‘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

A Chat with the President of Prudential Annuities

By Editor Test
Bob O'Donnell talked to RIJ about sustaining VA guarantees in an uncertain rate environment, and about the public's ability to understand VA riders. MetLife, AXA Equitable, and Jackson National also comment here on limiting new contributions to older, richer contracts.

‘The Future of Lifetime Income’

By Editor Test
Symetra Life and Russell Investments have teamed up to build a low-cost variable annuity with a lifetime income feature that doesn't involve costly hedging, insurance charges or commissions.
News

Can layoffs shorten lifespans?

By Editor Test
Unemployment shocks at ages 57 to 61 have the biggest long-term effect on survival, while shocks at earlier (ages 55 to 56) or later (ages 62 to 65) ages have no significant long-term effect, economists at Wellesley College found.

Living benefit buyers live longer: Ruark

By Editor Test
Mortality levels among purchasers of guaranteed living benefits are lower than among variable annuity purchasers who did not buy a guaranteed living benefit, according to the 2012 Variable Annuity Mortality Study from Ruark Consulting.

Bullish sentiments follow central bank easing

By Editor Test
"While there is a debate about the effectiveness of QE measures in stimulating the economy, there is little doubt that they have provided a boost to equity markets," writes John Praveen of Prudential International Investments Advisors.