Annuity News

Operation Twist and the Yield Curve

There is a great op-ed in Bloomberg by Caroline Baum that discusses the implications of QE2 and other recent asset purchases made by the Fed. Operation Twist refers to the last time the Fed tried (and failed) to manipulate the yield curve (the spread between the Fed's overnight rate and long term rates that are determined by the market) in 1961.

Deferred Annuity Payments Receive Tax Break from Small Business Jobs Act

Owners of non-qualified deferred annuities will benefit from a provision included in the recently passed Small Business Jobs Act of 2010.
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Pimco Bearish on the Prospect of Long Term Deflation

Pacific Investment Management Company (Pimco)--the large asset manager headed by Bill Gross--has taken a position that reflects skepticism of the possibility of long-term deflation in the United States. During the first half of 2010, Pimco entered into derivative contracts with a notional value of $8.1 billion.
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Survey Reveals High Levels of Confusion about Fiduciary Status

A survey conducted this past August confirms that consumers are confused by the different standards that apply to various types of financial advisors. 76 percent of the 1,319 survey respondents mistakenly believe that brokers are required to act as fiduciaries and serve the best interests of their clients.
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Study Finds a Link Between Moderate Alcohol Consumption and Longevity

Scientists at Stanford University and the University of Texas at Austin published a study that suggests moderate to heavy alchohol consumption may actually be beneficial from a longevity perspective. The study tracked 1,824 individuals over a 20 year period. It should be notes that the study focused on individuals between the ages of 55-65. Results indicate: Moderate drinkers (those who consume between 1 and 3 drinks per day) have the lowest mortality rates. Controlling only for gender and age...

Swiss Re Publishes a Report on the Growing Challenges Associated with Longevity Risk

The reinsurance company Swiss Re recently published a comprehensive report that highlights the risks many societies face as a result of ageing populations and increased life expectancies.
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Retail Investors Moving Money into Bond Funds at Record Pace

Over the past several years, retail investors in the United States have been moving their money into bond funds at a pace not seen in 23 years. The movement of money into fixed income funds by individual investors has outpaced contributions into equity funds for 30 straight months.
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Variable Annuity Sales in U.S. Post Largest Gain in Two Years

U.S. variable annuity sales totaled $35.5 billion in the second quarter of 2010. This represents an 11 percent increase from the same period in 2009, and the gain is the largest since 2007. Prudential was the leader during the period with $5.3 billion in sales--a significant increase relative to $3.38 billion during the same period the previous year. Variable annuity sales at AIG increased 45 percent to $1.58 billion. The largest U.S. life insurer, MetLife, had $4.5 billion in variable annuity...
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