Jackson National Has Too Much Annuity Business!
Most businesses in America have a mantra to always bring on as much new business as possible, regardless of the circumstance. The idea is that if the new business is coming in, so is the money, and they will find a way to make it work and keep up the customer service, etc. But the story is different for a particular industry, the Insurance Industry. As a highly regulated group who must maintain the highest standard of reserves and re-insurance of their assets, insurance carriers frequently reach a point of capacity where the simply can’t take any more business.
A popular and extremely well-liked insurance carrier who found themselves in this predicament recently is Jackson National. In fact, Jackson National has actually stopped accepting some variable annuity business as it approaches its maximum capital threshold for variable annuities this year. Jackson’s recent announcement was that it will no longer accept new 1035 exchange business or qualified transfers for their annuities that offer guaranteed benefits. The did say that they would resume business on Dec 15th if the total premium is within the $1 billion of capacity that they company has.
So if you were counting on funding a new Jackson National variable annuity this year, you might have to wait until 2013.