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Sammons Financial Group Member Companies Bring New Index Offering to IUL Products

Sammons Financial Group, Inc.
·6-min read

New index is designed to stabilize investment performance in a fluctuating market

WEST DES MOINES, Iowa, Jan. 26, 2021 (GLOBE NEWSWIRE) -- Midland National® Life Insurance Company and North American Company for Life and Health Insurance®, member companies of Sammons Financial Group®, are offering a new financial index designed by Fidelity Investments that helps address consumer concerns of market volatility and stable retirement savings.

The Fidelity Multifactor Yield IndexSM 5% ER leverages Fidelity’s established legacy of asset management capabilities. The index will be added into Midland National’s and North American’s portfolio of indexed universal life, or IUL, insurance products. It’s currently available on Midland National and North American’s portfolio of fixed indexed annuities.

The Fidelity Multifactor Yield IndexSM 5% ER includes a blend of six equity factor indices. A factor is a characteristic of a security that helps explain its risk and return behaviors.

Each factor and weighting was chosen based on its potential ability to enhance returns, manage risk, and target specific outcomes. This index performs by combining key factors in such a way to help lower overall risk, while providing the potential to consistently outperform the broader market. The factors within the new index include:

  • Dividend Yield – securities paying higher dividends

  • Value – securities that are less expensive relative to others

  • Momentum – positive-trending securities

  • Quality – financially healthy companies

  • Low Volatility – lower-risk securities

  • Size – smaller, potentially more agile companies

“It was important for us to bring a solution to market that helps address the balance for both yield and protection,” said Jerry Blair, Vice President and Chief Distribution Officer of Life Division at Sammons Financial Group member companies. “We’re confident this enhancement will continue to bring value to our customers.”

In addition to these investment factors, this index uses a 5% volatility control target aimed to maintain consistency through various market conditions. To manage volatility control, a fixed-income overlay is applied and allocates between 10-year Treasuries and cash to account for potential changes in interest rates. The overlay then adjusts allocation of the equity index on a daily basis to meet that 5% volatility target.

“We are excited to continue to work with Sammons Financial Group to help develop differentiated asset management solutions that aim to meet the evolving needs of their customers” said Matt Aurelia, senior vice president, Fidelity Institutional.

The new Fidelity Multifactor Yield IndexSM 5% ER will be available through Midland National and North American as of January 25, 2021.

About Sammons® Financial Group, Inc.
The companies of Sammons® Financial Group, Inc. help families and businesses protect their future to enjoy life’s moments today. A subsidiary of Sammons Enterprises, Inc., Sammons Financial Group is privately owned with member companies that are among the most enduring and stable in the financial services industry. Our companies include Midland National® Life Insurance Company (including Sammons® Corporate Markets); North American Company for Life and Health Insurance®; and Sammons Institutional Group® (including Midland Retirement Distributors® and Sammons Retirement Solutions®). Together, we offer today’s most sought-after life insurance, annuity, and retirement planning products. Sammons Financial Group: With You for Every Moment®.

About Midland National Life Insurance
For more than 110 years, Midland National® Life Insurance Company (Midland National) has been an industry leader, crediting the company’s strength to its commitment to stability, innovation and dedicated customer service. Midland National is accredited by the Better Business Bureau, and has earned an A+ (Superior) rating from A.M. Best, a large third-party independent reporting and rating company that rates an insurance company on the basis of the company's financial strength, operating performance and ability to meet its ongoing obligations to policyowners. This rating is the second highest out of 15 categories and was affirmed by A.M. Best for Midland National as part of Sammons FinancialSM on Aug. 18, 2020.

Founded as Dakota Mutual Life Insurance Company in 1906, Midland National has protected families and preserved legacies for generations. Midland National is one of the leading insurance companies in the United States. Midland National is a member of Sammons® Financial, a subsidiary of Sammons Enterprises, Inc. With its Annuity Division in West Des Moines, Iowa, and its Life Operations in Sioux Falls, South Dakota, Midland National operates in 49 states and the District of Columbia through its 12,000 licensed sales professionals. For more information, click here.

About North American Company for Life and Health Insurance

North American Company for Life and Health Insurance® is a member company of Sammons® Financial Group, Inc. Since 1886, North American has established a tradition of providing quality insurance products to consumers throughout the U.S. We offer a comprehensive portfolio of term, universal life, and indexed universal life insurance products. North American also offers a wide variety of traditional fixed and fixed index annuities and consistently ranks among the top fixed index annuity carriers in the U.S. (Source: Wink Sales & Market Report, 2018). For more information, please visit here.

The Fidelity Multifactor Yield Index 5% ER (the “Index”) is a multi-asset index, offering exposure to companies with attractive valuations, high quality profiles, positive momentum signals, lower volatility and higher dividend yield than the broader market, as well as U.S. treasuries, which may reduce volatility over time. Fidelity and its related marks are service marks of FMR LLC. Fidelity Product Services LLC (“FPS”) has licensed this index for use for certain purposes to Midland National® Life Insurance Company (the “Company”) on behalf of the Product. The Index is the exclusive property of FPS and is made and compiled without regard to the needs, including, but not limited to, the suitability needs, of the Company, the Product, or owners of the Product. The Product is not sold, sponsored, endorsed or promoted by FPS or any other party involved in, or related to, making or compiling the Index. The Company exercises sole discretion in determining whether and how the Product will be linked to the value of the Index. FPS does not provide investment advice to owners of the Product, nor to any other person or entity with respect to the Index and in no event shall any Product contract owner be deemed to be a client of FPS.

Neither FPS nor any other party involved in, or related to, making or compiling the Index has any obligation to continue to provide the Index to the Company with respect to the Product. Neither FPS nor any other party involved in, or related to, making or compiling the Index makes any representation regarding the Index, Index information, performance, annuities generally or the Product particularly.

Fidelity Product Services LLC disclaims all warranties, express or implied, including all warranties of merchantability or fitness for a particular purpose or use. Fidelity Product Services LLC shall have no responsibility or liability whatsoever with respect to the Product.

Indexed Universal Life Insurance products are not an investment in the “market” or in the applicable index and are subject to all policy fees and charges normally associated with most universal life insurance.

Sammons Financial is the marketing name of Sammons® Financial Group, Inc. and its member companies. Annuities are issued by, and product guarantees are solely the responsibility of, the issuing life insurance company.

Life insurance products are issued by Midland National Life Insurance Company, Administrative Office, One Sammons Plaza, Sioux Falls, SD 57193. Product, features, endorsements, riders or issue ages may not be available in all jurisdictions. Limitations or restrictions may apply.

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Media Contact:
Hillary Carlson
Manager, External Communications
Sammons Financial Group
hcarlson@sfgmembers.com
(515) 221-7426