Hartford Financial Services Group Inc. executives say variable annuity manufacturers are facing a fork in the road.
Poor performance of VA operations contributed to the $1.2 billion net loss that Hartford Financial, Hartford, reported Thursday.
Hartford will be suspending new product sales in Japan and the United Kingdom. The company is making those moves to help narrow the focus of the company’s VA business, Hartford Chairman Ramani Ayer said today during the company’s first-quarters earnings conference.
In Japan, Hartford executives said, the company feels uncomfortable trying to compete with the aggressive VA products now offered by the domestic life insurers that have started to enter the VA market.
In the United States, Hartford will be dropping a VA family that was slated for launch this month and instead develop a different VA family that will come out in the fall, the company Thursday. The company also said it would increase the price of a VA living benefit rider that requires use of an asset-allocation program and eliminate a VA living benefit rider that imposes no investment requirements.