Aviva Cuts Next Tier of FMOs
- Thread starter Charpress
- Start date
- 1,704
HOT FLASH..... Aviva has suspended sales of new annuities!!
Are you for real? WHere did you read or hear this from?
What?????????????????? Where is the proof of this one??????
Last edited:
SmartMoney
Expert
- 46
Can anyone confirm? At the rate AVIVA has been headed this is mildly believable...
- 1,704
OK....I've been trying to get additional information and here is what I have so far. (dangling participle, I know)
First email stated that they were suspending any new annuity apps.@@@@@@@@@@@@@@@@@@@@@
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Then I got a phone call from Creative Mktg, and they said they knew nothing of this and that since they are owned by Aviva although they work independently (figure that one
out)they would know. I sent him this email and later called him...he said in asking around the office he was told that email pertained to the canceled FMO's. But the active FMO's could send in their apps. And today I had another email from a different Brokerage house confirm they were still taking AVIVA annuity apps. So you tell me if the above email sounds like it's directed to canceled fmo's only, or everybody. Either way....the alert has been posted. I guess we can all sell until the Fat Lady Sings, and if the curtain comes down, hope you have other things to do.
Sorry if I upset anyone here....i'm still trying to sort out this industry myself and figure what the future trends are.
Regards,
Helen
First email stated that they were suspending any new annuity apps.@@@@@@@@@@@@@@@@@@@@@
Effective immediately, Aviva has suspended sale of all annuities. We have not yet received the
official announcement. Once that is received, we will forward it to the field.
Aviva has experienced tremendous growth in their annuity business over the past two years. Aviva
wrote an estimated $2,270,982,682 in annuities in just the fourth quarter of 2008. For all of 2008
they wrote an estimated $7,088,808,544 in annuities (source indexannuity.org). According to the
statistics, Aviva has written more fixed annuities in the past year than any other carrier in the US.
Because of the current market conditions, Aviva has decided that the underlying investments
purchased to back the annuities, do not provide enough margin to make this a profitable business
at the current time. It is our understanding that the annuity business at Aviva will be suspended for
the remainder of 2009 unless market conditions provide otherwise.
Aviva is still dedicated to focusing on growing their life business. As you know, Aviva has an
excellent and very competitive life portfolio. Their fixed index guaranteed no-lapse UL is second to
none in the industry. You can find complete product detailsofficial announcement. Once that is received, we will forward it to the field.
Aviva has experienced tremendous growth in their annuity business over the past two years. Aviva
wrote an estimated $2,270,982,682 in annuities in just the fourth quarter of 2008. For all of 2008
they wrote an estimated $7,088,808,544 in annuities (source indexannuity.org). According to the
statistics, Aviva has written more fixed annuities in the past year than any other carrier in the US.
Because of the current market conditions, Aviva has decided that the underlying investments
purchased to back the annuities, do not provide enough margin to make this a profitable business
at the current time. It is our understanding that the annuity business at Aviva will be suspended for
the remainder of 2009 unless market conditions provide otherwise.
Aviva is still dedicated to focusing on growing their life business. As you know, Aviva has an
excellent and very competitive life portfolio. Their fixed index guaranteed no-lapse UL is second to
@@@@@@@@@@@@@@@@@@@@@@@@
Then I got a phone call from Creative Mktg, and they said they knew nothing of this and that since they are owned by Aviva although they work independently (figure that one
out)they would know. I sent him this email and later called him...he said in asking around the office he was told that email pertained to the canceled FMO's. But the active FMO's could send in their apps. And today I had another email from a different Brokerage house confirm they were still taking AVIVA annuity apps. So you tell me if the above email sounds like it's directed to canceled fmo's only, or everybody. Either way....the alert has been posted. I guess we can all sell until the Fat Lady Sings, and if the curtain comes down, hope you have other things to do.
Sorry if I upset anyone here....i'm still trying to sort out this industry myself and figure what the future trends are.
Regards,
Helen
Ichiban
Expert
- 62
From what I understand after speaking to some consultants for them they are targeting a 20% reduction in premium from the previous year (2008). They still want to be number 1 but not by as much of a large margin as they were.
Will this succeed? Who knows. I have a feeling it may backfire because of the way the handled their communication but time will tell.
They are not stopping all business only cutting down the distribution network to slow business down and preserve their capitol.
At least that is what I have heard and believe to be true.
Will this succeed? Who knows. I have a feeling it may backfire because of the way the handled their communication but time will tell.
They are not stopping all business only cutting down the distribution network to slow business down and preserve their capitol.
At least that is what I have heard and believe to be true.
I saw an annoucement on their website pertaining to the life insurance focus going forward but it said nothing about suspending all annuity sales. I, like a lot of others were upset when Aviva cut some marketing organizations, mine included. It cost me two deals for over $150,000 but I was able to save two others. I think they really mishandled the way this was done, with no warning to the agents in the field. I think this will hurt them in the long run and I will adapt and move on,but not forget. In my world $12,000 in commissions is a big thing!
