MetLife reins in popular VA benefits rider — again

MetLife Inc., the largest seller of variable annuities, is pulling back on a popular income rider for its variable annuity. On Oct. 14, MetLife submitted a filing to the Securities and Exchange Commission announcing its intentions to launch the Guranteed Minimum Income Benefit Max III or GMIB Max III, which would give clients access to a 5% income withdrawal benefit. That's down from the 5.5% benefit on the GMIB Max II. If the GMIB Max III is approved, sales of the GMIB Max II will cease. MetLife spokeswoman Holly Sheffer confirmed the change, noting that it's “the company's response to prolonged low interest rates and a challenging capital markets environment.” This update marks the second such product adjustment since the GMIB Max's release in May. The rider attracted a mighty adviser following, as it initially offered a 6% income withdrawal benefit. MetLife's ability to offer an attractive benefit at a time when its largest competitors were clamping down on generous features helped boost the insurer's VA sales to $6.97 billion in the second quarter, reflecting a 55% increase year over year. RELATED ITEM Advisers favorite VA providers The runaway growth led MetLife on Aug. 17 to pull back on income benefits on the GMIB Max to 5.5%, from 6%. That same day, the carrier also filed its GMIB Plus IV, which would provide a 4.5% income benefit, down from 5% in the GMIB Plus III. MetLife will announce its third-quarter earnings today after the market closes and will host its earnings conference call tomorrow morning.