As Baby Boomers begin to retire in the coming years, insurers are scrambling to cash in on their wealth with variable annuities, The Wall Street Journal reports.
“Insurance companies have historically been kind of sleepy,” said Christopher “Kip” Condron, the U.S. chief of SA. “But banks and mutual funds can’t offer these kinds of guarantees. So we looked at the situation and said, ‘This is our era.’”
Companies making a big push include AXA, Hartford Financial Services, Metropolitan Life Insurance, American International Group, Aegon, ING and Allianz.
“Life expectancies seem to be going up everywhere,” noted AXA Chief Executive Officer Henri de Castries. “That has huge long-term implications and should be a huge opportunity for us.”
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