FIDELITY® AND METLIFE ANNOUNCE FIRST YEAR SALES OF OVER $1 BILLION FOR VARIABLE ANNUITY PROVIDING LIFETIME RETIREMENT INCOME1
Americans’ Desire for Guaranteed Income, Balance of Asset Growth & Preservation Contributing to Adoption of MetLife Growth & Guaranteed Income Annuity
Boston & New York – January 10, 2011 – MetLife, Inc. (NYSE: MET), a leading global provider of insurance, annuities and employee benefit programs, and Fidelity Investments®, one of the world’s largest providers of financial services and retirement products, announced today strong first year sales for the MetLife Growth and Guaranteed IncomeSM (MGGI) variable annuity totaling more than $1 billion.
The MGGI solution, a straightforward deferred variable annuity with a living benefit launched in November of 2009 and distributed exclusively by FidelityI, achieved sales of more than $1 billion in its first 12 monthsII.
MGGI is the only deferred variable annuity with a living benefit currently distributed through Fidelity. It allows individuals approaching or living in retirement to use a portion of their retirement assets, particularly from a 401(k), 403(b), IRAIII or other savings account, to provide a guaranteed lifetime income stream for an individual or for his or her spouse. The product provides the potential for growth when markets are up, and offers downside income protection against market declines. In addition, individuals retain control of their assets and can access a portion of their account value at any time during the contract2.
MGGI is issued by MetLife and includes a built-in guaranteed withdrawal benefit for life which ensures guaranteed lifetime withdrawals of between 4 percent and 6 percent of the single premium investment, depending on the age of the client. Once established, the withdrawal percentage does not changeIV. MGGI simplifies the investment option selection for the customer by offering a single fund, the Fidelity® VIP FundsManager® 60% Portfolio, which uses an asset allocation approach to achieve exposure to multiple asset classes. This asset allocation approach provides potential for both growth and reduced volatility through diversificationV. MGGI is also priced lower than the industry average for deferred variable annuities with guaranteed withdrawal benefits.
Factors contributing to MGGI’s sales growth may include an increasing demand among Americans for investments designed to provide guaranteed income in retirement, along with the appeal of a product that is designed to provide a balance between providing guaranteed lifetime income and the potential for investment growth. According to recent MetLife researchVI, 69 percent of Americans do not feel they currently have an adequate financial safety net, which suggests they are looking for ways to achieve financial protection. Additionally, new Fidelity researchVII shows most investors within five years of retirement (74%) are looking for a balance between preservation of their savings and growth and nearly half (46%) say when they are considering a retirement income product, it is very important to have investments that guarantee a certain amount of income even if the investment’s value declines.
“Strong sales of the MGGI variable annuity show a demand and growing receptiveness in the public for a product that can help individuals secure a steady stream of income in retirement,” stated Robert E. Sollmann, executive vice president, MetLife. “MetLife’s overall sales of variable annuities continued to be strong, and collaborating with Fidelity to offer individuals this retirement income solution, has been an important component of our success,” added Michael K. Farrell, executive vice president, U.S. Distribution.
“Investors have found that making decisions about an annuity can be complicated, which is why we’ve worked with MetLife to develop a straightforward offering that uses a single fund, actively managed by Fidelity, with clear costs that investors can easily understand,” said Jeffrey K. Cimini, president of Fidelity Investments Life Insurance Company. “This new product is a strong addition to the extensive range of financial products and services that Fidelity offers investors today for making the transition into retirement.”
Overall, Fidelity saw an 85 percent increase in variable annuity sales year-over-year through November, with MGGI sales being a significant contributor to that growth.
For additional information about MGGI and how it can fit into an overall retirement income plan, investors can visit www.fidelity.com/incomeplus. They can also speak with a Fidelity Annuity Specialist directly at (800) 544-2442.
About Fidelity Investments & Fidelity Investments Life Insurance Company (FILI)
Fidelity Investments is one of the world’s largest providers of financial services, with assets under administration of nearly $3.4 trillion, including managed assets of over $1.5 trillion, as of November 30, 2010. Founded in 1946, the firm is a leading provider of investment management, retirement planning, portfolio guidance, brokerage, benefits outsourcing and many other financial products and services to more than 20 million individuals and institutions, as well as through 5,000 financial intermediary firms. For more information about Fidelity Investments, visit www.fidelity.com.
Established in 1987, Fidelity Investments Life Insurance Company (FILI), and for New York residents, Empire Fidelity Investments Life Insurance Company®, New York, N.Y., develop and market their own insurance products, in addition to offering access to a number of insurance products from other well-known carriersII.
MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs, serving 90 million customers in over 60 countries. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East. For more information, visit www.metlife.com.
MetLife is not affiliated with any Fidelity Investments company.
VIP refers to Variable Insurance Products. VIP Portfolios are available for investment only by the separate accounts of insurance companies.
MetLife Growth and Guaranteed Income annuity (Policy Form Series No. 8800 (10/09)) is issued by MetLife Investors USA Insurance Company (MLIUSA), 5 Park Plaza, Suite 1900, Irvine, CA 92614 and, in New York (Policy Form Series No. 6800 (10/09)), only by Metropolitan Life Insurance Company, 200 Park Avenue, New York, NY 10166 (each, a "MetLife" company). MLIUSA and Metropolitan Life Insurance Company are affiliates. The contract's financial guarantees are solely the responsibility of the issuing insurance company. Fidelity Brokerage Services, Member NYSE, SIPC, and Fidelity Insurance Agency, Inc. are the distributors; they are not affiliated with any MetLife company.
Before investing, consider the investment objectives, risks, charges, and expenses of the variable annuity and its investment options. Call or write to Fidelity or visit Fidelity.com for a free prospectus, and, if available, summary prospectus, containing this information. Please read the prospectus and consider this information carefully before investing. Product availability and features may vary by state. Please refer to the contract prospectus for more complete details regarding the living and death benefits.
The contract value is subject to market fluctuations and investment risk so that, when withdrawn, it may be worth more or less than its original value.
Pursuant to IRS Circular 230, MetLife is providing you with the following notification: The information contained in this document is not intended to (and cannot) be used by anyone to avoid IRS penalties. This document supports the promotion and marketing of insurance products.
You should seek advice based on your particular circumstances from an independent tax advisor.
Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. You should consult and rely on your own independent legal and tax advisors regarding your particular set of facts and circumstances.
Withdrawals of taxable amounts are subject to ordinary income tax and, if made before age 59½, may be subject to a 10% federal income tax penalty. If applicable, withdrawals will reduce the living and death benefits and contract value. Withdrawals may be subject to withdrawal charges.
Like most annuity contracts, MetLife contracts contain withdrawal charges, limitations, exclusions, holding periods, termination provisions and terms for keeping them in force. Contact your representative for complete details.
Fidelity Annuity Specialists are licensed insurance agents.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, and Fidelity Insurance Agency, Inc. are the distributors.
Fidelity, Fidelity Investments, VIP FundsManager and the Fidelity Design logo are registered service marks of FMR LLC.
Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917.
© 2011 FMR LLC. All rights reserved.
This annuity is issued by MetLife Investors USA Insurance Company (MLIUSA) and, in New York, only by Metropolitan Life Insurance Company, (each, a "MetLife" company). The contract’s financial guarantees are solely the responsibility of the issuing insurance company.
1 The guarantees under the MGGI product are subject to the product terms, exclusions and limitations and the insurer's claims paying ability and financial strength.
2 Excess withdrawals and any withdrawal prior to age 59½ may significantly reduce the guaranteed withdrawal benefit amount, and, if taken during the first 5 contract years, may be subject to a 2% surrender fee. Withdrawals of taxable amounts are subject to ordinary income tax, and if made before age 59½, may be subject to a 10% IRS penalty.
3 According to Morningstar, Inc., MetLife Growth and Guaranteed Income's (MGGI) annual annuity change of 1.90% for single and 2.05% for joint lives is approximately 15% lower than the industry average (2.36% for single, 2.51% for joint)for deferred variable annuities offering guaranteed withdrawal benefits for life as of 09/30/2010.
IFidelity Brokerage Services LLC, Member NYSE, SIPC, and/or Fidelity Insurance Agency, Inc., distribute fixed and variable insurance products issued by Fidelity Investment Life Insurance Company, Empire Fidelity Investments Life Insurance Company, New York, NY, and certain third party insurance companies, which are not affiliated with Fidelity Investments.
II November 16, 2009 thru November 16, 2010.
III Before purchasing an annuity with 401(k), IRA, or 403(b) assets, you should evaluate how the annuity and 401(k), IRA, or 403(b) compare with respect to benefits, fees, and choice of investment options.
IV Benefit base will be compared to contract value annually and increased when the contract value exceeds the benefit base on anniversary dates prior to the oldest annuitant reaching age 85. At or after age 85, customers will no longer be eligible for potential benefit base increases. Withdrawals will reduce the contract value and death benefit and may impact whether your income payments will increase even if your contract value is increasing.
V The Fidelity VIP FundsManager 60% Portfolio is subject to the volatility of the financial markets in the U.S. and abroad, and may be subject to the additional risks associated with investing in high-yield, commodity-linked, small-cap, and foreign securities. Please note that the portfolio’s performance depends on that of the underlying funds in which it invests. The portfolio is managed by Strategic Advisers®, Inc. (SAI), a registered investment adviser and wholly owned subsidiary of FMR LLC. Although it may help manage investment risk, diversification does not guarantee protection again loss or positive investment performance.
VI MetLife Study of the American Dream, April 2010.
VII Fidelity's Retirement Mindset Research was conducted online among pre-retirees aged 55 or older. Data were collected by independent research firm Synovate between October 7 and 12, 2010.