Insurer

The U.S. life and annuity insurer MetLife appears to be in a strong position relative to its competitors. MetLife is one of the leading providers of variable annuities in the United States. At a recent industry conference, MetLife's CEO explained that one of his primary concerns involves extending the company's leading position by taking advantage of acquisition and new business opportunities that have resulted from the financial crisis: MetLife shunned U.S. rescue funds and padded its finances...

A very balanced article in the Chicago Tribune discusses what consumers should consider when they are concerned about credit risk or the financial health of their insurance company. Dumping an existing life or annuity policy when reading headlines about the health of an insurer may not be the wisest idea. At a minimum, consumers should seek a couple of informed opinions before replacing an existing policy. There are fees and tax consequences that may come into play. In addition, there are...

Credit risk or the possibility of company insolvency are top of mind for many people who are considering an annuity purchase. However, as indicated in the Wall Street Journal article referenced below, 90% of policyholders impacted by recent insolvencies have received full benefits--largely through a combination of remaining insurer assets and funds provided by state guaranty associations. Due diligence and--to the extent possible--some comparison shopping are encouraged before purchasing any...

Even with life and annuity insurers struggling, consumers should think twice and seek sound advice before selling an existing annuity. "Should consumers be worried by declining financial-strength ratings of insurance companies that issue their life policies and annuity contracts? Experts say lowered strength ratings are cause for concern. But they warn that rash action -- like dumping your annuity without doing your homework first -- may subject you to big problems." Source: Wall Street Journal...