New custom underlyings launched, FIA post double-digit growth

The new risk control proprietary indices add to a growing range of underlyings seen in the US indexed annuities market which continues to break sales records.

FIA Plus offers crediting options linked to the HSBC AI Global Tactical Index

Ibexis Life & Annuity Insurance Company has introduced a new proprietary index developed by Bank of America (BofA) via a new fixed indexed annuity (FIA).

The Ibexis FIA Plus fixed indexed annuity which will be available via an independent marketing organisation (IMO) sales channel.

The BofA U.S. Strength Fast Convergence

Index applies Bank of America’s patent-pending Fast Convergence (FC) Technology to the Nasdaq-100 TR Index with the goal of reducing risk and improving performance.

By monitoring market moves and rebalancing throughout the trading day, FC technology aims to control the realised volatility of the index more efficiently, with the goal of added consumer value.

The index also includes a 4% monthly cap rebalanced daily with the goal of higher participation rates in index-linked products and a 12.5% volatility target to mitigate losses by allocating to noninterest bearing cash. When realised volatility decreases below the target, the index applies up to 175.0% leverage with the goal of capturing returns.

The FIA Plus also offers crediting options linked to the HSBC AI Global Tactical Index (HSBC AIGT), as well as the S&P500 and a fixed account. The new annuity is an accumulation focused FIA but also offers additional floor options that provide higher accumulation potential.

Ryan Lex (pictured), chief distribution officer at Ibexis, said: ‘With the FIA Plus, a client has the ability to control their level of risk. Clients have the flexibility to annually allocate their money into a traditional 0% floor strategy for a competitive participation rate or expose prior gains to more risk in exchange for increased upside potential.’