American Equity Rolls out Accumulation Product Enhancements
American Equity Investment Life Insurance Company, a leading underwriter of fixed index annuities, announced a series of enhancements to its flagship accumulation product, the AssetShield fixed index annuity. This 5, 7, and 10-year annuity product line now offers new equity and multi-asset index options, as well as the choice to purchase a higher rate on crediting strategies for added growth potential. The new benefits are the latest addition to American Equity’s suite of annuities aimed at helping provide clients safe asset growth choices and the dignity of securing a guaranteed paycheck.
“We are excited to continue working with leading global financial institutions to further round out our fixed index annuity portfolio,” said American Equity Chief Executive Officer Anant Bhalla. “These enhancements give clients new growth options and new control of how their money works for them.”
New Index Options
In addition to the product’s original two S&P 500 Index options, there are three new indices available for all of the AssetShield index-linked crediting strategies.
“Each index was chosen for specific qualities, helping provide diverse allocation strategy options as different markets react to different market conditions,” said American Equity President Ron Grensteiner.
BofA Destinations Index (Ticker: BOFADST5): Developed in collaboration with Bank of America and exclusive to American Equity, the volatility-controlled index tracks domestic equities, treasuries and a gold index.
“The BofA Destinations Index is a rules-based strategy, and combines three assets using two time-tested investment principles – balanced risk and momentum,” noted Will Holligan, head of Americas Insurance Solutions for Bank of America. “By balancing risk and then seeking returns, this index aims to provide stable returns in many market environments.”
Credit Suisse Tech Edge Index (Ticker: CSEATEDG): The excess return index combines four U.S tech and biotech ETFs and two fixed income components. It utilizes a cutting-edge volatility control mechanism, powered by Salt Financial, to identify changing market conditions using a combination of intraday and end-of-day data.
Mike Ebert, head of equity derivatives at Credit Suisse, commented, “We are very pleased to have worked in collaboration with Salt Financial and American Equity to launch the Credit Suisse Tech Edge Index, a differentiated and unique index solution powered by the innovative truVol engine. With a twofold focus on technology, both in its design and in its equity thematic, this innovative index aims at providing investors with an opportunity for consistent performance across various market cycles.”