‘Rated Note Feeders’ Attract NAIC Attention

By Kerry Pechter
Holding a rated note (instead of an unrated private equity fund) can reduce the extra capital that life insurers need to post when buying risky, unrated private assets. Insurance regulators have taken interest in the strategy but are responding at a crawl. (Image: 'Sleeping Guards,' Piero della Francesca.)

Open Letter to NAIC’s Life Actuarial Task Force

By Peter Gould
'You encourage and abet the whack-a-mole behavior of insurers that regulators have tolerated in the industry—to the detriment of consumers... I don't want to be left holding the (empty) bag, like the 92,000 PHL Variable Life policy owners,' writes Gould, a variable annuity contract owner.

Open Letters Call Out Tepid Insurance Regulation

By Kerry Pechter
Retirement Income Journal shares the concerns expressed in these open letters to the National Association of Insurance Commissioners and thanks the authors for letting us publish them here. 
Anecdotal Evidence

The French Just Want to Enjoy Their Retraite

By Kerry Pechter
This winter I'm in Marseille, France, talking to the French about their retirement system and watching groups of them play a game called pétanque in the parks.

Open Letter to Scott O’Neal, Actuary, NAIC

By Larry Rybka
'In the 12 years since , insurance regulators have done little other than allow this situation to now mushroom,' writes Rybka, a prominent figure in annuities and insurance, in his open letter to the NAIC actuary. (See related open letter by Peter Gould.)

Honorable Mention

By Editorial Staff
In sales, deferred annuities finish 'up' year with a 'down' quarter: WinkIntel; AM Best upgrades Lincoln’s credit outlook; Axonic and Hexure collaborate on Waypoint MYGA; Invst launches pooled employer plan; Ratings of Nassau companies are upgraded.

To tax or not tax Social Security benefits

By Editorial Staff
President Donald Trump’s 2024 campaign trial-balloon statement 'reduces incentives to save and work while increasing federal debt,' the analysis by the Penn Wharton Budget Model found. 'Wages and GDP fall over time.'

COVER STORIES YOU MAY HAVE MISSED

February 2025

A Flood of ‘Flow Reinsurance’

By Kerry Pechter
Flow reinsurance involves the ongoing, immediate transfer of risks from a life insurer to a reinsurer as soon as annuities are issued. Life/annuity companies have used flow reinsurance for at least 15 years, but...
January 2025

Nut Case: Prudential and Brighthouse’s Bets on Pistachios

By Kerry Pechter
A California pistachio grower defaulted on $1 billion in loans from Prudential, Brighthouse Life, and U.S. Bank this year. Their legal efforts to seize the collateral offer a glimpse into the potential risks of...
December 2024

‘Reinsurance Sidecars’: A Capital Idea

By Kerry Pechter
Athene Annuity & Life sold the most fixed deferred annuities in the first three-quarters of 2024. Its parent, Athene Holdings, has attracted billions in just-in-time third-party capital through Bermuda 'reinsurance sidecars.' Coincidence? Not likely....