In yet another sign of variable annuity capacity constraints, Jackson National recently announced that they are approaching the upper range for 2012 sales of variable annuities with guaranteed living benefits.
Jackson’s November 8 press release indicates the company has roughly $1 billion worth of remaining 2012 capacity.
Jackson indicated that this remaining capacity will be used for new product sales and that they will no longer accept new 1035 exchange business or qualified transfers of of assets for variable annuities with GLBs as of November 13 2012.
The 1035 exchange restrictions are temporary and will be revisited on December 15 in light of remaining capacity at that point in time.
In addition, the 1035 exchange restrictions will not affect Jackson’s Elite Access product which has alternative investment features that “are not conducive” to GLB features.
Jackson’s stated objective is to continue to manage variable annuity sales in light of prudent growth and management of the company’s balance sheet.
Source: Business Wire
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