DSG-Network.com: Press Releases

DSG Completes Variable Payout Annuity Study

October 28, 2004, Wayne, PA — The Diversified Services Group, Inc. (DSG) today announced the completion of its annual study on the variable payout annuity industry and market. The report, The 5th Annual Variable Payout Annuity Industry Study, includes the findings of two separate, but complementary, research efforts: a survey conducted among variable annuity companies and a series of executive interviews.

The study examined variable payout annuity industry activity and results, and also delved into the broader "retirement income management market" strategies. It provides a timely view of industry results, competitive behavior, product features, and a strong sense of current efforts to address the retirement income market opportunity.

Selected findings include:

As of mid-2004, there are 17 firms that provide stand-alone immediate variable annuity (IVA) products to the marketplace.
The average IVA product sale amounted to approximately $114,000 per contract.
Nearly 2/3 of companies surveyed have increased their focus and attention on the retirement income market within the past year.
Guaranteed living benefit (GLB) features with variable annuity products have made significant inroads recently, perhaps to the detriment of the pure IVA product sales and the emphasis on individual payout annuity options.

According to Wm. Borden Ayers, a DSG Principal and leader of its retirement market practice, "Although the advance of GLB options may have taken some attention away from the IVA products, we continue to see growth in the importance of the retirement income market among our respondents. In our interviews with key executives across the industry, we saw a growing enthusiasm for the retirement income opportunity. Most of them realize that there will be no single-product solution; rather a range of products and approaches will be needed to satisfy retirees’ income needs."

This variable payout annuity study is part of an ongoing series of syndicated research reports about the ‘Retirement Management Market’ known as the RM² Reports™. These reports focus on issues that firms face as they develop services, products and marketing initiatives to reach individuals and compete at and after the Retirement Inflexion Point™.

DSG is a multi-disciplined firm that provides consulting, research, information and sales executive development to the financial services industry. The Retirement Practice includes a particular focus on the issues surrounding The (post) Retirement Income/Assets Management Market.

For further information, contact:

James Sholder, Principal
Ph: 610-889-1792
Fax: 610-989-1730
e-mail: JimS@dsg-network.com

The Diversified Services Group, Inc.
303 West Lancaster Avenue
Suite 2E
Wayne, PA 19087-3938