Steve Kluever has parted ways with Jackson National Life Insurance Co., joining The Hartford Financial Services Group Inc. and heralding a new push in variable annuity development for the insurer.
He helmed product development at Jackson as senior vice president of product and investment management. In his new role, Mr. Kluever will be vice president of annuity product and marketing — a newly created position.
The announcement came as a surprise to industry insiders, who note the different trajectories that Jackson and The Hartford have taken in the years following the financial crisis.
Prior to the meltdown, The Hartford was among the top sellers of variable annuities, finishing 2006 in fourth place, according to LIMRA.
However, its standing came under siege when the crisis struck, and The Hartford experienced VA hedging losses related to market volatility.
THIRD-LARGEST SELLER
These days, Jackson is enjoying its position as the third-largest seller of variable annuities, while The Hartford was in 20th place in last year's rankings, according to LIMRA.
The two firms also took different approaches to product development. Jackson has given financial advisers and clients free rein over some 99 VA subaccounts, while The Hartford moved to derisk its product line.
“It's a dramatic difference in terms of where[Jackson] is,” said Tamiko Toland, managing director of retirement income consulting at Strategic Insight. “Jackson has had a lot of latitude in product design since the crisis, and Hartford has been boxed in because of its situation.
“I think The Hartford is clear that it wants to be engaged in the VA market, but it has limits in how it can be engaged — it can't take on very aggressive risk,” Ms. Toland said. “It's a matter of finding the right alchemy of what they're reasonably able to manufacture and what the appetite is in the marketplace, as well as working with a transformed distribution system.”
The Hartford recently made additions to its annuity wholesaling force and expects to introduce enhancements to its Personal Retirement Manager VA in the second quarter.
E-mail Darla Mercado at [email protected].
