Hedge Cost Update for FIA and RILA – April 2...
Hedge Cost Update for FIA and RILA products – 11-April 2024 FIA – 1 Year Here, we show the latest estimates of hedge costs of popular FIA designs. The hedge costs were obtained using market data of Thursday, April...
How to build a smart beta index
This article is targeted towards actuaries and risk managers working at insurance companies. This article must not be construed as investment advice or product recommendation. The recipe for building smart beta index is quite straightforward. Here it is: Step 1:...
What makes a smart beta index great?
This article is targeted towards actuaries and risk managers working at insurance companies. This article must not be construed by consumers as investment advice or product recommendation. Smart Beta As the name suggests, the beta needs to be smart (not...
Hello 2024
While we avoid making predictions for the future, some changes are highly anticipated. With these notes, we look to help our clients navigate the upcoming short-term and long-term changes effectively. AI and the longevity problem Extending human lifespan, as a...
Inflation Protected Annuities
Summary In this analysis, we attempt to create an inflation-protected annuity by adding an increasing annuity to a level annuity. Increasing annuity’s annual benefit increases as {k, 2k, 3k, …} and so on. Final annual benefit amounts are {b+k, b+2k,...
Fixed Indexed Annuity : Insurers rely on asset ret...
Summary Our base case scenario is that of high nominal rate (5 YR Corporate AA yield 4%), average asset income (5.75%) and single digit equity returns (7-9%). Our analysis suggests excellent Fixed Annuity and Fixed Indexed Annuity returns for both...