Randy Binner, Managing Director at FBR Capital Markets, says MetLife Inc (MET) ramped up its variable annuity sales significantly right after the financial crisis. But, he says that given the transition to the lower interest rate environment, among other factors, MetLife made a decision to shift strategic direction.
“MET is going in a direction of being more international and less interest rate exposed, and so VA was not consistent with that,” Binner says. “A combination of those factors led MET to pull back on VA sales.”
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Binner says he thinks MetLife’s variable annuity sales will stabilize at current levels. He says that will create opportunities for other companies in the space.
“That should still provide the ability for AIG and Lincoln to gain share, because the overall demand for VAs from Baby Boomers will continue to increase,” Binner says.
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