FINRA fines Fifth Third unit $1.75M Apr 16, 2009
75 million, saying its brokers engaged in a series of what it termed unsuitable transactions involving variable annuities ... It contends the firm violated rules by allowing improperly registered representatives to buy and sell equities and bonds and didn t keep accurate records on its variable annuities business ... Those involved variable annuities, complex long-term investments which FINRA charged were being sold to elderly and unsophisticated investors. (Charlotte Business Journal, NC)
Fifth Third Securities fined by FINRA Apr 16, 2009
8 million, saying its brokers engaged in a series of what it termed "unsuitable transactions involving variable annuities. The agency said it is continuing to investigate Fifth Third Securities employees involved in the sale, approval and supervision of the transactions. It added that the firm violated rules by allowing improperly registered representatives to buy and sell equities and bonds and did not keep accurate records on its variable annuities business. FINRA also ordered the company to... (Cincinnati Business Courier, OH)
Treasury to offer limited aid to insurers Apr 9, 2009
The industrys major financial challenges include balance sheets clogged by illiquid assets and escalating liabilities to policy holders who bought in to this decades explosion in the variable annuities market. Variable annuities pay out according to market performance, but often include guarantees of minimum payouts. (MSNBC -- Business)
Next bailout: Life insurance gets lifeline from taxpayers Apr 9, 2009
Many life insurers offer consumers variable annuities that pay a guaranteed return, regardless of whether bulls or bears are running the stock market. Although the obligations require payment years off, the financial markets are in such turmoil that life insurers are being forced into protective strategies that make it hard to offset the risks they've assumed. (Yahoo News -- Politics)
Some annuities can offer a safe haven during tough economic times Apr 9, 2009
Variable annuities typically invest in a set of mutual funds the buyer chooses, which means investments are exposed to potential market losses ... Variable annuities also have fees related to the mutual funds they hold. (Boston Globe)
Safety sold as part of annuities appeal Apr 7, 2009
Variable annuities typically invest in a set of mutual funds that the buyer chooses, which means the investments are exposed to potential market losses ... Those with variable annuities also must cover the fees related to the mutual funds they hold. (AZCentral -- Business)
Manulife, the millions and moral hazard Mar 28, 2009
It aggressively sold variable annuities and other products that guaranteed returns (and booked earnings from that, which in turn helped the executives meet bonus targets). When the market crashed, the company found itself with a $30-billion paper liability for paying those guarantees to customers. (Globe and Mail -- Business)
Manulife CEO to get $12.5-million in 2009 Mar 27, 2009
The company raised more than $2-billion from common share issues to shore up its capital levels last year after being hurt by its heavy exposure to stock markets as a result of its large variable annuities and segregated funds business. Manulife's executives, including Mr. D'Alessandro, decided to stop hedging the company's exposure to stock markets in 2004. (Globe and Mail)
Can A.I.G. recover from public relations disaster? Mar 24, 2009
He helps clients select variable annuities from a bewildering array of carriers. Related Articles. (International Herald Tribune)
Moodys downgrades Lincoln National Mar 21, 2009
The rating agency added that Lincoln National s investment losses and lower earnings related to the company s significant exposure to the equity markets through its large block of variable annuities with guarantees are expected to result in continued depressed earnings. On a positive note, Moody's pointed out that Lincoln National s regulatory risk-based capital tends to be less sensitive to further declines in the equity markets than are other large variable annuity writers. (Philadelphia Business Journal, PA)
AEGON Maintains Strong Capital Position Despite Fourth Quarter 2008 Loss Mar 12, 2009
Underlying earnings were down mainly due to declining financial markets, resulting in reserve strengthening and accelerated amortization of deferred policy acquisition costs (DPAC) in the variable annuities line of business in the Americas and reduced fees on asset balances in general ... SALES EUR millions Notes Q4 2008 Q4 2007 % At constant currency % New life sales Life single premiums 2,327 3,447 (32) (23) Life recurring premiums annualized 366 456 (20) (16) Total recurring plus 1/10 single... (PR Newswire)
Morningstar, Inc. Announces Organizational and Operating Segment Reporting Changes Feb 20, 2009
The key products and services in this business are Investment Consulting, which focuses on investment monitoring and asset allocation for funds of funds, including mutual funds and variable annuities; and Retirement Advice, including Morningstar Retirement Manager. Peng Chen remains president of Ibbotson Associates. (PR Newswire)
Carnahan fines financial advisers for misleading elderly Feb 19, 2009
Variable annuities are complicated investments that can limit access to your money and often include high fees, Carnahan said in a statement. Two additional orders involve investors from Springfield who were seeking additional income to meet their living expenses. (St. Louis Business Journal, MO)
Sun Life Financial reports fourth quarter and 2008 results Feb 12, 2009
While Sun Life's overall financial returns are very disappointing, reflecting negative equity markets and a stressed credit environment, our balance sheet remains strong and well diversified," said Donald A. Stewart, Chief Executive Officer. "We are well positioned to win customers and pursue opportunities in 2009. " "We remain financially disciplined and focused on performance. (Canada Newswire)
U.S. Life Insurers Dragged Down by Soured Investments Feb 10, 2009
Lincoln National also swung to a quarterly net loss, as costs for variable annuities soared, and returns from investments in hedge funds and private equity evaporated, sending its shares down about 6 percent post-market. The Philadelphia-based company said it expected a life insurance subsidiary to end the year with risk-based capital, a key regulatory metric, of between 380 and 390 percent. (ABC News -- Wire)
DOLLARS AND SENSE: Retirement risk and uncertainty: a fixed strategy Feb 8, 2009
A few months ago I wrote about variable annuities, which many of my clients have been inquiring about. Given the economic climate of today, I wanted to share an alternative to the conditions we have been experiencing. (Bolton Common, MA)
Annuities: Plus Or Too Many Minuses? Mar 21, 2008
4 billion into variable annuities in the first nine months of 2007, says the Association of Insured Retirement Solutions ... Assets invested in variable annuities total $1 ... Variable annuities, which hold mutual funds, bonds or money markets, also charge sales loads and management fees for the underlying investments. (Investors Business Daily)
Who is your financial adviser working for, anyway? Mar 16, 2008
Who is your financial adviser working for, anyway. Local Search Site Search. (Boston Globe)
Businesses Deliver Solid Underlying Growth and No Material Impairments to AEGON's Investments in 2007 Mar 6, 2008
In the Americas, pension deposits rose 43% while deposits of both fixed and variable annuities and mutual funds were up 31 ... AMERICAS - EARNINGS amounts in millions USD EUR Fourth quarter Fourth quarter Notes 2007 2006 % 2007 2006 Operating earnings before tax by line of business 6 Life 291 196 48 205 152 Accident and health 91 91 0 62 70 Life and protection 382 287 33 267 222 Fixed annuities 112 145 (23) 77 113 Variable annuities 17 87 (80) 10 69 Retail mutual funds 6 5 20 4 4 Individual... (PR Newswire)
John Hancock Closed-End Funds Auction Preferred Shares Update Feb 27, 2008
John Hancock offers a broad range of financial products and services, including life insurance, fixed and variable annuities, mutual funds, 401(k) plans, long term care insurance, college savings, and other forms of business insurance. SOURCE John Hancock Advisers, LLC. (PR Newswire)
CEO Interview Feb 26, 2008
The firm now rates stocks, exchange-traded funds and variable annuities, with hedge funds coming soon. Financial advisers and institutions increasingly rely on Morningstar's judgment; the firm draws almost 75% of its revenue from products sold to advisers and institutions. (SmartMoney)
Pensions round-up. By Tom McPhail Feb 25, 2008
Impaired life annuities, which are rapidly becoming a standard option from many insurance companies, compensate investors for poor health with a higher level of income; cash-back annuities mean that the age-old concern about money in a pension being lost is no longer an issue; and some of the new variable annuities offer innovative combinations of market exposure, income control and underlying guarantees to protect against extreme investment risk. These latter options are very expensive, but... (Accounting Web, UK)
Manulife Financial Corporation reports record annual and quarterly ... Feb 18, 2008
- John Hancock Variable Annuities sales were US$2 ... - Two new fund-of-funds options were added to the Venture Variable Annuities investment platform. (Exchange Morning Post)
Reapplying for Social Security may be a good idea Feb 17, 2008
5 percent initial payout with guaranteed inflation rate increase from any of the living-benefits variable annuities. You won't get it from any of the new mutual funds geared to producing lifetime income. (Boston Globe)
Annuities in Your 401(k)? Feb 12, 2008
Some variable annuities will allow you to invest in the market and at the same time guarantee your benefit base to grow at a min 7. When it comes to fees, annuities are going to be a little higher, but the question is: Is having your money protected worth paying a slightly higher fee. (SmartMoney)
DRIPs For Disciplined Investing Jan 29, 2008
A top player in individual variable annuities in the U.S. and Japan, Hartford has benefited from strong growth in annuity sales in both markets. Strength in annuities and life insurance has offset weakness in business insurance in recent quarters. (Forbes)
If you have a high-fee, tax-deferred annuity you can make a 1035 exchange to get out of it Jan 26, 2008
Here are the kinds of costs typically associated with variable annuities. 1. (Boston Globe)
Vanguard Group makes presence known in Valley Jan 12, 2008
He predicts the new funds will compete with variable annuities, which seek a similar goal but, typically, are saddled with high costs and an unfavorable tax wrinkle (because withdrawals are treated as ordinary income, not capital gains). Reach the reporter at or 602-444-8616. (AZCentral -- Business)
Financial Advisor / Jackson Jan 7, 2008
This push pin is accurate to city level. It does not reflect the exact job location. (The Clarion-Ledger)
Sterling Financial Corporation of Spokane, Washington, Revises Estimated Range for Fourth Quarter Earnings, Reports Increased Charge for Credit Costs Dec 27, 2007
Sterling Savings Bank's subsidiary Harbor Financial Services provides non-bank investments, including mutual funds, variable annuities and tax-deferred annuities and other investment products through regional representatives throughout Sterling Savings Bank's branch network. Golf Savings Bank is a Washington State-chartered and FDIC insured savings bank. (PR Newswire)
You Can't Handle The Truth! Dec 20, 2007
I am enjoying my daily conversations with readers around the country, and one subject that keeps cropping up is what to do with Variable Annuities (VAs) ... I've always found that these annuity coaching sessions -- specifically geared toward helping individual investors understand the sometimes confusing landscape of variable annuities -- help me better understand what's on investors' minds. (Human Events Online)
12 ways to make your kids financially savvy Dec 18, 2007
Still, there are a few no-load variable annuities with low annual expenses, notably the offerings from Fidelity Investments and Vanguard Group ... Today, my kids' low-cost variable annuities are each worth some $37,000 ... The money I've stashed in my kids' variable annuities and in Hannah's Roth IRA won't be nearly enough to pay for their retirement, especially once you figure in inflation. (AZCentral -- Business)
Fabian Preaches The Gospel Of The ETF Dec 18, 2007
-based Fabian Wealth Strategies, he has plunged almost all of his funds into ETFs (with some room left for variable annuities). He has written a book (2001's "Maverick Investing") and edits the newsletters Successful Investing, High Monthly Income and ETF Trader to persuade others to get aboard the ETF line. (Investors Business Daily)
Rich boomers leaving less to kids Dec 12, 2007
The use of variable annuities to guarantee certain levels of income increased probabilities of the plan's success, but eroded net worth faster in poor markets. As logic suggests, guaranteed income has a price. (Atlanta Journal-Constitution)
John Hancock Tax-Advantaged Dividend Income Fund Announces Increased Monthly Distributions, Share Repurchase Program and Capital Gains Distributions Dec 5, 2007
John Hancock offers a broad range of financial products and services, including life insurance, fixed and variable annuities, mutual funds, 401(k) plans, long term care insurance, college savings, and other forms of business insurance. SOURCE John Hancock Tax-Advantaged Dividend Income Fund. (PR Newswire)
Kathleen Pender: Choosing a financial adviser Dec 2, 2007
org (run by the regulatory organization formerly know as the National Association of Securities Dealers) has some good consumer-protection things, like what's wrong with variable annuities and why they shouldn't be in an individual retirement account. Q: Can you suggest a financial gift for a young person. (San Francisco Chronicle -- Business)
As baby boomers retire, annuities offer financial alternative Nov 22, 2007
The costs of variable annuities commonly exceed those of mutual funds, and their monthly payments may fall when underlying investments lose value. 1. (International Herald Tribune -- Business)
How do you manage money in retirement? There's no perfect solution Nov 16, 2007
(Immediate income annuities that pay a set income for life and deferred variable annuities with mutual-fund-like investment "sub-accounts" are different products ... Their comments are appropriate, because Fidelity is the only financial services firm I know that offers brokerage services and low-cost, direct-marketed funds and immediate and variable annuities that can be used for all the strategies I mentioned. (Boston Globe)
Ask the Expert Nov 11, 2007
() A modest proposal: Make the sellers of variable annuities tell people how much they're really paying for their investment. ()The Long View: Before you decide when and where to retire, you'll need to ask your better half about her plans (). (CNN -- Money / Personal Finance)
Turning up heat on retirement savings Nov 9, 2007
Hancock itself is in the midst of a $30 million campaign promoting products like variable annuities for retirement that includes television spots showing people stating life goals like caring for parents or switching careers. Samantha C. Wreaks, publisher of The Journal of Financial Advertising & Marketing, a quarterly publication in New York, said another reason for the growth of retirement vehicles is that individual investors scared by the technology-stock bubble and concerned about the... (Boston Globe)
/FIRST ADD -- LNTH001 -- AEGON N.V. EARNINGS/ Nov 8, 2007
This new relationship will place AEGON in a position of strength in the sales of variable annuities within the wirehouse distribution channel. Commitments and contingencies There have been no material changes in contingent assets and liabilities reported in the 2006 consolidated financial statements of AEGON. DISCLAIMERS Cautionary note regarding non-GAAP measures This press release includes certain non-GAAP financial measures: 2006 (net) pro-forma operating earnings, net operating earnings,... (PR Newswire)
AEGON Delivers Strong Third Quarter Operational Performance Nov 8, 2007
This new relationship will place AEGON in a position of strength in the sales of variable annuities within the wirehouse distribution channel ... AMERICAS - EARNINGS amounts in millions USD EUR Third quarter Third quarter Notes 2007 2006 % 2007 2006 Operating earnings before tax by line of business 6 Life 228 189 21 166 148 Accident and health 113 120 (6) 82 94 Life and protection 341 309 10 248 242 Fixed annuities 129 87 48 94 68 Variable annuities 62 42 48 45 32 Retail mutual funds 4 (2) N.M.... (PR Newswire)
Manulife Financial Net Income Increases on Higher Money-Management Fees Nov 7, 2007
Earnings from the Asia and Japan unit climbed 25 percent to C$227 million, as sales of variable annuities in Japan climbed fourfold to a record. Manulife raised its quarterly dividend 9. (Bloomberg -- Canada)
Ups and downs, ins and outs of buying annuities as part of your retirement plans Oct 31, 2007
Variable annuities allow you to choose how the money you put in gets invested; you can choose mutual fund accounts that theoretically will allow you to earn more. Typically, deferred annuities are variable and immediate annuities are fixed, but they don't have to be. (Boston Globe)
Prudential's Third-Quarter Sales Rise 18 Percent on Asia, U.S. Divisions Oct 23, 2007
U.S. sales rose 10 percent to 159 million pounds, helped by variable annuities, Prudential said today. New business in Asia, where it has more than 350,000 people selling products across 12 countries, increased 42 percent to 320 million pounds, lifted by gains in India, Taiwan and Korea. (Bloomberg -- UK)
I'm Retired. Now What? Oct 10, 2007
First introduced in 2004, variable annuities with so-called Guaranteed Lifetime Withdrawal Benefits guarantee that a certain percentage of the amount invested typically 4% to 5% can be withdrawn each year as long as the contract holder lives. Meanwhile, variable annuities with Guaranteed Minimum Withdrawal Benefits will pay you a guaranteed percentage of your initial investment typically 4% to 7% each year until your original investment is completely recovered ... Kresh, who wouldn't even look... (SmartMoney)
John Hancock Preferred Income Fund II Reports Fourth Quarter Earnings Oct 6, 2007
John Hancock offers a broad range of financial products and services, including life insurance, fixed and variable annuities, mutual funds, 401(k) plans, long term care insurance, college savings, and other forms of business insurance. Total net assets include value of preferred shares. (PR Newswire)
Without a Net Oct 5, 2007
If you're at least 10 years from retirement, earning a high salary, and you've maxed out your IRA contributions, you may want to consider putting some extra money in variable annuities, says Michael Lanzaro, business development director, also at Lanzaro CPA. A variable annuity, which is a contract between you and an insurance company, typically offers mutual funds that invest in stocks, bonds and money market accounts. Variable annuities are tax-deferred, and there's no limit to the amount you... (SmartMoney)
ING in talks to sell insurance with Japan Post Oct 5, 2007
The first European life insurer to enter the Japanese market, it sells variable annuities and other products through Mitsubishi UFJ Financial, the biggest publicly traded bank in Japan, and 29 competing Japanese institutions. "Japan Post is considering inviting local and overseas life insurers to sell their products at its banking branches," said Yoshihito Sekizawa, a spokesman for Japan Post in Tokyo. (International Herald Tribune -- Business Asia)
Securities Regulators Catching Zzzs, Not Rogues: Susan Antilla Oct 4, 2007
Only four actions related to variable annuities were brought by NASD and NYSE last year, down from 37 in 2005, according to the numbers crunched by Heilizer and Rubin. So-called ``directed brokerage'' cases, in which brokerage firms favor the mutual funds that give them more business, drew $13. (Bloomberg -- Columnists)
Merrill Lynch cheated late philanthropist Oct 4, 2007
It was about how much they lost because they weren't told of the high commissions and fees they were paying on the $31 million they invested in variable annuities on the advice of McKinley. Further, they weren't told that the annuities were simply a bad investment for an elderly couple, particularly one with a net worth of nearly $100 million, Sachs said. (The Palm Beach Post)
Becoming A Mompreneur Oct 2, 2007
The difference between fixed and variable annuities is that the "fixed" contract guarantees you a set interest rate during what is known as the "accumulation period" the time before you take withdrawals ... Because of this relative flexibility, variable annuities are by far the most popular type of annuity ... Withdrawals from variable annuities are taxed as ordinary income, which can run as high as 35. (KFOXTV.com, TX)
Commission offers investor education Sep 27, 2007
Variable annuities are frequently pushed because they yield high commissions. These are long-term investments with steep surrender fees and are usually unsuitable for senior investors. (Sierra Vista Herald, AZ)
Shop Smart: Make the most of your employer's offerings Sep 16, 2007
For example, if your 401(k) plan's investment offerings include variable annuities or funds that carry 12b-1 fees, you may be paying more than you should to save for retirement. What to do: If your company has a high-cost 401(k), you should contribute at least enough to get any employer-matching contribution. (Pittsburgh Post-Gazette, PA)
Regulators find fraud in seminars for seniors Sep 11, 2007
In a related development last week, the SEC approved a rule designed to tighten standards for the selling of deferred variable annuities, a type of investment that may raise serious questions in terms of suitability for many older consumers ... The new rule applies to deferred variable annuities, which promise future payments ... Under the new rule, brokers are explicitly required to consider whether deferred variable annuities are suitable for the buyer, and companies are expected to review... (Los Angeles Times)
401(k) annuity options Sep 11, 2007
Among the current 401(k) annuity offerings are fixed and variable annuities ... Variable annuities base the monthly payments you receive on the performance of an underlying portfolio of stocks and bonds. (USA Today -- Money)
What to Know About Your 401(k) Sep 10, 2007
There are actually plenty of plans out there, especially 403(b) retirement plans for nonprofit organizations and schools, that offer tax-advantaged investments, like variable annuities. This is pointless. (SmartMoney)
Wall Street Journal Weekend Edition Examines Rise and Fall of Controversial Democratic Fundraiser Norman Hsu Sep 8, 2007
Securities regulators from Washington to Alabama have laid bare "abusive sales tactics" uncovered during a year-long examination of free-lunch meetings across the country, which are often used to sell variable annuities and other potentially costly investments to seniors. Nasdaq-100 Index: The Nasdaq-100 index of big tech stocks is up nearly 14% this year, nearly twice the rise of the Dow and more than three times the increase of the S&P 500. (Primezone Releases)
Jefferson Launches Annuity Platform Aug 27, 2007
According to Morningstar's data, consumers with variable annuities are currently paying at least $15 billion each year in insurance fees. Jefferson National's new platform also features an Advisor Dashboard to view, edit, update and send proposals, emails and alerts. (American Banker)
MetLife Hires Bank Distributors Aug 25, 2007
MetLife Investors offers fixed, immediate, and variable annuities that give individuals guaranteed income solutions for their retirement. The products are sold through third-party intermediaries, including wire houses, independent planners, broker-dealers, and banks. (American Banker)
IRS OKs Changes to 403(b) Plans Aug 23, 2007
Much of the 403(b) money traditionally has been invested in fixed and variable annuities, which are contracts sold by insurance companies that are designed to provide payments at specific intervals in retirement. A growing number of large institutions such as hospitals and colleges have been making mutual funds more available to their workers in recent years. (ABC News -- Wire)
Aegon to buy Merrill insurance units for $1.3 bln Aug 14, 2007
3 billion in cash to boost its sales of variable annuities and distribution in the United States ... The transaction will place Aegon in the top ten of variable annuities sellers in the broker-dealer segment globally. (ABC News -- Wire)
Old Mutual: Results for the Six Months Ended 30 June 2007 Aug 10, 2007
Life APE up 10% to 859 million (up 17% at constant exchange rates) - SA retail up 21% as sales force productivity and bancassurance grows, corporate flat - US up 34%: Bermuda variable annuities strong - UK up 23%: Open architecture continues to thrive - Nordic slower following tax changes and price pressure - ELAM: matches last year s highs. Investment performance strong in US and Europe, recovering in SA. (BusinessWire)
A Lethal Luncheon Aug 4, 2007
The Lowdown on Variable Annuities. Finally, you can find out more on retirement planning right here. (MSNBC -- Business)
Strong US and Asia sales ease pressure on Prudential Aug 2, 2007
In Asia, the amount of new business jumped 48pc to 619m, while in the US, Prudential saw a 31pc uplift in sales of variable annuities and continued to gain market share through its Jackson National Life business. Lower taxes and a 40pc leap in operating profit at Prudential's fund manager M&G also contributed to the strong results. (Telegraph.co.uk)
