Hartford Financial Services Group Inc. is betting that enhancements to its variable annuity suite will put it ahead of competitors in the race to offer investors secure retirement income options.
The Simsbury, Conn., company has rolled out Personal Protection Portfolios, a set of strategies that use futures, options, structured finance investments, among others, to shield policyholders' principal from equity market shocks and bumps, Steve Kluever, Hartford's vice president of annuity product and marketing, said during a meeting on Friday.
Those portfolios support three new enhancements: Future5 and Future6, lifetime guaranteed minimum withdrawal benefits that provide income protection, and Safety Plus, a principal-protection tactic that's a little less usual.
"Investors do not necessarily want to pay for income for life, but they want the safety of principle," which Safety Plus would give them, said Ethan Young, the manager of annuity research at Commonwealth Financial Network. "This gives them some access to equity. It might give investors the fortitude to be in equities whereas they might otherwise be too risk averse."
