‘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.)

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 it’s growing fast. (Photo: Gullfoss in Iceland.)

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 such concentrated loans.
Featured

Nominal SPIAs Beat Nominal DIAs—But Perhaps Not for Long

By Kerry Pechter
“DIAs may represent a more palatable hedge against longevity risk for retirees than traditional annuities, because they are cheaper and therefore provide more liquidity to retirees,” writes Morningstar's David Blanchett in a Journal of Financial Planning article.

‘Changing of the Guard’ Continues in VA Sales

By John McCarthy
MetLife is selling one-third of what it was two years ago. Prudential is selling half of what it did in the first two quarters of 2012. The biggest gainers since then include Transamerica, SunAmerica, and Lincoln. (This piece was written by Morningstar's annuity product manager.)
News

This is your brain on money

By Editorial Staff
Public television will turn its inquisitive light on the topic of behavioral finance next October 16.

Deloitte publishes annual DC benchmarking survey

By Editorial Staff
There continues to be limited interest in in-plan annuities, with 6% of plans offering this option in 2013, up from 4% in 2012. Ten percent of plan sponsors indicated they are looking into adding an accumulation annuity to their current plan.