RetireReady(SM) IRA Annuity Product Offers Familiarity and Flexibility for Pre-retirees, Other ConsumersRICHMOND, Va., June 30, 2008 /PRNewswire-FirstCall via COMTEX News Network/ -- Genworth Life and Annuity
Insurance Company and Genworth Life Insurance Company of New York,
subsidiaries of Genworth Financial, Inc. (NYSE: GNW), have launched a new
RetireReady(SM) IRA Annuity product. The IRA Annuity is a new retirement
product that successfully combines the traditional benefits of an IRA with the
ability to provide a guaranteed income stream that only an annuity can
provide. This contract can only be issued as, and must be maintained as, an
IRA, Roth IRA or SEP IRA contract or within such qualified accounts.
The new product is insurance with underlying portfolios that include
well-known retail mutual funds. Retail mutual funds have until now only been
available within a very small number of variable annuities, and with limited
distribution. The IRA Annuity is targeted for all major financial advisor
channels of distribution. Financial advisors have confidence in knowing the
portfolio management stories behind certain mutual funds, so the retail mutual
fund feature should be well received.
Our RetireReady IRA Annuity product is another example of our innovation
in the retirement and planning space, said Christopher J. Grady, President of
Genworth's Retirement Income division. While conventional IRAs are a smart
way to build savings over time, they don't offer the protection of insurance
products or pension-like guaranteed levels of income as retirement approaches;
only annuities can provide guaranteed lifetime income. The RetireReady IRA
Annuity fills a critical consumer demand that assures income will last a
lifetime with the potential for growth over time.
Confidence is a primary theme in the retirement planning arena. The 2008
Retirement Confidence Survey from the Employee Benefits Research Institute
(EBRI) reported the largest one-year drop in consumer confidence levels in the
18-year history of the survey. The percentage of workers very confident about
having enough money for a comfortable retirement decreased sharply, from 27
percent in 2007 to 18 percent in 2008. Retiree confidence in having a
financially secure retirement also decreased, from 41 percent to 29 percent, a
drop of 12 percentage points. Decreases in confidence occurred across all age
groups and income levels.
Simplicity: Insurance with Differentiated Investments
The IRA Annuity's primary feature of interest to advisors is an investment
subaccount structure utilizing a diverse selection of retail mutual funds. The
retail mutual funds take the place of more traditional variable insurance
trusts, which unlike retail mutual funds are available only within insurance
company products. In addition to this investment structure, a lifetime income
guarantee can be added through an optional lifetime withdrawal benefit rider.
All guarantees are based on the claims-paying ability of the issuing insurance
company and depend on all contract requirements being satisfied. Guarantees do
not apply to the performance of the underlying investment portfolios. The
underlying portfolios will fluctuate and could lose value.
The variable annuity marketplace has become increasingly complex and
confusing, Grady said. Our IRA Annuity mitigates some of that complexity and
offers pre-retirees the best of both worlds -- ways to protect their IRAs with
insurance while tapping into the long-term upside potential of the equity
markets as they age. The IRA Annuity can help meet their needs with funds they
The IRA Annuity includes 57 funds from 26 well-known fund managers,
including Calamos, Thornburg, Franklin Templeton, Columbia, T. Rowe Price and
many others. Many of these retail funds have institutional counterparts
available within other insurance products, but several funds have limited or
no availability within an annuity product anywhere else. Those funds include
Calamos Growth, Eaton Vance Large Cap Value, Fidelity Advisor Leveraged
Company Stock, Fidelity Advisor New Insights, Columbia Mid-Cap Value, Columbia
Acorn, Thornburg Core Growth and Thornburg International Value.
Other benefits include:
-- Advisor Confidence: Since financial advisors have confidence in knowing
the portfolio management stories behind certain mutual funds, this product
allows them to continue using those funds with the continued tax deferral of
an IRA, but now with the added death benefit features of a variable annuity,
and the option of a guaranteed lifetime withdrawal benefit rider designed to
protect clients' future income.
-- Optional Lifetime Withdrawal Benefit: Clients can receive guaranteed
income to last a lifetime through Genworth's popular optional living benefit
rider called Lifetime Income Plus 2008. Lifetime Income Plus 2008, a
guaranteed minimum withdrawal benefit, is among industry leaders in the high
level of guaranteed withdrawal factors.
-- Two Surrender Options: At the time of application, consumers have the
option of choosing a seven-year surrender charge schedule with a combined
annual mortality and expense charge and administrative expense of 1.35%, or a
four-year surrender charge schedule for 1.65%, plus portfolio management fees.
Financial advisors and consumers interested in getting additional
information about the RetireReady IRA Annuity can visit
The Genworth family of companies has a growing line of products that bring
guaranteed lifetime income benefits to traditional investment options. In
2005, Genworth Life & Annuity launched ClearCourse(SM), a retirement income
benefit option available in a 401(k). Most recently, Genworth Life & Annuity
premiered LifeHarbor(SM), an annuity with a guaranteed income benefit
available for managed money accounts and currently offered through AssetMark
Investment Services, Inc., a Genworth Financial company.
Variable annuities are sold by prospectuses for the product and underlying
investment portfolios. The prospectuses contain information on the investment
objectives, risk factors, fees and charges, as well as other important
information about the product and investment companies, that should be
carefully considered. Please read the prospectuses carefully before investing.
You can obtain prospectuses by calling 888-GENWORTH (888.436.9678).
RetireReady(SM) IRA Annuity is one of Genworth Life and Annuity Insurance
Company's flexible premium variable deferred annuities, policy form contract
P1165 4/05. Optional death benefit rider P5222 1/03. Optional living benefit
rider P5362 9/07 and P5362DB 9/07.
RetireReady(SM) IRA Annuity NY is Genworth Life Insurance Company of New
York's flexible premium variable deferred annuity, policy form contract
NY1166C 1/08 and NY1166D 1/08. Optional death benefit rider NY5237 1/03.
Optional living benefit rider NY5362 9/07 and NY5362DB 9/07.
Products and/or riders may not be available in all states or markets.
Features and benefits may vary by state or market.
Principal Underwriter: Capital Brokerage Corporation (dba Genworth
Financial Brokerage Corporation in Indiana), 6620 West Broad Street, Building
2, Richmond, VA 23230. Member FINRA/SIPC.
Genworth Life & Annuity is licensed in all states except New York. Only
Genworth Life of New York is licensed in New York.
Genworth Life & Annuity, Genworth Life of New York and Capital Brokerage
Corporation are members of Genworth Financial, Inc.
About Genworth Financial
Genworth Financial, Inc. (NYSE: GNW) is a leading public Fortune 500
global financial security company. Genworth employs approximately 7,000 people
worldwide. Its products and services help meet the investment, protection,
retirement and lifestyle needs of over 15 million customers in more than 25
countries. Genworth operates through three segments: Retirement and
Protection, International and U.S. Mortgage Insurance. Its products and
services are offered through financial intermediaries, advisors, independent
distributors and sales specialists. Genworth Financial, which traces its roots
back to 1871, became a public company in 2004 and is headquartered in
Richmond, Virginia. For more information, visit http://www.genworth.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, but are not limited to our plans,
objectives, expectations and intentions and other statements contained in this
release that are not historical facts as well as statements identified by
words such as expects, anticipates, intends, plans, believes,
seeks, estimates, or words of similar meaning. These statements are based
on our current beliefs or expectations and are inherently subject to
significant uncertainties and changes in circumstances, many of which are
beyond our control. Actual results may differ materially from these
expectations due to changes in global political, economic, business,
competitive, market and regulatory factors.
SOURCE Genworth Financial, Inc.