Brookfield Reinsurance and American Equity Investment Life Holding Company (AEL) have entered into a definitive agreement whereby Brookfield Reinsurance will acquire all of the outstanding shares of common stock of AEL in a cash and stock transaction that values AEL at approximately $4.3 billion. Brookfield Reinsurance expects to maintain AEL’s headquarters in Des Moines, Iowa, and that growth in the AEL platform over time should increase net jobs in Iowa. This is the second major U.S. insurance company acquisition in as many years for Brookfield Reinsurance. Last year, Brookfield Reinsurance acquired American National Group for $5.1 billion. | more
The National Association of Insurance Commissioners (NAIC) revised the Suitability in Annuity Transactions Model Regulation 275 in February of 2020. The revisions require completion of either a 1-hour General Annuity Training CE course available to producers who have taken the previous NAIC Annuity Suitability training or a new 4-hour General Annuity Training CE for those who have not taken it previously. General Annuity Training CE must be completed with a training vendor approved by the state in which the writing agent is taking the application in.
The revision is being reviewed by various state insurance departments and has been adopted by 40 states. Before doing business in these states, agents must fulfill the General Annuity Training requirement. | more
Great American Life is now MassMutual Ascend. “Ascend” was chosen because it speaks to their mission to always move onward and upward in the pursuit of securing financial futures and elevating partnerships. MassMutual Ascend will operate as a stand-alone subsidiary of MassMutual but their products and your customers’ existing annuities will remain the same.
We are excited to announce that AIG Life & Retirement is now Corebridge Financial, a $350 billion New York Stock Exchange publicly traded company. The names of the underlying life insurance companies – American General, United States Life of NY & VALIC – will remain the same. | more
We are pleased to announce Guggenheim Life and Annuity Company is now Clear Spring Life and Annuity Company. While their name has changed, the Clear Spring Life A.M. Best rating of A- (Excellent) remains unchanged.
Clear Spring Life will accept Guggenheim Life branded forms for the next 45 days. Clear Spring Life forms and applications are available at clearspringlife.com. Clients with in-force policies will be receiving a letter and a policy endorsement from Clear Spring Life informing them of the name change in the near future. The Clear Spring Life Customer Service team will be available to provide you and your clients with the help you need on in-force policies and they can be reached at 800-990-7626.
Effective February 1, 2022, all agents who are assisting their clients with qualified rollovers to Individual Retirement Accounts, annuities, and defined contribution plans, defined benefit plans or who are selling qualified life insurance and annuity products to such plans must comply with the requirements of Prohibited Transaction Exemption (PTE) 84-24 and the Impartial Conduct Standards. New disclosure forms will be required for any tax-qualified annuity product sold. In addition, many of the annuity product disclosures will be updated to reflect the Department of Labor changes. Please make sure you are only using the most current paperwork when submitting new business. Please contact Kevin McNulty at 800-749-9900, ext. 143, for more information.
Principal Financial Group recently concluded a strategic review initiated in February and has decided to prioritize fee-based businesses and focus on three key areas: retirement in the U.S. and select emerging markets, global asset management and U.S. specialty benefits and protection in the small-to-medium-sized business market. With this new focus, Principal will be exiting both the fixed annuity and the “individual” life insurance marketplaces. Principal will continue to offer life insurance solutions in the business environment (keyperson, buy/sell, NQDC, COLI) focusing on small/medium-sized businesses.
Principal will continue to accept all life insurance applications through September 30, 2021. After this date, only business-related life insurance applications will be accepted. Principal’s Disability protection portfolio remains unchanged with no foreseen changes coming.
While we are disappointed by this decision, we are not surprised. This is just another in a continuing trend of activist investors compelling publicly traded companies to exit the life insurance marketplace. This strategy enriches their coffers, often at the expense of existing policyowners.
Please contact us if you or your clients have any questions or concerns regarding this announcement or if you would like us review any Principal fixed annuity or life insurance cases yet to be submitted. | more
On August 9, 2021, American National Group, Inc. and Brookfield Asset Management Reinsurance Partners Ltd. announced they have entered into a definitive merger agreement whereby Brookfield Reinsurance will acquire American National in an all-cash transaction valued at approximately $5.1 billion. Following closing, Brookfield Reinsurance intends to maintain American National’s headquarters in Galveston, Texas, as well as its existing operational hubs in Texas, Missouri and New York. Jim Pozzi, President and CEO of American National, said, “This is an energizing moment in American National’s history. Our two companies share a long-term view of building strong, enduring businesses. Brookfield Reinsurance has been very clear: they want us to continue to grow our business”. The transaction is expected to close in the first half of 2022, pending regulatory approvals and other customary closing conditions. | more
The Brokers Network recently enhanced their fixed annuity portfolio with the additions of Oceanview Life & Annuity and Oxford Life. Though completely unrelated companies, Oceanview and Oxford Life were both established west of the Mississippi in 1965. Oceanview and Oxford Life have relatively new product portfolios so they are not strained by old blocks of business in this near 0% interest rate environment. We invite you to learn more about these new options and how their guaranteed fixed annuity solutions can help your clients.