Variable Annuity

In contrast to a fixed annuity, the key features of a variable annuity can fluctuate (they are “variable”) during the accumulation period and during the payout phase. Also in contrast to a fixed annuity, the variable annuity contract holder assumes much of the investment risk. With a variable annuity, the insurance company provides the contract holder with the ability to determine how his or her premiums are invested. One investment option is a variable account which typically consists of equity, bond or money market mutual funds. The other option is the general account of a variable annuity which provides a guaranteed return. The contract holder decides how much risk or variability they want to tolerate by allocating premium payments among the general and variable accounts. The amount of money accumulated and the amount of income during the payout phase are determined by the returns of these accounts. With a variable annuity: 1) the money can go in as a single premium payment or a series of payments; 2) the money is invested at a variable or non guaranteed rate; 3) payments are variable and can begin immediately or at some future date.

Variable Annuity Sales at Jackson National Rise 57 Percent

Variable annuity sales are, to say the least, strong at Jackson National Life Insurance Company.
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ING Preparing for IPO of U.S. Insurance Business

The Dutch financial services company ING Groep is preparing for an initial public offering (IPO) of its U.S. based insurance business. The company agreed to split its banking and insurance businesses when it gained approval from the European Commission to receive government funds during the financial crisis. ING has spent considerable time and resources addressing issues related to its U.S. variable annuity business, and the company feels that these efforts are almost complete with the business...
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Allianz Reports Strong Revenue Growth Coupled with Earnings Challenges Due to Low Interest Rates

Allianz Life Insurance Company of North America reported strong revenue growth for the third quarter of 2010. Fixed indexed annuity sales increased 36 percent and totaled $1.9 billion. Variable annuity sales quadrupled to $800 million. Allianz attributes the revenue growth to more risk averse consumers in the wake of the financial crisis.
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Variable Annuity Sales in U.S. Post Largest Gain in Two Years

U.S. variable annuity sales totaled $35.5 billion in the second quarter of 2010. This represents an 11 percent increase from the same period in 2009, and the gain is the largest since 2007. Prudential was the leader during the period with $5.3 billion in sales--a significant increase relative to $3.38 billion during the same period the previous year. Variable annuity sales at AIG increased 45 percent to $1.58 billion. The largest U.S. life insurer, MetLife, had $4.5 billion in variable annuity...
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Aegon Modifying U.S. Variable Annuity Products

The Dutch insurance and financial services giant Aegon appears to be rethinking its U.S. based variable annuity business. It is reported that Aegon is making a move to apply a macro equity hedge to its in-force variable annuity contracts. The company is also considering the sale of its life reinsurance business, Transamerica Re.
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