MetLife seeks reduced income-benefits for VAs

MetLife Inc., the top seller of variable annuities, is seeking permission from regulators to sell two new income benefits featuring lower withdrawal percentages for its variable annuity riders.
SEP 08, 2011
MetLife Inc., the top seller of variable annuities, is seeking permission from regulators to sell two new income benefits featuring lower withdrawal percentages for its variable annuity riders. The riders, GMIB Max II and the GMIB Plus IV, were filed with the Securities and Exchange Commission Aug. 17. The GMIB Max II will offer 5.5% income withdrawals, down from the 6% featured in the first iteration of the GMIB Max. The GMIB Plus IV will provide a 4.5% income benefit, down from 5% in the GMIB Plus III. These SEC filings arrive after Steve Kandarian, MetLife's chief executive, said on a second-quarter conference call that the insurer would make changes to its variable annuity features. “Like all of our businesses, we look for balanced growth,” he said. “We wouldn't want any one part of the business to overwhelm other parts.” MetLife had a banner second quarter for variable annuity sales, hitting $6.97 billion and reflecting a 55% increase year over year. Advisers don't believe the tweaks on the features will significantly stem inflows into MetLife's variable annuities; the GMIB Max — which was released in May — attracted a strong following for the 6% income benefit and still will seem attractive, even with a 50-basis-point trim. “I think you'll still see a lot of premium going their way; the changes don't seem significant,” said Tyler Denholm, a senior analyst at ValMark Securities Inc. “We sell a lot of MetLife and had a great year with them, even when the GMIB Max product came out.”

Latest News

GLP-1 users are trading retirement savings for their prescriptions
GLP-1 users are trading retirement savings for their prescriptions

A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.

Inspired Healthcare sale price of properties is 59% of $1.2 billion sold by advisors
Inspired Healthcare sale price of properties is 59% of $1.2 billion sold by advisors

The hundreds of millions of dollars from a sale of Inspired Healthcare properties does not mean an immediate windfall for investors.

Class action alleges Webull misled investors about China operations
Class action alleges Webull misled investors about China operations

Its SEC filings said one thing - a congressional probe said another.

Investors accuse Netcapital of inflating revenue through sham deals
Investors accuse Netcapital of inflating revenue through sham deals

Sham agreements allegedly padded revenue by 345%.

Pre-retirees are looking for flexibility, security, and guidance when it comes to retirement income: Cerulli
Pre-retirees are looking for flexibility, security, and guidance when it comes to retirement income: Cerulli

"Most pre-retirees are uncomfortable making key retirement income decisions without an advisor's help," said Chris Bailey of Cerulli.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor