How Annuity Risks Get Passed to the Bermuda Triangle

Leading private equity-linked fixed indexed annuity (FIA) issuers ceded the risk (the liability) of 95% of their 2021 sales to the balance sheets of affiliated or co-owned reinsurers located mainly in Bermuda.

Why ‘Offshoring’ Annuity Risk Is Wrong

Many for-profit US life/annuity companies do not use independent reinsurers. They use an affiliated or captive reinsurer in a jurisdiction like Bermuda, the Cayman Islands, Vermont, or Arizona. This makes their operations less transparent.
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AIG looks for new CEO

The AIG Companies are among the largest issuers of fixed and variable annuities, with $13.6 billion in total annuities sales through the first three-quarters of 2016.

As expected, Fed nudges target rate higher

'In view of realized and expected labor market conditions and inflation, the Committee decided to raise the target range for the federal funds rate to 0.75% to 1%,' said a March 15 Federal Reserve press release.

Honorable Mention

Brief or late-breaking items from Voya Financial, The Retirement Equity Laboratory at the New School, and Kehrer-Bielan consultants.