UPDATE: August 26, 2021
OLDWICK, N.J.–(BUSINESS WIRE)–AM Best has been placed under review with developing implications the Financial Strength Rating of B++ (Good) and the Long-Term Issuer Credit Rating of “bbb+” (Good) of Guggenheim Life and Annuity Company (GLAC) (Wilmington, DE).
The Credit Rating (rating) actions reflect GLAC’s decline in surplus and weakening in its risk-adjusted capital position during the first half of 2021, driven in large part by the payment of stockholder dividends to its ultimate parent, Sammons Enterprises, Inc.
GLAC’s management is working on a capital plan to increase its capital and surplus and strengthen its risk-adjusted capital position.
The ratings are expected to remain under review while GLAC management finalizes its capital plans and AM Best can fully assess the impact this has on the company’s capital and surplus position and risk-adjusted capitalization.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page.
For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper use of Best’s Credit Ratings, Best’s Preliminary Credit Assessments, and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher, and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore, and Mexico City.
For more information, visit www.ambest.com.
Copyright © 2021 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Contacts
Erik Miller, CFA
Associate Director
+1 908 439 2200, ext.5187
erik.miller@ambest.com
Michael Lagomarsino, CFA, FRM
Senior Director
+1 908 439 2200, ext. 5810
michael.lagomarsino@ambest.com
Christopher Sharkey
Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Jim Peavy
Director, Communications
+1 908 439 2200, ext. 5644
james.peavy@ambest.com
Gainbridge Annuities are issued by Guggenheim Life and Annuity Company which is a part of a larger organization called Group1001.
Guggenheim Life and Annuity Company are rated A- by AM Best. Prior to being purchased by Guggenheim Life, the company was called Standard Life of Indiana.
| Insurer | Guggenheim Life and Annuity |
|---|---|
| Mailing Address | 401 Pennsylvania Parkway, Suite 300 Indianapolis, IN 46280 |
| Group Affiliation | Group 1001 |
| A.M. Best Rating | A- |
| State of Domicile | Deleware |
| NAIC Company Code | 83607 |
| Assets | $11,688,959,539 |
| Liabilities | $10,974,895,598 |
| Website | Guggenheim Life and Annuity Website |
Gainbridge Annuity: Part of Group 1001
Group 1001 is a family of insurance companies offering accumulation and protection solutions and investing in social programs to drive positive change for U.S. communities.
Led by a team with a record of building successful businesses, Group1001 combines fresh thinking and a can-do culture with insurance, technology, and investment management expertise to make a real difference in people’s lives.
In addition to Gainbridge Annuities, Group 1001 also owns:
- Delaware Life Insurance Company
- Clear Spring Insurance
- Clear Spring Health
Gainbridge Annuity Contact Information
Phone Number:
Annuity Website:
Login for Policyholders:
Gainbridge Annuities Explained:
#1. Gainbridge Multi-Year Guaranteed Annuity
A multi-year guaranteed annuity pays a fixed rate for the term of the annuity contract, anywhere from 3 to 10 years depending on the option you purchase.
After the original annuity contract term has ended the owner has the option to withdraw all of their annuity account value in a single lump sum.
However, if you do not liquidate your annuity during a 30-day window it will automatically renew for another 5-year period at whatever the current new money rate is at that time.
Liquidity: 10% free withdrawals annually beginning contract year 2.
Minimum Premium: $10,000
Premium Type: Single-Premium, does not accept additional deposits.
Fees: No Annual Fees
#2. Gainbridge SPIA
The Gainbridge SPIA (Single-Premium Immediate Annuity) is a financial planning tool designed to convert an initial investment into a stable stream of fixed monthly payouts over a specified investment period. You can select a Guaranteed Period (investment period) from 3 to 10 years while earning interest.
The Gainbridge SPIA will make fixed monthly payouts during the Guaranteed Period. Each Payout Amount is based on the amount of your initial investment when you purchase your SPIA. One note of interest is that they currently do not offer lifetime payout options which are the most common type of immediate annuity payment option.
Their SPIA does offer a Commutation option during the guarantee period which happens to be a nice feature that is not offered in many single premium immediate annuity products.
Commutation Explained
Your Payout Amounts are calculated with the expectation that you will maintain your Gainbridge SPIA for the entire Guaranteed Period. If you choose to commute your contract prior to the end of the Guaranteed Period, a 4% commutation charge is applied when calculating the Commutation Value you will receive.
Gainbridge Annuity State Availability
Currently, the Gainbridge Annuity is available for purchase in 22 states listed below.
- Arizona
- Connecticut
- Florida
- Georgia
- Illinois
- Indiana
- Massachusetts
- Maryland
- Michigan
- Minnesota
- Missouri
- North Carolina
- New Jersey
- Nevada
- Ohio
- Oregon
- Pennsylvania
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
Gainbridge Annuities Surrender Charge Schedule
| Annuity Term | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | Year 6 | Year 7 | Year 8 | Year 9 | Year 10 |
| 3-Year | 3% | 2% | 1% | |||||||
| 4-Year | 3% | 3% | 2% | 1% | ||||||
| 5-Year | 3% | 3% | 3% | 2% | 1% | |||||
| 6-Year | 3% | 3% | 3% | 3% | 2% | 1% | ||||
| 7-Year | 3% | 3% | 3% | 3% | 3% | 2% | 1% | |||
| 8-Year | 3% | 3% | 3% | 3% | 3% | 3% | 2% | 1% | ||
| 9-Year | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 2% | 1% | |
| 10-Year | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 3% | 2% | 1% |
Annuity Fees
There are no fees associated with the Gainbridge Annuities unless you surrender your annuity contract prematurely. In this case, you can refer to the surrender schedule table above and see what the early surrender fees would be for each year of the contract.
Gainbridge Annuity Rates: Historical Rate of Return
With Gainbridge Multi Year Guarantee Annuity you know exactly what your rate of return will be because they guarantee the interest rate for the length of the contract term. At the time this was written on October 12, 2020, the Gainbridge 5 year multi year guaranteed annuity was paying 3.10%.
Final Thoughts on Gainbridge Annuities
Gainbridge Annuity is very young in the annuity market space compared to most insurance companies. Given the fact they are issued by a company rated B++ by A.M. Best they would need to have a noticeably higher interest rate than an Insurer with higher financial ratings.
If two companies are paying the same, or very similar interest rates, we always lean toward the insure with greater financial strength. With that said, if you do not have a financial advisor and are the type of investor who is comfortable doing business online – Gainbridge Annuities do offer a convenient platform with a simple application process.
Annuities are distributed by My Annuity Store, Inc. Guarantees are subject to the claims-paying ability of the insurer. My Annuity Store, Inc. does not advise clients on the purchase of non-fixed annuity products. The information presented here is not intended to be a recommendation to purchase a fixed annuity, fixed index annuity, variable annuity, registered index-linked annuity (RILA), immediate annuity (SPIA), longevity annuity, or Qualified Longevity Annuity Contract (QLAC).
The contract features described may not be current and may not apply in the state in which you reside. Insurance companies often issue contracts that are ‘state-specific’. Insurance companies also change their products and information often and without notice. Annuities are subject to the terms and conditions of the specific contract issued by the insurer, are not FDIC or NCUA insured, are not bank guaranteed, may lose value, and are not a deposit.
Please call (855) 583-1104 if you have any questions or concerns. The information presented here is not a representation regarding the suitability of any concept or product(s) for an individual and it does not provide tax or legal advice. You should always consult your own financial planning, tax, and legal advisors to determine if a fixed annuity, immediate annuity, longevity annuity, or Qualified Longevity Annuity Contract is suitable for your financial situation.
