VALIC
Short Company Name:
VALIC
Long Company Name:
VALIC
Company Type:
Insurance Company
Web Site:
Phone Number:
800-448-2542
Fax Number:
877-202-0187
Year Founded:
1955
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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.
Manulife Shoring-up Capital in Light of Hits to Variable Annuity Business
Manulife Financial continues to recover and shore-up its balance sheet after taking some hits to its previously unhedged variable annuity business: Manulife is still recovering from exposure to billions of dollars in liabilities incurred by its variable annuity business during the global economic crisis, when unhedged bets turned sour as stock markets tumbled. Source: Reuters Full Story
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Sales of Variable Annuities Uncertain as Insurers Modify Products
Life and annuity insurers have been revamping their variable annuity product offerings to better fit a post financial crisis environment. As discussed in recent blog entries , variable annuity product revamps basically boil down to increasing prices and benefit reductions. The unanswered question is what impact the product changes will have on variable annuity sales. According to a recent Wall Street Journal Article, variable annuity sales grew at an 11% annual rate from 1995 through 2007...
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Manulife Under Pressure - Hurt by Lack of Hedging in Variable Annuity Business
Canadian insurer Manulife Financial is under investigation by the Ontario Securities Commission for failing to disclose certain obligations related to its variable annuity products. Manulife's stock price has been under pressure and the company had to draw down a $3 billon loan. Manulife, the parent of John Hancock , has reported billion dollar earnings losses in its two most recent quarters. The company is suffering from the decision not to hedge effectively within its variable annuity...
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A Changing Variable Annuity Landscape -- What to Watch for in the Next Few Years
This is the second part of an interview with variable...
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