Symetra Keeps Focus as Others Raise Fees, Reduce Benefits on Variable Annuities

Symetra Keeps Focus as Others Raise Fees, Reduce Benefits on Variable Annuities

BELLEVUE, Wash.--(BUSINESS WIRE)-- A recent review of industry variable annuities (VAs) conducted by Symetra Life Insurance Co. reveals major changes to many of the most popular guaranteed living benefit riders offered within the products, the company announced today. The review, which included products from 10 of the largest VA providers, found widespread increases in the fees charged to customers, reductions in guarantees and benefits offered under many riders and, in several cases, elimination of an entire guaranteed living benefit offering.

“We are clearly witnessing a significant trend towards less flexibility and higher fees within some of the most common VA riders,” said Pat McCormick, senior vice president for Sales and Distribution at Symetra Life Insurance Company. “VAs can and will continue to play a role in building retirement income as markets recover. That is why now, at such a critical juncture for our industry, it is so important to give customers a dependable selection of VA options and not surprise them with fees and features that change dramatically from one year to the next.”

The findings are based on an assessment of product prospectuses active from May 1, 2008 to May 1, 2009 that include guaranteed living benefit riders for the 10 largest VA providers as defined by 2008 total sales using non-qualified money, according to data from the Morningstar® Annuity Research Center.¹

Among other findings, the review revealed nine of the 10 providers raised fees on multiple living benefit riders within their VA product suite over the 12-month time span. In addition, eight of the 10 carriers have discontinued at least one guaranteed living benefit rider from their VA lineup.

For its part, Symetra has not reduced guaranteed benefits available from its Symetra Focus Variable Annuity income rider since its inception. The company also has made no changes to the way it charges fees on its rider, known as the Guaranteed Long Life Benefit (GLLB), which is designed to help provide stable guaranteed lifetime income later in retirement.

Focus features several index-style investment options from quality investment firms such as Vanguard and Fidelity Investments, and electing the optional GLLB rider with the product does not trigger asset allocation restrictions within the VA. The product’s low fee structure and investment options are designed to help customers keep more of the potential returns generated from VA investments. In addition, Symetra has no financial hedging exposure as a result of offering a multitude of complex living benefit guarantees within its VA, a common problem associated with riders such as Guaranteed Lifetime Withdrawal Benefits.

About Symetra Financial

Symetra Financial Corp. and its subsidiaries provide employee benefits, annuities and life insurance through a national network of benefit consultants, financial institutions and independent agents and advisors. Headquartered in Bellevue, Wash., Symetra and its subsidiaries have more than $19 billion in assets.² Symetra is owned by an investor group led by White Mountains Insurance Group, Ltd. and Berkshire Hathaway Inc.

For more information, visit www.symetra.com.

Before investing, carefully consider the investment objectives, risks, charges and expenses. This and other information is contained in the contract prospectus and the underlying portfolio prospectuses. Read the prospectus carefully before investing.

Guarantees and benefits are subject to the claims-paying ability of the underlying insurance company.

Variable annuities, which are suitable for long-term investing, are subject to market risks, including the potential loss of principal invested. Tax-deferred investments such as variable annuities can have fees associated with them such as fund charges, sales charges and administrative fees that should also be taken into consideration. In addition, withdrawals from a tax-deferred account may be subject to ordinary income tax and a 10 percent federal tax penalty may also apply to amounts withdrawn prior to age 59 ½. Surrender charges may apply if the withdrawal is made during the early years.

Riders are optional features in annuities usually at an additional cost that offer additional features such as income guarantees. Certain conditions, restrictions and limitations are associated with optional riders. The GLLB is an irrevocable optional benefit rider available only at issue of Symetra Focus Variable Annuity contracts, the cost for which is deducted from the contract's value annually on the first 10 contract anniversaries. GLLB benefit payments cease upon the contract holder's death and may be reduced if the entire contract value is withdrawn prior to the 10th anniversary. Additional information regarding the GLLB rider is contained within the Focus prospectus, including a complete definition of terms and description of the rider.

¹ Morningstar® Annuity Research Center provides insurance company data for competitive analysis and product development.

² Total GAAP assets and combined liabilities and stockholders’ equity at Mar. 31, 2009.

Securities are offered through Symetra Securities, Inc. (“SSI”), member SIPC. Variable annuities are issued by Symetra Life Insurance Company (“SLIC”) and are not available in all U.S. states or any U.S. territories. SSI and SLIC are affiliates and are both located at 777 108th Ave. NE, Suite 1200, Bellevue, WA 98004-5135. Symetra Focus Variable Annuity contract form numbers in most states are RSC-0007 7/06 and RSC-0007 LR 5/08. Contract form number in Oregon is RSC-0007/OR 7/06.

Symetra® is a registered service mark of Symetra Life Insurance Co.

Symetra Financial

Colin Johnson, 425-256-5049

[email protected]

Source: Symetra Financial Corp.

Copyright Business Wire 2009 A recent review of industry variable annuities conducted by Symetra Life Insurance Co. reveals major changes to many of the most popular guaranteed living benefit riders offered within the products, the company announced today.