Symetras Low Cost, High Value Focus: The Smart Variable Annuity Choice
Bellevue, Wash. — (May 29, 2007) — Symetra Life Insurance Company has introduced a distinctive new variable annuity that is among the most cost-effective of such products on the market. The
Symetra Focus Variable Annuity is also one of the only variable annuities available featuring index investment options from Vanguard. The product’s low-cost structure and premier investment options are designed to help clients keep more of the returns generated from investments linked to the annuity.
Among variable annuities, costs such as excessive mortality and expense (M&E) fees, administration charges, fund expenses and distribution charges can dramatically reduce financial growth. By contrast, lower charges leave more of the client’s money in investment accounts to compound and grow. According to VARDS, a leading source of variable annuities data, average total contract expenses for variable annuities were 2.51 percent of assets in 2006.
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With
Symetra Focus, the average total cost including all available investment options is 1.59 percent — 36.6 percent less than the industry average.
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Compared with average total expenses among the five most popular variable annuities,
Symetra Focus would result in average annual expense savings of 71 basis points for a typical purchase.
3 Those savings could result in significant additional earnings for the client over the long term.
The simple, straightforward investment options within
Symetra Focus remove much of the guesswork in choosing a variable annuity. With options from leading investment companies such as Vanguard and Fidelity Investments,
Symetra Focus enables clients to easily select an investment strategy tailored to their individual risk preference. The annuity also features a full spectrum of Exchange-Traded Funds (ETFs) from Ibbotson for those clients looking for an ETF portfolio managed by asset allocation experts.
“We took a hard look at the variable annuity marketplace and decided it is time clients had a simpler, lower-cost solution,” said Richard Lindsay, senior vice president of life insurance and annuities at Symetra Financial. “As a variable annuity, we believe Symetra Focus gives the client everything they need to succeed and nothing they don’t. This is a simple, effective product that gets people closer to reaching their retirement savings goals.”
Variable annuities enable clients to invest in a selection of portfolios, or sub-accounts, ranging from conservative to more aggressive. Earnings are based on the market performance of the underlying investment portfolios. Clients can typically switch money between investments at no cost and earnings are tax deferred. In addition, variable annuities provide a death benefit for heirs and the flexibility to convert accumulated savings into guaranteed income for life. Sales of variable annuities in banks and credit unions hit $21.6 billion in 2006, and they remain one of the fastest growing savings products within financial institutions.
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More information about the
Symetra Focus Variable Annuity is available online at
www.symetra.com/focus.
About Symetra Financial
Symetra Financial is a family of companies with nearly a half-century of experience providing retirement plans, employee benefits, annuities and life insurance through independent advisors and agents nationwide. Its insurance company subsidiaries have nearly $20 billion in assets.
5 Symetra Financial is owned by an investor group led by White Mountains Insurance Group Ltd. and Berkshire Hathaway Inc. For more information, visit Symetra Financial’s website at
www.symetra.com.
1 VARDS Contract Expense Report, Fourth Quarter 2006.
2 For all states other than New York; comparison based on average of contract expenses, VARDS Contract Expense Report, Fourth Quarter 2006.
3 Insurance cost savings calculated by comparing M&E, annual asset administration, distribution and fund expense charges among the top five selling variable annuities in the bank channel as of December 31, 2006, based on a typical $250,000 annuity purchase.
4 Kehrer-LIMRA Report, First Quarter 2007.
5 Total GAAP assets per financial statements of Symetra Life Insurance Company, December 31, 2006.
Before investing, carefully consider the investment objectives, risks, charges and expenses. This and other information is contained in the contract prospectus and the underlying portfolio prospectuses. Please call or write your Registered Representative or Symetra for free copies of the prospectuses and read them carefully before investing.
Past performance is no guarantee of future returns. The investment return and principal value of an investment will fluctuate; and units, when redeemed, may be worth more or less than their original cost. Variable annuities, which are suitable for long-term investing, are subject to market risks, including the potential loss of principal invested.
An investment in the portfolio is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Securities are offered through Symetra Securities Inc., member SIPC.
Variable annuities are issued by Symetra Life Insurance Co. Both Symetra Life Insurance Co. and Symetra Securities Inc. are located at 777 108th Ave NE, Suite 1200, Bellevue, WA 98004-5135. Symetra® and the Symetra Financial logo are registered service marks of Symetra Life Insurance Company, 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004.
