Wednesday, May 12, 2010


Life insurers facing annuity squeeze

Premiums on the decline; days of double-digit growth long gone

A period of fierce competition to build annuity premiums awaits life insurers as they contend with industry consolidation and the difficulties of standing out from rivals.

Premium growth for individual annuities has been on the decline for years. That's not likely to change anytime soon. The popularity of 1035 exchanges — tax-free transfers of one annuity into another — has been decreasing dramatically. In fact, Conning Research and Consulting estimates that the average annual annuity premium growth rate between 2007 to 2011 will come in at 2.3%. That's a considerable drop from the double-digit growth rates insurers saw during the late '90s...

Investment News: Life insurers facing annuity squeeze

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