Friday, December 19, 2008

 

Regulators May Ease Reserve Rules as Insurers' Options Dwindle

State insurance regulators are seeking to ease reserve requirements for life insurers, increasing the companies’ liquidity as investors and banks curtail funding of the industry.

Regulators May Ease Reserve Rules as Insurers' Options Dwindle
Source: Bloomberg

Permalink posted by armandn @ 7:24 AM
 

2009: A Boon for Bonds?

President-elect Barack Obama promised on Thursday to strengthen financial regulatory agencies and crack down on runaway "greed and scheming" in an effort to restore stability to a reeling U.S. economic system.

2009: A Boon for Bonds?
Source: Financial-Planning.com

Permalink posted by armandn @ 7:23 AM
 

Mutual Fund Families Face 70% Decline

The U.S. could see a 70% decline in the number of mutual fund families over the next five years unless regulations are changed to put them on a more equal footing with hedge funds, according to a new report by the Boston research firm Celent, titled: "The Global Credit Crisis: Implications for North American Wealth Management."

Mutual Fund Families Face 70% Decline
Source: Financial-Planning.com

Permalink posted by armandn @ 7:21 AM
 

MetLife Embraces Eased Rules

Thanks to an effort by New York regulators to give life insurers more flexibility in calculating their reserves, MetLife Inc. said earlier this month it expects to reduce by about $1.8 billion, or more than 30%, the amount it must post to show it can deliver on guarantees in minimum-return variable annuities.

MetLife Embraces Eased Rules
Source: Wall Street Journal

Permalink posted by armandn @ 7:20 AM
 

List Of Entities Announcing Exposure To Madoff Investments

The following entities have announced exposure to Bernard L. Madoff Investment Securities LLC, the New York-based business that allegedly lost $50 billion in a giant pyramid scheme.

Entity: St. Galler Kantonalbank's (SGKN.EB) private Hyposwiss bank
Exposure: $50 million, roughly 0.1% of its overall assets, was invested in
Madoff products through managed accounts. Another $100 million is exposed
through clients invested in Madoff funds.
Date of disclosure: Dec. 18
Notes: St. Galler Kantonalbank first announced the exposure on Dec. 15 and
said its financial situation and liquidity aren't hurt by Hyposwiss'
exposure. Hyposwiss said Dec. 18 that 25% of of 2,000 clients at its Geneva
branch had products sold by Madoff in their portfolios.

Entity: Yeshiva University
Exposure: n/a
Date of disclosure: Dec. 18
Notes: Yeshiva had no direct investment but 8% ($110 million) of its
endowment was invested for 15 years with Ascot Partners LP, which had
"substantially all its assets invested with Madoff," a letter sent by the
university said...

CNN Money: List Of Entities Announcing Exposure To Madoff Investments

Permalink posted by markw @ 5:47 AM
 

S&P says GE triple-A could be at risk

BOSTON/NEW YORK (Reuters) - Standard & Poor's lowered its outlook on General Electric Co (NYSE:GE - News) to "negative" on Thursday, meaning it believes there is a one-in-three chance the U.S. conglomerate could lose its coveted "AAA" rating over the next two years.

The ratings agency upheld its current top-shelf ratings on the world's largest maker of jet engines and turbines that produce electricity, as well as its GE Capital finance arm, the outlook of which also went to "negative." ...GE shares closed down 8.22 percent at $15.96...

S&P says GE triple-A could be at risk

Permalink posted by markw @ 5:44 AM
 

Five Ways to Avoid Getting Madoffed

Simply put, when it comes to selecting an investment manager or any investment vehicle, you need to be a truly informed consumer. This is true whether you're putting your money into a hedge fund, mutual fund or a separately managed account.

I wrote a letter to all of my investors that explained how LakeView Asset Management (my firm) has built-in safeguards to prevent a Madoff-like fraud. So what are a few things that, as an investor, you should look out for and ask before you select an investment advisor? Here are five key questions...

TheStreet: Five Ways to Avoid Getting Madoffed

Permalink posted by markw @ 5:10 AM
 

John Hancock Launches Accumulation Variable Universal Life Product

John Hancock Life Insurance today announced the launch of a new Accumulation VUL product, a variable universal life policy that offers superior cash value and retirement income potential to pre-retirees...

- Unique Dollar Cost Averaging Opportunity
- 2001 CSO Mortality Table Extending Coverage To Age 121
- 20-Year No-Lapse Guarantee*

The policy is ideal for a variety of applications including: Supplemental Retirement Income, Bonus Plans, Deferred Compensation Plans, and Supplemental Executive Retirement Plans...

MarketWatch: John Hancock Launches Accumulation Variable Universal Life Product

Permalink posted by markw @ 5:09 AM

Thursday, December 18, 2008

 

Obama Promises to Bolster Financial Regulation

President-elect Barack Obama promised on Thursday to strengthen financial regulatory agencies and crack down on runaway "greed and scheming" in an effort to restore stability to a reeling U.S. economic system.

Obama Promises to Bolster Financial Regulation
Source: Reuters

Permalink posted by armandn @ 10:49 AM
 

SPIA Does the Heavy Lifting

People are told that the SPIA does heavy lifting, but sometimes the message just doesn't get through. When that happens, I just try, try again. The SPIA is the most valuable retirement income planning tool in the market. Sadly, it is also the most unappreciated. Why? It is misunderstood by most of the public. It is not economical for the seller. It's inaccurately characterized by the professional.

SPIA Does the Heavy Lifting
Source: Producers Web

Permalink posted by armandn @ 10:48 AM
 

John Hancock Launches Accumulation Variable Universal Life Product

John Hancock Life Insurance today announced the launch of a new Accumulation VUL product, a variable universal life policy that offers superior cash value and retirement income potential to pre-retirees.

The policy is ideal for a variety of applications including: Supplemental Retirement Income, Bonus Plans, Deferred Compensation Plans, and Supplemental Executive Retirement Plans.

John Hancock Launches Accumulation Variable Universal Life Product
Source: Yahoo! Finance

Permalink posted by armandn @ 10:48 AM
 

Madoff’s alleged mega-scam hits insurance

A number of major insurance companies are among the entities that were exposed to the alleged fraud perpetrated by Bernard L. Madoff Investment Securities LLC, according to published reports.

Axa SA of Paris, Massachusetts Mutual Life Insurance Co. of Springfield and Swiss Reinsurance Co., as well as other all-star companies, have also been exposed to Mr. Madoff’s alleged $50 billion Ponzi scheme...

Investment News: Madoff’s alleged mega-scam hits insurance

Permalink posted by markw @ 5:34 AM
 

Madoff Misled SEC in '06, Got Off

Securities and Exchange Commission investigators discovered in 2006 that Bernard Madoff had misled the agency about how he managed customer money, according to documents, yet the SEC missed an opportunity to uncover an alleged Ponzi scheme.

The documents indicate the agency had Mr. Madoff in its sights amid multiple violations that, if pursued, could have blown open his alleged multibillion-dollar scam...

WSJ: Madoff Misled SEC in '06, Got Off

Permalink posted by markw @ 4:56 AM
 

Hollywood figures snared in Bernard Madoff's alleged fraud

"Good news, bad news" probably doesn't begin to describe the day Hollywood screenwriter Eric Roth had last week.

Roth was nominated Thursday for a Golden Globe award as screenwriter of "The Curious Case of Benjamin Button." And that same day, he learned that he lost all his retirement money to Bernard Madoff's alleged $50-billion Ponzi scheme...

LA Times: Hollywood figures snared in Bernard Madoff's alleged fraud

Permalink posted by markw @ 4:53 AM
 

SEC to oversee some equity indexed annuities

The U.S. Securities and Exchange Commission voted on Wednesday to begin scrutinizing annuities linked to equity indexes, a complex financial product the agency says falls into a regulatory no-man's land.

...The SEC agreed to define annuity contracts and optional annuity contracts as securities so it can better police the fast-growing $120 billion market. The agency action came at a time when SEC Chairman Christopher Cox has drawn criticism for not doing enough to protect investors.

The SEC's new definition applies to indexed annuities issued on or after Jan. 12, 2011...

Reuters: SEC to oversee some equity indexed annuities

Permalink posted by markw @ 4:50 AM

Wednesday, December 17, 2008

 

SEC Annuities Hearing Today

Dec. 17 is the big day for indexed annuities and the entire industry built around them.

The Securities and Exchange Commission plans a hearing expected to be on proposed Rule 151A, which would treat indexed annuities as securities. It is not known for certain that is the intent because the SEC will not return phone calls for clarification.

SEC Annuities Hearing Today
Source: Insurance News Net

Permalink posted by armandn @ 9:40 AM
 

Ex-General Re CEO Ronald Ferguson Gets Two Years in Prison

Judge Christopher F. Droney painted a good-man-gone-wrong picture Tuesday as he sentenced former General Re Chief Executive Ronald E. Ferguson to two years in prison for helping American International Group hoodwink investors.

Ex-General Re CEO Ronald Ferguson Gets Two Years in Prison
Source: Hartford Courant

Permalink posted by armandn @ 9:39 AM
 

John Hancock LTC Enhances Producer Website

John Hancock Long-Term Care (LTC) Insurance has launched a new and improved version of its producer website (www.jhltc.com) to make it easier for financial professionals to access and order LTC insurance marketing materials, sales forms, and training tools online.

John Hancock LTC Enhances Producer Website
Source: PR Newswire

Permalink posted by armandn @ 9:38 AM
 

Income Planning Made Simple Using "The Rule of 72"?

Do most of your clients really understand the power of compound interest? Do they know how many years it takes a sum of money to double or even quadruple? Have they heard of “The Rule of 72”? Do they know how to use this rule to help plan their projected retirement income levels?

Income Planning Made Simple Using "The Rule of 72"?
Source: Life Insurance Selling

Permalink posted by armandn @ 7:31 AM
 

Did annuity issuers radically underestimate the cost of hedging guarantees?

Pacific Life and The Hartford have joined the ranks of insurers who are raising prices and fees on some of their most popular investment products: variable annuities that promise to provide market gains with no risk, and a lifetime stream of income.

The moves suggest a problem that critics have long suspected: Many insurance companies radically underestimated the cost of hedging their guarantees in a market meltdown. Now that the markets have crashed, some investors will find they’re paying a lot more for the same product.

SmartMoney: More Insurers Raise Fees on Variable Annuities

Permalink posted by markw @ 5:21 AM
 

Beyond Simple Life Insurance

You're young and invincible. The phrase "life insurance" probably means even less to you than the phrase "saving for retirement."

Even if you're not ready to buy life insurance for yourself (or are happy with the minimal coverage you may be already getting through your employer), it's still good to understand what life insurance is all about. It might be something you're interested in.

Forbes: Beyond Simple Life Insurance

Permalink posted by markw @ 5:18 AM
 

Madoff investors turn to life insurance

After watching their wealth evaporate in what could be the largest financial fraud, some victims of the alleged Madoff scandal are considering selling their life insurance policies to support themselves.

Investors who turned all their liquid assets over to Bernard L. Madoff Investment Securities now may have little left except for their homes and insurance policies...

Palm Beach Post: Madoff investors turn to life insurance

Permalink posted by markw @ 5:10 AM

Tuesday, December 16, 2008

 

Midland National Settles Lawsuit with Minnesota Attorney General's Office

Midland National Life Insurance Company announced today that it has entered into a settlement agreement with the Minnesota Attorney General's Office relating to the sale of deferred annuities in Minnesota. Midland National did not enter into a consent judgment.

Midland National Settles Lawsuit with Minnesota Attorney General's Office
Source: Yahoo! Finance

Permalink posted by armandn @ 11:43 AM
 

Many Women Would Rather See the Dentist Than Talk Money With Their Spouse

If ever there was a time for American women to get their financial plans in order, it's now. However, even the current economic crisis isn't enough to drive some of them to take real action and responsibility for their finances. State Farm(R) released findings of a national survey today revealing that while almost three-fourths (74%) of American women feel anxious about their retirement and financial futures due to the recent economic decline, only 15 percent have made major changes to their financial plans. State Farm conducted the survey to understand how women are responding to today's tough economy and what they know about planning for their family's financial future.

Many Women Would Rather See the Dentist Than Talk Money With Their Spouse
Source: Insurance News Net

Permalink posted by armandn @ 11:42 AM
 

How Secure is Your Annuity?

With their guaranteed payouts and protection against market downturns, annuities have long enjoyed a reputation as a refuge in times of turmoil. But after AIG required government assistance (three times so far this year) to stay afloat and several life insurers saw their stock prices sink 70% or more over the course of two months, annuity owners might understandably be nervous.

How Secure is Your Annuity?
Source: CNN/Forbes

Permalink posted by armandn @ 11:41 AM
 

Consumers: Resolve to Get Smart About Insurance in 2009

As we move into 2009, a weak economy, rising unemployment and falling home values will have important ramifications for insurance consumers nationwide. Yet, while these situations pose challenges, they also provide opportunities to save on insurance costs, according to the National Association of Insurance Commissioners (NAIC).

Consumers: Resolve to Get Smart About Insurance in 2009
Source: PR Newswire

Permalink posted by armandn @ 11:36 AM
 

MassMutual Hedge Fund loses $3 Billion+ to Madoff Swindle

Now-confessed swindler got MassMutual funds; Investors told 'we were all victimized' by Madoff

A hedge fund group owned by Massachusetts Mutual Life Insurance Co., of Springfield, has lost all of its clients' money - more than $3 billion - to Bernard L. Madoff, the New York trader who confessed last week to losing $50 billion of his investors' funds in a Ponzi scheme... The hedge fund group, Rye Investment Management, had retained Madoff as the sole manager of its funds, which reported assets of $3.5 billion in April. Rye is a division of MassMutual's Tremont Group Holdings Inc. in Rye, N.Y., which places wealthy clients and institutions, such as pension funds, into hedge funds and with exclusive investors like Madoff.

In one letter to clients Friday, Rye Investment said, "Needless to say, our level of anger and dismay over the apparent betrayal by Mr. Madoff and his organization of his 14-year relationship with Tremont is immeasurable..."

Boston Globe: MassMutual Hedge Fund loses $3 Billion+ to Madoff Swindle

Permalink posted by markw @ 6:32 AM

Monday, December 15, 2008

 

Americans Still Not Close to Meeting Retirement Goals

Although Americans are spending less than they were three months ago, the deepening economic crisis is nonetheless making it more difficult for them to save for retirement.

In a retirement savings survey of approximately 1,000 people across the country, Bank of America found that 60% of respondents are spending less than they were three months ago because of the economic recession. But despite tightening their wallets, more than half, or 51%, of the general public and 40% of affluent Americans are also saving less than they were three months ago.

Americans Still Not Close to Meeting Retirement Goals
Source: Financial-Planning.com

Permalink posted by armandn @ 1:15 PM
 

Are Annuities a Victim of Negative Framing?

In the preface of his 1912 book, Old Age Dependency in the United States, the long-forgotten social scientist Lee W. Squier asks that perennial question: "Why do not working people purchase annuities—the simplest, surest and safest means of providing against want in old age?"

Almost a century later, academics and annuity marketers still haven't found a convincing answer. Many explanations have been floated, including the perceived illiquidity of annuities, and the public's habit of underestimating longevity. But none have settled the matter.

Are Annuities a Victim of Negative Framing?
Source: Financial-Planning.com

Permalink posted by armandn @ 1:14 PM
 

Phoenix Files Amendment No. 3 to Form 10 Registration Statement Relating to Proposed Spin-Off of Virtus Investment Partners

The Phoenix Companies, Inc. announced that today it filed with the Securities and Exchange Commission (SEC) Amendment No. 3 to the Form 10 Registration Statement relating to the proposed spin-off of its subsidiary, Virtus Investment Partners, Inc., into an independent publicly traded asset management firm. The amendment includes responses to SEC comments to the Form 10 Registration Statement’s Amendment No. 2 filing on November 14, 2008 and provides more detail on the distribution of Virtus common stock to Phoenix shareholders.

Phoenix Files Amendment No. 3 to Form 10 Registration Statement Relating to Proposed Spin-Off of Virtus Investment Partners
Source: Business Wire

Permalink posted by armandn @ 1:13 PM
 

Prepare Pre-Retirement Boomers by Offering Facts and Hope

It’s hard to miss the message that Americans need to save more for retirement. The Social Security Administration, AARP, major insurance companies, and the national and industry trade press all have sounded the alarm bells. Many experts are writing articles about strategies for preparing for retirement.

Prepare Pre-Retirement Boomers by Offering Facts and Hope
Source: Life Insurance Selling

Permalink posted by armandn @ 1:08 PM

Friday, December 12, 2008

 

Targeting Boomers As Clients

As we all know full well, the first boomers have begun hitting retirement age and will be doing so over the next 20 years. That’s the potential for millions more clients to hit the “senior” market and the target of much of your practice.

Targeting Boomers As Clients
Source: Senior Market Advisor

Permalink posted by armandn @ 12:23 PM
 

A.M. Best Special Report: Interest Rates Will Continue to be Depressed Through 2009

Whereas in second quarter 2008 the Fed had been the target of questions from Congress regarding its aggressive rate cuts, Congress’ queries now concern the general state of the economy, including increasing foreclosures, low consumer confidence, stability of the financial system, proper use of the Troubled Asset Relief Program (TARP) funds and equity injections into banks are a few of the topics. Investors’ low inflation expectations and the depressed state of the economy, signal interest rates will remain low in the short-term in an effort to encourage bank lending.

A.M. Best Special Report: Interest Rates Will Continue to be Depressed Through 2009
Source: Insurance News Net

Permalink posted by armandn @ 12:22 PM
 

Connecticut's Reliance On Financial Services Makes It Vulnerable

Connecticut's higher-than-average concentration of financial services is a blessing in good economic times. But in bad times, like now, it's a curse, according to a University of Connecticut economist.

Connecticut's Reliance On Financial Services Makes It Vulnerable Source: Hartford Courant

Permalink posted by armandn @ 12:21 PM
 

Are These Policies Actually Worth Settling For?

As a way to increase their income, at a time of national economic crisis, a number of older people are selling their insurance policies that they no longer need or want.

That's according to Paul Aguirre, president, Equity of Life, LLC, in Plymouth Meeting and Skippack, a company that focuses on life settlements -- either the sale or assignment of a life-insurance policy to a financial institution for a lump sum cash payment -- for people 65 years old and older, who aren't terminally ill, and who have a life expectancy greater than two additional years.

Are These Policies Actually Worth Settling For?
Source: Jewish Exponent

Permalink posted by armandn @ 12:20 PM

Thursday, December 11, 2008

 

AIG CEO Says Asset Sales May Be Delayed

The CEO of U.S. insurer AIG, which is looking to shed assets around the globe as part of a $152 billion U.S. government rescue package, said that difficult markets may delay the sale plans, though certain units have attracted heavy interest.

AIG CEO Says Asset Sales May Be Delayed
Source: Reuters

Permalink posted by armandn @ 7:19 AM
 

New Bailouts Cause Adverse Effects for Consumer's Life Insurance Policies

InsuranceBureau.com is helping consumers faced with tough questions on what to do with their existing life insurance policies. Life insurance customers have felt uneasy about the value of their life insurance policies and financial stability of their life insurance company in the wake of AIG's bailout.

New Bailouts Cause Adverse Effects for Consumer's Life Insurance Policies
Source: MarketWatch

Permalink posted by armandn @ 7:18 AM
 

Managing Market Volatility: New Life Insurance Product from Pacific Life Can Help Stabilize Long-Term Wealth Plans

While finances are taking a beating, now may be the right time to get serious about either updating or putting an estate planning strategy in place. Without the sufficient planning or liquidity in an estate, heirs may be forced to sell the estate’s assets at a depressed value – a reality of today’s real estate and equities markets. Pacific Select Estate Preserver VI, a new survivor variable life insurance policy from Pacific Life Insurance Company, has features to help policyowners weather market volatility while the death benefit proceeds can provide needed liquidity to address the challenges of estate planning.

Managing Market Volatility: New Life Insurance Product from Pacific Life Can Help Stabilize Long-Term Wealth Plans
Source: Business Wire

Permalink posted by armandn @ 7:17 AM
 

Axa, MetLife, Prudential, CIC in AIG Unit Talks

Insurance firms Axa SA, MetLife Inc and Prudential Plc, and China's sovereign wealth fund CIC are all in talks to buy a unit of U.S. insurance firm AIG in a deal that is likely to fetch $10.8 billion, financial industry sources said on Wednesday.

Axa, MetLife, Prudential, CIC in AIG Unit Talks
Source: Reuters

Permalink posted by armandn @ 7:15 AM

Wednesday, December 10, 2008

 

St. Paul/Travelers is Top Carrier for Bank-Owned Insurance Agencies, According to Who's Who in Bank Insurance

The top 100 'banks in insurance' are dominated by commercial lines insurance agencies, and when it comes to supplying those agencies, St. Paul/Travelers is the leading carrier -- by far.

St. Paul/Travelers is Top Carrier for Bank-Owned Insurance Agencies, According to Who's Who in Bank Insurance
Source: MarketWatch

Permalink posted by armandn @ 10:51 AM
 

AIG Responds to Wall Street Journal Story

American International Group, Inc. (AIG) has issued the following statement regarding an article that appeared today in The Wall Street Journal:

"A story in today's Wall Street Journal incorrectly reports that AIG has a previously undisclosed obligation to counterparties of about $10 billion. The Journal's story relates to AIG Financial Products' multi-sector credit default swap portfolio. Included within that $71.6 billion portfolio (notional amount as of September 30) is approximately $9.8 billion of swaps that were sold as credit protection on "synthetic" securities. The swaps on these synthetic securities are also referred to as "cash settlement" or "Pay As You Go" (PAUG) swaps because they are settled in cash as and when losses are taken.

AIG Responds to Wall Street Journal Story
Source: MarketWatch

Permalink posted by armandn @ 10:50 AM
 

Phoenix Faces Moody's Review

Moody's said Tuesday it has placed The Phoenix Cos.' senior debt and insurance financial strength ratings on review for possible downgrade, citing a "weakening financial profile" this year.

Phoenix Faces Moody's Review
Source: Hartford Courant

Permalink posted by armandn @ 10:47 AM
 

Survey Reveals Top Financial Representatives Want Some Independence and Some Support

In a new advisor survey released today, top financial representatives expressed that a combination of independent broker/dealer and traditional career system offerings would make them most successful. The survey of more than 1,000 experienced financial representatives, conducted for John Hancock Financial Network (JHFN), was developed by Mathew Greenwald & Associates. The survey examined financial professionals' attitudes about resources offered through affiliations with business partners such as insurance companies, wirehouses, banks and independent broker dealers.

Survey Reveals Top Financial Representatives Want Some Independence and Some Support
Source: Yahoo! Finance

Permalink posted by armandn @ 10:46 AM

Tuesday, December 09, 2008

 

Seniors face grim choices amid market shock

Over half of senior citizens say they are either postponing retirement or planning to return to work due to the economic crisis, according to a survey released Tuesday by Golden Gateway Financial...

In a poll of 800 homeowners over the age of 65, 31% said that they are staying on the job longer due to their shrinking retirement funds, while another 22% plan to return to the workforce.

...Seniors are also drumming up cash by selling their life insurance policies for more than their cash surrender values, according to Bachman, who adds that $13 billion worth of so-called 'life settlements' were sold in 2007...

CNN Money: Seniors face grim choices amid market shock

Permalink posted by markw @ 1:14 PM
 

Principal Financial to cut 550 jobs

Insurance, banking, retirement and asset manager Principal Financial Group Inc. said Tuesday it is cutting 550 jobs, about 3.5 percent of its work force... The Des Moines, Iowa-based company said the cuts are the result of continued deterioration of U.S. and global markets.

The cuts include 300 jobs at its Des Moines, Iowa, corporate headquarters and 250 in 45 other locations...

Forbes: Principal Financial to cut 550 jobs

Permalink posted by markw @ 1:13 PM
 

More Families Move to Lock In Tuition Rates

As the stock market swoons and tuition costs soar, more families are deciding to pay for college in advance through their 529 plans.

For years, families have preferred the savings type of 529 plan -- named for the relevant section of the tax code -- salting away after-tax dollars, investing them in mutual funds and other investments, and then taking the money out, tax-free, when the time comes to pay for school. But as many of these accounts have been savaged by the market's plunge this year, families are now turning to the prepaid variety of 529...

Yahoo! Finance: More Families Move to Lock In Tuition Rates

Permalink posted by markw @ 1:11 PM
 

Variable Annuity Trends

Investors and advisors alike would be hard-pressed to find a silver lining to this fall’s financial meltdown, but if there is one, says John Hancock’s Tom Mullen, it might just be found in the variable annuities marketplace. One potential positive to emerge from all the bloodshed, suggests Mullen, vice president of marketing at John Hancock Annuities, is a winding down of the “arms race” that for roughly the past two years has pitted insurance companies against one another in an increasingly risky game of living benefits one-upmanship...

Senior Market Advisor: Variable Annuity Trends

Permalink posted by markw @ 1:10 PM
 

Getting women involved in LTC decisions

Q: When working with prospects to sell them long term care insurance, I know that often women are the decision makers. What advice can you provide to take the female perspective into account?

Senior Market Advisor: Getting women involved in LTC decisions

Permalink posted by markw @ 1:08 PM

Monday, December 08, 2008

 

MIB Life Index Reports North American Life Insurance Activity Off 1.9% in November

North American application activity for individually underwritten life insurance was down -1.9% in November year-over-year, according to the MIB Life Index (SM). Year to date (YTD) U.S. and Canadian activity remained stable, off -1.9% versus the same eleven months last year. November's activity was off -0.9% as compared to October 2008 activity.

MIB Life Index Reports North American Life Insurance Activity Off 1.9% in November
Source: PR Newswire

Permalink posted by armandn @ 10:40 AM
 

MetLife Announces Expected 2008 Financial Results & 2009 Guidance

MetLife, Inc. announced its expected results for the fourth quarter and full year 2008 and provided several financial targets for 2009. Members of MetLife’s senior management team will discuss the company’s businesses at the company’s annual investor conference beginning at 8:00 a.m. today.

MetLife Announces Expected 2008 Financial Results & 2009 Guidance
Source: Insurance News Net

Permalink posted by armandn @ 10:39 AM
 

How to Prosper During This Worsening Economy

America's finances are in turmoil. The personal economies of many individuals and their families are on the precipice of a disastrous failure. Few families have a personal plan to help them meet these financial challenges, and they need your help. Opportunities abound for insurance agents, financial advisors and planners who understand these problems and hold the solutions in their minds and hearts. You can draw people back from the brink of financial failure, but how are you going to attract them to you?

How to Prosper During This Worsening Economy
Source: Producers Web

Permalink posted by armandn @ 10:37 AM
 

The Hartford Allays Concerns and Stock Doubles

Life-insurance stocks climbed sharply, when Hartford Financial Services Group Inc. became the second big insurer this past week to allay investors' concerns that it might have to raise additional capital.

The Hartford Allays Concerns and Stock Doubles
Source: Wall Street Journal (subscription required)

Permalink posted by armandn @ 10:34 AM

Friday, December 05, 2008

 

Unretired: Retirees are Back, Looking for Work

Seniors who thought they were set for life just a year ago now face the prospect of going back to work for two, five, even 10 years. They're sprucing up their résumés, calling old work contacts, and flocking to employment sites. There are no reliable stats yet on how many retirees are looking for work, but there are clear signs the number is growing. RetirementJobs.com, the largest career site for people over 50, saw traffic more than double, from 250,000 visitors in July to 600,000 in November. In April, before the worst of the market downturn, a survey conducted by the seniors group AARP found that 17% of responding retirees over 50 were considering or already going back to work.

Unretired: Retirees are Back, Looking for Work
Source: Business Week

Permalink posted by armandn @ 11:10 AM
 

Understanding the Underwriting Challenges of the Age 65+ Market

When working with an older client in the planning process, the individual’s health may be a critical component of the underwriting equation. Right from the start, there are certain issues that should be taken into consideration. Here are the three most important:

1. Are there insurability issues?
2. Should this be an individual policy or a second-to-die (survivorship) policy?
3. What is the best way to solve estate preservation concerns?

Understanding the Underwriting Challenges of the Age 65+ Market
Source: Life Insurance Selling

Permalink posted by armandn @ 11:09 AM
 

Latest DSG Study Finds That The Mutual Fund Industry Has Raised the Stakes in the Battle with Insurers for Retirement Income Assets

The Diversified Services Group, Inc. (DSG) today announced the completion of its 2008 Retirement Income Products and Solutions Study, the 9th annual report in this ground breaking series. The 136 page report includes the findings from two separate, but complementary research efforts: a survey of over 40 providers of retirement income products and solutions, and a series of 17 in-depth interviews with selected senior executives who focus on the retirement income market.

Latest DSG Study Finds That The Mutual Fund Industry Has Raised the Stakes in the Battle with Insurers for Retirement Income Assets
Source: PR Newswire

Permalink posted by armandn @ 10:52 AM
 

How to Salvage Your Retirement

The double-whammy of investment losses and withdrawals from your nest egg to pay living expenses dramatically increase your chances of running through your retirement savings prematurely, which is something you obviously want to avoid.

The good news is that there are some moves you can take to reduce your odds of outliving your savings. The bad news is that those moves aren’t very appealing.

How to Salvage Your Retirement
Source: CNN Money

Permalink posted by armandn @ 10:43 AM

Thursday, December 04, 2008

 

In Tough Times Many Dip Into Retirement Savings

As the economic crisis continues to hammer Americans, many are turning to desperate measures by dipping into their retirement funds to make ends meet, according to a survey released Thursday.

In Tough Times Many Dip Into Retirement Savings
Source: CNN Money

Permalink posted by armandn @ 11:55 AM
 

John Hancock Financial Network Offers Bank Owned Life Insurance Resource to its Independent Career Firms Nationally

Ramsey Partners, LLC, a specialty bank consulting firm, has moved its affiliation to John Hancock Financial Network (JHFN). Through Empire Financial Partners, an independent office of John Hancock Financial Network in Buffalo, NY, they will offer bank owned life insurance (BOLI) consulting resources to the entire network nationally, announced Peter Gordon, President of JHFN.

John Hancock Financial Network Offers Bank Owned Life Insurance Resource to its Independent Career Firms Nationally
Source: PR Newswire

Permalink posted by armandn @ 11:52 AM
 

More Regulation for Banks

The financial crisis, collapse, and “bail out” of huge financial institutions have jaded public attitudes to the banking sector. Every year The Harris Poll® asks a survey of all adult Americans which consists of a list of 17 major industries that should be “more regulated by government.” From 2003 to 2007 only 17% to 21% of adults thought banks should be more regulated. In this new survey this number has jumped to 36%, up 16 points from last year.

More Regulation for Banks
Source: Insurance News Net

Permalink posted by armandn @ 11:51 AM
 

Senior Citizens Can Lose Life Savings Via Power of Attorney

Vulnerable senior citizens are increasingly losing their life savings to unscrupulous individuals who have power of attorney over their finances, the AARP says in a report set to be released Thursday.

Senior Citizens Can Lose Life Savings Via Power of Attorney
Source: USA Today

Permalink posted by armandn @ 11:48 AM

Wednesday, December 03, 2008

 

New Study Reveals Wide Chasm Between Life Insurance Coverage and Common Financial Goals for Millions of Americans

American families, already confronting a difficult economic environment, face the danger of missing widely-held goals such as paying off a mortgage, funding a four-year college education or financing a secure retirement because they lack adequate life insurance protection, according to a major new “Life Insurance Gap” study released today.

New Study Reveals Wide Chasm Between Life Insurance Coverage and Common Financial Goals for Millions of Americans
Source: Business Wire

Permalink posted by armandn @ 12:15 PM
 

Foresters Launches Universal Life Insurance to Help Families and Their Need for Financial Security

Foresters, a leading fraternal benefit society, today launched Foresters BIG Universal Life insurance that offers affordable, permanent life insurance coverage to help its U.S. members and prospective members achieve financial security. BIG UL offers a first-of-its-kind in America -- a Death Benefit Enhancement Rider that provides up to double the life insurance coverage at no extra cost.

Foresters Launches Universal Life Insurance to Help Families and Their Need for Financial Security
Source: PR Newswire

Permalink posted by armandn @ 12:14 PM
 

Beacon's Fixed Annuity Premium Study Reports Third Quarter's Bank Channel Sales

U.S. bank sales of fixed annuities were an estimated $9.2 billion in third quarter, 2008, according to new data from the Beacon Research Fixed Annuity Premium Study. The quarter’s sales were 80% above third quarter, 2007, and up 4% from the prior quarter. On a year-to-date basis, estimated sales were $24.9 billion, 90% ahead of results in the first three quarters of 2007.

Beacon's Fixed Annuity Premium Study Reports Third Quarter's Bank Channel Sales
Source: Insurance News Net

Permalink posted by armandn @ 12:13 PM
 

Insurers Voice Concern About Aid for Rivals

U.S. property-casualty insurers asked lawmakers Tuesday to keep rival financial companies from tapping federal aid to gain a competitive advantage.

Insurers Voice Concern About Aid for Rivals
Source: Courant.com

Permalink posted by armandn @ 12:12 PM

Tuesday, December 02, 2008

 

Life Insurers Talk Mergers, but Deals are Tough

Many U.S. life insurers are likely talking about possible mergers amid the economic downturn, but it may be a tough time to do many deals.

Life insurers could be in for losses from their commercial real estate portfolios and from guarantees in their variable annuities products. And volatile markets could lead to more investment losses.

Life Insurers Talk Mergers, but Deals are Tough
Source: Reuters

Permalink posted by armandn @ 6:30 AM
 

Americans Positive about Personal Financial Future, Unsure about National Economic Outlook

73 percent worried about overall economic direction Americans are significantly more optimistic about their personal financial future than they are about the economic direction of the country, according to a new study released today by Allianz Life Insurance Company of North America (Allianz). The Allianz Consumer Confidence Survey was commissioned to assess consumer attitudes toward retirement, the financial services industry, and investments in the United States.

Americans Positive about Personal Financial Future, Unsure about National Economic Outlook
Source: MarketWatch

Permalink posted by armandn @ 6:28 AM
 

Life Sales Tumble - Down 11% in the Third Quarter, LIMRA Reports

New annualized premium for individual life insurance dropped 11 percent in the third quarter of 2008, according to LIMRA’s sales survey report.

“Variable life (VL) and variable universal life (VUL) products saw the steepest decline, plunging 33 percent for the quarter,” said Ashley Durham, LIMRA analyst for product research. “Given the current equity market environment, it’s not surprising that variable products took the biggest hit. Not only are individual VUL sales suffering, a number of companies have noted that corporate owned and private placement sales are much lower than they were this time last year.”

Life Sales Tumble - Down 11% in the Third Quarter, LIMRA Reports
Source: Insurance News Net

Permalink posted by armandn @ 6:26 AM
 

Study Finds Consumers Wary of Annuities

Despite the continual upswing of fixed annuity products, a LIMRA International study of consumers between 50 and 75 years old with household incomes of at least 50,000 dollars in the Raleigh, North Carolina an Cincinnati areas discovered that consumers both find annuities to be confusing and tend to harbor a bias against these products.

Study Finds Consumers Wary of Annuities
Source: Producers Web

Permalink posted by armandn @ 6:25 AM

Monday, December 01, 2008

 

Baby Boomers, Gen Xers Cope with Shifting Connotations of 21st Century Retirement

Adults approaching retirement are one of the fastest growing demographics in the United States. This timely new report from Packaged Facts, The Retirement Products Market for Baby Boomers and Generation X in the U.S., projects total retirement assets by product type (IRA, Annuities, Government Pension Plan, Defined Contribution Plans, and Private Defined Benefit Plans) through 2012 in two ways: by actual experience between 2002 and 2007, and as adjusted for nominal GPD growth rate as projected by the Congressional Budget Office. Either formula yields an astonishing increase over 2007's total value of $17.6 trillion.

Baby Boomers, Gen Xers Cope with Shifting Connotations of 21st Century Retirement
Source: Insurance News Net

Permalink posted by armandn @ 10:40 AM
 

Unraveling the Mystery Behind U.S. Treasury Prices

In a season characterized by an ever-growing list of unprecedented events—from repeated capital infusions by the federal government into U.S. financial institutions to historically high market volatility—it's tempting to shrug your shoulders when you come across truly puzzling valuations that appear to ignore economic fundamentals. Still, the extent to which investor demand for U.S. Treasury bonds has sent prices soaring and yields plummeting seems to defy reason.

Unraveling the Mystery Behind U.S. Treasury Prices
Source: Business Week

Permalink posted by armandn @ 10:39 AM
 

Led by New York Life Products, Fixed Annuity Sales Rise 54% in Third Quarter

Buttressed by favorable interest rates and sought by investors looking for shelter from falling equity prices, U.S. fixed annuity sales set a new quarterly record.

Led by New York Life Products, Fixed Annuity Sales Rise 54% in Third Quarter
Source: Financial-Planning

Permalink posted by armandn @ 10:38 AM
 

Advising for the Future During a Tough Market

As financial advisors, we have substantial roles in our clients’ lives as they plan for retirement. Some of us might have experienced a recent role increase due to what some have called “the worst financial crisis since the Great Depression.” As trusted advisors, this is a time that we are called upon by our clients for our professional and financial acumen.

Advising for the Future During a Tough Market
Source: Senior Market Advisor

Permalink posted by armandn @ 10:37 AM

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