While they are looking for a huge increase in fixed annuity sales as well, MetLife already holds the top spot in variable annuity sales. According to Annuity News Journal’s Steve Thompson, “MetLife Leads the Way in Variable Annuity Sales.” They have made the customers better deals and while that coupled with a volatile market may hurt their short term earnings, they are not concerned about that for the long term. The economic crisis of the past two years actually caused a decline in variable annuity sales because investors were seeking the comfort of a fixed annuity more often. Now that investors are looking more towards their possible gains with variable annuities, fast growth could be a concern. But MetLife is not worried about this growth because of their long history and sound business.
There have always been naysayers, saying that variable annuity products are too expensive and that they aren’t worth their guarantees against a stock market decline. They have to change their tune after the ridiculous stock market losses that investors have incurred over the past couple of years. Even if your variable annuity declined in value, your guarantees saved you from losing any of your principal investment. That guarantee surely doesn’t seem so expensive anymore now that your retirement income is safe. When you compare annuities, some even give you annual increases when the stock market is declining and most offer guaranteed lifetime income. Variable annuities really do make sense for investors, even with any fees associated with the products. MetLife’s booming variable annuity sales are proof positive.
Written by Rachel Summit