefits in Retirement

Today at a Capitol Hill briefing, Aetna the Financial Planning Association(R) (FPA(R)) and Women's Policy, Inc. delivered a call to action about the importance of considering health and benefits needs in retirement, in response to findings from a new national survey of Americans ages 45 to 75. Of pre-retirees surveyed, nearly 20 percent have spent "no time" in the past year actively planning for retirement, more than 30 percent don't know what to anticipate for health care
needs, and nearly 40 percent have spent less than an hour in the past year planning for health benefits in retirement.


A Healthy Retirement - 401(k)s Aren't Enough: New National Survey Shows Lack of Planning for Health Care or Health Benefits in Retirement
Source: PRNewswire

Permalink posted by armandn @ 7:11 AM
 

Taking Aim At The Middle; New Conseco Insurance Leader Says Growth Will Be Found In Average Households

Four months into his job as president of Conseco Insurance Group, Michael Dubes is explaining his strategy to return the subsidiary to profitability. Then, ice cream enters the conversation.

Dairy Queen, he argued, continues to thrive despite an onslaught of competitors offering more expensive treats. The key to the franchise's success is that it has never wavered from its middle-income target audience, Dubes said. He is applying the same simple tactic to grow the group's portfolio of policyholders, while many competitors froth over wealthier prospects.

Why should we be one of many companies chasing the 600,000 people in the United States with a net worth over $ 10 million? Dubes asked. To me, it's about getting and keeping customers in the middle market.

Taking Aim At The Middle; New Conseco Insurance Leader Says Growth Will Be Found In Average Households
Source: Insurance News Net

Permalink posted by armandn @ 7:07 AM

Thursday, October 20, 2005

 

Carrier Adds Indexed Annuities for Banks and Agents

Jefferson Pilot Financial will be marketing a pair of new indexed annuity products through different channels.

Jefferson Pilot, a unit of Jefferson-Pilot Corp., Greensboro, N.C., will be selling the Jefferson Pilot OptiChoice indexed annuity through insurance agencies and the Jefferson Pilot Clear Point indexed annuity through banks.

Carrier Adds Indexed Annuities for Banks and Agents
Source: National Underwriter (subcription required)

Permalink posted by armandn @ 12:53 PM
 

Capital Gains Fuel Tax Code Debate

This year's capital gains payouts are expected to be the largest since the boom of the late 1990s, and while that's good news for the mutual fund industry and the 39 million U.S. households that invest in them, it's increasingly unclear whether legislation currently pending in Congress will provide any relief from what could be a shocker of a tax bill.

Capital Gains Fuel Tax Code Debate
Source: Financial-Planning

Permalink posted by armandn @ 12:51 PM
 

MetLife's Customer Service Response Center Recognized for World-Class Customer Service

MetLife, Inc. announced today that its Customer Response Center has earned the prestigious designation of "Certified Center of Excellence" by Purdue University's Center for Customer-Driven Quality in conjunction with BenchmarkPortal. Center of Excellence certification is based on a contact center's ability to exceed rigorously validated, objective performance metrics compared to its industry peer group. Only the top ten percent of contact centers that apply for certification have earned this designation.

MetLife's Customer Service Response Center Recognized for World-Class Customer Service
Source: Yahoo! Finance

Permalink posted by armandn @ 12:49 PM
 

Women Face Greater Economic Risk In Retirement Than Men

Americans for Secure Retirement (ASR) today released a report revealing that women are at greater risk than men to experience a decrease in living standards in retirement. The study recommends that policymakers enact policies to encourage women to plan for long-term economic stability by utilizing retirement vehicles like lifetime annuities, which provide a steady stream of income for life.

Women Face Greater Economic Risk In Retirement Than Men
Source: Insurance News Net

Permalink posted by armandn @ 12:47 PM

Wednesday, October 19, 2005

 

Affluent Americans Also Struggle to Pay Medical Bills

Many U.S. adults with annual household incomes over $75,000 say they are facing financial pain because of the rising cost of health care.

Researchers at the Employee Benefit Research Institute, Washington, have published figures supporting that conclusion in a report on a recent survey of 1,003 U.S. adults ages 21 and over.

Affluent Americans Also Struggle to Pay Medical Bills
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 8:39 AM
 

Key to Investing is How Much You Save, Not What You Pick

From detailed analysis and research, examining and tweaking data spanning 15 years, a major conclusion is drawn:

The more money you save, the more money you will have.

I am not trying to be flippant here. As obvious as this conclusion is, I don't believe it has registered yet on many workers who fret endlessly about making the "right" investment choices in their 401(k)s and other employer-sponsored retirement plans.

Key to investing is how much you save, not what you pick
Source: South Florida Sun-Sentinel

Permalink posted by armandn @ 8:36 AM
 

Monte Carlo Simulation: Smart Bet for Baby Boomers' Retirement Plans

The baby boom generation, those 77 million Americans born during the postwar period of 1946 to 1964, has witnessed the Dow Jones Industrial Average increase by a factor of 40 and has also enjoyed approximately 500% growth in home equity during their adult lives. But somehow, 25 million of the 77 million boomers currently have a net worth of less than $ 1,000 (excluding the value of their home equity). Boomers' financial situation, combined with rising life expectancies, means they will require high-quality retirement planning advice. Many of them will want that resource to be their tax advisor or a referral from their tax advisor.

Monte Carlo Simulation: Smart Bet for Baby Boomers' Retirement Plans
Source: Insurance News Net

Permalink posted by armandn @ 8:35 AM
 

Jefferson-Pilot Financial Introduces Annuity Products for Long-Term Planning Needs

Jefferson Pilot Financial, one of the nation's leading providers of universal and variable universal life insurance and fixed annuities, today announced the introduction of Jefferson Pilot OptiChoice and Jefferson Pilot Clear Point, two indexed annuity products designed to help consumers prepare for retirement or meet other long-term needs. Jefferson Pilot OptiChoice is available through insurance agencies, while Jefferson Pilot Clear Point is available exclusively through banks.

Jefferson-Pilot Financial Introduces Annuity Products for Long-Term Planning Needs
Source: Yahoo! Finance

Permalink posted by armandn @ 8:33 AM

Tuesday, October 18, 2005

 

MetLife Foundation Awards $225,000 to Alzheimer's Association for Hispanic Outreach Initiative

The Alzheimer's Association of America has announced a new initiative, funded by MetLife Foundation, to promote education and awareness about Alzheimer's disease to the Latino population. According to recent reports, U.S. Latinos develop symptoms of Alzheimer's earlier, on average, than white non-Latino people, and Hispanics are also among the fastest growing populations affected by the disease; by 2050, the number of Hispanics in the U.S. with Alzheimer's is expected to increase 600 percent, from the current 200,000 people to 1.3 million. The project will link chapters of the Alzheimer's Association with affiliates of the National Council of LaRaza (NCLR), the Washington, D.C. based advocacy group for the Hispanic community.

MetLife Foundation Awards $225,000 to Alzheimer's Association for Hispanic Outreach Initiative
Source: Yahoo! Finance

Permalink posted by armandn @ 11:36 AM
 

Fidelity Helps Advisers be Retirement Whizzes

Seeking to solidify its relationship with broker-dealer affiliated advisers, Fidelity Investments is launching an initiative this month to help registered representatives position themselves as retirement specialists.

In an adviser-focused campaign with the slogan, "Think retirement. Think Fidelity," the Boston-based mutual fund company is highlighting recent enhancements to get advisers to use its array of retirement-related products.

Fidelity Helps Advisers be Retirement Whizzes
Source: Investment News (subscription required)

Permalink posted by armandn @ 11:33 AM
 

'Plannerware' Parties Used to Pitch Annuities

A financial services company has developed home-based workshops akin to Tupperware parties to sell variable annuities and other financial products to prospective female clients.

In the first wave, female advisers of Minnesota Life Distributors, a unit of Securian Financial Group Inc. in St. Paul, Minn., are hearing the financial planning pitches from company representatives, with the goal of hosting similar "parties" for female clients.

'Plannerware' Parties Used to Pitch Annuities
Source: Investment News (subscription required)

Permalink posted by armandn @ 11:31 AM
 

ANALYSTS SAY LINCOLN/JEFFERSON-PILOT MERGER POINTS TO HARD TIMES FOR LIFE INSURERS

Lincoln National Corp.'s proposed $7.5 billion acquisition of Jefferson-Pilot Corp. is a combination driven by a tough environment for growing earnings -- low interest rates and higher capital requirements -- and the trend doesn't bode well for the life insurance sector, according to an equity analyst.

"We believe these companies combined out of weakness as growth has been stalled and the macro environment continues to weigh down their fundamentals," said John Nadel, a life insurance analyst with Fox-Pitt, Kelton.

ANALYSTS SAY LINCOLN/JEFFERSON-PILOT MERGER POINTS TO HARD TIMES FOR LIFE INSURERS
Source: Insurance News Net

Permalink posted by armandn @ 11:29 AM
 

Second Annual Lincoln Long Life Survey Finds Many Successfull Sixties More Focused on Planning Vacations than Managing Assets

The old adage, "Do as I say, not as I do," certainly hasn't lost its relevancy over time. According to the second annual Lincoln Long Life(SM) Survey released today, affluent 60-year-olds say they are well prepared for retirement, but their actions prove that they may not be as ready as they think. In fact, survey findings reveal that roughly half (46 percent) of "successful sixties" spend more time thinking about their next vacation than managing their financial assets to last a lifetime.

Second Annual Lincoln Long Life Survey Finds Many Successfull Sixties More Focused on Planning Vacations than Managing Assets
Source: Yahoo! Finance

Permalink posted by armandn @ 11:28 AM

Monday, October 17, 2005

 

NAIC OKs Guarantee Proposals

Members of the National Association of Insurance Commissioners today approved measures that will affect standards for variable annuities with performance guarantees, universal life policies with guarantees, and life insurance policies with small face amounts.

NAIC OKs Guarantee Proposals
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 1:12 PM
 

A New Twist on 401(k) Building; Coming in 2006: Accounts That Offer Tax Break At Withdrawal Time

A new retirement tax break coming next year will help some prosperous families and perhaps some young people with a long time to save.

The new break is the Roth 401(k) --- a cross between an individual retirement account and a 401(k).

Roth 401(k)s will offer no upfront tax break, but you will owe no income tax when you start taking the money out.

Roth IRAs, which have been around for years, are do-it-yourself projects. Roth 401(k)s will be offered and administered by employers, much like the 401(k)s many already offer.

This new kind of 401(k) certainly is an interesting proposition, if you can afford to save significant amounts and if your employer offers a Roth 401(k).

Source: Insurance News Net
A New Twist on 401(k) Building; Coming in 2006: Accounts That Offer Tax Break At Withdrawal Time

Permalink posted by armandn @ 1:10 PM
 

MetLife Introduces New Disability Insurance Solution for Small Businesses

MetLife today announced a new and enhanced disability insurance product for smaller employers that provides increased plan flexibility and employee benefit options. The new contract provides employers with fewer than 500 employees the enriched features and options that many larger employers currently utilize in their disability and absence management programs including return-to-work/stay-at-work strategies for their employees.

Source: Yahoo! Finance
MetLife Introduces New Disability Insurance Solution for Small Businesses

Permalink posted by armandn @ 1:08 PM
 

Sale or Merger? Glass Defends JP Deal

Though the terminology may seem academic in light of a deal that would move Greensboro's oldest publicly-traded company headquarters to Philadelphia, Jefferson-Pilot Corp. CEO Dennis Glass insisted this week that the deal with the

Sale or Merger? Glass Defends JP Deal
Source: Biz Journals

Permalink posted by armandn @ 12:58 PM

Friday, October 14, 2005

 

Are Mutual Funds on a Roll?

Mutual-fund investors often are criticized for steering their investment course with their eyes on the rearview mirror -- that is, past performance.

Lately, that backward view has been getting nicer and nicer.

Stock-fund performance looking back over three years -- a common time period for fund buyers to consider -- has gotten rosier as the bear market of 2000 to 2002 has receded into history.

Are Mutual Funds on a Roll?
Source: WSJ Online (subscription required)

Permalink posted by armandn @ 12:59 PM
 

Getting a read on finances

Need advice about how to handle your money? Read yourself rich.

Financial advisers say the first step to getting control of your finances is to get educated.

"People should read on their own - it's the best way to get savvy about money," said Stacy Francis, a certified financial planner at Francis Financial in Manhattan who has a required reading list for her clients.

She keeps a stash of books in her office, and hands them out.
Here are some of the must-reads she and other advisers recommend:

Getting a read on finances
Source: NY Daily News

Permalink posted by armandn @ 12:58 PM
 

Long-Term Care Group Examines Market Penetration and Potential

As the country's largest third party administrator of long term care insurance, Long Term Care Group (LTCG) maintains a presence in the industry by supporting vital research. "Keeping our finger on the pulse of the industry is a value-add that we offer our clients," states Peter Goldstein, Executive Vice President of LTCG.

The recently released third annual Index of Long Term Care Uninsured is a prime example. Eileen J. Tell, Senior Vice President at LTCG, played an integral part on the team that produced the third annual Index which, for the first time, focuses on both national and state-specific trends in market penetration.

Long-Term Care Group Examines Market Penetration and Potential
Source: PR Newswire

Permalink posted by armandn @ 12:56 PM
 

Life Insurers Keep Keen Eye on Tax Panel as it Wraps Up Recommendations

A federal commission examining fundamental changes to the U.S. tax code is very unlikely to scrap the income tax system in favor of a national sales tax or a European-style value-added tax, the panel's vice chairman told the American Council of Life Insurers. But a trio of former U.S. Treasury Department tax officials noted that whatever changes the panel ultimately recommends could have tremendous consequences for the life insurance industry.

Life Insurers Keep Keen Eye on Tax Panel as it Wraps Up Recommendations
Source: Insurance News Net

Permalink posted by armandn @ 12:54 PM
 

Boomers' Concern about Retirement Doubles from 2001, According to MetLife Mature Market Institute Comparison Study

As the first wave of Baby Boomers reaches age 59 1/2, the first year they are eligible to make tax-free withdrawals from their retirement plans, many are taking their first real look at retirement and a good portion are not happy, according to the MetLife Mature Market Institute®.

A new study, The MetLife Survey of American Attitudes Toward Retirement: What's Changed?, shows Baby Boomers are increasingly anxious about retirement. Conducted in 2005 with Zogby International, the study set out to compare data from research conducted in 2001. The new study reports that the number of Boomers 'worried about retirement' has doubled, with younger members, ages 41 to 49, more likely to voice concern.

Boomers' Concern about Retirement Doubles from 2001, According to MetLife Mature Market Institute Comparison Study
Source: Yahoo! Finance

Permalink posted by armandn @ 12:51 PM

Thursday, October 13, 2005

 

Hartford Sees Gold In Income Planning

Hartford Life Insurance Company plans to make protection of retirement income a major focus, a top executive says.

Hartford Life, a unit of Hartford Financial Services Group Inc., Hartford, recently held an investment outlook meeting here in New York.

Hartford Sees Gold In Income Planning
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 12:17 PM
 

Life Insurance Can Help Hurricane Survivors

Life insurance can come to the rescue of victims of Hurricanes Katrina and Rita, many of whom were left homeless and jobless in the Gulf Coast states. They might not realize that they can get financial assistance from the life insurance policies they own.

Statistics show that over half of all life insurance policyholders own policies that have cash value—various forms of traditional whole life, universal life, and variable life, as well as some long-term term policies.

Life Insurance Can Help Hurricane Survivors
Source: KeralaNext.com

Permalink posted by armandn @ 12:15 PM
 

Lincoln job cuts still up in the air

Lincoln National Corp. and Jefferson Pilot Financial haven’t told employees exactly where the cuts will come as they shrink their combined work force by 10 percent. But workers will know more when the purchase of Jefferson Pilot closes next quarter.

“We expect to realize approximately $180 million, pre tax, in annual cost savings by the end of 2008,” said Jon Boscia, Lincoln National chief executive officer and chairman, who will have the same role at the combined companies.

Lincoln job cuts still up in the air
Source: FortWayne.com

Permalink posted by armandn @ 12:12 PM
 

SunLife Introduces New Single Premium Universal Life Insurance Product

Sun LifeFinancial announced today the introduction of Sun Value SinglePremium Universal Life Insurance (Sun Value) to its portfolio of universallife insurance products.

Sun Value is a single premium instant issue life insurance policy designedto meet the needs of individuals who desire death benefit protection whilemaintaining the ability to access their values as needed. Sun Value isavailable to bank customers in New York State through Sun Life Insurance andAnnuity Company of New York and to customers in other states through Sun LifeAssurance Company of Canada (U.S.).

SunLife Introduces New Single Premium Universal Life Insurance Product
Source: PRNewswire

Permalink posted by armandn @ 12:07 PM
 

The EIA Brouhaha: What's Next?;The industry feels the NASD's Notice to Members has several misrepresentations

"You are primarily the producers of the product, not the manufacturer, so it is important how you sell the product. For instance, you can't take something that is not a security and make it into a security."

Attorney Joan E. Boros directed those comments to financial advisors here at the annual Producers' Forum & Expo sponsored by the National Association for Fixed Annuities, Milwaukee, Wis.

The EIA Brouhaha: What's Next?;The industry feels the NASD's Notice to Members has several misrepresentations
Source: Insurance News Net

Permalink posted by armandn @ 12:04 PM

Wednesday, October 12, 2005

 

Analysts Respond to Lincoln National, Jefferson-Pilot Proposed Merger with Mixed Feelings

Analysts responded to the proposed merger of Lincoln National Corp. and Jefferson-Pilot Corp. with mixed emotions, with some lamenting Lincoln National's refusal to put itself up for sale and others recognizing the benefit of the combined size and scale that is expected to result from the merger.

Analysts Respond to Lincoln National, Jefferson-Pilot Proposed Merger with Mixed Feelings
Source: SNLi

Permalink posted by armandn @ 3:54 PM
 

NASD Fines Life Company Units

The National Association of Securities Dealers has levied more than $7.75 million in fines against 8 broker-dealers.

The NASD, Washington, says the companies fined directed customers to certain funds in exchange for extra commissions.

The NASD says all of the cases involve apparent violations of its Anti-Reciprocal Rule, which bars brokers from favoring the sales of a mutual fund on the basis of commissions paid by the firm and prohibits a firm from recommending funds or establishing preferred lists of funds in exchange for receipt of directed brokerage.

NASD Fines Life Company Units
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 1:18 PM
 

Life Insurance Premiums to Drop Again Next Year

Premium rates for individual life insurance are expected to drop 3% next year, according to a study being released today by the Insurance Information Institute. The anticipated drop continues several years of declining rates for individual life-insurance policies.

Life Insurance Premiums to Drop Again Next Year
Source: WSJ Online (subscription required)

Permalink posted by armandn @ 1:16 PM
 

NAIC Rushes to Save Mutuals from Proposed International Accounting Rule

A working group of the National Association of Insurance Commissioners is defending mutual insurers that may be in line to comply with a proposed international financial accounting rule regarding business combinations.

At issue is an exposure draft, dubbed "IFRS 3" and issued jointly by the International Accounting Standards Board and the U.S. Financial Accounting Standards Board.

NAIC Rushes to Save Mutuals from Proposed International Accounting Rule
Source: A.M. Best (subscription required)

Permalink posted by armandn @ 1:15 PM
 

Low-cost annuities attractive for younger investors

The rap against variable annuities is that steep surrender charges can lock you into a bad contract and that high annual expenses erode your return.

For the most part, I find this criticism valid. But little-known, low-cost annuities offer a viable alternative, particularly for do-it-yourself investors.

Low-cost annuities attractive for younger investors
Source: South Florida Sun-Sentinel

Permalink posted by armandn @ 1:12 PM
 

Boomers use early retirement as springboard to new careers

A Merrill Lynch survey last year found that 77 percent of more than 3,400 baby boomers polled planned to work in some capacity in their retirement, with second careers in the mix for some, including 13 percent who intended to start their own businesses.

Boomers use early retirement as springboard to new careers
Source: Insurance News Net

Permalink posted by armandn @ 1:10 PM

Tuesday, October 11, 2005

 

Mutual Funds Increase Year-End Capital Gains Payments

Mutual funds are expected to make their largest year-end capital gains payouts since 2000 this year. That means many people will need to be especially careful about investing in mutual funds in the final weeks of this year to avoid a bloated tax bill.

Mutual Funds Increase Year-End Capital Gains Payments
Source: Sun-Sentinel.com

Permalink posted by armandn @ 4:05 PM
 

How to Balance Retirement, Kids' College Costs

When trying to balance retirement planning with their children's education, most parents put the kids first.

Big mistake.

"Many young parents think linearly," says Duane Meek, senior vice president for retirement plans at Nationwide Financial Services in Columbus, Ohio. "Get a job, move up, buy a house, start a family, educate the children — and then think about retirement. But once they've taken care of the kids, there's not enough time to benefit from the compounding of earnings over 30 or more years."


How to Balance Retirement, Kids' College Costs
Source: MSNBC

Permalink posted by armandn @ 3:58 PM
 

John Hancock Long-Term Care Insurance to be Offered by Leading Long Term Care Insurance Marketing Company

John Hancock Long Term Care Insurance to be Offered by Leading Long Term Care Insurance Marketing Company; Long Term Care Resources (LTCR) will offer Hancock's long term care insurance as part of its portfolio of products for affinity groups.

John Hancock Long-Term Care Insurance to be Offered by Leading Long Term Care Insurance Marketing Company
Source: Insurance News Net

Permalink posted by armandn @ 3:55 PM
 

Fidelity Steps Up Focus on Financial Advisors

The venerable chairman of Fidelity Investments, the world's biggest mutual fund company, is making it clear to the rank and file at the Boston-based firm that it's time to end Charles Schwab & Co. Inc.'s dominance of the registered investment adviser market.

Fidelity Steps Up Focus on Financial Advisors
Source: Investment News (subscription required)

Permalink posted by armandn @ 1:07 PM
 

It May Be Time To Buy, As Consumers Balk

Financial advisers are doing more hand-holding these days as consumer confidence plummets in the face of skyrocketing energy prices, pessimism over the war in Iraq and the aftermath of Hurricanes Katrina and Rita. At the same time, many advisers are on the prowl for investment opportunities that may emerge from the crisis of confidence among investors.

It May Be Time To Buy, As Consumers Balk
Source: Investment News (subscription required)

Permalink posted by armandn @ 1:05 PM
 

Experts See No More Changes in Comp Rules

Further changes in producer compensation rules beyond those adopted in recent months by state regulators-including an end to contingency commissions-appear unlikely.

Experts See No More Changes in Comp Rules
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 1:03 PM
 

JP, Lincoln Lay Out the Benefits of Merging

The sale of Jefferson Pilot Financial to Lincoln Financial Group, dubbed by both companies a "merger of equals," will create a new company that has more strengths and fewer weaknesses than either company had alone, according to a fact sheet released by the companies.

JP, Lincoln Lay Out the Benefits of Merging
Source: Biz Journals

Permalink posted by armandn @ 12:49 PM

Monday, October 10, 2005

 

e-Signature Arrives

Technology often has been a way for broker-dealers to differentiate themselves from the competition. As technology becomes increasingly vital to the efficiency and success of a representative's business, financial advisors actively are seeking out the firms that can offer tools that will make a real impact on their day-to-day operations.

e-Signature Arrives
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 12:59 PM
 

Life Valuation Rate Decline Opens Product Opportunities

Due to market interest rates generally declining over the past five years, the maximum valuation interest rate for calculating statutory reserves for life insurance policies will decrease from the current 4.5% annual level for long-term life insurance contracts to 4% for issues in calendar year 2006.

Life Valuation Rate Decline Opens Product Opportunities
Source: National Underwriter (subscription required)

Permalink posted by armandn @ 10:00 AM
 

Conversion of Mutuals Continue to Stir Up Debate

As four Bay State mutual banks look to form mutual holding companies, which allow for issuing a minority position of stock, a local advocacy group is sounding the alarm.

The Center for Insurance Research, a Cambridge group that has long fought mutual conversions in the insurance industry, has entered the bank fray.

Conversion of Mutuals Continue to Stir Up Debate
Source: Biz Journals

Permalink posted by armandn @ 9:38 AM
 

Nationwide Financial Expands Packaged Investment Solutions to Advisory Service Program.

The Best of America Advisory Services Program, the fee-based managed account platform offered by Nationwide Financial Services, Inc. through Nationwide Investment Services Corporation, will expand its packaged investment solutions to assist advisors in helping clients meet their investment objectives. Multi-Style Investment Portfolios have been added to the platform as part of this expansion.

Nationwide Financial Expands Packaged Investment Solutions to Advisory Service Program
Source: Yahoo! Finance

Permalink posted by armandn @ 9:36 AM
 

Lincoln National Buying Jeff-Pilot

Lincoln National Corp. on Monday said it will buy Jefferson-Pilot Corp. for $7.5 billion, in one of the biggest acquisitions in the financial sector in months.

Philadelphia-based Lincoln National will emerge as one of the largest public life insurance companies, with a "broad, balanced product mix" of retirement income, fixed and variable-asset protection, accumulation and transfer products and other investment services, the companies said.

Lincoln National Buying Jeff-Pilot
Source: CBS MarketWatch

Permalink posted by armandn @ 9:31 AM
 

Boomers' extra years are a bonus

So you're going to live longer than any other generation?

Ever wonder why?

Ken Dychtwald, the futurist who has spent more than three decades monitoring the aging of America, has a theory.

He says the extra years are bonus time for boomers, an opportunity to leave a legacy as a result of longevity. As the first boomers reach 60 in 2006, Dychtwald wants them to take time out to frame a meaningful third stage of life.

Boomers' extra years are a bonus
Source: Insurance News Net

Permalink posted by armandn @ 12:03 AM

Friday, October 07, 2005

 

VA Riders: Alphabet Soup Or Mulligan Stew?

The features that probably are seeing the fastest growth in life insurance product development are the new variable annuity riders-the GMDBs, GMIBs, GMWBs and similar offerings. (The acronyms almost make the business seem like a government program.)

Insurers feel obligated to offer new versions of these benefits at frequent intervals in order to stay competitive and maintain market share. Though not averse continual product improvement, we sometimes wonder whether the trend creates more of a thrown together "mulligan stew" than an "alphabet soup" that's nourishing to those who consume it. (Note: For your information the acronyms above stand for guaranteed minimum death benefits, guaranteed minimum income benefits and guaranteed minimum withdrawal benefits.)

VA Riders: Alphabet Soup Or Mulligan Stew?
Source: Insurance News Net

Permalink posted by armandn @ 9:25 AM
 

Analyst Names Lincoln National, Jefferson-Pilot as Potential Merger Candidates

The potential exists for one to two major transactions per year in the U.S. life insurance sector, but in the long-term, more stringent regulatory requirements could boost M&A activity throughout the industry, UBS Securities LLC analyst Andrew Kligerman said in a research note.

Analyst Names Lincoln National, Jefferson-Pilot as Potential Merger Candidates
Source: SNLi

Permalink posted by armandn @ 9:19 AM
 

Now is the Time to Save for Retirement

People turning 50 today are beginning to view that milestone as a time of enjoying new-found freedom, of making new choices and dreaming new dreams. They approach life after 50 with more education, greater economic resources and diverse attitudes, experiences and expectations.

Now is the Time to Save for Retirement
Source: NBC 17 (North Carolina)

Permalink posted by armandn @ 6:30 AM
 

Estate Tax Future Is Murky

The future of estate taxes remains unclear. It seems as if this has been the case since Congress implemented the Economic Growth and Tax Relief Reconciliation Act (EGTRRA) and temporarily repealed the estate tax for one year in 2010.

Estate Tax Future Is Murky
Source: Insurance News Net

Permalink posted by armandn @ 6:27 AM
 

Mutual of Omaha's Voluntary Life and Disability Products See Triple-Digit Growth

Mutual of Omaha's voluntary life and disability products experienced triple-digit growth in the first half of 2005, making the company one of the fastest-growing providers of voluntary benefits. Sales of Mutual's voluntary short-term disability product grew 505 percent in the first half of 2005 compared with the same period a year earlier. The company's voluntary long-term disability sales grew 172 percent and voluntary term life sales were up 163 percent. According to results from LIMRA International's second-quarter sales survey, Mutual of Omaha now ranks within the top 10 producers for each of these products for all LIMRA reporting companies.

Mutual of Omaha's Voluntary Life and Disability Products See Triple-Digit Growth
Source: PRNewswire

Permalink posted by armandn @ 6:21 AM

Thursday, October 06, 2005

 

Bank's Plan Lets Consumers Save As They Buy

Bank of America Corp., one of the nation's biggest financial institutions and Connecticut's largest bank, has presented a plan to make it easier - and potentially more rewarding - to start putting money aside.The service, dubbed "Keep the Change," allows customers to round up their debit card purchases to the nearest dollar and put the change into an interest-earning savings account.

Bank's Plan Lets Consumers Save As They Buy
Source: Hartford Courant

Permalink posted by armandn @ 8:59 AM
 

Property-Casualty Insurers' Profits Soar

Profits for U.S. property-casualty insurers soared 29 percent in the first half of this year, to a record $30.9 billion, and fed the industry's surplus, which will be tapped to help pay Hurricane Katrina's toll.The six months of net income pushed the surplus - the industry's financial cushion that is the difference between assets and liabilities - to $412.5 billion at the end of June, industry organizations reported Wednesday.

Property-Casualty Insurers' Profits Soar
Source: Hartford Courant

Permalink posted by armandn @ 8:44 AM
 

Global warming debate heats up among insurers

Risk-prone insurance companies square off on the potential effects of global warming.

The devastation and cost of Hurricane Katrina provided a new hook for a faction of the insurance industry that is trying to raise public awareness of global warming and push the topic onto the political agenda.

Global warming debate heats up among insurers
Source: The Miami Herald


Permalink posted by armandn @ 6:29 AM
 

Regulators Turn Principles Ideas Into Model Clauses

State insurance regulators are starting long-planned efforts to write a model act that will create a principles-based reserving system.

Mike Boerner, a Texas regulator, is leading the team that is writing the draft, and members of the draft team updated other regulators on the team’s progress at a recent meeting of the Life & Health Actuarial Task Force of the National Association of Insurance Commissioners, Kansas City, Mo.

(subscription required)

Regulators Turn Principles Ideas Into Model Clauses
Source: National Underwriter

Permalink posted by armandn @ 6:26 AM
 

Bank Indexed Annuity Sales Swell

Banks are selling almost 3 times as many equity indexed annuities as they did a year ago, according to a report by Kenneth Kehrer Associates.

(subscription required)

Bank Indexed Annuity Sales Swell
Source: National Underwriter

Permalink posted by armandn @ 6:02 AM

Wednesday, October 05, 2005

 

Economy Gets Another Inflation Warning

The economy received another inflation warning on Wednesday, when a survey of industry executives showed that energy costs drove prices higher in September while business activity slowed in the services sector. The report reinforced expectations that the Federal Reserve would continue to raise rates as the economy struggles with rising fuel costs aggravated by Hurricane Katrina.

Economy Gets Another Inflation Warning
Source: Hartford Courant

Permalink posted by armandn @ 3:23 PM
 

The Hartford Launches New Target Retirement Funds to Help Boomers with Planning Needs

Part of planning forretirement involves choosing a target, often years in advance, designed tohelp meet savings and investment goals in the future. Helping investors aimfor that target with a wide range of retirement products, The HartfordFinancial Services Group, Inc. announced today that it haslaunched The Hartford Target Retirement Funds.

The Hartford Launches New Target Retirement Funds to Help Boomers with Planning Needs
Source: PRNewswire

Permalink posted by armandn @ 12:49 PM
 

Return-of-Premium Riders Seen Boosting Term Life Insurance

Several major life insurers are promoting return-of-premium riders to jump-start their term life insurance sales.

Riders returning to term life policyholders their premiums - sometimes with interest - at the end of the policy term have been around for several years, but insurers have just started to market them aggressively.

(subscription required)
Return-of-Premium Riders Seen Boosting Term Life Insurance
Source: Investment News

Permalink posted by armandn @ 12:27 PM
 

Life Insurance Premium Rates to Continue Downward Trend, Reports Insurance Information Institute

Premium rates for individual life insurance – both term life and “permanent” insurance – are expected to drop by three percent in 2006, driven largely by significant mortality improvements and increased competition, according to the Insurance Information Institute (I.I.I.).

For term insurance, this continues a generally downward trend begun several decades ago, although the three percent drop projected for 2006 is considerably less than the annual average nine percent drop in the last decade, said I.I.I. economist Dr. Steven Weisbart.

Life Insurance Premium Rates to Continue Downward Trend, Reports Insurance Information Institute
Source: Insurance Information Institute

Permalink posted by armandn @ 7:17 AM
 

Everyday Heroes Need Life Insurance

Does Spider-Man need life insurance? What about Batman?

Think I'm being silly?

Perhaps, but clearly lots of folks aren't so clear about who needs life insurance. When asked to assess the life-insurance needs of five fictional characters, almost half of the people surveyed thought superheroes Batman or Spider-Man had a much greater need for coverage than cartoon parents Fred Flintstone and Marge Simpson.

"Though fictional, the life situations of these characters illustrate just how different real people's individual life-insurance needs can be," said David F. Woods, president of the Life and Health Insurance Foundation for Education (LIFE), which sponsored the survey.

Everyday Heroes Need Life Insurance
Source: Northwest Herald

Permalink posted by armandn @ 5:38 AM

Tuesday, October 04, 2005

 

Insurance and the Generation Gap

Those searching for evidence of the brokerage industry's progress towards true wealth management need look no further than registered reps' evolving attitudes towards life insurance.

Insurance and the Generation Gap
Source: Insurance News Net

Permalink posted by armandn @ 12:07 PM
 

Senators Renew Push for Social Security Reform

Nearly 10 months since President Bush first revealed his desire to include private accounts in Social Security reform - an effort that included a three-month, nationwide barnstorming campaign to drum up support - the administration is no closer to getting a proposal heard by Congress.

Senators Renew Push for Social Security Reform
Source: Financial-Planning.com

Permalink posted by armandn @ 12:05 PM
 

401(K) Balances Up 36% Since 1999

In the five years since the end of 1999 through 2004, those Americans who consistently maintained their 401(k) accounts in that time period saw their balances rise 36% to an average of $91,042, according to a study released by the Employee Benefit Research Institute and the Investment Company Institute.

401(K)Balances Up 36% Since 1999
Source: Financial-Planning.com

Permalink posted by armandn @ 12:03 PM
 

Jefferson Pilot Financial Announces Expansion in Life Insurance Marketplace (update)

Jefferson Pilot Financial, one of the nation's leading providers of universal and variable universal life insurance and fixed annuities, announced today the introduction of its newest universal life and term life insurance products, JPF Advantage Solutions and JPF Advantage FlexTerm, respectively. The new products allow insurance professionals, planners and clients to tailor their life insurance protection with unique, innovative and practical rider choices.


Jefferson Pilot Financial Announces Expansion in Life Insurance Marketplace (update)
Source: Yahoo! Finance

Permalink posted by armandn @ 11:54 AM

Monday, October 03, 2005

 

Baby Boomers Like Attributes of Annuities, But Some May Find Traditional Annuities Intimidating, Says ING Study

A new study of American investing habits and goals shows that nearly half of Baby Boomers earning at least $50,000 a year like the benefits offered by annuities, but 42 percent of respondents say they are intimidated by the products.

The study, conducted by ING and the research firm Roper Public Affairs, found that Baby Boomer women are particularly interested in the benefits of annuities. Nearly 6 in 10 Boomer women surveyed agree with the statement "protecting my retirement savings from loss is important, but I also want to be able to grow my savings." Four in 10 men agreed.

Baby Boomers Like Attributes of Annuities, But Some May Find Traditional Annuities Intimidating, Says ING Study
Source: PRNewswire

Permalink posted by armandn @ 11:17 AM
 

Breast Cancer Survivors Can Now Obtain Affordable Life Insurance

The battle against breast cancer touches nearly every family in the United States. After decades of research, improvements in detection and more aggressive treatments, considerable progress is being made against this dreaded disease.

In recognition of the improved prognosis, The Hartford Financial Services
Group, Inc. has become the first life insurer in the nation to offer life insurance to women age 40 and older who have been treated for early stages of breast cancer at the same prices as other healthy women their age. Previously, women treated for this disease would have to pay more for coverage or would be denied coverage.

Breast Cancer Survivors Can Now Obtain Affordable Life Insurance
Source: PRNewswire

Permalink posted by armandn @ 11:13 AM
 

Annuities could play big role in US Social Security's future strategy

To mark its 70th anniversary in August, the Washington-based National Academy of Social Insurance (NASI) issued a detailed analysis of Social Security issues in the US over the next 75 years.

Having generated a surplus of $156 billion in 2004, Social Security was in strong financial shape and would continue to be in the coming decade, said NASI.

Annuities could play big role in US Social Security's future strategy
Source: Insurancenewsnet

Permalink posted by armandn @ 11:04 AM
 

Jefferson Pilot Announces Expansion in Life Insurance Marketplace

Jefferson Pilot Financial, one of the nation's leading providers of universal and variable universal life insurance, fixed annuities and employee benefits, today announced that it is expanding its life insurance product portfolio to reach a new group of customers - the mass affluent.


Jefferson Pilot Announces Expansion in Life Insurance Marketplace
Source: Yahoo! Finance

Permalink posted by armandn @ 11:01 AM

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