Fidelity Stops Sales of MetLife Variable Annuities

According to a recent InvestmentNews article, Fidelity Investments suspended sales of MetLife Inc.’s retail variable annuities, as their sales fell by almost 40% in the second quarter of this year. MetLife’s retail variable annuity sales were down 39% year-over-year in the second quarter, primarily due to the sales suspension by Fidelity. In 2015 alone, MetLife was the number eight seller of variable annuities, with more than $7 billion in total sales. In February, Fidelity suspended the sales of MetLife products in the Growth and Income Annuity and the Accumulation Annuity. This was because the insurer announced in January that it was planning a separation of its U.S. retail unit, which provides variable annuities. This uncertainty over the potential sale or initial public offering of the business led to its decision to stop the sales. MetLife had $1.1 billion in variable annuity sales in the second quarter, compared to $1.9 billion in the same quarter in 2015. Insurers have seen industry-wide variable annuity sales slide over the past several years. Total first-quarter sales were at their lowest in 15 years, due mainly to market volatility. Sales are expected to continue to go down as new regulation comes into effect next year. Please call our securities law firm today to speak to an attorney. 312-332-4200.