Products September 28, 2015

Index Crediting Strategy for Voya’s Annuities Suite

Voya Financial announces a new index crediting strategy for its suite of fixed index annuity products.
Reported by

Voya Financial, a provider of retirement products and services to institutional clients, has announced a new index crediting strategy to diversify its suite of fixed index annuity product lines.

The approach, the Voya Point-to-Point Volatility Control Strategy, features Deutsche Bank’s proprietary CROCI (cash return on capital invested) US 5% Volatility Control Index. This provides a dynamic investment option that aims to reduce volatility by allocating between select U.S. stocks and cash.

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More than nine in 10 (91%) working Americans think it’s important to have investment options that offer exposure to the equity markets when planning their retirement portfolio, according to findings from the Voya Retire Ready Index.

Voya says that, 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.

Besides 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 market downturns. 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.  


Deals and People September 28, 2015

Private Equity Firms to Acquire Ascensus Inc.

Genstar Capital and Aquiline Capital Partners have agreed to acquire Ascensus Inc. from J.C. Flowers & Co.

Reported by

Genstar Capital, a San Francisco-based middle-market private equity firm—which, among other companies, is an owner of Asset International, Inc.—and Aquiline Capital Partners, a New York-based private equity firm investing in financial services, have entered into a definitive agreement to acquire Ascensus, Inc. from J.C. Flowers & Co. The transaction is expected to close in the fourth quarter, following regulatory approvals and other customary closing conditions.

“From the perspective of plan sponsors, financial advisers and consultants, it will be business as usual for us at Ascensus,” says Roberta Hess, vice president of marketing and communications for Ascensus. “Since the company has been owned by a private equity firm, and will be acquired by another private equity firm, it will not impact our day-to-day business. We’re excited about how Genstar Capital and Aquiline Capital Partners will be able to help us further focus on servicing our clients’ needs.”

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Ascensus is an independent service provider of retirement and college savings plans, offering a suite of defined contribution (DC) and defined benefit (DB) retirement solutions, including benefits education, 529 college plan recordkeeping and administration for more than 17 states, as well as individual retirement account (IRA) and health savings account (HSA) administration.

Ascensus  President and CEO Bob Guillocheau says, “Genstar and Aquiline’s commitment to Ascensus will strengthen our capabilities and services, allowing us to maintain our long-term focuses on serving our clients’ needs and remaining a top workplace for our associates.”

Ascensus Inc. manages retirement assets of $57 billion and $69 billion in college saving plans.

 

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