American Skandia Exits Qualified Plan Business

American Skandia announced a strategic initiative that focuses the company on its largest and most profitable variable annuity and mutual fund segments, while curtailing its variable life insurance and qualified plan divisions. "By focusing on these key industry segments, we'll be able to leverage our existing strengths by dedicating resources to core products and bolstering our relationships in the broker-dealer community," said Wade Dokken, American Skandia's president and chief executive officer.

After reviewing the scale required to succeed in qualified plans, the company determined it would take too long to achieve scale in these specialty product lines.

The company will not accept any new qualified plans after July, but will continue to service existing clients. As a result of these changes, about 40 employees, less than 3% of American Skandia's total workforce, will be affected. The company said it expects to place many of these employees in other positions.

Background

American Skandia is part of Skandia Insurance Company Ltd., a global financial services company with more than $88 billion in assets under management. Founded in 1855, Swedish-based Skandia currently operates in more than 26 countries.

Rick Meigs, Publisher, 401khelpcenter.com, LLC