Nationwide Gets Closer to Fidelity — and Invesco

Nationwide is joining with Fidelity Investments to launch a variable annuity and expand variable annuity distribution.

The Columbus, Ohio-based insurer also announced that it’s working with another asset manager, Invesco, to add investment options to the menu of flat-fee, investment-only variable annuity contracts.

What It Means

Life insurers are finding a way to move forward despite the turmoil in some other parts of the financial services world.

The Fidelity Relationship

Nationwide is introducing the new Nationwide Personal Income Annuity contract and distributing it through Fidelity’s Fidelity Insurance Network, which has relationships with about 3,400 financial professionals.

The new annuity includes the Nationwide Retirement Income rider.

The rider can provide a lifetime withdrawal rate percentage ranging from 5.25% to 7.65% for customers who tie the withdrawal rate to the lifespan of one individual.

The actual withdrawal rate will depend on the contract owner’s age when the withdrawals start.

The rider will increase the base amount used to calculate the payout amount by 5% every year until lifetime withdrawals start if lifetime withdrawals start within 10 years. If the owner waits more than 10 years to take lifetime withdrawals, the annual increases will end after 10 years.

The Invesco Relationship

Nationwide is adding two series of buffered funds from Invesco to its Monument Advisor flat-fee, investment-only variable annuity contract.

The series added are the Invesco V.I. S&P 500 Buffer Funds series and the Invesco V.I. NASDAQ Buffer Funds series.

The funds can protect annuity holders against up to 10% of investment market declines.

Nationwide writes the Monument Advisor annuities through its Jefferson National Life Insurance Company subsidiary in most states and through Jefferson National Life Insurance Company of New York in New York state.

(Image: Shutterstock)