Insurance and Annuity Industry Developments: A Comprehensive Update

Nationwide Gains Distribution will put its own name on insurance and retirement products for use by the independent financial advisors of Waddell & Reed Financial. Meanwhile, Jackson National has introduced an Indexed Fixed Option in its Perspective and Defined Strategies variable annuities, linking returns to the S&P 500 index. Additionally, Hancock has introduced GPA Care, a single-premium fixed deferred annuity with long-term-care benefits that can be used for long-term care expenses without requiring underwriting. Furthermore, Fidelity has added a new portfolio to its Fidelity Variable Insurance Product Funds, and Protective has expanded its fund options in variable annuities.

Key Takeaways:

• Nationwide Gains Distribution will offer its own-branded insurance and retirement products through Waddell & Reed Financial's advisors, covering three variable annuities, a flexible premium variable universal life product, a survivorship life product, and a qualified group retirement plan.
• Jackson National's Perspective and Defined Strategies variable annuities now offer an Indexed Fixed Option, linking returns to the S&P 500 index, allowing clients to allocate a portion of their premium to the option for nine years.
• Hancock's GPA Care is a single-premium fixed deferred annuity with long-term-care benefits that can be used for long-term care expenses without requiring underwriting, offering a benefit based on the greater of the initial premium or account value.
• Fidelity has added the Fidelity VIP Dynamic Capital Appreciation Portfolio to its Fidelity Variable Insurance Product Funds, which seeks capital appreciation by investing primarily in common stocks, managed by Fergus Shiel.
• Protective has added two new funds, the Goldman Sachs Internet Tollkeeper Fund and the Van Kampen Life Investment Trust Aggressive Growth Fund, to its variable annuity product line, offering a total of 32 funds managed by six investment managers.

Statistics:

• As of Jul 31, Fidelity's Fidelity Variable Insurance Product Funds have a total of $58.5 billion in assets under management.
• Protective's variable annuities now offer a choice of 32 funds, up from an unspecified number before the addition of the Goldman Sachs and Van Kampen funds.
• Hancock's benefit costs 45 basis points annually and varies with the clients' age at the time of issue.
• The Indexed Fixed Option in Jackson National's Perspective and Defined Strategies variable annuities has a return rate linked to the S&P 500 index.

Sources:

• Nationwide Financial, "Nationwide Financial to introduce its own branded insurance and retirement products through Waddell & Reed Financial's advisors" [referred from local news]
• Jackson National Life Insurance Company, "New Indexed Fixed Option Introduced in Perspective and Defined Strategies Variable Annuities" [referred from Jackson National Life Insurance Company]
• Hancock, "Hancock Introduces GPA Care, a Single-Premium Fixed Deferred Annuity with Long-Term-Care Benefits" [referred from Hancock]
• Fidelity Investments, "Fidelity Investments Adds Fidelity VIP Dynamic Capital Appreciation Portfolio to Fidelity Variable Insurance Product Funds" [referred from Fidelity Investments]
• Protective Life Insurance Company, "Protective Expands Fund Options in Variable Annuities" [referred from Protective Life Insurance Company]