Aviva just cut another group of FMO/IMOs from their contracting. This was done in a letter sent Friday that basically said "your through" and by the way, anyone appointed through you will not be allowed to move elsewhere until 2010.
Among those cut were some pretty big heavy-hitters. One FMO I used for Aviva products went in the first round. Now the other FMO I use is also cut. I cannot write, I cannot move.
When Aviva wants my business again in 2010, or whenever, I will most definitely remember how they screwed me. I should have stuck with Allianz (and the others) that always treated me right. What was I thinking?
The problem here is that the FMO's are getting greedy and want more for themselves. They just announced; which is what I assume you are referencing, that American Investors/ Aviva will be cutting the sub-IMO's override to 1% above street. The product that most agents were writing with Aviva had a street of 8% and an override of 2.5% making the total comp 10.5%. How much were you getting?
By cutting the sub-IMO comp; it allows the FMO to make more money on the back-end. I have several sub-IMO's beneath me and they are furious; and have every right to be.
Aviva is making all of their IMO's sign a waiver that they will not pay above 1% street to their sub-IMO's; talking about cutting your own throat.
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So is there any ref on the net I can look at this at? Thanks.
There are plenty of references to Aviva's possible financial problems. Downgrading by Moody's, falling stock (except today), and so on. Aviva had a $10.9 loss for 2008 after adjusting the market value of its reserves. Reserve valuation is bad for all insurance companies, but Aviva expanded so quickly in the last couple of years that the are now having some serious problems.
But I am referring to a very abrupt and unexpected letter that some FMOs got terminating them. Then there is another letter that FMOs who are being kept got telling them that Aviva will not allow any producer who is contracted anywhere with ANY Aviva product to move to them. This is not a public sort of thing.
Thanks, that will help with my search on this. I sell Aviva and even though I get a nie commission off of it, if they are having problems I would rather not move clients there, which is why I am trying to find some info here.
Thanks, that will help with my search on this. I sell Aviva and even though I get a nie commission off of it, if they are having problems I would rather not move clients there, which is why I am trying to find some info here.
Would you like to move your contract to me? Oh, dang, that's right, they probably won't let you!
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Todd R. King
800-590-7207
540-400-6275
888-748-3978 Fax
[COLOR=red]Do the right thing because it's simply the right thing to do.[/COLOR]
Aviva just cut another group of FMO/IMOs from their contracting. This was done in a letter sent Friday that basically said "your through" and by the way, anyone appointed through you will not be allowed to move elsewhere until 2010.
Among those cut were some pretty big heavy-hitters. One FMO I used for Aviva products went in the first round. Now the other FMO I use is also cut. I cannot write, I cannot move.
When Aviva wants my business again in 2010, or whenever, I will most definitely remember how they screwed me. I should have stuck with Allianz (and the others) that always treated me right. What was I thinking?
What? So if you are an FMO with Aviva - and they chop that FMO and the agent is "through" but you cannot move to another FMO until 2010?
Sounds like border line illegal, some violation or restraint of trade or something.
Aviva just cut another group of FMO/IMOs from their contracting. This was done in a letter sent Friday that basically said "your through" and by the way, anyone appointed through you will not be allowed to move elsewhere until 2010.
Among those cut were some pretty big heavy-hitters. One FMO I used for Aviva products went in the first round. Now the other FMO I use is also cut. I cannot write, I cannot move.
When Aviva wants my business again in 2010, or whenever, I will most definitely remember how they screwed me. I should have stuck with Allianz (and the others) that always treated me right. What was I thinking?
I am very frustrated with Aviva. They have a good product, but this whole cutting contracts fiasco has cost me about $3.5 million in premium last month. I have moved a-lot of my guys to the Amerus side of the table. All in all not a lot of smiling faces
There is no moving to "sides" from what I have been told.
If you are contracted anywhere with any Aviva product, you cannot sell through your current FMO and you cannot move until 2010 (and I wouldn't count on that happening). I had three Aviva contracts at two FMOs.
So, I was contracted with Amerus at one FMO and American Investors at another. I now cannot sell these products and I cannot move. Further, although I have never sold any BPA (another Aviva separate contracting line), I cannot sell that either with a new FMO regardless of the fact I have never handled BPA before and regardless of the fact that I was planning to push this product big time.
So, screwed all the way around. In any event, I have serious doubts about the long-term prospects for Aviva at this point. I don't think it is a case of just retrenching for a bit and then back to blow and go. I think it is just going to be blow.
The market is up today, but I don't expect it to last. So, if that is the case, here is a late 2009 press release from Aviva:
"Due to the problems with the U.S. market, Aviva announced today that has decided to go back to its roots in Europe and devote its energies and resources to a proven market, etc."
2010 will be here in about 9 months....not exactly a long wait. several companies have stopped taking new contracts for agents or new apps for annuities. NACOLAH is one. So yes, there are fiscal problems somewhere.
What ever happen to that 105a new law that is coming up. I think that is what it is called.
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Mark Rosenthal aka markingriffin
IMO/Ins Agent/Agent Trainer/Free Advice markcrosenthal@aol.comwww.realfastservice.com
Please visit mywebsite to learn more about me.
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OK....I've been trying to get additional information and here is what I have so far. (dangling participle, I know)
First email stated that they were suspending any new annuity apps.[COLOR=orange]@@@@@@@@@@@@@@@@@@@@@[/COLOR]
Effective immediately, Aviva has suspended sale of all annuities. We have not yet received the
Official announcement. Once that is received, we will forward it to the field.
Aviva has experienced tremendous growth in their annuity business over the past two years. Aviva
Wrote an estimated $2,270,982,682 in annuities in just the fourth quarter of 2008. For all of 2008
They wrote an estimated $7,088,808,544 in annuities (source indexannuity.org). According to the
Statistics, Aviva has written more fixed annuities in the past year than any other carrier in the US.
Because of the current market conditions, Aviva has decided that the underlying investments
Purchased to back the annuities, do not provide enough margin to make this a profitable business
At the current time. It is our understanding that the annuity business at Aviva will be suspended for
The remainder of 2009 unless market conditions provide otherwise.
Aviva is still dedicated to focusing on growing their life business. As you know, Aviva has an
Excellent and very competitive life portfolio. Their fixed index guaranteed no-lapse UL is second to
none in the industry. You can find complete product details
@@@@@@@@@@@@@@@@@@@@@@@@
Then I got a phone call from Creative Mktg, and they said they knew nothing of this and that since they are owned by Aviva although they work independently (figure that one
Out)they would know. I sent him this email and later called him...he said in asking around the office he was told that email pertained to the canceled FMO's. But the active FMO's could send in their apps. And today I had another email from a different Brokerage house confirm they were still taking AVIVA annuity apps. So you tell me if the above email sounds like it's directed to canceled fmo's only, or everybody. Either way....the alert has been posted. I guess we can all sell until the Fat Lady Sings, and if the curtain comes down, hope you have other things to do.
Sorry if I upset anyone here....i'm still trying to sort out this industry myself and figure what the future trends are.
From what I understand after speaking to some consultants for them they are targeting a 20% reduction in premium from the previous year (2008). They still want to be number 1 but not by as much of a large margin as they were.
Will this succeed? Who knows. I have a feeling it may backfire because of the way the handled their communication but time will tell.
They are not stopping all business only cutting down the distribution network to slow business down and preserve their capitol.
At least that is what I have heard and believe to be true.
I saw an annoucement on their website pertaining to the life insurance focus going forward but it said nothing about suspending all annuity sales. I, like a lot of others were upset when Aviva cut some marketing organizations, mine included. It cost me two deals for over $150,000 but I was able to save two others. I think they really mishandled the way this was done, with no warning to the agents in the field. I think this will hurt them in the long run and I will adapt and move on,but not forget. In my world $12,000 in commissions is a big thing!
Aviva Cuts Next Tier of FMOs
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