Augustar generates industry buzz with 24% premium bonus on its FIA

AuguStar Retirement got the annuity industry's attention this week by announcing a 24% premium bonus on its fixed indexed annuity.

The OrionShield 10-year FIA offers a new tiered premium bonus structure, AuguStar said in a news release. The structure allows clients to select up to a 24% premium bonus credited to their initial premium on day one. The new premium bonus options are even available for ages 81-85, the release noted.

"AuguStar’s bonus is one of the biggest bonuses we have had in the indexed annuity market," said Sheryl Moore, CEO of Moore Market Intelligence and Wink, Inc.

North American Company for Life and Health Insurance is tops with a "whopping" 27% bonus, Moore said, but several carriers are in the 20%+ bonus pool since rates popped back up in the fourth quarter 2022.

“The premium bonus options have always been popular for OrionShield,” said Marc Socol, AuguStar Retirement’s chief revenue officer. “By featuring five different levels of premium bonuses, OrionShield 10 rises to a new level.”

In addition, AuguStar has a new lineup of index options, including the S&P MARC 5 index and three new options developed in partnership with MerQube, which specializes in technology for next-generation index-linked investing, offering more diversification opportunities for potential returns.

The full index lineup features targeted volatility levels to offer "faster, more precise risk management," the release said, which AuguStar said allows for quicker responses to market fluctuations, enhancing risk-adjusted returns.

“In under two years, our products have exceeded expectations with independent marketing organizations, the enhancements launched today position OrionShield among the most competitive in the industry," Socol said.

Two years in business

A Constellation Insurance company, AuguStar is the rebranded remnants of the former Ohio National. By the time Constellation acquired the troubled insurer in 2022, Ohio National had torched some bridges with producers with its controversial decision to eliminate trailing commissions in 2018. The insurer also ceased selling annuities that year.

AuguStar Life Insurance and AuguStar Retirement rolled out operations nearly two years ago, with Clifford Jack, CEO of the latter company, promising an "innovative" product lineup.

An AuguStar executive declined comment on sales numbers for OrionShield.

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InsuranceNewsNet Senior Editor John Hilton has covered business and other beats in more than 20 years of daily journalism. John may be reached at [email protected]. Follow him on Twitter @INNJohnH.