MFC

during the last bear market in ’07-’09, i had an absolute field-day shorting the life insurance companies who’s variable annuities i used to sell as a broker.  for yrs, these companies have been selling both living and death benefits that are tied to the performance of the stock market.  unfortunately for them, just like the masses, the naive actuaries for these insurance companies never bothered to factor in that the stock market wasn’t an automatic 12%+ per year savings acct that only went up over time…never did they factor in that it could go nowhere over a decade (as it has done) or never, ever that it could possible go lower for more than just a few months.

anywho, as their weekly charts will show you, reality set in during the last bear market and their stock prices clearly reflected their inevitable path to zero but of course, Mr. Gov’t came in and infused them with massive amounts of direct and indirect financial support just before they were forced into insolvency as these big insurers are nearly as critical to the financial system as the banks. of course, like their partners in crime (the big banks), they were only given a temporary stay of execution.  here are the names of the insurers that i know of with exposure to variable annuity risk: MFC, HIG, ING, and MET.  probably more that are publically traded but can’t recall them now.  MFC is one that i’ve had a starter short on for a while now and nibbled at a little more today.  will add on a solid candlestick close below that lower line and throw away the key (with appropriate stops above, of course).