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Bristol Health Uses Annuities To Keep Pension Losses To $31.4M

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Bristol Health, parent company of Bristol Hospital, posted a sobering $31.4 million loss for 2019, but administrators said that was mostly a one-time cost to end its traditional pension plan. Bristol Health, which runs the community hospital as well as as a physicians group and the Ingraham Manor nursing home, typically posts annual profits or losses of no more…

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Three key provisions of the SECURE Act will likely affect the way client’s handle their IRA. These provisions went into effect on Jan. 1 and include 1) eliminating the stretch provision on inherited IRAs, 2) increasing the RMD age from 70½ to 72, and 3) allowing individuals older than 70½ to make contributions to traditional IRAs.

The Life Insurance and Annuities (A) Committee voted to pass a strengthened annuity sales standard on to the NAIC Executive Committee and Plenary. The executive committee could take the final vote on the annuity rule changes early in 2020.

Once again, lawsuits and regulation were the most-read annuity topics on InsuranceNewsNet during 2019. Otherwise, readers were naturally interested in annuity sales rankings, among other topics. Here are the top five most-read annuity stories of the year.

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The U.S. Congress loves warm and fuzzy acronyms. Fees fell from an average of 0.34% of assets in 2009 to 0.25% of assets in 2016, according to BrightScope and the Investment Company Institute. As insurance companies gain greater access to sell annuities through 401 plans, participants may be more exposed to sales pitches for products that may not be in their best…

Massachusetts Secretary of the Commonwealth William F. Galvin has finalized regulations which “will impose a true fiduciary conduct standard in Massachusetts.” The new fiduciary standard will be enforced starting Sept. 1 for anyone selling financial products or giving advice in the state.

2019 annuity sales were very strong.

Total annuity sales of $241.7 billion in 2019 represented the best sales in 11 years as the industry continued to rebound from regulation and other pressures. Sales increased 3% over 2018 results, according to the Secure Retirement Institute Fourth Quarter U.S. Annuity Sales Survey.

Now that industry lobbyists were successful in getting a favorable NAIC Suitability in Annuity Transactions model update, the real work begins to get states to uniformly adopt it. New York has already opted for a tougher set of rules, while other states such as Massachusetts are in the process of doing the same.

After I wrote about the Setting Every Community Up for Retirement Enhancement Act, I received a slew of questions from readers. Frank from Chicago wanted to clarification about how the new rules impact non-spouses who inherit IRAs. He provided this example: “Suppose my 68- year-old wife dies in 2020 and leaves an IRA account with $100,000 to her 40- year-old son…

The National Association of Insurance Commissioners creates model laws for states to pass.

State insurance commissioners voted today to sent a strengthened annuity sales model law that adds a best-interest standard to the states for adoption. The successful vote came over the strenuous objections of New York Superintendent of Financial Services Linda Lacewell.

Security Benefit is asking a Florida court for a stay in a lawsuit challenging its use of proprietary indexes until a similar lawsuit is decided in a Kansas City appeals court. Both lawsuits claim the company’s use of the proprietary index amounted to racketeering.

American Equity Investment Life Holding Company, a leading issuer of fixed index annuities, today reported fourth quarter 2019 net income of $220.2 million, or $2.40 per diluted common share, compared to net income of $53.8 million, or $0.59 per diluted common share, for fourth quarter 2018. For the year ended December 31, 2019, net income was $246.1 million, or…

–CNO Financial Group, Inc. today announced that for the quarter ending December 31, 2019, net income was $278.0 million, or $1.84 per diluted share, compared to $28.3 million, or $0.17 per diluted share in 4 Q18. Net income for the year ended December 31, 2019, was $409.4 million, or $2.61 per diluted share, compared to a net loss of $315.0 million, or $1.90 per diluted…

Pacific Life Insurance Company has introduced the Retirement Income Translator, an online tool to help consumers understand what their retirement savings can mean when translated to retirement income. This new client resource creates a two-minute personalized video that aims to illustrate the potential benefits of protected lifetime retirement…

Brighthouse Financial, Inc. announced today its financial results for the fourth quarter and full year ended December 31, 2019. During the quarter, as a result of strong equity markets and rising interest rates, the value of our hedges, which the company uses to protect its balance sheet against adverse market conditions, decreased, as expected, while…

Merger activity continues to be very high in the insurance industry, new data indicates. The merger bug is even hitting trade associations.

Fidelity National Financial Inc. announced Friday a deal to buy insurer FGL Holdings in a deal valued at $2.7 billion. FGL’s stock rose 1.2% in premarket trading, after soaring 19.4% on Thursday.

FBL Financial Group, Inc. today reported net income attributable to FBL Financial Group for the fourth quarter of 2019 of $34.7 million, or $1.40 per diluted common share, compared to $6.4 million, or $0.26 per diluted common share, for the fourth quarter of 2018. Adjusted operating income totaled $34.8 million, or $1.41 per common share, for the fourth quarter of…

The Rolling Stones are touring again, with sponsorship from an unusual source.

The Alliance for Lifetime Income is proud to announce that it will be the sole sponsor of the 2020 Rolling Stones “No Filter” tour. This is the second consecutive year that the Alliance has sponsored the Rolling Stones’ U.S. tour.

Lincoln Financial Group today reported net income for the fourth quarter of 2019 of $431 million, or $2.15 per diluted share available to common stockholders, compared to net income in the fourth quarter of 2018 of $399 million, or $1.80 per diluted share available to common stockholders. “Fourth quarter results once again demonstrated our long-term track…

MetLife, Inc. today announced its full year and fourth quarter 2019 results. Net income of $536 million, or $0.58 per share, compared to net income of $2.0 billion, or $2.04 per share, in the fourth quarter of 2018. Adjusted earnings of $1.8 billion, or $1.98 per share, compared to adjusted earnings of $1.3 billion, or $1.35 per share in the fourth quarter of 2018….

Work continues on a fiduciary rule proposed by the Massachusetts Securities Division. The department posted 227 comment letters last week, three weeks after the comment deadline. A spokeswoman said all of the comments will be included in the rulemaking process.

CUNA Mutual Group issued the following news release:. CUNA Mutual Group Executive Vice President Laurie Winger has assumed the role of chief financial officer in combination with her existing duties as the company's chief product officer. “I'd like to thank Tom Merfeld for his 26 years of commendable finance and investment leadership,” said Robert N. Trunzo,…

Brighthouse Financial, Inc. announced today that it has entered the independent marketing organization distribution channel with Brighthouse SecureAdvantage SM 6- Year Fixed Index Annuity. SecureAdvantage 6- Year represents the latest collaboration between Brighthouse Financial and Market Synergy Group, a network of IMOs recognized for working…

Jackson National Life Insurance Company ® today announced that Axel André has been named Executive Vice President and Chief Financial Officer of Jackson. “I am delighted to welcome Axel to the Jackson team,” said Michael Falcon, Chief Executive Officer, Jackson Holdings, LLC.“ Axel has a proven track record as a strong leader as well as a fiduciary and risk…

Athene USA, a leading provider of retirement savings products, has added the Nasdaq FC Index, sponsored by Bank of America, and the AI Powered US Equity Index, sponsored by HSBC, to its suite of fixed indexed annuities. The annuities are issued by Athene Annuity and Life Company, a subsidiary of Athene. “By bringing these two innovative index options to our fixed…

–LPL Financial Holdings Inc. today announced results for its fourth quarter ended December 31, 2019, reporting net income of $127 million, or $1.53 per share. This compares with $120 million, or $1.36 per share, in the fourth quarter of 2018 and $132 million, or $1.57 per share, in the prior quarter. The Company's Board of Directors declared a $0.25 per share dividend…

Sammons Financial℠ companies are well known throughout the life insurance, annuity and retirement services industry and viewed as among the most stable, privately held financial services companies in the U.S. The Sammons Financial member companies include:. “We are excited to announce this brand refresh– anchored by a single oak leaf image– for our companies,”…

DPL Financial Partners, one of the leading insurance networks for registered investment advisors, today announced an agreement with Pacific Life to begin offering two of the insurer’ s guaranteed income products to DPL’ s over 400 RIA member firms. David Lau, Founder& CEO, DPL Financial Partners. “As we continue to work to bring commission-free products from top…

The lawsuit targets two of Security Benefit’s FIAs, the Total Value and Secure Income annuities, both of which were offered with proprietary indices that the company advertised as “capable of producing double-digit returns,” the lawsuit alleged.

Empower Retirement today announced the appointment of Jonathan Kreider as Senior Vice President and Head of Great-West Investments, the asset management unit of Empower Retirement. Jonathan Kreider has been named Senior Vice President and Head of Great-West Investments, the asset management unit of Empower Retirement. GWI will continue to build on its…

The tables are derived from the company’ s 2018 studies of VA and FIA mortality, which comprised experience from over 16 million annuity contracts. “Our new tables are purpose-built for deferred annuity products,” said Timothy Paris, Ruark’ s CEO.“ They are demonstrably better than standard industry tables for VA and FIA valuation. They include a table for VA…

The National Association of Insurance Commissioners creates model laws for states to pass.

The NAIC Executive Committee and Plenary will hold a joint meeting on Thursday, Feb. 13 and could vote to adopt new annuity sales rules. The model articulates a best-interest standard through the following four obligations: care, disclosure, conflict of interest and documentation.

A federal appeals court recently ordered the United States to make good on a structured annuity the former Executive Life Insurance Company of New York (ELNY) was paying to a burn victim. The decision calls attention to the security of long-term annuity promises when an insurance company goes out of business.

There are some significant changes to your retirement plans starting January 1, 2020. Among those are the Internal Revenue Service announcing cost-of-living adjustments for tax year 2020 and the new Secure Act, there is a lot to digest. Detailed in Notice 2019-59 and posted on IRS.gov, the IRS is increasing the contribution limits to your 401 and other…

Many companies are offering a lump-sum option to employees who have a vested defined-benefit pension. Companies make this kind of offer for their own benefit, of course, but taking the lump sum can be in the employee's benefit as well. There are advantages and disadvantages with each option.

Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act was included in the massive $1.4 trillion spending bill signed by President Donald Trump at the end of the year. Getting the rules loosened for annuities in plans is “a big win for the insurance industry,” says one industry expert.

LIMRA today announced three dynamic speakers to talk about what future customers will expect, what diversity and inclusion looks like and how technology will change customer expectations at the upcoming Distribution Conference.

Allianz Life, a provider of retirement solutions, including fixed and variable annuities and life insurance for individuals, issued the following news release:. According to the latest Allianz Quarterly Market Perceptions Study from Allianz Life Insurance Company of North America, worries about an impending market crash or recession are at their lowest…

Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.

Annuities provide guaranteed lifetime income, something that should be attractive to those who fear running out of money in retirement. So why aren’t more Americans buying annuities?

The most powerful way to get people to save for retirement in recent decades has been through benefits offered at their job. But a lot of people- about half the American workforce- don't get that from their employers. “Over 50 million workers right now don't have access to any retirement plan at all,” says David Certner, legislative counsel for AARP.

Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.

The SECURE Act includes three significant provisions relating to lifetime income.  These new provisions have the potential to both fundamentally reframe how participants view their accumulated 401(k) plan savings, and to generate an increasing level of participant interest in gaining “in-plan” access to lifetime income products.

The Board of Directors of American Equity Investment Life Holding Company announced today that Anant Bhalla will become American Equity’ s Chief Executive Officer on March 1, 2020. Mr. Bhalla will begin his employment with American Equity on January 27, 2020 as President and will also be appointed to American Equity’ s Board on that date. John M. Matovina, who is…

JOHNS CREEK, Ga., Jan. 09, 2020– Ebix, Inc., a leading international supplier of On-Demand software and E-commerce services to the insurance, financial, healthcare and e-learning industries, today announced that it has continued to expand on its market share in the industry by enabling the launch of USAA Life Insurance Company annuity products on its state of the…

Jan. 8– The rules of the retirement game just saw a sizable overhaul in Congress, giving a nod to the reality that many Americans can't afford to quit working. The changes aren't massive enough to put to rest concerns about an upcoming retirement crisis where some forecast a growing gap between the haves and have-nots. The new law, signed by President Donald Trump in…

Massachusetts Gov. Charlie Baker sent a letter Tuesday to Secretary of the Commonwealth William Galvin urging him to defer action on proposed fiduciary regulation. The proposal creates “confusion,” and ignores other state and national regulatory efforts, Baker wrote.

–Sammons Financial Group ® has named Bryce Biklen to a new role as vice president and chief distribution officer for Sammons Independent Annuity Group, a division of SFG. Those companies include North American Company for Life and Health Insurance ® and Midland National ® Life Insurance Company.. Biklen will be responsible for leading sales growth for the…

Pacific Life announced that the company’ s fee-based, advisory annuities are now available to independent registered investment advisers through TD Ameritrade. Expanding our distribution through them with our two fee-based annuities, Pacific Odyssey ® and Pacific Index Advisory ®, supports our overall strategy to provide broader access to our…

Great American Life ® expanded its fee-based product offering with the launch of two new fixed-indexed annuities. The Index Protector 4 and Index Protector 5 MVA annuities are designed specifically for advisors involved in fee-based planning, making it easy to incorporate these insurance products into their investment services. Whether they are…

On Dec. 20, the SECURE Act became law. We discussed how this bill passed in the House of Representatives earlier this year with 400- plus votes for and only three against. Congress realized that many Americans were not prepared for retirement.

Exclusive

Three key provisions of the SECURE Act will likely affect the way client’s handle their IRA. These provisions went into effect on Jan. 1 and include 1) eliminating the stretch provision on inherited IRAs, 2) increasing the RMD age from 70½ to 72, and 3) allowing individuals older than 70½ to make contributions to traditional IRAs.

The National Association of Insurance Commissioners creates model laws for states to pass.
Exclusive

The Life Insurance and Annuities (A) Committee voted to pass a strengthened annuity sales standard on to the NAIC Executive Committee and Plenary. The executive committee could take the final vote on the annuity rule changes early in 2020.

Annuities are attractive for advisors and clients because they offer income retirees cannot outlive.
Exclusive

Once again, lawsuits and regulation were the most-read annuity topics on InsuranceNewsNet during 2019. Otherwise, readers were naturally interested in annuity sales rankings, among other topics. Here are the top five most-read annuity stories of the year.

A 72- year-old former Menomonee Falls man was sentenced to six months years in federal prison Dec. 18 for failing to pay more than $1 million in taxes on millions of dollars he earned overseas and parked in secret Hong Kong accounts. John Miller Ragland, now living in Bonita Springs, Florida, pleaded guilty in June to one of the four counts in a 2018 indictment.

In May, the House of Representatives passed the bill, officially known as the Setting Every Community Up for Retirement Enhancement Act of 2019, by a remarkable 417-3 bipartisan majority. While that kind of political momentum is difficult to oppose, the bill's progress had been stalled by a small group in the Senate. Anxious to avoid a government shutdown, both…

The National Association of Insurance Commissioners creates model laws for states to pass.

If the A Committee formally adopts the reworked annuity sales model next week, as expected, then it will go to the National Association of Insurance Commissioners’ Executive Committee and Plenary for final approval. States will then be able to adopt the new rules in 2020.

William Blair and Co., an investment bank and financial services company, issued the following news:. The U.S. House of Representatives set the stage for sweeping changes to retirement accounts by adding provisions of the Setting Every Community Up for Retirement Enhancement Act to a 2020 appropriations bill. If the bill is signed into law by President Trump–…

The U.S. Capitol.

The bill also expands opportunities for workers to obtain guaranteed lifetime income products, increases the age at which required minimum distributions must be taken from retirement accounts and repeals the age limit for IRA contributors – all of which can help ensure that retirees do not outlive their retirement savings.

According to the SEC's order, MetLife improperly released reserves for annuity benefits associated with MetLife' s Retirement and Income Solutions Business, which resulted in an increase in income. The SEC's order also finds that MetLife overstated reserves and understated income relating to variable annuity guarantees assumed by a MetLife subsidiary….

Voya Financial has a deal to sell of closed blocks of life insurance and annuities.

Voya Financial has an agreement with Resolution Life Group Holdings whereby Voya will divest its Individual Life and other legacy non-retirement annuities businesses. The general account assets associated with the products included in this transaction were $24 billion, Voya said.

BNY Mellon, a banking and financial services holding company, issued the following news release:. BNY Mellon's Pershing announced that it has completed the integration of its managed accounts technology with its annuity order entry platform, Subscribe (R), delivering advisors streamlined annuity purchasing and servicing capabilities within its managed…