Athene USA (Athene) has launched Athene Amplify, a registered index-linked annuity (RILA) with design features that set it apart in a fast-growing product category.
Athene Amplify is issued by Athene Annuity and Life Company (AAIA), a subsidiary of Athene.
The new Athene Amplify annuity complements the overall Athene suite of retirement solutions, and was designed to meet the needs of customers looking to round out their portfolios with an annuity that offers greater asset accumulation potential with a level of protection from market risk that other investment products may not provide.
“Athene Amplify, our first registered index-linked annuity, is designed to become a preferred accumulation solution for investors seeking more participation in market gains while managing their downside risks,” said Grant Kvalheim, CEO and President of Athene USA. “Amplify is a versatile vehicle for asset accumulation that allows consumers to remaster investing on their own terms. It’s a natural addition to our Athene family of fixed and fixed indexed annuity solutions and reflects our commitment to satisfy evolving consumer needs as they plan for retirement.”
RILAs, also called registered index-linked variable annuities, buffered annuities or structured annuities, are often described as a cross between fixed indexed annuities and variable annuities.
Like fixed indexed annuities, a RILA provides the opportunity for growth based on the performance of a stock market index, but is not a stock market investment and does not directly participate in any stock or equity investments. RILAs differ from fixed indexed annuities in that investors are eligible for a higher cap on the upside potential but do assume responsibility for a portion of any index decline. RILAs are quickly gaining in popularity, with sales up 20% in 2018 and up six-fold since 2014, according to LIMRA.
Athene Amplify differentiates itself in the RILA space by the variety of options it gives investors seeking to accumulate assets and manage risk in volatile markets:
Offers both Buffer (protection down to a specified percentage of index decline) and Floor (protection below a specified percentage) Segment Options.
Provides increased flexibility with 1, 2 and 6-year Segment Term Periods and a choice of three available indices1. Positive Segment Credits are subject to a Cap Rate and Participation Rate declared by Athene at the beginning of each Segment Term Period.
Amplify also gives investors an opportunity to diversify their risk and growth potential with a unique Performance Blend Segment Option, in which the index change used to determine Segment Credits is based on a weighted average return of all three indices at the end of a 6-year Segment Term Period.
Source: Company Press Release