GOOD READS

Sector Snap: Life insurers shares mixed

Sterne Agee analyst: Woes with ING's US variable annuity business not a concern at US insurers

RELATED QUOTES

SymbolPriceChange
UNM34.02-0.04
MET51.91+0.01
AFL62.70-0.08
AMP106.44-0.35
PRU82.13-0.15

LOS ANGELES (AP) — Problems with ING NV's U.S. variable annuity business are unique to the Dutch bank and insurance company and don't signal potential issues with the broader U.S. life insurance sector, a Sterne Agee analyst said Wednesday.

ING disclosed earlier in the day that it will take a charge of around $1.2 billion to $1.4 billion to close its U.S. variable annuity business. The move comes after the company concluded that assumptions about the business' likely future profitability have been wrong.

Specifically, ING discovered that customers are not allowing policies to lapse — and incur the resulting penalties — as the company hoped. ING stopped selling variable annuities in 2009.

In a client note, Sterne Agee analyst John Nadel said ING's revised assumptions about the U.S. variable annuity market essentially bring the company more in line those of U.S. insurers.

"In short, we view ING's charge as unique and not something to fear for U.S. (variable annuity) companies," Nadel wrote, adding: "We would not be sellers of (variable annuity) companies in sympathy with ING's announcement."

Wednesday afternoon, the Dow was down 3.37 points to 12,146 as of 3 p.m. Eastern, while the Nasdaq composite stock index slid 15.34 to 2,634.

Life insurers' stocks were mixed.

Unum Group rose 3 cents to $22.10; MetLife Inc. was down 31 cents to $32.58; Lincoln National Corp. slipped 41 cents to $20.38; AFLAC Inc. fell 46 cents to $44.34; Ameriprise Financial Inc. rose 37 cents to $47.30; Prudential Financial Inc. was down 38 cents to $51.03; Sun Life Financial Inc. gained 21 cents to $18.74; Torchmark Corp. slipped 53 cents to $43.21; Principal Financial Group Inc. fell 27 cents to $25.20; Assurant Inc. added 23 cents to $40.15; Hartford Financial Services Group Inc. was down 10 cents to $18.42; and, Reinsurance Group of America Inc. fell 2 cents to $51.48.

Quiz: How well do you know India's economy?

Question 1

Which of these products is India the world's largest producer of?

Poll Choice Options
  • Wheat
  • Rice
  • Milk
1
2
3
4
5
6
7
8
9
10

Latest News

  • White House considers former banking lawyer for Fed board - sources

    NEW YORK/WASHINGTON (Reuters) - A former lawyer with the American Bankers Association is being considered by the White House as a possible nominee to the board of the Federal Reserve, according to sources familiar with the efforts The lawyer's name emerged as the White House weighs candidates with community banking backgrounds to fill gaps on the Federal Reserve's powerful but depleted board, the sources said. People familiar with the White House's process said administration officials may …

  • Apple expands buybacks by $30 billion, OKs 7-for-1 stock split

    Apple Inc (AAPL.O) has approved another $30 billion in share buybacks till the end of 2015 and authorized a rarely seen seven-for-one stock split, addressing calls to share more of its cash hoard while broadening the stock's appeal to individual investors. Activist investor Carl Icahn, who had famously called on the iPhone maker to boost its buyback program, tweeted his approval of the move on Wednesday. On Wednesday, Apple reported sales of 43.7 million iPhones in the quarter ended March, …

  • Buffett: moving oil by rail safely major industry concern

    Warren Buffett, chairman of conglomerate Berkshire Hathaway (BRKa.N), said on Wednesday that safety is a major priority for the rail industry, after a recent spate of accidents raised concerns about how to transport oil safely. He added that the delay in the construction of the Keystone pipeline was unlikely to prompt additional purchases of tank cars at Berkshire railroad unit BNSF. Buffett also said, in an interview with CNBC the same day, that he thinks Coca-Cola's (KO.N) equity …

  • Asia markets: Tech sector brightens as Apple jumps 8 percent

    Asian markets could get a lift on Thursday after tech heavyweights Apple and Facebook beat Wall Street expectations, sending their stock up sharply and boosting Nasdaq futures. The Nasdaq futures were up 1 percent and the S&P 500 0.3 percent. Sentiment on the tech sector brightened after Apple (AAPL.O) decided to buy back $30 billion of its shares out to the end of 2015 and authorized a seven-for-one stock split. Apple reported sales of 43.7 million iPhones in the quarter ended March, far …

  • India may cede top rice exporter spot under Southeast Asian price onsl …

    India's rice exports could slide by nearly a quarter this year and knock the country off its perch as top exporter of the grain due to stiff competition from Southeast Asian rivals that have recently slashed prices, Indian industry executives said. A drop in Indian exports could help Thailand trim a record inventory chalked up under a controversial rice-buying scheme. Thailand may also be able to reclaim its status as the world's biggest rice exporter, which it lost to India two years ago. …

IN-DEPTH ANALYSIS & INTERVIEWS

  • This might well be India’s biggest Ponzi scam

    It was just too good to be true. Ashok Khital, 45, displays every symptom of a man who knows he's been conned. …

  • India's star studded football league

    High and mighty including Sachin, Salman & Sun Group buy ISL teams …

  • Leaderspeak with Rajesh Janey

    Rajesh Janey, President - India & SAARC, EMC shares many firsts in his life. …

  • Power Hungry

    Gujarat has power round-the-clock. Most other states do not. Why this will matter in the general elections. …

  • Etcetera

    The most keenly watched contest of the current general election will be the one for the Varanasi parliamentary seat, where the Bharatiya Janata Party's prime ministerial hopeful Narendra Modi squares off ... …

  • Economy vs Democracy

    As the country gets election fever, cash comes out of mattresses and turns into liquor, gifts, and food. But it is not bad for the health of the economy, reports Sarika Malhotra from the trenches. …

  • Bracing for Challenges

    Raghuram Rajan is preparing to deal with concerns that may arise when a new government takes charge. …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    16.52-0.33-1.96%
    UNITECH.BO
    14.31-0.27-1.85%
    SUZLON.BO
    120.40+7.00+6.17%
    FRL.BO
    66.05+4.10+6.62%
    MANGCHEM.BO
    54.40+1.65+3.13%
    HCLINFO.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    16.20+2.70+20.00%
    JAGSONPH.BO
    53.50+8.90+19.96%
    RUSHIL.BO
    40.45+6.45+18.97%
    RCIIND.BO
    63.95+8.90+16.17%
    MRPL.BO
    24.00+3.10+14.83%
    NELCAST.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    24.25-6.00-19.83%
    BMAL.BO
    13.26-2.24-14.45%
    ZYLOG.BO
    30.15-4.05-11.84%
    DRDATSONS.BO
    19.55-2.45-11.14%
    MARAL.BO
    121.50-13.50-10.00%
    POKARNA.BO
  •  
    Recent Quotes
    Symbol Price Change % ChgChart 
    Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
    You need to enable your browser cookies to view your most recent quotes.
  • Recent Quotes News

    •  
      Sign-in to view quotes in your portfolios.