Dividend announcements

[Lloyds of Lubbock]

NY Life has declared a 20 basis point increase.
For some reason the file of the announcement will not attach.
If you want the announcement (nothing groundbreaking)
www.newyorklife.com

 

[PrivClientSG]

Mass Mutual announced a 30 basis point increase, to 6.4%

 

[PrivClientSG]

Northwestern announced a 35 basis point increase, to 5.5%

 

[scagnt83]

Penn Mutual increased to 6%.

Guardian does not announce until 1st week of Dec.

 

[Tahoe Ray]

This is the MLB hot stove season for insurance geeks.

 

[Lloyds of Lubbock]

Years ago these announcements actually gave you some real information.
They would disclose if the other components of the dividend changed.
Mass Mutual did not apply the same rate to all of it's policyholders.
The Connecticut General block they bought used to get a different dividend.
Maybe now that has changed.

 

[scagnt83]

Years ago these announcements actually gave you some real information.
They would disclose if the other components of the dividend changed.
Mass Mutual did not apply the same rate to all of it's policyholders.
The Connecticut General block they bought used to get a different dividend.
Maybe now that has changed.

I'm pretty sure Penn Mutuals announcement only applies to policies sold after a certain year.

 

[Lloyds of Lubbock]

I think it was Penn last year that came out and said older policies get a lower dividend interest rate.

 

[PrivClientSG]

As many here well know, the dividend rate declared is meaningless -- 5.8%, 6%, 6.2%, etc.

More important, also as many here well know, some of the important factors and some of the important information that goes into the dividend calculation, is not immediately clear. The information can be extremely difficult to decipher, yet alone obtain.

We have seen carriers go from a "gross" dividend methodology to a "net" dividend. We have also seen various factors -- costs, charges, variables that will reduce the dividend, etc. -- included, that were not included before. One major carrier started "subtracting" (from their dividend calculation formula) an item of income, which now instead of increasing the dividend, reduced it. They turned an asset into a cost. When questioned, the carrier said it only impacted the dividend by approximately 10 basis points. IMO that is a very big number. On $1B of dividend dollars, that's $10 million that does not get paid into the policies of policyowners!

 

[scagnt83]

One major carrier started "subtracting" (from their dividend calculation formula) an item of income, which now instead of increasing the dividend, reduced it. They turned an asset into a cost. When questioned, the carrier said it only impacted the dividend by approximately 10 basis points. IMO that is a very big number. On $1B of dividend dollars, that's $10 million that does not get paid into the policies of policyowners!

Which one?