For years, Lincoln Financial has effectively been raising prices on its variable annuities, yet consumers keep buying. The companys VA business exceeds desired levels now, so further price increases have been announced: cutbacks in benefits offered to consumers. The expected result is a boost in second-quarter business but a slowdown in the second half of 2013.
We've increased pricing pretty significantly, either through reducing the benefit levels or from actually increasing the charge on our riders, Dennis Glass, CEO and president of Lincoln Financial Group, said in response to a question at a recent first quarter earnings call. We continue to see good demand from consumers. Glass added that price changes throughout the industry have not yet reached the point where consumers are discouraged from buying VAs.
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