NEW YORK, June 20, 2012 /PRNewswire/ -- AXA Equitable
Life Insurance Company announced today that the company's
Structured Capital Strategies variable annuity has surpassed
$1 billion in new sales since the
innovative product was introduced in October
2010.
"We developed Structured Capital Strategies in response to
investors' heightened fear of market risk," said Nick Lane, president of the Retirement Savings
division at AXA Equitable. "It is resonating with people who, after
the market tumult of the last few years, have a need for investment
growth potential but are understandably risk averse and want some
protection against market loss."
Structured Capital Strategies offers 1-, 3- and 5-year
participation in the performance of the following indices, up to a
cap, called the Performance Cap Rate, with a choice of downside
buffers:
- S&P 500 Price Return Index
- Russell 2000 Price Return Index
- MSCI EAFE Price Return Index
- London Gold Market Fixing Ltd. PM Fix Price/USD (Gold
Index)
- NYMEX West Texas Intermediate Crude Oil Generic Front Month
Futures (Oil Index)
AXA Equitable will absorb the first -10%, -20% or -30% of loss
in the event of negative index performance, depending on the
selected index and duration. Together, the downside buffer and cap
help to stabilize the impact of volatility. The Performance Cap
Rate is the maximum potential "ceiling" or cap that a
contractholder may get from index gains.
Addressing Volatility
"The last few years have sparked intense innovation in the
annuity industry. We now have a suite of solutions that help solve
for multiple market conditions and financial planning needs.
Structured Capital Strategies is at the forefront of this
progress," said Kevin Kennedy,
senior vice president, New Business Development, Retirement
Savings. "The product offers clients a new way to use an annuity to
help manage volatility, with performance cap rates that generally
increase during periods of volatility. Structured Capital
Strategies helps investors address market uncertainty instead of
running from it."
Redefining Assumptions about Annuities
"The success of Structured Capital Strategies represents a new
direction in variable annuities, redefining how insured savings
strategies can help investors navigate today's challenges," said
Michael McCarthy, senior vice
president, National Sales Manager, Retirement Savings. "We designed
it for individuals who want tax-deferred investment potential with
a level of downside protection that an insurer can provide."
About Structured Capital Strategies
The participation in index performance up to a cap with a
partial downside buffer which was described earlier in this release
is called the Structured Investment Option (SIO). Please keep in
mind that there is risk of substantial loss of principal because
the investor agrees to absorb all losses that exceed the protection
provided by the SIO at maturity. If you would like a guarantee of
principal, AXA Equitable offers other products that provide such
guarantees. Additionally, it must be noted that there are also
variable subaccounts that are not the SIO and the investment
results in these variable investment options do not depend on the
investment performance of a related index. Unlike an index fund,
the SIO provides a return at maturity designed to provide a
combination of protection against certain decreases in the index
and a limitation on participation in certain increases in the
index. There is a risk of substantial loss of principal because the
investor agrees to absorb all losses to the extent they exceed the
protection provided by the SIO at maturity.
AXA Equitable Life Insurance Company has sole legal
responsibility to pay amounts it owes under the contract. An owner
should look to the financial strength of AXA Equitable for its
claims-paying ability. The SIO does not involve an investment in
any underlying portfolio. Instead, it is an obligation of AXA
Equitable Life Insurance Company.
A variable annuity such as Structured Capital Strategies is a
long-term financial product designed for retirement purposes.
Simply stated, a variable annuity is a contract between you and an
insurance company that lets you pursue the accumulation of assets
through equities and other investment options. You may then take
payments or a lump sum amount at a later date. There are fees and
charges associated with Structured Capital Strategies, which
include a contract fee that covers administrative expenses, sales
expenses and certain expense risks.
Variable annuities are subject to market risk including loss of
principal. Withdrawals are subject to ordinary income tax
treatment, and if taken prior to age 59, you may be subject to an
additional 10% federal tax. Withdrawals may also be subject to a
contractual withdrawal charge. The withdrawal charge declines from
5% over a five year period for the Structured Capital Strategies
Series B product. Variable annuities contain certain restrictions
and limitations. For costs and complete details, contact a
financial professional.
The Performance Cap Rate is locked in on the Segment Start Date.
The Performance Cap Rate is a rate of return from the Segment Start
Date to the Segment Maturity Date, not an annual rate, even if the
Segment Duration is longer than one year. (Please note that a
contractholder does not invest directly in the applicable index.
The Performance Cap Rate will not be known until the Segment
starts.) The Segment Rate of Return may be limited by the
Performance Cap Rate, which may be lower than performance one may
have otherwise experienced if you invested in a mutual fund or
exchange-traded fund designed to track the performance of the
applicable index.
AXA Equitable, upon advance notice, may discontinue, suspend or
change contributions and transfers among investment options or make
other changes in contribution and transfer requirements and
limitations.
Certain types of contracts and features will not be available in
all jurisdictions. This release is not a complete description of
the Structured Capital Strategies variable annuity.
You should carefully consider your investment objectives and
the charges, risks, and expenses of Structured Capital Strategies,
as stipulated in the prospectus, before investing. For a prospectus
containing this and other information please contact your financial
professional. Please read it carefully before investing or sending
money.
S&P 500 Price Return Index - Comprises 500 of the largest
companies in leading industries of the U.S. economy. Larger, more
established companies may not be able to attain potentially higher
growth rates of smaller companies, especially during extended
periods of economic expansion.
Russell 2000 Price Return Index - Tracks the performance of
small-cap companies. Stocks of small and mid-size companies have
less liquidity than those of larger companies and are subject to
greater price volatility than the overall stock market. Smaller
company stocks involve a greater risk than is customarily
associated with more established companies.
MSCI EAFE Price Return Index – A sampling of securities deemed
by MSCI as designed to measure the equity market performance of the
developed European, Australasian and Far East (EAFE) markets.
Australasia includes Australia,
New Zealand and neighboring
islands of the South Pacific. International securities carry
additional risks, including currency exchange fluctuation and
different government regulations, economic conditions or accounting
standards.
London Gold Market Fixing Ltd PM Fix Price/USD (Gold Index)
(Available in IRA contracts
only. Not available in all jurisdictions.) – An international
benchmark for the price of Gold. Because this Investment Segment is
tracked to the commodities industry it can be significantly
affected by commodity process, world events, import controls,
worldwide competition, government regulations, and economic
conditions. Apart from the risks associated with general commodity
investing, there are risks to investing in the common stocks of
commodity-producing companies. You should be willing to accept the
risks that come with exposure to foreign and emerging markets,
including political, economic and currency volatility.
NYMEX West Texas Intermediate Crude Oil Generic Front Month
Futures (Oil Index) (Available in IRA contracts only. Not available in all
jurisdictions.) – The underlying commodity index of oil futures
contracts. Risks involved with futures contracts include imperfect
correlation between the change in the market value of the stocks
held by the portfolio and the prices of futures contracts and
options, and the possible lack of a liquid secondary market for
futures or options contracts, and the resulting inability to close
a futures contract prior to its maturity date. Also, index options,
over-the-counter options, and options on futures are exposed to
additional volatility and potential losses.
S&P®, Standard & Poor's®, S&P 5OO® and Standard
& Poor's 5OO® are trademarks of Standard &Poor's Financial
Services LLC ("Standard & Poor's") and have been licensed for
use by AXA Equitable. Structured Capital Strategies (SM) is not
sponsored, endorsed, sold or promoted by Standard & Poor's and
Standard & Poor's does not make any representation regarding
the advisability of investing in Structured Capital Strategies
(SM).The Product referred to herein is not sponsored, endorsed, or
promoted by MSCI, and MSCI bears no liability with respect to any
such Product or any index on which such Product is based. The
prospectus contains a more detailed description of the limited
relationship MSCI has with AXA Equitable and any related products.
The Russell 2000® Index is a trademark of Russell Investments and
has been licensed for use by AXA Equitable. The Product is not
sponsored, endorsed, sold or promoted by Russell Investments and
Russell Investments makes no representation regarding the
advisability of investing in the Product.
Structured Capital Strategies variable annuities are issued by
AXA Equitable Life Insurance Company, New
York, NY 10104 and co-distributed by affiliates AXA
Advisors, LLC and AXA Distributors, LLC, New York, NY 10104.
Contract form #s: 2010PCSBASE-I-A/B and 2010PCSBASE-A/B and any
state variations
About AXA Equitable
In business since 1859, AXA Equitable Life Insurance Company
(NY, NY) is a leading financial protection company and one of the
nation's premier providers of life insurance, annuity, and
financial products and services. The company's products and
services are distributed to individuals and business owners through
its retail distribution channel, AXA Advisors, LLC (member FINRA,
SIPC) and to the financial services market through its wholesale
distribution channel, AXA Distributors, LLC.
Find AXA Equitable on Facebook and Twitter or visit the
company's multi-media newsroom The Source @ AXA Equitable.
AXA Equitable, a subsidiary of AXA Financial Inc., is part of
the global AXA Group, a worldwide leader in financial protection
strategies and wealth management. "AXA Group" refers to AXA, a
French holding company for an international group of insurance and
financial services companies together with its direct and indirect
consolidated subsidiaries. For more information, visit
www.axa-equitable.com.
GE-69196 (6/12)
SOURCE AXA Equitable
