Two major players have reached an agreement that will offer variable annuity portfolios made up of exchange traded funds.
reports that US insurer Transamerica, part of Aegon NV, has looked to the world’s biggest money manager BlackRock in an effort to boost its investment line-up. Its new line-up will include three investment options that will be sub-advised by BlackRock, while Transamerica acts as the investment manager.
Transamerica is looking to revive its annuity sales after slipping from fifth place to seventh place in the USA during 2014, according to Bloomberg
. The company has lost part of its market share to the likes of Axa and Prudential in 2015 and recently agreed to sell a distribution network, which supported 1,100 advisors, to John Hancock Financial Network.
According to Tom Wald, the chief investment officer at Transamerica Asset Management, the new collaboration will offer exciting options to potential clients.
“These are new solutions that present the opportunity to have an interest in equity portfolios possessing a high degree of investment rationale,” he said. “We are excited to be offering these variable annuity investment options.”
There has been great emphasis on the ETF market among insurers in recent times – specifically as the market has grown to around $2 trillion in assets.
“As insurers continue to seek new investment options, we’re committed to delivering next-generation solutions,” Raman Suri, head of iShares Insurance at BlackRock, said in a statement.