ORLANDO – Large broker-dealers and wirehouses are tuning into income annuities, to the point that they are asking for support and information about the products, according to Gary Baker, president of CANNEX USA.

In an interview before his talk here on the opening day of the Retirement Industry Conference, Baker said this is one of several signs he sees that income annuities are now cool, or at least beginning to be so.

His Doylestown, Pa., firm is the U.S. division of CANNEX Financial Exchanges Ltd., Toronto. The firm gathers and compiles interest rates and calculation values on income annuities and, in the process, works with a variety of annuity distributors. continue

Mercury News reporter Lisa Krieger’s compelling, poignant tale Sunday of her father’s final 10 days of life and the extraordinary hospital costs they entailed should be required reading for all. For doctors. For hospital administrators. For health care policy makers, both elected and professional. And, although it is painful, for every one of us with aging parents or friends — or with a creeping sense of our own inescapable mortality.

Krieger puts it best: “My father’s story — the final days of a frail, 88-year-old with advancing dementia at the end of a long and rewarding life — poses a modern dilemma: Just because it’s possible to prolong a life, should we?” continue

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New Commonwealth Fund Survey Finds Profound Income Divide in Health Insurance and Access to Health Care; Health Reform Could Nearly Eliminate Gaps When Fully Implemented in 2014

Adults in low- and moderate-income families are more likely to be uninsured, to lack a regular source of health care, and to struggle to get the health care they need compared to those in higher-income families, according to a new Commonwealth Fund survey. The survey found that 57 percent of people in low-income families–those earning less than $29,726 for a family of four (133 percent of poverty)–were uninsured for some time in the past year, and 35 percent had been uninsured for two years or more. More than one-third (36%) of adults in moderate-income families–those earning between $29,726 and $55,875 for a family of four (133 to 249 percent of poverty)–were uninsured during the year, and 18 percent had been uninsured for two years or more.

In contrast, just 12 percent of adults in families with incomes at or above $89,400 for a family of four (400 percent of poverty) were uninsured during the year, and only 3 percent were uninsured for two years or more. continue

American workers will be better able to access annuities and address their lifetime retirement security needs under a series of steps taken today by the U.S. Treasury and Labor Departments, said the American Council of Life Insurers (ACLI).

Treasury’s actions will make it easier for workers participating in employer-sponsored retirement plans to use a portion of their savings to acquire an annuity that offers guaranteed income for life. Treasury would eliminate some of the burdens that discouraged retirement plans from offering annuity options to participants.

“Treasury has advanced a major plan to address our nation’s retirement income crisis. Millions of American workers are not prepared for the challenge of managing assets through a lengthy retirement. They face a real risk of outliving their assets, possibly facing economic hardship at one of the most vulnerable stages of their lives. Helping today’s workers achieve lifetime retirement income can help avert a crisis in the years ahead, when much of the baby boom generation will leave the workforce,” said ACLI President and CEO Dirk Kempthorne.

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Vermont employers offered a range of views to lawmakers on the future of the state’s health care reform, but most of those testifying at a public hearing appeared to favor a go-slow approach.

The House Health Care and Senate Health and Welfare committees took testimony Wednesday evening at a public hearing attended by about 80 people.

Vermont last year passed legislation outlining a plan to move the state first to the health care marketplace _ or “exchange” _ called for under the federal health reform last passed two years ago, and then beyond that to something approaching a single-payer, government-backed plan by 2017.

This year, the House panel has been considering the first in what’s expected to be a series of bills to implement that broad plan.

One provision in this year’s bill that drew criticism from several of those testifying would outlaw so-called “bronze” insurance coverage plans, with high deductibles but which carry lower premium costs. continue

MetLife, Inc. (NYSE: MET) announced that it has, through a subsidiary, purchased EnV, a luxury multifamily property located in Chicago’sRiver North neighborhood. The company purchased the property from LYND Development Partners, the original builder of the tower.

“EnV is an excellent fit for MetLife’s real estate equity strategy of acquiring core properties in top-tier markets,” said Robert Merck, senior managing director and head of real estate investments for MetLife. “We manage each of our investments for the long-term, and we are pleased to add this best in class property to our portfolio.”

Lynd Development Partners, a subsidiary of LYND, which is a national real estate investment and management company based in San Antonio, Texas, launched the development of EnV in 2008.

“Even though we were in the midst of a tough recession, our research told us Chicago was underserved with a luxury rental product,” said A. David Lynd, president and chief operating officer of parent company LYND. When EnV was delivered to the market last summer, it commanded the highest rental rates in the city. A year and a half later, rental rates have continued to rise.

EnV was one of the first LEED-certified rental properties built in Chicago. The 249-unit, 29-story tower offers studio, one-and-two bedroom and penthouse apartments and also has 27,000 square feet of retail and restaurant space on the first three floors. The development is conveniently located directly across the street from the Merchandise Mart and adjacent to an “El” subway station. This past fall, EnV was named 2011 “High Rise of the Year” by Multifamily Executive.

Apartment features include bamboo floors, stainless steel appliances, built-in wine racks, all glass balconies and floor to ceiling windows throughout. Community features include full-service concierge services, a media room, juice and coffee bar and wireless Internet throughout the entire building. EnV also provides a special technology package called “The EnVironment” that allows residents to use smart phones for such activities as scheduling private training sessions, paying rent or submitting a work order. The rooftop has a pool terrace with chaise lounges, a 24-hour fitness center overlooking the city skyline and a catering kitchen.

With the success of EnV, LYND is currently weighing new multifamily development opportunities.

“There are a lot of good opportunities in markets where land and construction pricing is well below the peak and where yields are as attractive as we’ve seen for urban infill,” said LYND CEO and Chief Investment Officer Michael J. Lynd, Jr. “Rental demand in the U.S. overall is very strong, but we continue to be highly selective when choosing markets and sites.”

CBRE’sChicago office brokered the sale on behalf of the seller.

MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 50 countries. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East.

Based in San Antonio, Texas, with corporate offices in Miami and Denver, LYND is a family-owned, national real estate company that develops, manages, finances and invests in multifamily, hospitality and commercial properties. With more than 30,000 residential units under management in 13 states, LYND is listed in the Multi Housing Council’s list of the “Top 50 Apartment Managers” in the United States.

(c) 2012 Telecommunications Weekly via VerticalNews.com

MetLife moved up the ranking of the world’s largest insurers, making it and American International Group the only U.S. insurers in the top five, based on assets, according to a new ranking in BestWeek U.S./Canada. By premiums, UnitedHealth Group was the only U.S. insurer to rank among the top five.

Overseas insurers continued to dominate the ranking — by assets and by premiums written — with Japan Post Insurance Co. once again coming in at No. 1 by assets and Axa S.A. again topping the net premium written list.

MetLife, which clocked in at No. 7 last year, jumped to the fourth-largest insurer, based on assets of $730.9 billion. Meanwhile, AIG slid from No. 3 to No. 5, with assets of $683.4 billion.

In BestWeek Europe, with much of the expected $5 billion or so in insurance coverage needed for the London 2012 Summer Olympics already on their books, underwriters appear confident of their ability to cover the games. continue

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MetLife officials on Tuesday rebuffed claims that they are steering business away from independent agents through a sales promotion that offers a year of free auto insurance to new car buyers in the Pacific Northwest.

The trial incentive, which is available to anyone who buys a new General Motors vehicle by Sept. 6 in Washington and Oregon, has been criticized by associations that represent independent insurance agents for removing them from the policy-buying process.

But that’s not entirely accurate, according to a MetLife Auto & Home spokesman.

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U.S. Treasury Secretary Timothy F. Geithner’s plan to recoup taxpayer bailout funds is increasingly dependent on the stock price of insurers American International Group Inc. and MetLife Inc.

The government’s stake in AIG will rise to 92 percent from about 80 percent under the revision to the New York-based insurer’s rescue announced yesterday. The Treasury Department must find buyers for $49.1 billion in AIG stock and $8.7 billion in MetLife equities starting next year.

“There are a lot of ‘ifs’ for the government to be able to rapidly exit all this common stock,” said Clark Troy, senior analyst at Aite Group in Chapel Hill, North Carolina. “If all the stars are aligned, if the perception of double-dip risk is cleansed from the system, if you get better pricing in the property-casualty markets, it may work.”

AIG, once the world’s largest insurer, turned over a majority stake to the U.S. in 2008 amid a rescue that swelled to $182.3 billion. The exit plan converts the government’s preferred stock into 1.66 billion common shares for sale on the open market and taps a Treasury facility for as much as $22 billion to retire Federal Reserve bailout vehicles. Mark Paustenbach, a Treasury spokesman, declined to comment.

For Treasury to break even on its $49.1 billion investment in AIG stock, the shares must be sold for almost $30. The company traded below that level for more than two months this year, reaching a low of $22.15 on Feb. 8.

When to Sell?

The U.S. sales will happen in phases over 18 months to two years starting in 2011, said a person with direct knowledge of the Treasury plan. The length of the sale period was meant to avoid flooding the market with AIG shares, said the person, who declined to be identified because details of the strategy are confidential. Investors will also receive warrants with a $45 strike price to dissuade them from dumping shares.

AIG rose $1.65, or 4.4 percent to $39.10 in New York Stock Exchange composite trading yesterday and has gained about 30 percent this year. It slipped 4.5 percent last year and plunged 97 percent in 2008.

Proceeds from the sale of two non-U.S. life insurance divisions, American Life Insurance Co. and AIA Group Ltd., will pay down the approximate $19 billion owed on AIG’s Fed credit line. MetLife has said that its purchase of Alico is “on track” to be completed on Nov. 1. AIG may hold an initial public offering for AIA in October.

‘Important Asset’

MetLife agreed to pay $6.8 billion in cash and $8.7 billion in securities including stock to buy Alico. The total deal was valued at $15.5 billion, based on the March 5 MetLife share price of $38.92. The stock closed yesterday at $38.45.

MetLife shares obtained in the sale “are an important asset” that “will be part of the architecture” of AIG’s deal to repay the U.S., AIG Chairman Steve Miller said in a Sept. 29 interview. The securities, previously committed to the Fed, will go to the Treasury.

Treasury may not receive all of the MetLife securities because $3 billion will be put in escrow to indemnify the buyer from potential costs tied to Alico. MetLife can recover some stock if Alico’s Japanese commercial real estate holdings decline and there are legal claims and regulatory fines tied to European funds in which client withdrawals were suspended.

“While there is a lot of work ahead to execute the terms of this agreement, today we are much closer to seeing a clear path out,” Geithner said yesterday in a statement. The exit strategy “puts taxpayers in a considerably stronger position to recoup our investment.”

 

TARP Estimate

If the government breaks even on AIG’s bailout, a recent $105 billion cost estimate for the Troubled Asset Relief Program would be reduced by about half. Geithner said last week that the U.S. would “largely get the taxpayers’ money back” from the $700 billion

TARP fund.

AIG’s existing common shareholders, who hold about 20 percent of the company, will have their stake diluted to about 7.9 percent, AIG said yesterday. Those investors will receive as many as 75 million warrants.

The company’s managers “strongly believe, given how powerfully AIG and its businesses have rebounded” that the firm will repay the U.S. at a profit, Miller and Chief Executive Officer Robert Benmosche said yesterday in a letter to staff.

Treasury invested about $47.5 billion in AIG buying preferred stock, and the insurer owed $1.6 billion in interest. Based on that investment, the conversion would give Treasury shares at $28.70 each. AIG was allowed to skip interest payments starting last year as part of its fourth rescue.

AIG was first rescued in September 2008 by the Fed after trading partners demanded payments on derivatives contracts. After three revisions, the firm’s lifeline included the $60 billion Fed credit facility, a Treasury investment of as much as $69.8 billion and up to $52.5 billion to buy mortgage-linked assets owned or backed by AIG.