Edward Jones protected against VA ban by Protective

Insurer no longer taking 1035 exchanges or rollovers, but brokerage gets pass
OCT 31, 2013
Protective Life Corp. stopped taking 1035 exchanges and rollovers into its variable annuities Monday, but the ban on these dollars won't affect advisers with Edward Jones. The firm currently offers the O-share version of Protective Life's variable annuity, a share class that combines the pricing attributes of A and B shares. Protective has long been a top VA brand at Edward Jones. It was the No. 3 variable annuity provider at the brokerage last year, trailing only Lincoln National Corp. and Prudential Financial Inc. “They're consistently among the top four or top five,” said Merry Mosbacher, principal in the insurance marketing unit at Edward Jones. The firm has a relationship with Protective Life dating back to 1994. In a May 13 filing with the Securities and Exchange Commission, Protective sought to ban 1035 exchanges and rollovers in an attempt to moderate its variable annuity inflows. Retrenchment in the VA space has led to pickups in volume at other companies, including Protective: The firm generated $580 million in sales during the first quarter, up from $567 million in the year-earlier period. Eva Robertson, a spokeswoman for Protective, noted that VA products offered by the insurer can differ from one channel to another and that in this particular circumstance, Edward Jones isn't affected.

Latest News

Former Wells Fargo exec Brendan Krebs emerges at PNC
Former Wells Fargo exec Brendan Krebs emerges at PNC

The 25-year industry veteran previously in charge of the Wall Street bank's advisor recruitment efforts is now fulfilling a similar role at a rival firm.

Trio of advisors switch for 'Happier' times at LPL Financial
Trio of advisors switch for 'Happier' times at LPL Financial

Former Northwestern Mutual advisors join firm for independence.

Indie $8B RIA adds further leadership talent amid growth drive
Indie $8B RIA adds further leadership talent amid growth drive

Executives from LPL Financial, Cresset Partners hired for key roles.

Stock volatility remained low despite risk events
Stock volatility remained low despite risk events

Geopolitical tension has been managed well by the markets.

Fed minutes to provide signals on rate cuts
Fed minutes to provide signals on rate cuts

December cut is still a possiblity.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound