Annuity Sales

Fitch Ratings cut their ratings on Hartford Financial Services Group to two steps above junk status. Analysts are concerned about Hartford's decision to pause or cancel annuity sales in Japan, Germany and the U.K. Hartford has also begun implementing major changes to its U.S. based variable annuity business. Hartford is one of the life and annuity insurers that has been particularly hard hit by the capital market risk and volatility that has been rampant during the financial crisis. Source:...

Guaranteed living benefits ( GLB ) are optional guarantees that can be embedded into variable annuity products. A recent variable annuity survey from the actuarial and consulting firm Milliman indicates that GLBs have experienced rapid growth consumer adoption over the past several years. 96% of variable annuity sales in 2007 and the first half of 2008 included some form of GLB. "Sales of VAs that offered a GLB during calendar year 2004 averaged 87% of total VA sales, increasing to 95% in 2005...

The state of Florida is considering legislation that would impose third degree felony charges and a maximum of five years in prison for insurance agents who provide misleading annuity representations ("twisting") and inappropriate policy surrenders or withdrawals (" churning "). "Under the bill, which would apply to sales in Florida to people over 65, the surrender periods — or the length of time an investor must keep an annuity — would be set at a maximum of five years. The surrender fee — or...