Nationwide is joining with Fidelity Investments to launch a variable annuity and expand variable annuity distribution.
The Columbus, Ohio-based insurer also announced that it's working with another asset manager, Invesco, to add investment options to the menu of flat-fee, investment-only variable annuity contracts.
What It Means
Life insurers are finding a way to move forward despite the turmoil in some other parts of the financial services world.
The Fidelity Relationship
Nationwide is introducing the new Nationwide Personal Income Annuity contract and distributing it through Fidelity's Fidelity Insurance Network, which has relationships with about 3,400 financial professionals.
The new annuity includes the Nationwide Retirement Income rider.
The rider can provide a lifetime withdrawal rate percentage ranging from 5.25% to 7.65% for customers who tie the withdrawal rate to the lifespan of one individual.
The actual withdrawal rate will depend on the contract owner's age when the withdrawals start.
