To provide customers with more option in a single product,
Genworth Financial Inc
) unveiled Index Universal Life (IUL), a first of a kind
insurance product that combines a death benefit with tax-deferred
cash accumulation as well as an optional Accelerated Benefit
Rider for Long Term Care Services.
GENWORTH FINL (GNW): Free Stock Analysis
CHINA LIFE INS (LFC): Free Stock Analysis
PROTECTIVE LIFE (PL): Free Stock Analysis
STANCORP FNL CP (SFG): Free Stock Analysis
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Moreover, the product has the potential to generate higher
returns compared to the traditional fixed life insurance products
currently available in the market. It also offers the benefit of
lower risk compared to variable universal life insurance
The product features death benefits along with the potential of
higher growth in policy value. It does this by linking the
crediting strategy with the S&P 500 Index. Additionally, it
insulates from market downfall, offers supplemental income for
retirement and Optional Accelerated Benefit Rider for Long Term
Care Services (the policy holders will have to incur added cost
for this benefit).
The continued low interest rate environment is aiding index UL
policies to experience huge sales. It surged to a $1.54 billion
market in 2012 from just about $300 million market in 2006. These
policies presently contribute about 30% of total UL premiums and
12% of all individual life insurance premiums. Introduction of
such a value added product will help Genworth capitalize on the
Genworth has been taking initiatives to strengthen its portfolio.
To better focus on generating capital, increasing the financial
strength and flexibility of the company as well as simply the
business model, Genworth decided to divest the wealth management
Genworth has been delivering solid results, surprising the Zacks
Consensus Estimate for straight three quarter with an average
surprise of 24.5%. With sustained focus on consolidating its
portfolio and thus better serve its customers, we expect the
momentum to continue.
Genworth carries a Zacks Rank #3 (Hold). Life insurers
Protective Life Corporation
StanCorp Financial Group Inc
) with Zacks Rank #1(Strong Buy) and
China Life Insurance Co. Ltd
) with Zacks Rank #2 (Buy) are worth noting.