Variable Annuities are an extremely popular investment vehicle for many Americans. Variable annuities offer investors tax deferral, ease of investment fund transfers and guarantees to protect their income upon death or annuitization. There is a definite market demand for variable annuity products, and there is still a large section of investment dollars untapped by today's carriers.
- Broad expertise in secondary guarantee annuity options, to help you design and price new options or evaluate existing ones.
- Extensive use of stochastic and traditional modeling tools to quantify variable annuity risks and evaluate associated embedded options.
- Tail risk evaluation for all currently available options.
- Comprehensive and detailed services to help insurers understand and operate under new American capital and reserve requirements. (We have many years of experience with related Canadian requirements)
Variable annuities have become increasingly complicated for insurers to offer. The embedded options are difficult to quantify and require complex stochastic modeling to evaluate. Reserve and potential capital requirements make it difficult to project distributable earnings and manage capital. Sophisticated tools are required to develop and appropriately price variable annuities and the associated guarantees.
We have the tools to project cashflows using a variety of stochastic equity scenarios, benefit types and annuity designs. Our staff can help you develop risk tolerance and risk adjusted profit targets to ensure your annuity product meets your objectives.
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