Annuity FYI Blog

The editors at Retirement Income Journal put together “The Bucket,” an article summarizing Financial Engines’ third quarter financial results.  The investment management company which gives retirement planning advice to employees saw a 45% increase in the assets they manage and a 31% increase in revenue this quarter over the third quarter of 2009.  The article highlights the successes of the insurance companies that Financial Engines works with.

Jackson National Life sold more variable annuities in the first three quarters of this year than they have in any whole year in the past.  Their Perspective II showed large sales increases and was the top selling variable annuity in the retail sector for the third year in a row.  Although their sales of fixed indexed and fixed annuities declined slightly due to lower interest rates, Jackson maintains a strong presence in the sales of both products which helps preserve their capital.

Allianz Life Insurance Company of North America had an increase of 36% in their sales of fixed indexed annuities and a 275% increase in variable annuity sales over the third quarter of last year.  The Inflation Protector variable annuity from Penn Mutual, blogged about in a previous post, is expected to be a hot new product in the marketplace.  American Equity Investment Life Holding Company showed an increase in annuity sales, based on what they believe is an increased demand for safe investments to counteract a volatile market.

This brief summary of the companies working with Financial Engines gives a positive outlook to their working relationships with investors and employees.  Much more can be found in the original article detailing even more changes that have occurred this third quarter of 2010.

The Inflation Protector Variable Annuity from The Penn Mutual Life Insurance Company is new to the market and sure to excite some investors.  Penn Mutual has been around for 163 years and is a market leader in regards to retirement income that is protected against inflation.  This information was published in The San Francisco Chronicle from a company press release entitled “The Penn Mutual Life Insurance Company Announces Next Generation of Inflation-Protected Retirement Income Product.”  Investors using this variable annuity remain invested in the market, but also have protection from inflation and volatility.

By combining the variable annuity and living benefit rider, investors’ income base is actually increasing during the deferral and withdrawal phases with this annuity.  The amount is the greater increase between the Consumer Price Index or annual market performance.  Investors can choose to have guaranteed income for either 20 years or over their lifetime.  A death benefit annuity option is available so that this variable annuity can use either a Single Life or Joint Life guarantee.  While there may be a tax penalty for withdrawing funds early, if the need arises investors can access their money without having to start receiving their monthly income.  With many investment options and protection against inflation, Penn Mutual’s Inflation Protector Variable Annuity may be the right product for you.

Penn Mutual has good news for their clients and potential clients according to company press release “The Penn Mutual Life Insurance Company Enhances Living Benefit Rider for Annuity Product.”  They have improved their Growth and Income Advantage Benefit (GIAB).  The GIAB is a living benefit rider that is offered with Penn Mutual’s variable annuities.  The changes help clients increase their accumulation potential and manage their risk better at the same time that they help secure retirement savings during changing economic conditions.  The GIAB guarantees income growth and offers two different options for withdrawals.

The following changes highlight why Penn Mutual believes it has one of the best annuities available to its clients.  The guaranteed accumulation rate has increased to 6% from 4% for the withdrawal benefit base.  Also, the guaranteed withdrawal percentage has gone up to 5% from 4% for the lifetime income option.  Perhaps most exciting for Penn Mutual’s clients is that they will not be paying more for these enhancements to the Growth and Income Advantage Benefit rider.  They will still maintain all of the other benefits offered with their annuity, they’ll get these enhanced benefits, and they will pay the same fees.