Des Moines, Iowa-based provider of insurance solutions serving retail annuity and life customers and institutional clients F&G Annuities & Life, Inc., launched its first Registered Index-Linked Annuity (RILA) on Feb. 13, F&G Confidence Builder.
The company’s newest product addresses retirement challenges from volatility to inflation, seeking to find a balance between managing risk and long-term growth potential.
The RILA category has experienced rapid growth over the last few years, with total industry RILA sales forecasted to be at a record level between $44 to $48 billion in 2023 as advisors and consumers continue to find RILAs an attractive solution in the current market.
While limited risk exposure is important to American investors, they are still open to some level of risk according to F&G’s recent Risk Tolerance Tracker. Four out of five (77%) respondents reported that some level of risk in exchange for higher return potential is important to them when considering retirement products, indicating a strong appetite for offerings such as RILAs.
“As investors deal with ongoing market volatility and inflation, F&G has designed Confidence Builder to do just that, helping clients build confidence in their retirement strategy with comprehensive options to personalize the product,” said John Currier, President, Retail Markets at F&G. “F&G’s new RILA is positioned to be a solution that maximizes growth potential, limits downside risk and offers flexibility to adapt to changing market conditions.”
Confidence Builder personalizes investment strategies through customizable crediting periods, diverse crediting methods, tailored level of downside protection depending on individual preference and a broad range of index options.
Hindsight 20/20 strategy
The Hindsight 20/20 strategy is powered by BofA Securities and tracks three distinct indexes, each designed to perform in different market conditions: BofA MP Balanced Index, BofA MP Growth Index and BofA MP Defensive Index.
“The BofA MP Indices are inspired by model portfolio strategies and include equity exposure ranging from 40% to 75% to meet different risk tolerance levels as well as varying allocations to four familiar, commonly used assets,” said William Holligan, Managing Director and Head of Structured Equity Derivatives Sales at BofA Securities. “We are pleased to collaborate with F&G, which builds on our commitment to continue providing innovative solutions to clients.”
At the end of the crediting period, regardless of market fluctuations, Hindsight 20/20 applies the “best-of performance” among these three indexes, allowing customers to benefit from the best performing of these indices. “Imagine being able to capture the best performance from three different indexes, even after the fact. That’s precisely what F&G Confidence Builder’s Hindsight 20/20 offers for clients,” said Tom Olson, SVP, Financial Institutions Distribution for F&G. “With Hindsight 20/20, advisors can focus less on the need to predict market movements while instead focusing on a personalized investment strategy.”
