Voya Financial has expanded its suite of fixed index annuity products by introducing the new Voya Journey Index Annuity, a new structured retirement product providing investors with a 'two stage' interest-crediting approach that offers upside potential, while providing protection from market declines.

The Voya Journey Index Annuity also features multiple crediting strategies to match their long-term financial goals via dynamic indices from JP Morgan and Citigroup - JP Morgan Meridian Index and Citi Dynamic Asset Selector 5 Excess Return Index. This is the first time these two indices have been used in a structured product, according to SRP data.

The Citi Dynamic Asset Selector 5 Excess Return Index follows a rules-based, hypothetical investment methodology which dynamically allocates between the S&P 500 Futures Excess Return Index and the S&P 10Y U.S. Treasury Note Futures Excess Return Index each of which is a futures based index; while the JP Morgan Meridian Index is an index of securities values.

"Americans are looking for new ways to grow and protect their retirement savings in today's uncertain world," said Carolyn Johnson (pictured), CEO of annuities and individual life at Voya Financial, in a statement.

The Voya Journey Index Annuity is a single-premium deferred fixed index annuity that offers individuals full participation in the growth, if any, of one or more dynamic indices over a seven-year period. Investors have the option to select from the two underlying indices 'which seek to adjust to market conditions to offer steady growth potential'.

One of the distinguishing features of the new Voya structured annuity is its 'two stage' approach to growing retirement savings. In the first stage, the account value can earn an annual 'performance' credit when the selected index stays above its strike level during the first six years. However, it's the second stage where product holders can potentially earn more interest credit as at maturity investors will get 100% participation on the gains of the selected index over the seven-year period.

According to Johnson, the benefit of this strategy is that capital is protected and that investors can benefit from tax-deferred growth, which is an inherent feature of any fixed index annuity.

"In today's low interest rate environment, the Voya Journey Index Annuity is a good alternative to taxable bank certificates or the volatility of bond mutual funds," said Johnson. "Individuals have the opportunity to potentially earn better returns and still have protection from market volatility."

Johnson also pointed that there is a growing market for this kind of structured annuity as suggested by data compiled by retirement and insurance trade bodies. According to sales data from the Life Insurance and Market Research Association (Limra), in the first nine months of 2016, fixed index annuity sales increased 22% compared to the previous year which suggests a shift towards products that can offer solutions to accumulate retirement savings and help provide a dependable stream of income at retirement. However, complaints from different quarters around suitability, and misrepresentation of risks associated with fixed index, variable and buffer annuities, remain and have garnered the attention of regulators.

There are 84 structured annuities listed on SRP's US database. The most used indices are the S&P 500 (which is featured on 82 of the annuities listed) and the Nasdaq 100 (which features on 16 annuities) but there are also instances of proprietary indices from investment banks such as the Barclays Aggregate Bond Index (11) and the ML All Convertibles Investment Grade (two) also appear on a number of products. The most popular payoff in this segment is the cliquet as every product has usually averaging between indices, and capped calls.

According to SRP data, the top five providers of structured annuities in the US are American Equity (nine), Allianz, Aviva, Jefferson Pilot Financial, and Midland National with seven apiece, and ING (six).

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