American Life Puts S&P 500 ESG Index on the Menus: Annuity Moves

[view original post]

What You Need to Know

  • American Life is the company that announced the risk-sharing deal with an American Enterprise Group subsidiary last summer.
  • Great American, which is now part of MassMutual, has introduced a fee-based fixed annuity.
  • Security Benefit has added two relatively new managers to the menus of two variable annuity products.

American Life & Security Corp. is working to get attention in the annuity market by courting socially conscious investors.

The Lincoln, Nebraska-based Midwest Holding subsidiary has added the S&P 500 ESG index to the menus for its American Select fixed indexed annuity products.

Managers of the S&P indexes introduced the index, which includes S&P 500 companies that meet the managers’ environmental, social and governance standards, in 2019.

The American Life annuities are the first nonvariable indexed annuities that offer the S&P 500 ESG Index on the investment index menu, according to American Life.

Midwest Holding is trying to turn American Life into a much bigger player. It announced a deal in July 2021 to share up to $100 million of the risk associated with writing multi-year guaranteed annuities and fixed income annuities with American Republic. American Republic is part of American Enterprise Group.

Great American and Security Benefit are two other companies with annuity product news.

Great American

Great American Life Insurance — a Cincinnati-based insurer that is now a subsidiary of Massachusetts Mutual Life Insurance — has introduced a fee-based fixed annuity aimed at RIAs.

The new Advantage 5 Advisory contract will guarantee returns for five years.