In what appears to be an industry-wide trend, American Family Life Insurance Company (AFLIC) has signed an agreement with Kansas City Life Insurance Company (Kansas City Life) to transfer its remaining variable universal life insurance policies and variable annuities to Kansas City Life.
AFLIC, the life insurance affiliate of Madison, Wis.-based American Family Insurance Group, has been out of the sale of variable products since 2009 but they continued to service existing variable life insurance policies and variable annuities.
Companies seem to be struggling with variable products as market volatility and low interest rates squeeze them.
The agreement, subject to review by the Wisconsin Office of the Commissioner of Insurance involves 34,350 variable policies and contracts, which Kansas City Life will begin servicing in 2014.
“It is important to us that the receiving company aligned with American Family’s service expectations and our business values. We found such a company in Kansas City Life,” said Al Meyer, AFLIC vice president.