Should we continue to invest in an AXA-Equitable simple IRA just b/c the employer contributes to plan?

My husband (36) now works for a small business that only offered AXA-equitable simple IRA as an investment option. Our only other investment is a rollover 401k that is now sitting with Fidelity. Currently, his boss is matching a percentage of the contributions to AXA, but I still feel like investing in this is a bad idea. Everything I read about variable annuties either sounds bad or doesn't make sense to me. Right now there is 60% in large cap, 20% in long term bonds, and 20% in int'l equity in this plan, and it's losing money. Should we continue to contribute since his employer is also contributing or should we be sending whatever savings we can over to the old 401k that's w/Fidelity?