Research Roundup

We bring you summaries of two papers on the federal debt (and why low interest rates don't justify more of it), an essay on why Biden's infrastructure spending plan shouldn't need budget offsets, a paper on how Social Security treats stay-at-home moms, and an analysis of how people respond to sudden wealth.
Anecdotal Evidence

Is a Life/Annuity Crisis Brewing?

Observers of the "Bermuda Triangle" phenomenon worry about the quantity and the quality of the assets supporting reinsured annuities in regulatory havens like Bermuda, Vermont, Arizona and elsewhere.

Aspida Financial to begin issuing annuities in 2022

With approximately $2.3 billion in assets under management as of March 31, 2021, Aspida plans to 'underwrite new insurance products, execute reinsurance transactions, and pursue opportunistic acquisitions.'

Honorable Mention

White House nominates Lisa Gomez to lead EBSA section of the DOL; Blackstone to manage almost $100 billion for AIG by 2027; DOJ nixes Aon-WTW mega-merger; American Equity issues new FIA with lifetime income, disability riders; Rising liabilities offset market gains at big corporate pensions: Milliman; SIMON offers its first VA, from Midland National.


July 22, 2021

How The Elephant in the Room Evolved

In a new research paper, "The Evolution from Life Insurance to Financial Engineering," economists Ralph Koijen of Chicago Booth School and Motohiro Yogo of Princeton continue to describe what is arguably the 'elephant in...
July 1, 2021

An Insider’s Take on the ‘Bermuda Triangle’ Strategy

Willis Re, a reinsurance broker, has had an uptick in calls from life insurers hoping to execute what RIJ calls 'The Bermuda Triangle' strategy, thus removing a millstone and reaping a capital windfall. Willis...
June 24, 2021

One-Stop Shops for Notes and Annuities

Luma Financial Technologies is now among the structured notes platforms that have chosen to add index-linked annuities to the products they support. It joins SIMON Markets and Halo in that space. In this last...