American Skandia Could Be A Good Buy: Analyst

Kligerman says insurers that want to enter the VA market would be the prime candidates for acquiring part or all of the business. His short list includes Prudential Financial Inc., Newark, N.J.; Allstate Corp., Northbrook, Ill.; and Jefferson Pilot Corp., Greensboro, N.C.

“American Skandia is one of the biggest players [in the VA market],” Kligerman says. “Skandia has been known for competitive VA products and excellent services. So it is attractive.”

But Kenneth Kehrer, head of Kenneth Kehrer Associates in Princeton, N.J., notes that American Skandias bank VA sales have declined.

Until 2001, the company was one of the top five VA vendors selling through the bank channel, Kehrer says.

Today, he says, “American Skandia is a disappearing presence in banks. In the first half of this year, it dropped to 15th place. Many banks have either stopped or reduced selling of its products.”

Reproduced from National Underwriter Life & Health/Financial Services Edition, September 23, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.