5/7/2023 0 Comments Voya media player![]() “I think those margins will increase in the future when these carriers start to become more digital, both internally with automation as well as externally to the customer when servicing,” Ms. Margins are small, partly because of costly overhead, maintenance and legacy systems, as well as the low interest rate environment, she said. Life insurance is less profitable for insurers than it used to be, said Samantha Chow, senior life insurance and annuity analyst at Aite Group. of Boston announced earlier this year that it was selling the bulk of its individual life and annuity business to Protective Life Corp., via reinsurance, for $1.17 billion. last year and stopped writing new retail business. ![]() spun off much of its individual life and annuity business into Brighthouse Financial Inc. Voya joins other large insurers to have recently exited the life insurance business. Voya sold $55 million in individual life policies this year through the third quarter, down 11% from the same period in 2017. The firm has roughly $310 billion in total policies in force among 785,000 customers.Īlthough two-thirds of its business on the books is from individual term insurance, the vast majority of its new sales have come from indexed universal life insurance. Voya will continue to service and pay claims to existing life insurance customers. It divested around $56 billion in variable and fixed annuities to Venerable Holdings Inc., which encompasses investors Apollo Global Management, Crestview Partners and Reverence Capital Partners. Voya’s exit follows the sale of the vast majority of its individual annuity business earlier this year to a trio of private-equity investors. Moving forward, the firm will focus on its retirement, investment management and employee benefits units, which are “higher-growth, higher-return, capital-light businesses,” Mr. Voya, which was spun off from Dutch parent ING Groep in a 2013 initial public offering, decided to exit the individual life business following a strategic review, said CEO Rodney O.
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