Removing ‘Lapse Risk’ from Variable Annuities

“Almost every major variable annuity writer has absorbed large write-downs on ‘policyholder behavior assumption updates,’” said a Munich Re executive. “So how do we take out that risk?”

The Alt-Asset Teams that Reinvent Annuity Companies

'Insurance Solutions' groups use private assets to boost the returns of life/annuity company investment portfolios. RIJ talks with Todd Fonner of Investcorp Insurance Solutions about this trend.

One Life Insurer’s Pivot to Private Assets

American Equity Investment Life’s ‘AEL 2.0’ strategy is designed to help it thrive even in a low yield environment. Allocating up to 40% of its money to ‘private assets’ is key to the fixed annuity specialist's plan.

NAIC Eyes ‘Bermuda Triangle’ Strategy

A document from the NAIC's Financial Stability Task Force reflects the concerns that the NAIC has heard from a variety of sources about the increased ownership of life insurers by private equity firms. (Image from NAIC document.)
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Vanguard captures 82.5% of 2015 fund flows through October

Investors returned to high-yield bonds in November after preferring government bonds for several months. “Investors might be trying to anticipate the potential December interest-rate raise,” wrote Morningstar analyst Alina Lamy.

Fidelity and Betterment: From Collaborators to Competitors

Fidelity Investments is testing 'Fidelity Go,' a robo-advice portal aimed at Millennials, and building a digital interface between its affiliated advisors and its clearing service to replace the interface that Betterment Institutional provided until recently.
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Third-quarter FIA sales up 13%

Total third quarter sales of indexed annuities were $13.8 billion, up 13% from the previous quarter, and up nearly 21% from the same period last year.

EY releases ‘ US life-annuity insurance outlook’

"After years of bolstering their balance sheets, life-annuity firms are in a strong position to invest in the innovations and technologies needed to fuel growth," said Doug French, principal, Financial Services and Insurance and Actuarial Services at Ernst & Young LLP.