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Nationwide Adds a Variable Indexed Annuity: Annuity Moves

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Nationwide has introduced an indexed annuity that’s filed the U.S. Securities and Exchange Commission as a variable product.

The Columbus, Ohio-based insurer says the new Nationwide Defined Protection Annuity (DPA) contract will give purchasers the ability to decide how much protection Nationwide provides against market losses.

(Related: Bankers Life Adds an Indexed Annuity: Annuity Moves)

When an insurer sells a non-variable indexed annuity, it must promise to protect the annuity holder against any loss of account value that occurs due to investment market ups and downs.

When an insurer structures an indexed annuity as a variable annuity contract, and registers the contract with the U.S. Securities and Exchange Commission, it can expose the annuity holder to the risk of loss of account value.

A consumer who buys the variable Nationwide DPA contract can decide whether the contract will protect account value against 90%, 95% or 100% of market-related losses.

The new Nationwide contract also offers consumers a menu of crediting rate options linked to a variety of investment indices, including the S&P 500 Index, the MSCI EAFE index, the NYSE Zebra Edge Index, and the J.P. Morgan Mozaic II Index, according to Nationwide.

Nationwide is writing the new annuity through Nationwide Life Insurance Company of Columbus. Nationwide Life is responsible for making good on the contract guarantees.

Annexus, an annuity design firm, helped Nationwide design the new annuity.

Nationwide says it expects to sell the new annuity through about 300 banks, wirehouses and independent broker-dealers.

Some broker-dealers will start to sell the annuity Aug. 31.

In other annuity product news, Ohio National Financial Services says it has added an Annual Point-to-Point S&P 500 (HIgher Cap) allocation option to its ONdex non-variable indexed annuity.

Ohio National introduced the ONdex annuity in May.

The new crediting rate option comes with access to five index-based allocation options and a fixed-rate option. The option will give users a chance to get a higher interest rate when the performance of the investment markets is very strong, Ohio National says.

— Read Symetra Adds Annuities With Built-In Guaranteeson ThinkAdvisor.

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