Settlement Claim

An insurance contract between the insurance company and the insured is one of trust. The moment of truth in this relationship appears when there is a claim by the insured (in the case of a non life policy) or by the dependents (in the case of a life insurance claim). Till that moment comes, everything is hunky dory- premiums are being paid regularly by the clients, and the company is only too happy receiving them. However, the moment a claim appears, an insurance company proceeds to evaluate the claim closely, as every claim paid out is an expense for the company, hurting profitability. Thus, there is a basic conflict here: the insured wants the maximum claim to be paid, while the insurer would like to reduce the claims outflow to the extent possible.

From a customer's point of view, it is very important to study the claims settlement history of a life insurance or a general assurance company before deciding to purchase an insurance policy from that company. During the sales process, the sales representatives will be all sugar and honey so that the prospective customer signs up. But the fact of the matter is that if the insurer you are considering has a bad history of claims settlement, there is a high probability that you will face a claim rejection or reduction when the time comes for you to file a claim.

Claim settlement

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How to Sell Structure Settlement Funds?

A settlement paid in such a way where the defendant, the plaintiff's attorney and a financial representative agrees of paying a settlement in installment instead of paying a huge amount at once is called a structured settlement. This usually happens when a plaintiff decides to settle the case through a large amount of money. Most of the time, a settlement is done by purchasing one or more annuities that guarantees the future payments needed to be made.

Paying for a settlement simply depends on how both parties agreed the payments to be done. For example, the settlement can be paid through annual installments within a few years, or in periodic lump sums once every couple of years.

One benefit of having a settlement is the ability to avoid taxes. With a proper set-up, a settlement like this can significantly reduce the plaintiff's tax obligations as an offshoot of the settlement itself. There are even cases when it becomes totally tax free.

Sell my settlement
A settlement can also protect the plaintiff from dissipating the funds meant to take care of future needs. There are times when structured settlements even protect the plaintiff from himself - there are people who are just bad with handling money, especially in overwhelming amounts; and there are some who can't refuse their relatives who wants to take part in the wealth money. Large settlement pays are usually exhausted quite easily and quickly.

People who have settlements are often approached by companies interested in buying the settlement, or may be curious if you have intentions to sell the structured settlement in return for a lump sum buyout. A rough two thirds of all states have laws which prohibit people to sell their structured settlement, while tax-free settlements are also subjected to a few federal restrictions on their sale to a third party.

There are insurance companies who have a policy of no assigning or transferring annuities to third parties as well as discouraging any sale at all. However, you can still sell structured settlement for as long as the state you live in allows it.

Always keep in mind that companies who buy structured settlements from people have only one goal - to gain profit from their purchase, that is why sometimes their offers are a bit low. You can however try approaching more than one company if you wish to sell a structured settlement, just to make sure that you get the highest payoff.

Make sure that the company you will sell your settlement to is well established, reputable, and well funded. You do not want trust your money to some mediocre and unreliable entity who can just easily disappear and go bankrupt even before paying you the entire buyout money.

If you have a structured settlement, you may want to use the money before it is due to you. You can always sell structured settlement funds at any time if you don't want to wait to be given the money that is yours.

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What is Settlement Money

Are you in possession of, or about to receive, structured settlement money from a personal injury claim or from a previous employer as worker's compensation? Unless you have many kids who have good jobs and may help provide for your needs for the rest of your life, you may want to invest your structured settlement money far out into the future to help you grapple financially with needs or opportunities that present themselves in the future.

Your structured settlement money may very well serve as your retirement savings. If there is more than enough for your present needs and you are thinking of ways to guarantee a steady income stream in the future, you may want to consider investing in an annuity.

Having at hand a lawyer and choosing an ethical structured settlement buyer backed by many years of experience are very important. A knowledgeable financial services company will also be able to explain all of the laws you need to comply with in selling your structured settlement.

As for the annuity you are eyeing, you need to update your knowledge and evaluate which among the various forms is just right for you. If you opt for a fixed immediate annuity, you'll get a regular income stream on a monthly basis. There are suitable ages to invest on an annuity, though. If you're in your late 50s or 60s, that may be the best time to buy, as there will be no penalty in case you need to withdraw funds.

The main advantage people see in an annuity is the opportunity to accumulate tax-deferred income up until you begin making withdrawals once you retire. Aside from tax that comes with regular income, taking funds from your annuity before the age of 59-and-a-half years will require payment of a penalty fee of 10 percent federal income tax.

If you think a fixed annuity, which pays a guaranteed rate of return and can be immediate (or deferred) is right for you, discuss a suitable plan with a professional financial advisor. Individuals who do not have that much wealth will do well not to put all their funds in one basket. Reserve some ready cash for medical care or emergency. If you're in tiptop health, though, and in your 50s or 60s, an annuity makes a lot of sense, and can be a great choice for making money with your structured settlement.

For additional information on how to get cash for structured settlement and cash for settlement options, visit these great sites.

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How to Sell Settlement Payments ?

Selling Structured Settlements is a growing trend that has been witnessed in the recent years. This solution has enabled people to get cash in times of urgent needs. Read this article to get a fair idea about how to sell structured settlement payments and get the most out of it.


It is an insurance or financial agreement that a claimant accepts to dissolve a personal injury tort claim. The money in such cases is paid to the claimant either through periodic payments or in lump sum or as a combination of both. The settlement is structured because the payouts follow a certain structure, where the money is paid periodically and the courts decide this period. In broader terms, it is a settlement because the claimant agrees to resolve the lawsuit in lieu of the money.

Sometimes when people feel that they do not require the periodic payments, they usually opt for selling the settlements to make an immediate profit. Though, there are may be other situations too, when the claimant might be in serious need to liquidate these settlements. The reasons can be many, starting from the need to purchase a house or a car, to pay medical bills, fees for children's education, to buy a property or to start a business. Today, more and more people are choosing to sell their settlements in order to get immediate cash.

The procedure of getting the money by selling these settlement payments varies from state to state legislation. Most state courts allow the claimant to sell off the structured settlement only after a court order is passed. However, in recent times this process has been made more streamlined and faster. The money to be received from the sale of the structured settlement may depend on a few factors like the total amount of the annuity, the frequency and the amount of periodic payments and finally, the present value of the annuity.

When one plans to accept cash for settlements, the need is to find a buyer who is reliable and most likely a long-term operator in the industry. The structured settlement buyer may be an individual, trading various funds or a rich experienced funding company. It is always safe and beneficial for people to choose a reputed company because there is a greater chance of getting more returns than expected. There are situations wherein people get more value exceeding their expectations. However, all this depends upon the kind of company a person selects to sell the structured settlement payments to. In case of any doubt, the need is to avail the services of a financial company that can aptly help in choosing the right buyer. Another option could be to hire a financial advisor who can guide about the potential buyers, as to who could give the best value on the settlements.

A good thing about professional settlement buyers is that they recommend people to sell only that much part of the structured settlement that can give them the money that is urgently needed. This helps people to keep the rest of the structured settlement for their future needs.

The option of selling structured settlement payments is certainly a great opportunity for people who require instant money for urgent financial needs. The only requirement from a person's perspective is to find a structured settlement buyer, who could provide the money that is needed on time.

This article has been written by an expert working with FairFund Financial Group Inc., who offers instant cash when people sell structured settlement and cash for settlements to them.

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How to Sell My Settlement

Have you just been awarded settlement for injuries you sustained while at work? If yes, is the amount that you receive now enough to pay your medical bills, since the rest of the fund will be distributed over the next 20 years? If not, then what can you do about that?

Structured settlement may work fine for some people, but definitely not for those who urgently need a large amount of money to pay for hospitalization and soaring medical bills. The only option you have is to sell your structured settlement and receive the amount that you need now. But selling these periodic payments is not a piece of cake. You have to find a trusted structured settlement company to purchase your settlement.


Structured settlement companies either buy or sell structured settlements to give victims a second choice to consider their payments and to provide those claimants who are in need with a huge amount rather than a long-term financial security.

If you wish to sell your structured settlement, see to it that you sell your payments to a trusted company, since a transaction of this nature cannot proceed without the ruling of a judge. Likewise, if you wish to purchase a structured settlement, you must look for a reliable structured settlement company that you can trust.

Selling and buying structured settlements are transactions that you should think over before making any decision. If you are thinking of selling or buying settlement payments to a structured settlement company, you have to check first with multiple companies in order to get the highest payoff possible. Also, make sure that the company that buys or sells structured settlement is well established and a reputable one.

Sell Structured Settlements provides detailed information on Sell Structured Settlements, Sell Structured Insurance Settlements, Sell Structured Settlement Payments, Sell Structured Settlement Companies and more. Sell Structured Settlements is affiliated with Structured Settlement Brokers.

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Stock Update (NYSE:MET): MetLife Declares Second Quarter 2014 Preferred ...

[Business Wire] - MetLife, Inc. announced today that it has declared second quarter 2014 dividends of $0.2555555 per share on the company's floating rate non-cumulative preferred stock, Series A , and $0.4062500 per share on the company's 6.50% non-cumulative preferred stock, Series B .Read more on this.

MetLife, Inc. (MET), with a current value of $55.75B, started the session at $50.65. Looking at the equity, the company's one day range is $49.06 to $50.68 with a one year range of $41.43 to $54.80. MetLife (MET) shares are currently priced at 9.21x this year's forecasted earnings, which makes them relatively inexpensive compared to the industry's 16.71x earnings multiple for the same period. The company pays shareholders $1.40 per share in dividend income per year, for a current yield of 2.70%. Consensus earnings for the current quarter by the 20 sell-side analysts covering the stock is an estimate of $1.42 per share, which would be $0.02 worse than the year-ago quarter and a $0.00 sequential decrease. The full-year EPS estimate is $5.65 which would be a $0.02 better than last year's full-year earnings. The quarterly earnings estimate is predicated on a consensus revenue forecast of $17.62 Billion. If reported, that would be a 3.40% increase over the year-ago quarter. Recently, UBS downgraded MET from Buy to Neutral (Jan 6, 2014). Previously, Deutsche Bank Initiated MET at to Hold. The average price target for MET shares by the analysts covering the stock is $60.24, which is 18.93% above where the stock opened this morning. Summary (NYSE:MET) : MetLife, Inc., through its subsidiaries, provides insurance, annuities, and employee benefit programs in the United States, Japan, Latin America, Asia, Europe, and the Middle East. It operates in six segments: Retail; Group, Voluntary & Worksite Benefits; Corporate Benefit Funding; Latin America; Asia; and Europe, the Middle East and Africa. The company provides variable, universal, term, and whole life products; individual disability income products; personal lines property and casualty insurance, including private passenger automobile, homeowners, and personal excess liability insurance; and variable and fixed annuities for asset accumulation and distribution needs, as well as mutual funds and other securities products. It also offers group insurance products, such as variable, universal, and term life products; dental, group short- and long-term disability, and accidental death and dismemberment coverages; and voluntary and worksite products consisting of personal lines property and casualty insurance, as well as LTC, prepaid legal plans, and critical illness products. In addition, the company provides annuity and investment products comprising guaranteed interest products and other stable value products, income annuities, and separate account contracts for the investment management of defined benefit and defined contribution plan assets; and structured settlements and products to fund postretirement benefits and company-, bank- or trust-owned life insurance, as well as health insurance, group medical, credit insurance, endowment, retirement, and savings products. It serves individuals and corporations, as well as other institutions and their employees. The company sells its products through sales forces, third-party organizations, independent agents, and property and casualty specialists, as well as through career agency, bancassurance, direct marketing, brokerage, and e-commerce channels. MetLife, Inc. was founded in 1863 and is based in New York, New York. Tag Helper ~ Stock Code: MET | Common Company name: MetLife | Full Company name: MetLife Inc (NYSE:MET) .

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George Osborne's pension reforms hit Aviva annuity sales

Aviva. Pic: PA.

Ben Woods, Business writer Thursday, May 15, 2014 1:08 PM

Aviva has branded its performance as 'calm and stable' despite a slump in annuity sales and a marked decline in its UK life insurance business.

A double hit from the government's announced pension shake-up, and a decision by the group to sell fewer high-margin products, has caused annuity sales to fall 21pc during the first quarter, while the value of new business (VNB) for annuities was 43pc lower at £40m.

But group chief executive Mark Wilson hopes that targeting the market for mid-sized bulk purchase annuities will help soften the impact of the reforms set out in the chancellor's budget that allow retirees to access their pension pots without buying an annuity.

It came as strengthening demand overseas offset a sluggish UK performance, with total VNB up 13pc to £228m, as the UK slumped 22pc to £89m while Asia surged ahead at 96pc and Europe continued to rise at 45pc.

Mr Wilson said a 'polar vortex' in Canada had dealt a £40m blow to the general insurance business which also paid out £60m in the UK, as the storms and floods took their toll during January and February.

'Aviva's overall performance in the first quarter was reassuringly calm and stable in marked contrast to the weather and regulatory developments,' he said.

'Aviva still faces challenges both in the external environment and in the business as we progress our turnaround,' he added. 'The regulatory environment is constantly changing and soft conditions persist in certain general insurance lines.

'As a business we remain focused on cash flow, expense efficiency and the clinical allocation of capital to areas where we can maximise returns. There is still much to do.'

Reporting its first quarter results, Aviva revealed an operating capital generation of £0.4bn as it continues to push forward with its expenses reduction programme.

Since March, the insurer has weilded the axe on a number of its overseas ventures - disposing of its Turkish general insurance business, the US asset management boutique River Road, and a South Korean joint venture, while also carrying out a significant restructure of its Italian business.

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BUZ LIVINGSTON: Too much home, too much danger

Rank from one to three the following: Making the mortgage payment, having fun, saving for retirement. No changes, huh? It's no character flaw merely human nature. Until agriculture was invented five or six thousand years ago, long term planning meant finding something to eat day after tomorrow. The problem is we delude ourselves into believing mortgage payments and saving are economically equivalent. Why not? We kill two birds with one stone and can have fun.

An unfortunate corollary is ending up with more home than necessary. Don't forget a house is a consuming asset. Just keeping the sucker running costs between three and five percent annually. Take the time, do the math. These operating expenses include taxes, insurance, maintenance and utilities but not mortgage payments. The deck is stacked against you, too. The guidelines mortgage companies and banks use practically ensure you will buy too much house. The mortgage industry wants to loan you the maximum amount you can painfully repay. Understand the game.

For decades a surefire way to financial security was to have your home appreciate in value, sell it when you retire and move to a new place. That strategy went out with dial-up internet. Still, many retirees find themselves house poor with more assets in home equity than retirement savings. A recent study found only the top 20 percent of households had more retirement savings (401K, IRAs, taxable savings or annuities) than the value of their home. For singles it was more dramatic with only 10 percent of single households having financial assets greater than the value of their home.

Your goal should be a debt-free home in retirement and more retirement savings than home equity. If you are retired or approaching retirement and have more home equity than savings, owning less house is essential. I don't worry so much about younger people. Most of them have figured out, either vicariously or the hard way, the 'my-house-will-make-me-rich' fallacy. Buy a smaller house than the mortgage guidelines allow or even rent. Then live within your means.

When doing retirement projections seldom do I consider home equity as a retirement asset like an IRA or a 401K. I include home equity on the balance sheet but you have to live somewhere and it's not like you can sell the garage if you need $20,000. Home equity should be a retirement fallback position or rally point.

What about reverse mortgages? Washed-up entertainers peddling reverse mortgages registers positive on my BS detector. But Suze Orman doesn't like reverse mortgages so color me conflicted. Deciding to use a reverse mortgage is extremely complex. Plus reverse mortgages are very expensive. The amount you can 'borrow' is based on the value of your home and expected longevity. When the younger spouse is over 70 and you have no desire to keep the home in the family, mull over a reverse mortgage. Understand that the loan will have to be repaid if you move, say to assisted living, or at the last spouse's death. Be careful when an asset manager recommends a reverse mortgage. A reverse mortgage means more billable assets for them since you won't be spending down investments.

Even though Buz Livingston is a fee-only Certified Financial Planner this should not be considered personal advice. For specific advice visit us online at http://ift.tt/T91Uzz or at our new office in Redfish Village , 2050 Scenic 30A, M-1 Unit 230.



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Scout Investments Awarded $400 Million Variable Annuity Mandate From ...

- Scout Investments, Inc. (Scout) announced today that it has been awarded a $400 million mandate from Jackson National Life Insurance Company^® (Jackson ^®) for the newly launched JNL/Scout Unconstrained Bond Fund.

The JNL/Scout Unconstrained Bond Fund (the Fund) is managed by lead portfolio manager Mark Egan and the seasoned team of Tom Fink, Todd Thompson and Steve Vincent. The team has managed unconstrained fixed income accounts for over 16 years and was among the first in the industry to do so. The Fund is available within Jackson's Elite Access ^® Variable Annuity investment platform (Elite Access).

Elite Access is a variable annuity designed to offer portfolio diversification through the use of both traditional and alternative classes in a tax-efficient vehicle ¹.

'We are pleased to partner with Jackson to bring our unconstrained fixed income investing expertise to its variable annuity platform, and we look forward to a successful long-term relationship,' said Andy Iseman, chief executive officer of Scout Investments.

The objective of the JNL/Scout Unconstrained Bond Fund is to maximize total return consistent with the preservation of capital. The Fund seeks to maximize total return by systematically identifying and evaluating relative value opportunities throughout all sectors of the fixed income market.

The team employs a disciplined investment philosophy and process to select the 'best ideas' for the Fund. They may use derivative instruments, such as futures, options and credit default swaps, to manage risk and gain exposure. Given its strategy, the Fund is not managed against a benchmark.

'We feel confident that the new partnership with Scout will further Jackson's goal of helping investors address their individual financial goals,' said Alison Reed, senior vice president of Product and Investment Management for Jackson National Life Distributors, the distribution arm of Jackson. 'Through access to high-quality money managers within Elite Access, advisors are provided with a combination of traditional and alternative asset classes to help create a diversified investment portfolio.'

Additionally, Scout recently assembled an experienced team of sales professionals dedicated to supporting Scout's variable insurance partners.

'In the last two years, we have seen significant growth in our sub-advisory business within both equity and fixed income capabilities. Building out a dedicated team solidifies our commitment to provide top-tier support to this channel,' said Toby Cromwell, senior vice president, head of global institutional distribution at Scout. About Scout Investments

Scout Investments, Inc., a global asset manager headquartered in Kansas City, Mo., manages more than $32 billion in equity and fixed income investment strategies for institutions and individual investors. Scout is the investment subsidiary of UMB Financial Corporation (NASDAQ: UMBF). Please visit scoutinv.com for more information on our firm and our products. SCOUT, SCOUT INVESTMENTS, SEE FURTHER, the Scout design, and the Ribbon design - Reg. U.S. Tm. Off. NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE About Jackson Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $191.5 billion in assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit Jackson is the marketing name for Jackson National Life Insurance Company (Home Office: Lansing, Michigan), Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York) and Jackson National Life Distributors LLC. *Jackson has $191.5 billion in total IFRS assets and $178.5 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 12/31/13). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent company. Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for 165 years and has $733.6 billion in assets under management (as of December 31, 2013). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America. Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money. Although asset allocation among different asset categories generally limits risk and exposure to any one category, the risk remains that management may favor an asset category that performs poorly relative to the other asset categories. The subaccounts expect to invest in positions that emphasize alternatives or nontraditional asset classes or investment strategies and, as a result, are subject to the risk factors of those asset classes. Some of those risks include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high-yield bond exposure, noninvestment-grade bond exposure commonly known as 'junk bonds,' index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions and large cash positions. Variable annuities are long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½. www.jackson.comDiversification does not assure a profit or protect against loss in a declining market. The investment companies (subaccounts) offered in Elite Access are registered as investment companies under the Investment Company Act of 1940, as amended ('1940 Act'), and their shares are registered under the Securities Act of 1933, as amended. There are many differences among 1940 Act registered subaccounts and unregistered hedge funds, including but not limited to liquidity, restrictions on leverage and diversification, fund reporting and transparency, fees, and availability. International investing involves special risks, such as exposure to potentially adverse local political and economic developments, nationalization and exchange controls, potentially lower liquidity and higher volatility, possible problems arising from accounting, disclosure, settlement and regulatory practices that differ from U.S. standards, and the chance that fluctuations in foreign exchange rates will decrease the investment's value. The latest income date allowed is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a contract. The standard death benefit is equal to contract value on the date of the claim and does not include any additional guarantees. Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA650NY, VA660NY) by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states, and state variations apply. This product has limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable. Jackson issues other variable annuities with similar features, benefits, limitations and charges. Discuss them with your representative or contact Jackson for more information. Disclosures: This portfolio could lose money if the issuer or guarantor of a fixed-income security, or the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. This portfolios invests in derivative instruments such as, swaps, options, futures contracts, forward currency contracts, indexed securities and asset-backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange-traded funds, involves risks, including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested. Fixed income prices respond to changing economic environments including interest rate changes and credit risk perceptions of individual issuers which can negatively affect the price and income level. Investments in foreign securities are subject to adverse fluctuations in foreign currency values, political, less publicly available information, social and economic developments and possible imposition of foreign withholding taxes on income payable on the securities. They may be more volatile and less liquid than U.S. markets. Successful use of futures and forwards is dependent upon the sub advisors' skill and experience with those instruments and include risks including: imperfect correlation, potentially unlimited losses, inability to predict movements or direction, counterparty default, and margin requirements resulting in a disadvantageous sale. A portfolio that invests in high-yield bonds, lower-rated bonds, and unrated securities are broadly referred to as 'junk bonds,' and are considered below 'investment-grade' by national ratings agencies are subject to the increased risk of an issuer's inability to meet principal and interest payment obligations. . Reverse repurchase agreements, loans of portfolio securities, dollar rolls, buy backs, futures, forwards, and the use of when-issued, delayed delivery or forward commitment transactions, and other derivatives, may give rise to a form of leverage thereby amplifying the Fund's gains and losses and making the Fund more volatile.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a 'non-natural person' such as a corporation or certain types of trusts. The manager's investment techniques could fail to achieve the Fund's investment objective or negatively affect the Fund's investment performance. As with any investment in securities, variable annuities are subject to investment risks, including the possible loss of principal. Investor units will fluctuate with the performance of the underlying investments, and there may be a gain or loss upon redemption. All forms of securities may decline in value due to factors affecting securities markets generally, such as real or perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or currency rates or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. The values of securities may fall due to factors affecting a particular issuer, industry or the securities market as a whole.

When interest rates increase, fixed-income securities generally will decline in value. Long-term fixed-income securities normally have more price volatility than short-term fixed-income securities. Some equity securities may also be sensitive to interest rate changes. A security's value may decline for reasons that directly relate to the issuer, such as management performance, corporate governance, financial leverage and reduced demand for the issuer's goods or services.

Investments in securities that are difficult to purchase or sell (illiquid or thinly-traded securities) may reduce returns if the Fund is unable to sell the securities at advantageous times or prices. Illiquid securities may also be difficult to value.

Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates and exhibit additional volatility. When interest rates decline, borrowers may pay off their mortgages sooner than expected, which can reduce the returns. Swap agreements have default risk with the counterparty and risk that the Fund will not be able to meet its obligations to pay the other party to the agreement.



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Scout Investments Awarded $400 Million Variable Annuity Mandate From ...

KANSAS CITY, Mo., May 15, 2014 (BUSINESS WIRE) -- Scout Investments, Inc. (Scout) announced today that it has been awarded a $400 million mandate from Jackson National Life Insurance Company ® (Jackson®) for the newly launched JNL/Scout Unconstrained Bond Fund.

The JNL/Scout Unconstrained Bond Fund (the Fund) is managed by lead portfolio manager Mark Egan and the seasoned team of Tom Fink, Todd Thompson and Steve Vincent. The team has managed unconstrained fixed income accounts for over 16 years and was among the first in the industry to do so. The Fund is available within Jackson's Elite Access® Variable Annuity investment platform (Elite Access).

Elite Access is a variable annuity designed to offer portfolio diversification through the use of both traditional and alternative classes in a tax-efficient vehicle1.

'We are pleased to partner with Jackson to bring our unconstrained fixed income investing expertise to its variable annuity platform, and we look forward to a successful long-term relationship,' said Andy Iseman, chief executive officer of Scout Investments.

The objective of the JNL/Scout Unconstrained Bond Fund is to maximize total return consistent with the preservation of capital. The Fund seeks to maximize total return by systematically identifying and evaluating relative value opportunities throughout all sectors of the fixed income market.

The team employs a disciplined investment philosophy and process to select the 'best ideas' for the Fund. They may use derivative instruments, such as futures, options and credit default swaps, to manage risk and gain exposure. Given its strategy, the Fund is not managed against a benchmark.

'We feel confident that the new partnership with Scout will further Jackson's goal of helping investors address their individual financial goals,' said Alison Reed, senior vice president of Product and Investment Management for Jackson National Life Distributors, the distribution arm of Jackson. 'Through access to high-quality money managers within Elite Access, advisors are provided with a combination of traditional and alternative asset classes to help create a diversified investment portfolio.'

Additionally, Scout recently assembled an experienced team of sales professionals dedicated to supporting Scout's variable insurance partners.

'In the last two years, we have seen significant growth in our sub-advisory business within both equity and fixed income capabilities. Building out a dedicated team solidifies our commitment to provide top-tier support to this channel,' said Toby Cromwell, senior vice president, head of global institutional distribution at Scout.

1 Diversification does not assure a profit or protect against loss in a declining market. Portfolios that have a greater percentage of alternatives may have greater risks, especially those including arbitrage, currency, leveraging and commodities. This additional risk can offset the benefit of diversification. Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a 'nonnatural person' such as a corporation or certain types of trusts.

About Scout Investments

Scout Investments, Inc., a global asset manager headquartered in Kansas City, Mo., manages more than $32 billion in equity and fixed income investment strategies for institutions and individual investors. Scout is the investment subsidiary of UMB Financial Corporation . Please visit scoutinv.com for more information on our firm and our products.

SCOUT, SCOUT INVESTMENTS, SEE FURTHER, the Scout design, and the Ribbon design - Reg. U.S. Tm. Off.

NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE

About Jackson

Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $191.5 billion in assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com .

Jackson is the marketing name for Jackson National Life Insurance Company (home office:Lansing)(home office:Michigan), Jackson National Life Insurance Company of New York® (home office:Purchase)(home office:New York) and Jackson National Life Distributors LLC.

*Jackson has $191.5 billion in total IFRS assets and $178.5 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 12/31/13). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent company.

Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for 165 years and has $733.6 billion in assets under management (as of December 31, 2013). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

Although asset allocation among different asset categories generally limits risk and exposure to any one category, the risk remains that management may favor an asset category that performs poorly relative to the other asset categories. The subaccounts expect to invest in positions that emphasize alternatives or nontraditional asset classes or investment strategies and, as a result, are subject to the risk factors of those asset classes. Some of those risks include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high-yield bond exposure, noninvestment-grade bond exposure commonly known as 'junk bonds,' index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions and large cash positions.

Variable annuities are long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products.It also may not be available if the annuity is owned by a 'non-natural person' such as a corporation or certain types of trusts.

Diversification does not assure a profit or protect against loss in a declining market.

The investment companies (subaccounts) offered in Elite Access are registered as investment companies under the Investment Company Act of 1940, as amended ('1940 Act'), and their shares are registered under the Securities Act of 1933, as amended. There are many differences among 1940 Act registered subaccounts and unregistered hedge funds, including but not limited to liquidity, restrictions on leverage and diversification, fund reporting and transparency, fees, and availability.

International investing involves special risks, such as exposure to potentially adverse local political and economic developments, nationalization and exchange controls, potentially lower liquidity and higher volatility, possible problems arising from accounting, disclosure, settlement and regulatory practices that differ from U.S. standards, and the chance that fluctuations in foreign exchange rates will decrease the investment's value.

The latest income date allowed is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a contract.

The standard death benefit is equal to contract value on the date of the claim and does not include any additional guarantees.

Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson National Life Insurance Company (home office:Lansing)(home office:Michigan) and in New York (VA650NY, VA660NY) by Jackson National Life Insurance Company of New York (home office:Purchase)(home office:New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states, and state variations apply. This product has limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable. Jackson issues other variable annuities with similar features, benefits, limitations and charges. Discuss them with your representative or contact Jackson for more information.

Disclosures:

This portfolio could lose money if the issuer or guarantor of a fixed-income security, or the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. This portfolios invests in derivative instruments such as, swaps, options, futures contracts, forward currency contracts, indexed securities and asset-backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange-traded funds, involves risks, including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested. Fixed income prices respond to changing economic environments including interest rate changes and credit risk perceptions of individual issuers which can negatively affect the price and income level.

Investments in foreign securities are subject to adverse fluctuations in foreign currency values, political, less publicly available information, social and economic developments and possible imposition of foreign withholding taxes on income payable on the securities. They may be more volatile and less liquid than U.S. markets.

Successful use of futures and forwards is dependent upon the sub advisors' skill and experience with those instruments and include risks including: imperfect correlation, potentially unlimited losses, inability to predict movements or direction, counterparty default, and margin requirements resulting in a disadvantageous sale.

A portfolio that invests in high-yield bonds, lower-rated bonds, and unrated securities are broadly referred to as 'junk bonds,' and are considered below 'investment-grade' by national ratings agencies are subject to the increased risk of an issuer's inability to meet principal and interest payment obligations.

When interest rates increase, fixed-income securities generally will decline in value. Long-term fixed-income securities normally have more price volatility than short-term fixed-income securities.Some equity securities may also be sensitive to interest rate changes. A security's value may decline for reasons that directly relate to the issuer, such as management performance, corporate governance, financial leverage and reduced demand for the issuer's goods or services.

Reverse repurchase agreements, loans of portfolio securities, dollar rolls, buy backs, futures, forwards, and the use of when-issued, delayed delivery or forward commitment transactions, and other derivatives, may give rise to a form of leverage thereby amplifying the Fund's gains and losses and making the Fund more volatile.

Investments in securities that are difficult to purchase or sell (illiquid or thinly-traded securities) may reduce returns if the Fund is unable to sell the securities at advantageous times or prices.Illiquid securities may also be difficult to value.

The manager's investment techniques could fail to achieve the Fund's investment objective or negatively affect the Fund's investment performance.

As with any investment in securities, variable annuities are subject to investment risks, including the possible loss of principal. Investor units will fluctuate with the performance of the underlying investments, and there may be a gain or loss upon redemption. All forms of securities may decline in value due to factors affecting securities markets generally, such as real or perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or currency rates or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. The values of securities may fall due to factors affecting a particular issuer, industry or the securities market as a whole.

Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates and exhibit additional volatility.When interest rates decline, borrowers may pay off their mortgages sooner than expected, which can reduce the returns. Swap agreements have default risk with the counterparty and risk that the Fund will not be able to meet its obligations to pay the other party to the agreement.

SOURCE: Scout Investments, Inc.

For Scout Investments, Inc. Kristin Kovach, 816.423.6131kkovach@barkleyus.com

Copyright Business Wire 2014

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Scout Investments Awarded $400 Million Variable Annuity Mandate From ...

Scout Investments, Inc. (Scout) announced today that it has been awarded a $400 million mandate from Jackson National Life Insurance Company^® (Jackson ^®) for the newly launched JNL/Scout Unconstrained Bond Fund.

The JNL/Scout Unconstrained Bond Fund (the Fund) is managed by lead portfolio manager Mark Egan and the seasoned team of Tom Fink, Todd Thompson and Steve Vincent. The team has managed unconstrained fixed income accounts for over 16 years and was among the first in the industry to do so. The Fund is available within Jackson's Elite Access ^® Variable Annuity investment platform (Elite Access).

Elite Access is a variable annuity designed to offer portfolio diversification through the use of both traditional and alternative classes in a tax-efficient vehicle ¹.

'We are pleased to partner with Jackson to bring our unconstrained fixed income investing expertise to its variable annuity platform, and we look forward to a successful long-term relationship,' said Andy Iseman, chief executive officer of Scout Investments.

The objective of the JNL/Scout Unconstrained Bond Fund is to maximize total return consistent with the preservation of capital. The Fund seeks to maximize total return by systematically identifying and evaluating relative value opportunities throughout all sectors of the fixed income market.

The team employs a disciplined investment philosophy and process to select the 'best ideas' for the Fund. They may use derivative instruments, such as futures, options and credit default swaps, to manage risk and gain exposure. Given its strategy, the Fund is not managed against a benchmark.

'We feel confident that the new partnership with Scout will further Jackson's goal of helping investors address their individual financial goals,' said Alison Reed, senior vice president of Product and Investment Management for Jackson National Life Distributors, the distribution arm of Jackson. 'Through access to high-quality money managers within Elite Access, advisors are provided with a combination of traditional and alternative asset classes to help create a diversified investment portfolio.'

Additionally, Scout recently assembled an experienced team of sales professionals dedicated to supporting Scout's variable insurance partners.

'In the last two years, we have seen significant growth in our sub-advisory business within both equity and fixed income capabilities. Building out a dedicated team solidifies our commitment to provide top-tier support to this channel,' said Toby Cromwell, senior vice president, head of global institutional distribution at Scout.

About Scout Investments

Scout Investments, Inc., a global asset manager headquartered in Kansas City, Mo., manages more than $32 billion in equity and fixed income investment strategies for institutions and individual investors. Scout is the investment subsidiary of UMB Financial Corporation (NASDAQ: UMBF). Please visit scoutinv.comfor more information on our firm and our products.

SCOUT, SCOUT INVESTMENTS, SEE FURTHER, the Scout design, and the Ribbon design - Reg. U.S. Tm. Off.

NOT FDIC INSURED - NO BANK GUARANTEE - MAY LOSE VALUE

About Jackson

Jackson is a leading provider of retirement solutions for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $191.5 billion in assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com.

Jackson is the marketing name for Jackson National Life Insurance Company (Home Office: Lansing, Michigan), Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York) and Jackson National Life Distributors LLC.

*Jackson has $191.5 billion in total IFRS assets and $178.5 billion in IFRS policy liabilities primarily set aside to pay future policyowner benefits (as of 12/31/13). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards indicating how transactions and other events should be reported in financial statements. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent company.

Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for 165 years and has $733.6 billion in assets under management (as of December 31, 2013). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.

Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

Although asset allocation among different asset categories generally limits risk and exposure to any one category, the risk remains that management may favor an asset category that performs poorly relative to the other asset categories. The subaccounts expect to invest in positions that emphasize alternatives or nontraditional asset classes or investment strategies and, as a result, are subject to the risk factors of those asset classes. Some of those risks include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high-yield bond exposure, noninvestment-grade bond exposure commonly known as 'junk bonds,' index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions and large cash positions.

Variable annuities are long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a 'non-natural person' such as a corporation or certain types of trusts.

Diversification does not assure a profit or protect against loss in a declining market.

The investment companies (subaccounts) offered in Elite Access are registered as investment companies under the Investment Company Act of 1940, as amended ('1940 Act'), and their shares are registered under the Securities Act of 1933, as amended. There are many differences among 1940 Act registered subaccounts and unregistered hedge funds, including but not limited to liquidity, restrictions on leverage and diversification, fund reporting and transparency, fees, and availability.

International investing involves special risks, such as exposure to potentially adverse local political and economic developments, nationalization and exchange controls, potentially lower liquidity and higher volatility, possible problems arising from accounting, disclosure, settlement and regulatory practices that differ from U.S. standards, and the chance that fluctuations in foreign exchange rates will decrease the investment's value.

The latest income date allowed is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a contract.

The standard death benefit is equal to contract value on the date of the claim and does not include any additional guarantees.

Elite Access Fixed and Variable Annuity (VA650, VA 660) is issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA650NY, VA660NY) by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states, and state variations apply. This product has limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable. Jackson issues other variable annuities with similar features, benefits, limitations and charges. Discuss them with your representative or contact Jackson for more information.

Disclosures:

This portfolio could lose money if the issuer or guarantor of a fixed-income security, or the counterparty to a derivatives contract, repurchase agreement or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations. This portfolios invests in derivative instruments such as, swaps, options, futures contracts, forward currency contracts, indexed securities and asset-backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange-traded funds, involves risks, including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested. Fixed income prices respond to changing economic environments including interest rate changes and credit risk perceptions of individual issuers which can negatively affect the price and income level.

Investments in foreign securities are subject to adverse fluctuations in foreign currency values, political, less publicly available information, social and economic developments and possible imposition of foreign withholding taxes on income payable on the securities. They may be more volatile and less liquid than U.S. markets.

Successful use of futures and forwards is dependent upon the sub advisors' skill and experience with those instruments and include risks including: imperfect correlation, potentially unlimited losses, inability to predict movements or direction, counterparty default, and margin requirements resulting in a disadvantageous sale.

A portfolio that invests in high-yield bonds, lower-rated bonds, and unrated securities are broadly referred to as 'junk bonds,' and are considered below 'investment-grade' by national ratings agencies are subject to the increased risk of an issuer's inability to meet principal and interest payment obligations.

When interest rates increase, fixed-income securities generally will decline in value. Long-term fixed-income securities normally have more price volatility than short-term fixed-income securities. Some equity securities may also be sensitive to interest rate changes. A security's value may decline for reasons that directly relate to the issuer, such as management performance, corporate governance, financial leverage and reduced demand for the issuer's goods or services.

Reverse repurchase agreements, loans of portfolio securities, dollar rolls, buy backs, futures, forwards, and the use of when-issued, delayed delivery or forward commitment transactions, and other derivatives, may give rise to a form of leverage thereby amplifying the Fund's gains and losses and making the Fund more volatile.

Investments in securities that are difficult to purchase or sell (illiquid or thinly-traded securities) may reduce returns if the Fund is unable to sell the securities at advantageous times or prices. Illiquid securities may also be difficult to value.

The manager's investment techniques could fail to achieve the Fund's investment objective or negatively affect the Fund's investment performance.

As with any investment in securities, variable annuities are subject to investment risks, including the possible loss of principal. Investor units will fluctuate with the performance of the underlying investments, and there may be a gain or loss upon redemption. All forms of securities may decline in value due to factors affecting securities markets generally, such as real or perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or currency rates or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. The values of securities may fall due to factors affecting a particular issuer, industry or the securities market as a whole.

Rising interest rates tend to extend the duration of mortgage-related securities, making them more sensitive to changes in interest rates and exhibit additional volatility. When interest rates decline, borrowers may pay off their mortgages sooner than expected, which can reduce the returns. Swap agreements have default risk with the counterparty and risk that the Fund will not be able to meet its obligations to pay the other party to the agreement.

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Is the Starbucks Verismo a Failure?

When NASDAQ: Starbucks ( SBUX ) launched its Verismo home brewing system in 2012 around the holiday season, it did so with a huge in-store kickoff that included displays, demonstrations, and free samples. Those efforts were periodically toned down and ramped up throughout 2013 with another big push coming in the run-up to Christmas, when not only was the machine given a lot of floor space in many locations, its base model was sold for $99 -- less than half the $199 it cost at launch. (The base model System 580 is now selling for $119 on Starbucks.com while the more compact System 583 goes for $149, and the top-of-the-line 60 sells for $199).

Now with Mother's Day just passed and Father's Day ahead, the Starbucks I frequent most often has no sign of the Verismo machines and a very limited selection of pods. Three other Starbucks in my area have the machine in stock, but only a sliver of shelf space is being devoted to the home-brewing system, far less than what's dedicated to the company's Via instant coffee line and its offering of K-Cups for NASDAQ: Keurig Green Mountain's ( GMCR ) sort-of-rival home brewer.

This is certainly anecdotal evidence at best, but Starbucks appears less committed to carving out a piece of the home brewing market for its own machine and more interested in selling products for Keurig's machines and its own line of instant coffee. A leading expert in the field agrees that the Verismo has fallen as a priority for the chain.

'We don't believe it's selling well, and there has been a steady decline in the system,' Jay Brewer of SingleServeCoffee.com, a leading blog covering the single-serve coffee market, told the Fool. 'There's more interest in Via and their K-Cups. We have also never seen any advocates for the Verismo in our forums or in the comments of any of the articles.' What is a Verismo?

Starbucks describes the Verismo as using 'Swiss-engineered high-pressure technology' along with exclusive milk and coffee pods 'to create Starbucks-quality drinks at your fingertips.'

In less flowery terms, Verismo can make regular coffee drinks along with lattes. This is somewhat novel in the United States -- Keurig's K-Cup machine doesn't make lattes while NASDAQOTH: Nestle's ( NSRGY ) Nespresso line until recently only made espresso drinks. The Starbucks machine offers coffee pods, which make a traditional cup of coffee, and espresso pods, which make an espresso shot. Pair an espresso pod with a milk pod and you have a product that approximates the drinks sold in Starbucks stores (you can even buy the flavor syrup and chocolate/caramel drizzle used in-store).

From launch, Starbucks faced a challenge with Verismo -- it has to offer drinks that are price-competitive to other home brewers without massively undercutting the price offered in Starbucks stores, or else customers might stay home and rob the chain of other sales opportunities that come from having customers visit its locations. Starbucks coffee pods cost around $1 each. One pod makes a roughly six-ounce cup of coffee -- about half the size of a 'tall' at Starbucks, which costs around $2 (though prices vary from market to market). That's a little higher on average than the company's K-Cup packs, which it sells online for $19.95 for 24.

Starbucks roughly maintains the half-the-size, half-the-ratio model for its lattes, which require an espresso and a milk pod. The company sells a pack of eight espresso and eight milk pods for $12.95. One of each pod is used in making a latte that comes in around six ounces (maybe a little less) costing a little over $1.60 -- a little less than half the cost of a tall latte in most Starbucks (the price goes up a little at home when you factor in buying syrups and drizzles). What is Starbucks' plan?

Starbucks did not respond to my request for information on Verismo sales and the company did not mention the home brewing system in its annual report. In fact the company has said precious little about Verismo, though CEO Howard Schultz was clearly excited by its prospects when it launched. He spoke about the brewer in an earnings call in January 2013 when the company claimed it had sold 150,000 brewers in its first quarter of 2013.

'We remain committed to attaining leadership in the single-serve category, and I can tell you today that with Verismo we are in the nascent stage of building a multi-billion-dollar platform for Starbucks over the long term,' said Schultz. 'And we are in it for the long term.'

The company may be committed for the long term in the sense that it's not going to stop selling Verismo, but it's hard to see Starbucks making a dent in Keurig's near-total market share. Keurig had $4.3 billion in total sales in 2013 with $3.1 billion of that coming from portion pack sales and $827.6 million coming from Keurig Single Cup Brewer and accessories net sales. Almost all of that revenue came from the United States and Canada. Starbucks could, however, pass Nespresso for second place in the U.S. as Nestle's brewer line had only $300 million in sales in the U.S. in what the company estimates is a nearly $5 billion market for coffee pods/capsules. Starbucks can take a long view

Verismomay not succeed in the sense that it takes significant market share away from Keurig, but that doesn't mean Starbucks' single-cup/home brew strategy has failed. Starbucks has a devoted fan base and it has hedged its bet with that crowd by offering a multitude of home-based solutions for those wanting a single cup. It probably rankles Starbucks execs to have to cut Keurig in on the action when it sells a Starbucks-branded K-Cup, but that partnership makes Starbucks coffee available to the widest possible audience.

If Starbucks stopped offering K-Cups it might sell a few more Verismo units, but it would be doing so at the expense of locking itself out of a huge established user base for Keurig machines. That move might have a ripple effect where dedicated Starbucks fans try other brands -- perhaps NASDAQ: Dunkin' Donuts ( DNKN ) K-Cups -- so Starbucks was smart to partner with its rival while also building competitive offerings.

By not having all its eggs in one basket Starbucks has the luxury of being able to take a slow growth approach with Verismo. Even if the company only manages to get into a fraction of the homes Keurig has, every actively used Verismo becomes a bit of an annuity for the company, which can rack up pod and accessory sales.

With Verismo plus the Starbucks K-Cup offering along with the company's Via line (which just needs hot water), the company might not have achieved the single-serve at-home dominance it hoped for but it has a strategy that covers a lot of bases. That may not be enough to crack Keurig's hold on the at-home single-serve market but it should help Starbucks maximize revenue from its own loyal customers. Are you ready to profit from this $14.4 trillion revolution?

Let's face it, every investor wants to get in on revolutionary ideas before they hit it big. Like buying PC-maker Dell in the late 1980s, before the consumer computing boom. Or purchasing stock in e-commerce pioneer Amazon.com in the late 1990s, when it was nothing more than an upstart online bookstore. The problem is, most investors don't understand the key to investing in hyper-growth markets. The real trick is to find a small-cap 'pure-play' and then watch as it grows in EXPLOSIVE lockstep with its industry. Our expert team of equity analysts has identified one stock that's poised to produce rocket-ship returns with the next $14.4 TRILLION industry. Click here to get the full story in this eye-opening report.

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Five arrests in suspected boiler room fraud

City of London Police has warned boiler room scams are on the rise after a raid on a suspected boiler room operation led to five arrests.

It says the suspects are believed to have been targeting vulnerable consumers from a number of London offices, and are thought to have been selling overvalued commodities products.

The five men were arrested on suspicion of conspiracy to commit fraud by false representation and money laundering. They have been held for questioning.

Action Fraud, a consumer hotline run by the City of London Police and the National Fraud Intelligence Bureau, says it has evidence suggesting investors have lost tens of thousands from the suspected scam.

City of London Police detective chief inspector Dave Manley says: 'In recent months we are finding evidence of boiler rooms creeping back into the City. This could be partly a result of the success we have had in shutting down these types of operations overseas, and partly down to the fact that having a fancy office in the Square Mile makes it easier for the gangs to recruit.

'Whatever the reason, the City of London Police will not tolerate their existence and is committed to acting quickly to limit the harm they can cause to investors, especially the elderly and vulnerable, living across the UK.'

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George Osborne's pension reforms hit Aviva annuity sales

Aviva. Pic: PA.

Ben Woods, Business writer Thursday, May 15, 2014 1:08 PM

Aviva has branded its performance as 'calm and stable' despite a slump in annuity sales and marked decline in its UK life insurance business.

The insurer's value of new business (VNB) for annuities was 43pc lower at £40m during the first quarter, as the EDP Top100 company took a double hit from the government's announced shake-up of the pension system and a decision by the group to sell fewer high-margin products.

But group chief executive, Mark Wilson, was confident that targeting the bulk annuities market would offset the impact of the chancellor's budget announcement that retirees would no longer have to buy an annuity with their pension fund.

It came as strengthening demand overseas offset a sluggish UK performance, with total VNB up 13pc to £228m, as the UK slumped 22pc to £89m, while Asia surged ahead at 96pc and Europe continue to rise at 45pc.

Mr Wilson said a 'polar vortex' in Canada had dealt a £40m blow to the general insurance business which also paid out £60m in the UK as storms and floods took their toll during January and February.

'Aviva's overall performance in the first quarter was reassuringly calm and stable in marked contrast to the weather and regulatory developments,' he said.

'Aviva still faces challenges both in the external environment and in the business as we progress our turnaround,' he added. 'The regulatory environment is constantly changing and soft conditions persist in certain general insurance lines.

'As a business we remain focused on cash flow, expense efficiency and the clinical allocation of capital to areas where we can maximise returns. There is still much to do.'

Reporting its first quarter results, Aviva revealed an operating capital generation of £0.4bn as it continues to push forward with its expenses reduction programme.

Since March, the insurer has weilded the axe on a number of its overseas ventures - disposing of its Turkish general insurance business, the US asset management boutique River Road, and a South Korean joint venture, while also carrying out a significant restructure of its Italian business.

* Do you have a Top100 story for the Eastern Daily Press? Contact business writer Ben Woods on ben.woods@archant.co.uk or call 01603 772426

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Why Sales Reps Fail More Than 85% of the Time

There are two types of people who don't like cold calls: the one making the calls and those on the other end of the line. Let's face it; whether it's from a great referral or from a cold list, making cold prospecting calls is the worst step in the sales process. Creating a relationship out of thin air is hard, but it's nearly impossible over the phone. This is why the average rep fails almost 9 out of 10 times.

It's why most veterans hate to refill their pipeline and also why the burnout rate is so high for those just starting out. Many accept the fact that prospecting is something you have to push through, a time for paying your dues, like rainy days on vacation - it's an unavoidable part of life.from a great referral or from a cold list, making cold prospecting calls is the worst step in the sales process. Creating a relationship out of thin air is hard, but it's nearly impossible over the phone. This is why the average rep fails almost 9 out of 10 times.

Actually, there is a better way. But it's counter intuitive to nearly everything you've learned about selling and influence. And it's not about making more calls or beefing up your value proposition. It's about bolstering receptivity - NOT selling. Therefore, if you deploy the same tactics - communicate benefits, be passionate about your solution, proactively pursue the opportunity and overcome objections - you will be part of the 85% club. In fact, most everything you have learned in sales will work against you when making an uninvited call. This is why - no one taught you the Principle of Receptivity. The Principle of Receptivity

Every time we attempt to engage a decision-maker, the person is in one of two emotional states: emotionally closed (i.e., unreceptive) or emotionally open (i.e., receptive). Guess what percentage of decision-makers is emotionally closed/unreceptive? You got it! Eighty-five percent of them are emotionally closed, which therein lays the flaw in most sales strategies.

If we try to persuade someone who is emotionally closed/unreceptive with logical arguments, they will become even more unreceptive. Let that sink in...the more we try to sell or persuade the unreceptive prospects to engage, regardless of the power of our argument, the more unreceptive they become. In other words, only a small percentage of prospects start out receptive, and using typical sales tactics on unreceptive prospects actually reduces our chances of success.

To succeed where most fail and take the pain out of prospecting, the key is to change our objective from 'selling the meeting' to creating receptivity. The first step is debunking the top three misconceptions about cold-calling. As you read through the list, keep in mind that these can apply to a phone call, a face-to-face meeting, or an email. Regardless of the channel we use to initiate the relationship, the truth of the principle applies. Lie #1 - Keep Them on the Phone

Like the car salesman who knows that if you leave the lot you will never buy a car, once we FINALLY get a live person on the phone we're not letting them go. As soon as we see the door open a crack, we wedge our foot in and do everything we can to make sure they stay on the call. Then the more we try to MAKE them stay on the line, the more they want to leave. It's human nature. If we don't feel the freedom to choose, we will always resist - even if it's in our best interest to comply. This is why a significant majority are so unreceptive. They feel the pressure, the impending confrontation, and they bolt, making up any reason to get off the phone. Here's the truth: you should let them go.

I know that sounds like crazy talk, but it works. I call it Drop-the-Rope ^®, as in don't play tug-of-war but Drop-the-Rope ^®. Find a way at the beginning of the call to release the pressure. Tell the prospect that you're not sure your service is a fit or that you're unsure of their needs. Focus on the tone of your voice. Is it non-threatening but confident - like a surfer who went to Harvard? Or does it sound desperate, pushy, or overly aggressive?

Don't 'throw the rope' by asking this question at the beginning of the call, 'Is this a good time to talk?' At this stage, they will most likely say 'no.' The best approach is to be passionate and confident about what you offer, how it's helped other clients, and the desire to explore a potential relationship. But Drop-the-Rope ^® by never assuming or stating what THEY should do. If they feel the freedom to exit the conversation or determine if the solution is right for them, they are more willing to stay. If they feel trapped, forced to stay on the phone, they will create a reason to leave - regardless of the scandalously amazing thing you have to offer. Lie #2 - Communicate Benefits

People think in terms of problems rather than in terms of benefits. So when crafting your introduction, lead with what's on their whiteboard and not with what's in your brochure. In other words, connect the purpose of the call to something you know about their key objectives, initiatives, or challenges. They ALWAYS care about their whiteboard and, at this stage in the process, seldom care about your solution. Think about all the marketing emails you receive. How many are about you? How many do you read?

'But what if I don't know what they care about?' You protest. Then ask an inside 'coach' or guess. If you have to guess, think through the top three problems or challenges that similar customers face, in their language, and lead with this information. This approach is your best opportunity to create immediate interest, and it will also bolster their belief that you have the expertise to solve their problem. Lie #3 - Focus on Setting the Appointment

Most reps like to play the cat-and-mouse game - dangling some juicy morsel of obscure information ('We can save you thousands') in hopes of securing a face-to-face appointment, assuming there just isn't enough time or emotional connection to build the case over the phone. The logic makes sense. A face-to-face meeting is a much better environment to sell your services - for them and for you. The problem is the success rate is low. It's tantamount to saying to a blind date - 'I know you don't know anything about me, but I'm great. So let's meet for two hours and I promise you will like me. So do you want to go out on Tuesday or Thursday night?' It's probably not a great strategy for securing the first date. Plus, once they say no, how do you respond? You have zero information on what's important to the prospect.

Instead, try this:

Setup a mini discovery meeting over the phone. Focus your introduction on spending a few minutes over the phone to determine if (did you pick up the rope being dropped?) it makes sense to set up a face-to-face meeting. The success rate in securing a three-minute discovery meeting is far greater than that of landing an appointment that comes with emotional strings.

Once agreed upon, focus on a few high-level, open-ended questions that tee you up to position the benefits of a face-to-face meeting (e.g., business challenges) while avoiding a dead end (e.g., 'Are you interested in _?'). You will find that you're much more likely to secure a face-to-face meeting when you know a bit more about the prospect and you've had the opportunity to begin to build a foundation of trust and credibility.

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Take These: Six tax schemes Take That should have used

Tax avoidance schemes are a form of aggressive financial planning which will typically try to exploit legal loopholes and are never approved by Her Majesty's Revenue and Customs (HMRC). Use of such schemes will mark you out as a high-risk taxpayer with the HMRC and expose you to considerable scrutiny. The Government and HMRC are strongly committed to cracking down on tax evasion and avoidance.

This type of questionable tax planning needs to be clearly distinguished from several perfectly legitimate, government-backed schemes, which allow people to invest in a tax efficient way.

Many of these schemes are extremely popular, including ISAs and pensions, while others are less well known.

Bestinvest's managing director Jason Hollands takes a closer look at the options available, both for adults and for children.

* ISAs - One of the most popular tax allowances, ISA sales through funds alone reached £2.3bn for tax year 2013/14; over £1bn more than 2012/13 tax year according to figures from the Investment Management Association. With the allowance increasing to £15,000 on 1 July 2014 with New ISAs (NISAs), the popularity of the schemes looks set to continue.

While no tax relief is provided on the way in, returns on ISAs will accrue in a tax efficient environment and therefore they should be a cornerstone of a tax efficient savings strategy.

Up to 2 million more people are expected to have been drawn into the higher rate tax band by 2015/16 since the start of the Coalition, so it is vital to keep as much of your wealth as you legitimately can away from the hands of the taxman using these precious but flexible allowance.

* Pensions - Pensions have a very favourable tax treatment, offering up-front reliefs that ISAs don't have (but you are tying your money up until you are at least 55). Currently, these reliefs are de facto at your marginal income tax rate, making them particularly attractive for higher (40%) and additional (45%) tax payers.

Pension contributions are 'grossed up' by the government by 20%, so an £8,000 contribution turns into a £10,000 investment. However, those subject to the higher rates can effectively get a further rebate via their tax return as currently pension contributions reduce taxable earnings. In effect a 40% tax payer will get a further 20% benefit and a 45% taxpayer a further 25% benefit on top of the amount the government adds to their contribution. That means a higher rate taxpayer gets a £10k investment for a cost of £6k, and a 45% taxpayer a £10k investment for a cost of £5.5k - this is unrivalled for a main stream investment.

In the past, many people have been put off pensions as a result of poor fund choices, confusing charges and the lack of flexibility on retirement. Self-Invested Personal Pensions (SIPPs) have addressed this lack of choice as they enable savers to invest across a wide range of funds and have removed much of the complexity over charges, while the Chancellor heralded a pensions revolution in his recent Budget, which means no one will have to buy an annuity with their pension pot.

* VCTs - Venture Capital Trusts are specialist investments, targeted at more experienced investors. Investment in a VCT new share offer attracts a 30% income tax rebate, providing you have paid the level of tax being claimed and that you hold the VCT shares for at least five years. For someone in a position to invest the maximum annual allowance of £200k, that's up to £60k tax credit available. Of course, anyone doing this is likely to have substantial assets already in more mainstream investments. All returns from VCTs are tax free and these can provide attractive dividend income streams for higher rate taxpayers.* EIS - Companies eligible to receive Enterprise Investment Scheme (EIS) financing have the same characteristics of those which VCTs invest in; small, UK private companies but whereas VCTs are diversified funds, EIS investment is ploughed directly into these companies. Like a VCT, investment in an EIS carries a 30% income tax credit but you only need to hold the investment for three years, not five. So, the maximum potential relief is £300k on a £1m of investment each year.

While VCTs tend to generate attractive tax free dividends, EIS investments aim to generate a tax free capital gain. In the event the investment loses money, the investor can elect that the amount of the loss, minus the income tax relief received, is offset against their income tax liability.

EIS can be used as means to defer a capital gains tax liability for individuals who have made a gain on the sale of another asset. By reinvesting the amount of their gain into EIS companies, the tax liability is deferred and only recrystallizes once the EIS shares are sold.

If you have held EIS shares for at least two years and then die, they are eligible for 100% inheritance tax relief, so can be used in estate planning.

* Seed EIS - The Seed EIS scheme is relatively new and is aimed at incentivising investment into small start-ups by business angels. This is clearly aimed at sophisticated investors. Investors can receive 50% tax relief on their investment irrespective of their marginal rate. If they have made a capital gain, they can eliminate this by investing the gain into a Seed EIS and also get the 50% relief. With the top rate of CGT at 28%, for some investors this can add up to 78% tax relief. Of course, failure rates are high for start-ups, hence the huge reliefs on offer.

In addition, it is also worth flagging the tax allowances available for investors with children:

* Junior ISAs / CTFs - If you have children, you may be able to shelter a further amount for them in a Junior ISA (or child trust fund if they have one). As announced in the Budget, the Junior ISA allowance will increase to £4,000 from 1 July 2014. Junior ISAs provide a valuable means of building up a fund which can be used to support children through a future degree.

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