As a result of the current economic environment, John Hancock is the latest insurer to limit its annuity exposure.
"Due to volatile equity markets and the historically low interest rate environment that is expected to continue for an extended period of time, John Hancock is restructuring its annuity business," Beth McGoldrick, assistant vice president of public relations for the firm, said.
The firm is discontinuing its Venture 7 series, 4 series and Frontier variable annuities. Of its market-value-adjusted annuities, it will withdraw its JH Signature, JH Choice and Inflation Guard annuities. It will also end its Essential Income Immediate Annuity.
John Hancock will accept new business on the discontinued annuities until Dec. 16, according to McGoldrick. Current annuity clients will see "no change in how their accounts are handled," she said.
John Hancock is owned by a Canadian insurance company, Manulife Financial.
Kerry Pechter, editor of RetirementIncomeJournal.com, compared John Hancock's move to a similar decision from Sun Life, another U.S. affiliate of a Canadian company. "After losing $621 million to low interest rates and falling stock prices, its parent, Sun Life of Canada, had to add $500 million to reserves. Sun Life then announced a new, low-risk variable annuity," Pechter, (left), told AdvisorOne.
