AXA reverses course on variable annuity buyout

Insurer had planned an offer to holders of its Accumulator Series variable annuity

Apr 16, 2018 @ 4:41 pm

By Greg Iacurci

AXA Equitable Life Insurance Co. is no longer proceeding with a variable-annuity buyout round that it had planned to do beginning in May.

"AXA has decided to not move forward with the buyout program at this time," AXA said in an email it sent to distributors today.

AXA had planned to offer a buyout to contract holders of its Accumulator Series 04 variable annuity beginning May 1, InvestmentNewsrecently reported. The buyout offer, which would have seen consumers terminate certain annuity benefits in exchange for an increase in their account value, would have pertained to those who bought the annuity between January and September 2005.

"After further evaluation, we have decided it is not the right time for AXA Equitable to extend this offer to contract holders," the message said. "Please note, we take decisions like this one seriously, and have carefully considered implications for all stakeholders, including our partners, contract holders and for our own business."

An AXA spokesperson declined further comment on the buyout decision.

Variable-annuity buyout offers have become common for legacy blocks of business insurance companies entered into before the financial crisis. Many insurers offered rich benefits that have proven costly to insurers due to prolonged low interest rates.

(More: Have variable annuities sales hit rock bottom?)

0
Comments

What do you think?

View comments

Recommended for you

Featured video

Events

5 tech innovations you can't afford to ignore

Technology innovation is always top of mind at Pershing. What does Pershing have on tap for 2018 and beyond.

Latest news & opinion

Mutual funds feel the pinch of platform fees

No-transaction-fee options are a big hit with investors, but funds wind up paying the costs — and passing them on.

Divorce reduces retirement readiness

The new tax law could increase financial challenges for divorced people, but planning opportunities abound.

Merrill Lynch fined $42 million for misleading customers

In addition to the practice of 'masking' trades, the wirehouse went to extremes to cover up the wrongdoing.

Advisers with billions in AUM leaving Wall Street

Merrill Lynch has seen two teams exit recently, each with more than $4 billion in client assets.

Wells Fargo weighs changes to wealth unit

The move would reflect the bank's effort to cut $4 billion in costs.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print