Filed Under:Annuities, Variable

MetLife and Pru Square Off Over Contingent Deferred Annuities

MetLife is not only standing firm in its argument that contingent deferred annuities (CDAs) are instead financial guaranty products, it is ringing the solvency bell as a warning to insurance regulators about other life insurers who might underwrite the product as an annuity. 

Metlife said as much in a letter to the NAIC on Jan. 18. Regulators weighed in on a conference call on Jan. 19, struggling with the product’s classification, as MetLife and its business rival (but usual regulatory ally) Prudential Insurance Co. of America prepared to go to the mat with their positions.

Supporters of the product as a CDA raised the longevity protection element.

“Measurement and management of the risk (including hedging) associated with the guaranty on a CDA can be a more difficult undertaking than with variable annuities with living benefits,” MetLife argued.

Featured Video

Most Recent Videos

Prospects not listening to voice mail? Arrange a phone date

Provided by LIFEHEALTHPRO

Redesigning your phone life is more important than finding the “best words” for a voice mail in today’s culture.

Behind the scenes with Vicki Gunvalson [VIDEO]

Provided by LIFEHEALTHPRO

In this exclusive interview, Vicki Gunvalson shares how she built a $15 million a year annuity business by planning for...

Regulator: Market may need to reinvent LTCI

Provided by LIFEHEALTHPRO

Cioppa says Maine's governor wants to spur the creation of better products.

Dementia: It's more than Alzheimer's

Provided by LIFEHEALTHPRO

An association calls for policymakers to remember lesser-known neurodegenerative conditions.

Related resources

More Resources

Comments

Power your business with up-to-the-minute insurance news, analysis, and best practices from LifeHealthPro Daily eNewsletter – FREE.

Power your business with LifeHealthPro Daily eNewsletter – FREE.

Enter a valid email address.
Close
Nichole Morford

Nichole Morford
Managing Editor

Thank you for subscribing to LifeHealthPro Daily!

Check Out More eNewsletters Now! Close

Advertisement. Closing in 15 seconds.