Pru Puts Individual Annuities on Diet
February 9, 2021 by Allison Bell
Prudential Financial Inc. wants to shed much of the benefits-guarantee-based annuity business now on its books, in addition to ending sales of annuities that come with significant benefit guarantees.
Charles Lowrey, the Newark, New Jersey-based insurer’s CEO, and other Prudential executives talked about the company’s new attitude toward annuities last week during an earnings call with securities analysts.
Click HERE to read the full story via ThinkAdvisor
Wink’s Note: Structured annuities (which some also refer to as “Registered Index-Linked Annuities, or RILAs) are NOT merely “…indexed annuit[ies] that [are] filed as a variable-rate product.”
Indexed annuities have floors of no less than 0% annually; they are insurance products.
Structured annuities actually have NEGATIVE floors; their purchasers are subject to losses, as a result of the market’s movement (subject to limits); these are securities.
Imagine what would happen if a regulator, who is not an insurance expert, read articles like this and got their sights set on setting consumers straight about such “indexed annuities!”
The Securities and Exchange Commission has already erroneously mistaken structured annuities for indexed annuities with their 08/13/2019 “Investor Bulletin” on “Indexed Annuities? – sjm
