Best’s Special Report: Regulatory Uncertainty and Equity Market Volatility Lead to Shifting Trends in Individual Annuity Products
The Best’s Special Report, “Regulatory Uncertainty, Equity Market Volatility Lead to Shifting Trends in Individual Annuity Products,” states that the annuity industry has a growing need for products that deliver guaranteed income and new market segments to engage an aging population.
According to the report, annuities comprise a sizeable portion of the industry’s business production, with individual annuities fluctuating at around 30% of the industry’s net premium written (NPW) and 45% of reserves over the last 10 years (2007-2016). Driven in part by the emerging pension risk transfer market, group annuities have contributed an additional 19% in NPW and 11% in reserves. Individual annuities also have consistently contributed favorable pre-tax operating gains, accounting for 30%-45% of operating gains in each of the last eight years except for 2011.
Variable annuities (VA) remain the largest contributor to DPW, at 36.2%, but fluctuating growth rates have decreased their contribution since 2012. The top 10 individual
To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=264493.
Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170810005905/en/
Associate Director
Credit Rating Criteria – Research
and Analysis
[email protected]
or
Director
[email protected]
or
Manager, Public Relations
[email protected]
or
Director, Public Relations
[email protected]
Source:
Aetna Completes $1 Billion Bond Offering
At PGA Championship, Gov. Cooper says he’s focusing on jobs, not golf
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News