Axa to launch variable annuity product in Q4

Axa will begin offering variable annuities before the end of 2010, Michael Gregg, managing director of Axa Global Distributors, has announced.

A product is currently being tested with a select group of specialist IFAs, and will be part of the Axa Life Europe Secure Advantage range.

Gregg said the market at the end of 2009 had presented an opportunity for Axa to move forward with a variable annuity product.

It revealed plans to offer a variable annuity product in the summer but it was unclear when it planned to launch to market.

The insurance giant is also in distribution talks with banks, and looks to launch a product by Q4 2010.

The variable annuity products will provide customers with a choice of investments and a capital or income guarantee. They will allow wealth transfers to beneficiaries on the death of the customer.

Axa plans to make the product available via three tax wrappers: a personal pension, a trustee investment plan, or an offshore investment plan.

"Not only does the new Secure Advantage range offer consumers the opportunity to benefit from the growth potential of equity exposure with guarantees to protect them against downside market risks, it also provides an excellent opportunity for financial advisers to tap into a growing market segment," says David Thompson, managing director, wealth investments and distribution, Axa Wealth.

"This product offers them the opportunity to work closely with their clients to select the best combination of downside market protection and upside market opportunity to fit their needs."