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Athene Adds Non-Variable Indexed Contract: Annuity Moves

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What You Need to Know

  • Athene will AccuMax guarantee fixed and indexed crediting rates during a withdrawal charge period.
  • AIG is making a new protected lifetime income benefit available solely through IMOs.
  • Transamerica's new optional rider can plug into a variable annuity.

Athene USA has introduced the Athene AccuMax non-variable indexed annuity contract.

Like other indexed annuities, the AccuMax contract can connect a holder’s crediting rate, or rate at which interest is credited to the annuity contract value, to the performance of an investment index.

The AccuMax contract offers holders access to crediting rate choices linked to two new investment indexes: the AI Powered Multi-Asset Index, from EquBot Inc., and the Shiller Barclays CAPE Allocator 6 Index, from RSBB-I LLC.

The crediting rate choice linked to the EquBot index comes with an annual servicing cost equal to 0.75% of the contract value.

A purchaser of the new annuity can choose between a crediting rate term that will last for just one year or for a term that will last for multiple years.

“All fixed and indexed strategy crediting rates are guaranteed for the duration of the withdrawal charge period,” according to Athene USA.

Athene USA is a West Des Moines, Iowa-based subsidiary of Athene Holding Ltd., and it’s also the parent of Athene Annuity and Life Company. Athene USA is issuing the new AccuMax annuity through Athene Annuity and Life

In other annuity product news:

AIG Life & Retirement, a division of American International Group Inc., has introduced the Lifetime Income Choice benefit for The Power Series of Index Annuities.

An annuity owner can use the benefit to create guaranteed lifetime income, and to choose between maximizing income early in retirement or having income hold steady throughout retirement, according to AIG.

AIG is offering the new benefit only through independent marketing organizations, or IMOs.

The underlying annuities are issued by AIG’s American General Life Insurance Company unit.

Transamerica has started selling the Transamerica Principal Optimizer variable annuity rider.

The optional rider can provide a variable annuity holder with the ability to put 70% of premiums in any investment choice available within the annuity, along with some or total protection against loss of contract value.

Transamerica will put 30% of the annuity holder’s premiums in a stable value fund, which will offer a guaranteed interest rate, Transamerica says.

A rider purchaser can choose between a seven-year or 10-year waiting period.

If an investor chooses and completes the seven-year waiting period, the investor is guaranteed to get 90% of the initial premium back, according to Transamerica.

Investors who choose the 10-year waiting period “are guaranteed to receive 100% of their initial premium back if they elect and complete the 10-year waiting period,” Transamerica says.

Transamerica issues annuities through Transamerica Life Insurance Company of Cedar Rapids, Iowa, in most states and through Transamerica Financial Life Insurance Company of Harrison, New York, in New York state.

Security Benefit has added index accounts based on the S&P 500 Factor Rotator Daily RC2 7% Index and the S&P Multi-Asset Risk Control 5% Index to the crediting rate choices available with its Strategic Growth Annuity contracts.

The Security Benefit team in charge of the S&P 500 Factor Rotator Index will aim to use the past risk-adjusted returns of the S&P 500 Excess Return Index, the S&P GSCI Gold Excess Return Index and the S&P 10-Year U.S. Treasury Note Futures Excess Return Index to rebalance the assets.

Managers of the S&P MARC 5% index will aim to hold the index volatility level to 5%, the company says.

(Image: Bram Janssens/Thinkstock)

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