Updates from Allianz Life, Athene and Investors Heritage

New caps on AllianzIM Buffered Outcome ETFs; Investors Heritage Life offers climate-friendly index on new FIA;  AccuMax is launched by Athene.

New caps on AllianzIM Buffered Outcome ETFs

Allianz Investment Management LLC announced new upside caps for the April series of its Buffered Outcome ETFs suite: the AllianzIM US Large Cap Buffer10 Apr ETF and the AllianzIM US Large Cap Buffer20 Apr ETF.

Introduced in June 2020, the AllianzIM Buffered Outcome ETFs offer exposure to the S&P 500 Price Return Index up to a stated cap, while aiming to buffer investors from losses on the downside. AllianzIM currently offers two strategies on the S&P 500 Index: a 10% buffer and 20% buffer, each with quarterly offerings and 12-month outcome periods.

“The funds are the lowest cost defined outcome ETFs on the market today and consistently trade with some of the tightest spreads among peers in the category,” an Allianz Life release said.. AllianzIM manages its ETF line-up on a proprietary in-house hedging platform with over $150 billion in hedged assets.

Investors Heritage Life offers climate-friendly index on new FIA

Investors Heritage Life Insurance Company has launched Heritage Income Advantage, a single-premium fixed indexed annuity. The product offers a Guaranteed Lifetime Withdrawal Benefit (GLWB) Rider, which guarantees income for life, and an Enhanced Income Benefit Rider, which can double income for up to 60 months when certain unexpected health situations occur.

“The Enhanced Income Benefit can be used for five years non-consecutively. A client and spouse can use it for hospital or home-healthcare costs,” said John F. Frye, president of Investors Heritage. HIA allows policyholders to realize upside potential based on three index options: the S&P 500, the S&P MARC 5% (Multi-Asset Risk Control) Index, and SG Entelligent Agile 6% VT Index

Société Générale partnered with Entelligent to launch the SG Entelligent Agile 6% VT Index. The index uses Entelligent’s Smart Climate model to score companies in the S&P 500 based on the potential impact from new environmental-focused regulation and technology as well as forecasted energy costs. The index provides exposure to the 250 companies in the S&P 500 with the highest scores. 

AccuMax is launched by Athene

Athene Annuity and Life Company, a unit of Athene USA, has launched AccuMax, a fixed indexed annuity (FIA) that the company describes as designed for “patient money set aside for retirement or other long-term savings goals.” 

AccuMax makes available multi-year indexed interest crediting strategies, multi-asset indexes, and crediting rates that are guaranteed for the annuity’s withdrawal (surrender) charge period. All fixed and indexed strategy crediting rates are guaranteed for the duration of the Withdrawal Charge period. Additional product features include:

  • Multi-year and annual crediting terms provide growth potential and liquidity.
  • Features new AI Powered Multi-Asset Index (AiMAX1) and Shiller Barclays CAPE Allocator 6 Index (BXIISC6E1).
  • Innovative Annual Interval Sum crediting strategy tied to the S&P 500® combines the benefit of higher rates through a multi-year strategy with the ability to measure index performance in annual steps.
Prudential adds Invesco and BlackRock ETFs to its FlexGuard RILA

Prudential Financial, Inc., has added the Invesco QQQ ETF, which tracks the Nasdaq-100 Index, and the BlackRock iShares Russell 2000 ETF as options within the crediting strategies of Prudential’s FlexGuard indexed variable annuity.

FlexGuard has achieved close to $2 billion in sales within less than a year of launching, according to annuity sales data from the Secure Retirement Institute. Indexed variable annuities are also RILAs (registered index-linked annuities). Sales of RILAs, introduced in 2011 by AXA Equitable, grew more than 30% in calendar 2020.

“FlexGuard’s index strategies allow customers to select strategies providing the potential to accelerate gains above and beyond the index return when certain targets are met. Importantly, FlexGuard is designed to adapt with consumers’ needs, allowing periodic changes to investment length, protection level and growth strategies, as the markets shift, and individual financial goals evolve,” a Prudential release said.

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