Filed Under:Annuities, Sales Strategies

Are annuities too risky for insurance companies?

Photo credit: Idea go
Photo credit: Idea go

Are annuities too tough a business for insurance companies to be involved in?

The question naturally arises from Canadian life insurer Sun Life Financial’s decision to unload its U.S. annuity business through a $1.35 billion sale to Guggenheim Partners’ Delaware Life Holdings unit.

Moody’s put Sun Life’s Canada-based holding company on review for upgrade, saying the proposed transaction “is positive to the credit profile of SLF as it will eliminate the group’s exposure to the chronically poor earnings performance of the U.S. subsidiary, possibility of future charges associated with the U.S. subsidiary’s business, as well as the equity market and interest rate sensitivity of the run-off businesses.”

Mike Henkel of Achaean Financial, a developer of retirement advice software, agreed with Cooperstein that variable annuities are especially challenging to hedge.

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.