Even as several major carriers have either left the variable annuity (VA) business or limited their exposure to the product, one company has a new variable annuity on tap.
Sammons Retirement Solutions, based in West Des Moines, Iowa, expects to release its new VA with the next 30 to 60 days, according to company president Bill Lowe. The product will be offered through broker-dealers and their advisors.
Instead of emphasizing the product's guaranteed benefits, Sammons intends to market its new VA as a tax-deferral tool and one that it says offers buyers a more robust investment menu.
"Players are exiting the variable annuity business because of the unattractive nature of the guaranteed benefits for the insurance company," Lowe said. "We also see that the companies are getting away from focusing on their investment lineup and tax deferral [benefits]. Instead, they are focusing almost exclusively on the guaranteed benefit space. We believe there is a large market that is going to get even larger for those folks that are looking for quality investment options in a tax-deferred vehicle."
Lowe said there will be some 80 investment options that will include tactical funds and emerging markets. Such investment choices are difficult to hedge, he noted, which sets them apart from other VA providers.
