F&G Annuities & Life Launches Its First Registered Index-Linked Annuity, F&G Confidence Builder

Rhea-AI Summary

F&G Annuities & Life, Inc. (FG) introduces F&G Confidence Builder, a Registered Index-Linked Annuity (RILA) to address retirement challenges. The product aims to balance risk management and long-term growth potential in a volatile market. The RILA category has seen significant growth, with F&G's Confidence Builder enhancing its retail product suite. The strategy, Hindsight 20/20, powered by BofA Securities, tracks three indexes to offer the best performance for clients. F&G aims to provide personalized investment strategies and flexibility to adapt to market conditions.

Positive

• F&G Annuities & Life, Inc. introduces F&G Confidence Builder, a Registered Index-Linked Annuity (RILA) to address retirement challenges.
• The product aims to balance risk management and long-term growth potential in a volatile market.
• The RILA category has seen significant growth, with F&G's Confidence Builder enhancing its retail product suite.
• The strategy, Hindsight 20/20, powered by BofA Securities, tracks three indexes to offer the best performance for clients.
• F&G aims to provide personalized investment strategies and flexibility to adapt to market conditions.

Negative

• None.

Insights

Financial Analyst

The introduction of F&G Annuities & Life's Registered Index-Linked Annuity (RILA), particularly the Confidence Builder product, reflects a strategic response to evolving market demands for investment products that balance growth potential with risk management. The product's design, which incorporates customizable crediting periods, a range of downside protection options and a variety of index choices, is indicative of a broader industry trend towards personalization in financial products.

Given the reported rapid growth in the RILA market, the launch may have a positive effect on the company's market share within the annuity space. This is especially relevant considering F&G's high customer satisfaction ranking. Increased sales of RILAs could potentially lead to a rise in the company's revenue streams and, by extension, could influence its stock performance positively. However, the long-term success of this product will depend on its competitive performance relative to other RILAs and the broader financial market conditions.

Market Research Analyst

The RILA category's growth is a reflection of the current economic environment where investors seek to mitigate risks associated with market volatility and inflation. F&G's Risk Tolerance Tracker suggests a substantial portion of the market is open to moderate risk if it means higher return potential. This sentiment aligns with the core value proposition of the Confidence Builder product.

However, the introduction of the Hindsight 20/20 strategy, with its 'best-of performance' approach, is particularly noteworthy. It offers a unique selling point that could differentiate F&G from competitors. The collaboration with BofA Securities and the development of tailored indices could enhance the product's appeal and credibility. The ability to adapt to different market conditions and risk tolerances may attract a wider client base, potentially increasing F&G's market penetration.

Economist

The timing of the release of F&G's RILA product, Confidence Builder, is strategic given the current economic climate characterized by volatility and inflation concerns. These market conditions have increased the attractiveness of investment products that can provide a hedge against inflation and reduce exposure to market downturns. The innovative aspect of the Hindsight 20/20 strategy allows for post-period performance selection, which could be seen as a form of optionality that typically has value in financial markets.

While this could be beneficial to consumers, it's important to consider the cost implications of such features, as they may affect the overall return of the annuity. The performance of these indices and the associated costs will be critical in determining the actual value delivered to clients and the long-term viability of the product in a competitive market.

New Interest Crediting Strategy, Hindsight 20/20^SM, Customizes Approach for Clients with its "Best of Performance" Approach

DES MOINES, Iowa, Feb. 13, 2024 /PRNewswire/ -- F&G Annuities & Life, Inc. (NYSE: FG) ("F&G" or "Company"), a leading provider of insurance solutions serving retail annuity and life customers and institutional clients, has launched its first Registered Index-Linked Annuity (RILA), F&G Confidence Builder^SM. 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 2023¹ as advisors and consumers continue to find RILAs an attractive solution in the current market. Confidence Builder enhances F&G's expanding retail product suite, backed by the Company's number one ranking from J.D. Power in customer satisfaction among annuity providers.²

While limited risk exposure is important to American investors,³ 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.

Introducing Hindsight 20/20^SM
The innovative 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. 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.⁴  

"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."

"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."

¹LIMRA Annuity Market Forecast
²For J.D. Power 2023 award information, visit jdpower.com/awards
³Learn more about the risk tolerance tracker survey here. To qualify for the survey, respondents had to be age 30+, have sole or shared financial decision-making responsibility for their household, and own financial products valued at $10,000 or more.
⁴The best-performing index may have negative performance, under-perform the general market, and/or be subject to a buffer. Buffers offer protection from initial losses up to a certain pre-determined threshold, then you're responsible for any additional losses. Hindsight 20/20 strategy is only available on 6-year segments.

For more complete information about F&G registered index-linked annuities, call your financial professional or F&G at 888.513.8797 for a prospectus. The prospectus contains details on investment objectives, risks, fees, and expenses, as well as other information about the registered index-linked annuity, which you should carefully consider.

Guarantees are based on the claims paying ability of the issuing insurer, Fidelity & Guaranty Life Insurance Company, Des Moines, IA. F&G Securities, LLC. "FGSL" is a broker-dealer and affiliate of F&G and is a member of FINRA and distributes this product.

The provisions, riders and optional additional features of this product have limitations and restrictions, may have additional charges, and are subject to change. Contracts are subject to state availability, and certain restrictions may apply. See the prospectus for details.

About F&G 

F&G is committed to helping Americans turn their aspirations into reality. F&G is a leading provider of insurance solutions serving retail annuity and life customers and institutional clients and is headquartered in Des Moines, Iowa. For more information, please visit https://www.fglife.com/.

"F&G" is the marketing name for Fidelity & Guaranty Life Insurance Company issuing insurance in the United States outside of New York. Life insurance and annuities issued by Fidelity & Guaranty Life Insurance Company, Des Moines, IA.

About Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,800 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 57 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).

For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.

Disclaimer

BofA Securities Inc. and its Affiliates ("BofAS" or "Licensor"), BofA MP Indices (the "Indices" and each, an "Index") and related information, the name "BofAS", and related trademarks, are intellectual property of BofAS, licensed from BofAS to Fidelity & Guaranty Life Insurance Company ("Licensee"). Neither the Licensee nor any annuity product ("Product") referencing the Indices is sponsored, operated, endorsed, sold or promoted by BofAS. Obligations to make payments under any Product are solely the obligation of Licensee pursuant to the term of the contract between Licensee and you, and are not the responsibility of BofAS. BofAS, the Indices and related information, the name of Licensor, and related trademarks may not be copied, used, or distributed without BofAS's prior written approval. The Products have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by BofAS. BofAS's only relationship to Licensee is the licensing of certain trademarks and trade names and the Indices or components thereof and certain hedging arrangements between BofAS and the Licensee or its Affiliates and BofAS is not a party to any transaction contemplated herein. BOFAS MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE INDICES, ANY RELATED INFORMATION, THE TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, THEIR QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS).

Forward-Looking Statements and Risk Factors
This press release contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. Some of the forward-looking statements can be identified by the use of terms such as "believes", "expects", "may", "will", "could", "seeks", "intends", "plans", "estimates", "anticipates" or other comparable terms. Statements that are not historical facts, including statements regarding our expectations, hopes, intentions or strategies regarding the future are forward-looking statements. Forward-looking statements are based on management's beliefs, as well as assumptions made by, and information currently available to, management. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. The risks and uncertainties which forward-looking statements are subject to include, but are not limited to: general economic conditions and other factors, including prevailing interest and unemployment rate levels and stock and credit market performance; natural disasters, public health crises, international tensions and conflicts, geopolitical events, terrorist acts, labor strikes, political crisis, accidents and other events; concentration in certain states for distribution of our products; the impact of interest rate fluctuations; equity market volatility or disruption; the impact of credit risk of our counterparties; changes in our assumptions and estimates regarding amortization of our deferred acquisition costs, deferred sales inducements and value of business acquired balances; regulatory changes or actions, including those relating to regulation of financial services affecting (among other things) underwriting of insurance products and regulation of the sale, underwriting and pricing of products and minimum capitalization and statutory reserve requirements for insurance companies, or the ability of our insurance subsidiaries to make cash distributions to us; and other factors discussed in "Risk Factors" and other sections of F&G's Form 10-K and other filings with the Securities and Exchange Commission (SEC).

Contact:
Lisa Foxworthy-Parker
SVP of Investor & External Relations
Investor.relations@fglife.com
515.330.3307

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SOURCE F&G Annuities & Life, Inc.

FAQ

What is the new product introduced by F&G Annuities & Life, Inc.?

F&G Annuities & Life, Inc. has launched its first Registered Index-Linked Annuity (RILA) called F&G Confidence Builder.

What is the purpose of F&G Confidence Builder?

F&G Confidence Builder aims to address retirement challenges by balancing risk management and long-term growth potential in a volatile market.

Who ranks number one in customer satisfaction among annuity providers according to the PR?

F&G Annuities & Life, Inc. holds the number one ranking from J.D. Power in customer satisfaction among annuity providers.

What is the innovative strategy introduced by F&G?

F&G introduced the Hindsight 20/20 strategy, powered by BofA Securities, which tracks three distinct indexes to offer the best performance for clients.

What are the benefits of Hindsight 20/20 for clients?

Hindsight 20/20 allows clients to benefit from the best performing index among the three designated indexes, providing personalized investment strategies.