Voya Financial Offers New Index Crediting Strategy to Diversify its Suite of Fixed Index Annuity Product Solutions
WINDSOR, Conn., Sept. 28, 2015 /PRNewswire/ -- Voya Financial, Inc. (NYSE: VOYA) announced today that it is offering customers a new index crediting strategy within the company's Voya Secure Index series and Retirement Index Select fixed index annuity product lines. The Voya Point-to-Point Volatility Control Strategy features Deutsche Bank's proprietary CROCI (Cash Return on Capital Invested) US 5% Volatility Control Index, which provides a dynamic investment option that aims to reduce volatility by allocating between select U.S. stocks and cash. Customers benefit from low spread rates with growth potential, while also receiving a level of protection from downturns in the market.
"Given the historically low interest rate environment and low cap rates on many fixed index annuities, investors are seeing the value of volatility control strategies — which provide the potential for growth tied to the performance of the equity market, while reducing the risk of market swings," said Carolyn Johnson, president of Annuities and Tax-Exempt Markets for Retirement at Voya Financial. "The Voya Point-to-Point Volatility Control Strategy offers customers this opportunity, and it supports our efforts to help Americans plan, invest and protect their savings to retire better."
According to findings from the Voya Retire Ready Index1, more than nine-in-ten (91%) working Americans think it's important to have investment options that offer exposure to the equity markets when planning their retirement portfolio. Industry sales data also back this growing trend in the annuity space, as more than $10 billion was allocated to volatility control strategies in 2014 and over a quarter (26%) of fixed indexed annuity premiums in the first quarter of 2015 leveraged volatility control strategies2.
The distinguishing feature of the Voya Point-to-Point Volatility Control Strategy is its use of Deutsche Bank's CROCI valuation methodology. Using this valuation methodology, 40 of the most undervalued stocks selected from approximately the top half (measured by market capitalization) of the S&P 500 Index are identified and grouped together in a propriety index, which is sponsored by Deutsche Bank. This index may provide individuals who select the Voya Point-to-Point Volatility Control Strategy with the opportunity to grow their retirement savings.
In addition to offering an alternative to other popular benchmark strategies that are capped, the Voya Point-to-Point Volatility Control Strategy provides upside potential minus a spread rate. A lower spread rate helps customers maximize their investment, while their principal remains protected even with downturns in the market. Customers can lock in potential index credit gains on an annual basis to their fixed index annuity contract — giving them the benefits of compounding interest.
"This new crediting strategy is another clear example of how Voya is focused on delivering value to our customers," said Johnson. "We are committed to understanding their needs and developing innovative solutions that can help them navigate market conditions and prepare for their future financial security."
The Voya Point-to-Point Volatility Control Strategy is available within the company's Voya Secure Index series and the Retirement Index Select fixed index annuity, which are issued by Voya Insurance and Annuity Company and ReliaStar Life Insurance Company, respectively. As an industry leader and advocate for greater retirement readiness, Voya Financial is committed to delivering on its vision to be America's Retirement Company™ and its mission to make a secure financial future possible — one person, one family, one institution at a time.
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About Voya Financial®
Voya Financial, Inc. (NYSE: VOYA), helps Americans plan, invest and protect their savings — to get ready to retire better. Serving the financial needs of approximately 13 million individual and institutional customers in the United States, Voya is a Fortune 500 company that had $11 billion in revenue in 2014. The company had $484 billion in total assets under management and administration as of June 30, 2015. With a clear mission to make a secure financial future possible — one person, one family, one institution at a time — Voya's vision is to be America's Retirement Company™. The company is equally committed to conducting business in a way that is socially, environmentally, economically and ethically responsible — Voya has been recognized as one of the World's Most Ethical Companies, by the Ethisphere Institute, and as one of the Top Green Companies in the U.S., by Newsweek magazine. For more information, visit voya.com or view the company's 2014 annual report. Follow Voya Financial on Facebook and Twitter @Voya.
1. The Voya Retire Ready Index™ study (published March 30, 2015) measures the retirement readiness levels of Americans who are working and recently retired. The results are based on findings from two online consumer surveys completed between July 14 and July 25, 2014 with Greenwald & Associates, Inc., a full-service market research firm. Additional findings from the Voya Retire Ready Index™ study are available at http://go.voya.com/IndexReport.
2. Wink's Sales & Market Report for the first calendar quarter of 2015 (survey conducted in April and May 2015). The report surveys fixed annuity providers and indexed life insurance companies, who provide a breakdown of sales by product, surrender period, distribution channel, as well as other various criteria.
This Product (the "Product") is not sponsored, endorsed, managed, sold or promoted by Deutsche Bank AG ("DB") or any subsidiary or affiliate of DB. The Deutsche Bank indices are the exclusive property of DB. "Deutsche Bank" and "CROCI" are proprietary marks of DB and its affiliates that have been licensed for certain uses and purposes to Voya Insurance and Annuity Company ("VIAC") and ReliaStar Life Insurance Company ("RLIC"). Neither DB, CROCI, nor any affiliate of DB, nor any other party involved in, or related to, making or compiling the indices: (1) is acting in a fiduciary or product management capacity or providing any endorsement of the Product or investment advice of any kind; (2) has any obligation to take the needs of VIAC, the sponsor of the Product, or its clients into consideration in determining, composing or calculating the indices; (3) is responsible for or has participated in the determination of the timing of, prices at, quantities or valuation of the Product; (4) warrants or guarantees the accuracy and/or the completeness of the indices or any data included therein and shall have no liability for any errors, omissions, or interruptions therein or the administration, marketing or trading of the product. Obligations to make payments under the Product are solely the obligation of VIAC or RLIC, as applicable, and are not the responsibility of DB. The selection of one or more of the indices as a crediting option under the Product does not obligate VIAC, RLIC or DB to invest annuity payments in the components of any of the indices.
The CROCI indices have been built on the premise that the CROCI Economic P/E is an effective indicator of inherent value. This premise may not be correct, and prospective investors must form their own view of the CROCI methodology and evaluate whether CROCI is appropriate for them. While volatility controls may result in less fluctuation in rates of return as compared to indices without volatility controls, they may also reduce the overall rate of return as compared to products not subject to volatility controls. Please see the Product Summary and Annuity Illustration for more information about the indices and the Product. Additional information (including index descriptions) about the indices is available upon request.
SOURCE Voya Financial, Inc.