Security Benefit Dropping the SIA

[Charpress]

Got an email yesterday from SB saying that as of March 6, the Secure Income Annuity product would be dropped.

Interesting. The fact they gave four days notice tells me they most certainly don't want any more of the product written.

So, the question is: Why? I have felt from the beginning that the SIA could not possibly be profitable to the company in the long run. I've seen many opinions over the years that the offering was to bump a huge amount of initial premium for Guggenheim's bottom line, but that is was not sustainable.

Anyone else have any insight on this? SB says in a round about way they are doing this to make way for some new products. OK, -not really buying that.

 

[scagnt83]

It was a lifetime income product. And idk why anyone would sell a lifetime product with those ratings.

But yeah, it was basically a fire-sale to get cash in the door. Now they will cut rates to reduce liabilities going forward and to try and keep their Comdex from dropping below 45...

 

[SanDiego619]

Got an email yesterday from SB saying that as of March 6, the Secure Income Annuity product would be dropped.

Interesting. The fact they gave four days notice tells me they most certainly don't want any more of the product written.

So, the question is: Why? I have felt from the beginning that the SIA could not possibly be profitable to the company in the long run. I've seen many opinions over the years that the offering was to bump a huge amount of initial premium for Guggenheim's bottom line, but that is was not sustainable.

Anyone else have any insight on this? SB says in a round about way they are doing this to make way for some new products. OK, -not really buying that.

It was a reserving issue. Can't say how I know but yeah

 

[Charpress]

It was a reserving issue. Can't say how I know but yeah

Yes, I've heard the same explanation. I know how you know and you know how I know.

When you sell too much, you have to sell less -or something else. Damn, making too much money again.

 

[SanDiego619]

Yes, I've heard the same explanation. I know how you know and you know how I know.

When you sell too much, you have to sell less -or something else. Damn, making too much money again.

haha yes to all. Also hearing a possible "restructuring of TVA" coming. We'll see

 

[Charpress]

The SIA was kind of the tie that binds to certain organizations with exclusive distributions.

Maybe time to move on and seek a broader horizon.

 

[SanDiego619]

The SIA was kind of the tie that binds to certain organizations with exclusive distributions.

Maybe time to move on and seek a broader horizon.

Yes, I would imagine AE would be taking a hit from this. However, I am sure they're scrabbling to find an alternative on where they can put this billion in premium.

 

[Charpress]

Yes. American Equity, American Equity, American Equity. Put it to music, sing along.

 

[SanDiego619]

Yes. American Equity, American Equity, American Equity. Put it to music, sing along.

For the sake of making sure we're on the same page. I of course meant Advisors Excel maybe taking a hit from this.

And you are doing a good job referencing an alternative with American Equity.

I only wanted to spell that out since I put AE.

 

[Charpress]

For the sake of making sure we're on the same page. I of course meant Advisors Excel maybe taking a hit from this.

And you are doing a good job referencing an alternative with American Equity.

I only wanted to spell that out since I put AE.

No, no I got what you meant. I'm kind of summarizing a certain conference call that I just got around to seeing this morning.

Seven in the circle, seven in the circle -but one to bind them all. Reminded me very much of Lord of the Rings.