Transamerica Announces New Collaboration With First Trust

Rhea-AI Summary

Transamerica has announced a new collaboration with FT Indexing Solutions, adding the First Trust Equity Edge Index™ (Nasdaq: FTEQUEDGE) to its Structured Index Advantage Annuity lineup. This exclusive index option provides exposure to U.S. equities with high quality and value, offering growth potential while limiting downside risk. Transamerica's annuity solution aims to address retirement challenges with a diverse range of indexes and protection buffers. The partnership with First Trust, a leading ETF provider with $200 billion in assets under management, is expected to accelerate growth by leveraging First Trust's network of 300 wholesalers and 87,000 financial advisors.

Positive

• Transamerica's Structured Index Advantage Annuity has surpassed $1 billion in sales in its first two years.
• The addition of the First Trust Equity Edge Index offers diversified growth potential with downside risk limits.
• First Trust has $200 billion in assets under management, providing significant market exposure.
• The partnership leverages a network of 300 wholesalers and 87,000 financial advisors, potentially accelerating growth.
• The First Trust Equity Edge Index combines high-quality U.S. equities with value-driven investment strategies.

Negative

• No concrete financial data or projections are provided to quantify the expected growth from this collaboration.
• The impact of the partnership on the overall performance of the annuity product remains speculative.

Insights

Financial Analyst

The collaboration between Transamerica and First Trust introduces a new dimension to the Transamerica Structured Index Advantage Annuity. The inclusion of the First Trust Equity Edge Index enhances the growth potential of this annuity product by providing exposure to high-quality U.S. equities. This aligns with Transamerica's strategy to balance growth and risk mitigation, a critical aspect in today's volatile market.

From a financial perspective, this partnership could potentially increase the appeal of Transamerica's annuity products in the marketplace, especially among risk-averse investors looking for structured investment solutions. The annuity has already surpassed $1 billion in sales within two years, indicating strong demand and positive market reception. The collaboration could further fuel this growth, leveraging First Trust's extensive network of financial advisors.

Potential benefits include increased sales and a broader customer base, while possible drawbacks could involve execution risks in effectively integrating the new index and ensuring it meets investor expectations. Investors should monitor how this collaboration unfolds, especially if it translates to higher market share for Transamerica.

Market Research Analyst

The addition of the First Trust Equity Edge Index to Transamerica's annuity lineup demonstrates a strategic move to cater to investor demand for diversified investment options with a degree of downside protection. The index's focus on high-quality and value-oriented U.S. equities is particularly relevant in an environment where investors are seeking stability.

Market trends indicate a growing preference for structured annuity products that offer a blend of growth and protection. Transamerica's partnership with First Trust, a reputable name in the ETF market with $200 billion in assets under management, leverages First Trust's distribution capabilities and extensive network of financial advisors.

This collaboration is likely to enhance Transamerica's competitive position and could attract investors who were previously hesitant about annuities due to perceived complexity or risk. However, the actual market impact will depend on effective marketing and the ability to clearly convey the benefits of the new index to potential investors.

Investment Strategist

The inclusion of the First Trust Equity Edge Index in Transamerica's annuity product is a noteworthy development. It combines two respected methodologies: the Value Line Dividend Index™ and the Nasdaq U.S. Rising Dividend Achievers™ Index, which focus on high-yielding stocks and companies with a history of increasing dividends, respectively. This dual approach provides a unique value proposition, offering investors a mix of growth and income potential.

For long-term investors, this innovation supports a balanced investment approach, catering to those looking for both capital appreciation and income generation. It also aligns with the growing trend of integrating diversified, risk-managed investment options into retirement planning solutions.

Key considerations for investors include understanding the specific mechanics of how the index is constructed and managed, as well as the costs associated with the annuity product. By addressing these factors, Transamerica and First Trust can better position their offering to meet the needs of a broad investor base.

First Trust Equity Edge Index added to Transamerica Structured Index Advantage Annuity's index lineup

BALTIMORE, May 20, 2024 /PRNewswire/ -- Today Transamerica announced a new collaboration with FT Indexing Solutions LLC ("First Trust") that adds the First Trust Equity Edge Index™ to the popular and innovative Transamerica Structured Index Advantage® Annuity.

The new equity index option, Equity First Trust Edge (Nasdaq: FTEQUEDGE), is exclusively available through Transamerica's registered index-linked annuity. The index provides additional exposure to U.S. equities that exhibit high quality and value, consistent with a balanced investment approach.

"We are excited to work with an experienced manager like First Trust to offer customers and distribution partners access to an index that helps address key retirement challenges facing Americans today," said Liza Tyler, Transamerica's head of annuity solutions. "First Trust Equity Edge provides investors with access to growth potential with limits to downside risk, which is consistent with Transamerica's mission to help people make the most of what's important to them."

Adding the index enhances Transamerica Structured Index Advantage Annuity's ability to help investors seeking growth through a diverse range of indexes as well as protection buffers to limit downside market risk. The annuity is a cost-effective solution that reinforces Transamerica's commitment to helping everyday Americans who are saving to live their best lives in retirement.

Transamerica's Structured Index Advantage Annuity already has been extremely popular with customers, surpassing $1 billion in sales in its first two years.

"We believe that partnering with First Trust will accelerate our growth momentum with its talented distribution force," said Jonathan Cressman, vice president and managing director for annuities wholesale distribution for Transamerica.

First Trust is a leading exchange traded funds provider with access to a large network of financial advisors. With $200 billion in assets under management, First Trust will provide exposure to 300 wholesalers and 87,000 financial advisors who can partner directly with Transamerica wholesalers in distributing the custom index.

The First Trust Equity Edge Index stands out for its unique blend of U.S. equities that demonstrate high quality and value. This innovative approach, which combines two equally weighted methodologies, is sourced from the Value Line Dividend Index™, a benchmark of the highest-yielding stocks in the Value Line universe, and the Nasdaq U.S. Rising Dividend Achievers™ Index, which tracks companies with a history of increasing dividends. This ensures that clients have access to a mix of investments to navigate various market conditions.

About Transamerica
With a history that dates back more than 100 years, Transamerica is a leading provider of life insurance, retirement, and investment solutions, serving millions of customers throughout the United States. Transamerica's dedicated professionals focus on helping people live their best lives through saving, investing, and protecting their loved ones. Transamerica is dedicated to building America's leading middle market life insurance and retirement company, with unique access to the large and growing middle market consumer via World Financial Group and US retirement recordkeeping. Transamerica provides a broad range of quality individual life insurance policies, workplace supplemental insurance benefits, workplace retirement plans, individual retirement accounts, and investment products including mutual funds, annuities, stable value solutions, as well as investment management services.
 
In 2023, Transamerica fulfilled its promises to customers, paying more than $47 billion in insurance, retirement, and annuity claims and benefits, including return of annuity premiums paid by the customer. Transamerica's head office is in Baltimore, Maryland, with other major operations in Cedar Rapids, Iowa, and Denver, Colorado. Transamerica is part of the Aegon group of companies. Each Aegon company is solely responsible for its own financial conditions and contractual obligations. Based in the Netherlands, Aegon is an international financial services holding company.

For more information, visit www.transamerica.com.

Annuities issued in all states except New York by Transamerica Life Insurance Company, Cedar Rapids, Iowa. Annuities are underwritten and distributed by Transamerica Capital, Inc., 1801 California St., Suite 5200, Denver, CO 80202, FINRA member. References to Transamerica may pertain to one or all of these companies.

Registered Index-Linked Annuities are long-term, tax-deferred vehicles designed for retirement purposes and are not for everyone. They are subject to possible loss of principal and earnings due to market fluctuation, investment risks as a result of fees and charges under the policy including surrender charges, other transaction charges, and periodic charges.

A current prospectus for this product should either precede or accompany this material. Before investing, consider the investment objectives, risks, charges and expenses carefully before investing. Go to transamerica.com for prospectuses containing this and other information. Please read carefully.

Withdrawals of taxable amounts are subject to ordinary income tax and may be subject to a 10% additional federal tax if withdrawn before age 59½.

You cannot directly invest in an index and the annuity does not participate directly in any stock or equity investments. Stock dividends on the index are not included as a component of the Index Value.

All guarantees, including optional benefits, are based on the claims-paying ability of the issuing insurance company.

The policy may be referred to as a variable annuity, or modified guaranteed annuity in some states. Not available in Missouri, New York or Oregon. All policies, riders, and forms may vary by state and may not be available in all states. TPVA1400-0720, TRIA1000-R0821 TPVA14FL-0720 (SC), TPVA14OR-0720 (SC), TRIA10OR-R0821

The First Trust Equity Edge Index (FTIS Index) is a product of FT Indexing Solutions LLC (FTIS) and is administered and calculated by Bloomberg Index Service Limited and its affiliates (collectively, BISL). FIRST TRUST® and FIRST TRUST EQUITY EDGE INDEX™ are trademarks of First Trust Portfolios L.P. (collectively, with FTIS and its respective affiliates, First Trust). The foregoing index and trademarks have been licensed for use for certain purposes by Bloomberg, Transamerica Life Insurance Company (TLIC), Money Services, Inc., and Transamerica Capital, Inc., (Transamerica) in connection with the FTIS Index and the Transamerica Structured Index Advantage Annuity. The Nasdaq U.S. Rising Dividend Achievers™ INDEX (Nasdaq Index) is a product of Nasdaq, Inc., (which, with its affiliates, is referred to as the Nasdaq). NASDAQ® and NASDAQ U.S. RISING DIVIDEND ACHIEVERS™ are trademarks of Nasdaq. The foregoing index and trademarks have been licensed for use for certain purposes by FTIS and Transamerica in connection with the FTIS Index and Transamerica Structured Index Advantage Annuity.

The Value Line Dividend Index (Value Line Index) is a product of Value Line, Inc., (Value Line). VALUE LINE® and VALUE LINE DIVIDEND INDEX™ are trademarks of Value Line. The foregoing index and trademarks have been licensed for use for certain purposes by FTIS and Transamerica in connection with the FTIS Index and Transamerica Structured Index Advantage Annuity. The FTIS Index is not sponsored, endorsed, recommended, sold, or promoted by Value Line and Value Line makes no representation regarding the advisability of investing in the FTIS Index.

BLOOMBERG^® is a trademark and service mark of Bloomberg Finance L.P. Bloomberg Finance L.P., BISL, and their affiliates (Bloomberg) are not affiliated with First Trust. Bloomberg's relationship to First Trust is only (1) in the licensing of the FIRST TRUST® and FIRST TRUST EQUITY EDGE INDEX™ trademarks and (2) to act as the administrator and calculation agent of the FTIS Index. Bloomberg does not guarantee the timeliness, accurateness, or completeness of the FTIS Index or any data or information relating thereto and shall have no liability in connection with the FTIS Index or any data or information relating thereto. Transamerica Structured Index Advantage Annuity is not issued, sponsored, endorsed, sold, recommended, or promoted by First Trust, Bloomberg, Nasdaq, Value Line, or their respective affiliates (collectively, the Companies). The Companies do not make any representation regarding the advisability of investing in Transamerica Structured Index Advantage Annuity or products based on the FTIS Index, Nasdaq Index, or Value Line Index, do not make any warranties or bear any liability with respect to such products, and do not make any warranties or bear any liability with respect to Transamerica Structured Index Advantage® Annuity or another party's index.

Media inquiries:

Email: Media.Relations@transamerica.com

Hank Williams
(319) 355-7789

Erin Yang
(303) 383-5295

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SOURCE Transamerica

FAQ

What is the First Trust Equity Edge Index (FTEQUEDGE)?

The First Trust Equity Edge Index (FTEQUEDGE) is an equity index providing exposure to high-quality U.S. equities with strong value characteristics.

How does the collaboration between Transamerica and First Trust benefit investors?

The collaboration offers investors additional growth potential through a diverse range of indexes and protection buffers to limit downside risk.

What are the unique features of the First Trust Equity Edge Index?

The First Trust Equity Edge Index combines U.S. equities with high quality and value, sourced from the Value Line Dividend Index™ and the Nasdaq U.S. Rising Dividend Achievers™ Index.

How large is First Trust's network?

First Trust's network includes 300 wholesalers and 87,000 financial advisors.

What is the market exposure of First Trust?

First Trust manages $200 billion in assets, providing significant market exposure.

What is the sales performance of Transamerica's Structured Index Advantage Annuity?

Transamerica's Structured Index Advantage Annuity has surpassed $1 billion in sales within its first two years.