Luanna Teo, Vice President of Brand Development at Knighthead Annuity & Life Assurance Company, presented a compelling case for the role of fixed-rate annuities in supporting defined client outcomes at the Hubbis Wealth Planning & Structuring Forum - Singapore 2026. Her presentation focused on the evolving fixed income landscape and the need for financial advisors to shift their perspective from product categories to client objectives.
Teo argued that annuities are not a replacement for structured products or traditional fixed income instruments, but rather a complementary tool for clients seeking defined outcomes. The core message was that many clients seeking fixed income are actually seeking certainty, especially in a market characterized by inflation, rapid rate changes, geopolitical tensions, and AI-related valuation shifts.
The Changing Fixed Income Environment
Teo highlighted the limitations of traditional fixed income tools like bonds, bond funds, ETFs, ladders, and deposits. These tools have been exposed to volatility, reinvestment risk, scale issues, and flexibility constraints over the past five years. This shift in conditions underscores the need for advisors to prioritize client outcomes over product labels.
Outcomes Over Product Labels
Instead of asking, "What fixed income product should you recommend?" advisors should focus on, "What outcome is my client trying to achieve?" This shift in perspective is crucial because clients may not be specifically asking for bonds; they might be seeking dependable income, risk management, capital preservation, or retirement confidence.
The Rise of Annuities
Annuities have seen significant growth globally, particularly in the US, where retail annuity sales reached USD 461.3 billion in 2025. This trend is driven by demographics, an aging and asset-rich population, and the growing demand for guaranteed lifetime income. Knighthead has also experienced this momentum, recording USD 2 billion in sales over the past eight months, with strong performance in China, Japan, and Taiwan.
Knighthead's Annuity Solutions
Knighthead offers three annuity product types to address different client needs:
- Multi-Year Guaranteed Annuities (MYGAs): Provide a fixed guaranteed rate over a selected term, typically three to ten years.
- Fixed-Index Annuities: Allow clients to participate in equity indices while protecting principal against market downturns.
- Single Premium Immediate Annuities: Designed for retirement income planning, offering guaranteed income payments over a defined period or for life.
Key Features and Benefits
- Principal Protection: Knighthead's annuities are designed to provide guaranteed returns or income streams, depending on the product structure.
- Flexibility: Selected products include features like penalty-free withdrawals, death benefits, and beneficiary nomination, including for estate planning.
- Guaranteed Illustrations: The figures shown in policy examples are guaranteed, not projections.
- Financial Strength: Knighthead's segregated master trust structure, independent custody, and audit arrangements, along with its AM Best A-minus rating and KBRA A rating, ensure financial stability.
Rethinking the Fixed Income Conversation
Teo emphasized that the fixed income conversation should be centered around client outcomes, not just product categories. Annuities, with their focus on certainty, dependability, and guaranteed returns, offer a valuable addition to the advisor's toolkit. While they are not a one-size-fits-all solution, they can be relevant when a client's priority is a defined outcome rather than market exposure.
In conclusion, Luanna Teo's presentation highlights the importance of shifting the fixed income conversation from product labels to client objectives. Annuities, with their focus on certainty and guaranteed returns, offer a valuable tool for advisors to support defined client outcomes in an evolving market landscape.
