West Des Moines, Iowa – April 26, 2022
Annuity customers looking for consistent, positive performance potential can consider a new index offered through North American Company for Life and Health Insurance®, a member company of Sammons Financial Group®. The new financial index is designed by Morgan Stanley and can help today’s annuity customer manage the often shifting economic and market environment facing fixed index annuities. North American is one of the largest issuers of fixed index annuities in the U.S.
The Morgan Stanley Dynamic Global Index (Dynamic Global) is rooted in approaches to level out the highs and lows of the market. The Dynamic Global Index provides access to global, multi-asset diversification among several asset classes including equities, commodities, and fixed-income. It may also allocate to cash as part of managing to a 5-percent volatility target. Fixed index annuities are not directly invested in the equity market, the Index itself, or its components. However, when aligned with North American’s current products, products linked to the Index may help to provide the potential for more consistent returns.
“A top concern of today’s annuity owners is outliving their money. By applying this new index to the innovative insurance products North American offers, we can help alleviate some of the risk in potentially volatile economic conditions,” said Rob TeKolste, president, Sammons Independent Annuity Group. “We are always looking to improve performance by aligning with respected providers like Morgan Stanley.”
The new Dynamic Global Index will be available on a suite of North American products. Each fixed index annuity offers crediting methods with participation rate strategies at one- and two-year durations:
“This Index provides global multi-asset diversification and includes provisions intended to address the unique risks and return characteristics of each asset class as part of its rules-based dynamic allocation,” said Keshiv Desai, Managing Director of Morgan Stanley. The Dynamic Global Index will be available through North American on April 26, 2022. For more information, click here.
About North American Company for Life and Health Insurance
North American Company for Life and Health Insurance® is a member company of Sammons® Financial Group, Inc. Since 1886, North American has established a tradition of providing quality insurance products to consumers throughout the U.S. We offer a comprehensive portfolio of term, universal life, and indexed universal life insurance products. North American also offers a wide variety of traditional fixed and fixed index annuities and consistently ranks among the top fixed index annuity carriers in the U.S. (Source: Wink’s Sales & Market Report and LIMRA/Secure Retirement Institute). For more information, please visit here.
Insurance products issued by North American Company for Life and Health Insurance®, West Des Moines, Iowa. Product and features/options may not be available in all states or appropriate for all clients. See product materials for further details, specific features/options, and limitations by product and state. The NAC VersaChoiceSM 10 is issued on base contract form NA1012A/ICC17-NA1012A.MVA, the Performance Choice® 8 is issued on base contract form NA1007A/ICC16-NA1007A.MVA, and the PrimePath Pro issued on base contract form NA1008A/ICC16-NA1008A.MVA or appropriate state variation including all applicable endorsements and riders.
Fixed index annuities are not a direct investment in the stock market. They are long term insurance products with guarantees backed by the issuing company. They provide the potential for interest to be credited based in part on the performance of specific indices, without the risk of loss of premium due to market downturns or fluctuation. Although fixed index annuities guarantee no loss of premium due to market downturns, deductions from your accumulation value for additional optional benefit riders or strategy fees associated with allocations to enhanced crediting methods could exceed interest credited to the accumulation value, which would result in loss of premium. They may not be appropriate for all clients. Interest credits to a fixed index annuity will not mirror the actual performance of the relevant index.
Morgan Stanley Dynamic Global Index (the “Index”) is the property of Morgan Stanley & Co. LLC.
Any product that is linked to the performance of the Index is not sponsored, endorsed, sold or promoted by Morgan Stanley & Co. LLC, or any of its affiliates (collectively, “Morgan Stanley”). Neither Morgan Stanley nor any other party (including without limitation any calculation agents or data providers) makes any representation or warranty, express or implied, regarding the advisability of purchasing this product. In no event shall Morgan Stanley have any liability for any special, punitive, indirect or consequential damages including lost profits, even if notified of the possibility of such damages. The Index is the exclusive property of Morgan Stanley. Morgan Stanley and the Index are service marks of Morgan Stanley and have been licensed for use for certain purposes. Neither Morgan Stanley nor any other party has or will have any obligation or liability to owners of this product in connection with the administration or marketing of this product, and neither Morgan Stanley nor any other party guarantees the accuracy and/or the completeness of the Index or any data included therein.
No purchaser, seller or holder of this product, or any other person or entity, should use or refer to any Morgan Stanley trade name, trademark or service mark to sponsor, endorse, market or promote this product, without first contacting Morgan Stanley to determine whether Morgan Stanley’s permission is required. Under no circumstances may any person or entity claim any affiliation with Morgan Stanley without the prior written permission of Morgan Stanley.
In calculating the performance of the Index, Morgan Stanley deducts, on a daily basis, a servicing cost of 0.50% per annum. This reduces the positive change or increase the negative change in the Index level and thus decreases the return of any product linked to the Index. The volatility control calculation applied by Morgan Stanley as part of the Index’s methodology may decrease the Index’s performance and thus the return of any products linked to the Index. In addition, because the volatility control calculation is expected to reduce the overall volatility of the Index, it will also reduce the cost of hedging certain products linked to the Index.