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Who out there has experience with Athene's renewals, specifically for Spreads... ??
Good? Bad? Ugly??
Good? Bad? Ugly??
Athene Renewals
- Thread starter scagnt83
- Start date
I'm guessing that you're talking about the old AVIVA contracts? I could be wrong but I don't believe that Athene had any spread based products prior to acquiring AVIVA so there would be little to no history.
- Thread starter
- #3
- 10,626
I was looking at the Target Horizon 5 with the 2.55% P2P spread. I never sold Aviva so I am not sure if it is an old aviva product or not.
That's an old AVIVA product. I don't think that any history will be relevant given the new carrier.
- Thread starter
- #5
- 10,626
What have Athene's renewals been like in general for other products?
2.55% spread (with 100% participation) on a p2p is pretty strong imo. Throw in the short 5 year surrender and it seems like the perfect product given the current rate environment...
2.55% spread (with 100% participation) on a p2p is pretty strong imo. Throw in the short 5 year surrender and it seems like the perfect product given the current rate environment...
With a 10% max spread per year, it could get ugly after the first renewal rates come in. They're going to make their money somewhere, it's all baked in the cake.
- Thread starter
- #7
- 10,626
If you think IAs are going to renew at the min caps/spreads/PRs/etc then there is no reason to sell 99% of them.
Im looking for actual experience. Not what ifs.
Yes I am aware the carrier has to make money. But your post implies they are just going to automatically screw over their clients. There are plenty of carriers that could drop IA performance to near zero... but most dont...
So either you have first hand knowledge of renewal history on this product/carrier or you dont. Hypotheticals about worst case scenarios are useless and a waste of time since the same thing has been said 100s of times before on this forum.
JoeAnnuity
Expert
- 31
Insurance companies don't make money on the spreads or caps on index annuities. They make their money the same way they do on a fixed annuity, i.e. what the spread is on their general account bonds.
Renewal rates will mostly be based on what interest rates look like 1 year, 2 years, etc, down the road. If interest rates rise you might see a small reduction in your spread (or a small increase in caps and participation rates).
Renewal rates will mostly be based on what interest rates look like 1 year, 2 years, etc, down the road. If interest rates rise you might see a small reduction in your spread (or a small increase in caps and participation rates).
They don't make money on them, but they can recoup money off of them...
I agree with your second paragraph.
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