Presentation - Society of Actuaries in Ireland

More documents

Recommendations

Info

Variable Annuities Working Party• Presented paper to Faculty and Institute in March 2008• Working Party members• Colin Ledlie• Dermot Corry• Gary Finkelstein• Alan Ritchie• Ken Su• Colin Wilson• Colin Ledlie, Dermot and Gary will present here today
Introduction (Section 1)• Variable Annuity• Can be a confusing term• Originated in the US• We defined it as “any unit-linked or managed fund vehicle which offersoptional guarantee benefits as a choice for the customer”• Similar products available for many years – e.g. MaturityGuarantees Working Party in 1980• Fagan proposed a form of hedging for these types of guarantees in1977 but the 1980 Working Party took the view that there would bepractical disadvantages to this method• Advances in hedging techniques have been the key enabler inrecent years
Page 1: Variable AnnuitiesSociety of Actuar
Page 5 and 6: Definitions (Section 2)• GMDB - G
Page 7 and 8: US Variable Annuity Sales ($bn)Sour
Page 9 and 10: European and Asian Developments•
Page 11 and 12: Customer Outcomes (Section 6)• St
Page 13 and 14: Simulation 81 - Fund Value and Guar
Page 15 and 16: Probability Distribution - Income f
Page 17 and 18: Key Market Risks (Section 9)• Equ
Page 19 and 20: Pricing (Section 7)• Key elements
Page 21 and 22: Price to the customer• Range of f
Page 23 and 24: Hedging Techniques• Dynamic Hedgi
Page 25 and 26: Impact of Hedging - Examples• We
Page 27 and 28: Projection over time - Unhedged
Page 29 and 30: Measures of Economic Capital at Ris
Page 31 and 32: Solvency Margin• Products carry i
Page 33 and 34: Market ConditionsFTSE 10010 Year Eq
Page 35: Discussion Topics (2)• Will hedgi

Presentation - Society of Actuaries in Ireland

Create successful ePaper yourself

Delete template?

Save as template?