Jefferson National Life Insurance Company, Louisville, Ky., says it is being investigated for potential market timing and late trading activities related to its variable annuities.
In a May 4 filing, the company, a unit of Inviva, New York, says it is under investigation by both New York Attorney General Eliot Spitzer and the Securities and Exchange Commission.
The SEC declined comment. A spokesperson for Spitzer says his office is looking at a number of companies selling VAs on such issues as market timing. The spokesperson declined comment on Jefferson National.
Deborah Newman, a spokesperson for Jefferson National, says the company is cooperating fully with the SEC and other regulators but declined comment on the inquiry.
In its filing with the SEC, Jefferson National says that since November 2003, the New York AG and the SEC have been informally investigating it. The insurer also says “it is impossible to predict their outcome and whether or not the company will incur any loss, material or otherwise.”