MARINA DEL REY, Calif., July 6, 2000 (PRIMEZONE) - AnnuityScout.com, a leading independent marketplace for no load annuities, has recorded $10 million in annuity sales in the three months since the launch of its web site in March. The launch of the company's web site, at www.AnnuityScout.com, coincided with the receipt of $9.25 million in first round funding led by Chase Capital Partners.
"We strongly believe that the launch of our web site has significantly enhanced our presence in the annuity marketplace and has contributed to our overall business," said AnnuityScout.com Chairman and CEO Gregory G. Yost. "Since the launch of the site, we have seen a shortening of the sales cycle, received a great deal of positive feedback and we are starting to see not only business, but repeat business. We are well on the way to validating our marketplace model, that annuities can be bought-not sold-over the Internet, in a similar fashion to the multibillion dollar direct sold no load mutual fund market."
AnnuityScout.com evolved from Independent Advantage Financial and Insurance Services, Inc. (IAF). Founded in 1987, the company has facilitated the purchase of over $1 billion in direct sold annuities and high-end life insurance making it one of the top independent brokers of tax-deferred annuities. The company's success mirrored the rise in the overall annuity industry, which has grown to nearly $200 billion annual business increasing approximately 20% a year. As IAF, the company was the first to market fixed and variable annuities direct to the consumer with a marketplace approach, utilizing alliance and affiliate endorsements.
Alliance marketing methods have proven to be ideal for the transition to the Web, which allows for "mass one-on-one" direct marketing. As the Internet allows AnnuityScout to reach more people than ever before, at less cost than ever before, the company is able to lower overhead and pass substantial savings on to their customers. Since the launch of the AnnuityScout.com web site, the company has added CBS Marketwatch, SeniorNet, PerksatWorks (Abilizer), Quotesmith and SmartMoney to their existing family of alliances.
"Using the Internet for its reach and ability to teach our customers one-on-one the benefits of annuity investing has allowed us to create the first ever on line 'supermarket' for no load annuities. This on line choice of product offers a tremendous value over traditional broker sold products," Yost added. "Going on line was the next logical step for AnnuityScout, allowing us to pull together everything we've learned in the last 12 years to give our customers the best value and buying experience on or off line.
AnnuityScout.com makes available today's new breed of no-load, no surrender variable annuities to investors that have come to expect, professional asset management, low fees, easy access and the power of tax deferral all in one simple package. AnnuityScout also offers a selection of competitive fixed-rate annuities, indexed annuities, and income annuities.
AnnuityScout.com Is An Annuity Marketplace Designed For All Levels of Users
The AnnuityScout.com web site is specifically designed to meet the needs of all levels of annuity shoppers. The home page offers visitors three distinct paths to choose from. Those new to tax-deferred investing are offered a series of easy-to-use tools to help them decide if an annuity is the right investment for them. Those familiar with annuities may choose to view a select set of fixed and variable annuities which may be applied for on line. Current annuity owners can compare their investments with current offerings to assess whether or not it is time for a Tax Free Annuity Exchange.
About AnnuityScout.com: "Annuities Done Right"
AnnuityScout.com is an independent annuity service for both consumers and the company's business-to-business alliances. Located at www.AnnuityScout.com, AnnuityScout is the first company to bring together a comprehensive, on line no load marketplace for annuities - representing over 40 highly rated companies - to be purchased direct by consumers who want more value from their annuities. AnnuityScout's state-of-the-art call center is staffed with nationally licensed Annuity Specialists and is a free service of Independent Advantage Financial and Insurance Services, Inc. (IAF). Founded in 1987, IAF has facilitated the purchase of over $1 billion in annuities and high-end life insurance direct to the consumer through alliances and other endorsements. AnnuityScout.com is headquartered in Marina Del Rey, California and can be reached at 1 (800) TAX-CUTS (829-2887).
About the Annuities Industry
LIMRA International (an independent service that monitors the Insurance Industry) reports that overall annuity sales (combined variable and fixed annuities) grew from $98.5 billion in 1995 to (an estimated) $155 billion in 1999. This represents an average annual growth rate of 12%. Variable annuity sales have shown even greater growth. According to The VARDS Report (an independent service that monitors the variable annuity sales), the variable annuity market has grown from $51 billion in 1995 to $121 billion in 1999, a compound annual growth rate of 19%. First quarter 2000 sales for variable annuities reached $35 billion (The VARDS Report), a trend that could make 2000 a record year for variable annuity sales and could push the overall market past $200 billion. The independent Gallup Report estimates there are 11.6 billion current annuities "on line" (defined as annuity owners who regularly use the Internet and e-mail.)
Licensed employees of Independent Advantage Financial and Insurance Services, Inc. dba AnnuityScout.com, are registered representatives of, and securities are sold through, Sentra Securities Corporation, a registered broker-dealer, member NASD/SIPC.
Variable annuities are sold only by prospectus which contains complete information on charges, expenses and risk factors. Prospective investors may obtain a prospectus by contacting AnnuityScout.com at 1 (800) TAX CUTS (829-2887). The prospectus should be read carefully before investing or sending money.
Variable annuities involve investment risks including the possible loss of principal. An investor's contract, when redeemed, may be worth more or less than the original investment amount.
Annuities are designed as long-term retirement savings vehicles. Earnings withdrawn prior to age 59 1/2 may be subject to a 10% federal tax penalty. Individuals should consult their tax advisor for questions regarding their particular situation.