December 14, 2005, Wayne, PA — The Diversified Services Group, Inc. (DSG) announced the release of the 6th Annual Study of Retirement Income Products, Issues and Market Trends. The report includes the findings from two separate, but complementary, research efforts: a survey of 43 major variable annuity companies, and a series of in-depth interviews with selected executives focused on the retirement income market opportunity.

According to James R. Sholder, a DSG Principal and leader of this research study, "For the second year, we’ve seen that the strong advance of guaranteed living benefit (GLB) options has overshadowed IVAs as a retirement income solution of choice. This trend won’t end any time soon. Most executives we interviewed expressed growing enthusiasm for GLBs, and there is a robust pipeline of GLB product on the drawing boards at numerous companies. Specifically, there is a focus on variable annuities with guaranteed minimum withdrawal benefits (GMWBs). Given boomer needs as they approach the retirement inflexion point, this competitive response makes perfect sense."

The study examined variable payout annuity industry activity and results, and also delved into the broader "retirement income management market" strategies. It provides a timely view of industry results, competitive behavior, product features, changing perceptions about suitability requirements, and a good sense of current efforts to address the retirement income market opportunity.

Selected findings include:

• 63% of companies surveyed offer at least one product with guaranteed living benefit (GLB) features, while only 49% offer a variable payout annuity product.
• Nearly all of the executives who were interviewed said that GLB riders caused a "dramatic increase" in their variable annuity sales during the latest year.
• As of mid-2005, there are 17 firms that can provide stand-alone immediate variable annuity (IVA) products, although at least 3 of these firms currently view themselves as "inactive" in this market.
• The average IVA product sale amounted to approximately $106,000 per contract.

This retirement income products study is part of the RM2 Report Series,™ on the ‘Retirement Management Market’ These reports focus on issues that firms face as they develop services, products and marketing initiatives to reach individuals and compete at and after the Retirement Inflexion Point™.

DSG is a multi-disciplined firm that provides consulting, research, information and sales executive development to the financial services industry. The Retirement Practice provides counsel on the Retirement Income Distribution and Assets Management Market.

For further information, go to www.dsg-network.com or contact:

Wm. Borden Ayers, Principal

Ph: 610-989-1710, ext. 21
Fax: 610-989-1730
e-mail: bordena@dsg-network.com

Diversified Services Group, Inc.
303 West Lancaster Avenue, Ste 2E
Wayne, PA 19087-3938

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