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

INTV

FPA's Shannon Pike: What's next for the financial advisory profession?

As we head toward 2019 and beyond, regulation and compensation will continue to dominate the headlines. Shannon Pike of the FPA explains.

Latest news & opinion

LPL rolls back recruiting policy aimed at driving more assets to its corporate RIA

LPL erases $50 million hurdle for new advisers to join so-called hybrid firms.

Don't be fooled by the numbers — the industry is in a dangerously vulnerable state

Last year's stock market gains helped advisers turn in solid growth in assets and revenue, but that growth could disappear in the next market downturn.

Divided we stand: How financial advisers view President Trump

InvestmentNews poll finds 49.2% approve of his performance, while 46.7% disapprove. How has that changed over the course of his presidency?

10 states with the most college student debt

Residents of these states have the most student debt when you consider their job opportunities.

Ex-Wells Fargo brokers sue for damages, claiming they lost business in wake of scandals

In a Finra arbitration complaint, two brokers allege that Wells Fargo's problems damaged their business.

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