US Life Insurer Launches Private Wealth, Trust Group

Tom Burroughes

2 November 2017

Jackson National Life Insurance Company®, aka Jackson®, has formed a private wealth and trust group, focused on planning, investment management and tax mitigation strategies for high-net-worth and ultra-high net-worth families.

The group works with private banks and trust firms as well as families’ trusted tax and legal advisors, the firm said yesterday in a statement.

Part of the rollout involves launch of a product, Private Wealth Shield, which Jackson® described as an “investment-only, tax-deferred variable annuity”. It is available as a fee-based offering.

“Since trust and private wealth firms operate on a fee-only business model, many of these entities haven’t traditionally utilized annuities in their practices,” Justin Fitzpatrick, head of private wealth and trust at Jackson, said. “However, we’re hoping to change that. We believe fiduciaries should have access to the tax deferral and income control provided by variable annuities in a commission-free form that fits their business. We’re looking forward to building relationships with the firms in this space,” he added.

Elaborating on its product launch, Jackson said that for irrevocable trusts, Private Wealth Shield provides “greater income and tax control and removes the need for tax-related distributions, keeping more assets in the trust for improved growth potential”.

Jackson, an indirect subsidiary of UK-headquartered Prudential Plc, has $249.8 billion in IFRS assets and $236.4 billion in IFRS policy liabilities set aside to pay primarily future policy-owner benefits .