Annuities: Brighthouse rolls out new fixed index annuity suite

Brighthouse Financial has launched Brighthouse SecureKey, a suite of single premium deferred fixed indexed annuities (FIAs).

Brighthouse SecureKey is an option that can be added to a portfolio that features multiple benefits designed to help clients turn their retirement goals into reality - Myles Lambert, Brighthouse Financial

The new indexed accounts are linked to one or more indices across the S&P 500, Russell 2000, MSCI EAFE Index or S&P 500 Low Volatility Price Return Daily Risk Control 5% Index. There is also an optional fixed account that applies an annual guaranteed interest rate.

Additionally, the new FIAs offer ReadyPay, an optional guaranteed lifetime withdrawal benefit (GLWB) rider that can provide a stream of guaranteed lifetime income for one or two lives. The suite is available in five-, seven- and 10-year versions, as well as an advisory version, which adds to the existing Brighthouse SecureAdvantage Six-Year Fixed Index Annuity. 

‘With a balance between safety and the potential for market growth, Brighthouse SecureKey is an option that can be added to a portfolio that features multiple benefits designed to help clients turn their retirement goals into reality,’ said Myles Lambert (pictured), chief distribution and marketing officer at Brighthouse Financial.

The Nasdaq-listed insurer, which is one of the largest registered index linked annuity (Rila) providers in the US, sold US$58m FIA in Q3 23, a continued quarterly decline throughout the year, as SRP reported.

WealthVest, LPL Financial offer FIA on Fidelity indices

WealthVest, a financial services distribution firm, and Prosperity Life Group, an insurance, reinsurance, and asset management company, have expanded their strategic relationship with LPL Financial to make available WealthSecure Plus, a new FIA from Prosperity Life Group to LPL Financial’s 4.5 million clients.

The single premium index-linked annuity allows clients to allocate funds across six crediting strategies, including a new one – QuarterLock – linked to the Fidelity Stocks for Inflation Index 5% ER and Fidelity U.S. Quality Factor Index 5% ER, which are only offered on the WealthSecure products. The S&P 500 is also available. 

Available across two- and five-year indexed terms, Quarterlock aims to maximise clients' ability to earn interest by automatically locking in the highest quarterly anniversary index value during the term, which means that gains over the indexed term from mid-term index value decreases are protected.

The new FIAs are distributed exclusively by WealthVest’s wholesaling team to LPL Financial and is now available in 39 states through Prosperity Life Group’s underwriting company S.USA Life Insurance Company.

Manulife re-enters Canadian annuities market

Manulife Financial Corp has returned to the annuities space in its home market through independent advisors after its exit in 2018 because of challenges triggered by the low interest rates environment.

For a single lump-sum investment, the annuities issued by Manulife will provide a guaranteed income stream with payments continuing for either the life of one or two individuals, or for a specified period of time. Annuity payments are guaranteed and determined at the time of purchase. They are not affected by changing financial markets.

“There is a growing need for solutions that bring stability into financial planning, especially with more Canadians entering retirement amid an environment of continuing market volatility and increasing cost of living,” said Paul Savage (right), head of individual insurance, Canada at Manulife.

The annuities provided by the Toronto-based insurer are customisable with flexible guarantee periods and income payment options. Income can be tax-efficient with options like pension income splitting and access to the pension income tax credit.

“While we’re focused on our recent launch of single life, joint and survivor, and term-certain annuity options, we are constantly evaluating our product suite to ensure we have a diverse portfolio that meets the changing demands of our clients,” Savage told SRP.

DOL denies comment extension for annuity fiduciary proposal

The US Department of Labor (DoL) has refused to extend the deadline for the application of the new guidelines ‘Retirement Security Rule: Definition of an Investment Advice Fiduciary’, after a group of 18 industry associations came up with the request on 8 November, including the Insured Retirement Institute (IRI) and Securities Industry and Financial Markets Association (Sifma).

As a result, public comments are still due on 2 January 2024 following a public hearing, which is scheduled to take place on 12 December. The final rules will become effective 60 days after it is published.

The proposal aims to crack down on junk fees in retirement investment advice by targeting investment products that are not regulated by the Securities and Exchange Commission (SEC), such as FIAs, according to the White House.

Released on 3 November, the new rules have prompted a backlash from the annuity industry on the basis of ‘inconsistency’ and ‘redundancy’. 

Rilas continue upward trend

Iowa-based insurance data provider Wink has reported that Rilas accounted for US$11.4 billion, up 12.5% year-on-year or up six percent quarter-on-quarter, while variable deferred annuity sales of US$23.8 billion.

The company’s Q3 23 survey which polled 124 annuity providers found that variable annuities declined 7.8% and 3.4% on a yearly and quarterly basis, respectively.

Equitable Financial was the top one carrier for the overall sales, with a market share of 19.4%, followed by Jackson National Life. Equitable Financial’s Structured Capital Strategies Plus 21 Rila was the best-selling variable deferred annuity for all channels combined for the second consecutive quarter.

Equitable Financial owns a market share of 26.6% in the Rila space, according to Wink. Trailing behind are Allianz Life, Prudential, Brighthouse Financial and Lincoln National Life. 

‘Structured annuities sales set another record this quarter and will do so again for 2023,’ said Sheryl Moore (above right), CEO of Wink. “I am projecting that structured annuity sales will top variable annuity sales by next quarter.’