Prudential reveals dispute with Lawsky’s office on reserves

Lincoln National

Prudential had $150.5 billion in variable-annuity account value as of Dec. 31, according to a document on the company's website. The insurer was the No. 4 seller in the first nine months of 2013, according to data from industry group Limra's Secure Retirement Institute.

Lincoln National Corp. increased reserves after discussions with Lawsky's office, the Radnor, Pennsylvania-based company said yesterday in its annual filing. The firm added $90 million to funds set aside for universal life policies as of Dec. 31 and said it plans to reserve more money over four years. The amount, which won't be more than $90 million annually, will be determined by additional conversation with DFS, the company said.

MetLife Inc., the largest U.S. life insurer, said reserves increased by $108 million on similar products after the New York rule change.

In September, Lawsky sent a letter to state insurance regulators faulting new rules for reserves tied to some universal life insurance policies. He called for a return to older regulations that required more money and said he'd be using that approach in New York. At the time, the American Council of Life Insurers said it wasn't necessary for the industry to set aside more funds for the products.

See also:

• Lawsky: Regulation focused more on punishing past than protecting future

• Annuities: To surrender or not?

• Annuities hit largest quarterly percentage increase in 11 years