Ohio National, a big variable annuity provider, exits the annuity business

Sep 7, 2018

  1. Mr_Ed
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    Mr_Ed, Sep 7, 2018
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  2. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Not at all.

    https://insurance-forums.com/commun...-retirement-plan-business.95200/#post-1262697

    It makes perfect business sense for Ohio National. When agents talk about Ohio National, we talk about their life insurance products. When you attend an Ohio National regional meeting, they're talking about their life insurance.

    Considering the regulatory nature (and reserve requirements) of annuities and company retirement plans, I don't doubt that they decided to do the "hedgehog theory" in Good to Great and just focus on what they do best.
     
    DHK, Sep 7, 2018
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  3. Tahoe Ray
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  4. Tahoe Ray
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    He's busting chops...
     
  5. DHK
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    DHK "YOU CAN'T HANDLE THE TRUTH!"

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    Ah. I was kinda wondering how this got to the LTC forum. lol.
     
    DHK, Sep 7, 2018
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  6. ltcadviser
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  7. Mr_Ed
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    Of course the variable annuity business must be dead now. When a company stops selling new policies then that insurance product is officially dead. That's what everybody says about long-term care insurance. It must be true for variable annuities, too.
     
    Mr_Ed, Sep 8, 2018
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  8. scagnt83
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    scagnt83 Worldwide Expert of Everything

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    Ohio National's VA business is not in the red. Most LTCI books of biz are without the huge rate increases we have seen.

    Ohio National has around 1% of market share... far from being a "big provider". VA assets might account for around 2% of their annual revenue.


    But you do have a point, VA sales have been dropping. Mainly because IAs are able to provide similar benefits with less risk. Just like new forms of insuring against LTC provide the client with less risk and similar benefits.
     
    Last edited: Oct 5, 2018
  9. Life Hawk
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    Was told long ago to stay away from VA's... good advice still. :yes:
     
  10. Mr_Ed
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    The problem with "new forms of insuring against LTC" is not that the new forms have less risk. The problem is the "new forms" (which are really nothing but new packaged versions of overpriced cash value life insurance) is the cost of the new forms.

    If hybrids cost the same as traditional LTCi, there would be no market for traditional LTCi and hybrids would be selling like crazy.

    Hybrids typically costs 2x to 4x what a traditional LTCi policy costs. AARP got it right:


    5 Facts You Should Know About Long-Term Care Insurance


    :-)
     
    Mr_Ed, Oct 6, 2018
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