Prudential to End Sales of Variable Annuities With Guaranteed Living Benefits

[Northeast Agent]

Prudential to End Sales of Variable Annuities With Guaranteed Living Benefits | ThinkAdvisor

Reducing exposure to changes in market conditions and interest rates the company stated, adding it will instead focus on other sources of revenue that are less rate sensitive.

 

[Tahoe Ray]

Prudential to End Sales of Variable Annuities With Guaranteed Living Benefits | ThinkAdvisor

Reducing exposure to changes in market conditions and interest rates the company stated, adding it will instead focus on other sources of revenue that are less rate sensitive.

Crazy to see one of the biggest VA carriers exit.

The next few years is going be tough for these insurers.

 

[DHK]

Whoa!

That news is as big as when The Hartford left the VA space. That's interesting.

I may be having a brainfart or something, but have any indexed annuities left the indexed annuity market??

 

[Tahoe Ray]

Whoa!

That news is as big as when The Hartford left the VA space. That's interesting.

I may be having a brainfart or something, but have any indexed annuities left the indexed annuity market??

Great American halted sales on their best riders and all carriers have "de-risked" their living benefits to some point but that's all that I'm aware of.

ING closed down US variable sales in 2010 after being the #1 VA carrier in 2007.

Don't blink or you could miss something.

 

[Mike Siegal]

Seems like many Companies are eliminating the 'Variable' option.

What about their Fixed Rate product....is it still offered ???

 

[Tahoe Ray]

Seems like many Companies are eliminating the 'Variable' option.

What about their Fixed Rate product....is it still offered ???

This is the first major one that I can remember in the last 10 years (I guess you can count Ohio National).

Does Pru have an indexed product? I don't know.

I know that Jackson, Aliianz, AIG and a few of the other big players have both variable and indexed but I've never run into a Pru FIA.

 

[scagnt83]

Does Pru have an indexed product? I don't know.

I know that Jackson, Aliianz, AIG and a few of the other big players have both variable and indexed but I've never run into a Pru FIA.

https://www.prudential.com/advisors/annuities/annuity-strategies/prusecure-fixed-indexed-annuity

It exists. Never seen it or heard about anyone selling it before though.

 

[scagnt83]

Seems like many Companies are eliminating the 'Variable' option.

What about their Fixed Rate product....is it still offered ???

The headline indicates its just Income Rider sales. Is it all VAs?

 

[DHK]

I think it's just the riders... but without those riders, why would someone want to buy a variable annuity? Sure, you can annuitize it at any time, but I wouldn't want it.

 

[scagnt83]

I think it's just the riders... but without those riders, why would someone want to buy a variable annuity? Sure, you can annuitize it at any time, but I wouldn't want it.

I can't think of any good reason in modern times.

There have always been reasons advisors give... no trade fees in the subaccount, institutional funds not available on the retail market, etc.

Most other than annuitization have been made irrelevant by the modern retail market. And ultra low rates have made annuitization mostly irrelevant.

Pru had some crazy high lock-in amounts on their old products. 2009-2011 wasn't easy for them at all. Rates kept going lower. I don't think they ever recovered.