"Having watched the market movements of the past decade, investors near or in retirement are naturally wary as they turn their attention from saving to the task of funding a steady income that they will not outlive. That is part and parcel of the variable annuity business and the central appeal of the products you offer, and this should be a great time to be in the business. However, the volatility that has characterized the recent economic environment has strained many firms' ability to offer the products that investors are seeking for this purpose. Despite sales of variable annuities having increased approximately 12% in 2011 over 2010, some of the large established firms in the variable annuity space have either left the business or curtailed offerings. The dynamic climate of changing economics and changing participants in the business makes this a time that calls for care in the design of variable products and attention to investor protection."

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