The Hartford’s decision to leave the individual annuity market doesn’t mean the insured retirement industry is struggling, according to the Insured Retirement Institute (IRI).
Clik here to view.
Cathy Weatherford
One day after The Hartford said it would drop annuities to focus on its property-casualty, employee benefits and mutual funds, the IRI said the annuity market is “in a financially strong position and poised for continued growth.”
IRI’s market analysis was based on new sales reports, research findings and emerging demographic trends.
The IRI said The Hartford represented 0.6% of all variable annuities sales in 2011.
“Across the board, all indicators point to a strong insured retirement industry including recent reports from leading rating firms that have underscored the stability of the life insurance sector—citing their strong capital and liquidity,” said IRI President and CEO Cathy Weatherford.
She added the IRI’s research, based on research with Cogent Research, is “the single most important retirement income goal for all investors is ensuring that they do not run out of money in retirement.”
“With variable annuity total sales and net flows reaching pre-crisis levels, and with the recent growth in income annuity sales, it’s clear that the insured retirement marketplace is robust and that a significant number of investors are seeking to attain lifetime income as part of their retirement strategy,” Weatherford said.
She called the market “ripe” for annuities, noting that fewer employers are offering their workers retirement plans. With 79 million baby boomers entering retirement and increasing life spans pushing up the cost of retirement, coupled with market volatility driving investor uncertainty, the market is strong for additional growth.
Annuity market ‘strong,’ poised to grow despite The Hartford’s exit via IFAwebnews.com .
No related posts.
Image may be NSFW.Clik here to view.
