Hints and tips:
...This is what happened to Executive Life, then the largest insurer in California, in the early 1990s: policyholders withdrew $4bn after the company announced losses from junk bond investments, and the company...
...Brookfield did implicit homage to the Sage of Omaha this week. The Canadian alternatives giant agreed to buy annuities group American Equity Investment Life for $4.3bn....
...It also unveiled a deal with insurance consolidator Resolution Life and affiliates of investment group Sixth Street to reinsure $35bn of liabilities relating to US annuities....
...Canada introduced a variable payment life annuity (VPLA) in its 2019 budget which has similar characteristics....
...Beijing plans to blacklist companies that use variable interest entities (VIEs), vehicles that have for years allowed Chinese tech groups to raise billions of dollars from foreign investors while also staying...
...However, the company said it had not seen an uptick in interest in annuities since the pandemic started....
...We won’t find all the answers,” said Mr Buberl. “Long-term variable annuities across several countries is a very complex nature of business....
...Mr Kligerman pointed out variable annuity writers such as Equitable, Brighthouse and Lincoln all trade at under five times forecast earnings, much lower than other types of life insurance companies....
...We now have some earnings reports for US life insurance companies for the first quarter of the year, which include some “normal” weeks....
...The company is focused on one type of product, variable annuities, and investors fear it could suffer badly in a US economic downturn....
...Jackson’s exposure to the US stock market through its variable annuities products makes investors keener still to steer clear in times of trouble. Of course, a sale of Jackson would be nice....
...The US division, which specialises in a particularly warty savings product called the variable annuity, is a drag on the group valuation....
...Equitable, one of the oldest life insurance companies in the world, caused a scandal in 2000 when hundreds of thousands of policyholders lost money because the company had made over-generous financial promises...
...For life companies ultimately the default rate on credit is the critical variable as both liabilities and asset are marked to market under Solvency 2....
...Some in the industry argue that selling life insurance and pensions online will help to get rid of some of the mis-selling problems — from endowment mortgages in the UK to annuities in the US — that have...
...impacting variable rents....
...The uncertain or variable outcome is the price you pay for the possibility, not the certainty, of better outcomes....
...Pru has said that Jackson will require additional investment (presumably to acquire bolt-ons to diversify the business away from variable annuities) and that third parties are best placed to provide that...
...Axa Equitable is one of the largest sellers of variable annuities....
...US life insurers suffered losses on variable annuities in the financial crisis....
...The capital consumptive US insurance business, which specialises in variable annuities, springs to mind....
...When Cornell Capital, a company started by a former Goldman Sachs executive Henry Cornell, bought the life and annuities business of The Hartford in December, in partnership with Bob Diamond’s Atlas Merchant...
...Market strategists and industry analysts say a post-crisis change to the way US life insurers manage billions of customer dollars invested in variable annuities (VAs), which are popular tax-advantaged retirement...
...The second-largest US life insurer by assets set aside more than was necessary to support guarantees it had offered on variable annuities, a retirement savings product....
...Several companies have closed or scaled back their variable annuities operations after running into difficulties during the financial crisis....
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