When you get your insurance bill, you may not think insurers struggle to make money, but indeed some do. MetLife Inc. reported a third-quarter loss of about $1 billion compared to a gain of almost $3.5 billion last year. Of the loss, $1.6 billion was a goodwill impairment from its U.S. retail annuity business, where variable annuity sales dropped by 46%, or $4.6 billion.
MetLife is the biggest U.S. life insurer by assets. You might remember it from the Snoopy blimps. But don’t get caught by the marketing blitz. Variable annuities have a tough road ahead. It may not be long before annuity owners pay for some of the losses. Instead of investing in variable annuities, choose an investment advisor to maximize the return you achieve on your nest egg.
