Brookfield Re Acquires American Equity in $4.3 Billion Deal

[Insurance Forums Staff]

Insurance Forums Staff submitted a new article

Brookfield Re Acquires American Equity in $4.3 Billion Deal

Canadian asset manager enters into definitive agreement July 5 to buy indexed annuity pioneer AEL after earlier unsuccessful efforts

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[scagnt83]

Interesting. I wonder what this will do to renewal rates....

 

[Allen Trent]

Interesting. I wonder what this will do to renewal rates....

Speaking of renewal rates, what kind of renewal commission rates do you see on MYGA currently? IE- is the renewal rate 50% or 75%, etc of what the carrier pays for new commission. Example, if carrier pays 2.5% for a 5 year or 1.25% for a 3 year, what do you normally see on those at renewal when client renews for another rate lock of the same duration

 

[scagnt83]

Speaking of renewal rates, what kind of renewal commission rates do you see on MYGA currently? IE- is the renewal rate 50% or 75%, etc of what the carrier pays for new commission. Example, if carrier pays 2.5% for a 5 year or 1.25% for a 3 year, what do you normally see on those at renewal when client renews for another rate lock of the same duration

Im not aware of any that pay renewal comp for continuing after the surrender period.

There are a few that have trail comp options.

I dont have a lot of experience continuing them after the surrender, we usually move it to a better rate.

 

[Allen Trent]

Im not aware of any that pay renewal comp for continuing after the surrender period.

There are a few that have trail comp options.

I dont have a lot of experience continuing them after the surrender, we usually move it to a better rate.

Sorry, I meant when the client re-ups for a new 3 or 5 year interest rate & also renews the surrender charge to start over like most (or all) MYGA do these days

 

[Tahoe Ray]

Sorry, I meant when the client re-ups for a new 3 or 5 year interest rate & also renews the surrender charge to start over like most (or all) MYGA do these days

Oceanview is currently renewing at their new money rates. That's not by policy, just current practice.