November 7, 2006, Wayne, PA — The Diversified Services Group, Inc. (DSG) announced the release of its 2006 Retirement Income Products Study, the 7th annual report in this series. The report includes the findings from two separate, but complementary, research efforts: a survey of 42 major variable annuity companies, and a series of in-depth interviews with selected executives who focus on the retirement income market opportunity.

According to Robert F. Vickery, a Principal in DSG’s Retirement Practice, “We’re seeing a groundswell of interest in guaranteed living benefit (GLB) options, as innovative product features are rapidly imitated. This trend won’t end any time soon. There is a robust pipeline of GLB product features being developed at numerous companies, with most of the activity revolving around variable annuities with guaranteed minimum withdrawal benefits (GMWBs). Specifically, there is a major focus on GMWBs with lifetime income options. Also, despite all this recent activity, which hurts the sale of immediate variable annuities (IVAs), we were quite surprised to find that five companies are presently developing new IVA products.

The Study examined retirement income market activity and results, in order to provide 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. For this year’s study, DSG significantly expanded the research to broaden the product coverage, with particular focus on products and solutions that are gaining ground in the retirement income market, such as guaranteed living benefits. This year’s study also includes a close look at the perceptions and successful programs of companies that are actively building their retirement income businesses.

Selected findings include:

• 74% of companies surveyed offer at least one product with guaranteed living benefit features, with GMWBs dominating this market.
• GMWBs account for about half of all living benefit product sales.
• Nearly all of the executives who were interviewed said that GLB riders caused a "dramatic increase" in their variable annuity sales.
• Within the next couple of years, nearly all GMWB riders will include the lifetime income option, as well as the joint and survivor feature for this option.
• On average, the 15 firms currently providing stand-alone IVAs have experienced another year of declining sales, yet five other companies have a new IVA product on the drawing boards.

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