Friday, July 31, 2009

 

Insurer Genworth Sticks to Mortgages Despite Loss

Shares of life and mortgage insurer Genworth Financial fell as much as 9 percent on Friday, a day after it reported its fifth-straight quarterly loss, roiled by deeper losses within its U.S. mortgage insurance unit.

Genworth has clung to its U.S. mortgage business even as the nation's housing market nosedived.

Insurer Genworth Sticks to Mortgages Despite Loss
Source: Reuters

 

Disability Benefit Claims Surge During Recession

Social Security officials say they expect an even larger spike in new disability claims than they had predicted, as aging, injured baby boomers tumble out of the work force and need income.

Disability Benefit Claims Surge During Recession
Source: Associated Press

 

The Flexibility of Long-Term Care Insurance

In the non-business sector, the average age of long-term care insurance buyers has dropped from about 73 to about 62 over the last seven years or so. When the insurance is purchased through a business, either as an owner or employee, it’s not unusual for the age to drop into the 40s and 50s.

The Flexibility of Long-Term Care Insurance
Source: New Hampshire Business Review

 

USAA Asks It’s Consumers – What’s On Your Mind?

This week USAA Bank launched what they are calling a “Conversation Site” entitled – What’s On Your Mind. The micro/community website focuses helping those who are unsure what to do with such questions as: “Dealing with credit card debt?”, “Considering buying a house or refinancing a mortgage?” and “Preparing for retirement in a down economy?”...

MyBankTracker: USAA Asks It’s Consumers – What’s On Your Mind?

 

"They are the villains" -- Pelosi lashes out against insurance companies

U.S. House of Representatives Speaker Nancy Pelosi on Thursday ramped up her criticism of insurance companies, accusing them of unethical behavior and working to kill a plan to create a new government-run health plan.

"It's almost immoral what they are doing," Pelosi said to reporters, referring to insurance companies. "Of course they've been immoral all along in how they have treated the people that they insure," she said, adding, "They are the villains. They have been part of the problem in a major way. They are doing everything in their power to stop a public option from happening..."

Reuters: Pelosi lashes out against insurance companies

 

After Rescue, New Weakness Seen at A.I.G.

The dozens of insurance companies that make up the American International Group show signs of considerable weakness even after their corporate parent got the biggest bailout in history, a review of state regulatory filings shows... In the months since A.I.G. received its $182 billion rescue from the Treasury and the Federal Reserve, state insurance regulators have said repeatedly that its core insurance operations were sound — that the financial disaster was caused primarily by a small unit that dealt in exotic derivatives...

But state regulatory filings offer a different picture. They show that A.I.G.’s individual insurance companies have been doing an unusual volume of business with each other for many years — investing in each other’s stocks; borrowing from each other’s investment portfolios; and guaranteeing each other’s insurance policies, even when they have lacked the means to make good. Insurance examiners working for the states have occasionally flagged these activities, to little effect...

NYT: After Rescue, New Weakness Seen at A.I.G.

 

Pros/Cons of Index Annuities

Index Annuity or Equity-Index Annuity (EIA) is a contract between you and an insurance company. You give the insurance company money in the form of premium(s) and they promise (subject to the claims-paying ability of the company) to pay you to some amount in the future. The amount you receive is based on what the "contract" says only, not what a sales person might say...

Dallas News: Pros/Cons of Index Annuities

 

Morgan Stanley Smith Barney Adds Nationwide Annuity to UMA Platform

Morgan Stanley Smith Barney has added a fixed income annuity from Nationwide to its unified managed account platform, so that investors have the option of selecting lifetime income. The brokerage is calling the option Select Retirement...

Financial Planning: Morgan Stanley Smith Barney Adds Nationwide Annuity to UMA Platform

 

Cigna 2Q Profit Rises 60% On Annuity Strength

Cigna Corp. (CI) posted a 60% increase in second-quarter earnings, aided by $110 million in income from its annuity business, though medical enrollments continued to decline... While the results exceeded Wall Street expectations, Cigna said enrollment should fall more this year than expected previously - by 5% to 5.5%, rather than the previous forecast of 3% to 4% - as corporate customers continue to shed workers...

WSJ: Cigna 2Q Profit Rises 60% On Annuity Strength

 

MetLife reports $1.4 billion quarterly net loss

MetLife Inc. swung to a quarterly net loss late Thursday on derivatives losses mainly tied to the rising value of the insurer's own debt... MetLife said the second-quarter net loss came in at $1.4 billion, or $1.74 a share. That compares to net income of $915 million, or $1.26 a share, a year earlier...

The result was mainly driven by derivative losses of $1.8 billion...

MarketWatch: MetLife reports $1.4 billion quarterly net loss

 

Risk-averse investors dive into low-rate annuities: Stop the madness!

With the stock market having handed investors massive losses -- in spite of the recent upturn -- there was a flight to security in the first quarter of 2009.

USA Today recently reported that "Fixed annuity sales jumped 74%, to $35.6 billion, the highest ever, for the three months ended March 31, the most recent data available from insurance consulting firm Limra..."

WalletPop: Risk-averse investors dive into low-rate annuities: Stop the madness!

 

"De-Risked" VAs Still Have Value

Once the focus of negative press for their high cost relative to other investment options, variable annuities are now in the firing line for their newly diminished benefits, but in a new whitepaper Variable Annuity Living Benefits – Do They Still Make Sense After the Changes?, Scott Stolz, president of Raymond James’s insurance subsidiary Planning Corp. of America, argues that while variable annuities are down, they’re certainly not out...

...Old contracts, for example, would guarantee that an account would double over a 10-year period, and the industry was confident at the time that market growth would mean that guarantee would never be needed. But a $1 million account in 2000 might be worth $440,000 today, and insurers are stuck holding the bag for 5% of $2 million for life in this example...

Financial Planning: "De-Risked" VAs Still Have Value

 

Housing Bottom? No, The Mother Of All Head Fakes

Housing bears immediately tried to poke holes in the surprisingly good numbers in the May Case Shiller report...

Business Insider: Housing Bottom? No, The Mother Of All Head Fakes

 

30 Year Review Ahead Of Short Term Auctions

A brief review is in order of the long term chart before heading to the short term daily charts. Since 1984, the 30 year has been hammering out intermediate term bottoms at key 50% retracements. See the examples from the Oct 1987 low, the Sept 1990 low, the Nov 1994 low, and the May 2004 to June 2007 lows...

Zero Hedge: 30 Year Review Ahead Of Short Term Auctions

 

Warning Signs Up For Leveraged ETFs

Morgan Stanley Smith Barney is reviewing how it sells leveraged exchange-traded funds, while Charles Schwab issued an unusual warning to clients who buy them.
Journal Community

The actions are the latest in a string of moves by brokerages, some of which have placed constraints on sales of leveraged or inverse ETFs or stopped them outright, as the funds come under the scrutiny of regulators concerned about their suitability as long-term investments...

WSJ: Warning Signs Up For Leveraged ETFs

Thursday, July 30, 2009

 

A Summer Crop of Variable Annuities

Judging by the latest wave of variable annuity contracts, insurers have chosen to “de-risk” their products in one of two ways: by simplifying them and slashing prices or by maintaining rich benefits and simply charging more for them.

A Summer Crop of Variable Annuities
Source: Retirement Income Journal

 

The Hartford Reports $15M Loss in Second Quarter

The Hartford reported a second-quarter loss Wednesday of $15 million, its best quarterly showing of the past year, as investment losses narrowed and earnings from core operations beat analysts' expectations.

The Hartford Reports $15M Loss in Second Quarter
Source: Hartford Courant

 

Get More Flex Out of Your Investment

The Principal Financial Group® introduces new ways for customers to battle the uncertain markets. Principal Universal Life (UL) FlexSM, true to its name, offers clients both flexible protection and greater cash accumulation potential in one product.

Get More Flex Out of Your Investment
Source: Earth Times

 

Hartford Financial: Search for New CEO Making Progress

Hartford Financial Services Group's (HIG) search for a new chief executive is moving along, despite the restrictions placed on the company because of its acceptance of government funding.

"The search committee has been directed by the board and they have been very pleased with their progress," said Ramani Ayer, Hartford chairman and chief executive, during the company's second quarter earnings conference call Thursday. Ayer said nearly two months ago he plans to retire by the end of the year.

Hartford Financial: Search for New CEO Making Progress
Source: CNN Money

 

May-June joblessness up in 90 pct of metro areas

More than 90 percent of the nation's largest metropolitan areas saw their unemployment rates climb in June from the previous month.

Some of the biggest increases hit college towns, where the annual summertime exodus of students causes bars, restaurants and other businesses to cut staff. The Detroit area, hit hard by manufacturing layoffs tied to the beleaguered auto industry, also got stung in June.

Unemployment rates rose from May to June in 348 of more than 370 metro areas...

AP: May-June joblessness up in 90 pct of metro areas

 

Conseco Rises on Quarterly Profit, Loan Compliance

Conseco Inc., the Carmel, Indiana- based life insurer, gained 36 percent and led the gainers on the Russell 3000 Index after saying it had a second-quarter profit and results complied with credit agreement covenants.

The insurer rose 68 cents to $2.58 at 4:15 p.m. in New York Stock Exchange Composite trading. Conseco’s net income was between $15.8 million and $27.8 million, compared with a net loss of $488.5 million a year earlier, the firm said late yesterday in a statement. Operating income was 22 cents a share, matching the average estimate of 5 analysts surveyed by Bloomberg...

Bloomberg: Conseco Rises on Quarterly Profit, Loan Compliance

 

Man sues... says insurance policy value was hyped

Insurance mogul Barry Kaye, who has told Florida Atlantic University he will not fulfill his $16 million pledge to the school, is now facing a federal lawsuit in relation to his once mega-profitable life settlement business.

The lawsuit, filed Tuesday in Ohio, claims that Kaye's Boca Raton firm persuaded an 81-year-old man to purchase a $5 million life insurance policy in 2006 with promises that he later could sell the policy to an investor for a large profit.

After paying more than $322,000 in premiums over two years, plaintiff Louis Levin said his policy was no longer marketable and he was told that a buyer could not be found. During this time, Levin alleges, Kaye received a commission on the policy sold to him...

Palm Beach Post: Man sues Boca Raton's 'You Buy, You Die' guy, says insurance policy value was hyped

 

Facing budget gaps, U.S. states shuffle tax codes: group

Caught with near-chronic budget shortfalls, U.S. states are scrambling to change their tax codes and bring in more revenues, the Tax Foundation said on Wednesday.

The foundation has compiled an annual index on 37 categories of states' taxing and spending since 1937. This is the first time that it has had to update the report in the middle of the year...

Reuters: Facing budget gaps, U.S. states shuffle tax codes: group

 

Weak Treasury Auctions Raise Worries About US Debt Burden

The U.S. Treasury sold $39 billion in five-year debt Wednesday in an auction that drew poor demand, raising worries over the cost of financing the government's burgeoning budget deficit.

It was the second lackluster showing in as many days, convincing analysts that the stellar results of debt auctions just a few weeks ago were a fluke and that Thursday's $28 billion seven-year offering could suffer a similar fate...

CNBC: Weak Treasury Auctions Raise Worries About US Debt Burden

 

Desperate state may sell Capitol buildings, others

Under GOP plan, government would pay to lease back most of the sites - Call it a sign of desperate times: Legislators are considering selling the House and Senate buildings where they've conducted state business for more than 50 years.

Dozens of other state properties also may be sold as the state government faces its worst financial crisis in a generation, if not ever... The complex financial transaction would allow government services to continue without interruption while giving the state a fast infusion of as much as $735 million...

AZ Central: Desperate state may sell Capitol buildings, others

 

Need Expert Advice for your 401k? The 401k Doctor may have the presciption for $99.

"Although most group retirement plans offer web based advice or (rarely) a quick consultation when you first enroll, most 401k and 403b investors feel confused, ill informed, uneducated and well…kind of paralyzed when it comes to their retirement plan."

...Why are so many asking for help? "Because there isn't any" states Mr. Latour who recently started "The 401k Doctor" and "The Annuity Doctor" which provide customized, comprehensive reviews and advice for individuals contributing to a 401k, 403b annuity or other group retirement plan for a small fee...

PRWeb: Need Expert Advice for your 401k? The 401k Doctor may have the presciption

 

Innovative Concept Targets Active Baby-Boomer Retirees

Oceanic Retirement Communities of America (ORCA) has started taking reservations for a program that will allow seniors to own a condo on a private residential cruise ship that also provides both the independent and assisted living accommodations typically found in land-based facilities.

"People retire to Florida for three things mainly � warm sunshine, golf, and the water," says Mel Medina, president of ORCA. "This is a unique package that provides for all that, plus a wellness capability..."

NREI Online: Innovative Concept Targets Active Baby-Boomer Retirees

 

Will Taxpayers Get Their Money’s Worth at Hartford or Lincoln National?

It may be too early to tell, but the just released second quarter earnings for The Hartford and Lincoln National, two insurers that grabbed federal TARP money, aren’t a ringing endorsement for the program. But take heart, it could have been even worse if taxpayers didn’t foot the bill.

The Hartford, based in the Connecticut city of the same name, reported a loss of $15 million or 6 cents a The Hartfordshare. In fact, several comparisons at the life and property insurer were marked “NM” or “not meaningful” because they were so far below last year’s numbers.

Philadelphia-based Lincoln National, a life insurer that focuses on retirement plans and annuities, fared even worse. It reported a net loss of $161 million or 62 cents a share...

BNet: Will Taxpayers Get Their Money’s Worth at Hartford or Lincoln National?

Wednesday, July 29, 2009

 

Promises in Peril When Insurers Play Hardball

As people dig deeper into their pockets to weather the recession, many are turning to their life insurance and annuity contracts only to discover "gotcha" clauses that are the envy of the credit card industry.

Promises in Peril When Insurers Play Hardball
Source: Forbes

 

Variable Annuities' Hedging Programs Support 94% of Guarantees

Between November and March, hedging programs at variable annuity firms supported 94% of their guarantees, up from 93% in the prior period, Milliman said.

Given the favorable experience of hedging programs, many life insurers have expanded their hedging programs to increase the security of their capital base.

Variable Annuities' Hedging Programs Support 94% of Guarantees
Source: Financial-Planning

 

Study Reveals Many Business Owners Have No Plan for Retirement

New research shows American business owners focus on the present with no long-term plan to exit or transition their business. The Principal Financial Group® surveyed business owners about their priorities during the current economic recession.

Study Reveals Many Business Owners Have No Plan for Retirement
Source: MSN Money Central

 

Younger Generations Ignored by Insurance Industry

Your age may determine how much insurance companies spend trying to get you onboard. New research from Mintel Comperemedia, a service that provides direct marketing competitive intelligence, shows health and life insurers pay much more attention to Baby Boomers than they do to Generation X and Generation Y.

Younger Generations Ignored by Insurance Industry
Source: Insurance News Net

 

Syntax Error? Life Insurers and Earnings

A remarkable thing about second-quarter earnings reports coming from big life insurers is this: Analysts actually are talking about earnings.

Not that red ink will fade entirely, given continuing realized investment-portfolio losses. But since the world turned upside down last summer, these are the first quarterly results where the focus won't be entirely on capital cushions and cash hoards. Some insurers are expected to post modest net income...

WSJ: Syntax Error? Life Insurers and Earnings (Subscription required)

 

Bernanke’s Assets Tumbled as Much as 29% as U.S. Stocks Fell

Federal Reserve Chairman Ben S. Bernanke’s assets tumbled by as much as 29 percent last year as declining stocks eroded the value of his annuities and other investments, according to his annual financial disclosure forms... The filings, released by the Fed yesterday, show Bernanke and his family owned $852,000 to $1.9 million in financial assets in 2008, down from $1.2 million to $2.5 million in 2007...

Bloomberg: Bernanke’s Assets Tumbled as Much as 29% as U.S. Stocks Fell

 

Wary Investors Are Seeking Out Objective Voices

Independent Advisers Are In Demand, but Picking One Means Homework - In the aftermath of the financial-market crisis, investors are leaving Wall Street to sign on with independent investment advisers.

Last year, registered investment advisers brought more than $108 billion of net new assets into the three largest custodians, according to Charles Schwab Corp., which holds roughly $500 billion in assets for such advisers. By contrast, the four major Wall Street brokerage firms saw an outflow of $8 billion in 2008.

Investors seeking to repair their damaged nest eggs say the chief lure of independent advisers is more-objective guidance...

WSJ: Wary Investors Are Seeking Out Objective Voices

 

Ohio homeowners, car insurance rates rising

The Ohio Department of Insurance says rates for homeowners coverage rose 6.9 percent in the state last year and a likely reason is Hurricane Ike... The storm's remnants battered Ohio in fall, resulting in a torrent of claims that officials say helped to drive up premiums...

Ohio rates for auto insurance also increased in 2008, though by a more modest 0.8 percent...

Newsday: Ohio homeowners, car insurance rates rising

 

AIG Sells Insurance Financing Unit for $679.5 Million

American International Group Inc., the insurer bailed out by the U.S., sold a business that makes loans to wealthy life insurance buyers for about $679.5 million.

AIG sold a majority of the so-called premium finance business held by AIG Credit Corp. and A.I. Credit Consumer Discount Co. to Wintrust Financial Corp., the New York-based insurer said today in a statement. Wintrust, based in Lake Forest, Illinois, may buy additional assets for $61.2 million, the statement said...

Bloomberg: AIG Sells Insurance Financing Unit for $679.5 Million

 

Big Employers Could End Up Paying "Cadillac" Tax

As Congress contemplates taxing insurers for gold-plated health benefits to pay for a health overhaul, it might catch another group in its net: employers who "self-insure"—or pay for their workers' health bills on their own... The Senate Finance Committee is considering a proposal by Sen. John Kerry, D-Mass., that would impose an excise tax on insurance companies' so-called "Cadillac plans." ...But it's also likely to affect the more than half of covered workers who are insured directly by their employers, rather than by private insurers. In those cases, businesses that "self-insure" take on the risk of providing insurance to employees and pay for health services directly...

Kaiser: Big Employers Could End Up Paying "Cadillac" Tax

Tuesday, July 28, 2009

 

AIG Sells Life Insurance Premiums Finance Business

Insurer American International Group Inc. said on Tuesday that it closed the sale of its life insurance premium finance business for $679.5 million in cash.

AIG sold a majority of the U.S. life insurance premium finance portfolio of AIG Credit Corp. and A.I. Credit Consumer Discount Co. to First Insurance Funding Corp., a subsidiary of Wintrust Financial Corp. of Lake Forest, Ill.

AIG Sells Life Insurance Premiums Finance Business
Source: Google News/Associated Press

 

Lincoln National Network Adds DSE Capital Management

Lincoln Financial Network (LFN), the marketing name for the retail sales and financial planning affiliates of Lincoln Financial Group, announced today the addition of DSE Capital Management, LLC.

Lincoln National Network Adds DSE Capital Management
Source: Yahoo! Finance

 

National Life Group Insurance Companies Enhance Indexed Universal Life Portfolio for Small Business Owners

National Life Insurance Company (NLIC) and Life Insurance Company of the Southwest (LSW), members of National Life Group, are pleased to announce that their complete Indexed Universal Life portfolio is now available in Qualified Plans allowing even more access to the small business owner market.

In addition, National Life Group now has a product for the Section 79 market in the state of New York. NLIC’s Ultra Select is the only indexed universal life product offered in this state that the company is aware of for Section 79 plans. For non-New York, National Life Group also offers LSW's SecurePlus Advantage 79 as a product option for those seeking a policy to meet their clients’ needs.

National Life Group Insurance Companies Enhance Indexed Universal Life Portfolio for Small Business Owners
Source: Insurance News Net

 

Re-Thinking Fixed Index Annuities

Fixed index annuities are terrific products. The potential for market-linked returns, coupled with principal protection, form the basis for a powerful set of features and benefits. The market has responded -- sales of FIAs have grown to more than $25 billion per year since their creation in 1995. But long-time producers of FIAs will recall that the product has always had its detractors and that the FIA industry has seen its fair share of bad press. Some of that criticism was deserved, but much of it has been due to fundamental misunderstandings related to how the product works and what it is designed to do. Moreover, the regulatory environment for FIA sales has become increasingly challenging since the NASD's Notice to Members 05-50 in August 2005 (the NASD is now FINRA), which required that member firms put special procedures in place concerning FIA sales, and the Securities and Exchange Commission's recent enactment of Rule 151A, which treats FIAs as securities, rather than as annuity contracts for purposes of securities regulation and producer licensing.

Re-Thinking Fixed Index Annuities
Source: Producers Web

 

AIG Unit Keeps $2.4 Billion From Sales as U.S. Waits

American International Group Inc., the insurer dismantling itself to repay U.S. loans, used $2.4 billion from asset sales to shore up a property-casualty unit instead of paying down its government credit line...

Bloomberg: AIG Unit Keeps $2.4 Billion From Sales as U.S. Waits

 

Michael Jackson aide 'stole singer's life insurance'

Michael Jackson's children could miss out on a $20 million life insurance payout – because an aide allowed the policy to lapse.

Michael Jackson was $400m in debt when he died last month... The King of Pop's family are planning legal action against the assistant who they reportedly believe kept the cash that had been put aside for insurance... Dr Steven Hoefflin, the plastic surgeon who became one of Jackson's closest friends, said that the affair highlighted the "deception and incompetence" of the hangers-on who surrounded the singer in his final days...

Telegraph: Michael Jackson aide 'stole singer's life insurance'

 

American General Life Companies launches Income Advantage Suite

American General Life Companies (American General) announced today the introduction of Income Advantage Suite, a custom label suite of products... designed in conjunction with and for exclusive distribution by HBW Insurance & Financial Services, Inc.®, a national financial services marketing organization dedicated to serving the needs of middle Americans.

...The life insurance product within the Income Advantage Suite pays a lump sum at death, which can be used to meet immediate family needs. An optional rider pays a guaranteed monthly income for up to 40 years to help the insured’s family maintain its standard of living. If the rider is selected, the benefit will be paid in addition to the lump sum benefit paid by the base life insurance policy...

INN: American General Life Companies launches Income Advantage Suite

 

California Foreclosures > National New Home Sales

The Big Picture's quote of the day:

“National New Home Sales, on a monthly basis, don’t even add up to half of the total foreclosure activity in California alone in a single month...”

EconomPic: California Foreclosures > National New Home Sales

 

The Florida CRE Implosion Visualized

Zero Hedge: The Florida CRE Implosion Visualized

 

Moody's Says Risk Governance at Many Big Banks Still Lacking

In a Special Comment, Moody’s said there is significant room for improvement in the risk governance of many large banks and added that it will be looking closely at the issue in determining bank credit ratings. Moody’s singled out JP Morgan Chase (JPM), Macquarie and Santander (STD) as exceptions, with all three banks having a powerful Chief Risk Officer reporting to the CEO and the Board...

Seeking Alpha: Moody's Says Risk Governance at Many Big Banks Still Lacking

 

My Ratings of California's Bonds

BBR's (Bapcha's Bond Ratings) CA Bond Ratings looking forward twelve months: 100/100. We expect CA to substantially meet all of its fiscal obligations by doing whatever it takes to keep their ratings... BBR's CA Bond Ratings looking forward five years: 95/100. This could change depending on the economy of course. We expect California to meet its fiscal obligations. However, there is a 5% chance that California could delay payments on its bonds by more than a month in the next five years...

Seeking Alpha: My Ratings of California's Bonds

 

Homes Sales Up 11%, and Down 21%

Did new-home sales really surge in June? No. But you could get that impression, as articles emphasize that sales were up 11 percent from May, the biggest gain in eight years...

That calculation is based on seasonally adjusted annual rates, which went from a rate of 346,000 in May to 384,000 in June, for the highest rate since November... In actual sales, the preliminary estimate is that 36,000 homes were sold, up 3,000 from May but down 9,000 from last June... To put it another way, this was the second-worst June since they began counting new-home sales in 1963...

NYT Blogs: Homes Sales Up 11%, and Down 21%

 

977,000 Mortgages in California are Toxic Waste

With any more spinning we would be in a financial carousel. New home sales data was released on Monday and showed a “whopping” increase in sales. This is the primary headline on all mainstream reports. Little is mentioned that the median price of a new home fell to $206,200 in June from $219,000 in May (small caveat). A drop of over $13,000 in one month apparently is not important enough to discuss...

...The increase in sales is good but is largely being driven by massive price discounts and foreclosures which dominate in many markets including California...

Dr. Housing Bubble: 977,000 Mortgages in California are Toxic Waste

 

Banks set quarterly record with $734.5 million in first-quarter annuity sales

Income from bank holding companies’ sales of annuities rose 12.4%, to $734.5 million, in the first quarter of this year, setting a quarterly record... The quarterly increase was 12.1%, according to the Michael White-American Bankers Insurance Association Bank Annuity Fee Income Report, which pulls data from all 7,447 commercial and FDIC-supervised banks and 940 large top-tier bank holding companies...

IFA Web News: Banks set quarterly record with $734.5 million in first-quarter annuity sales

 

Brooks named chairman of NAIC’s life and annuities committee

Kermitt J. Brooks, acting insurance superintendent for New York, today was named the chairman of the National Association of Insurance Commissioners’ life and annuities committee.

He replaces Eric R. Dinallo, who left his post as lead insurance regulator in New York and as chairman of the committee to take a teaching post at New York University...

Investment News: Brooks named chairman of NAIC’s life and annuities committee

 

The Hartford Has Cut Nearly 270 Jobs In Investment Products Division Nationwide

The Hartford has cut nearly 270 jobs in its investment products division nationwide, reflecting a slowdown in variable annuity sales and the company's decision to shrink the problematic business... The Courant reported in late June that The Hartford had already cut 475 jobs in Connecticut since late 2008. More layoffs at the company are expected. As of late June, The Hartford had roughly 12,000 Connecticut employees...

...The company has been laying off employees as part of efforts to reduce annual expenses by $250 million a year by the end of this year...

Trading Markets: The Hartford Has Cut Nearly 270 Jobs In Investment Products Division Nationwide

Monday, July 27, 2009

 

New Minnesota Rules for Soldier Insurance Sales

The rules stem from a 2006 federal law. Congress ordered states to take steps to protect U.S. Armed Forces members from abusive and misleading sales tactics for annuities, health policies, life insurance and prearranged funeral contracts.

New Minnesota Rules for Soldier Insurance Sales
Source: WCCO

 

"ING For Life" Aims to Educate Consumers, Deliver Qualified Middle Market Leads

The ING Life Companies have unveiled a new, interactive online tool that aims to make it easier for American consumers to learn about life insurance. Dubbed ING for LifeSM, the online tool walks consumers through an education process to help them determine the type of life insurance product and estimated amount of life insurance that best fits their personal situation. After completing the research and education process, the site offers users the opportunity to move to the buying process.

"ING For Life" Aims to Educate Consumers, Deliver Qualified Middle Market Leads
Source: Life Insurance Selling

 

Boosting Financial Confidence in the Golden Years

During the best of times, aging presents its own set of challenging circumstances. Add the severity of the recent wealth destruction associated with the stock and real estate market corrections and the result is an environment capable of shaking the financial security and peace of mind of the most optimistic among us. Those living on fixed incomes and reduced savings are not immune to the feelings of fear and uncertainty. In fact, they are the most vulnerable to economic shocks and can least afford to make mistakes in the aftermath when confronting the challenges they pose.

Boosting Financial Confidence in the Golden Years
Source: PR Web

 

Safeco Fined $434,000 For Insurance Violations

State regulators have fined five Safeco companies a total of $434,000 for charging customers the wrong rates, improperly canceling customers, and using unlicensed adjusters and agents who weren't appointed to sell for the insurer.

Safeco Fined $434,000 For Insurance Violations
Source: Insurance News Net

 

Bernanke Had to "Hold His Nose" Over Bailouts

Federal Reserve Chairman Ben Bernanke said Sunday that he had to "hold my nose" over last year's taxpayer-financed bailouts of big financial companies but argued that the action had to be taken to avoid a major meltdown of the U.S. financial system and the broader economy.

Bernanke Had to "Hold His Nose" Over Bailouts
Source: USA Today

 

CBO deals new blow to health plan

For the second time this month, congressional budget analysts have dealt a blow to the Democrat's health reform efforts, this time by saying a plan touted by the White House as crucial to paying for the bill would actually save almost no money over 10 years...

Politico: CBO deals new blow to health plan

 

Investing in a sure thing: Life insurance

Selling life-insurance policies on the secondary market is an increasingly popular way for investors to capitalize on one of life's surest events: death... Investors, including some major players on Wall Street, buy the policies in bunches, pay the premiums and collect millions upon the death of the insured...

First introduced in the late 1990s, the life-settlement industry has swelled to at least a $12 billion market, according to Connecticut-based Conning Research & Consulting Inc...

AZ Central: Investing in a sure thing: Life insurance

 

Citi exec's pay package may spark gov't showdown

The hefty 2009 pay package of Andrew J. Hall, leader of Citigroup Inc.'s lucrative Phibro energy trading unit, may spark a showdown between the New York-based bank and government pay czar Kenneth Feinberg.

Hall's division generates a substantial chunk of Citigroup's profit, which the bank sorely needs to get back on its feet and eventually repay the $45 billion it has received in government aid... Hall's compensation is linked to Phibro's profits, but the size of his 2009 pay package, which The Wall Street Journal estimated Saturday may total $100 million, could fuel political and shareholder anger against Citi...

MyWay: Citi exec's pay package may spark gov't showdown

 

Not thinking long-term

Small-business owners are aware that their employees worry about long term care insurance, but the perceived cost of providing workers with that coverage turns employers off, according to data from John Hancock Financial Services Inc...

Investment News: Not thinking long-term

 

Big on life insurance

The Life and Health Insurance Foundation for Education has chosen prime-time dreamboat Chris Noth as its national spokesman for Life Insurance Awareness Month in September... He will participate in the Arlington, Va.-based non-profit group's campaign to raise public awareness of the importance of having life insurance...

Investment News: Big on life insurance

 

Reborn NAVA will focus on advisers and consumers

In a dramatic re-branding, NAVA Inc., the trade group of variable annuity providers, last week changed its name to the Insured Retirement Institute and its focus to serving “the insured-retirement-strategies industry and consumers who rely on those guarantees...”

Investment News: Reborn NAVA will focus on advisers and consumers

 

Class Status Denied In Suit Over Midland Annuities

A federal judge has declined to certify a class of fixed indexed annuity investors in a lawsuit alleging that Midland National Life Insurance Co. breached its contracts with certain annuity buyers by incorrectly determining index values used to calculate a portion of the proceeds...

Law360: Class Status Denied In Suit Over Midland Annuities (Subscription required)

 

MetLife Launches Lower-cost Variable Annuity

New product includes immediate lifetime withdrawals, diversified and professionally managed investments

MetLife has launched Simple Solutions Variable Annuity (Simple Solutions), designed primarily for individuals who are nearing or in retirement. MetLife has said that Simple Solutions addresses both the retirement income and safety considerations that motivate many of today’s retirees and soon-to-be retirees, aged 60-80...

BBR: MetLife Launches Lower-cost Variable Annuity

 

Chubb Gains After Beating Estimates, Mocking Rivals

Chubb Corp., the insurer of high-end homes and corporate boards, advanced the most in four months after second-quarter profit beat analysts’ estimates and the company raised its 2009 forecast... Shares gained $2.76, or 6.5 percent, to $45.37 at 4:02 p.m... Net income... rose 17 percent to $551 million, and profit excluding investment results topped an average estimate of analysts by 16 percent. [COO] John Degnan said Chubb is better positioned to win new business than rivals that needed U.S. aid to survive... “If consumers are unlikely to buy a car built by the government, why on earth would they want to buy an insurance policy underwritten and adjusted by folks who act more like bureaucrats than business people?” Degnan asked yesterday...

Bloomberg: Chubb Gains After Beating Estimates, Mocking Rivals

 

High-Frequency Trading - My View

Senator Schumer apparently believes this is an unfair practice, and I agree...

Denninger: High-Frequency Trading - My View

 

SEC Proposes More Rules For Advisors

The Securities and Exchange Commission is proposing new rules aimed at stopping "pay to play" practices by investment advisors who seek to manage money for government pension and 529 plans...

FA Mag: SEC Proposes More Rules For Advisors

 

A look back at Paulson’s conflicted interests

When Hank Paulson agreed to become Treasury Secretary in May of 2006, he found himself in a bit of a pickle. You see, he owned about $500 million in Goldman Sachs stock, from his days as CEO of the firm. So, to avoid any appearance of a conflict of interest, government rules forced Mr. Paulson to sell all that stock. Phew! Looks like we dodged a bullet there...

Bearish News: A look back at Paulson’s conflicted interests

Friday, July 24, 2009

 

Innovative New Universal Life Insurance Rider for Substandard Clients Now Available from Protective Life and West Coast Life

Protective Life Insurance Company and West Coast Life Insurance Company announced the release of a new innovative universal life insurance rider designed to encourage individuals to improve their health through key lifestyle changes, with the goal of outliving their estimated life expectancies.

Innovative New Universal Life Insurance Rider for Substandard Clients Now Available from Protective Life and West Coast Life
Source: Yahoo! Finance

 

Are Baby Boomers Getting More Attention Than They Deserve?

Are baby boomers getting more attention than they deserve? Before I answer the question, here are some facts on the biggest population bubble in our nation's history:

1. An estimated 78.2 million baby boomers were born between 1946 and 1964

2. Almost 8,000 people turn 60 each day

3. Fifty-nine million boomers will be living in 2030. During that decade year, boomers will be between ages 66 and 84 -- 54.9 percent will be female.

Are Baby Boomers Getting More Attention Than They Deserve?
Source: Producers Web

 

The Leaner Baby Boomer Economy

When 79 million people—nearly a third of Americans—start spending less and saving more, you know it won't be pretty. According to consulting firm McKinsey, boomers' conversion to thrift could stifle the economy's hoped-for rebound and knock U.S. growth down from the 3.2% it has averaged since 1965 to 2.4% over the next 30 years. "We would have gotten here in 5 or 10 years as boomers retire, but we pushed it up," says Michael Sinoway, managing director of consulting firm AlixPartners. "Now [companies] are scared things won't come back." And that's why everyone from Mercedes to Nordstrom to designer Vera Wang are scrambling to remake themselves for the Incredible Shrinking Boomer Economy.

The Leaner Baby Boomer Economy
Source: Business Week

 

Rancho Park and the zero down $775,000 2 Bedroom Home

There is something surreal in the air in California. With the warm summer weather and gorgeous sunsets it is hard to come to terms that the state has a $26 billion budget deficit that will be solved with massive cuts and borrowing. The state is issuing IOUs which should be a warning sign to most that the state isn’t flush with excess revenues. Yet for some reason, there is this belief that we will once be back to the bubble heyday...

Dr. Housing Bubble: Rancho Park and the zero down $775,000 2 Bedroom Home

 

Bloomberg's Pimm Fox On High Frequency Trading

First Goldman, now High Frequency Trading... The media onslaught is converging...

Zero Hedge: Bloomberg's Pimm Fox On High Frequency Trading

 

High Frequency Trading Is A Scam

The NY Times has blown the cover off the dark art known as "HFT", or "High-Frequency Trading", perhaps without knowing it.
It was July 15, and Intel, the computer chip giant, had reporting robust earnings the night before. Some investors, smelling opportunity, set out to buy shares in the semiconductor company Broadcom. (Their activities were described by an investor at a major Wall Street firm who spoke on the condition of anonymity to protect his job.) The slower traders faced a quandary: If they sought to buy a large number of shares at once, they would tip their hand and risk driving up Broadcom’s price. So, as is often the case on Wall Street, they divided their orders into dozens of small batches, hoping to cover their tracks. One second after the market opened, shares of Broadcom started changing hands at $26.20...

Market Ticker: High Frequency Trading Is A Scam

 

Conning: Life Insurers Prepared for Optional Federal Charter Will Enjoy Competitive Advantage

A new Conning Research Study, "State Differences in Life Insurance Marketing: Considerations of a Federal Level Playing Field," finds that state-based life insurance distribution strategies may no longer be effective in the future, owing to the impact of a recession and the potential promulgation of a single regulatory system for some portion of the life insurance market, in the event that an optional federal charter (OFC) law will be passed...

I&T: Conning: Life Insurers Prepared for Optional Federal Charter Will Enjoy Competitive Advantage

 

Swiss Life's Rating Cut By Fitch Bodes Ill For Peers

Rating agency Fitch on Thursday cut Swiss Life Holding AG's (SLHN.VX) credit grade as concerns increase about the deteriorating business environment and weak financial markets... This, analysts say, could bode poorly for other life insurers that are also struggling with the recession and low interest rates, which can cut deeply into both policy sales and financial returns.

Fitch cut Swiss Life's credit rating to Triple-B from Triple-B-plus and put the outlook on the insurer's rating at negative due to "unfavorable interest-rate movements and the potential for the economic downturn..."

WSJ: Swiss Life's Rating Cut By Fitch Bodes Ill For Peers (Subscription required)

 

The Future of Insurance Sales and Distribution

Recently, one of my children graduated from university, which led to one of those typical (father to son) financial responsibility discussions. In this case, we were talking about the need for him to purchase his own automobile insurance...

Of course, I gave him the name and number of "our" insurance agent, to which he gave me "that look" (I'm sure every parent can relate) and said (very emphatically, I might add), "Dad, I'm not calling an insurance agent. I'll just take care of it my way." He then took out his phone (but, of course, not to make a call), to Tweet that he wanted to purchase insurance for his automobile. Within a matter of minutes, he then proudly displayed to me the fact that he had a friend request from a rather progressive insurance company for his Facebook account and upon accepting that "friend" was able to easily link to an online site to purchase insurance...

I&T: The Future of Insurance Sales and Distribution

 

Inflation, deflation, stagflation or hyperinflation?

...traditional wisdom says that some investments - like real estate, stocks and commodities - do well during inflationary peiords, while cash and bonds do well during periods of deflation...

Some experts say we're going to have inflation very soon . . . maybe even hyperinflation. Others say we're going to have extended deflation. Or stagflation.

Who's right?

Examiner: Inflation, deflation, stagflation or hyperinflation?

 

When Deflation Isn’t Deflation

The most common argument I run into when I tell people that hyperinflation is looming on the horizon revolves around the current “deflationary” period. People have a hard time seeing the U.S. turning into the next Zimbabwe when we’re supposedly not experiencing any inflation at all, let alone hyperinflation. The problem lies not in the fact that we’re actually experiencing deflation and that we’ll face a fundamental, 180 degree reversal in direction in the next few years; the issue is actually found in an institutional misunderstanding of macro economics and the role it plays in defining deflation...

Market Oracle: When Deflation Isn’t Deflation

 

When the Misery Index Is Too Upbeat

The Huffington Post has launched a new monthly feature it’s calling the “Real Misery Index,” which it says offers a more accurate snapshot of the economic struggles Americans face today than the original one...

Developed in the 1970s by Arthur Okun, a Yale and Brookings Institution economist, the Misery Index is calculated by adding the unemployment rate and inflation rate...

WSJ: When the Misery Index Is Too Upbeat

 

Hartford Cuts Nearly 270 Jobs At Investment-Products Unit

Hartford Financial Services Inc. (HIG) cut nearly 270 positions from its investment-products division in recent weeks due to slowing business... The Connecticut-based insurer made the cuts in "the last weeks," due to reduced business in its investment-products business, which includes its mutual fund and annuities units, a spokesman said. A variety of job functions, such as wholesaling, were cut, he said...

CNN Money: Hartford Cuts Nearly 270 Jobs At Investment-Products Unit

 

Five Broker-Dealers Fined $1.65 Million For Sales Issues

The Financial Industry Regulatory Authority fined five bank broker-dealers a combined $1.65 million for deficient supervision and procedures related to the sale of variable annuities, mutual funds and unit investment trusts... The biggest fine was $450,000 for IFMG Securities, which was purchased in 2007 by LPL Financial, a broker/dealer which supports more than 12,000 financial advisers. Others fined included McDonald Investments, now part of KeyCorp (KEY), which received a $425,000 fine. Also sanctioned were Wells Fargo & Co. (WFC) with a $275,000 fine while PNC Financial Services Group Inc. (PNC) and JPMorgan Chase & Co. (JPM) were each fined $250,000...

CNN Money: Five Broker-Dealers Fined $1.65 Million For Sales Issues

 

AXA Equitable Celebrates 150th Anniversary of Founding

AXA Equitable Life Insurance Company announced today that Sunday, July 26, 2009, will mark the organization's 150th anniversary. Founded in 1859 as The Equitable Life Assurance Society of the United States (The Equitable), the company began in a $75 dollar-a-month rented office at 98 Broadway in New York City. The Equitable demutualized in 1992 in what was the largest insurance company stock conversion at the time. The company began its partnership with AXA Group that same year, when the Paris-based global insurer became the company's largest single investor. AXA Group bought the remaining shares of The Equitable in 2000, giving birth to AXA Equitable...

PR Newswire: AXA Equitable Celebrates 150th Anniversary of Founding

Thursday, July 23, 2009

 

Economic Downturn May Favor Leaner, More Affordable Long-Term Care Insurance Products

Leaner, more affordable long-term care insurance (LTCi) products will become more popular as a result of the recent economic downturn, according to Malcolm Cheung, vice president, LTC Prudential.

Economic Downturn May Favor Leaner, More Affordable Long-Term Care Insurance Products
Source: Insurance News Net

 

Senior Workers Delay Retirement

Retirement dreams are quickly fading for thousands of older workers, as the severe market losses that ravaged once-healthy retirement accounts over the last year force many seniors to work longer.

Senior Workers Delay Retirement
Source: CNN Money

 

Online Scholarship Vote Highlights Need for Parents to Include Life Insurance in Their College-Funding Plans

Coming up with the money to pay for college is a challenge for most young people, but the task becomes even more daunting when a parent dies prematurely, especially if that person didn't have adequate life insurance coverage. With mom or dad no longer able to lend a hand, many young people often have no choice but to set aside or postpone their dream of a college education. Evidence of this problem is well documented in the thousands of submissions that the nonprofit LIFE Foundation receives each year through its LIFE Lessons Scholarship Program.

Online Scholarship Vote Highlights Need for Parents to Include Life Insurance in Their College-Funding Plans
Source: PR Newswire

 

Life Insurance 101: Do you own or rent in Seattle?

Having spent a large part of my financial services career working in the area of life insurance, I found it best to explain this financial tool by breaking it down into two main categories – owning and renting...

Examiner: Life Insurance 101: Do you own or rent in Seattle?

 

Treasuries Little Changed as Fed Prepares to Buy Bonds Today

Treasuries were little changed, halting yesterday’s decline, before the Federal Reserve buys bonds today as part of its plan to cap consumer borrowing costs... The central bank is scheduled to purchase Treasuries maturing from August 2026 to May 2039, according to its Web site, under a program to scoop up $300 billion of government securities over six months...

Bloomberg: Treasuries Little Changed as Fed Prepares to Buy Bonds Today

 

Burial insurance can take advantage of the poor

...when Arbee died in 2007 at 85, her two burial policies didn't cover even half of the $9,000 funeral - even though over the 28 years she had held those policies, Arbee paid more than $7,000 in premiums... ...Millions of such burial policies were sold over the years, mostly to poor people. A series of lawsuits in the past decade included one that resulted in a $214 million settlement to 9 million policy holders from two firms, including American General Life, the outfit that sold Arbee her policies...

SFGate: Burial insurance can take advantage of the poor

 

Introducing NetX360

...Technological innovations under way at Pershing today could propel the firm into a technology leadership role in both the broker-dealer and RIA custody spaces. These changes, spearheaded by Pershing's managing director and chief information officer Suresh Kumar, could, if successful, create the new model for broker-dealers and RIA custodians for years to come...

Financial Planning: Introducing NetX360

 

GE to End Government Loan Backing

General Electric Co., the largest user of a government program to guarantee corporate debt, said it had begun to wean itself from the federal assistance... GE, which tapped the Federal Deposit Insurance Corp. guarantees after credit markets seized up last fall, said it would stop using the guarantee on short-term loans known as commercial paper and would restrict its use of the guarantee for longer-term debt...

WSJ: GE to End Government Loan Backing

 

Delphi Gets $6.2 Billion Bailout of Pensions

The Pension Benefit Guaranty Corp. agreed to take on $6.2 billion in pension liabilities from bankrupt auto supplier Delphi Corp., putting in place a key piece in the bailout of the car industry but renewing pressure on a government agency facing huge burdens as more companies fail... The pension rescue is the PBGC's second-largest ever, ranked by dollars, after that of United Airlines in 2005, which totaled $7.5 billion. As a result, the government will take over payments for 70,000 workers and retirees that Delphi says it can't afford under its restructuring plan...

WSJ: Delphi Gets $6.2 Billion Bailout of Pensions

 

Annuity fee income hit high for bank holding companies in first quarter

Bank holding companies reaped a record $734.5 million in annuity fee income during the first quarter, according to data from Michael White Associates... the income that banks earned from annuity sales climbed 12.4% from $653.3 million a year earlier...

Investment News: Annuity fee income hit high for bank holding companies in first quarter

 

David Trahair's New Book 'Enough Bull' Is Bound to Make Waves

Toronto-chartered accountant David Trahair has a new book coming out in August: Enough Bull: How to Retire Well without the Stock Market, Mutual Funds or even an Investment Advisor. It should be another zinger, a frontal assault on cherished shibboleths in the personal finance and investing fields...

Seeking Alpha: David Trahair's New Book 'Enough Bull' Is Bound to Make Waves

 

Variable Annuity Investors Celebrate Guarantees

Say what you will about variable annuities; they returned about 6% or more for investors in 2008 when others saw 40% or more of their holdings wiped out, The Wall Street Journal reports. In fact, they were one of the best investments of the past decade, due to their minimum guarantees... All during the bull market of the 1990s, critics assailed insurers for selling variable annuities with additional guaranteed riders. However, these guaranteed minimum variable annuities appeared to be brilliant investments in last year’s massacre...

BIC: Variable Annuity Investors Celebrate Guarantees

Wednesday, July 22, 2009

 

CIT Hit With Interest Rate More Than 25 Times Libor

Pacific Investment Management Co., Centerbridge Partners LP and the four other bondholders that put up $2 billion in financing for CIT Group Inc. made an instant $100 million on an investment analysts say is almost risk free...

Bloomberg: CIT Hit With Interest Rate More Than 25 Times Libor

 

Worst of the Worst in the Insurance Industry

What are your experiences with this bottom 10 list? - The American Association for Justice (AAJ), formerly known as the Association of Trial Lawyers in America, has released a report on "The Ten Worst Insurance Companies in America" detailing how some of the leading insurers "raise premiums, deny claims and refuse insurance to those who need it most." The report is based on review of court documents, Securities and Exchange Commission and Federal Bureau of Investigation records, state insurance department investigations and testimony/depositions by former insurance agents and adjustors, among other sources...

Dynamic Chiropractic: Worst of the Worst in the Insurance Industry

 

ING Creates Interactive Online Education Tool About Life Insurance

The ING Life Companies have unveiled a new, interactive online tool that aims to make it easier for American consumers to learn about life insurance. Dubbed ING for Life(SM), the online tool walks consumers through an education process to help them determine the type of life insurance product and estimated amount of life insurance that best fits their personal situation.

ING Creates Interactive Online Education Tool About Life Insurance
Source: PR Newswire

 

Life Insurance Illustrations Fast Tracked by Pacific Life's Express Navigator

A new quick quote tool makes running life insurance illustrations easier and faster with Pacific Life’s Express Navigator. Available to financial professionals through the company’s life insurance professionals’ Web site, Lifeline.PacificLife.com.

Life Insurance Illustrations Fast Tracked by Pacific Life's Express Navigator
Source: Business Wire

 

Prudential Webinar: Strategies to Rebuild Retirement Savings

The webinar, the second in a series of real-time Internet-based forums, provided nearly 400 participants with a view into investors’ minds and offered ideas and strategies from experts at Prudential, JP Morgan, Wharton School of Business and Silverman Financial.

The free 60-minute webinar is now available for replay and, as downloadable podcasts, can be accessed online.

Prudential Webinar: Strategies to Rebuild Retirement Savings
Source: Yahoo! Finance

 

Bernanke: Economy better, but ...

Fed chairman says the economy is showing signs of stabilization, but added that the housing and labor markets are still not recovering.

...The head of the central bank, appearing before the House Financial Services Committee in his semi-annual testimony on the state of the economy, forecast a relatively sluggish recovery... Bernanke said the unemployment rate would be higher than preferred levels until at least 2012. But he added that steps taken by the Fed to pump money into the economy have started to pay benefits...

CNN Money: Bernanke: Economy better, but ...

 

5 Reasons to Fire Your Financial Advisor

In his 2005 letter to Berkshire’s shareholders, Warren Buffett tells a story about a fictional family named the “Gotrocks.” As the number of financial helpers they employ increases, the family’s net take from their investments decreases. How can you avoid becoming like the Gotrocks?

Hiring an investment advisor may be one of the most important financial decisions you ever make. Likewise, firing a dead beat advisor should share the same importance...

ETFguide: 5 Reasons to Fire Your Financial Advisor

 

Is The SLP The NYSE's Answer To Direct Edge?

There is a curious article in the latest edition of Traders Magazine. It is curious mostly because it was allowed to be published, as it definitively peels off the cover of what truly happens at the pantheon of stock exchanges, that dominated by a private club of select high frequency traders, who obtain better and faster pricing than everyone else, and where the group of "select few" is seemingly legally allowed and even encouraged to front-run the "every-one else" (you, dear reader, are most likely in the latter camp). If you ever wondered why HFT generates profits of over $20 billion a year, please read this article...

Zero Hedge: Is The SLP The NYSE's Answer To Direct Edge's "Advance Look" Enhanced Liquidity Provider Program?

 

NY Lawmaker Wants Rich Convicts To Pay For Their Own Incarceration

New York State Assemblyman Jim Tedicsco sees an injustice. The upstate Republican saw wealthy scammer Bernie Madoff convicted and sent to federal prison for 150 years the rest of his life at taxpayer expense. How fair is that? Why can't rich criminals pay their own way?

So, yesterday, Tedisco introduced a bill. The—what else could you call it?—"Madoff" bill would charge New York inmates for their imprisonment on a sliding scale...

Consumerist: NY Lawmaker Wants Rich Convicts To Pay For Their Own Incarceration

 

Bank Brokerage Prevails Despite Market

Despite difficult market conditions, bank brokerage managed to improve its profitability, averaging $35.29 per customer household in 2008, up from $30.88 per customer household in 2007, a 14% increase, according to Kehrer-LIMRA’s new 2008 Financial Institution Investment Program Benchmarking Survey.

“The industry has held up very well in the crisis compared to non-bank brokerage,” ” says Ken Kehrer, director of Kehrer-LIMRA and author of the study...

Financial Planning: Bank Brokerage Prevails Despite Market

 

Thanks to Guarantees, Variable Annuities Paid Even When Stocks Didn’t

One of the best investments of the past decade was one of the most derided: the variable annuity. But investors who want in on the action now are in for a shock, as the juiciest deals have disappeared from the market... Variable annuities, a tax-advantaged investment account that holds a type of mutual fund, are sold by insurers, and most offer some form of investment guarantee for an additional fee. For years, they were attacked for being too expensive. Why pay for a guarantee to protect against a stock-market decline, the argument went, when stocks continued their inexorable march upward?

WSJ: Long Derided, This Investment Now Looks Wise

 

US court orders SEC to reconsider annuity rule

A U.S. appeals court ordered the Securities and Exchange Commission to reconsider a rule it adopted in the final weeks of the Bush administration to expand scrutiny over annuities linked to equity indexes... [the] ruling issued on Tuesday that the SEC "failed to properly consider the effect of the rule upon efficiency, competition and capital formation..."

Reuters: US court orders SEC to reconsider annuity rule

 

S&P Restores Top-Ratings to Commercial-Mortgage Bonds

Standard & Poor’s backtracked on ratings cuts issued last week and raised the ranking on commercial mortgage-backed debt from three bonds sold in 2007... The securities, restored to top-ranked status, had been downgraded as recently as last week, making them ineligible for the Federal Reserve’s Term Asset-Backed Securities Loan Facility to jumpstart lending...

Bloomberg: S&P Restores Top-Ratings to Commercial-Mortgage Bonds

 

Investors See Safe Harbor in Swiss Franc Annuities

Despite a recent pact between Switzerland and the United States to share tax evasion information, Swiss franc fixed annuities have been attracting a lot of U.S. dollars of late. Sources estimate that Americans have been putting about $2 billion annually into the Swiss insurance instruments, due to the falling dollar, inflation fears and the need to protect assets from creditors.

It’s no wonder. While U.S. fixed deferred annuities yield about 2 percent to 3 percent, Swiss franc fixed annuities have generated a total return of more than 8.5 percent annually over the past five years, according to Swiss Guard International, a Zurich-based brokerage firm. Of course, this factors in currency appreciation against the U.S. dollar...

Registered Rep: Investors See Safe Harbor in Swiss Franc Annuities

Tuesday, July 21, 2009

 

CalPERS expected to report losing nearly one-quarter of investment portfolio

The estimated $56.8-billion drop at the U.S.' largest pension fund, the second annual loss in a row, would have a huge effect on what state and local governments must shell out to support retirees.

Reporting from Sacramento -- California's huge government pension fund is expected to report today a whopping annual loss of an estimated $56.8 billion, almost a quarter of its investment portfolio... The loss at the California Public Employees' Retirement System for the fiscal year ended June 30 is the second in a row for the country's largest fund. A year ago, CalPERS reported an $8.5-billion loss, as the severe recession began to take hold...

LA Times: CalPERS expected to report losing nearly one-quarter of investment portfolio

 

Americans Need a Safe Harbor to Weather Financial Storms

Retirement savers need access to safe investment options within defined contribution plans as underscored by a 2009 Prudential Financial research study on near-retirees and retirees. The study shows that:

- 30% of near-retirees have postponed their retirement due to the market decline;
- 30% of near-retirees have reallocated their 401(k) assets, with nine in 10 of this group moving into more conservative investments; and,
- More than 80% of near-retirees say they are more cautious and wish they had the option of better protecting their assets from market losses.

Americans Need a Safe Harbor to Weather Financial Storms
Source: Business Wire

 

Are Annuities Appropriate for Estate Planning?

If you have ever wondered if a deferred annuity could be used as an effective estate planning tool, here is an example of an efficient and often underutilized wealth transfer opportunity. IRS Private Letter Ruling 199905015 reaffirms the view that a Credit Shelter Trust (CST) can be funded with deferred annuities. This may be a valuable strategy that enables advisors to not only help their clients pass assets free of estate taxes, but to also allow the heirs that receive these assets to continue the tax deferral on any growth.

Are Annuities Appropriate for Estate Planning?
Source: Producers Web

 

Protective Life Introduces New Survivorship Term Product

...The Protective Survivorship Term product is a second-to-die term life insurance policy, insuring two lives under one policy, with the death benefit payable to the designated beneficiary following the surviving insured’s death. This product is primarily designed for estate planning needs and also works well for wealth preservation. The Protective Survivorship Term product can help offset the federal estate tax that would otherwise be payable at the death of the surviving spouse...

BusinessWire: Protective Life Introduces a New Survivorship Term Product

 

Canadian Banks Use Internet to Skirt Insurance Ban

Canadian banks, facing the biggest profit decline in seven years, are expanding their insurance businesses, using the Internet and stand-alone outlets to get around restrictions dating from at least 1923 on insurance sales in bank branches... Royal Bank of Canada, Bank of Montreal and other lenders are increasing sales online and making acquisitions to skirt the rules and take a bigger slice of the country’s C$115 billion ($104 billion) insurance market...

Bloomberg: Canadian Banks Use Internet to Skirt Insurance Ban

 

A.M. Best Special Report: Group Life Market: Marginal Growth and Intense Competition

According to a new A.M. Best Co. special report, overall, group life in-force market trends have remained relatively static in recent years. New business sales trends, however, have been very erratic both from carrier to carrier, and from year to year. Some competitors are becoming more aggressive in acquiring business, as they are more accepting of alternative plan designs and are providing more creative underwriting and longer rate guarantees...

• Based on initial year-end data, the amount of group life insurance issued decreased by approximately 3% in 2008, compared with 2007’s increase of almost 8%.
• The top 10 carriers continue to dominate the market, representing more than 70% of the total group life in force.
• Metropolitan Life and Prudential of America remain the top two group life insurance providers, together representing nearly 40% of the market.

BusinessWire: A.M. Best Special Report: Group Life Market: Marginal Growth and Intense Competition

 

Great American Insurance Named to Ward's 50 Top Performing Insurance Companies

Great American Insurance Group is pleased to announce that it has been identified as one of the 2009 Ward's 50® Top Performing Insurance Companies.

Annually, Ward Group analyzes the financial performance of over 3,100 property and casualty insurance companies domiciled in the United States and identifies the top performers in each segment to identify the Ward's 50 for the year. Each Ward's 50 company has passed all safety and consistency screens and achieved superior performance over the five years analyzed.

Great American Insurance Named to Ward's 50 Top Performing Insurance Companies
Source: Insurance News Net

 

Group Life Market: Marginal Growth and Intense Competition

According to a new A.M. Best Co. special report, overall, group life in-force market trends have remained relatively static in recent years. New business sales trends, however, have been very erratic both from carrier to carrier, and from year to year. Some competitors are becoming more aggressive in acquiring business, as they are more accepting of alternative plan designs and are providing more creative underwriting and longer rate guarantees. While the group life market has grown moderately, both organically and from consolidation in the past several years, the leading market share carriers remain largely the same.

Group Life Market: Marginal Growth and Intense Competition
Source: Business Wire

 

Innovations Ease Bite of Long-Term Care Costs

Insurers are rolling out new products that combine life insurance or annuities with long-term-care insurance, prompted by a new law that will soon make distributions from life insurance and annuities tax-free when used to pay nursing-home costs.

Innovations Ease Bite of Long-Term Care Costs
Source: Insurance News Net

 

MetLife Introduces Simple, Low-Cost Variable Annuity

MetLife announced today the launch of its Simple Solutions Variable Annuity (Simple Solutions) which is designed primarily for individuals who are nearing or in retirement. The product will be offered through banks, providing a new vehicle for financial advisors at those banks to help clients turn retirement assets into a stream of withdrawals they cannot outlive.

MetLife Introduces Simple, Low-Cost Variable Annuity
Source: Yahoo! Finance

 

Fear driving people to fixed annuities

One of the worst things you can do with your money right now is lock it up in an investment while the interest rates are so low. But that's exactly what a record number of people are doing as they drive fixed annuity sales to a record-breaking $35.6 billion, the highest ever, for three months ended March 31, according to Limra, the insurance consulting firm. That's a 74 percent jump in fixed annuity sales...

Daily Finance: Fear driving people to fixed annuities

 

Genworth Financial Launches Single Contract Income Solution

Genworth Life and Annuity Insurance Company (Genworth), a subsidiary of Genworth Financial, Inc. (NYSE: GNW) today announced the launch of RetireReady(SM) One, their newest variable annuity... For individuals and families, RetireReady One offers a basic death benefit... guaranteed income rider options are available for an additional cost and are designed to provide income certainty and predictability - a way to structure a personal pension-like program that is understandable and easy to track...

PR Newswire: Genworth Financial Launches Single Contract Income Solution

 

Great American Financial Resources and Securian/Minnesota Life Join Beacon Research AnnuityNexus Database

Beacon Research has added profiles to its AnnuityNexus database of fixed annuities from the companies of Great American Financial Resources, Inc. (NYSE:AFG), and Securian annuities issued by Minnesota Life... "With our web-based systems, GAFRI and Securian will make their product feature and rate information available to reps at banks, B-Ds and marketing organizations..."

Globe Newswire: Great American Financial Resources and Securian/Minnesota Life Join Beacon Research AnnuityNexus Database

Monday, July 20, 2009

 

Ernst & Young’s Maximum Pay for AIG Advice Swells

Ernst & Young LLP may earn as much as $60 million advising the Federal Reserve Bank of New York on the dismantling of American International Group Inc., an increase of 50 percent from the initial agreement... The accounting firm is billing discounted rates to the New York Fed, including $775 per hour for work done by partners or executive directors...

Bloomberg: Ernst & Young’s Maximum Pay for AIG Advice Swells

 

Bank of the West's Merger of Units Boosts Referrals

By consolidating its insurance, wealth and investment units, Bank of the West of San Francisco increased the rate of referrals from bankers in the past year... Richard Byrd, who heads the wealth, investment and insurance businesses, which are known collectively as the wealth management group, said the consolidation has created a broader range of client services and helped solve the problem of different units competing for referrals...

Financial Planning: Bank of the West's Merger of Units Boosts Referrals

 

Critical Illness Policies Gain Attention

Critical illness policies offer one way of filling gaps in medical coverage, and insurers say sales are starting to rise as weaknesses in the health care system get more attention... The policies have gaps of their own, and lots of critics. Still, the financial cushion they promise may be attractive for people with lots of income or assets at risk in a medical catastrophe... Critical illness policies offer lump-sum payments ranging from $5,000 to $500,000 upon the diagnosis of a serious illness or life-threatening condition...

WSJ: Critical Illness Policies Gain Attention (Subscription required)

 

Fund's hyperinflation hedge is diversifying against dollar

With the federal government apparently making a desperate attempt to set a record for printing and spending money, it's easy to understand why some people fear the dollar is headed toward a crippling fall...

Investment News: Fund's hyperinflation hedge is diversifying against dollar

 

How to Turn a Recession into a Depression

Four federal economic policies transformed the Hoover recession into the Great Depression: higher tariffs, stronger unions, higher marginal tax rates, and a lower money supply. President Obama, unfortunately, has endorsed some variant of the first three of these policies, and he will face a critical choice on monetary policy in a year or so...

Cato: How to Turn a Recession into a Depression (PDF)

 

A turning point in the financial crisis

If CIT really has dodged a bullet here and avoided bankruptcy, that’s spectacularly good news. I’m assuming here that a deal has done, based on nothing but a single one-line headline on WSJ.com; these things tend to be fraught and fractious, however, so I’m not counting my chickens just yet. But if CIT has really avoided bankruptcy, that’s a major turning point in the history of the financial crisis...

Reuters (Felix Salmon): A turning point in the financial crisis

 

New Portal For CPAs Who Want To Be Financial Planners

The American Institute of Certified Public Accountants (AICPA) has created a portal for CPAs to help them become personal financial planners... The PFP Practice Portal (pfp.aicpa.org/practiceportal) provides links for a host of topics ranging from regulatory issues and technology to practice management and networking groups...

FA Mag: New Portal For CPAs Who Want To Be Financial Planners

 

Morgan Stanley Gains as Fed Adviser on AIG Sales

Morgan Stanley, the world’s third- biggest stock underwriter, stands to reap tens of millions of dollars for advising the Federal Reserve Bank of New York on the dismantling of American International Group Inc.

Morgan Stanley is guaranteed a role as global coordinator in any initial public offering of AIG units...

Bloomberg: Morgan Stanley Gains as Fed Adviser on AIG Sales

 

Cities fare better in new U.S. wealth index

The number of extremely rich people living in the United States declined by 18.5 percent in 2008 as the economic crisis took hold, according to a new report... Capgemini, which provides consulting, technology and outsourcing services, released its new annual Metro Wealth Index this week. It measured the number of people with more than $1 million dollars in investable assets excluding primary residence and showed that big cities fared better than the nation as a whole...

Reuters: Cities fare better in new U.S. wealth index

 

Leaks Grow in World of Blogs

The recession, combined with new technology, is sparking new skirmishes between employers and employees over leaks of sensitive or confidential information... In recent months, Yahoo Inc. and several big law firms have been surprised by disclosures of pending layoffs or internal memos detailing cost cuts on blogs or Internet news sites. In Yahoo's case, its instructions to managers conducting layoffs -- "15 minutes maximum," "don't engage in small talk" -- were published by the blog Valleywag.com...

WSJ: Leaks Grow in World of Blogs

 

Bondholders Plan CIT Rescue

CIT Group Inc. appeared to have reached an agreement securing $3 billion in last-minute rescue financing from its bondholders Sunday in a deal that should keep the struggling lender out of bankruptcy court, people familiar with the matter say... The deal, which was reviewed by CIT's board Sunday night, charges CIT high interest rates, and it doesn't permanently fix the company's long-term financing needs, say people involved in the transaction...

WSJ: Bondholders Plan CIT Rescue (Subscription required)

 

White House putting off release of budget update

The White House is being forced to acknowledge the wide gap between its once-upbeat predictions about the economy and today's bleak landscape.

The administration's annual midsummer budget update is sure to show higher deficits and unemployment and slower growth than projected in President Barack Obama's budget in February and update in May, and that could complicate his efforts to get his signature health care and global-warming proposals through Congress...

MyWay: White House putting off release of budget update

 

Texas mulls rule to enhance disclosures for annuities

The Texas Department of Insurance is mulling a regulation that would mandate disclosure for annuity buyers, but advisers are questioning how effective it would prove to be... Among the details that insurers would have to reveal to consumers is the initial crediting rate for the purchased annuity, as well as a list of a specific dollar amount or percentage regarding charges and fees...

Investment News: Texas mulls rule to enhance disclosures for annuities

 

Desperate investors are locking in annuities at low rates

Low savings rates and a rotten stock market sent record numbers of savers to lock in current rates with fixed annuities — precisely when rates were near rock-bottom... Fixed annuity sales jumped 74%, to $35.6 billion, the highest ever, for the three months ended March 31, the most recent data available from insurance consulting firm Limra...

USA Today: Desperate investors are locking in annuities at low rates

 

LexisNexis Hack Might be Mafia Work

Business information provider LexisNexis is alerting customers that their personal information may have been obtained by a Mafia-connected criminal group... LexisNexis claimed that company employee Lee Klein abused his access to a software product of Seisent, a unit of LexisNexis.

According to the grand jury indictment (available here in PDF format), filed in the U.S. District Court of Southern Florida in Fort Lauderdale, Klein acted as part of a team led by Thomas Fiore, an associate of the Bonanno crime family...

eSecurityPlanet: LexisNexis Hack Might be Mafia Work

Saturday, July 18, 2009

 

Unemployment map of England

Guardian: Unemployment map of England

 

California's budget gap won't close for long

Even if California Governor Arnold Schwarzenegger and top lawmakers quickly plug a $26.3 billion deficit to balance the state's budget, the state's weak revenues signal that a new shortfall will emerge...

Reuters: California's budget gap won't close for long

 

The Great Bank Earnings That Really Weren't

Bank of America (NYSE: BAC) announced surprise quarterly earnings this morning of $3.2 billion, or $0.33 per common share after stripping out preferred dividends.

That's good and all -- the bank hasn't had the best of years, you know...

Fool: The Great Bank Earnings That Really Weren't

Friday, July 17, 2009

 

Talks fail to break California budget impasse

Governor Arnold Schwarzenegger and lawmakers failed on Wednesday night to agree to balance the state's budget by closing a $26.3 billion deficit, but officials said talks would continue...

Reuters: Talks fail to break California budget impasse

 

Is the middle market capable of financial planning?

The Journal of Financial Planning has an article by Brent A. Neiser, CFP, about the difficulties "Middle America" (those with household incomes between $30,000 and $100,000) has with planning for, and planning in, retirement...

Fool: Is the middle market capable of financial planning?

 

Analysts Suddenly Notice The Bomb Inside GE Capital

GE's earnings today are likely to be irrelevant because Wall Street is now worried about GE's long-term exposure to commercial real-estate, the WSJ says... In April, when concerns about the real estate first surfaced, Steve Eisman of FrontPoint wrote a detailed analysis concluding that the company has $40-$45 billion of embedded losses in its commercial real-estate portfolio... If these losses were taken all at once, they would wipe out the company...

Business Insider: Analysts Suddenly Notice The Bomb Inside GE Capital

 

Roubini: "My Views Were Taken Out Of Context."

...'It has been widely reported today that I have stated that the recession will be over “this year” and that I have “improved” my economic outlook. Despite those reports - however – my views expressed today are no different than the views I have expressed previously. If anything my views were taken out of context...'

Zero Hedge: Roubini: "My Views Were Taken Out Of Context"

 

Giant Pension Calpers Sues Moody's, S&P, Fitch Over Securities Ratings

Calpers, the biggest U.S. public pension fund, has sued the three largest credit rating agencies for giving perfect grades to securities that later suffered huge subprime mortgage losses...

Insurance Journal: Giant Pension Calpers Sues Moody's, S&P, Fitch Over Securities Ratings

 

LPL to pull plug on Pershing clearing platform

Advisers, caught off guard, are apprehensive about future...
In a major retrenchment, LPL Investment Holdings Inc. of Boston is pulling the plug on the Pershing LLC clearing platform used by about 1,700 advisers on three broker-dealers it acquired in 2007, and moving those reps onto LPL's clearing platform...

Investment News: LPL to pull plug on Pershing clearing platform

 

Kick-Start for Life Insurance M&A

Resolution might yet prove a spark for the much-needed consolidation of U.K. life insurance. But the companies in question should not let Clive Cowdery's vehicle do their M&A work for them...

WSJ: Kick-Start for Life Insurance M&A (Subscription required)

 

AIG plans public offering of life insurance unit

Despite rumors it may be for sale, American International Group announced it is accelerating steps to position its American Life Insurance Co. as an independent entity, seeking an initial public offering and public listing...

IFA Web News: AIG plans public offering of life insurance unit

 

Is Your Insurer Impairing Your Ability to Sell Fixed Annuities?

The economy has dramatically changed your book of business. Some of your clients may have lost their jobs, and most are tightening their belts. As important as your products and services are to their financial well-being, they’re finding reasons to spend less on coverage. And if you sell variable products, the situation is even more dire...

ASJ: Is Your Insurer Impairing Your Ability to Sell Fixed Annuities?

 

Strong Growth Could Come With High Unemployment

The Federal Reserve is optimistic that a robust recovery is on the way, but the minutes of its June meeting reveal that some of its policymakers think the economy is entering an era of prolonged higher unemployment...

Forbes: Strong Growth Could Come With High Unemployment

 

Top 10 White-Collar Criminals in Jail

Bernie Madoff is not the only one who is doing time – a lot of time, 150-years to be exact – for defrauding and embezzling his clients' cash. Remember Enron and HealthSouth executives. They are also members of Club Fed in facilities all over the the country...

Business Insider: Top 10 White-Collar Criminals in Jail

 

CSC Presents Inaugural Innovation Awards to L&A Carriers

CSC (NYSE: CSC) today announced that six life insurance and annuity companies are the first to receive CSC awards for innovation and leadership in the areas of technology and quality enhancement. The company's client community nominated and selected the Innovation Award winners, who were honored during CSC's Life and Annuity Users' Forum in June...

Reuters: CSC Presents Inaugural Innovation Awards to L&A Carriers

 

Peter Schiff: Wrong on the Economy, Wrong on Healthcare

I normally don’t bother myself with reading personal views pumped out throughout the Internet. But I came across one of Peter Schiff’s pitches demonstrating just how off the mark he remains. So I felt compelled to address his misguided opinions; not only because he is wrong, but also because he has been inducted into the deceitful media club. And he has used this venue as a manner by which to sway political and economic opinion...

Market Oracle: Peter Schiff: Wrong on the Economy, Wrong on Healthcare

Thursday, July 16, 2009

 

Chart of the Day: Madoff's 150-year sentence in context

Ex-financier Bernie Madoff, convicted of operating a $65 billion Ponzi scheme, served his first day of a 150-year prison sentence Wednesday... [but it] is only the fourth-longest given to someone for committing a white-collar crime in recent years...

Seattle PI: Chart of the Day: Madoff's 150-year sentence in context

 

AIG says to pursue NY IPO for life insurance unit

American International Group Inc (AIG.N) said on Wednesday it was moving ahead with spinning off a large life insurance unit, even as a source said it continues to hold sales talks with MetLife Inc...

Reuters: AIG says to pursue NY IPO for life insurance unit

 

Prudential Said to Resume Talks Over AIG Japan Units

Prudential Financial Inc. resumed talks with American International Group Inc. over the purchase of two Japanese insurance units after discussions stalled earlier this year, said two people briefed on the situation... A sale of AIG’s Star Life and Edison Life operations may yield more than $3 billion...

Bloomberg: Prudential Said to Resume Talks Over AIG Japan Units

 

Citi close to secret deal with regulator

Citigroup is close to a secret agreement with one of its main regulators that will increase scrutiny of the US bank and force it to fix financial, managerial and governance issues...

FT: Citi close to secret deal with regulator

 

CIT Calls Bailout Unlikely, Fuels Bankruptcy Concern

CIT Group Inc., the 101-year-old commercial lender running short of cash, said it probably won’t receive a federal bailout, fueling speculation the company is on the verge of bankruptcy...

Bloomberg: CIT Calls Bailout Unlikely, Fuels Bankruptcy Concern

 

NY: Terrifying 57% tax looms for biggest earners

Congressional plans to fund a massive health-care overhaul could have a job-killing effect on New York, creating a tax rate of nearly 60 percent for the state's top earners and possibly pressuring small-business owners to shed workers...

NY Post: NY: Terrifying 57% tax looms for biggest earners

 

Launch of New Annuity Investment Website

FreeAnnuityRates.com launches today, offering resources, tips, and tools that make annuity investing easier than ever before. The website features over 100 exclusive articles, a suite of calculators, a list of today's highest-rated annuity providers, and a free quote report service...

PR Web: Launch of New Annuity Investment Website

 

New Products May Ease Bite Of Long-term-care Costs

Insurers are rolling out new products that combine life insurance or annuities with long-term-care insurance, prompted by a new law that will soon make distributions from life insurance and annuities tax-free when used to pay nursing-home costs...

Fox Business: New Products May Ease Bite Of Long-term-care Costs

 

Should clients annuitize their retirement assets?

...So, does it make sense to annuitize retirement money or roll the dice with market based returns? ...When you run the numbers, there doesn't seem to be much of an advantage to annuitizing. In fact, clients may forfeit significant opportunities for greater income by doing so...

Investment News: Should clients annuitize their retirement assets?

Wednesday, July 15, 2009

 

Aviva is offering free life insurance to new parents.

Aviva is offering free life insurance to new parents.

Cover of up to £10,000 is available to those with first offspring aged less than six months, and lasts until the child’s first birthday.

Aviva is offering free life insurance to new parents.
Source: Insurance Daily

 

Number of Retirees Worried About Finances More Than Doubles

A full 49% of retirees are insecure about their financial future, up from only 20% who were afraid a year ago, a survey conducted by LIMRA, the Society of Actuaries and the International Foundation for Retirement Education found.

Number of Retirees Worried About Finances More Than Doubles
Source: Financial-Planning.com

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