Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Financial Planning > Trusts and Estates > Estate Planning

Estate planning, savings drive life-annuity comeback

Your article was successfully shared with the contacts you provided.

There’s hope yet for the life-annuity industry. Although insurers are still struggling with the fallout from the economic crisis, a report from Conning Research and Consulting found that despite short-term issues like rebuilding capital and changing regulations, the long-term outlook for the industry was positive.

“We project that surplus plus AVR will increase 23 percent to $337 billion by 2011 as the industry adapts to the new environment and due in part to additional capital paid in to the industry,” Stephan Christiansen, director of research at Conning said in a press release. “Additionally, we forecast premium growth through 2011 based in part on demand stimulated by estate planning, a focus on savings and more conservative protection needs, and by a need for more stable investment alternatives.”

The report wasn’t without some negativity. According to analyst Terence Martin, capital losses will affect the life insurance industry at least through 2009. Even when it does begin to rebound, it will be “far below the robust levels of 2003 through 2007.”


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.