Wednesday, November 26, 2008

 

AIG, U.S. Department of Treasury Complete $40 Billion Preferred Stock Sale Under TARP

American International Group, Inc. (AIG) said today that the U.S. Department of the Treasury has purchased four million shares of AIG Series D Preferred Stock and a warrant to purchase a number of shares of common stock of AIG equal to 2 percent of the issued and outstanding shares of common stock of AIG on the date of the investment for $40 billion under the U.S. Department of the Treasury’s Troubled Assets Relief Program.

AIG, U.S. Department of Treasury Complete $40 Billion Preferred Stock Sale Under TARP
Source: Business Wire

Permalink posted by armandn @ 7:22 AM
 

New Firm Aims High for the Middle Market

Futurity First Insurance Group launched this past January and bills itself as the life industry’s first start-up organization since 1998 to mount a full-scale national distribution effort with private equity capital. It is also the first such enterprise to target the middle-income market, using only career agents, in the classic definition. But they are not a carrier’s career agents, as you might expect. They are employed and supported by FFIG and sell only the products of the carriers that FFIG represents. In short, FFIG is a fully independent distributor with a totally captive field force.

New Firm Aims High for the Middle Market
Source: Life Insurance Selling

Permalink posted by armandn @ 7:21 AM
 

Guardian Life Insurance Invests a Total of $154 Million in Kennedy Wilson

Guardian has agreed to invest up to $100 million of equity in Kennedy Wilson's KW Property Fund III, a $1.25 billion real estate fund focusing on financially distressed and under-managed real estate assets. This new commitment is the third and largest investment Guardian has recently made in Kennedy Wilson. Previously, the company invested $24 million in the acquisition of Saybrook Pointe, a 324-unit apartment community in San Jose, CA. Guardian also purchased $30 million of convertible subordinated debt in Kennedy Wilson which, when fully converted, will give it a 10% ownership stake in the company.

Guardian Life Insurance Invests a Total of $154 Million in Kennedy Wilson
Source: MarketWatch

Permalink posted by armandn @ 7:19 AM
 

Wealthy Investors Tap Professionals for Charitable Advice

Wealthy investors are turning increasingly to financial advisors, accountants and lawyers to help them make charitable giving decisions, according to a new survey of 20,000 high-net-worth households by Bank of America conducted by The Center on Philanthropy at Indiana University.

Wealthy Investors Tap Professionals for Charitable Advice
Source: Financial-Planning.com

Permalink posted by armandn @ 7:16 AM

Tuesday, November 25, 2008

 

AXA Shares Slump on Profit Warning

The insurer added that the group's 2012 assumptions are "increasingly obsolete" because of the widening gap between market performance and its initial assumptions.

AXA Shares Slump on Profit Warning
Source: MarketWatch

Permalink posted by armandn @ 7:46 AM
 

Three Simple Steps to Stimulating Your Annuity Sales

In the segment of our industry that I work in, the wholesale brokerage business, you get exposed to many great sales ideas from creative producers. They are sensitive to clients’ needs and have a great feel for affordable, practical solutions. Let me share with you three brief concepts that you can put to work right away to increase your annuity sales.

Three Simple Steps to Stimulating Your Annuity Sales
Source: Life Insurance Selling

Permalink posted by armandn @ 7:45 AM
 

Munich Re Says Eyeing AIG's Asia Life Assets

Munich Re AG, one of the world's largest reinsurers by gross premiums, is eyeing parts of American Insurance Group Inc.'s (AIG) Asian life insurance assets, Ludger Arnoldssun, a board member at the German insurer, said Tuesday.

Munich Re Says Eyeing AIG's Asia Life Assets
Source: CNN Money

Permalink posted by armandn @ 7:44 AM
 

ING Selected by State of Minnesota to Provide Retirement Services

ING Institutional Plan Services Group is pleased to announce that it has been selected by the State of Minnesota to be the administrator for its 457 deferred compensation plan. ING also will provide administration for the State Health Care Savings Plan, the Unclassified Employees Retirement Plan and the Hennepin County Supplemental Retirement Plan.

ING Selected by State of Minnesota to Provide Retirement Services Source: PR Newswire

Permalink posted by armandn @ 7:41 AM

Monday, November 24, 2008

 

U.S. Life Insurers' Variable Annuity Business Hit Hard in Third Quarter

Volatility and sharp declines in the U.S. stock market hit the variable annuity business of some big names in the life insurance industry in the third quarter. Several companies took millions in charge-offs for the cost of acquiring new business and saw higher costs for hedging against risks associated with guarantees offered to policyholders on these retirement-income products.

U.S. Life Insurers' Variable Annuity Business Hit Hard in Third Quarter
Source: Trading Markets

Permalink posted by armandn @ 11:16 AM
 

Government Unveils Bold Plan to Rescue Citigroup

Rushing to rescue Citigroup, the government agreed to shoulder hundreds of billions of possible losses at the stricken bank and to plow a fresh $20 billion into the company.

Government Unveils Bold Plan to Rescue Citigroup
Source: Insurance News Net

Permalink posted by armandn @ 11:14 AM
 

Whole Life: A Balance Between Legacy & Lifestyle

In short, whole life insurance best achieves the delicate balance between legacy and lifestyle. Whole life is one of the most common types of permanent life insurance on the market today. It provides a holistic layer of financial security because of its unique combination of asset accumulation and wealth preservation. It is the only product of its type to offer both living and death benefits — a valuable feature in today’s volatile economic climate and one exclusive to whole life.

Whole Life: A Balance Between Legacy & Lifestyle
Source: Life Insurance Selling

Permalink posted by armandn @ 11:13 AM
 

Make Social Security Part of Your Retirement Planning

It's one of the biggest if not the biggest asset for millions of Americans in or near retirement. Despite a global financial crisis, it has kept all its value.

But we have little practical knowledge of this asset — assuming we even think about how to get the most out of it.

I am taking about Social Security retirement benefits, which by all rights should be a major component of any retirement income plan.

Make Social Security Part of Your Retirement Planning
Source: Sun-Sentinel

Permalink posted by armandn @ 11:10 AM

Friday, November 21, 2008

 

Commercial Loan Losses Hurting Insurers

A new wave of loan defaults, this time tied to commercial mortgages, is starting to hit insurance companies and may be contributing to the stock market's woes.

Industry players say the insurers' predicament is being worsened by a rule requiring that mortgage assets be valued at current market prices -- a mandate that federal regulators are re-examining.

Commercial Loan Losses Hurting Insurers
Source: Yahoo! Finance

Permalink posted by armandn @ 7:45 AM
 

How to Sell Life Insurance Despite Our Struggling Economy

Every day hundreds of people visit our Web site or call in search of sales tips on "how to sell life insurance," especially cash-value life insurance. They want to know how to convince people to buy cash-value life insurance at a time when most people are very reluctant to spend any of their hard-earned money because of the current economy. Unfortunately, when we lay it all out for them, they don't want to hear it. They still want to believe there's a quicker solution that doesn't involve taking the time to read and study. They want a simple idea that will magically attract hundreds of people to them who already want, can afford and can medically qualify for cash-value life insurance. These are the same people who will spend thousands of dollars each year on Internet leads or on a sales system that makes outrageous claims, like promising overnight success while selling from home in your underwear. I hope you are not one of those people.

How to Sell Life Insurance Despite Our Struggling Economy
Source: Producers Web

Permalink posted by armandn @ 7:44 AM
 

Americans React to Market Volatility: AXA Equitable Study Finds Significant Shift in Consumer Attitudes and Behaviors

AXA Equitable Life Insurance Company announced today results of an October 2008 study that revealed the consumer attitudes and behaviors of Americans have shifted rather dramatically in the past six months. Among the most notable results, almost eight in 10 of those polled (78%) ranked income guarantees as a top financial priority, up 16 percentage points from a similar AXA Equitable poll conducted in April.

Americans React to Market Volatility: AXA Equitable Study Finds Significant Shift in Consumer Attitudes and Behaviors
Source: PR Newswire

Permalink posted by armandn @ 7:44 AM
 

Your Life Insurance Policy May Not Be Protected

With the financial system in crisis, investors increasingly rely on government guarantees to protect their money. Bank accounts are backed by the Federal Deposit Insurance Corp. and its $53 billion war chest. After decades on their own, money market funds now are backed by the U.S.. Treasury. And life insurance policies and annuities? They're backed by state guaranty associations. There's only one hitch: The states have virtually no cash on hand and must rely on promises to pay made by healthy life insurers.

Your Life Insurance Policy May Not Be Protected
Source: Business Week

Permalink posted by armandn @ 7:43 AM

Thursday, November 20, 2008

 

One America, Shenandoah Life Insurance Company Announce Proposed Merger

OneAmerica Financial Partners, Inc. and Shenandoah Life Insurance Company announced today the signing of a letter of intent that describes a proposal to merge the two organizations. Under the proposal, Shenandoah would become a subsidiary of OneAmerica(R), joining American United Life Insurance Company, The State Life Insurance Company, Pioneer Mutual Life and R.E. Moulton, Inc. Completion of the merger is expected in mid-2009 after approval of the transaction by eligible policyholders of both companies, and federal and state regulatory authorities.

One America, Shenandoah Life Insurance Company Announce Proposed Merger
Source: MarketWatch

Permalink posted by armandn @ 10:40 AM
 

Insurers' Back-Door Bailout Bids Spark Debate

Life insurers are being called everything from "corporate pigs" to pragmatic capital-seekers as they try to tap billions of the U.S. Treasury's bailout funds.

Insurers' Back-Door Bailout Bids Spark Debate
Source: Hartford Courant

Permalink posted by armandn @ 10:39 AM
 

AXA Equitable Redesigns Flagship Accumulator Variable Annuity

AXA Equitable Life Insurance Company premiered a redesign of its Accumulator(R) variable annuity series. The product series, first introduced in 1995, now includes a groundbreaking living benefit that can seamlessly transition from a Guaranteed Minimum Income Benefit (GMIB) to a Guaranteed Withdrawal Benefit for Life (GWBL). For the first time in the industry, variable annuity contract holders have the ability, at age 85, to convert a GMIB to a GWBL. The patent-pending enhancement offers clients a method for staying invested in equity-based investment options, while at the same time accessing a predictable stream of retirement income.

AXA Equitable Redesigns Flagship Accumulator Variable Annuity
Source: PR Newswire

Permalink posted by armandn @ 10:38 AM
 

National Long-Term Care Cost of Care Study

John Hancock Life Insurance Company (John Hancock) today announced the results of an in-depth study of the 2008 costs of long-term care (LTC), which found that LTC costs have been increasing in line with inflation in recent years.

National Long-Term Care Cost of Care Study
Source: Yahoo! Finance

Permalink posted by armandn @ 10:35 AM

Wednesday, November 19, 2008

 

Phoenix Announces Board Members for Spin-Off of Virtus Investment Partners

The Phoenix Companies, Inc. today announced that it intends to appoint six business leaders, all of whom have broad experience with the asset management industry, to serve as members of the board of directors of its asset management subsidiary, Virtus Investment Partners, Inc. following Virtus’ planned spin-off to Phoenix’s stockholders.

Phoenix Announces Board Members for Spin-Off of Virtus Investment Partners
Source: Business Wire

Permalink posted by armandn @ 7:39 AM
 

Transamerica Adds Investment Options to Variable Annuities

Transamerica Life Insurance Company (Transamerica) today introduced several investment options available with its variable annuity suite. The funds are also available as designated investment options for Transamerica’s recently upgraded Retirement Income Choice living benefit rider, and the Double Enhanced Death Benefit. The four funds are: AllianceBernstein Balanced Wealth Strategy Portfolio, Franklin Templeton VIP Founding Funds Allocation Fund, Transamerica Efficient Markets VP, and Huntington VA Balanced Fund.

Transamerica Adds Investment Options to Variable Annuities
Source: Business Wire

Permalink posted by armandn @ 7:34 AM
 

Hartford Shares Fall Again on Variable Annuity

Hartford Financial Services shares fell 27% Monday as another recent stock market decline renewed concern about the insurer's variable annuity business.

That more than reversed Friday's gains, which came on the back of Hartford's plan to buy a small savings and loan and apply for a government investment of up to $3.4 billion.

Hartford Shares Fall Again on Variable Annuity
Source: Insurance News Net

Permalink posted by armandn @ 7:33 AM
 

Protective Life Files to Become Bank Firm; Will Buy a Bank

Protective Life Corp., the Birmingham, Ala., insurer, said late on Tuesday that it applied to the U.S. Federal Reserve to become a bank-holding company and to the U.S. Treasury to participate in its capital-purchase program. In connection with the applications, Protective Life agreed to acquire Bonifay Holding Co., the Bonifay, Fla., parent of Bank of Bonifay. Terms of the deal weren't disclosed.

Protective Life Files to Become Bank Firm; Will Buy a Bank
Source: MarketWatch

Permalink posted by armandn @ 7:31 AM
 

Crowdsourcing enters the world of Advisor News

"Advisors, reps and agents never seem to have enough time to keep up with the thousands of news sources that have sprung up over the last ten years. The Internet only makes things worse from the standpoint of "noise". Now the "Digg.com" model of crowd-sourcing news has hit the advisor world":

RIA News Focus.

Permalink posted by markw @ 5:16 AM

Tuesday, November 18, 2008

 

Allianz Introduces the GenDex Life Insurance Series

Allianz Life Insurance Company of North America (Allianz) recently announced their new GenDex series of life insurance products is available for sale in over 30 states. Within the new series are the GenDex Momentum and GenDex Survivor fixed index universal life insurance products, both of which offer the consumer the reassurance of knowing that if the insured dies, their beneficiaries will receive a death benefit. In addition, the new GenDex series offers the consumer customizable features to help them meet their diverse needs, including: new indexing choices, higher caps, enhanced early liquidity options, and shorter surrender periods.

Allianz Introduces the GenDex Life Insurance Series
Source: MarketWatch

Permalink posted by armandn @ 8:44 AM
 

Innovative New Term Life Insurance Policies Now Available from Protective Life and West Coast Life

Protective Life Insurance Company and West Coast Life Insurance Company announced the release of a two new innovative life insurance policies designed to meet the changing needs of today's consumer. The Protective Term Income ProviderSM and the West Coast Life Income Replacement Term are term life insurance policies that provide a guaranteed income stream death benefit to designated beneficiaries. Priced more affordably than traditional lump sum term life products, Protective Term Income Provider and West Coast Life Income Replacement Term give consumers the ability to help their families satisfy immediate financial obligations and provide for ongoing income needs.

Innovative New Term Life Insurance Policies Now Available from Protective Life and West Coast Life
Source: MarketWatch

Permalink posted by armandn @ 8:43 AM
 

Around the Globe, Baby Boomers' Retirement Priorities Shift from Fun to Fundamentals

The concept of retirement as it is known in the developed world has traditionally inspired visions of days filled with leisure, travel, and the pursuit of hobbies and other family and personal interests. But for millions of Baby Boomers and older adults around the globe, the prospect of retirement is instead becoming a source of angst as people worry less about enjoying the good life and more about whether they will have the financial resources to meet even the basic necessities of life.

Around the Globe, Baby Boomers' Retirement Priorities Shift from Fun to Fundamentals
Source: Business Wire

Permalink posted by armandn @ 8:42 AM
 

SEC Reviewing 4,000 Comments on Indexed Annuity Rule, Official Says

The regulation of indexed annuities and 'synthetic' annuities were among the topics addressed by SEC Director of Investment Management Andrew J. Donohue in a keynote speech at the American Law Institute-American Bar Association Conference on Life Insurance Products in Washington, D.C., November 13 and 14.

SEC Reviewing 4,000 Comments on Indexed Annuity Rule, Official Says
Source: Financial-Planning.com

Permalink posted by armandn @ 8:40 AM

Monday, November 17, 2008

 

AnnuitySpecs.com Releases Third Quarter, 2008 Indexed Sales Results

Fifty-nine Indexed Annuity carriers participated in the 45th edition of the Advantage Index Sales & Market Report, representing 99% of Indexed Annuity production. Data was collected on sales of Indexed Annuities registered as securities as well. Total third quarter sales were $6.7 billion, up 5.2% from the same period last year. As compared to the previous quarter, sales are down 2.2%. Sheryl Moore, CEO of AnnuitySpecs.com commented, “I can only see sales of indexed products increasing, during a time when American consumers are seeing the balances on their accounts plummet. Indexed Annuity policyholders are sleeping soundly at night, rather than worrying about losing their principal. Now is the BEST time to be offering Indexed Annuity products!” Sales year-to-date were $19.5 billion, up 3.9% from the previous period.

AnnuitySpecs.com Releases Third Quarter, 2008 Indexed Sales Results
Source: Insurance News Net

Permalink posted by armandn @ 11:44 AM
 

Lincoln Financial Group Applies to Become Savings & Loan Holding Company

Lincoln Financial Group today announced that it has applied with the Office of Thrift Supervision to become a savings and loan holding company concurrent with reaching an agreement to acquire Newton County Loan & Savings, FSB, a federally regulated savings bank. Subject to customary terms and conditions, the acquisition of Newton County Loan & Savings, FSB, is expected to close following receipt of approval from the Office of Thrift Supervision. The company also filed an application with the U.S. Treasury to participate in the TARP Capital Purchase Program (TARP CPP).

Lincoln Financial Group Applies to Become Savings & Loan Holding Company
Source: Insurance News Net

Permalink posted by armandn @ 11:43 AM
 

Survey Finds Economic Downturn Has Had a Major Negative Impact on Americans' Ability to Pay for Long-Term Care Services

With significant losses to their savings and investments, and economists warning of a prolonged recession, many Americans are feeling uncertain about their retirement security and their ability to pay for long-term care services. According to a new survey by the nonprofit LIFE Foundation, 64 percent of Americans age 45 and older say that the recent economic downturn has had a major negative impact on their ability to pay for long-term care services should they become unable to take care of themselves for an extended period of time. Considering that 70 percent of Americans who reach age 65 will need such care at some point in their lives, according to the U.S. Department of Health and Human Services, these findings show how financially vulnerable many people are without a long-term care plan.

Survey Finds Economic Downturn Has Had a Major Negative Impact on Americans' Ability to Pay for Long-Term Care Services
Source: PR Newswire

Permalink posted by armandn @ 11:42 AM
 

What Happens When Your Life Insurer Goes Under?

Ever since the problems at the American International Group burst into the consciousness of everyday consumers two months ago, a sort of low-grade fear has set in among policyholders at insurance companies of all kinds.

This week, the concern moved up a notch or two. First, the federal government raised its A.I.G. bailout commitment to $150 billion. Then, a Goldman Sachs research report suggested that some life insurance companies might have to exit the business altogether.

What Happens When Your Life Insurer Goes Under?
Source: New York Times

Permalink posted by armandn @ 11:41 AM

Friday, November 14, 2008

 

Competitive Intelligence as a Key Part of Strategic Development

Competitive intelligence (CI) continues to be valued as a necessary and important tool for competitive strategy development, according to Outward Insights' 2008 Ostriches & Eagles* study. As a follow-up to the 2005 study, Outward Insights conducted an almost identical survey this year to analyze the use of competitive intelligence across a range of industries. In almost every instance, the insurance industry stands out from the norm when compared to other sectors.

Competitive Intelligence as a Key Part of Strategic Development
Source: Producers Web

Permalink posted by armandn @ 11:42 AM
 

Genworth Plans to Borrow $930M to Pay Back Debt

Insurer Genworth Financial Inc. said Thursday it plans to borrow $930 million through an existing $1.7 billion credit line to pay off outstanding debt.

The company said it would use the money to pay off senior debt maturing next year. After that, Genworth said it will have no long term debt maturing until 2011, when $694 million in debt and preferred stock matures.

Genworth Plans to Borrow $930M to Pay Back Debt
Source: Yahoo! Finance

Permalink posted by armandn @ 11:39 AM
 

Retirement Annuities: Cash of Life

Making lightweight canoes had long been a labor of love for Joel Flather, founder of Compass Canoes in Taunton, Mass. But last year, at age 66, Flather decided to sell his ten-year-old business to a larger boating company. The transition confronted Flather with one great unknown. "We never had a pension plan at my company," he says, "so funding the future became an important issue."

Retirement Annuities: Cash of Life
Source: CNN Money

Permalink posted by armandn @ 11:38 AM
 

Financial Crisis, Market Conduct Among Hot Topics at NCOIL's Annual Meeting

The threat of a possible coming round of federal regulation is the headline issue, but for state legislators gathering this week in Duck Key, Fla., disagreements with their own state insurance regulators could spark some heated debate.

Financial Crisis, Market Conduct Among Hot Topics at NCOIL's Annual Meeting
Source: Trading Markets

Permalink posted by armandn @ 11:30 AM

Thursday, November 13, 2008

 

Life Insurers Facing Cuts in Ratings

Life insurance companies, hobbled by real estate investments and committed to paying some costly retirement contracts, face more cuts in their credit ratings before the year is up and have little choice but to seek capital in unforgiving markets.

Companies have until Friday to apply for federal help under the Troubled Asset Relief Program, or TARP, but only about half of the life insurance industry will even be allowed to apply. The Treasury has said life insurers must be affiliated with banks or thrifts that are regulated at the federal level.

Life Insurers Facing Cuts in Ratings
Source: NY Times

Permalink posted by armandn @ 11:49 AM
 

Northwestern Mutual Agrees to Pay $92 Million in Class Action Suit

Northwestern Mutual Life Insurance Co. has agreed to pay up to $92 million to settle a class action lawsuit accusing it of failing to pay dividends on certain term life policies and using improper sales and marketing practices.

Northwestern Mutual Agrees to Pay $92 Million in Class Action Suit
Source: Insurance News Net

Permalink posted by armandn @ 11:34 AM
 

Life Settlement Industry Vows Renewed Effort to Promote Effective Legislative Policy Making and Consumer Education

Democratic political strategist Mark Penn addresses how the industry can improve public image at the Life Insurance Settlement Association's 14th Annual Conference.

Life settlement industry leaders have pledged to expand their current legislative advocacy and consumer education initiatives in order to counter lingering public misconceptions caused, in part, by recent media reports.

Life Settlement Industry Vows Renewed Effort to Promote Effective Legislative Policy Making and Consumer Education
Source: MarketWatch

Permalink posted by armandn @ 11:33 AM
 

New President, New Taxes: Where Do Annuities Fit In?

Now that Senator Barack Obama has been elected president, we know that tax changes are on the way. He has made tax changes one of the major platforms of his campaign, and his overall theme is to cut taxes on those earning lower incomes and increase taxes on those earning upper incomes.

What sort of changes should we expect, and how will they affect the attractiveness of annuities?

New President, New Taxes: Where Do Annuities Fit In?
Source: Producers Web

Permalink posted by armandn @ 11:18 AM

Wednesday, November 12, 2008

 

Troubled Times for Genworth

Genworth Financial Inc. lost more than half of its market value yesterday after getting cut out of a federal program that buys short-term debt from financial firms.

The Henrico County-based insurer became ineligible to sell commercial paper after a ratings agency downgraded its holding company.

Troubled Times for Genworth
Source: Richmond Times Dispatch

Permalink posted by armandn @ 12:37 PM
 

After Financial Bailout, a Long Term Care Bailout? No, Industry Expert Says, Pointing to Recent Congressional Action

Following the $700-billion-plus economic bailout and stimulus program, "Congress does not relish another big bailout," says Cameron Truesdell, CEO of LTC Financial Partners LLC (LTCFP), one of the nation's largest and most experienced long term care insurance agencies. "But they see another tsunami coming." That's the message Truesdell gets from the September 25 introduction of House Resolution 431, "Supporting the goals and ideals of a Long-Term Care Awareness Week."

After Financial Bailout, a Long Term Care Bailout? No, Industry Expert Says, Pointing to Recent Congressional Action
Source: PR Newswire

Permalink posted by armandn @ 12:36 PM
 

MassMutual Enhances Whole Life Insurance Products - Provides Flexibility, Guarantees

Continuing to evolve a new generation of whole life insurance products, Massachusetts Mutual Life Insurance Company (MassMutual) today announced the introduction of updated versions of three products and riders that provide guarantees and increased flexibility for policyholders.

MassMutual Enhances Whole Life Insurance Products - Provides Flexibility, Guarantees
Source: PR Newswire

Permalink posted by armandn @ 12:34 PM
 

The Boomer Boom

Living up to the loudness of their name, the Baby Boomers have made waves ever since they were born--which most major research organizations peg between the years 1946 and 1964. There are about 76 million of these folks now, according to the United States Census Bureau, and demographers say that America is no more ready to handle them today than it's ever been.

The Boomer Boom
Source: Insurance News Net

Permalink posted by armandn @ 12:27 PM
 

Is It Time to Buy Your Own Pension?

Net Gains: If Your Employer Doesn't Provide a Pension Plan, Consider Buying an Immediate Annuity

Now might be the right time to buy yourself a pension. An immediate annuity is one way to retire with a steady stream of income... In a difficult investing environment, one of the best protections you can have against market uncertainty is a guaranteed stream of income from something like a traditional pension plan...

ABC News: Is It Time to Buy Your Own Pension?

Permalink posted by markw @ 5:13 AM

Tuesday, November 11, 2008

 

401(k) Safety No. 1, Economic Fear, Poll Finds

Stock market declines are the biggest economic concern among consumers as they watch the value of their 401(k) retirement accounts dwindle, according to a survey by Geezeo.com, a personal finance Web site that helps consumers track their spending.

401(k) Safety No. 1, Economic Fear, Poll Finds
Source: TheStreet

Permalink posted by armandn @ 5:53 AM
 

Schumer: More Regulation a Must

The next Congress will make overhauling the financial regulatory system one of its first priorities, Sen. Charles Schumer told financial executives Monday.

The changes will seek to fix an outdated system that allowed many financial institutions and financial products to go unregulated, which helped lead to the excess risk-taking that has played a part in the current crisis, Schumer, D-N.Y., said at a Securities Industries and Financial Markets Association conference on the Treasury Department's $700 million Troubled Asset Relief Program.

Schumer: More Regulation a Must
Source: Financial-Planning.com

Permalink posted by armandn @ 5:52 AM
 

Will AIG Be Able to Repay Taxpayers?

The government hiked the amount of help it’s giving troubled insurance company American International Group today. Now taxpayers could put out as much as $173.4 billion for the company across five different programs, some of which offer the government some collateral. It’s the latest increase in a series that began Sept.10 when the government extended AIG an $85 billion line of credit.

Will AIG Be Able to Repay Taxpayers?
Source: Business Week

Permalink posted by armandn @ 5:51 AM
 

401(k) Toolbox's Manage It for Me Now Available as QDIA to Plan Sponsors Using Lincoln Financial Group's Lincoln Director Retirement Program

PMFM, Inc. and Lincoln Financial Group (LFG) today announced that the Lincoln Director(SM) retirement program will now offer the managed accounts services of 401k Toolbox's Manage It For Me® as a Qualified Default Investment Alternative (QDIA). Investment advisory services for 401k Toolbox® are provided by PMFM, Inc., the independent registered investment advisor. 401k Toolbox® will provide plan participants with access to software tools available on the website and direct telephone access to trained specialists to help with investment advice and financial planning.

401(k) Toolbox's Manage It for Me Now Available as QDIA to Plan Sponsors Using Lincoln Financial Group's Lincoln Director Retirement Program
Source: Yahoo! Finance

Permalink posted by armandn @ 5:49 AM

Monday, November 10, 2008

 

Boomers Beleaguered but Still Optimistic About Financial Well-Being

Despite historic market turbulence that has pounded 401(k) plans and retirement savings, American baby boomers surveyed Oct. 20-23 still believe their long-term financial health will be just fine. But the outlook isn’t all rosy.

Boomers Beleaguered but Still Optimistic About Financial Well-Being
Source: Insurance News Net

Permalink posted by armandn @ 12:47 PM
 

AIG's New Deal: Feds Ease Loan Terms, Provide Capital

The Treasury Dept. and the Federal Reserve say they are restructuring the more than $100 billion in assistance provided to shaky insurance giant American International Group Inc., easing lending terms, replacing some of the company’s existing government credit lines with a capital investment and establishing pools to buy assets from AIG.

AIG's New Deal: Feds Ease Loan Terms, Provide Capital
Source: Business Week

Permalink posted by armandn @ 12:46 PM
 

Using Life Insurance in Business Succession Planning

Life insurance can play an important role in a business succession plan. Following are some of the common ways in which life insurance can be integrated with many of the tools, techniques and strategies commonly used in business succession planning.

Using Life Insurance in Business Succession Planning
Source: Producers Web

Permalink posted by armandn @ 12:46 PM
 

How to Save Your Retirement

Without a doubt, the past few months have ranked as the most tumultuous - and scariest - times that I've seen in the more than 20 years I've been at Money magazine. We've witnessed events that up to now had been almost unimaginable: the stock market fluctuating wildly and governments around the globe taking extraordinary steps to unlock frozen credit markets. And it's still unclear when the economy and the markets will hit bottom.

How to Save Your Retirement
Source: CNN Money

Permalink posted by armandn @ 12:44 PM

Friday, November 07, 2008

 

Life Planning as Part of Retirement Planning

Helping employees build a nest egg is essential, but it's only part of the total retirement planning equation.

Longer life spans mean that having a successful retirement takes not just financial planning, but "life planning." However, despite the fact that today's retirees have two or even three decades of active years ahead of them, few really think about how they're going to spend that time and what their retirement will mean for their family.

Life Planning as Part of Retirement Planning
Source: Insurance News Net

Permalink posted by armandn @ 7:01 AM
 

Phoenix Adjusts Policy Dividend Scales for 2009

The Phoenix Companies, Inc. today announced that the board of directors of Phoenix Life Insurance Company voted to adjust the 2008 policy dividend scale effective January 1, 2009 for all policies. The adjustments will result in a dividend reduction for most of the life insurance policies in the closed block of business, as well as the open block.

Phoenix Adjusts Policy Dividend Scales for 2009
Source: Business Wire

Permalink posted by armandn @ 6:59 AM
 

Financial Advisors Award Prudential Annuities Top Industry Honors

Prudential Annuities announced today that for the fourth consecutive year, one of its variable annuity optional living benefits has won a Boomer Market Advisor Readers Choice Award . Additionally, Insurance Marketing readers recently ranked Prudential Annuities No. 1 for the Best Line of Variable Annuities. Prudential Annuities is Prudential Financial's domestic annuity business.

Financial Advisors Award Prudential Annuities Top Industry Honors
Source: Yahoo! Finance

Permalink posted by armandn @ 6:58 AM
 

Man sentenced for fraudulent investment scheme

CEDAR RAPIDS, Iowa - A former insurance salesman has been sentenced to more than 5 years in prison for defrauding investors in Cedar Rapids... The 60-year-old received the prison term after a Nov. 7, 2007, guilty plea to two counts of wire fraud.

At the plea hearing, Jenkins admitted that, from about July 2000 through May 2003, he and others devised a scheme to defraud Life Investors by obtaining life insurance policies in the names of individuals with serious health conditions...

Chicago Tribune: Man sentenced for fraudulent investment scheme

Permalink posted by markw @ 4:33 AM

Thursday, November 06, 2008

 

TowerGroup: Life Insurance Industry Must Shift Product Mix, Adjust Distribution and Focus on Cost Containment During Economic Crisis

Although the U.S. life insurance industry is not as deeply impacted by the current economic crisis as other segments of the financial services industry, the interconnectedness of banks, asset managers, brokerage firms, and insurers themselves means it is not immune. New research from TowerGroup finds that the economic events of the past year have caused rapid changes in consumer behavior and have diminished the overall attractiveness of some life and annuity insurance products. These changes will force insurers to rapidly shift their product mix and refocus their distribution to remain competitive.

TowerGroup: Life Insurance Industry Must Shift Product Mix, Adjust Distribution and Focus on Cost Containment During Economic Crisis
Source: MarketWatch

Permalink posted by armandn @ 12:52 PM
 

Life Insurance Settlement Association Announces 2009 Legislative Forecast: Consumers First

The Life Insurance Settlement Association (LISA) recently announced the organization's forecast and priorities for state and federal legislation in 2009. Doug Head, LISA's Executive Director, said he anticipates that public policymakers will continue to put "consumers first" as more Americans are aware -- and more are in need -- of selling their policies rather than surrendering them for a "grossly inadequate" cash surrender value.

Life Insurance Settlement Association Announces 2009 Legislative Forecast: Consumers First
Source: MarketWatch

Permalink posted by armandn @ 12:51 PM
 

New York Life Will Not Participate in the Treasury Capital Purchase Program

New York Life Insurance Company announced today that it will not participate in the U.S. Treasury Department capital purchase program.

A spokesman for New York Life said, “When it became clear to us that the program was entirely voluntary for insurers, New York Life was able to evaluate it solely from the point of view of its capital strength and its policyholders’ best interests.”

New York Life Will Not Participate in the Treasury Capital Purchase Program
Source: Business Wire

Permalink posted by armandn @ 12:51 PM
 

Insurers in for More Misery

Insurance companies that have sold billions of dollars worth of annuities that make guaranteed payments when stock indices like S&P 500 fall, could weigh on several companies that offer the products.

Equity index annuities (EIAs), also known as fixed index annuities, pay holders a percentage based on the performance of a market index, such as the S&P 500. As the S&P goes up or down, so does the amount of interest the insurer pays the annuity holder. However, EIAs also offer a minimum guaranteed interest rate, generally about 3% (the "fixed" component). Companies do employ hedging strategies targeted to time the annual index credits paid out to annuity holders which should offset some losses, but the amount of the offset is dependent upon the success of those strategies.

Insurers in for More Misery
Source: Insurance News Net

Permalink posted by armandn @ 12:50 PM

Wednesday, November 05, 2008

 

Nationwide Financial Improves Pricing of Its Best-Selling YourLife ULtimate Universal Life Policy

No-lapse guaranteed universal life insurance has been one of the top selling products in the industry, and Nationwide Financial’s YourLifeSM ULtimate product has been a sales success since its launch in June 2006. Now the company has repriced it, making it even more competitive. Nationwide is one of the few insurance carriers that is consistently near the top in both premium rates and target premiums.

Nationwide Financial Improves Pricing of Its Best-Selling YourLife ULtimate Universal Life Policy
Source: Yahoo! Finance

Permalink posted by armandn @ 12:56 PM
 

Union Bank & Trust to Offer Customers 'MyTerm,' Internet-Based Term Life Insurance Through Its Affiliation with Union Insurance Group, LLC

Prudential Financial, Inc. today announced an agreement between its Individual Life Insurance business and Union Bankshares Corporation to offer MyTermSM, a simplified issue term life insurance policy available through the Internet to customers of Union Bank & Trust.

Union Bank & Trust to Offer Customers 'MyTerm,' Internet-Based Term Life Insurance Through Its Affiliation with Union Insurance Group, LLC
Source: MarketWatch

Permalink posted by armandn @ 12:56 PM
 

Insurance Industry Faces a New Political Reality

Without a doubt, the election signaled a shift, but what does that mean for the insurance industry?

The political landscape has changed profoundly, not just because we will have a Democratic president given the biggest mandate since Lyndon B. Johnson’s second term. Barack Obama will also have a compliant Congress with a convincing Democratic majority.

Insurance Industry Faces a New Political Reality
Source: Insurance News Net

Permalink posted by armandn @ 12:55 PM
 

Congressman: Eliminate Tax Deferral for 401(k) Contributions

Spurred by Americans' investment losses this year, Congressman George Miller (D-Calif.) is calling for a re-examination of 401(k) plans that could lead to a radical overhaul of the popular tax-deferred savings vehicles, Pensions & Investments magazine reported last week.

Congressman: Eliminate Tax Deferral for 401(k) Contributions
Source: Financial-Planning.com

Permalink posted by armandn @ 12:54 PM

Tuesday, November 04, 2008

 

Understanding Hybrid Variable Universal Life Insurance Policies

The investment component of the variable universal life products requires its policy owner to have a basic understanding of stocks, bonds and securities because its future value depended on its underlying investments. Any uninformed or poor investment decisions could actually trigger a higher price of the premium or cause the policy to lapse if it's not properly funded.

Understanding Hybrid Variable Universal Life Insurance Policies
Source: Insurance News Net

Permalink posted by armandn @ 12:37 PM
 

AIG Fraud Worth $500 Million

A federal judge has ruled that shareholders of American International Group Inc. lost more than $500 million as a result of a scheme to manipulate the financial statements of the world's largest insurance company.

AIG Fraud Worth $500 Million
Source: CNN Money

Permalink posted by armandn @ 12:36 PM
 

The Future Ain't What It Used to Be

The future for many people who reach retirement age will be longer than any other time in human history. Indeed, the future will demand that planners and clients think differently about how they will approach retirement, and they will need to examine all of their choices. You may have recognized that the title of my article is a Yogism, a quote from former New York Yankees baseball player Yogi Berra, an underappreciated American philosopher. His quotes provide some witty insights into the challenges that we all face for planning and the future.

The Future Ain't What It Used to Be
Source: Life Insurance Selling

Permalink posted by armandn @ 12:35 PM

Monday, November 03, 2008

 

Interview with Bob Kerzner, President of LIMRA on State of the Industry

The following is an exclusive InsuranceNewsNet (INN) interview with Robert A. Kerzner, president and CEO of LIMRA, LOMA and their parent organization, LL Global, a worldwide association of life insurance and financial services companies. This discussion occurred on October 27, 2008 during the association’s annual meeting.

Interview with Bob Kerzner, President of LIMRA on State of the Industry
Source: Insurance News Net

Permalink posted by armandn @ 11:43 AM
 

Financial Services Industry Bracing for a Shake-Up on the Hill

The vast majority of attention regarding Tuesday's election has gone to the presidential campaign, but congressional races are likely to have as much impact on the future of the financial services industry.

Financial Services Industry Bracing for a Shake-Up on the Hill
Source: Financial-Planning.com

Permalink posted by armandn @ 11:42 AM
 

More Bad News for The Hartford

The Hartford, already reeling from soured investments and a $2.6 billion net loss, got another disappointment Friday — one rating agency's downgrade — and it might be followed by more.

Analysts, meanwhile, weighed the bleak odds on how The Hartford Financial Services Group might be able to raise more capital if necessary.

More Bad News for The Hartford
Source: Hartford Courant

Permalink posted by armandn @ 11:40 AM
 

Recruitment Best Practices: The Business of Recruiting Women

Despite the claim that women have a natural affinity for navigating the nuances of the insurance industry and the chops to become some of our industry’s top producers, we comprise just 19% of affiliated agents, according to LIMRA International. While women represent more than half of the U.S. workforce, financial services remains a male-dominated industry.

Recruitment Best Practices: The Business of Recruiting Women
Source: Life Insurance Selling

Permalink posted by armandn @ 11:37 AM

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