Prudential Financial Inc. is teaming up with Edward D. Jones & Co. LP to create a new A-share variable annuity. The insurer expects to submit a filing for the product in the next 30 to 60 days.
Prudential Financial Inc. is teaming up with Edward D. Jones & Co. LP to create a new A-share variable annuity. The insurer expects to submit a filing for the product in the next 30 to 60 days.
“Edward Jones has been an innovator in [the A-share variable annuity] space, and that complements our culture of innovation,” said Bruce Ferris, senior vice president, sales and distribution, for Prudential Annuities. “We had very encouraging discussions with them on their ideas and thought processes.”
The carrier and the broker-dealer also cemented a new distribution relationship. That pairing allows Edward Jones’ force of 12,000 advisers to sell Prudential’s products — namely, its variable annuities, which include the popular Highest Daily living-benefit feature. In addition, reps will have access to Prudential’s permanent and term life products.
The new VA, expected to launch late next spring, will be an A-share variable annuity — the first released by Prudential.
“The value proposition around the A-share is that it’s front-end-loaded, and you can benefit from break points with higher invested asset sizes,” said Mr. Ferris. “With that, there’s a corresponding reduction in commission levels.”
The Highest Daily living benefit will be available on the new VA. The product will also include model portfolios suggested by Edward Jones, using Prudential’s investment platform, Mr. Ferris said.