Is Insecurity at the Hartford Next for Investors in Variable Annuity Benefits?
them for tremendous good. It wasn’t long ago that the variable annuity industry sold many retirees a very similar story. You too could have a super-powered retirement. Your ordinary portfolio that had suffered through the ups and downs of the markets could now do the impossible. It would grow – hypothetically – year-in and year-out, and you could take that growth and turn it into an income in the future. The income based on this ‘hypothetical’ growth was of course ‘guaranteed.’ And while all of this wasn’t a long time ago, in a galaxy far, far away, it appears the cracks in the superhero suit are starting to show. The Hartford, a company that sold these products, recently posted its third consecutive quarter with a loss, partially due to lower revenue from their variable annuity products. This quarter’s loss grew to $1.2 billion. During a recent conference call CEO Ramani Ayer admitted that “the risk-reward ratio in the VA market just doesn’t make any sense,” and that the company would
Related Questions
- May I receive benefits from the Annuity Plan prior to retirement, withdrawal from the industry or total disability?
- If an employee dies before retirement age, do those years qualify in determining additional survivor benefits?
- Is Insecurity at the Hartford Next for Investors in Variable Annuity Benefits?
