View more on these topics

Lincoln absorbs pledge cost

Lincoln Financial Group insists it has no plans to put up prices on the guarantees offered on its i2 Live product or reduce the maximum equity.

In the past month, variable annuity providers Aegon Scottish Equitable and MetLife have increased the price of guarantees to reflect continued volatility in the derivative market. The Hartford is also believed to be reducing its maximum equity exposure to derisk its portfolio.

But Lincoln head of products and marketing Simon O’Connor rules out any imminent changes to its product, saying the firm will absorb the cost of securing guarantees. He says: “We will keep it under review and if we feel we need to change the level of guarantee we will take necessary action but today we have no plans to do that.”

Hargreaves Lansdown pensions analyst Nigel Callaghan says: “Of all variable annuity contracts, Lincoln has given itself most room for manoeuvre. I am not surprised they are the least worried about increased costs but I do not see how they can continue to absorb the extra cost indefinitely.”

Recommended

Court out

The FSA and the life offices caught up in the Lautro debacle have a long month ahead of them while they wait for the High Court to consider the appeal against naming those involved.

Moody’s downgrades L&G

Credit ratings agency Moody’s has downgraded Legal & General Assurance Society’s insurance financial strength rating from Aa1 to Aa2 and L&G Insurance Limited’s IFSR rating from Aa3 to A1.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com