Financial Crisis

Variable annuity sales had been surging prior to the onset of the financial crisis. As reported earlier , many customers who had purchased variable annuities with guaranteed living benefits (GLBs) two or more years ago have been well insulated from the financial storm. However, the current environment for variable annuities and living benefits is vastly different than it was even a year ago. Insurers are now increasing prices and scaling back on the richness of product features, making it a...

How much do I need to save for retirement? How do I plan for retirement? Both are pretty basic questions that are top of mind for most people who are at or approaching retirement age, and the uncertainty and anxiety around these questions have only increased in light of the financial crisis. A recent article lists 5 risks that should be on the radar of anyone contemplating retirement: Inflation Longevity risk Market risk Health problems and expenses Losing a job or unexpected retirement Source...

Life insurance companies that have bank holding company status and applied for TARP funds prior to November 14 2008 will receive $22 billion in TARP funds from the U.S. Treasury. Companies that are set to receive funds include: Hartford Financial Services Group, Prudential Financial, Principal Financial Group, Lincoln National, Allstate and Ameriprise Financial. Many life insurers--particularly those with meaningful variable annuity businesses--have been significantly impacted by the capital...

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:...

South African billionaire Johan Rupert considers the possible fallout of the financial crisis at an annual meeting for analysts following the company he controls. According to Rupert, governments are "going to have to find capital in the markets, which will crowd out the private sector, or they're going to have to tax the hell out of living consumers, or inflate their liabilities into oblivion. There are not too many other options." Rupert considers inflation and broad social unrest as possible...