F-H-L-B Spells Cheap Cash for Big Annuity Issuers

By Kerry Pechter
The largest borrower from the Federal Home Loan Bank (FHLB) system in 2024 was Athene Annuity and Life, at more than $15 billion. For at least 16 other top annuity issuers, FHLB loans are a key source of "fungible," low-cost borrowed capital.

RIJ and ChatGPT Discuss ‘Funding Short’

By Kerry Pechter
Life insurers used to be known as champions of 'asset-liability matching,' or ALM. Today, many of them are doing the opposite by 'funding short.' Here's a transcript of RIJ's recent conversation with ChatGPT about the risks and rewards of funding short, and its role in today's annuity business.

Warring Watchdogs: NAIC and FIO

By Kerry Pechter
'The Federal Insurance Office conflicts with the states’ role as primary regulators, complicates their engagement with fellow insurance regulators globally, duplicates data collection from our industry,' said state insurance commissioners in asking Congress to eliminate the FIO.
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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.)
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Warring Watchdogs: NAIC and FIO

By Kerry Pechter
'The Federal Insurance Office conflicts with the states’ role as primary regulators, complicates their engagement with fellow insurance regulators globally, duplicates data collection from our industry,' said state insurance commissioners in asking Congress to eliminate the FIO.

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.