From the desk of Ronald J. Grensteiner, CLU, ChFc, President of American Equity
May 3, 2016 by Ronald J. Grensteiner
Since American Equity’s first quarter press release and earnings call, articles have appeared that are inaccurate and not complete. The company wanted to provide clarifying commentary on their interpretation of the DOL rule and how it affects all of us. Click HERE to view
Articles in question:
American Equity: DOL Rule Threatens Independent Annuity Agents
“The CEO of a top fixed indexed annuity (FIA) carrier on Thursday raised serious questions about the viability of supervising independent insurance agents involved in the sale of FIAs under the Department of Labor’s fiduciary rule.
The liability associated with the rule’s Best Interest Contract (BIC) could cause carriers to pivot away from independent insurance agents and toward broker-dealers and banks instead, said John Matovina, president and CEO of American Equity Investment Life Holding.
In the independent agent channel, supervisory financial institutions such as insurance companies risk legal exposures that “we’re very likely not interested in,” Matovina said during the company’s first-quarter earnings call Thursday.” Click HERE to view full article. INN news articles may require a subscription to view.
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First Sign of Blood from DOL Fiduciary Rule
In an aftershock of the April 6 release of the Department of Labor’s “fiduciary rule,” American Equity Life, the second larger issuer of fixed indexed annuities in 2015, told analysts on its Q1 earnings call yesterday that the new rule might hurt the distribution and sales of its flagship products.
The company’s stock fell 10% during the half hour before the 10 a.m. call began. The share price instantly bounced back only to slump again, ending the day at $14.33, down 12.68%. Since last November, AEL stock’s value on the NYSE has fallen by almost half. Its FIA sales in 2015 were $6.95 billion, second only to Allianz Life, and 67% higher than in 2014.
Click HERE to view full article. This article does require a subscription to view.
