Annexus and John Hancock: A Groundbreaking Collaboration

New Indexed Universal Life (IUL) Solution Offers Cutting-Edge PRISM Booster Strategy

The financial services industry continues to buzz with excitement after Annexus and John Hancock announced their first-ever collaboration in June: John Hancock’s Protection indexed universal life insurance (PIUL) with access to Annexus’ cutting-edge indices. 

This strategic partnership combines the innovative experience of Annexus with the enduring financial strength and legacy of John Hancock. For producers, this first-time alliance presents new opportunities and benefits through the integration of Annexus’ indices and the all-new PRISM Booster Strategy.

Unleashing Innovation in Financial Products 

Annexus has long been celebrated for its cutting-edge financial products, particularly in the realm of indexed annuities and indexed universal life insurance. These products offer clients the dual advantage of growth potential linked to market indexes and protection against market downturns.

“Just as a chassis forms the foundation of a car, Annexus provides the underlying structure for innovative financial products. We have almost 20 years’ expertise in product design and development that sets the stage for building robust and effective solutions,” said Ron Shurts, co-founder and CEO, Annexus. “A solid year went into the research and design of the new  indexed accounts for this John Hancock PIUL product.”

John Hancock, a household name in insurance and financial services, brings to the table a robust portfolio of products and services, extensive market experience, and a strong distribution network. 

“We saw this collaboration as an amazing chance to work with an innovative pioneer in product design, while broadening the reach of our strong brand recognition and the impact of our unique Vitality offering,” said Fred DeMinico, head of sales, John Hancock. “We believe we’re in one of the strongest positions to lead in the powerful combination of protection and performance.”

The synergy between Annexus’s innovative product design and John Hancock’s established market presence is poised to create new financial solutions that cater to a wide array of client needs.

“Once we cracked the code with annuities, the next step was taking on IUL to address consumer value,” said Shurts. “So, with this latest product — John Hancock’s quality and stellar reputation, product competitiveness, underwriting competitiveness, Vitality and the never-seen-before PRISM Booster Strategy — we feel like we’ve found a winning combination.”

A Broader View of Indices and Stability Potential for Changing Markets

New indexed accounts available on the product are tied to the S&P PRISM^SM  Index, which is a rules-based index designed to help provide consistent growth through changing market environments. It is designed to look beyond volatility, evaluate a variety of market indicators and strategically allocate for consistent performance potential.

“We wanted something different than the more than 200  indices in the life and annuity market out there, so we partnered with S&P to launch the S&P PRISM Index in 2018,” said Shurts. “The PRISM Booster is a more competitive structure than a typical S&P cap structure based on the efficiency of the booster coupled with PRISM’s ability to use key market indicators to strategically weight between the S&P 500, bonds and commodities to help provide more consistent growth through changing market environments.”

But what makes John Hancock’s PIUL solution unique is its launch of the new PRISM Booster Strategy (PRISM Booster) — the first index strategy designed to provide interest credits when the index is up, flat, or even some years when the index is down.

PRISM Booster can help increase the number of positive return scenarios by adding 4% to the index return in each year. In any year that the index returns are better than -4.0%, the account receives a positive interest credit.

The PRISM Booster was designed to help offer more stable and consistent returns in a variety of market conditions. By applying a booster, the S&P PRISM Index with PRISM Booster provided positive 1-year returns in 91% of historical and back-tested periods.**

“Annexus is strong in tactical innovation, and the PRISM Index and Booster Strategy are great examples,” said DeMinico. “It is very creative and we’re proud to collaborate with them on it. 

Enhanced Financial Security and Trust

John Hancock’s PIUL product with access to Annexus’ cutting-edge indices is designed for today’s more discerning clients who demand both innovation and security from their financial products. John Hancock’s long-standing reputation for financial stability and integrity provides an added layer of appeal beyond the product features.

“We saw a significant opportunity with Annexus’s innovation like the PRISM Index — and of course, the new Booster Strategy — combined with John Hancock’s industry leading death benefit IUL,” said DeMinico. “Our reputation for protection and performance plus our behavior-based Vitality options aligned exceptionally well with both companies’ customer-first mindset.”

Access to John Hancock Vitality: Longer, Healthier, Better lives

Launched almost ten years ago, John Hancock Vitality is available with this new PIUL product. Vitality’s revolutionary approach to life insurance goes beyond traditional financial protection. With two versions of the John Hancock Vitality program to choose from, policyholders can receive benefits that range from discounted wearable devices to access to an early cancer detection test. 

“Since its inception, the John Hancock Vitality program has expanded significantly, integrating with various fitness tracking technologies and enhancing its reward system to better incentivize healthy living,” said DeMinico. “The program has evolved to offer more personalized healthy living goals and broader resources, providing policyholders with greater opportunities to improve their health and potentially reduce insurance premiums.”

By integrating and incentivizing healthy living, John Hancock Vitality provides policyholders with a comprehensive solution that promotes long-term health and financial well-being. Engaging with this innovative program not only helps policyholders improve their quality of life but also enhances the overall value of their life insurance policy.

Expanding Market Reach

One of the most exciting aspects of this collaboration is the expanded market reach. John Hancock’s extensive distribution channels will now be complemented by Annexus’s relationships. 

“John Hancock is among the top five brokerage manufacturers in the US, so we wanted to take a very intentional and strategic approach to distribution,” said DeMinico. “We did our due diligence to understand the market and the resources and support required to launch.”

This means brokers will have access to a broader range of products that can meet the diverse needs of their clients, from those seeking secure retirement options to those looking for growth opportunities with downside protection. This collaboration ensures that brokers can offer some of the most competitive and comprehensive products available in the market.

Driving Market Change and Consumer Responsiveness

For producers, the newest PIUL offering from John Hancock means staying ahead of the curve and offering clients solutions that continue to meet their evolving needs. In addition, producers can expand their market reach, and build deeper trust with clients. 

Learn more

To learn more about the exciting possibilities that this groundbreaking collaboration brings, visit www.annexus.com/INNlife.

 * The PRISM Booster Strategy is only available on the PRISM Booster One Year Indexed Account. To calculate the PRISM Booster return, any index return better than -4% is increased by 4% and then multiplied by the current participation rate (currently 115%). The guaranteed 0% floor on annual interest crediting protects the policy from downside market performance in any segment where the S&P Prism Index return is less than -4%.

** Source: Bloomberg and S&P Dow Jones Indices. Percentage of positive periods based on a historical analysis of the S&P PRISM Index for the period from 12/31/90 to 12/31/23. The S&P PRISMSM Index was established on 2/12/18. Information before this date is back-tested by applying the Index methodology, which was designed with the benefit of hindsight, to historical financial data. Past performance is not an indication or guarantee of future performance. Please see the performance disclosure at https://us.spindices.com/regulatory-affairs-disclaimers/ for more information regarding the limitations of back-testing. See https:// us.spindices.com/indices/strategy/sp-prism-index for additional information, including the Index methodolog, which includes the manner and timing for rebalancing.

The “S&P 500 Index” and “S&P PRISM Index” are products of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and have been licensed for use by John Hancock Life Insurance Company (U.S.A.). Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC, a division of S&P Global (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by John Hancock Life Insurance Company (U.S.A.). The Indexed Universal Life Insurance Policy Series (“the Policies”) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, “S&P Dow Jones Indices”). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the Policies or any member of the public regarding the advisability of investing in securities generally or in the Policies particularly or the ability of the S&P 500 Index or S&P PRISM Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices only relationship to John Hancock with respect to the S&P 500 Index and S&P PRISM Index is the licensing of the Indices and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500 Index or S&P PRISM Index are determined, composed and calculated by S&P Dow Jones Indices without regard to John Hancock or the Policies. S&P Dow Jones Indices has no obligation to take the needs of John Hancock or the owners of the Policies into consideration in determining, composing or calculating the S&P 500 Index or S&P PRISM Index. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the Policies or the timing of the issuance or sale of the Policies or in the determination or calculation of the equation by which the Policies are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration, marketing or trading of the Policies. There is no assurance that investment products based on the S&P 500 Index or S&P PRISM Index will accurately track index performance or provide positive investment returns. The S&P 500 Index is an index of 500 stocks that are generally representative of the performance of leading companies in leading industries within the U.S. You cannot invest directly in the S&P 500 Index. S&P Dow Jones Indices LLC is not an investment advisor or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.

NEITHER S&P DOW JONES INDICES NOR THIRD PARTY LICENSOR GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 INDEX OR S&P PRISM INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY JOHN HANCOCK, OWNERS OF THE POLICIES, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR S&P PRISM INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND JOHN HANCOCK, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

FOR AGENT USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC. 

Insurance policies and/or associated riders and features may not be available in all states. Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer.

Vitality is the provider of the John Hancock Vitality Program in connection with policies issued by John Hancock. Rewards and discounts are subject to change and are not guaranteed to remain the same for the life of the policy. 

Insurance products issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116.

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