Allmerica, especially, would add to Lincoln National's variable annuity business.
But the variable annuity is their safety vehicle".
Conseco, for example, had a return of 42.83 percent last year with a nonbonus variable annuity with annual charges of 1.74percentt, compared with a return of 33.95 percent for American Skandia's bonus variable annuity, according to Variable Annuity Research.
Their share prices are depressed because the decline in the markets has hurt variable annuity sales as well as the fees insurers collect for managing variable annuity accounts.
"To date, there's been no finding of widespread abuse within the variable annuity industry".
"And it gets built into the prices and fees inside the variable annuity contract".
They might benefit by selling one type of variable annuity over another or one type of variable annuity rider over another.
Some variable annuity plans are tied directly to a cost-of-living index.
One of the pioneers of variable annuity bonuses, American Skandia, just this year became the No. 1 selling variable annuity company, taking the lead away from Hartford Life, which, until a few months ago, had not offered bonuses.
A form of life insurance, it provides a silver lining for anyone who put money into a variable annuity.
Helen Patton, 88 and a widow, said she had put almost $30,000 in a variable annuity fund.
