Nationwide to Distribute MassMutual Indexed Annuities for RIAs
The new relationship shows how insurers are being creative about filling the product shelves.
Nationwide is going outside to expand its annuity menu.
The Columbus, Ohio-based, policyholder-owned insurer said it will court registered investment advisors by offering them fee-based, non-variable indexed annuities from Massachusetts Mutual Life’s MassMutual Ascend unit.
Rona Guymon, a senior vice president in the company’s Nationwide Annuity Distribution arm, said Nationwide likes its new annuity supplier’s operating performance and customer service.
The new relationship “demonstrates our commitment to offering a broader suite of solutions that enables advisors and financial professionals to provide more options,” Guymon said.
What It Means
Nationwide has been a major distributor of fee-based variable annuities.
The MassMutual relationship may show how the conflict between clients’ wants and insurers’ risk-management goals is pushing insurers to get creative about how they stock their annuity shelves.
The Products
Like Nationwide, MassMutual is a policyholder-owned mutual insurer, not a company owned by outside investors.
Nationwide plans to start by offering MassMutual indexed annuities with early withdrawal charges or market-value adjustments for early withdrawals that end after four years, five years or seven years.
Pictured: Rona Guymon. Photo: Nationwide