Corporate Roundup: Corebridge Launches Annuity Feature, PGIM Brings in Leader
This week in our corporate roundup, Corebridge launches a new annuity option, Alerus acquires HMN Financial, Financial Finesse wins an artificial intelligence award, and PGIM and Prime Capital Financial bring in new leaders.
Corebridge Launches Annuity Feature
Corebridge Financial announced the launch of its Corebridge MarketLock Annuity, a registered index-linked annuity (RILA) issued by its subsidiary American General Life Insurance Company.
“We recognize how essential it is for financial professionals to have a single trusted annuity provider that can help them meet the diverse retirement needs of all their clients. With MarketLock, Corebridge is expanding on what is already one of the broadest and most comprehensive annuity platforms in the industry,” said Bryan Pinsky, president of Individual Retirement at Corebridge Financial. “As more Gen Xers and Millennials start planning for retirement, annuities and especially RILAs have become increasingly important in diversifying investment portfolios and helping to deliver growth potential with some downside protection.”
Corebridge MarketLock Annuity has 20 different strategy account options that include the exclusive Lock Strategy, as well as crediting methods such as Cap (offers earnings potential up to a maximum percentage), Trigger (can guarantee a preset rate of return when index performance is 0% or higher) and Dual Direction (opportunity to generate positive returns in both up and down markets).
Corebridge says that with each strategy account option, MarketLock offers downside protection through a buffer that can help protect against potential loss up to a specified percentage. As an example, if the buffer is 10% and the index declines by 10% or less, then no losses are experienced. If the index drops by more than 10%, the buffer protects against the first 10% of that decline and losses are limited to only the amount that exceeds the buffer rate.
PGIM Brings in Portfolio Management Co-Head
PGIM Multi-Asset Solutions (PMA) has appointed Mao Dong as co-head of Portfolio Management.
Dong joins PGIM from Goldman Sachs Asset Management (GSAM), where he spent over 14 years, most recently as co-head of OCIO Portfolio Management and head of Portfolio Construction and Manager Research.
At GSAM he led a team of portfolio managers in overseeing strategic and dynamic asset allocation, manager selection, portfolio implementation and risk management for OCIO portfolios globally. Dong also served as senior portfolio manager for several of GSAM’s multi-asset class funds across global equity, fixed income and public real assets.
At PMA, Dong will be responsible for designing and managing multi-asset portfolios for institutional clients, including developing and applying relative value views across public and private investment strategies.
PMA CEO Phil Waldeck comments: “Our insurance, reinsurance and pension fund clients increasingly require complex multi-asset class portfolio construction and management. Mao’s appointment is another important milestone in building PGIM’s multi-asset solutions business to meet the needs of those clients.”
The appointment comes amid a continued build-out of PMA, which has grown AUM to $17 billion since it was formed in 2022.1 Among recent hires was Eoin Elliffe as chief risk officer in June.
Elliffe’s role is to build and enhance PMA’s risk framework and support the development of investment and risk management solutions for clients. Waldeck continues: “Eoin’s expertise will help us develop our capabilities and strengthen our value proposition for each of our market segments: insurance and reinsurance companies, and pension funds.”
Elliffe joined PMA from Midwest Holding, where he served as chief risk officer. His career spans asset liability management, trading and risk management roles across insurance, reinsurance providers, and investment management firms.
Dong shares portfolio management responsibilities with co-head Jonathan Holt and reports to PMA chief investment officer Alfred Lerman. Holt joined PMA in 2022 from Prudential Financial, where he served as head portfolio manager for Prudential’s Retirement and Group Insurance portfolios.
Waldeck concludes: “With these appointments we have created a team with a deep understanding of the solutions which insurers and pension funds require. I look forward to seeing them contribute to our continued success.”
PMA was recently appointed as the asset manager for the assets supporting an $11 billion reinsurance transaction by Prudential Financial to Wilton Re. This is the second reinsurance mandate for the affiliate following its appointment as asset manager to Prismic Life Re, a Bermuda-based life and annuity reinsurance company announced by Prudential Financial and Warburg Pincus in September 2023.
Alerus Acquires HMN Financial
Alerus Financial Corporation and its wholly owned subsidiary, Alerus Financial, National Association announced today they have completed the previously announced acquisition of HMN Financial, Inc. and its wholly owned subsidiary, Home Federal Savings Bank.
Under the terms of the transaction, HMN Financial, Inc. merged with and into Alerus Financial Corporation, and Home Federal Savings Bank merged with and into Alerus Financial, National Association. The all-stock transaction is valued at approximately $128.8 million as of closing.
Founded in 1934, Home Federal includes 12 branches in Minnesota and one branch in each of Iowa and Wisconsin. As of June 30, 2024, HMNF had on a consolidated basis, $1.1 billion in total assets, which included approximately $876.6 million in loans and $983.2 million in total deposits.
With the addition of Home Federal, Alerus now has approximately $5.5 billion in total assets, $3.8 billion in total loans, $4.3 billion in total deposits, and assets under administration and management of approximately $43.6 billion, with 29 locations across the Midwest, as well as Arizona.
Alerus expects to transition Home Federal client accounts to Alerus systems in the fourth quarter of 2024. Until this transition occurs, Home Federal clients will continue to be served through Home Federal’s website, mobile app, and branches. Additional information will be provided to clients in advance of conversion to ensure a seamless transition to Alerus systems.
HMN Financial, Inc. board member Jeffrey Bolton will join Alerus Financial Corporation’s board of directors in connection with closing.
Raymond James & Associates, Inc. served as financial advisor and Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel to Alerus on the transaction. D.A. Davidson & Co. served as financial advisor and Ballard Spahr LLP served as legal counsel to HMN Financial, Inc.
Financial Finesse Wins AI Personalization Award
Financial Finesse has recently been announced as a winner in the 2024 AI Awards program in the “Best Use of AI-driven Personalization” category and was named a bronze winner by the 2024 Merit Awards for Technology in the FinTech category.
Both awards recognized Financial Finesse’s AI-powered virtual financial coach “Aimee” (Artificial Intelligence Motivating Employees Everywhere) as a global leader in AI innovation.
Aimee reaches over 2.5 million employees across 20,000+ companies globally and surpassed 8.3 million interactions in 2023.
“We are honored and delighted to be recognized by both the AI Awards and Merit Awards for our innovations in AI in FinTech,” said Liz Davidson, founder and CEO of Financial Finesse. “Innovation is in our DNA. We are the first company to provide financial coaching as an employee benefit at scale and are responsible for many major innovations that have shaped our industry. These awards are a testament to that and to our exceptional team, whose hard work and commitment drive our industry forward and help change more financial lives every year.”
The AI Awards are a new awards program launched earlier this year by cloud computing awards body The Cloud Awards. The awards program recognizes and rewards excellence and innovation in the use or development of cloud artificial intelligence technologies, and machine learning.
“Financial Finesse offers a truly useful product for employees, delivering excellent personalization with bespoke advice tailored to each individual. Their approach to AI-powered financial coaching is transformative, helping employees reduce financial stress, build resilience, and make real progress toward their goals,” said AI Awards Judge, Dave Newton. “The A.I. Awards Judging Panel thought this was a standout example of how AI can revolutionize financial wellness in the workplace while driving ROI for employers.”
Created in 2022, the Merit Awards are designed to recognize the efforts put forth by global industries and the markets they serve. The awards program acknowledges companies that have contributed to the continued growth of the market worldwide. The annual Merit Awards is judged by industry executives, members of the media, and consultants.
Prime Capital Financial Welcomes Raleigh-Based Advisor
Prime Capital Financial announced the addition of Josh Hederick, CMFC.
Based in Raleigh, North Carolina, Hederick will help expand Prime Capital Financial’s presence in the region, bringing nearly two decades of industry experience.
Most recently, Hederick served as director of Financial Planning at Edelman Financial Engines, where he has spent the past eight years providing financial planning solutions to clients in the Raleigh and Greensboro areas. Prior to that, Hederick was managing partner, owner, and advisor at The Mutual Fund Store, where he spent over 10 years managing operations and advising clients. His early career includes roles as an investment advisor at State Farm Financial Services, where he was one of the first participants in the company’s pilot financial services program, and as a senior financial consultant at Merrill Lynch.
“Josh’s client-first approach and commitment to delivering exceptional financial outcomes align perfectly with our values at Prime Capital Financial,” said Glenn Spencer, chief executive officer at Prime Capital Financial. “His deep understanding of the complexities clients face in managing their wealth, coupled with his desire to alleviate the stress of financial planning, will be invaluable.”
Hederick holds the chartered mutual fund counselor (CMFC) designation and a bachelor’s degree in finance from James Madison University.
“I’m thrilled to join a firm that shares my dedication to providing comprehensive, client-centric financial planning,” said Hederick. “Prime Capital Financial’s collaborative approach and robust resources will allow me to better serve my clients and help them reach their goals with greater peace of mind.”
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