Magazine article American Banker

Jackson Likes Odds in Proprietary Annuities

Magazine article American Banker

Jackson Likes Odds in Proprietary Annuities

Article excerpt

Jackson National Life Insurance Co., which is entering the proprietary bank annuity business long after several competitors did, says room remains in the market for a new entrant.

The Lansing, Mich., insurer, which is owned by Britain's Prudential PLC, is in talks with two banks to offer proprietary annuities and is seeking proprietary agreements with other banks as well.

With variable annuities, proprietary agreements let a bank put its own fund portfolios into the product. With fixed annuities, the agreements let a bank participate in managing the assets.

Michael Wells, a longtime Jackson National executive who was promoted to vice chairman last Wednesday, said that proprietary annuities will spur growth for its bank-sold annuities.

In the first quarter the company was 10th in fixed annuity sales through banks, with $194 million, and 17th in variable annuity sales, with $54 million.

Jackson National waited so long to get into the proprietary bank annuity market partly because of its technology, Mr. Wells said. "Six years ago Jackson's then-management decided to outsource all technology. We have a new system in place, and we can compete."

Brad Powell, president of Jackson National's institutional marketing group, said it isn't too late for the insurer to make inroads with proprietary products.

"I think there will certainly be opportunities at banks that already have existing proprietary agreements to launch a second or third proprietary product, much less the many other banks that still don't have one," he said. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.